SAP S/4HANA 1809 Feature Scope Description

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1 PUBLIC Document Version: 1.2 – 2019-01-21 SAP S/4HANA 1809 - Feature Scope Description company. All rights reserved. affiliate THE BEST RUN 2019 SAP SE or an SAP ©

2 Content 1 - Feature Scope Description ... 8 SAP S/4HANA SAP S/4HANA Enterprise Management 10 2 ... SAP S/4HANA ... 10 Functions for Implementing Solutions 2.1 2.2 Data Protection ... 10 SAP S/4HANA 2.3 ... 12 Industry coverage in Enterprise Management Asset Management ... 13 2.4 Maintenance Operations ... 13 Finance ... 2.5 22 Financial Planning and Analysis 22 ... ... Accounting and Financial Close 26 Treasury Management ... 38 Financial Operations ... 39 ... 45 Governance, Risk, and Compliance for Finance 2.6 Human Resources 51 ... ... 51 Core HR and Time Recording ... 52 Timesheet Integration with External HR System ... 53 2.7 Manufacturing ... 54 Manufacturing Engineering and Process Planning ... 54 ... 56 Production Planning 58 Manufacturing Execution for Discrete Industries ... Manufacturing Execution for Process Industries ... 70 Outsourced Manufacturing ... 73 ... 78 Quality Management ... Maintenance, Repair, and Overhaul 80 ... 83 Maintenance Operations 2.8 ... 92 R&D / Engineering Enterprise Portfolio and Project Management ... 92 Product Development Foundation ... 98 2.9 Sales 106 ... ... 106 Order and Contract Management 2.10 ... 117 Service Service Agreement Management ... 117 2.11 Sourcing and Procurement ... 119 Supplier Management ... 119 Generic Features Available in Sourcing and Procurement ... 121 SAP S/4HANA 1809 - Feature Scope Description Content 2 PUBLIC

3 Sourcing ... 121 ... 124 Purchase Contract Management 125 ... Operational Procurement ... 132 Procurement Analytics Invoice Management ... 135 Supply Chain ... 138 2.12 138 Basic Inventory, Warehousing, and Transportation ... 155 Logistics ... 156 Order Promising ... 2.13 Analytics Technology 157 ... Process Performance Monitoring ... 157 ... Query Designer 158 Analysis Path Framework 158 ... ... 159 Predictive Models 160 Analytics ... 2.14 Enterprise Technology 161 ... ABAP Platform ... 161 ... SAP S/4HANA Java 181 Enterprise Information Management 186 ... ... 186 Process Management and Integration ... 187 Business Event Handling Enterprise Event Enablement ... 188 Situation Handling ... 188 Document Builder ... 189 ... 190 SAP S/4HANA Output Control Features in SAP S/4HANA Enterprise Management 2.15 191 Country-Specific ... Americas ... 191 Europe 200 ... Africa/Middle East 222 ... ... 227 Asia-Pacific SAP S/4HANA LoB Products ... 237 3 3.1 Asset Management ... 237 Maintenance Operations ... 237 ... Resource Scheduling 240 Geographical Enablement Framework for Asset Management ... 242 Environment, Health and Safety 242 ... 3.2 Database and Data Management ... 251 Enterprise Information Management ... 251 3.3 ... 254 Finance Financial Planning and Analysis ... 254 Accounting and Financial Close ... 255 SAP S/4HANA 1809 - Feature Scope Description Content PUBLIC 3

4 Treasury Management ... 264 ... 279 Commodity Risk Management 283 ... Financial Operations ... 286 Contract Accounting Real Estate Management ... 286 Manufacturing ... 289 3.4 Production Planning ... 289 ... Manufacturing for Production Engineering and Operations 291 ... R&D / Engineering 3.5 299 Enterprise Portfolio and Project Management ... 299 ... 313 Product Lifecycle Management Product Compliance ... 327 Sales ... 3.6 331 331 ... Commodity Sales Incentive and Commission Management 337 ... Subscription Billing and Revenue Management ... 338 Sourcing and Procurement 3.7 344 ... Central Procurement 344 ... ... 347 Guided Buying Integration with Central Procurement ... 348 Operational Procurement Invoice Management ... 355 3.8 Supply Chain ... 356 Advanced Inventory, Warehousing, and Transportation ... 356 ... 368 Advanced Order Promising ... 370 3.9 Enterprise Technology Digital Assistance 370 ... Geographical Enablement Framework ... 370 ... 371 SAP S/4HANA for Legal Content SAP S/4HANA 4 specific industries ... 379 LoB Products for 4.1 ... 379 Agriculture Agricultural Contract Management ... 379 4.2 Automotive ... 385 Vehicle processes for Wholesale and Retail ... 385 Banking 386 4.3 ... ... 386 SAP Deposits Management for Banking, SAP S/4HANA Edition ... 387 SAP Loans Management for Banking, SAP S/4HANA Edition SAP Collateral Management for Banking, SAP S/4HANA Edition ... 388 SAP Reserve for Bad Debts for SAP S/4HANA ... 389 4.4 ... 391 Insurance Policy Management for Insurance ... 391 Insurance Product Engine ... 392 SAP S/4HANA 1809 - Feature Scope Description Content 4 PUBLIC

5 Claims Management ... 392 ... 393 Insurance Billing and Payments 394 ... Compensation Operations ... 395 Statutory Reporting for Insurance 4.5 Oil & Gas ... 396 Production and Revenue Accounting ... 396 399 Inventory and Movement Management ... 414 Bulk Supply Chain Operations ... 418 Upstream Operations Management ... 4.6 Professional Services 422 ... Projects and Engagement ... 422 Resource Management 422 ... Service Management 423 ... Public Sector ... 4.7 424 424 ... Finance Retail and Fashion ... 435 4.8 ... 435 Retail and Fashion Foundation ... Retail for Merchandise Management 443 ... 449 Fashion and Vertical Business 4.9 ... 452 Utilities Finance ... 452 Metering ... 455 Sales ... 458 SAP Waste & Recycling ... 4.10 462 462 ... Waste Disposal Management Finance 468 ... Bill to Cash ... 468 ... Waste Disposal Facility Management 469 5 Compatibility Packs ... 473 SAP S/4HANA 5.1 ... 474 Asset Management Maintenance Operations ... 474 5.2 Finance ... 475 Accounting and Financial Close ... 475 ... Travel Management 483 Receivables Management ... 484 5.3 ... 485 Human Resources Core HR and Payroll ... 485 Talent Management ... 497 Time and Attendance Management 501 ... 5.4 Manufacturing ... 505 Quality Management ... 505 SAP S/4HANA 1809 - Feature Scope Description Content PUBLIC 5

6 Production Planning ... 506 ... 508 Manufacturing Execution for Discrete Industries 513 Manufacturing Execution for Process Industries ... R&D / Engineering ... 518 5.5 Enterprise Portfolio and Project Management ... 518 Product Safety and Stewardship ... 521 ... 528 Product Development for Discrete Industries 5.6 Sales ... 528 ... SD Analytics Based on Logistics Information System 528 SD Rebate Processing 529 ... ... Product Catalog 530 Empties Management ... 531 Service ... 532 5.7 ... 532 Service Master Data Management Service Management ... 535 Service Parts Management ... 540 Service Agreement Management ... 541 5.8 Sourcing and Procurement 542 ... ... Subsequent Settlement 542 5.9 Supply Chain ... 543 Logistics and Order Fulfillment Efficient 543 ... 5.10 Industries ... 547 Defense and Security ... 547 Engineering, Construction, & Operations ... 553 Higher Education and Research 554 ... Mill Products ... 558 Oil & Gas ... 559 Public Sector ... 565 Retail 565 ... 6 Integration ... 569 SAP S/4HANA 1809 - Feature Scope Description Content PUBLIC 6

7 Document History Caution  Before you start the implementation, make sure you have the latest version of this document. You can find the latest version at the following location: https://help.sap.com/s4hana_op_1809 The following table provides an overview of the most important document changes. Date Description Version 2018-09-21 Initial Version 1.0 1.1 2018-10-29 Minor corrections 1.2 2019-01-21 Minor corrections SAP S/4HANA 1809 - Feature Scope Description Document History PUBLIC 7

8 1 SAP S/4HANA - Feature Scope Description With SAP S/4HANA (SAP Business Suite 4 SAP HANA), SAP is providing a new product and a next generation of business applications – simple enterprise software for big data and designed to help you run simple in the digital economy. The family is fully built on the in-memory platform SAP HANA. Using the advanced potential of SAP S/4HANA is designed for your digital business and provides an instant insight by using a SAP HANA, SAP S/4HANA single source of truth, real-time processes, dynamic planning and analysis. With SAP Fiori user experience and less complex data model it is designed to run simple, and in parallel reduces the data footprint of your company. SAP S/4HANA is also already connected to business networks and company-internal collaboration networks (for example, SAP Jam Collaboration) and prepared for the Internet of things. With all these aspects, SAP is protecting your investments by facilitating next generation business applications. is composed of: SAP S/4HANA SAP S/4HANA ● Enterprise Management Enterprise Management is designed for enterprises across industries that need a deep and SAP S/4HANA flexibility in customization. broad level of functionality combined with a high degree of SAP S/4HANA LoB Products ● SAP S/4HANA SAP S/4HANA Enterprise Management to provide LoB Products enhance core functions of additional business benefit for your line of business (LoB). Please note that you might need a separate license. ● SAP S/4HANA LoB Products for specific industries SAP S/4HANA LoB Products for industries enhance core functions of SAP S/4HANA Enterprise specific specific benefit for your line of business (LoB). Please note that Management to provide industry business you might need a separate license. SAP S/4HANA ● Compatibility Packs Please note that the specific usage rights for SAP S/4HANA Compatibility Packs are set forth in the Software Use Rights Document. Alternatively, the same offering is available as SAP S/4HANA Cloud, single tenant edition. For further information on Cloud, single tenant edition, please contact your SAP Account Executive. SAP S/4HANA About this document This feature scope description shows you which features are provided with SAP S/4HANA . In addition, this feature scope description also defines the product documentation for SAP S/4HANA . Product documentation The following product documentation is available for SAP S/4HANA : SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA - Feature Scope Description 8 PUBLIC

9 ● This feature scope description Information on installation ● the relevant information on how to install SAP S/4HANA at http://help.sap.com/ find You can . s4hana_op_1809 ● Information on conversion find the relevant information on how to convert from an existing SAP Business Suite product to You can at SAP S/4HANA http://help.sap.com/s4hana_op_1809 Information on User-Interface (UI) technology ● find the relevant information on the User-Interface (UI) technology for SAP S/4HANA You can http:// at help.sap.com/s4hana_op_1809 ● Information on security You can find the relevant security information for SAP S/4HANA at http://help.sap.com/s4hana_op_1809 ● Information on operation find SAP S/4HANA at http://help.sap.com/ You can the relevant information on how to operate s4hana_op_1809 Note  The term “country” is used for convenience only and does not necessarily infer the existence of a nation state. What's New Status Feature New Finance: The functions of the SAP Revenue Accounting and Reporting Add-On are now inte­ gral parts of SAP S/4HANA. New Finance: The functions of group reporting, including consolidation and reporting, are now inte­ gral parts of SAP S/4HANA. New Asset Management: The features of Management of Change are new in Environment, Health, and Safety. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA - Feature Scope Description PUBLIC 9

10 2 SAP S/4HANA Enterprise Management Enterprise Management is designed for enterprises across industries that need a deep and SAP S/4HANA in customization. The following features broad level of functionality combined with a high degree of flexibility SAP S/4HANA SAP S/4HANA are provided as part of Enterprise Management. Features that are not part of Enterprise Management might require a separate license. For further information, please contact your SAP Account Executive. Functions for Implementing SAP S/4HANA Solutions 2.1 Business Background SAP S/4HANA offers you an assisted way to implement the features that you want to use in your SAP S/ 4HANA system. Key Features Use Key Feature Explore the solution scope Users can display the selected business processes that are supported by the solution and display information about the functional scope of each business process. Configure and activate the solution scope Key users can activate a pre-configured solution and adjust the business con­ figuration for this solution by viewing and adjusting basic con­ pre-configured settings using figuration activities. They can also add customer- configuration specific business processes and activities. Data Migration Key users can start and execute data migration using pre-defined migration objects and can get overviews and statuses for their migration projects. Data Protection 2.2 Business Background Data protection is associated with numerous legal requirements and privacy concerns. In addition to compliance with general data protection acts, it is necessary to consider compliance with industry-specific SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 10 PUBLIC

11 legislation in different specific features and functions to support compliance with the countries. SAP provides relevant legal requirements and data protection, for example, functions are available for various applications that simplify the blocking and deletion of personal data by using SAP Information Lifecycle Management (ILM).  Note In the majority of cases, compliance with data protection laws is not a product feature. specific SAP software supports data protection by providing security features and data protection-relevant functions such as functions for the simplified blocking and deletion of personal data. SAP does not provide definitions and other terms used in this document are not taken from any legal advice in any form. The given legal source. The user acknowledges that management of data in an extension scenario deviates from the management of data in the standard scenarios. Extension scenarios include, for example, the creation and usage of extension items such as custom or custom business objects on the part of the user. The customer is fields responsible to ensure that the data used in an extension scenario is managed in accordance with applicable legal requirements and in accordance with the business needs, such as data life cycle requirements. Key Features The following table explains the key features available: Key Feature Use Deletion and blocking: End of purpose Determines whether data is still relevant for business activities based on the residence period check defined for the data. Deletion and blocking: Blocking of data Prevents the business users of SAP applications from displaying and using data that may include personal data and is no longer relevant for business ac­ tivities. Only users with special authorization can display blocked data; they are not authorized, however, to create, change, or copy business objects with blocked data, or perform follow-on activities with these business objects. configura- Sample read access logging (RAL) Sample read access logging configurations are delivered for various ap­ plications. tions You can use RAL to monitor and log access to personal data. The information provided may include, for example, which business users accessed business partner personal data, and in which time frame. You can display and configure which read access information to log and under which conditions. Supports the data subject’s right to get information about their data that is be­ Information Retrieval ing processed. ILM Business Rule Creation Simplifies the process of defining residence and retention rules for your ILM objects. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 11

12 Key Feature Use Provides functions to import consent records as copies and to search for and Consent Management display stored consent records. SAP S/4HANA Enterprise 2.3 Industry coverage in Management Industry coverage SAP S/4HANA Enterprise Management contains core functions for the industries listed below. Extended find in chapter SAP S/4HANA LoB Products for specific industries . industry functions you will Industry Industry Cluster ● Consumer Products Consumer ● Wholesale ● Life Science ● Retail including fashion and vertical business ● Aerospace & Defense Discrete ● High Tech ● Industrial Machinery and Components ● Automotive ● Chemicals Energy & Resources ● Mining ● Mill Products ● Utilities ● Banking Financial Services ● Insurance PS & Postal ● Public Services ● Engineering, Construction, and Operations Services ● Professional Services ● Telecommunications Sports & Entertainment ● Sports & Entertainment ● Transportation & Logistics Transportation & Logistics SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 12 PUBLIC

13 2.4 Asset Management Maintenance Operations 2.4.1 Plant Maintenance Master Data 2.4.1.1 Business Background By mapping your operational structures to technical objects, you can efficiently manage and evaluate your technical assets and maintenance objects and monitor the costs involved. Structuring the existing technical systems on the basis of technical objects reduces the time required for managing the technical objects and allows a faster evaluation of maintenance data. A functional location represents an area within a system or plant where an object can be installed. Functional locations are created in hierarchical structures and thus allow a spatial, functional, or process-oriented structuring of your systems. Individual maintenance objects are represented by pieces of equipment that are installed in functional locations. The usage times of a piece of equipment at a functional location are documented over the course of time. Key Features The following features support you with this process: Key Feature Use Structuring Technical Objects The functional location is an organizational unit that structures the maintenance objects Hierarchically and Horizontally of a company according to functional or process-related criteria. When creating a func­ defining its place in the hierarchical structure you define where a tional location and different piece of equipment can be installed. Pieces of equipment can be installed in functional locations or in other pieces of equipment. As functional locations represent your company's operational structures, they are usu­ ally part of a hierarchical structure and you can summarize costs or other maintenance data for individual hierarchy levels. Based on the structure indicator, functional locations are automatically arranged in the structure when you create them. You can also create hierarchical equipment structures if you want to divide large pieces of equipment into smaller units. If you want to structure your technical systems horizontally, you can create object net­ works. Object networks are represented by links between various pieces of equipment or functional locations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 13

14 Key Feature Use defined, you can create a master record for each func­ Once the structure of the asset is Creating Master Records for Functional Locations and Pieces tional location and piece of equipment and specify general data, location data, organiza­ classification of Equipment tional data, and structure data as well as edit data and characteristic val­ ues, and assign documents. ● You can assign a bill of material (BOM) to the master record of a functional location or piece of equipment. ● classification After having created characteristics and classes, you can assign this information to the master records of equipment and functional locations. If you classification enables you to easily have to manage a large number of objects, the locate your objects and group them together for evaluations. You can serialize a piece of equipment by assigning a material number and serial ● number to it. This makes inventory management possible for the equipment. ● A piece of equipment that is installed in a technical object can store the history of its installation location. The system records a usage period for each installation loca­ tion, enabling you to track the complete installation history. ● fleet information, such as data pertaining to the engine and fuel, in You can maintain the equipment master record. You can represent objects that are not repaired but rather exchanged in case of a break­ down by creating master records for materials and assemblies. Although this does not enable you to document a maintenance history, a material or assembly can also serve as a reference object for a maintenance notification or order. Creating Maintenance Bills of A maintenance bill of material (BOM) is a complete, formally structured list of the com­ ponents making up a technical object or an assembly. Maintenance BOMs support you Materials (BOMs) when locating malfunctions by providing you with an overview of all components that make up a technical object. From this overview you can easily select the object for which you want to create a malfunction report. Furthermore, maintenance BOMs provide you with an overview of all spare parts used for the maintenance of a specific technical ob­ ject, so they make spares planning considerably easier. A maintenance BOM contains the object numbers of the individual components together with their quantity and unit of measure, and can be assigned to the master record of a technical object or material. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 14 PUBLIC

15 Key Feature Use Reading Measuring Points and Measuring points and counters are located on technical objects. They help you docu­ Counters and Creating Measure­ ment the condition of a technical object at a particular point in time and support you in ment Documents performing counter-based or condition-based maintenance. Documenting the condition of a particular object is of great importance in cases where detailed records regarding the correct condition have to be kept for legal reasons. This could involve critical values recorded for environmental protection purposes, as well as measurements of emissions and pollution for objects of all types. If you perform counter-based maintenance, mainte­ nance activities are always performed when the counter of the technical object has reached a particular counter reading. In the case of condition-based maintenance, the activities are triggered when the measuring point of a technical object has reached a par­ ticular state. After a measurement has been taken at a measuring point or a counter, the data is stored in a measurement document. Based on that document the system calculates the next planned maintenance date and the call date on which a maintenance order is cre­ ated. Each time you create a new measurement document, the system recalculates the planned date for the next maintenance work. In functional locations and pieces of equipment quickviews appear as separate popups Accessing Context-Sensitive In­ formation when you hover over an object, and provide relevant information about the superior technical object or the installed piece of equipment. In technical objects you can open preconfigured side panels in a separate screen area and display context-sensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Master Data in the You can use the Information Center to search for functional locations and pieces of equipment, and to call up technical objects from a personal worklist (POWL). Your per­ Information Center sonal worklist contains your favorites and objects that you have recently accessed or changed, and provides you with direct access to the Asset Viewer. You can personalize your worklist to your needs, sort table columns, and set filters. Visualization of Technical Ob­ With the SAP 3D Visual Enterprise Viewer, you can display graphics of technical objects right in the master data. You can display the graphic of the technical object as a thumb­ jects in the Master Data nail, as a 2D image or a 3D scene. In the 3D scenes, you can use various display func­ tions, for example, you can pull the visualized model apart or rotate it, display a detailed view or a cross-section, as well as display associated parts lists. Viewing Technical Objects in the The Asset Viewer is a display tool that enables simple navigation through complex object flexible relations and Asset Viewer navigation within and between objects. You can also view and navi­ gate the hierarchical structure of the technical object. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 15

