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Author's profile photo Markus Florian Oertelt

Discrete Industries in SAP S/4HANA Cloud, Public Edition 2302

The first Engineer-to-Order end-to-end scenario Engineer Products and Systems – Project with Production (‏6GD‏) in SAP S/4HANA Cloud, public edition 2302 is available now:

You may watch the whole end-to-end demo scenario step by step below:

Project Setup

In this activity, you may create a project with revenue with the project definition and WBS element using the Project Control – Enterprise Projects (F3215) app. Projects with Revenue allow revenue G/L journal entries postings after release.

Settlement Rule

The profitability segment characteristics can be maintained in the settlement rule, however running the settlement is not required anymore due to the direct attribution of cost postings.

Project Planning

You may create WBS elements for your project.

Describe Your Project

You may describe your project details; for example, such as milestones and other important information.

Preliminary Procurement

You may define demand for material in project stock which helps in planning, triggering, and monitoring preliminary procurement of long lead stock materials for enterprise projects. This process step results in the creation of Planned Independent Requirements (PIR). A demand represents a certain need of a WBS element at a certain time and a certain location.

Manage Material Coverage

You may display the stock and requirements situation for the raw material in the stock and requirements list after the requirements planning performed.

Convert Purchase Requisition into Purchase Order

You may perform this activity when you want to convert assigned Purchase Requisitions to Purchase Orders.

Post Goods Receipt

You may post the receipt of goods with reference to an existing purchase order.

Create Supplier Invoice

You may perform the invoice verification.

Create Sales Order with Project Stock and WBS Element Assignment

You may create a sales order with a sales order item. The sales order item is assigned to a WBS element.

Down Payment Processing

You may use down payment request or billing plans with your sales order. This demo shows an example of a down payment request.

Post Down Payment

You may post the down payment received from your customer.

Material Requirements Planning – Planning Strategy E2

You may produce for a WBS element based on the project requirement. You use the project structure for collecting costs and to drive manufacturing planning based on the associated sales order Items.

If you want to perform an availability check with replenishment lead times, then you may define in the MRP 3 screen and Sales: General/Plant screen in the availability check fields the option SP (Stock and Plan.Rec.).

Material Requirements Planning for Sales Order

You may start the MRP run for a sales order.

Procurement Process for Raw Material

Monitor Material Requirements

This process step shows you how to display the stock and requirements situation for a raw product in the stock and requirements list after the requirements planning is performed (in case the Bill of Material explosion during the MRP run has generated dependent requirements for the demand-driven planned components). If inventory does not cover the requirements, planned orders are created for in-house-produced materials or purchase requisitions for externally procured materials.

Purchase Order, Post Goods Receipt and Supplier Invoicing for Raw Material

You will watch that the Purchase Requisition has been converted to a Purchase Order for our raw material. Then the goods receipt happened and the supplier invoice was created.

Subcontracting with Plant Stock Components

You may display the stock and requirements situation for a semifinished product in the stock and requirements list after the requirements planning has been performed. Then you may use the Subcontracting Cockpit to create a delivery for your customer. Further in the process you may do the picking process and then post goods issue for the delivery. The receiving company is then doing the goods receipt for a purchase order and creating the supplier invoice.

Production of Finished Goods

You may create production order without external processing operation.

In the further process you may do the picking of components (not shown in my demo).

You may do the order operation confirmations (the confirmation documents the processing status of orders, operations, sub operations, and individual capacities). You may use this instrument for controlling orders. This scope item uses time event confirmation. After that you may post the goods receipt for the production order.

You may also create production orders for spare parts bundle.

Create Outbound Delivery

As a prerequisite the goods receipt was posted to the individual customer’s stock. Then you may create a delivery and pick deliveries. As a final step you may do the goods issue for the delivery. You may also bill a customer (I don’t show this step anymore in the below demo).

Time Recording

You may enter the time recording for WBS Element using Manage My Timesheet (F1823) application. You can maintain the cost rate for the combination of activity type, company code and cost center using the app Manage Cost Rates – Services (F3161).

Monitor Projects


In addition, my colleague Gerhard Welker published Manufacturing in SAP S/4HANA Cloud, Public Edition 2302 | SAP Blogs.

If you want to know What’s New in Finance for Engineer Products and Systems (based on Engineer-to-order), please read my colleague’s Shuge Guo blog post!

Also, my colleague Janet Dorothy Salmon has written this interesting blog post about Project Profitability for Engineering Products and Systems (Engineer-to-Order).

For more information on SAP S/4HANA Cloud, Public Edition:

  • Highlights of the SAP S/4HANA Cloud, Public Edition 2302 Release blog post here
  • SAP S/4HANA Cloud, public edition release info here
  • Latest SAP S/4HANA Cloud, public edition release blog posts here and previous release highlights here
  • Product videos on our SAP S/4HANA Cloud, Public Edition and SAP S/4HANA YouTube playlist
  • SAP S/4HANA PSCC Digital Enablement Wheel here
  • Early Release Webinar Series here
  • Inside SAP S/4HANA Podcast here
  • openSAP Microlearnings for SAP S/4HANA here
  • Best practices for SAP S/4HANA Cloud, public edition here
  • SAP S/4HANA Cloud, Public Edition Community: here
  • Feature Scope Description here
  • What’s New here
  • Help Portal Product Page here

Follow us via @SAP and #S4HANA, or myself via LinkedIn.

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      Author's profile photo Shuge Guo
      Shuge Guo

      Great blog with so many useful demos!!

      Author's profile photo Markus Florian Oertelt
      Markus Florian Oertelt
      Blog Post Author

      Thanks a lot Shuge!

      Author's profile photo Pascal Martin
      Pascal Martin

      Hi Markus

      Amazing blog, all the steps are clearly highlighted through short and useful demos !

      Great job, thank you !



      Author's profile photo Markus Florian Oertelt
      Markus Florian Oertelt
      Blog Post Author

      Dear Pascal,

      thanks so much for your feedback and I am happy that you're happy with the results!

      All the best! Markus

      Author's profile photo lakshmi nese
      lakshmi nese


      Thanks to the blog on the ETO Project process using 6GD scope item. It is very informative. 

      One question though. In ETO process, because of its nature, many times we can not add/include all the deliverable like assemblies/sub-assemblies/components to the Sales order to deliver them using delivery process. Instead we create a Sales order with only single line item on it (Text product) with a Billing Plan to invoice the customer. And to deliver the Project items on the project (assemblies/sub-assemblies/components) we create project demand from Project Planning App, run MRP and produce products to deliver, (All the demand items are linked to Project WBS elements). In this scenario, can you please guide us how to deliver the Project stock items to the customer which are not linked to Sales Order directly? When products are produced using the project demand App, the all the finished goods are linked to Project WBS elements and we can not create delivery and pick the stock since that Project stock does not show up during delivery picking.

      Please let me know.

      Lakshmi Nese

      Author's profile photo Markus Florian Oertelt
      Markus Florian Oertelt
      Blog Post Author

      Hi Lakshmi,


      thanks for your feedback and thanks for your question.

      Your scenario is a valid one and we are currently investigating how we will integrate Project based delivery capabilities into the scope item 6GD end-to-end scenario.

      Unfortunately, there is no external roadmap as of yet. Once we will publish an external roadmap; I will reach out to you.

      All the best!