16 2.4.1.2 Maintenance Planning and Scheduling Business Background Maintenance Planning and Scheduling effort required for inspection, helps you optimize the scope of work and maintenance, and planned repairs. Based on legal requirements, manufacturer recommendations, and cost analyses, you determine which preventive maintenance tasks are required, which work centers are needed, and how frequently preventive maintenance tasks have to be processed to avoid breakdown time. Maintenance plans support you in specifying maintenance cycles, scheduling maintenance calls, and determining the specific time period. In maintenance task lists you can describe a sequence of individual expected costs for a maintenance activities which must be performed repeatedly within your company. In addition, you can use 2D and 3D model views to visualize technical objects, spare parts, and instructions as well as to find the spare parts you need for carrying out maintenance tasks quicker and easier. Key Features The following features support you with this process: Use Key Feature Planning Complex Maintenance Maintenance strategies help you plan complex maintenance cycles. Based on legal re­ Cycles with Strategies quirements, manufacturer recommendations, and cost analyses, you use maintenance strategies to determine the sequence of planned maintenance and inspection tasks. Maintenance strategies contain maintenance packages with general scheduling informa­ tion and can therefore be assigned to different maintenance plans. This reduces the time required for creating maintenance plans and allows you to update maintenance schedul­ ing information easily. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 16 PUBLIC

17 Key Feature Use To plan recurrent maintenance work, you can create time-based and performance-based Processing Maintenance Plans maintenance plans, strategy plans, and multiple-counter plans. In time-based mainte­ nance planning, maintenance is performed in specific cycles, for example, every two months or every six months. With performance-based maintenance plans, you can plan regular maintenance based on counter readings maintained for measuring points of pieces of equipment and at functional locations. ● You can create and assign maintenance items that describe which preventive main­ tenance tasks should take place regularly for a technical object or a group of techni­ cal objects. You can assign a task list to the maintenance item to specify the individual work steps that must be executed, the spare parts and tools required for the job, as well as the required completion time. ● You can determine the maintenance cycles as planning data. If the maintenance plan is a strategy plan, the assigned maintenance strategy determines the mainte­ nance cycles. If the maintenance plan is performance-based, you can assign coun­ ters. Furthermore, you can specify other scheduling information, such as shift fac­ tors. ● You can view the scheduled maintenance calls for the maintenance plan. ● You can determine the expected costs for a specific period. The system calculates the costs based on existing calls and uses maintenance packages and cycles as well as assigned task lists as sources for estimating costs. When you schedule the maintenance plan and generate maintenance calls, the system generates maintenance call objects (for example, maintenance orders or maintenance notifications) for the due date, and copies the relevant planning data into the call object. You can display the scheduled calls using the call history. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 17

18 Key Feature Use Maintenance task lists describe a sequence of individual maintenance activities which Planning Recurrent Maintenance Work with Task Lists must be performed repeatedly within a company. They contain important information about the spare parts and tools required for the work steps, the work centers involved, and the time required to perform the work. As a maintenance planner, you can use task lists to standardize these recurring work sequences and to plan inspections, mainte­ nance, and repairs more effectively. Furthermore, task lists enable you to react quickly to changing environmental protection or occupational safety regulations that may affect continuous maintenance. You can create a general task list or a task list for a piece of equipment or func­ specific tional location: You can provide general information, such as the responsible work center and plant, ● the status, and the maintenance strategy. You can also specify a validity date that can be today's date or a date in the past or future. You can specify the required spare parts by assigning material components from ● the bill of material or adding materials that are not in the BOM of the maintenance object. ● You can determine which production resources or tools are required to perform the maintenance tasks, such as measuring and inspection instruments or cranes. You can describe the chronological interdependence between the maintenance ● tasks and create relationships between operations. You can create, display, and assign documents. ● You can perform cost analyses that allow you to see which of the operations descri­ ● bed have created which costs in a maintenance task list. This enables you to control your costs without creating an order. You can use task lists to detail out the individual work steps which must be executed as well as the spare parts and tools required for the job and the required completion time. When you then assign a task list to a maintenance item, maintenance notification, or an order, the system copies this maintenance data from the task list into the respective maintenance document. Performing Inspection Rounds You can plan and perform inspection rounds on different technical objects on a regular basis. The work activities in a round are similar and require the same tools, replacement qualifications while the number of technical objects may vary, depending on parts, and the sequence and the time required. An inspection round can involve functional loca­ tions, pieces of equipment, and measuring points or counters. You can assign an inspec­ tion round to a work center or a person. In an inspection round, you enter technical objects at the operation level of task lists or maintenance orders. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 18 PUBLIC

19 Key Feature Use Accessing Context-Sensitive In­ In maintenance plan and task lists you can open quickviews and side panels to gather formation further information. Quickviews appear as separate popups when you hover over an object, and provide rele­ vant information about the technical objects or the long text. You can open side panels in a separate screen area and display context- preconfigured sensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. worklist is an individually The Maintenance Plan and Maintenance Item List Processing Maintenance Plans configurable (POWL) that allows you to display and process all maintenance plans and items that and Items from a Personal Ob­ match the selection criteria in the query you have defined. The POWL provides the most ject Worklist important information about maintenance plans and items, enables you to carry out mass data changes and to navigate to the assigned technical objects. You can configure the list layout, sort table columns, and create filters. Selecting Spare Parts and View­ With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical ing Visual Instructions in Task objects, spare parts and instructions. 2D and 3D model views as well as animated scenes Lists make critical maintenance processes such as finding the spare parts you need and car­ rying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a task list you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visual­ ize each and every maintenance step at operation level, for example. The Asset Viewer is a display tool that enables simple navigation through complex object Viewing Relationships between Maintenance Objects in the As­ flexible navigation within and between objects. You can also view and relationships and set Viewer navigate through the hierarchical structure of technical objects. 2.4.1.3 Maintenance Execution Business Background Maintenance Execution allows you to perform planned and unplanned maintenance tasks. Maintenance planners can carry out preliminary costing, work scheduling, material provisioning, and resource planning. They provide maintenance workers with job lists so that they have easy access to all maintenance-related information. This leads to increased efficiency and productivity. Maintenance workers can review the jobs assigned to them and carry out the required maintenance work based on the tasks and operations in the order. While confirming that they have finished the job, they can enter measurement readings, which the system records in measurement documents. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 19

20 Key Features The following features support you with this process: Use Key Feature As a maintenance planner or worker you can report a malfunction or a problem at a Reporting a Malfunction Using notification Notifications technical system by creating a in which you specify the technical object, de­ scribe the malfunction, and enter the activities to be performed. Hierarchical structure lists support you in specifying the technical object and provide you with information about assigned materials and components. You can enter breakdown information, de­ scribe the damages and causes, and enter tasks and activities. By choosing the appro­ priate codes for describing the damages and malfunctions as well as what caused the damage, you ensure that issues can be entered in a standardized way and therefore be evaluated automatically. Having completed your work, you can confirm the time spent on each activity. To add further information, you can upload and attach documents to the notification. You can print out the shop paper of the physically or virtually on the job card notification notification and by doing so, transfer the to the job list. Planning and Executing Mainte­ When a malfunction is detected, the maintenance planner can use a maintenance order nance Work Using Maintenance to detail out the maintenance tasks that are to be performed on the technical object. As a planner, you can create a maintenance order for a specific notification or create the Orders maintenance order directly with or without reference to an existing order. When creating or changing a maintenance order, you can either assign existing task lists and notifica- or create new ones for the order. tions In the maintenance order, you provide all the information needed to plan and execute the maintenance work. That includes start and finish dates, location information, planned finding the rele­ materials and production resources/tools. The system supports you in vant technical object, choosing the required materials and checking their availability, scheduling the job, and determining the costs: ● You can specify the technical objects using a hierarchical list. ● You can choose the required materials using a catalog. When you plan materials for executing order operations, you can display whether the materials planned for the operation are available on time and in sufficient quantity. ● After you have planned an order with all its operations and components, you can use the scheduling function to determine the actual execution dates, the capacity requirement needed to execute the order, and the date on which a particular mate­ rial should be available. ● You can determine costs and run cost simulations. For inspection rounds, you can enter technical objects and assemblies at operation level and assign measuring points as production resources/tools to the technical objects. To add further information, you can upload and attach documents to the order. You can print out the shop paper of the maintenance order physically or virtually on the job card and by doing so, transfer the order to the job list. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 20

21 Key Feature Use Confirming Job lists and confirmation lists support maintenance workers in processing and confirm- Processing and maintenance jobs. Maintenance Jobs ing Job lists provide a list of maintenance jobs to be carried out, as well as crucial infor­ ● mation for each job at a glance, such as the urgency, start and end dates, and as­ job lists so that they reflect how work is or­ signed work center. You can configure ganized in your particular organization and therefore only contain the jobs that are relevant to you. lists contain all the planned maintenance jobs that can be confirmed. ● Confirmation or adjust As a maintenance worker, you can check the planned job data and confirm it. That includes the time you spent on the job and the materials you consumed as well as the activities you performed and the measurement readings. Depending on confirmation how configure different confirmation is done in your company, you can lists. fix confirm As a maintenance worker, if you a problem at a technical system, you can also this unplanned job and enter all the required data after having finished your work. You then can enter the time spent and the required materials, write a long text and, if neces­ sary, create an activity report. The system automatically creates an order and - if an ac­ notification, tivity report exists - a notification to technically com­ sets the order and pleted , stores the time confirmation, and posts a goods issue for the order. You can also confirm unplanned jobs while working in the Asset Viewer. Accessing Context-Sensitive In­ and orders you can open quickviews and side panels to In maintenance notifications formation gather further information. Quickviews appear as separate popups when you hover over an object, and provide rele­ vant information about the assigned notification or order, technical objects, materials, activities, statuses, and long texts. You can open side panels in a separate screen area and display context- preconfigured sensitive charts and data, such as context-sensitive master data or information about vendors and customers. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. is a central point of access to several The Order and Notification Information Center Processing Maintenance Docu­ and orders. You can ac­ ments in the Order and worklists that you can use for processing all your notifications Notifica- tion cess worklists for notifications, orders, and order operations, or use the combined Order Information Center and Notification List . The worklists allow you to display and process all maintenance noti­ fications and orders that match the selection criteria in the query you have You defined. configure can filters. In addition, you have the list layout, sort table columns, and create the option of displaying table columns for monitoring critical dates and costs, whose col­ ors help you detect issues. Furthermore, the lists enable you to change the status of orders and notifications and provide a mass data change function. In the combined Notification List , you Order and can also display the assignments of notifications to orders. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 21

22 Key Feature Use With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical Selecting Spare Parts and View­ objects, spare parts, and instructions. 2D and 3D model views as well as animated ing Visual Instructions in Mainte­ nance Orders finding the spare parts you need scenes make critical maintenance processes such as and carrying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a maintenance order you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visualize each and every maintenance step at operation level, for example. If you have set up the conversion accordingly, you can even convert the visual instructions assigned to a maintenance order to PDF format, use them on job cards, and print them out. Viewing Relationships between The Asset Viewer is a display tool that enables simple navigation through complex object navigation within and between objects. You can also view and Maintenance Objects in the As­ relationships and flexible set Viewer navigate through the hierarchical structure of technical objects. Finance 2.5 2.5.1 Financial Planning and Analysis 2.5.1.1 Profitability Analysis Cost Management and 2.5.1.1.1 Overhead Cost Accounting Business Background This application area covers the journal entries for Overhead Cost Accounting. It captures costs by cost center defines the output of the cost center in terms of activity types. It allows you to enter statistical key figures and as a basis for your allocations at period close. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 22

23 Key Features The following features support you with this process: Use Key Feature Master data in cost accounting You can create various types of master data, such as Cost centers ● ● Cost center groups ● Activity types ● Activity type groups ● Statistical key figures Statistical key ● groups figure ● Internal orders Projects ● You can enter activity prices for any combination of cost cen­ Activity prices ter and activity type. Activity prices are needed to provide the charge basis for the internal activities. Statistical key You can enter statistical key figures, which serve as a basis figures for internal allocations. Overhead allocation You can allocate costs, for example, between cost centers, which is a typical task during the monthly closing process. Reporting You can report on actual and plan data for selected periods for the following objects: ● cost centers ● market segments P&L statements ● ● functional areas ● profit centers ● internal orders ● projects 2.5.1.1.2 Product Cost Management Business Background This business area allows you to determine the costs incurred by your products and services in order to successfully manage your product portfolio. These cost can be broken down into each step of the value chain leveraging the superior capabilities of an integrated S/4HANA system, while mapping the quantity flow from the logistical area with the values of Finance. Product Cost Management is key for your company’s inventory valuation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 23

24 The approach to Product Cost Accounting is determined by the type of manufacturing process. In an engineer- to-order or make-to-order environment, the focus is on the costs for individual sales orders. In a make-to-stock environment, the focus is on the costs for the individual production orders or process orders. In a repetitive manufacturing environment, a period-based cost controlling may replace the individual order. Key Features Key Feature Use Product costing Assign costs to individual units of products and services. Product costs by sales order Determine costs for sales orders in engineer-to-order or make-to-order environments. Determine costs for production orders and process orders in Product cost by manufacturing order make-to-stock environments. Period costs Determine period-based costs in repetitive manufacturing environments using product cost collectors as the cost ob­ ject. Material inventory values Report on quantities and values of the material inventory. You can also report on rounding differences between the cur­ rent stock postings of the actual stock and the calculated stock. 2.5.1.1.3 Profitability and Cost Analysis Business Background This application area enables you to analyze the profitability of your market segments and cost objects. It shows contribution margins in real time and offers detailed views for further analysis. You can analyze market segments by product, product group, customer, customer group, and sales organization. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 24

25 Key Features Key Feature Use Provide information on revenue and cost of sales to support Revenue and cost of sales internal accounting and decision-making. You can allocate your overhead costs from cost centers to Overhead allocation to profitability market segments using a periodic run. Settle projects to capitalize the balance from results analysis Settlement and include it in the contribution margin for Enterprise Con­ trolling. Settle orders to include production variances in the contributions margin. Real-time profitability Attributed profitability segments support real-time profita- reporting reporting for market segment attributes such as Cus­ bility tomer, Customer Group, Product, Product Group, or Sales Organization to support your internal accounting and deci­ sion-making. This approach can sometimes replace the use of allocation and settlement. Event-based revenue recognition Event-based revenue recognition posts recognized revenue for every cost posting on simple customer projects. It ap­ plies the matching principle for costs and revenues, so the reported margin is always up to date. For example, if a customer project has the contract type confirmation Fixed Price or Time & Material, each time im­ mediately triggers a revenue recognition line item. Realignment of market segment attributes You can update and adjust your posted market segment at­ tributes (excluding all GL-relevant information) without af­ fecting your financial data, for example after organizational changes or master data corrections. Journal Entries for Statistical Sales Conditions Journal entries for statistical pricing conditions in customer invoices can be posted to an extension ledger in Financial Accounting to enhance information relevant for manage­ ment reporting in Finance. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 25

26 2.5.2 Accounting and Financial Close Accounting 2.5.2.1 2.5.2.1.1 General Ledger Business Background financial accounting. You use the general ledger to perform the necessary tasks of Key Features As a general ledger accountant, you can use the following functions: Key Feature Use Master Data profit centers, profit center groups and G/L You can manage master data for accounts. If you specify profit centers in postings, you can create a profit and loss state­ ment (P&L) for profit centers and a financial statement for internal purposes. G/L account master data defines how business transactions are posted on G/L accounts and how the posting data is processed. The directory of all G/L accounts is the chart of accounts. Postings and Journal Entries You use journal entries to business transactions. reflect You can manage open items by reversing or clearing open items for example. You can also reset a clearing. You can create recurring entries for journal entries that are repeated regularly. For external and internal accounting there is the universal journal. A posting is made for every business transaction that is relevant for General Ledger Ac­ counting, Asset Accounting, Controlling (with the exception of costing-based profitability analysis) and the material ledger. External and internal accounting are constantly reconciled, which means separate reconciliations between Fi­ nancial Accounting and Controlling, as well as between General Ledger Ac­ counting and Asset Accounting, are not necessary. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 26 PUBLIC

27 Key Feature Use For closing operations at period-end closing, you can use the programs availa­ Closing Operations and Reporting ble for analyzing, valuating, and reclassifying the journal entries. Using Accruals Management, you can post expenses in the period in which they are incurred or probably will be incurred. With these closing operations, you create a balance sheet and a profit and loss statement (P&L). All accounting data is available simultaneously in each report that is based on the universal journal. Cost and revenue information is always up to date and is profit and loss statement. continuously reconciled with the There are different programs available for sales/purchases tax declarations and tax payable postings. Parallel Accounting You can manage General Ledger Accounting in accordance with several ac­ counting principles simultaneously, for example with a local accounting princi­ ple and the accounting principle of a corporate group. Asset Accounting 2.5.2.1.2 Business Background You use Asset Accounting to manage and monitor tangible fixed assets. It provides detailed information about the transactions relating to tangible fixed assets. Prerequisites To be able to use Asset Accounting, you have to also use General Ledger Accounting. For more information, see General Ledger [page 26 ] . SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 27

28 Key Features As an asset accountant, you can use the following functions: Use Key Feature You can use the asset master record to create, edit, and manage the master Master Data data of Asset Accounting. Asset Acquisitions and Asset Retirements You can post asset acquisitions integrated with accounts payable accounting or not integrated. Similarly, you can post asset retirements integrated with accounts receivable accounting or not integrated. In addition to this, there are more functions available for asset acquisitions and retirements. Depreciation With depreciation you map impairments incurred or impairments that are due to tax law requirements. More Transactions, Reversal More transactions, for example post-capitalizations are available. You can reverse documents that are posted in Asset Accounting. Postings and Documents Asset Accounting is based on the universal journal entry. General Ledger Ac­ counting and Asset Accounting are therefore reconciled per se; this means that reconciliation postings are not necessary as part of closing operations. You post the depreciation amounts periodically, directly in General Ledger Ac­ Closing Operations and Reporting counting. Create an asset history sheet to represent the development of the fixed asset from the opening balance through to the closing balance. More tools for the reporting and analysis of asset portfolios, asset transac­ tions, and depreciation (including depreciation forecast and simulation) are also available. Parallel Accounting You can manage Asset Accounting in accordance with several accounting prin­ ciples simultaneously, for example with a local accounting principle and the accounting principle of a corporate group. This happens in the same way as in General Ledger Accounting. Separate documents are posted for each ac­ counting principle. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 28 PUBLIC

29 2.5.2.1.3 Revenue Accounting and Reporting Business Background You use Revenue Accounting and Reporting to manage the revenue recognition and revenue accounting process according to statutory regulations, such as IFRS 15/ASC 606. Prerequisites To be able to use Revenue Accounting and Reporting, you also have to use General Ledger Accounting. For more information, see General Ledger [page ] . 26 Key Features As a revenue accountant, you can use the following functions that map to the general 5-step process for IFRS 15/ASC 606: Key Feature Use You can create revenue accounting contracts corresponding to orders, con­ Identify contracts tracts, bills or invoices, meaning revenue documents, that are created on an operational system, such as Sales and Distribution or third-party systems. Identify performance obligations You can identify the performance obligations included in each revenue ac­ counting contract. You create performance obligations for items in the operational document and manage their relationships with one another. Allocate the transaction price You can determine the total price by aggregating the pricing conditions and then allocate the total price among the performance obligations. Manage the fulfillment of performance ob­ You can recognize revenue for performance obligations as they are fulfilled ei­ ther at a point in time or over time. ligations Make revenue postings You calculate contract liability and contract asset values and make postings to the general ledger to revenue-related recognition transactions. reflect Reporting There are sample reports available out of the box which you can use for devel­ oping your own reports. You can use the available data sources to create analytical reports to meet ad­ ditional company disclosure requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 29

30 2.5.2.1.4 Inventory Accounting Business Background You use Inventory Accounting to value and monitor your material and work-in-process inventories according to legal regulations and management accounting requirements. All goods movements are valued in the Material Ledger which supports parallel, real-time valuation of inventories in multiple currencies. A special focus lies on high throughput of logistics data that allows for managing massive data volumes. You can choose to value your material inventories at standard cost or moving average automatically. In addition, you may make manual adjustments to material costs and inventory values. You may also use periodic valuation of material inventories according to statutory requirements (such as Lowest Value, LIFO, or FIFO) or product cost management requirements (such as actual costing or standard costing). Key Features Use Key Feature Automatic Valuation of Material Inventories Valuation of material inventories in multiple currencies in parallel Optional Price Controls for Materials Perpetual valuation of material inventories and movements at standard cost or moving average High Throughput of Logistics Data Manage high logistics data volume Manual Adjustments to Material Costs and Inventory Values Adjust material costs and inventory values manually Periodic Valuation of Material Inventories Valuation of material inventories according to statutory or product cost management requirements Analyze Inventory Values Real-time line item reports aggregated to inventory positions on the fly, with drill-down capabilities 2.5.2.1.5 Accounts Payable Business Background Invoices are created in purchasing and submitted to accounts payable. As an accounts payable accountant, when you receive an invoice, you can view key performance indicators (KPIs) for the invoice and process the invoice. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 30 PUBLIC

31 Key Features The following features support you with this process: Use Key Feature Import of supplier invoices You use this feature to import multiple supplier invoices all at once. You use this feature to view information about payments to Analysis of payments to suppliers suppliers. You can check the overdue payable amount and the future payable amount. If you identify negative trends in the payable amount, you can notify the responsible persons to take action. Management of cash discounts You use this feature to forecast the available cash discounts and to monitor the cash discount utilization in your responsi­ ble area. You can out where you need to make better use find of cash discounts in order to avoid cash discount loss in the future. Reviewing of cleared overdue invoices You use this feature to get details and statistical facts about cleared overdue invoices. Evaluation of days payable outstanding You use this feature to identify suppliers with the highest or the lowest days payable outstanding. Management of payments You use this feature to create, post, and, if necessary, re­ verse payments. Management of payment blocks You use this feature to set and remove payment blocks on in­ voices or supplier accounts. You can identify irregularities or potential fraud in invoices through integration with SAP Fraud Management for SAP S/4HANA*. Management of payment proposals You use this feature to revise and release payment propos­ finance system. als. Journal entries are then generated in the You use this feature to transfer the data required for elec­ Management of payment media tronic payment transactions to banks via a data medium. A payment medium is created with each successful payment run. *SAP Fraud Management for SAP S/4HANA is co-deployed with SAP S/4HANA . SAP Fraud Management for SAP S/4HANA SAP S/4HANA Enterprise Management, but part of the add-on SAP Assurance is not part of and Compliance Software for SAP S/4HANA , for which you need a separate license. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 31

32 2.5.2.1.6 Accounts Receivable Business Background Accounts Receivable allows you to record and manage accounts receivable data of all customers. All postings to accounts receivable are triggered in response to operative transactions in sales and logistics. Simultaneously, postings are recorded in the general ledger. Different general ledger accounts are updated depending on the transaction involved, such as receivables, down payments or bills of exchange. Customer line items are cleared when incoming payments are received. flexible You can monitor open items by using, for example account analyses, due date lists and a dunning function. You can adjust the correspondence forms to your requirements, as well as payment notices, balance confirmations, account statements, and interest calculations. You can assign incoming payments to receivables due. The payment function automatically executes direct debiting and down payments. A range of tools allows you to document transactions in accounts receivable, such as balance lists, journals, balance audit trails and other standard reports. Prerequisites To use accounts receivable, you have to also use general ledger. For more information, see General Ledger [page 26 ] . Key Features The following table explains the key features available: Use Key Feature Master Data You can manage and store your customer data as business partner data. You can create and change customer data using the business partner, so that you do changes, for example, in address data, only once. Monitoring of Receivables You can display overdue receivables and customer balances. In addition, you can process individual customer items. Posting Business Transactions You can post accounting data for customers in accounts receivables and the data entered is transferred to the general ledger. General ledger accounts are updated according to the transaction concerned (receivable, down payment, bill of exchange, and so on). Clearing of Open Invoices You can post incoming payments and either manually clear open items or have them cleared automatically by the system. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 32 PUBLIC

33 Key Feature Use You can send correspondence to your customers, such as payment notices, Correspondence or account statements. You can adjust open item lists, balance confirmation the forms for the correspondence according to your requirements. You can prepare and carry out periodic activities, such as automatic payment Periodic Activities and Closing Operations or dunning, or activities that arise for day-end closing, month-end closing or year-end closing. Analytics You can carry out evaluations and analyses for your customers, such as pay­ ment history, currency risk or Days Sales Outstanding (DSO) analysis. Financial Close 2.5.2.2 Entity Close 2.5.2.2.1 Business Background You can perform local close for one or several companies of your corporate group monthly, quarterly, yearly, or definable range of closing operations. Local accounting principles and/or at other intervals with a freely principles applied by the group can be taken into account. Key Features Closing operations include the following tasks: ● Maintain exchange rates ● Execute recurring entries ● Clear open items ● Perform inventory and post inventory differences Reclassify clearing account for goods receipt/invoice receipt ● Valuate materials ● Perform closing operations in the subsidiary ledgers ● ● Perform foreign currency valuation ● Reclassify receivables and payables ● Use functions for tax on sales/purchases ● Perform reconciliation between affiliated companies; these intercompany reconciliations are used in preparation for consolidation. Close posting period and open new posting period ● ● Display financial statements ● Execute balance carryforward SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 33

34 ● Evaluate statements financial Corporate Close - Consolidation Foundation 2.5.2.2.2 Background You use consolidation foundation to create and monitor your financial data collection for corporate close, either for legal purposes or for the purposes of consolidated management reporting. This process offers a high flexibility regarding the data collection process as well as the configuration of different accounting degree of principles. You can highly integrate with the accounting solution to automate the consolidation data collection process. Key Features The following features are available to you as a consolidation expert: Use Key Feature ● Versioning helps you run consolidations in par­ different Master Data allel using different criteria, for example: ○ For actual, plan, and target data ○ For parallel accounting (for example, U.S. financial GAAP, IFRS) ○ For simulations The smallest element of the corporate structure in con­ ● solidation is the entity. An entity can represent a com­ profit center, a business area, or a plant. pany, a ● You use group G/L accounts that are mapped to opera­ tional G/L accounts to get financial values from the group view. You can collect individual financial statement data from SAP Data Collection systems as well as non-SAP systems. Various procedures are available for doing this. Data Validation You can define validation rules and assign the rules to vari­ ous dimension combinations to verify the data quality before releasing data for consolidation use. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 34 PUBLIC

35 Key Feature Use Modeling A model is used to bundle all of the characters and key figure definitions, customizations, and consolidated results into a separate consolidation context. You use the modeling proc­ ess to decide which fields are needed for consolidation di­ mensions, and which are needed to join with global settings to form the data basis for consolidation. 2.5.2.3 Basic Compliance Reporting Business Background You use the basic compliance reporting to get an optimized overview of your compliance reporting tasks, and to generate and send the compliance reports to the government on time. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 35

36 Key Features Key Feature Use Basic compliance reporting enables you with the following features: Basic compliance reporting Monitor the compliance status and due dates for the supported compli­ ● ance reports. ● Generate and submit basic compliance reports. The generated compli­ ance reports are persisted by the system. Additionally, you can generate business partner correspondence for few supported reports. Note  Some of the compliance reports need additional licenses. ● Generate and submit ad hoc or non- periodic reports that may be re­ quested by the government authorities on a non-regular basis. ● Define the reporting entities that you need to fulfill the compliance re­ quirements for your organization. ● Upload complementary compliance attachments to support your report­ ing requirements. ● Based on the available report features, you can: Download the generated reports for manual submission to the gov­ ○ ernment authorities ○ Verify the content of the legal report electronically before submission ○ Submit the reports electronically to a government gateway ● Generate correction runs ● Schedule the report generation based on your requirements. You can choose to generate the report immediately, or schedule the report genera­ tion for a later point in time. You can also cancel the reports runs that are in-process. ● View and process the activities that are relevant for your compliance re­ porting scenario. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 36

37 Key Feature Use With basic compliance reporting you can submit: Generate and submit basic compliance re­ ports ● Account Balance Reporting for Mexico ● Annual Sales Listing for Belgium ● Audit report for Hungary ● Auxiliary Report for Accounts for Mexico Balance of Payments (S03CCR, F01DGS, F01MER, F02CMS) for Belgium, ● Balance of payments (ECO and RTE) for France, Balance of Payments (STATEC Form26) for Luxembourg, Balance of Payments (Form-L1) for Austria Cash flow direct/indirect for China ● Chart of Accounts reporting for Mexico ● Customer, G/L Account, and Supplier Trial Balance and Line Items for Po­ ● land ● Daily VAT for Argentina ● DIOT reporting for Mexico EC Sales List for Austria, United Kingdom, Sweden, Spain, Netherlands, ● Luxembourg, Ireland, France, Belgium, Denmark; EC Sales and Purchase list for Hungary ● e-Tax Invoices - VAT In/Out for Indonesia ● Form 347 (Annual Statement of Transactions, Incoming Cash Transac­ tions) for Spain ● Goods, and Service Tax (GST) returns for Singapore, Canada (HST, PST, RITC, QST), GST Audit File (GAF), GST03 for Malaysia ● Journal Entries Details for Mexico National Bank Reporting for Switzerland ● Overdue Invoice Reporting for France ● ● Sales and Purchase ledger for Russia Sales and Purchase VAT for Argentina, Venezuela ● ● SAF-T reporting for Luxembourg ● Tax Summary for Philippines ● Value Added Tax (VAT) returns for Ireland, Finland, United Kingdom, South Africa, Philippines, Luxembourg, Spain, France (CA3 VAT returns), Indone­ sia, Israel, Italy, Taiwan, Thailand, Hungary, Netherlands, Russia, Switzer­ land, and South Africa ● Withholding taxes for Belgium, France, Japan (Blue and White returns), Philippines, United Kingdom, and United States (1042S, 1099MISC, 1099G, 1099INT, and 1099K), Spain, Saudi Arabia, India, Italy, Indonesia (PPH 23/26), Ireland, Mexico, and South Korea  Note These basic compliance reporting features are part of SAP S/4HANA Enterprise Management. On top of these features, SAP S/4HANA provides additional features which require an additional license. For the list of additional features see, Advanced Compliance Reporting [page 262 ] . SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 37

38 2.5.3 Treasury Management Cash and Liquidity Management 2.5.3.1 Business Background To preside over the cash assets of a company, cash managers need to closely monitor cash positions, centrally manage banks and bank accounts, and regularly forecast the liquidity trends of the organization. Key Features Key Feature Use Cash Positions You can use this feature to check the actual and forecasted cash positions to assist cash allocation decision-making. Banks and House Banks You can use this feature to display, create, and change data about the banks that your company, your customers, and your suppliers use to transact business. You can use this feature to centrally manage the master data Bank Account Master Data of your company's corporate or business bank accounts, as well as house bank accounts. Liquidity Forecast You can use this feature to forecast the future liquidity trend. Memo Record You can use this feature to create memo records manually and edit memo records in a list. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 38 PUBLIC

39 2.5.4 Financial Operations Invoice and Payables Management 2.5.4.1 Accounts Payable 2.5.4.1.1 Business Background Invoices are created in purchasing and submitted to accounts payable. As an accounts payable accountant, when you receive an invoice, you can view key performance indicators (KPIs) for the invoice and process the invoice. Key Features The following features support you with this process: Key Feature Use Import of supplier invoices You use this feature to import multiple supplier invoices all at once. Analysis of payments to suppliers You use this feature to view information about payments to suppliers. You can check the overdue payable amount and the future payable amount. If you identify negative trends in the payable amount, you can notify the responsible persons to take action. Management of cash discounts You use this feature to forecast the available cash discounts and to monitor the cash discount utilization in your responsi­ ble area. You can find out where you need to make better use of cash discounts in order to avoid cash discount loss in the future. Reviewing of cleared overdue invoices You use this feature to get details and statistical facts about cleared overdue invoices. Evaluation of days payable outstanding You use this feature to identify suppliers with the highest or the lowest days payable outstanding. Management of payments You use this feature to create, post, and, if necessary, re­ verse payments. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 39

40 Key Feature Use You use this feature to set and remove payment blocks on in­ Management of payment blocks voices or supplier accounts. You can identify irregularities or potential fraud in invoices through integration with SAP Fraud Management for SAP S/4HANA*. Management of payment proposals You use this feature to revise and release payment propos­ als. Journal entries are then generated in the system. finance Management of payment media You use this feature to transfer the data required for elec­ tronic payment transactions to banks via a data medium. A payment medium is created with each successful payment run. SAP S/4HANA is co-deployed with SAP S/4HANA *SAP Fraud Management for . SAP Fraud Management for SAP S/4HANA is not part of SAP S/4HANA Enterprise Management, but part of the add-on SAP Assurance and Compliance Software for SAP S/4HANA , for which you need a separate license. 2.5.4.1.2 Dynamic Discounting (Ariba Network Integration) Business Background If you have enabled discount management for suppliers on the Ariba Network, you can manage cash discounts offer through to agreement. This optimization of cash discounts can increase your company's from initial and gives your suppliers the opportunity to receive their payments earlier. profits, Key Features Key Feature Use Open payables Send information about open payables to the Ariba Network. Updates to open payables Send updates to information already sent to the Ariba Net­ work about open payables if there are changes that impact the negotiations about early payment. Adjustments to open payables Receive information from the Ariba Network about adjusted cash discounts and due dates of open payables. Monitoring Monitor, troubleshoot, resend, and cancel outbound cXML messages. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 40 PUBLIC

41 2.5.4.1.3 Payment Advice Collaboration (Ariba Network Integration) Business Background You are able to collaborate with your suppliers by sending them payment advices via the Ariba Network. These payment advices are based on the results of a payment run and explain the payments made to your suppliers. Key Features Key Feature Use Payment advices Send payment advices to suppliers via the Ariba Network. Monitoring Monitor, troubleshoot, resend, and cancel outbound cXML messages. 2.5.4.2 Receivables Management 2.5.4.2.1 Accounts Receivable Business Background Accounts Receivable allows you to record and manage accounts receivable data of all customers. All postings to accounts receivable are triggered in response to operative transactions in sales and logistics. Simultaneously, postings are recorded in the general ledger. general ledger accounts are updated Different depending on the transaction involved, such as receivables, down payments or bills of exchange. Customer line items are cleared when incoming payments are received. You can monitor open items by using, for example account analyses, due date lists and a flexible dunning function. You can adjust the correspondence forms to your requirements, as well as payment notices, balance confirmations, account statements, and interest calculations. You can assign incoming payments to receivables due. The payment function automatically executes direct debiting and down payments. A range of tools allows you to document transactions in accounts receivable, such as balance lists, journals, balance audit trails and other standard reports. Prerequisites To use accounts receivable, you have to also use general ledger. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 41

42 For more information, see General Ledger [page ] . 26 Key Features The following table explains the key features available: Use Key Feature Master Data You can manage and store your customer data as business partner data. You can create and change customer data using the business partner, so that you do changes, for example, in address data, only once. You can display overdue receivables and customer balances. In addition, you Monitoring of Receivables can process individual customer items. Posting Business Transactions You can post accounting data for customers in accounts receivables and the data entered is transferred to the general ledger. General ledger accounts are updated according to the transaction concerned (receivable, down payment, bill of exchange, and so on). You can post incoming payments and either manually clear open items or have Clearing of Open Invoices them cleared automatically by the system. Correspondence You can send correspondence to your customers, such as payment notices, open item lists, balance confirmation or account statements. You can adjust the forms for the correspondence according to your requirements. Periodic Activities and Closing Operations You can prepare and carry out periodic activities, such as automatic payment or dunning, or activities that arise for day-end closing, month-end closing or year-end closing. Analytics You can carry out evaluations and analyses for your customers, such as pay­ ment history, currency risk or Days Sales Outstanding (DSO) analysis. 2.5.4.3 Settlement Management Business Background Settlement management involves all types of settlement processes, including core business processes that need to be fully integrated in the order-to-cash cycle or within in a procure-to-pay scenario, such as rebate settlement, as well as standalone processes, whereby special financial settlement services are provided for business partners. Financial settlement processes are typically required for handling settlement transactions between third parties such as brokers and payment agencies. Benefits or services can be offered to the parties involved, such SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 42 PUBLIC

43 as del credere guarantees or simplified payment transactions, and settlement accounting for commissions can be performed. In pooled payment, for example, an agency negotiates purchase price conditions and payment processing between the supplier and customer. The agency takes a commission from the customer and/or the supplier for services rendered. Transactions relating to the actual merchandise, for example, purchase orders and deliveries, can be carried out completely independently of the agency. For the purpose of payment processing and commission calculation, the agency can enter incoming invoices. Key Features The following table explains the key features available: Key Feature Use ● Handling of all ad-hoc remunerations made to a supplier or charges made Entry of remuneration settlements with­ to a customer out reference to preceding transactions In del credere business, this allows del credere payables to be separated from those resulting from purchases. ● Entry of incoming invoices from a supplier to a customer Entry of incoming invoices without refer­ ence to preceding transactions and crea­ ● Grouping of documents in lists for multiple business partners for posting tion of follow-on documents on specific dates ● Entry of incoming invoices as a settlement document with direct posting to accounting or settlement using supplier settlement/supplier settle­ ment list and a customer settlement/customer settlement list ● Entry of incoming invoice lists as supplier settlement lists using a cus­ tomer settlement/customer settlement list for the settlement on the cus­ tomer side Creation of follow-on documents to perform settlement accounting for ● payments and commission ● Price determination Automatic determination of accounting- Calculation of del credere commissions, discounts, conditions, and other related data, such as terms of payment transactions involving prices using purchasing or sales pricing and cash discounts ● Purchasing and sales account determination Determination of document processing by Use of different processing methods for different document types, such as in­ voices, credit memos, debit memos, pro forma invoices, and cancellation docu­ document type ments, for example, regarding the entry of default data, account and price de­ termination, the creation of follow-on documents, and posting rules SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 43

44 Key Feature Use ● Posting of documents as analysis documents and thereby profitability Integration with other solution capabilities profitability transfer incomes, rebates, and other documents to account­ ing. flow is ● Transfer of documents to cash management to ensure that cash planned in good time. Use of credit management to define individual credit checks for the cus­ ● tomers involved. ● Posting of documents to accounting on saving a document or later by Forwarding of documents to accounting mass release A check can be implemented to ensure that only authorized persons can release documents for posting. Processing of documents and document lists individually or in batches (re­ Mass processing of documents lease, reverse, complete, reopen) flow and status Tracking of documents from invoice entry through to posting to accounting Monitoring of document Creation of messages for documents that support communication with busi­ Message creation ness partners ● Reconciliation of external documents, such as invoices or credit memos, Clearing with internal documents, such as transaction data ● Invoice verification and clearing scenarios for settlement management processes ● Clearing for both parties, either supplier or customer Handling of as invoice reduction, accrual, accepted difference ● differences (internal adjustment), or other difference ● of tolerances for accepted differences Definition Complaints processing Entry of complaints for a settlement document and recording and tracking of complaints Intrastat processing Creation and processing of documents that contain information relevant for the creation of Intrastat declarations Get a compact overview of condition contracts that enables the user to ● Condition contract management display condition contract information and navigate directly to the docu­ ments. ● Storage of agreements between business partners in the form of a condi­ tion contract A condition contract contains information, such as prices, conditions, and the validity of the agreement. It forms the basis for settling claims or re­ bates on suppliers or payables to customers. ● Handling of pricing conditions only for a specific order-to-cash or procure- to-pay process based on a condition contract SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 44 PUBLIC

45 Key Feature Use Posting accruals based on relevant invoices to update the bonus entitlements Accruals processing for future customer or supplier settlements in accounting. Archiving Archiving of documents to remove volumes of data from the database that are no longer required in the system, but still need to be kept for analysis purposes 2.5.5 Governance, Risk, and Compliance for Finance 2.5.5.1 International Trade International Trade supports you in the following areas: Classification International Trade ● Classification of products with commodity codes, Intrastat service codes and Customs Tariff Numbers. ● Classification of products with control classes and control groupings for legal control. ● Management of classification data from external data providers (commodity codes). International Trade Compliance Control of statutory regulations for import and export. ● ● Managing of licenses in accordance with legal control for import and export. ● Managing and release of blocked legal control documents. ● Managing Countries under Embargo. Intrastat ● Creating and managing Intrastat messages and their master data. Integration with SAP Global Trade Services ● Integration allows to use the GTS functionalities in your processes. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 45

46 Integration with SAP Watch List Screening ● Integration allows to screen names and addresses for sales orders, outbound deliveries and purchase orders. 2.5.5.1.1 International Trade Classification Business Background classification to manage commodity codes, Intrastat service codes, control classes and control You use groupings and their assignment to products. The Intrastat service codes are only relevant for Italy. Key Features The following table explains the key features available: Key Feature You can manage the commodity codes that you require for your Intrastat dec­ Manage commodity codes larations. Classify products with commodity codes find products to which no commodity code has yet been assigned, and You can specific assign a commodity code for a period to these products. Reclassify products with commodity co­ You can find products to which a commodity code has been assigned, and as­ specific sign a new commodity code for a des period to these products. Manage Intrastat service codes You can manage Intrastat service codes that you require for your Intrastat dec­ larations. Classify products with Intrastat service You can find products to which no Intrastat service code has yet been as­ codes signed, and assign an Intrastat service code for a specific period to these prod­ ucts. Reclassify products with Intrastat service products to which an Intrastat service code has been assigned, You can find codes specific period to these products. and assign a new Intrastat service code for a Classify Products with Legal Control You can assign control classes and control groupings time-dependently to products that have not yet been classified for legal control. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 46 PUBLIC

47 Reclassify Products with Legal Control You can re-assign another control class or control grouping time-dependently classified for legal control. to products that have already been Manage Control Classes You can manage control classes to classify products for legal control later. You can add a description to a control class and specify its validity. You can manage control groupings to classify products for legal control later. Manage Control Groupings Numbers Manage Customs Tariff Numbers that you require for your Intra­ Tariff You can manage the Customs stat declarations. Classify Products - Customs Num­ Number has yet been as­ You can find products to which no Customs Tariff Tariff bers signed, and assign a Customs Tariff Number for a specific period to these products. Reclassify Products - Customs Tariff Num­ Number has been assigned, You can find products to which a Customs Tariff bers and assign a new Customs Number for a specific period to these prod­ Tariff ucts. You can activate data from external data providers. Manage Content from Data Provider Schedule Content Request to Data Pro­ You can schedule regular requests to your external data providers to receive vider -Commodity Codes updated or new versions. 2.5.5.1.2 International Trade Compliance Business Background You use International Trade Compliance to manage licenses and trade compliance documents. Trade compliance checks are based on the following document types: ● Sales Order ● Outbound Delivery ● Purchase Order SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 47

48 Key Features The following table explains the key features available: Use Key Feature You can manage Licensees to comply with bans and restrictions against spe­ Manage Licenses cific product /product groups for authorities. Manage Documents with Trade Compli­ You can display the legal control status of documents and confirm or release ance Embargo blocks. You can resolve legal control blocks of documents, if they are missing classifi- Resolve Blocked Documents with Trade Compliance cation and /or Licenses. Managing Countries under Embargo You can manage countries for which there is an embargo situation. Manage Rules for Legal Control You can manage legal control rules to determine Blacklisting, Whitelisting, or License terms in a specific order. You can define these rules yourself to con­ sider their specific specific legal requirements requirements or Intrastat 2.5.5.1.3 Business Background You use Intrastat declarations to record goods movements that cross national borders between member states of the European Union. In Italy, services must be declared in addition. Key Features The following table explains the key features available: Key Feature Use Manage Intrastat declarations You can record the necessary statistics data for a month in Intrastat declara­ tions for the following types of shipments: ● Receipts to your company from other member states of the European Un­ ion ● Dispatches from your company to other member states of the European Union SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 48 PUBLIC

49 Key Feature Use The statistics authority of your country requires that you, as a company, pro­ Manage providers of information vide Intrastat-relevant data to the authority in the form of Intrastat declara­ tions. You need to record the provider-of-information data of your company. In addi­ tion to general address data, the data for the provider of information includes data to identify the company for the authorities. Select dispatches and customer returns You can select dispatches and customer returns based on billing documents to create data for Intrastat declarations. for Intrastat declarations Select receipts and returns to supplier for You can select receipts and returns to supplier based on purchase orders and intercompany billing documents to create data for Intrastat declarations. Intrastat declarations You can create Intrastat declarations for Countries the following countries: SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 49

50 ● Austria Belgium ● ● Bulgaria Croatia ● ● Czechia ● Denmark ● Estonia ● Finland ● France ● Germany Greece ● ● Hungary Ireland ● ● Italy ● Latvia ● Lithuania ● Luxembourg Netherlands ● Poland ● ● Portugal ● Slovakia ● Slovenia ● Spain ● Sweden ● Romania ● United Kingdom 2.5.5.1.4 Integration with SAP Global Trade Services Business Background SAP S/4HANA supports the integration with SAP Global Trade Services to offer additional processes for your international supply chain. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 50

51 2.5.5.1.5 Integration with SAP Watch List Screening Business Background SAP S/4HANA Cloud supports the integration with SAP Watch List Screening (needs to be licensed separately). With the integration, you can screen names and addresses for several documents (e.g. sales orders, outbound deliveries and purchase orders). Key Features The following table explains the key features available: Use Key Feature Schedule Postprocessing with Watch List You can schedule the postprocessing of Watch List Screening relevant docu­ Screening ments. 2.6 Human Resources 2.6.1 Core HR and Time Recording 2.6.1.1 Organizational Management Business Background Organizational Management allows you to build, maintain, and reorganize organizational structures and requirements for qualifications of the workforce. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 51

52 Key Features The following table explains the key features available: Use Key Feature Integration of Business Partner You can use this function to do the business partner assignments. The Organizational Management component includes various user group- spe­ Organizational Plan Mode cific modes and views with which to edit organizational plans: The Organization and Staffing view provides an intuitive interface for cre­ ● ating and editing organizational plans The General Structures view allows you to edit organizational plans with ● defined any structure including object types which, you have yourself (teams, for example). ● The Matrix view is for creating and editing matrix structures. Expert mode allows you to edit the characteristics of various objects and ● Expert Mode their relationships via infotypes ● Expert mode allows you to edit the characteristics of various objects and their relationships via infotypes Working with Screen Areas You use this user interface in the Organization and Staffing or Organization and Staffing view to create, display, and edit organizational plans. (Workflow) You can create, display, or change the organizational structure using the Or­ Editing the Organizational Structure ganization and and the Organization and Staffing (Workflow) views. Staffing You can also assign characteristics to the organizational units. General structures You can use this function to create, edit, and display structures. 2.6.2 Timesheet Business Background Timesheet enables you to record and manage time data effectively. It allows you to enter employee working time and absences. You can also use the timesheet to approve or reject time entries. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 52

53 Key Features The following table explains the key features available: Use Key Feature different tasks (projects or non-project related) Create and update time entries You can log in time spent on using this feature. Time Management for Concurrent Em­ You can use this feature to record time for a chosen personnel assignment even if you are concurrently employed. ployment Approve, Review or Reject Time entries You as a manager can approve, review or reject time entries of your employees. 2.6.3 Integration with External HR System Business Background supports the integration with an external HR system (currently SAP SuccessFactors Employee SAP S/4HANA Central) to enable you to replicate employee, organizational, and cost center data. Key Features When an external HR system (for example, SAP SuccessFactors Employee Central) is integrated and supports SAP S/4HANA enables the external HR system to provide the following key features: the below named features, Key Feature Use Replicating Employee Master Data from You can replicate employee master data from the SAP SuccessFactors Em­ SAP S/4HANA Employee Central to SAP S/4HANA system. ployee Central to Replicating Organizational Data from Em­ You can replicate organizational data from the SAP SuccessFactors Employee ployee Central to Central to SAP S/4HANA system. SAP S/4HANA Replicating Cost Centers from SAP S/ system to SAP Suc­ SAP S/4HANA You can replicate cost center data from the to Employee Central cessFactors Employee Central. 4HANA Contingent Worker Data Integration You can integrate contingent worker data like basic data and contact details from SAP SuccessFactors Employee Central to SAP S/4HANA system. Availability You can now view the work schedule of an employee thus enabling you to ac­ cess the up-to-date time information like your target hours, absences, holi­ days, and so on for time recording. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 53

54 Key Feature Use Search and Display of employees repli­ You can now search for employees and contingent workers replicated via Suc­ cated using Employee Central cessFactors Employee Central. You can also view the Employee’s Basic details, Contact data, Organizational Data and Service Cost level data. 2.7 Manufacturing 2.7.1 Manufacturing Engineering and Process Planning Production BOM Management 2.7.1.1 Business Background During the product engineering phase, you design and develop products. You design new products or product lines to take advantage of current process technology and to improve quality and reliability. Or, you have to change an existing product due to changing market or customer requirements. The result of this product phase is drawings and a list of all the parts required to produce the product. This list is the bill of material. Key Features The following features are available: Key Feature Use Manage bills of material You can create a complete, formally structured list of the components that make up a product or assembly. A bill of material contains essential master data for integrated materials management and production control. In the design department, a new product is designed so that it is suitable for production and for its intended purpose. The result of this product phase is drawings and a list of all the parts required to produce the product. This list is the bill of material which is the basis for the production process (in discrete manufacturing, repeti­ tive manufacturing, and in the process industry). Assign BOMs to plants You can extend the area of validity of a BOM that you defined when you first created it. This means, for example, that you can assign the same BOM to a material in different plants - avoiding data redundancy and multiple data entry. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 54 PUBLIC

55 Key Feature Use You can use a reporting function that determines all components (assemblies and indi­ Monitor multilevel BOM assign­ ment vidual parts) in a product and displays them per low-level code. You can use a reporting function that determines where an object (for example, material) Find BOM for component is used and the quantity that is required. This is necessary, for example, if objects are used in more than one context. You can use this information to: Determine requirements for a specific material. ● ● affected by a change to an individual part. Select all products that are ● Find assemblies that will be delayed if there is a delay in the delivery of a raw mate­ rial, for example. ● Calculate the effect on the cost of a product if the price of a raw material is in­ creased. 2.7.1.2 Master Recipe/Routing Management Business Background During the process engineering phase, you design and continuously improve manufacturing equipment and production facilities. This process enables you to model the capabilities of the manufacturing equipment and to monitor its performance. Key Features The following features are available: Key Features Use You use work centers/resources to represent machines, production lines, employees, Manage the objects and persons or groups of employees, for example. Together with the bills of material and routings/ involved in the production process master recipes, work centers/resources belong to the most important master data in Discrete manufacturing: ● the production planning and control system and are used for scheduling, costing, ca­ Model work centers pacity planning, and for simplifying operation maintenance. Process industry: Model re­ ● sources SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 55

56 Key Features Use You can display and monitor the following: Monitor bills of material Bills of material created by the product engineers ● ● Assignment of bills of material to plants ● Multilevel BOM explosion ● Where an object is used and the quantity that is required (Find BOM for compo­ nent) You use this information as a reference when determining the process steps for pro­ duction in the routing/master recipe. Model the production process A routing/master recipe is a description of the operations/process steps that have to be carried out and the order in which they have to be carried out to produce a material. Discrete manufacturing: ● In addition, a routing/master recipe contains details about the work centers/resources Model routings at which the operations/process steps are carried out and the BOM components that ● Process industry: Model are required. master recipes In discrete manufacturing, the routing is used as the basis for creating production or­ ders and in the process industry, the master recipe is used as the basis for creating process orders. Model production versions The production version determines the production techniques according to which a material is to be manufactured. A material may have several bills of material (BOMs) that determine the components used in its production. The production process can also be described in various rout­ ings/master recipes. You which BOM and which routing/master recipe is to be define used for production in the production version that you assign to a material. Model the exchange of data rele­ You have to provide the shop floor with up-to-date information to keep your production process running as smoothly and vant to production as possible. To this end, you can define in efficiently detail how the production process is to be executed and the data you want to collect during production. You can compare this data with existing data and continually make improvements to the process. Production Planning 2.7.2 2.7.2.1 Material Requirements Planning Business Background Material requirements planning enables you to ensure the availability of materials and perform basic production planning. It is typically performed by the MRP controller who monitors the material shortage situation and solves any issues on time. Another main task is to ensure that sufficient supplies have been planned to cover requirements — whether from sales orders, stock transfer orders, or from production, for SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 56 PUBLIC

57 example. The goal is to ensure that both customer and production demand are available on time and to avoid any disruptions due to missing parts. Key Features The following features are available: Use Key Feature Manage planned independent re­ You can create and change planned independent requirements. quirements You can automate the planning of the procurement process. You can schedule your Perform material requirements MRP runs to be executed automatically on a regular basis. planning The main aim of the planning run is to guarantee material availability to avoid delays in order fulfillment. To do this, the system checks the availability of each material in the planning run and creates purchase requisitions or planned orders if it detects short­ ages. Monitor and manage supply and You can monitor and adjust the current supply and demand situation using a selection demand of tools. You have system support in detecting material shortages, uncovered requirements as well as any issues regarding process orders or production orders. You are provided with further automated support for solving issues to avoid delays or disruptions due to missing items. Tools are also available for communicating with your supplier if solving the issues requires changing a purchase order or stock transport order. The stock/requirements list displays all supply and demand elements for all materials with a net requirement segment or individual segments in the form of a table and ena­ bles you to gain a quick overview of the stock/requirements situation for the material. You can also branch into the editing function for the MRP elements for this material. Planned orders are created automatically during a planning run. However, you can also create new planned orders or change existing ones manually to optimize the replenish­ ment situation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 57

58 Key Feature Use You can convert planned orders into production orders or process orders. You can con­ Convert planned orders vert the planned orders manually or you can create a job to automate the conversion process. Planned orders are internal planning elements that are only used for planning purposes and do not trigger any procurement (with the exception of repetitive manufacturing). The system only triggers procurement once the planned orders are converted into fixed receipt elements: ● Discrete Manufacturing You can convert planned orders for materials that are to be produced in- ○ house to production orders. You can convert your planned orders manually or automatically using an order conversion run. The material components re­ quired for production are contained as items in the planned order and are copied to the production order. The dependent requirements for the compo­ nents are converted into reservations. With the conversion to production or­ ders, the responsibility is passed on from the MRP controller to the produc­ tion supervisor. Process Industry ● ○ In this case, you convert planned orders into process orders. Again, you can convert your planned orders manually or automatically using an order conver­ sion run. The material to be produced, the order quantity, and the order dates are copied from the planned order to the process order and the dependent re­ quirements for the components are converted into reservations. With the con­ version to process orders, the responsibility is passed on from the MRP con­ troller to the production supervisor. Repetitive Manufacturing ● In repetitive manufacturing, planned orders can be used to trigger production. ○ In this case, the planned orders do not have to be converted into production or process orders. You convert planned orders for materials that are to be purchased externally into pur­ chase requisitions. In this case, the responsibility for the orders is passed on to the pur­ chasing department. If you are a production planner responsible for external procure­ ment and if you work with Production Planning and Detailed Scheduling (PP/DS), you can optimize the shipment of the materials to best utilize the capacity of your means of transport (such as a truck). 2.7.3 Manufacturing Execution for Discrete Industries 2.7.3.1 Production Control Business Background This process enables you to manage and regulate the manufacturing process. It is typically performed by the production supervisor who is responsible for dispatching production operations to individual machines if a SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 58 PUBLIC

59 work center/resource has several alternative machines and for assigning shop floor specialists to operations or machines. The production supervisor also decides on measures to mitigate machine breakdowns or missing components, for example. Key Features The following features are available: Key Feature Use Monitoring and adjusting the production You can change production orders or process orders, perform scheduling, and worklist check component availability. You have to release the production/process order before it can be processed. Releasing production orders/process or­ You can use the time period between creating and releasing an order, for ex­ ders ample, to carry out company checks and preparations. You can instruct the system to perform a component availability check at order release. You can release the production/process order at header level releasing all op­ erations. Or, you can release single operations. You can also perform a mass release. Furthermore, you can schedule an order release run that instructs the system to release all your production/process orders periodically. Once the orders are released, you can execute print shop floor confirmations, papers, and execute goods movements, for example. Monitoring production execution You have various options for monitoring production progress. ● Order Progress Report. This report shows you which documents, MRP elements, stocks, and de­ liveries exist for products and their components that have been ordered by a customer. The order progress report gives you a quick overview of the status of production and procurement, statements about the adher­ ence to delivery dates or delays and this information can be displayed for more than one sales order or a WBS element. From the report, you can navigate to the individual procurement elements, the stock/requirements list, or the stock overview, for example. ● Order Information System This report provides you with reporting functions for production orders, planned orders, and process orders. You can view all the orders in the sys­ tem, including the orders with deletion or deletion indicators. For flags production and process orders, you can display the order headers, items, documented goods movements, operations, components, the production list, and confirmations, for example. From the report, you also have vari­ ous navigation options. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 59

60 Key Feature Use To complete the production process, you can set the status of the production/ Executing production completion process order to technically complete and you can complete the order settle­ ment. When an order is settled, the actual costs incurred for the order are set­ tled to one or more receiver cost-objects (for example, to the account for the material produced or to a sales order). Technical completion means ending a production order from a logistical view­ point. The following actions are executed for orders with this status: The order is no longer relevant for MRP ● ● Reservations are deleted ● Capacity requirements are deleted ● Purchase requisitions for external operations or non-stock materials are deleted ● The order and its operations are set to Technically Completed An order with this status can no longer be changed. You can, however, still make postings for the order such as a material withdrawal or a confirmation. After closing the order, no further updates are possible. Model the exchange of data relevant to with up-to-date information to keep your You have to provide the shop floor production production process running as smoothly and as possible. To this efficiently define end, you can in detail how the production process is to be executed and the data you want to collect during production. You can compare this data with existing data and continually make improvements to the process. 2.7.3.2 Production Execution Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: ● Material staging before production starts. ● Reporting goods withdrawals. ● Processing time tickets for a production order or a process order. ● Entering the goods receipt information for the order on completion of the product. ● Executing planned manual production steps. ● Documenting and logging production information. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 60 PUBLIC

61 Key Features The following features are available: Use Key Feature You can display the released production/process orders. This means that you Monitoring released production orders/ process orders have access to all the information required to produce the product including dates, times, and quantities, for example. You can use the picking function to determine which components have not yet Picking been issued from stock for an order and then you can perform the goods is­ sue. production You can confirm Confirming the production progress for production and process orders. A confirmation documents the processing status of orders and triggers the fol­ lowing business operations, for example: ● Updates order data (quantities, activities, dates, status, for example) ● material components Backflushes ● Posts goods receipts ● Updates costs You can cancel or partially cancel confirmations. You can reprocess goods movements. Exchange of data relevant to production Depending on the production process, various manual steps have to be proc­ essed during production. You can display manual production steps and exe­ cute them. Such production steps include: Instructions on how to carry out production steps or guidelines, such as ● rules for handling hazardous materials or substances ● Recording of actual process data ● Reporting of entered and calculated values ● Performing calculations ● Creating comments Recording and logging of production infor­ You can document or log production information which requires a form that excludes manipulation. This is particularly relevant for regulated industries. mation 2.7.3.3 Repetitive Manufacturing Business Background You can use Repetitive Manufacturing for planning and controlling your production in repetitive manufacturing and flow manufacturing environments. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 61

62 In repetitive manufacturing, you can plan and monitor the material flow in a much higher level of detail than flow that at which you collect and analyze costs. You use planned orders to model, plan, and trigger material and product cost collectors to collect the costs. Planned orders are simple and easy to manage with low overhead which you can use to model small increments of the production quantity. The product cost collectors collect the costs of the complete quantity produced during an accounting period. All deviations are aggregated. flow and costs on the On the other hand, in discrete manufacturing, you plan and manage both the material same level of detail in the production order, for example. Therefore, if you want to collect scrap and other deviations in detail, you are recommended to use discrete manufacturing. You can use repetitive manufacturing in the following scenarios: ● Make-to-stock production Production is controlled without a direct reference to the sales order. Run schedule quantities determine the dates and quantities. Run schedule quantities are planned orders of the type PE that do not have to be released and that you do not have to convert into production or process orders to be able to carry out production. The requirements are generated by demand management, for example. Sales order quantities are delivered from stock and consume the planned independent requirement quantities in demand management, according to the planning strategy you select. A product cost collector is used to collect actual data and to settle costs. ● Make-to-order production The system creates one or several planned orders which directly reference the sales order item. The material is then manufactured on the basis of these planned orders. That is, production is triggered by the receipt of the sales orders. For component materials that are relevant to repetitive manufacturing, you use the product cost collector of the component to collect costs. On finished item level, you either use valuated or non-valuated material: Costs are collected by the sales order if you use non-valuated material and by the product cost collector if the material is valuated. The business process includes analysis, material requirements planning, and the evaluation of the planning results. You can carry out extensive planning steps such as the MRP run in the background or manually. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 62

63 Key Features The following features are available: Use Key Features Planning table Your main planning tool in repetitive manufacturing is the planning table. It is an opera­ tive planning tool that you can use to plan the production quantities. In the planning defined run, the system assigns the run schedule quantities to the correct line as in the production version. In the planning table, you can change the assignment of run sched­ ule quantities to production lines/versions manually. In this type of manufacturing, you plan and control your production using the planning table based on periods and quantities. You can check production quantities, monitor the available capacity of the production lines and check up on the availability situation of the products produced on each line. In the planning table, you can enter and change production quantities and you can assign and reassign quantities to alternative produc­ tion lines. The planning table allows you to schedule planned orders to the corresponding produc­ tion lines as follows: You can change the planned orders/run schedule quantities created in MRP man­ ● ually (such as quantity/date changes), or you can create additional orders. ● You can assign unassigned production quantities to the production lines or reas­ sign production quantities to different production lines. ● You have the option of using production or process orders to perform planning tasks. A prerequisite for this is that you have created a valid production version for the material. ● Because planning is often carried out on the basis of shifts, the planning table also has functions for distributing production quantities across shifts. Staging materials using the pull You can use the pull list to control the in-house flow of material for supplying produc­ tion with materials. A prerequisite for this is that the components required for produc­ list tion are already available (either produced in-house or procured externally) and must only be brought from their current storage location to the production storage location. The pull list checks the stock situation at the production storage location and calcu­ lates the quantities of missing parts. You can create replenishment elements for these missing parts. You can stage the components by direct stock transfer or stock transfer reservation. You can also trigger replenishment by setting a kanban to empty or by cre­ ating transfer requirements in Warehouse Management. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 63

64 Key Features Use production for repeti­ Confirming Separate tools are available for recording work progress in a repetitive manufacturing tive manufacturing environment. In accordance with the requirements of this type of production, the con­ process is very lean. For example, you have the option of deferring the entry firmation of all actual data from production until the receipt of the part is recorded by a finished In the case of make-to-stock repetitive manufacturing, you goods receipt confirmation. at defined operations to confirmation also have the option of posting a reporting point semifinished record the stock of products in production, for example. You can couple the following processes in a goods receipt confirmation: Posting of goods receipts for products ● finished ● Posting of goods issues for the components (backflushing) Reduction of planned orders ● Posting of production costs to the product cost collector ● ● Updating of statistics for analytical purposes You can also cancel incorrect confirmations and reprocess goods movements. Analyze the product cost collector You can analyze the costs per period. This means that you collect costs in a cost object over a long period of time and can analyze the credits and debits for certain periods. Perform evaluations/reporting You can create the following evaluations: Reporting point overview ● You are provided with a statistical overview of all the reporting points of a produc­ tion version. ● Backflushing documents Documents are saved in the system for all You can list and print these backflushes. documents according to various selection criteria. ● Updating planned quantities ● Call cost reports in Cost Object Controlling 2.7.3.4 Kanban Business Background flow based on physical material stock in Kanban is a procedure for controlling production and material production. Material that is required on a regular basis is kept available in small quantities in production. With kanban, the replenishment or production of a material is only triggered when a certain quantity of the material has been consumed. This replenishment is triggered directly by production using previously maintained master data. Entries in the system are reduced to a minimum; to the input of a bar code, for example. All other actions are carried out automatically in the background. With kanban, the production process is designed to control itself and the manual posting effort is kept to a minimum. Thus, you can achieve shorter lead times and reductions in stock levels. With kanban, for example, the signal for material replenishment is triggered by the work center that requires the material (the consumer or the demand source). This signal can simply be a card that the demand sources SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 64 PUBLIC

65 sends to the work center that produces the material (producer or supply source). This card describes the required material, quantity, and information on where it is to be delivered. It is these cards, which are known as kanbans in Japanese, that have given this type of production its name. On receipt of the material, the demand source can post the goods receipt simply by entering or scanning a bar code. Compared to the basic kanban process that only uses boxes and cards to trigger material replenishment, this automated solution offers the following advantages: ● Goods movements are posted automatically meaning that inventory information is always up to date. ● Your supply sources are informed faster about the requirements situation at the demand source. ● The system collects data about the kanban cycle times that you can use to improve the process. Key Features The following features are available: Key Feature Use Control cycle maintenance You define the relationship between the demand source (such as a production line in production) and the supply source (such as an external supplier or warehouse) in the control cycle. The control cycle contains the following control data for kanban produc­ tion: Kanban circulation, that is, the number of kanbans that circulate between the sup­ ● ply source and demand source and the material quantity per kanban. ● Basic data required for the automatic kanban calculation in the control cycle, if necessary. ● Replenishment strategy such as in-house production, external source, or stock transfer. ● Printing kanbans, if necessary. ● Delivery address, if necessary. ● Process control (such as the indicator for separate goods receipt, status sequence key, indicator for the logic to trigger the replenishment for one-card kanban, pack­ ing instructions, and production call profiles). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 65

66 Key Feature Use (Confirma- Kanban status change You can control the production process by setting your kanbans to the appropriate sta­ tion) tus. You mainly use the statuses empty and full which are mandatory statuses. When a material in a kanban has been used up, you set the kanban status to empty which auto­ matically triggers the replenishment process. The source of supply (producer, supplier) receives the signal to up the kanban. When you receive the full kanban back at the fill demand source (consumer), you set the kanban status to full which triggers the goods receipt posting for the material. efficiently using these two statuses. You You can work in a kanban environment quite can perform the status changes using bar codes and bar code scanners. When you scan the bar code, the required data is sent from the demand source to the supply source. If you require additional information for special cases, the following (optional) statuses are available: Waiting: Indicates that although the material has been consumed, the supply ● source is not yet to replenish it. You also use this status if a new kanban has been created. ● In process: Indicates that the requested material is currently being produced by the supply source. ● In transit: Indicates that the material is currently on its way from the supply source to the demand source. ● In use: Indicates that the material is currently being withdrawn by the demand source. ● Error: Assigned by the system. Indicates that a desired status could not be set suc­ cessfully. You only use the four additional statuses if you work with the kanban board. Here, first you can use them to record work progress. Monitoring with the kanban board You can use the kanban board to monitor production progress. Irrespective of whether you are the supply source or the demand source, the kanban board provides you with a detailed overview of the kanbans in circulation. You can also use the kanban board to change the status of the kanbans. The following additional information is available, for example: ● You can display the control cycle, material, plant, actual quantity, status, date of the last status change and so on by double-clicking the individual kanbans. You can display the control cycle data by double-clicking the appropriate row on ● the kanban board. ● You can navigate to the stock/requirements list, the stock overview, or the material master for a control cycle. ● You can trigger the kanban correction facility for a control cycle. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 66 PUBLIC

67 Key Feature Use You have various options for controlling cost accounting for kanban with in-house pro­ Cost accounting for Kanban duction depending on which replenishment elements are used. If you use: ● Run schedule quantities: The costs are collected in a product cost collector and can be settled periodically in product costing. ● Manual kanban: The costs are also collected in a product cost collector. Production orders or process orders: The costs are either collected in a product ● cost collector if you want to analyze the costs by periods rather than by lot, or they are settled to the individual production orders/process orders. Updates to the actual costs at the product cost collector can be triggered by logistical transactions (such as goods issues or for production/process orders confirmations) and run schedule headers. For example, goods issues for a production order or report­ backflushes in repetitive manufacturing debit the product cost collector with ing point actual costs. Goods receipts credit the product cost collector. Alternatively, the actual costs at the product cost collector can be updated directly through G/L account post­ ings in Financial Accounting (FI), for example. You can access reports and view the actual costs for the product cost collector. During the period-end closing, you can: ● Charge the product cost collector by means of template allocation. ● Revaluate the activities at actual prices. ● Calculate overhead for the product cost collector. Calculate the value of your products (work in process) for the period. ● unfinished Calculate the variances of the period. ● Settle the work in process and variances to other application components. ● 2.7.3.5 JIT Outbound Processing Business Background Just in Time (JIT) Outbound Processing enables you to replenish direct materials required for manufacturing in the exact quantity and at exactly the time required. You can determine that the required materials are provided different location, for example. Or, you can specify that the required materials are provided by internally from a an external supplier. If you opt for material provision from an external supplier, you can use scheduling agreements with delivery schedules for procurement and production planning processes. JIT calls are used as a replenishment request and the fulfillment is done with reference to them. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 67

68 Key Features The following features are available: Use Key Feature specific material, Summarized JIT call processing You can use this feature for processing JIT calls that request a quantity, to be delivered at a time, to a specific specific location specific in a within your plant. The source of replenishment could either be another internal location resulting in a stock transfer, or an external supplier from whom you purchase the material. In the case of an external replenishment, you use purchasing scheduling agree­ ments to support the supply planning and procurement processes involved. You define use control cycles that enable and the replenishment process. You start the process by creating the JIT call with reference to a control cycle. Depending on the source of replenishment and how you have the process, a set configured fulfilment is completed. When re­ of sequenced actions is executed until the questing the material from an external supplier, a delivery is expected as the basis for the goods receipt and the supplier invoice, or the credit memo proc­ essing. In the case of an internal replenishment, fulfilment is completed when you post the goods receipt which results in a stock transfer. You can monitor the status of the JIT call to track the progress. Supply-to-production planning You can use this feature for planning, triggering, and monitoring replenishment using summarized JIT calls. For each control cycle used for supply-to-produc­ tion planning, the system calculates replenishment requirements taking ac­ count of: ● Open JIT calls Available stock at the production location ● A defined minimum stock level ● ● Component requirements from production planning Forwarded sequenced JIT call processing You can use this feature to forward a group of components of an inbound se­ quenced JIT call received from your customer to an external supplier who will assemble and deliver the component group. You use control cycles to enable and define the replenishment process. You can send a delivery confirmation to your supplier which is used for the invoicing process. 2.7.3.6 JIT Inbound Processing Business Background You can use this component if you, as a supplier, receive and process just-in-time (JIT) calls. Just-in-Time Inbound Processing enables you to produce and deliver materials in the exact quantity, for the exact time, and SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 68 PUBLIC

69 even in the sequence defined by your customer. You use scheduling agreements with delivery schedules for sales and production planning processes. The JIT inbound process starts with the receipt of JIT calls from your customer. Depending on your business of this request can trigger various different activities. You can monitor the scenario and material, the fulfillment fulfillment progress to ensure successful completion. In sequenced JIT processing, your customer also specifies the sequence in which you are to deliver the products as well as production-related information. Your customer may send an initial call with subsequent updates later according to planning and production execution progress. You can use the initial call for planning or even production purposes. The last call update from your customer provides the sequence and final expected date and time for grouping, packing, and delivery. Your customer sends this information as soon as the production sequence is frozen or production has started meaning that no further changes are expected. This is particularly important when the material requested is for each production lot depending on different variant configuration. In the case of more complex products with a high number of variants, the sequenced JIT call contains multiple call components instead of a single material. This information is also reflected in the delivery and is used as the basis for the billing or self-billing process. You have to take account of the sequence information in the JIT call when grouping, packing, and loading the requested materials for shipping. Key Features The following features are available: Key Feature Use Summarized JIT call processing You can process JIT calls from customers that request a specific material in a specific quantity to be delivered at a specific time to a specific location. The process starts with the receipt of the JIT call. Depending on how you have con­ your process, you execute a set of sequenced actions until the cus­ figured tomer requirement has been fulfilled. You can use the repetitive manufacturing solution to produce the JIT call material. You create a delivery document with reference to the JIT call for shipping the goods. This document is used as the basis for the goods issue posting and the billing process. You can monitor the status of the JIT call to track progress. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 69

70 Key Feature Use You can process JIT calls from customers that request a specific Sequenced JIT call processing material in a specific time to a quantity to be delivered at a location in a specific specific defined sequence. The process starts with the receipt of the JIT call. You can still receive further status updates for the JIT call from your customer provid­ ing additional or data. The initial, external status of the JIT call may allow a final pre-assembly whereas further external status updates allow for assembly final configured your process and the ex­ and shipping. Depending on how you have ternal status of the JIT call, you execute a set of sequenced actions until the customer requirement has been fulfilled. You can use the repetitive manufac­ turing solution to produce the JIT call material. You create a delivery document with reference to the JIT call for shipping the goods. This document is used as the basis for the goods issue posting and the billing process. Alternatively, the billing process can also be based on a delivery sent by the cus­ confirmation tomer. You can monitor the status of the JIT call to track progress. 2.7.4 Manufacturing Execution for Process Industries Production Control 2.7.4.1 Business Background This process enables you to manage and regulate the manufacturing process. It is typically performed by the production supervisor who is responsible for dispatching production operations to individual machines if a work center/resource has several alternative machines and for assigning shop floor specialists to operations or machines. The production supervisor also decides on measures to mitigate machine breakdowns or missing components, for example. Key Features The following features are available: Key Feature Use Monitoring and adjusting the production You can change production orders or process orders, perform scheduling, and worklist check component availability. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 70 PUBLIC

71 Key Feature Use Releasing production orders/process or­ You have to release the production/process order before it can be processed. ders You can use the time period between creating and releasing an order, for ex­ ample, to carry out company checks and preparations. You can instruct the system to perform a component availability check at order release. You can release the production/process order at header level releasing all op­ erations. Or, you can release single operations. You can also perform a mass release. Furthermore, you can schedule an order release run that instructs the system to release all your production/process orders periodically. Once the orders are released, you can execute print shop floor confirmations, papers, and execute goods movements, for example. Monitoring production execution You have various options for monitoring production progress. ● Order Progress Report. This report shows you which documents, MRP elements, stocks, and de­ liveries exist for products and their components that have been ordered by a customer. The order progress report gives you a quick overview of the status of production and procurement, statements about the adher­ ence to delivery dates or delays and this information can be displayed for more than one sales order or a WBS element. From the report, you can navigate to the individual procurement elements, the stock/requirements list, or the stock overview, for example. ● Order Information System This report provides you with reporting functions for production orders, planned orders, and process orders. You can view all the orders in the sys­ tem, including the orders with deletion flags or deletion indicators. For production and process orders, you can display the order headers, items, documented goods movements, operations, components, the production list, and confirmations, for example. From the report, you also have vari­ ous navigation options. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 71

72 Key Feature Use To complete the production process, you can set the status of the production/ Executing production completion process order to technically complete and you can complete the order settle­ ment. When an order is settled, the actual costs incurred for the order are set­ tled to one or more receiver cost-objects (for example, to the account for the material produced or to a sales order). Technical completion means ending a production order from a logistical view­ point. The following actions are executed for orders with this status: The order is no longer relevant for MRP ● ● Reservations are deleted ● Capacity requirements are deleted ● Purchase requisitions for external operations or non-stock materials are deleted ● The order and its operations are set to Technically Completed An order with this status can no longer be changed. You can, however, still make postings for the order such as a material withdrawal or a confirmation. After closing the order, no further updates are possible. Model the exchange of data relevant to with up-to-date information to keep your You have to provide the shop floor production production process running as smoothly and as possible. To this efficiently define end, you can in detail how the production process is to be executed and the data you want to collect during production. You can compare this data with existing data and continually make improvements to the process. 2.7.4.2 Production Execution Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: ● Material staging before production starts. ● Reporting goods withdrawals. ● Processing time tickets for a production order or a process order. ● Entering the goods receipt information for the order on completion of the product. ● Executing planned manual production steps. ● Documenting and logging production information. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 72 PUBLIC

73 Key Features The following features are available: Use Key Feature You can display the released production/process orders. This means that you Monitoring released production orders/ process orders have access to all the information required to produce the product including dates, times, and quantities, for example. You can use the picking function to determine which components have not yet Picking been issued from stock for an order and then you can perform the goods is­ sue. production You can confirm Confirming the production progress for production and process orders. A confirmation documents the processing status of orders and triggers the fol­ lowing business operations, for example: ● Updates order data (quantities, activities, dates, status, for example) ● material components Backflushes ● Posts goods receipts ● Updates costs You can cancel or partially cancel confirmations. You can reprocess goods movements. Exchange of data relevant to production Depending on the production process, various manual steps have to be proc­ essed during production. You can display manual production steps and exe­ cute them. Such production steps include: Instructions on how to carry out production steps or guidelines, such as ● rules for handling hazardous materials or substances ● Recording of actual process data ● Reporting of entered and calculated values ● Performing calculations ● Creating comments Recording and logging of production infor­ You can document or log production information which requires a form that excludes manipulation. This is particularly relevant for regulated industries. mation 2.7.5 Outsourced Manufacturing 2.7.5.1 Basic Subcontracting Business Background Basic subcontracting provides you with the means to instruct a supplier or subcontractor to process a material for which you provide the components. When procuring materials externally, you use subcontracting purchase SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 73

74 orders or schedule lines to alleviate capacity bottlenecks. Subcontracting purchase orders/schedule lines instruct your subcontractor to make a certain material using the components that you provide and finished potentially using additional components provided by the subcontractor. Key Features The following features are available for the external procurement of materials: Key Feature Use This features enables you to plan your materials that are produced by a sub­ Planning materials to be made by a sub­ contractor. In the planning run, the system creates subcontracting purchase contractor requisitions or schedule lines for the material which is made by the subcon­ tractor, explodes the BOM of these materials, and creates subcontracting re­ quirements. You may have more than one subcontractor that supplies one material and they may require different components to be provided while they procure the other components themselves. In this case, you have to create several produc­ tion versions that cover the needs of your different subcontractors. The pur­ chasing info record of the subcontractor references the appropriate production version. Planning materials to be provided to sub­ This features enables you to plan the parts to be provided to your subcontrac­ contractor tor. You can create an MRP area for each subcontractor which simplifies the planning process if you have several subcontractors. When planning the component materials with subcontracting MRP areas, the system checks whether the subcontracting requirements can be covered by existing inventory at your subcontractor's or whether you have already sent the parts to be provided to your subcontractor. If current inventory at your sub­ contractor does not cover the subcontracting requirements, the system cre­ ates a stock transfer reservation to transfer the demand from the subcontrac­ tor company to your company. You can then produce or procure the material and send it on to your subcontractor. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 74 PUBLIC

75 Key Feature Use Triggering the provisioning of the materi­ This feature provides you with a comprehensive overview of all relevant infor­ als to be provided to subcontractor (sub­ mation about your subcontracting process. It provides a single entry point for contracting cockpit) all documents related to your subcontracting process providing direct access to the following features: You can choose whether you want to send your components to the sub­ ● contractor using the one-step procedure, or the two-step procedure. You can check directly whether your components are already at the subcon­ tractor's site, or still on the way there. ● You can check which components are currently in the subcontracting stock. When you create a subcontracting order, you can change the shipping ● point for the outbound delivery, or change the batch number. ● For each purchase order item, you can display additional information such as the production order, the number of the external operation, or the oper­ ation text. For each purchase order item, you can create an outbound de­ livery that is displayed in the purchase order history for the corresponding item. You can also process the following documents centrally in the Subcontracting Cockpit: ● Purchase orders ● Purchase requisitions ● Outbound deliveries with open goods issues Reservations ● External deliveries (subcontracting components that are prepared by a ● third party) Key data such as the supplier, material, or plant is displayed for each of these documents. Goods receipt for parts made at subcon­ The goods receipt of the subcontracting purchase order/schedule line triggers tractor updates to inventory, purchasing statistics and so on. In addition, the system backflushes the components that were provided to the subcontractor. 2.7.5.2 Basic External Processing Business Background Basic external processing provides you with the means to instruct a supplier or subcontractor to process individual production steps such as operations or sub-operations. The external processing of production order operations is frequently used for standardized process steps such as galvanizing which you cannot perform in your own factory. In the case of galvanizing, you may have environmental reasons for outsourcing this step to your subcontractor. In this case, it does not matter to the subcontractor which material IDs are produced. The subcontractor is only responsible for processing (galvanizing) a certain quantity of (metal) pieces. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 75

76 Key Features The following features are available for basic external processing: Use Key Feature When you convert a planned order into a production order, the system checks Planning externally processed operations to see whether there are any routing/work center operations that require ex­ ternal processing. You can use external processing if you have individual pro­ duction steps that are operations or sub-operations which are performed out­ side of your company by a supplier. This provides you with an alternative to in- house production if capacity bottlenecks occur. You can use an outline agreement to specify that a certain operation of the pro­ duction order is executed by an external subcontractor on a regular basis. Scheduling externally processed opera­ When you perform scheduling, the system takes account of any external oper­ tions ations. The duration of an external operation is calculated either by using the planned delivery time or using the standard values. The system automatically creates a purchase requisition for the operation or sub-operation that requires external processing. This requisition is automatically updated with any quan­ tity changes made to the production order. You should not convert the purchase requisition into a purchase order until the external processing is actually required. The reason for this is that any quantity changes made in the production order will automatically update the requisi­ tion. Once you have created the purchase order, it is printed and sent to the supplier. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 76 PUBLIC

77 Key Feature Use Triggering the provisioning of the materi­ This feature provides you with a comprehensive overview of all relevant infor­ als to be provided to subcontractor (sub­ mation about your subcontracting process. It provides a single entry point for contracting cockpit) all documents related to your subcontracting process providing direct access to the following features: You can choose whether you want to send your components to the sub­ ● contractor using the one-step procedure, or the two-step procedure. You can check directly whether your components are already at the subcon­ tractor's site, or still on the way there. ● You can check which components are currently in the subcontracting stock. ● When you create a subcontracting order, you can change the shipping point for the outbound delivery, or change the batch number. For each purchase order item, you can display additional information such ● as the production order, the number of the external operation, or the oper­ ation text. For each purchase order item, you can create an outbound de­ livery that is displayed in the purchase order history for the corresponding item. You can also process the following documents centrally in the Subcontracting Cockpit: ● Purchase orders ● Purchase requisitions ● Outbound deliveries with open goods issues ● Reservations External deliveries (subcontracting components that are prepared by a ● third party) Key data such as the supplier, material, or plant is displayed for each of these documents. When data is maintained for an external activity, a cost element is specified. Valuating externally processed operations The cost element determines how the external activity is to be valuated. A de­ cision needs to be made whether an operation or suboperation is processed externally via its control key. The control key determines whether externally processed operations are scheduled on the basis of their standard values or the planned delivery time. This information is needed to settle externally proc­ essed operations and suboperations that have been marked as relevant for costing in their control keys. When the supplier has completed the external processing, the material is ship­ Goods receipt ped back. You receive the externally processed goods back into the warehouse. The supplier service is reflected in the production order by means of an opera­ tion confirmation. The purchase order and the production order both show the quantity received and the system updates the status of the operation accord­ ingly. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 77

78 2.7.6 Quality Management Quality Engineering 2.7.6.1 Business Background Quality engineering helps you to ensure the quality of your products, processes, and services right from the start. During the early stages of product design and development, it is important to have the correct quality tools and to implement appropriate quality-planning strategies in your processes. Key Features The following features are available: Key Feature Use Effects Analyses You can use this feature when planning new products and processes. It enables you to Failure Mode and prevent and avoid defects. You can perform a risk analysis and derive (FMEA) quality-specific actions that ensure high levels of quality. Control plans You use this feature in combination with the Failure Mode and Analysis to per­ Effects form an integrated inspection planning for goods receipt inspections and inspections during production. The control plan describes how products and processes are moni­ tored. It contains tasks that are executed for each phase of the process. Quality-related master data For quality planning purposes, you define specifications and processes on a long-term basis as master records. define quality-related data for generic master data records, for example, mate­ You can rial or supplier. Inspection planning You use the inspection planning functions to define inspection criteria (for example, material to be inspected, how the inspection is to take place, characteristics to be in­ spected, required test equipment, work center, and inspection specifications). 2.7.6.2 Quality Inspection Business Background You can prepare, execute, and monitor different types of quality inspections, for example, in purchasing, production, or sales scenarios. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 78 PUBLIC

79 Key Features The following features are available: Use Key Feature An inspection lot represents the request to perform a quality inspection. Inspection lot creation Inspection execution This feature allows you to record the results of an inspection, for example, for an inspec­ tion lot. Inspection completion Once the inspection results have been recorded, the inspection lot is completed with the usage decision. modification of the in­ define You can Dynamic rules so that the system automatically determines the scope of the next spection scope inspection dependent on the latest inspection results. You can vary the sample size of predefined the next inspection lot in stages between a inspection scope and a skip. Defects recording You can record individual defect items. You use this feature for processing and managing samples. Sample management Sample management allows you to: ● Flexibly plan the drawing of samples ● Identify samples ● Record inspection results for samples ● Manage the sample data You can plan and perform calibration inspections of test equipment. Based on the in­ Calibration inspections spection results, you can verify the accuracy and suitability of test equipment for an in­ spection. You use this feature to track and examine how Stability studies environmental conditions (for different example, temperature, brightness, moisture) affect a compound, a material, or a batch over a specified period of time. Quality You can manage quality certificates in inbound and outbound processes. certificates 2.7.6.3 Quality Improvement Business Background Quality improvement provides tools that are the basis for improving your processes and products. You can gain better insights into your quality-related data and thereby reach your corporate quality goals. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 79

80 Key Features The following features are available: Use Key Feature notifications and root This feature allows you to record and process quality problems and complaints and to Quality cause analysis execute the problem-solving process including root cause analysis. You can trigger actions in order to solve a problem and to prevent the problem from re­ Corrective and preventive actions curring. Nonconformance management This feature enables you to record and process defects. In order to correct the defects and to prevent them from recurring, you can trigger and process tasks. Quality analytics An integrated set of quality data allows you to quickly identify systematic errors, ana­ lyze problems, eliminate root causes, and respond faster to unforeseen events and de­ viations. You can perform quality evaluations based on inspection results or based on issue data. Audit management An audit is a systematic examination for determining, evaluating, and documenting the extent to which an object fulfills predefined criteria. Audit management supports you in all phases of auditing. 2.7.7 Maintenance, Repair, and Overhaul 2.7.7.1 Maintenance, Repair, and Overhaul (MRO) Business Background Maintenance, Repair, and Overhaul (MRO) supports processes for hardware maintenance, component repair, and line maintenance for aftermarket services, post-delivery returns, and any form of repairs during the product life cycle. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 80

81 Key Features The following table explains the key features available: Use Key Feature The MRO extension of inventory management is capable of procuring and then Inventory management stocking a part using its original manufacturer's part number in the parts plan­ ning and consumption. different The parts interchangeability feature allows the stocking of manufac­ turers' parts that meet Form-Fit-Function rules, allowing MRP to calculate part demand and view stock across manufacturers' part numbers for part availabil­ ity. It also has the capability to stock and repair customer-owned parts that are segregated by customer numbers. Provisioning, Procurement, and Sales This special procurement extension is primarily used by the airline industry, which uses the ATA Spec 2000 exchange to procure spare parts. Other indus­ tries would use the standard procurement solution. The Initial Provisioning component supports you in the selection and initial pro­ curement of spares for a new fleet of aircraft, vehicles, equipment or other end products before you have established regular operational and maintenance processes. This solution also generates a detailed attachment for a resource-related debit memo request (DMR) or invoice. This attachment contains structured details of the resources you are billing to the customer, with the required level of detail for those industries that require such information; for example, the airline in­ dustry and the aerospace and defense contracting industry. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 81

82 Key Feature Use This includes: Maintenance Planning Spare Parts Stock Calculation: This application determines an initial stock ● level for the part type required to supply a serviceable part, with probabil­ ity of a specific percentage if the part in question fails. The probability is represented by the service level. Work Packaging and Sequencing (WPS): This application summarizes ● processes and activities for planning and performing large maintenance tasks. ● Mass Maintenance of Maintenance Plans: This function allows you to change several maintenance plans in the same way at the same time. ● Maintenance Program Definition: This component provides a workbench that you can use to transform complex maintenance requirements into maintenance plans within the maintenance execution system. ● Maintenance and Service Planning (MSP): You use MSP to carry out the following: ○ Strategic planning over a long-term horizon, such as 5-10 years, al­ lowing you to determine the resources necessary to meet future maintenance demands Tactical planning over a mid-term horizon, such as 1-18 months, to ○ ensure that your maintenance objects remain serviceable, optimize utilization of your maintenance objects, and balance the resource load in your service areas SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 82

83 Key Feature Use In maintenance and service processing, the primary objective is to ensure the Maintenance and Service Processing (MSP) hardware availability of technical objects. The process includes activities for tracking individual components during their entire life cycle, whether installed in the hardware, stored in a warehouse, or serviced in a workshop. Components are exchanged if they cannot be repaired in time, have reached their life limits, or are listed in service bulletin directives for replacement. In the case of rotables, an unserviceable component is placed in a warehouse and re­ placed by a new or serviceable component. In urgent cases (for example, if a component cannot be transferred to a line station in time), a component is taken from other equipment that is currently not in operation. Sometimes it is possible to swap identical components within an equipment number, instead of repairing the defective component. MSP features include: Component Maintenance Cockpit (CMC) ● ● Subcontracting for MRO Processes Plant Maintenance and Customer Services (PM/CS) Orders in the MRO ● Process ● Assignment of PM/CS Orders to Projects ● Sharing of Spare Parts ● Configuration Control Logbook ● ● Integration of Service Processing with Warranty Claims Maintenance Operations 2.7.8 2.7.8.1 Plant Maintenance Master Data Business Background By mapping your operational structures to technical objects, you can efficiently manage and evaluate your technical assets and maintenance objects and monitor the costs involved. Structuring the existing technical systems on the basis of technical objects reduces the time required for managing the technical objects and allows a faster evaluation of maintenance data. A functional location represents an area within a system or plant where an object can be installed. Functional locations are created in hierarchical structures and thus allow a spatial, functional, or process-oriented structuring of your systems. Individual maintenance objects are represented by pieces of equipment that are installed in functional locations. The usage times of a piece of equipment at a functional location are documented over the course of time. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 83

84 Key Features The following features support you with this process: Use Key Feature The functional location is an organizational unit that structures the maintenance objects Structuring Technical Objects Hierarchically and Horizontally of a company according to functional or process-related criteria. When creating a func­ tional location and define where a defining its place in the hierarchical structure you different piece of equipment can be installed. Pieces of equipment can be installed in functional locations or in other pieces of equipment. As functional locations represent your company's operational structures, they are usu­ ally part of a hierarchical structure and you can summarize costs or other maintenance data for individual hierarchy levels. Based on the structure indicator, functional locations are automatically arranged in the structure when you create them. You can also create hierarchical equipment structures if you want to divide large pieces of equipment into smaller units. If you want to structure your technical systems horizontally, you can create object net­ works. Object networks are represented by links between various pieces of equipment or functional locations. Creating Master Records for Once the structure of the asset is defined, you can create a master record for each func­ tional location and piece of equipment and specify general data, location data, organiza­ Functional Locations and Pieces of Equipment tional data, and structure data as well as edit classification data and characteristic val­ ues, and assign documents. ● You can assign a bill of material (BOM) to the master record of a functional location or piece of equipment. ● classification After having created characteristics and classes, you can assign this information to the master records of equipment and functional locations. If you have to manage a large number of objects, the enables you to easily classification locate your objects and group them together for evaluations. ● You can serialize a piece of equipment by assigning a material number and serial number to it. This makes inventory management possible for the equipment. ● A piece of equipment that is installed in a technical object can store the history of its installation location. The system records a usage period for each installation loca­ tion, enabling you to track the complete installation history. ● You can maintain fleet information, such as data pertaining to the engine and fuel, in the equipment master record. You can represent objects that are not repaired but rather exchanged in case of a break­ down by creating master records for materials and assemblies. Although this does not enable you to document a maintenance history, a material or assembly can also serve as a reference object for a maintenance notification or order. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 84

85 Key Feature Use A maintenance bill of material (BOM) is a complete, formally structured list of the com­ Creating Maintenance Bills of Materials (BOMs) ponents making up a technical object or an assembly. Maintenance BOMs support you when locating malfunctions by providing you with an overview of all components that make up a technical object. From this overview you can easily select the object for which you want to create a malfunction report. Furthermore, maintenance BOMs provide you with an overview of all spare parts used for the maintenance of a specific technical ob­ ject, so they make spares planning considerably easier. A maintenance BOM contains the object numbers of the individual components together with their quantity and unit of measure, and can be assigned to the master record of a technical object or material. Reading Measuring Points and Measuring points and counters are located on technical objects. They help you docu­ Counters and Creating Measure­ ment the condition of a technical object at a particular point in time and support you in performing counter-based or condition-based maintenance. Documenting the condition ment Documents of a particular object is of great importance in cases where detailed records regarding the correct condition have to be kept for legal reasons. This could involve critical values recorded for environmental protection purposes, as well as measurements of emissions and pollution for objects of all types. If you perform counter-based maintenance, mainte­ nance activities are always performed when the counter of the technical object has reached a particular counter reading. In the case of condition-based maintenance, the activities are triggered when the measuring point of a technical object has reached a par­ ticular state. After a measurement has been taken at a measuring point or a counter, the data is stored in a measurement document. Based on that document the system calculates the next planned maintenance date and the call date on which a maintenance order is cre­ ated. Each time you create a new measurement document, the system recalculates the planned date for the next maintenance work. In functional locations and pieces of equipment quickviews appear as separate popups Accessing Context-Sensitive In­ formation when you hover over an object, and provide relevant information about the superior technical object or the installed piece of equipment. preconfigured side panels in a separate screen area In technical objects you can open and display context-sensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. Processing Master Data in the You can use the Information Center to search for functional locations and pieces of equipment, and to call up technical objects from a personal worklist (POWL). Your per­ Information Center sonal worklist contains your favorites and objects that you have recently accessed or changed, and provides you with direct access to the Asset Viewer. You can personalize your worklist to your needs, sort table columns, and set filters. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 85

86 Key Feature Use Visualization of Technical Ob­ With the SAP 3D Visual Enterprise Viewer, you can display graphics of technical objects jects in the Master Data right in the master data. You can display the graphic of the technical object as a thumb­ nail, as a 2D image or a 3D scene. In the 3D scenes, you can use various display func­ tions, for example, you can pull the visualized model apart or rotate it, display a detailed view or a cross-section, as well as display associated parts lists. Viewing Technical Objects in the The Asset Viewer is a display tool that enables simple navigation through complex object relations and flexible Asset Viewer navigation within and between objects. You can also view and navi­ gate the hierarchical structure of the technical object. 2.7.8.2 Maintenance Planning and Scheduling Business Background Maintenance Planning and Scheduling helps you optimize the scope of work and effort required for inspection, maintenance, and planned repairs. Based on legal requirements, manufacturer recommendations, and cost analyses, you determine which preventive maintenance tasks are required, which work centers are needed, and how frequently preventive maintenance tasks have to be processed to avoid breakdown time. Maintenance plans support you in specifying maintenance cycles, scheduling maintenance calls, and determining the expected costs for a specific time period. In maintenance task lists you can describe a sequence of individual maintenance activities which must be performed repeatedly within your company. In addition, you can use 2D and 3D model views to visualize technical objects, spare parts, and instructions as well as to the spare find parts you need for carrying out maintenance tasks quicker and easier. Key Features The following features support you with this process: Key Feature Use Planning Complex Maintenance Maintenance strategies help you plan complex maintenance cycles. Based on legal re­ quirements, manufacturer recommendations, and cost analyses, you use maintenance Cycles with Strategies strategies to determine the sequence of planned maintenance and inspection tasks. Maintenance strategies contain maintenance packages with general scheduling informa­ tion and can therefore be assigned to different maintenance plans. This reduces the time required for creating maintenance plans and allows you to update maintenance schedul­ ing information easily. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 86 PUBLIC

87 Key Feature Use To plan recurrent maintenance work, you can create time-based and performance-based Processing Maintenance Plans maintenance plans, strategy plans, and multiple-counter plans. In time-based mainte­ nance planning, maintenance is performed in specific cycles, for example, every two months or every six months. With performance-based maintenance plans, you can plan regular maintenance based on counter readings maintained for measuring points of pieces of equipment and at functional locations. ● You can create and assign maintenance items that describe which preventive main­ tenance tasks should take place regularly for a technical object or a group of techni­ cal objects. You can assign a task list to the maintenance item to specify the individual work steps that must be executed, the spare parts and tools required for the job, as well as the required completion time. ● You can determine the maintenance cycles as planning data. If the maintenance plan is a strategy plan, the assigned maintenance strategy determines the mainte­ nance cycles. If the maintenance plan is performance-based, you can assign coun­ ters. Furthermore, you can specify other scheduling information, such as shift fac­ tors. ● You can view the scheduled maintenance calls for the maintenance plan. ● You can determine the expected costs for a specific period. The system calculates the costs based on existing calls and uses maintenance packages and cycles as well as assigned task lists as sources for estimating costs. When you schedule the maintenance plan and generate maintenance calls, the system generates maintenance call objects (for example, maintenance orders or maintenance notifications) for the due date, and copies the relevant planning data into the call object. You can display the scheduled calls using the call history. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 87

88 Key Feature Use Maintenance task lists describe a sequence of individual maintenance activities which Planning Recurrent Maintenance Work with Task Lists must be performed repeatedly within a company. They contain important information about the spare parts and tools required for the work steps, the work centers involved, and the time required to perform the work. As a maintenance planner, you can use task lists to standardize these recurring work sequences and to plan inspections, mainte­ nance, and repairs more effectively. Furthermore, task lists enable you to react quickly to changing environmental protection or occupational safety regulations that may affect continuous maintenance. You can create a general task list or a task list for a piece of equipment or func­ specific tional location: You can provide general information, such as the responsible work center and plant, ● the status, and the maintenance strategy. You can also specify a validity date that can be today's date or a date in the past or future. You can specify the required spare parts by assigning material components from ● the bill of material or adding materials that are not in the BOM of the maintenance object. ● You can determine which production resources or tools are required to perform the maintenance tasks, such as measuring and inspection instruments or cranes. You can describe the chronological interdependence between the maintenance ● tasks and create relationships between operations. You can create, display, and assign documents. ● You can perform cost analyses that allow you to see which of the operations descri­ ● bed have created which costs in a maintenance task list. This enables you to control your costs without creating an order. You can use task lists to detail out the individual work steps which must be executed as well as the spare parts and tools required for the job and the required completion time. When you then assign a task list to a maintenance item, maintenance notification, or an order, the system copies this maintenance data from the task list into the respective maintenance document. Performing Inspection Rounds You can plan and perform inspection rounds on different technical objects on a regular basis. The work activities in a round are similar and require the same tools, replacement qualifications while the number of technical objects may vary, depending on parts, and the sequence and the time required. An inspection round can involve functional loca­ tions, pieces of equipment, and measuring points or counters. You can assign an inspec­ tion round to a work center or a person. In an inspection round, you enter technical objects at the operation level of task lists or maintenance orders. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 88 PUBLIC

89 Key Feature Use Accessing Context-Sensitive In­ In maintenance plan and task lists you can open quickviews and side panels to gather formation further information. Quickviews appear as separate popups when you hover over an object, and provide rele­ vant information about the technical objects or the long text. You can open side panels in a separate screen area and display context- preconfigured sensitive charts and data. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. worklist is an individually The Maintenance Plan and Maintenance Item List Processing Maintenance Plans configurable (POWL) that allows you to display and process all maintenance plans and items that and Items from a Personal Ob­ match the selection criteria in the query you have defined. The POWL provides the most ject Worklist important information about maintenance plans and items, enables you to carry out mass data changes and to navigate to the assigned technical objects. You can configure the list layout, sort table columns, and create filters. Selecting Spare Parts and View­ With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical ing Visual Instructions in Task objects, spare parts and instructions. 2D and 3D model views as well as animated scenes Lists make critical maintenance processes such as finding the spare parts you need and car­ rying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a task list you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visual­ ize each and every maintenance step at operation level, for example. The Asset Viewer is a display tool that enables simple navigation through complex object Viewing Relationships between Maintenance Objects in the As­ flexible navigation within and between objects. You can also view and relationships and set Viewer navigate through the hierarchical structure of technical objects. 2.7.8.3 Maintenance Execution Business Background Maintenance Execution allows you to perform planned and unplanned maintenance tasks. Maintenance planners can carry out preliminary costing, work scheduling, material provisioning, and resource planning. They provide maintenance workers with job lists so that they have easy access to all maintenance-related information. This leads to increased efficiency and productivity. Maintenance workers can review the jobs assigned to them and carry out the required maintenance work based on the tasks and operations in the order. While confirming that they have finished the job, they can enter measurement readings, which the system records in measurement documents. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 89

90 Key Features The following features support you with this process: Use Key Feature As a maintenance planner or worker you can report a malfunction or a problem at a Reporting a Malfunction Using notification Notifications technical system by creating a in which you specify the technical object, de­ scribe the malfunction, and enter the activities to be performed. Hierarchical structure lists support you in specifying the technical object and provide you with information about assigned materials and components. You can enter breakdown information, de­ scribe the damages and causes, and enter tasks and activities. By choosing the appro­ priate codes for describing the damages and malfunctions as well as what caused the damage, you ensure that issues can be entered in a standardized way and therefore be evaluated automatically. Having completed your work, you can confirm the time spent on each activity. To add further information, you can upload and attach documents to the notification. You can print out the shop paper of the physically or virtually on the job card notification notification and by doing so, transfer the to the job list. Planning and Executing Mainte­ When a malfunction is detected, the maintenance planner can use a maintenance order nance Work Using Maintenance to detail out the maintenance tasks that are to be performed on the technical object. As a planner, you can create a maintenance order for a specific notification or create the Orders maintenance order directly with or without reference to an existing order. When creating or changing a maintenance order, you can either assign existing task lists and notifica- or create new ones for the order. tions In the maintenance order, you provide all the information needed to plan and execute the maintenance work. That includes start and finish dates, location information, planned finding the rele­ materials and production resources/tools. The system supports you in vant technical object, choosing the required materials and checking their availability, scheduling the job, and determining the costs: ● You can specify the technical objects using a hierarchical list. ● You can choose the required materials using a catalog. When you plan materials for executing order operations, you can display whether the materials planned for the operation are available on time and in sufficient quantity. ● After you have planned an order with all its operations and components, you can use the scheduling function to determine the actual execution dates, the capacity requirement needed to execute the order, and the date on which a particular mate­ rial should be available. ● You can determine costs and run cost simulations. For inspection rounds, you can enter technical objects and assemblies at operation level and assign measuring points as production resources/tools to the technical objects. To add further information, you can upload and attach documents to the order. You can print out the shop paper of the maintenance order physically or virtually on the job card and by doing so, transfer the order to the job list. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 90

91 Key Feature Use Confirming Job lists and confirmation lists support maintenance workers in processing and confirm- Processing and maintenance jobs. Maintenance Jobs ing Job lists provide a list of maintenance jobs to be carried out, as well as crucial infor­ ● mation for each job at a glance, such as the urgency, start and end dates, and as­ job lists so that they reflect how work is or­ signed work center. You can configure ganized in your particular organization and therefore only contain the jobs that are relevant to you. lists contain all the planned maintenance jobs that can be confirmed. ● Confirmation or adjust As a maintenance worker, you can check the planned job data and confirm it. That includes the time you spent on the job and the materials you consumed as well as the activities you performed and the measurement readings. Depending on confirmation how configure different confirmation is done in your company, you can lists. fix confirm As a maintenance worker, if you a problem at a technical system, you can also this unplanned job and enter all the required data after having finished your work. You then can enter the time spent and the required materials, write a long text and, if neces­ sary, create an activity report. The system automatically creates an order and - if an ac­ notification, tivity report exists - a notification to technically com­ sets the order and pleted , stores the time confirmation, and posts a goods issue for the order. You can also confirm unplanned jobs while working in the Asset Viewer. Accessing Context-Sensitive In­ and orders you can open quickviews and side panels to In maintenance notifications formation gather further information. Quickviews appear as separate popups when you hover over an object, and provide rele­ vant information about the assigned notification or order, technical objects, materials, activities, statuses, and long texts. You can open side panels in a separate screen area and display context- preconfigured sensitive charts and data, such as context-sensitive master data or information about vendors and customers. You can enhance the side panels to meet your requirements, thereby specifying which information you want to have displayed in the side panel. is a central point of access to several The Order and Notification Information Center Processing Maintenance Docu­ and orders. You can ac­ ments in the Order and worklists that you can use for processing all your notifications Notifica- tion cess worklists for notifications, orders, and order operations, or use the combined Order Information Center and Notification List . The worklists allow you to display and process all maintenance noti­ fications and orders that match the selection criteria in the query you have You defined. configure can filters. In addition, you have the list layout, sort table columns, and create the option of displaying table columns for monitoring critical dates and costs, whose col­ ors help you detect issues. Furthermore, the lists enable you to change the status of orders and notifications and provide a mass data change function. In the combined Notification List , you Order and can also display the assignments of notifications to orders. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 91

92 Key Feature Use With the SAP 3D Visual Enterprise Viewer, you can use functions to visualize technical Selecting Spare Parts and View­ ing Visual Instructions in Mainte­ objects, spare parts, and instructions. 2D and 3D model views as well as animated scenes make critical maintenance processes such as finding the spare parts you need nance Orders and carrying out maintenance tasks quicker and easier. Users can only display the 2D images and 3D scenes that have been published within their company. While working in a maintenance order you can select spare parts from a 2D or 3D model view and copy them to the spare parts list. You can also watch visual instructions on how to carry out your maintenance tasks. Visual instructions can be animated 3D scenes that visualize each and every maintenance step at operation level, for example. If you have set up the conversion accordingly, you can even convert the visual instructions assigned to a maintenance order to PDF format, use them on job cards, and print them out. Viewing Relationships between The Asset Viewer is a display tool that enables simple navigation through complex object navigation within and between objects. You can also view and relationships and Maintenance Objects in the As­ flexible set Viewer navigate through the hierarchical structure of technical objects. 2.8 R&D / Engineering 2.8.1 Enterprise Portfolio and Project Management 2.8.1.1 Project Financial Control Business Background This capability enables you to define work breakdown structures as a basis for hierarchical project accounting. You can plan costs and budgets and track actual costs that are tightly integrated with core business processes. This provides you with better insight into the project progress and your project financial performance and enables you to avoid cost overruns in time. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 92

93 Key Features The following table explains the key features available: Use Key Feature You use this feature to maintain the standard structures for your project. Maintenance of standard WBS ● A standard WBS is a neutral work breakdown structure that serves as a template for creating operative work breakdown structures. ● A WBS contains the individual elements (WBS elements) that structure the standard project as well as general organizational data. When you cre­ ate a standard WBS a standard project is automatically created. definition Maintenance of standard milestones Standard milestones are used exclusively in the Project System as a source for creating milestones and other standard milestones. You can combine different standard milestones in a milestone group. Maintenance of operative WBS You can create projects, or change and display existing projects and project parts. A project comprises of a project definition, which serves as binding framework for all organizational element created within a project, and WBS ele­ ments, which describe either a certain task or a partial task that can be subdi­ vided further. You can also use networks within projects to represent the flow of a project or of a task within a project. The structure tree displays the project object that you have selected in its hier­ archical context. You can manually change the dependencies and assignments of individual project objects in the structure tree. You have access to both the worklist and templates. Templates are available during processing to create new objects or structures in the current project by adding new project objects, copying existing project structures or copying from standard project structures. For quicker access, you can store frequently used project data (project definitions, and WBS elements) in the worklist. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 93

94 Key Feature Use Based on the grouping strategy for projects, you can choose one of the follow­ Maintenance of Group WBS ing options to organize grouping WBS elements: ● Create a grouping WBS element and include it in the operative WBS struc­ ture for a specific project. You use this if you want tighter cost and part specific project. control and reporting for a ● Create a grouping WBS element and include it in the group WBS structure within its own project. You use this if you share common parts across projects and want to optimize the various collective processes involving these common parts. You can maintain a grouping WBS element in the same way as an operative WBS element. However, a grouping WBS element must not have any compo­ nents or network activities attached to it. A grouping WBS element has an as­ sociated grouping identifier. Data maintenance of a grouping WBS element includes listing of all the opera­ tive WBS elements that can participate in the collective processes controlled by it. Besides the project WBS structure, grouping WBS elements can also have a hierarchical structure similar to the Bill of Material (BOM) structure. In such a structure, all common parts across projects are organized at the lowest grouping WBS element levels and the project-specific parts are organized at the higher level. You can use grouping WBS elements to move cost to breakpoints such as other WBS elements and network activities. This helps to segregate costs of key parts and assemblies from the MRP-driving operative WBS elements and enables the system to automatically provide this data. The costs associated with excess stock, scrap, and loss tied to the MRP-driving operative WBS ele­ ments can be directed to other project WBS elements; this helps to report such costs separately. If you work with complex and long-running projects, it is often necessary to Mass changes to change projects and net­ works make large scale changes to master data or assignments. You can use the mass changes function to change projects and networks. You can also view a log containing all the objects that were changed as a result of this process. Project Versions A project version shows the state of the project at a certain point in time or at a certain status. You can create as many project versions as required. Some fea­ tures include: ● Document (as a history) the state of the project in the past ● Can be used for comparison purposes SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 94 PUBLIC

95 Key Feature Use You use this to bill customers for work done, materials used, and other costs Resource related billing document incurred in customer projects. The basis for creating a billing document is the billing request. During resource-related billing, the system creates dynamic items from the expenditure information (for example, costs for material, utilit­ ies, personnel, trips) which serve as basis to create a billing request. You can edit the items in resource-related billing using the following features: ● You can determine whether the system bills the costs summarized for dy­ namic items in full, later, or does not include them in the billing request at all. You can view the hierarchy sorted and combined per SD items. The prices ● for the items are calculated using SD pricing. You can edit individual or header items from resource-related billing, with the help of SD conditions. This enables the distribution of project revenue accrued in one company code Resource related intercompany billing between other company codes. The distribution of the revenue is dependent on the work performed by employees belonging to those company codes. Through internal billing, the revenue is distributed between the company codes based on cost unit rates or sales prices. Progress Analysis Progress analysis helps you to obtain information on the state of your project and how it is developing. This enables you to take corrective action if the project is varying from its plan. ● You can determine planned and actual project progress values, and to compare the two sets of data. You can determine the relevant values at any time or as part of the period-end closing work that you plan. Project period-end closing Period-end closing is the framework for carrying out period-related commer­ cial transactions. You use it to ensure that all the data belonging to a period is determined and that data is available for enterprise controlling purposes. These transactions are performed at the end of the period after the primary cost postings for the period have been made. Business transactions can be documented as line items and stored in line item Line Item Reports files. Actual Line Items for Cost and Revenues ● flexible analy­ You can use the actual line item report for projects to obtain ses of individual actual cost and revenue postings per various criteria. ● You can change the format of the line item display. ● A number of functions support you in analyzing line items using the line item report display. These include sorting, totaling, and search. filters, Plan Line Items for Cost and Revenue ● In project cost planning, plan line items are only created for certain busi­ ness transactions for which some prerequisites are fulfilled. ● You can change the format of the plan line item display. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 95

96 Key Feature Use You can use the structure overview to flexibly Structure Overview evaluate the structure of your criteria. The system displays the basic structure different project according to of the project in the overview. Monitoring project related procurements You can monitor purchase requisitions, purchase orders, and account assigned to work breakdown structures. Project Logistics Control 2.8.1.2 Business Background This capability enables you project structures consisting of work breakdown structures and network define structure, plan and schedule project activities, control all procurement processes integrated with the core business process, and provide an insight into all logistic related execution aspects of a project. Project Financial Control . For features related to work breakdown structures, refer to Key Features The following table explains the key features available: Key Feature Use Maintaining standard networks ● You use this feature to maintain the standard network structures for your project. The project-neutral network structure can be used as a template when creating other standard networks or operative networks. ● You can link standard networks with standard work breakdown structures in order to create project templates. ● You can copy from a standard network or an operative network to create a Maintaining operative networks new operative network. If you have assigned a standard network to a standard WBS, you can create an operative WBS at the same time that you create an operative network. ● Relationships determine the chronological sequence of activities in a net­ work or a standard network. Cross-network relationships enable you to spread the tasks to be performed over several individual and smaller net­ works thereby creating an overall network. ● You can create milestones in networks, standard networks, work break­ down structures (WBS) and standard work breakdown structures (stand­ ard WBS). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 96 PUBLIC

97 Key Feature Use Scheduling determines the earliest and latest start and finish Network Scheduling dates for carry­ ing out activities in the network and calculates the required capacity require­ ments. A network is always scheduled forwards and backwards. ● Forward scheduling calculates the earliest start and dates of activi­ finish ties (earliest dates) and the scheduled finish date of the network. Backward scheduling calculates the latest start and finish dates of activi­ ● ties (latest dates) and the scheduled start date of the network. In a complex project, the dependencies in a project can make the activities in one network dependent on the completion of activities in another network. You can use the function for the overall network scheduling where the networks are linked through certain relationships. Materials in Project ● This helps you to plan and monitor project material requirements and flow costs, and to regulate and schedule the of materials. ● If you only need a few material components in a project, you can assign these components to the network activities manually. ● The bill of material (BOM) transfer component makes it easier for you to assign material components to network activities and keep this informa­ tion up-to-date. Requirement Grouping Requirements grouping is a planning procedure for projects within material re­ quirements planning (MRP) . Material for a project can be managed in general plant stock or in individual stock. With individual stock you can follow materials that are required for a project with regards to stock levels and MRP separately. If you use valuated or non-valuated project stock, the material components are kept, from an MRP view, in individual stock segments for individual WBS elements. In material re­ quirements grouping, the system groups several stock owners (WBS ele­ ments) together in one grouping WBS element. MRP creates procurement ele­ ments (planned orders or purchase requisitions) for the requirements from the grouped WBS elements. You can group requirements from WBS elements be­ longing to one project or from WBS elements belonging to several projects for the purpose of MRP. This includes: ● Automatic grouping of all WBS elements in a project ● Manually assigning WBS elements to several grouping WBS elements ● different grouping WBS elements according to the Assigning materials to MRP group Delivery from Project You can use this to create deliveries in the Project System and consequently deliver material components that are assigned to a project. This contains infor­ mation that is required for a delivery, for example the sold-to-party or delivery date. Since you can create deliveries in a project independently of a sales order, this data is saved in delivery information in the Project System. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 97

98 Key Feature Use ● document the state of processing for activities and activity Confirmations Confirmations elements in a network, and can be used to forecast progress in the future. ● Precise confirmations are very important for realistic and accurate project planning. Product Development Foundation 2.8.2 Bill of Materials 2.8.2.1 Business Background A bill of material (BOM) is a formally structured list of the components that make up a product. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items. BOMs are used in various situations where a finished product is assembled from several component parts or materials. They contain important basic data for numerous areas of a company. Key Features The following table explains the key features available: Use Key Feature Manage bills of material You can create a complete, formally structured list of the components that make up a product. Assign BOMs to plants You can extend the area of validity of a BOM that you defined when you first created it. This means, for example, that you can assign the same BOM to a different plants - avoiding data redundancy and multiple data entry. material in Monitor multilevel BOM assignment You can use a reporting function that determines all components in a product and displays them per low-level code. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 98 PUBLIC

99 Key Feature Use You can use a reporting function that determines where an object (for example, Find BOM for component material) is used and the quantity that is required. This is necessary, for exam­ ple, if objects are used in more than one context. You can use this information to: ● affected by a change to an individual part Select products that are effect on the cost of a product if the price of a raw material ● Calculate the rises 2.8.2.2 Product Structure Management Business Background A product structure is an enhanced engineering bill of material (BOM). It consists of a set of hierarchically ordered objects with the purpose of documenting one product or a set of similar products. This is for effective high-volume, repetitive manufacturing, for example, in the automotive industry, as well as for complex machinery and equipment. If you work with products that have many variants and a large number of components, you can use product structure management to optimize process support from early engineering, to hand-over to manufacturing. Product visualization tools allow you to manage geometric data and view digital mockups in your product structures via viewable files. Product structures provide the following benefits: ● Possible to create and maintain a product structure without assigning materials A redundancy-free description of products or product families with many variants ● Variant configuration and variant management capabilities ● ● configurable and configured materials The option of working with both ● Continuous modeling from an early stage to the manufacturing handover ● Modeling of functional structures (with no requirement for material number references) ● Template structures for the creation of product structures and the standardization of product descriptions ● A consistent data basis for different views of the product and for all enterprise areas SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 99

100 Key Features The following table explains the key features available: Use Key Feature You can use product structures to model a multilevel product hierarchy. When Modeling product structures modeling your product structure, you have the flexibility to develop the struc­ ture and the variants without having to create master data. You can model a configurable product with multiple combinations and possible scenarios. configuration Simulating the product configuration by simulating the explosion of a prod­ You can check the product uct structure for a specific set of configuration parameters. You can save, edit, and activate these simulations. Managing geometric data You can assign geometric data to support the transition of transformation ma­ trices into product structures. Together with viewable files, the geometric data enables dynamic viewing based on simulations offered by the product struc­ ture. Viewing digital mockups Digital mockups, which are triggered at various stages of new product design, enable design engineers, product engineers, and manufacturing engineers to study the content developed before it is handed over to the next department. You can view a digital mockup in the product structure. 2.8.2.3 Embedded Systems Development 2.8.2.3.1 Embedded Software Management Business Background Embedded software is computer software that is embedded in one or multiple products. It provides functions together with various hardware and systems. For example, embedded software can be used to control or optimize the functions of the mechanical part or the electrical part of a product. If you work with products that have one or multiple pieces of embedded software, you can use embedded software management to view and manage your software. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 100

101 Key Features The following table explains the key features available: Use Key Feature You can manage embedded software and its versions in a product structure or Managing Software a bill of material (BOM). 2.8.2.4 Engineering Change Management Business Background Engineering change management can be used to change various aspects of production basic data (for effectivity). The engineering change example, bills of material, materials, and routings) with a history (with date process is an important process in product development. Key Features The following table explains the key features available: Key Feature Use Change master record handling You can define change master records. Change master records contain de­ scriptive data, such as the reason for the change, and data with control func­ tions, such as valid-from date and indicators for object types. In addition to this data, which you can maintain directly, there is data that the system updates automatically, such as administrative data. Revision level assignment You can identify material changes that are made with reference to a change number by using revision levels. A revision level can be assigned on a valid- from date when an object is changed with reference to a change number. 2.8.2.5 Classification Business Background The classification system allows you to use characteristics to describe various types of objects, and to group similar objects in classes – to classify objects, in other words, so that you can find them more easily later. You SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 101

102 then use the classes to help you to find defined in them as search criteria. objects, using the characteristics find objects with similar or identical characteristics as quickly as possible. This ensures that you can Classes allow you to group objects together according to criteria that you define: ● You create classes for certain object types such as, for example, material or material BOM. You use the class type to determine which object types can be classified in a class. ● You can assign characteristics to your class. These describe the objects that you classify in your class. ● When you assign a characteristic to a class, you can adapt (overwrite) the characteristic. Key Features The following table explains the key features available: Key Feature Use handling You can define Classification classes and their characteristics including characteristic values. Finding objects Once you have set up a classification system in your company, you can search for the objects you have classified. You can also identify where a specific char­ acteristic and characteristic value is used. 2.8.2.6 Document Management Business Background Document management allows you to store, manage, and use documents when creating and maintaining digital product information company-wide and throughout the life cycle of a product. The following examples different areas of a company: show some of the uses of document management in In the design office, document management can be used to manage drawings. All design drawings can be ● linked to material masters. ● Companies that process complex documents can use document structures to organize these documents. All documents and texts that are logically connected can be grouped together in one document structure. A routing contains the sequence of operations for manufacturing a product. Documents can be allocated ● to the operations in a routing. These documents may be used, for example, to describe the specifications of a product, or to store inspection requirements. ● Documents can be linked to projects. You can use the document hierarchy to represent individual product folders that are given to the product administrators responsible. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 102

103 Key Features The following table explains the key features available: Use Key Feature Document handling To store and manage a document, you create a document info record that con­ tains all of the data required to process and manage a document including the original document itself. Find Document: Selection Criteria To documents that are maintained in document management using any of find the search criteria. You can use known data for the document search function that is either directly related to the document info record or comes from the find environment of the document. This data is known as selection criteria. To classification, a document, you can use document data, object links, and texts as the search criteria. Integration with SAP Document Center This solution provides a quick and safe data exchange platform for managing documents from mobile and other devices considering the Document Manage­ ment System (DMS) authorization. You can access public and private folders from DMS and organize or document info records (DIR) within these fold­ files ers. You can also query for documents based on DIR attributes by using the Search function. Documents and folders can also be synchronized with the cli­ ent and modified offline. The changes can be synchronized with DMS when the user is online. The DIR files can also be shared with colleagues and business Share function. partners using the Currently this integration only exists for On-Premise delivery. S/4HANA Cloud for intelligent product design is a cloud solution that Integration with SAP S/4HANA Cloud for offers intelligent product design you a collaboration platform that can be used in all phases of your product de­ velopment. You can store engineering documents as well as share and review them with internal and external participants using a process driven approach. Using the integration of intelligent product design with Document Manage­ ment (DMS), you can upload documents from DMS to a collaboration to col­ laborate with internal and stakeholders. The collaboration could result in exist­ ing documents being or new documents being created. These docu­ modified ment changes in a collaboration can be downloaded to DMS for further down­ stream processes. 2.8.2.6.1 Maintain Documents Use With this app, you can manage document info record and any original application files that belong to it by entering the document number and document type. You can create, change, search, and display document info SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 103

104 records with the role SAP_BR_DESIGN_ENGINEER . You can upload, download, check-in, or check-out original files. You can also attach URLs to the document info records. application 2.8.2.7 Attachment Service Business Background Attachment Service is a reusable user interface component which can be consumed by any FIORI application to attach documents (referred as attachments). The attachments are stored in the following storage repositories: ● SAP Cloud Platform -Document Service (in S/4 HANA Cloud solution) SAP Content Server Configuration ● (in S/4 HANA On-Premise solution) This re-usable component is based on the control from the SAP UI5 foundation. UploadCollection Attachments are linked to business objects based on Document Management or via Generic Object Services (GOS). Key Features The following table explains the key features available: Key Feature Use Manage attachments You can upload, download, delete, and rename an attachment. You can also cancel the changes made to the attachments. Attribute and Action Handling This function allows the consuming applications to control the visibility of at­ tributes and actions of the attachments on the User interface. By default all at­ tributes and actions are visible on the user interface for the user. You can re­ strict the user from viewing attributes and actions by setting values as false in the structure declared in the attachment service controller.js file. JSON This function allows the consuming applications to check the state of the at­ Checking for Attachment Content State tachment content. If you have made any changes to the content of the attach­ ment and not saved, then the attachments content is dirty. Even if you have just refreshed the browser without saving or cancelling the changes, these changes are recorded and the application state is dirty. If the application state is dirty, you have to explicitly save the attachment. This function allows the consuming applications to get a count of attachments Counting Attachments for a Consuming Application associated to an object without having to see the attachment view. You can check the count of confirmed, unconfirmed, and total attachments. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 104 PUBLIC

105 2.8.2.8 Variant Configuration Business Background Variant offer new variants of configuration is for manufacturing complex products. Manufacturers often have to their products, and new variants can be created by modifying existing product designs as they process the order. The important thing is to react quickly to customers' requirements. The customer determines the features of the product. A customer buying a car, for example, can choose the improves information configurator features of the car and combine these features as required. The product configuration exchange between sales, engineering, and production. Variant helps the customer or salesperson to put together specifications for the product and ensure that the product can be produced from these specifications. Key features The following features are available: Use Key feature configuration model You can use a configurable material to cover all variants of a Manage product in your company. A class is used to hold the characteristics that describe ● a configurable material. By linking the class to the con­ figurable material, you allow the material to be config- ured using the characteristics of the class. ● You can create a super BOM and a super routing for a material, containing all the components configurable and operations for producing all variants of the product. ● Often not all combinations of features are possible for either technical or marketing reasons. You can use de­ pendencies and constraints to control which combina­ tions are allowed ● configuration profiles for configurable objects you de­ In fine central settings for configuring the object. ● influence the price of a You can use variant conditions to configurable material depending on the characteristic values assigned. Manage material variants You can create a material variant, which is a material that can be kept in stock and that arises from an individual con­ figuration of a configurable product. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 105

106 Key feature Use configuration configuration, e.g. in Sales Order, the user assigns Interactive During values to characteristics. Dependencies and constraints coming from the configuration model are considered. simulation Configuration configuration simulation to check your con­ You can use the figuration model. In the configuration simulation, you can test whether you have created the objects correctly and whether your dependencies work. Low Level Configuration Low-level configuration refers to “background” explosions of configurable objects, like bills of material (BOMs) or rout­ ings. E.g. it’s used in material requirements planning (MRP). Here characteristic values from the sales order are automat­ ically used to determine the BOM components and opera­ tions or activities. Related features Classification [page 101 ] 2.9 Sales 2.9.1 Order and Contract Management 2.9.1.1 Sales Master Data Management Business Background Master data represents the business data your company requires about individuals, organizations, materials, services, and prices. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 106

107 Key Features The following table explains the key features available: Use Key Feature You use this feature to control the sale of specific materials to a customer. Your Listing and exclusion customer can only buy materials included in the material listing assigned to them. The system does not allow you to enter materials that are not included in the material listing in a sales document for a customer. Customer material info record You use this feature when your customer manages a material with a number that differs from the one that your company uses. Related Information Central Master Data [page 186 ] 2.9.1.2 Sales Contract Management Business Background A sales contract is an outline sales agreement that contains special conditions negotiated between the vendor and a customer, for example, price, target value or target quantity. A sales contract is valid for a specified period. A customer submits a sales order to release products from the amount agreed in the contract. Types of sales contract include value contracts and quantity contracts. Key Features The following table explains the key features available: Key Feature Use Contract processing You use this feature to create, change, display, and list contracts. You can list incomplete contracts, completed contracts, expiring contracts, and expired contracts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 107

108 Key Feature Use You use this feature to enable your customer to request part of the total quan­ Contract release order processing tity or value of goods or services agreed in a contract. The release order con­ tains information on quantities and delivery dates. fulfillment You can analyze how the sales contracts that you are responsible for are being rate tracking Contract fulfilled. You can focus on contracts with the highest target value. You can drill rates by selected criteria. down to sales contract fulfillment You use this feature to schedule an outline agreement with the customer con­ Customer scheduling agreement taining delivery quantities and dates. These are entered as schedule lines in a delivery schedule. You a scheduling agreement by creating the deliveries fulfill in the schedule as they become due. For information about the key features of Global Trade Management, please Global Trade Management Global Trade Management [page 108 ] . see The system moves your old sales data to the historical area of the database Data aging during data aging. When you analyze contract fulfillment rates, the system uses current data only and does not retrieve historical data. 2.9.1.2.1 Global Trade Management Business Background In trade, it is necessary to control and organize the of materials and services from suppliers to customers. flow Sales and purchasing processes are carried out simultaneously by the same trading department. A trade transaction begins when a commercial customer approaches a trading company with a specific request, that is, a customer sends a sales order. If the trading company accepts the mandate, it organizes individually for that specific fulfillment Fulfillment is characterized by a high degree of request (sales order). complexity and includes, but is not limited to: ● Searching for the most suitable suppliers ● Organizing logistics from supplier to customer (shipping, transportation, customs clearance for the goods) ● Risk protection ● Financial management of the core business ● Handling of any associated expenses The supplier then delivers the goods directly to the customer. The trading company receives an invoice from the supplier and bills the customer. Finally, the trader receives a payment from the customer and makes a payment to the supplier. Also typical is that a trading company’s profitability analysis is based on individual commercial deals. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 108 PUBLIC

109 Key Features The following table explains the key features available: Use Key Feature ● Creation of trading contracts that contain sales-side data for the require­ Single point of entry for contracts be­ ments of individual customers and, at the same time, the purchasing-side tween customers and suppliers data used to order from suppliers to the requirements of the cus­ fulfill tomer ● Settlement of trade expenses by using settlement documents ● Trade use cases: ○ Import/Export ○ Domestic ○ Offshore Creation of follow-on documents Generation of sales orders and purchase orders automatically or manually based on the trading contract status ● Complete overview of the contract lifecycle flow Monitoring of document and process­ ing status of all subsequent transactions ● Easy navigation to follow-on documents associated ● Definition of portfolios as predefined selection groups Portfolio management ● Automatic or manual classification of contract items by portfolio to opti­ mize the use of sales-side and purchasing-side quantities ● Monitoring of contract positions ● Reporting on similar materials ● Control of important materials, countries, customers or suppliers in view of risk consideration ● Monitoring and processing of document items to reduce inventory risk Association management and lost sales for an assigned portfolio Open quantity information ● ● Long-short analysis on either the purchasing side or the sales side ● Overview of all current items that have not yet been completely processed ● Handling of various kinds of costs, including freight, loading charges, stor­ Trade expense management age costs, insurance, customs duty, and commissions Planning of trading expenses on contract creation ● ● Settlement of planned and unplanned expenses on contract level of trade transactions that incur costs ● Posting of sales and purchasing expenses to specific G/L accounts ● Posting of expenses to accounts payable and accounts receivable SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 109

110 Key Feature Use Archiving of trading contracts and other relevant documents, such as settle­ Archiving ment management documents to remove volumes of data from the database that are no longer required in the system, but still need to be kept for analysis purposes 2.9.1.3 Sales Order Management and Processing Business Background Sales order management and processing allows you to execute business transactions based on sales documents, such as inquiry, quotation, and sales order, defined in the system. Within sales order management and processing, you enter a sales document based on customer requirements. When you create or changes confirms dates and quantities. You can display and change the sales documents sales documents, the system to respond to customer questions. There are ways you can process sales documents in the system, depending on your specific needs. In different the simplest case, you can enter a sales document with several items in a single screen. The system automatically proposes data from the relevant master records: From the customer master record of the sold-to party, the system proposes sales, shipping, pricing, and ● billing data. In addition, the system copies customer-specific master data about texts, partners, and contact people at the customer site. ● For each material in the sales document, the system automatically proposes data from the relevant material master records, such as data for pricing, delivery scheduling, availability check, tax determination, and weight and volume determination. The data proposed by the system can be used as a basis for your sales document. If processing requires it, you can modify this data manually or add new data. For example, your pricing policy may allow you to manually change the value of certain discounts within a permitted range. In addition, you can branch in the sales document to a number of different screens where you can display and modify data, such as terms of payment and delivery data. It is also easy to create a new sales document with reference to an existing document. For example, if a customer accepts a quotation you sent, the system can copy all the relevant master data from the quotation when you create the sales order. When you process a sales document, the system can automatically carry out basic functions, such as the following: ● Pricing ● Availability check (if this function is defined in the material master record) ● Transferring requirements to materials planning (MRP) ● Delivery scheduling ● Shipping point and route determination (for the sales order) ● Credit limit check SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 110 PUBLIC

111 Key Features The following table explains the key features available: Use Key Feature Sales Order Processing You use this feature to create, change, and display sales orders. In addition, you can list sales orders, duplicate sales orders, and incomplete sales orders. You can release sales orders for billing. Inquiry Processing You can use this feature to enable your customer to request a quotation or sales information without obligation. An inquiry can relate to materials or serv­ ices, conditions, and if necessary, delivery dates. The sales area that accepts the inquiry becomes responsible for providing a quote. In addition, you can list inquiries and incomplete inquiries. You use this feature to create, change, or display a quotation for your custom­ Quotation Processing ers. The process starts when a request for quotation (RFQ) is received from your customer. In response to the customer's RFQ, a quotation is created. The customer can then either accept the quotation or reject it. This step enables you to assure your business partners that you will deliver a product quantity at a time and price. If accepted, the quotation is transferred into a sales specified order. In addition, you can list all quotations, expiring quotations, expired quo­ tations, completed quotations, and incomplete quotations You use this feature to check the credit limit when you create or change sales Credit Management documents. If you change quantities or values in a document, the check is re­ peated. The system totals the receivables, the open items, and the credit value of the sales order for every item of a sales document. The system displays in­ formation about what caused blocks. When your credit department manually reviews the customer's current credit situation and when the sales order is ap­ proved, the system removes the block from the sales order. Product Availability Check You use this feature to determine on which date and in which quantity a re­ quirement can be confirmed, based on a specified checking rule and the cur­ rent supply situation for a specific material. The availability check takes con­ differing confirmation situa­ current requirements of types and their respective tion into consideration. Product Allocation specific time period You use this feature to allocate material quantities for a and to a combination of characteristic values for sales orders and stock trans­ port orders, against which availability checks can be run. Backorder Processing You can use this feature to re-prioritize sales orders and stock transport orders and perform automated mass availability checks to ensure that a limited sup­ specific strategy. Optionally, ply of material is distributed in accordance with a your system assigns specific supply elements to the individual requirements. You can monitor the check results and, if necessary, re-run the check to im­ prove the confirmations for the requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 111

112 Key Feature Use Sales Order Processing with Customer You use this feature when customers are required to pay some amount in ad­ Down Payment vance before delivery of goods (for example, in make-to-order production). You can create requests for down payment, record the receipt of the down pay­ final ment, and create a invoice after the deduction of the down payment re­ ceived. You can also create a receipt of the final amount due on the invoice. You use this feature to guarantee the payment of your sales orders with trade Sales Order Processing with Trade Finance Transactions finance transactions (for example, a letter of credit transaction). You use this feature if you want to deliver materials from consignment stock Sales Order Processing with Consignment Stock (owned by an external supplier). You use this feature for production in which products are made upon receipt of Sales Document Processing for Make-to- Order Scenario an order from a customer. Sales Order Processing for Free-of-Charge You use this feature to provide goods to a customer at no charge. A sales order based on the type is created that is not billing relevant. The order is confirmed Delivery availability of goods. A delivery is then created and the goods are subsequently picked, and delivered to your customer. confirmed, Sales Order Processing for Third-Party Di­ You use this feature when another company, rather than your company, deliv­ rect Ship ers the items requested by your customer. You can either create your invoice based on the invoice from your third-party supplier or you can book the deliv­ ered amount directly as a statistical goods receipt. You use this feature to capture information within the sales order that reusable Sales Order Processing with Returnable Packaging packaging should be returned back into inventory (for example, standard pal­ lets belonging to the manufacturer). Listing sales documents by object status You use this feature to search for sales documents and sales document items and display them in a list. Sales Billing 2.9.1.4 Business Background Sales Billing allows you to create and manage billing documents, to post them to financial accounting and to output them to a variety of channels. You can also create and manage billing-related documents such as invoice lists and billing document requests. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 112

113 Key Features The following table explains the key features available: Use Key Feature Debit memo processing You use this feature to apply a debit to a customer account, either by creating a debit memo request, or directly by creating a debit memo with reference to a billing document. A debit memo request (that is, an invoice increase request) is then created with the amount to be debited. The debit memo is sent to the customer and posted to accounting. You can use this feature to apply a credit to a customer account, either by cre­ Credit memo processing ating a credit memo request, or directly by creating a credit memo with refer­ ence to a billing document. The credit memo is sent to the customer and posted to accounting. You can create billing documents (for example, invoices for customers) from Billing document processing items in the billing due list (for example, debit memo requests and outbound deliveries). When you post billing documents, the system forwards billing documents to accounts receivable and triggers output (for example, an invoice by e-mail). You can change or cancel billing documents as needed. You can also create bill­ ing documents for retroactive billing. You can setup billing batch execution by scheduling billing creation and scheduling billing output. You can also schedule billing documents for release to accounting. You can manage documents blocked for billing. Invoice list processing You use this feature to create, at specified time intervals or on specific dates, a list of billing documents (invoices, credit and debit memos) to send to a partic­ ular payer (usually the head of a corporate group). The billing documents office in the invoice list can be single or collective documents (collective invoices combine items from more than one delivery). There are two types of invoice lists, one for invoices and debit memos and one for credit memos. If you wish, you can process invoices, debit memos, and credit memos at the same time. The system automatically creates a separate invoice list for credit memos. Invoice correction processing You use this feature to create an invoice correction request if the wrong quanti­ ties or prices have been calculated for the customer. The invoice correction re­ quest can be automatically blocked by the system until it has been checked. The system calculates the between the amount that was originally difference calculated and the corrected amount for each item. Once it has been ap­ proved, you can remove the block. The system creates a credit or debit memo with reference to the invoice correction request. The credit or debit memo is sent to the customer and posted to accounting. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 113

114 Key Feature Use You can use convergent billing to converge billing data from catego­ Omnichannel convergent billing different ries of billing due list items (such as sales orders, outbound deliveries, and debit memo requests) to create combined, single invoices for customers. You can use omnichannel convergent billing to converge billing data from your SAP S/4HANA system with billing data from one or more external sources. The external billing data is persisted in your system in the form of external billing document requests (EBDRs). You can create EBDRs automatically by integrat­ ing external systems that send billing data, or you can create them manually by uploading billing data stored in spreadsheet files. EBDRs are added to the billing due list, from where they can be converged with your other billing due list items to create combined, single invoices for custom­ ers. Stand-alone billing of EBDRs is also possible. 2.9.1.5 Claims, Returns, and Refund Management Business Background Claims, returns, and refund management enables you to streamline complaints and returns management. You can improve tracking, help your service organizations process requests faster, and reduce your operational costs. You can improve the capture and handling of all complaints and returns and trigger logistical follow-up actions such as inspection of returned material, resolution of issues, and claims and refunds management. Key Features The following table explains the key features available: Key Feature Use Product and warranty registration You can create warranties and assign technical objects to those warranties. Warranty claim processing Enables manufacturers, importers, or vendors of complex products and their suppliers to better deal with a large number of warranty claims. Only those claims that produce negative results in the automatic checks are included in manual processing. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 114 PUBLIC

115 Key Feature Use You use this feature for processing customer returns. The process starts a re­ Returns management processing turns order with reference to the original sales order or invoice for the goods. A return material authorization (RMA) document is forwarded to the customer to be attached to the incoming goods. The goods are shipped back, a returns de­ livery is created with reference to the returns order, and the material is re­ ceived into returns stock. The returns stock location is set as non-MRP rele­ vant. The goods are inspected and either selected for return to stock, for scrapping, or for other logistical processing (for example, for forwarding to the supplier). A credit memo is created from the billing run and posted to the cus­ tomer's account or a replacement delivery is triggered to compensate the cus­ tomer. Credit memo request approval processing You can implement a workflow to optimize the approval process for internally created credit memo requests. All credit memo requests that require approval become visible to the responsible user. Whether or not a credit memo request needs to be approved, or whether it is released automatically, depends on the settings made during the configuration process. 2.9.1.6 Sales Monitoring and Analytics Business Background You can efficiently check the status of your sales orders. Key Features The following features are available: Key Feature Use Managing sales plans You can create, change, release, and display sales plans. In a sales plan, you set sales targets on various dimensions for a planned period. Comparing planned and actual sales data You can analyze to what extent your sales targets are being achieved and thus gain insights into your current sales performance. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 115

116 Key Feature Use You can analyze how the quotations that you are responsible for are being ref­ Analyzing quotation conversion rates erenced. You can focus on quotations with the highest net values and quota­ tions with the lowest conversion rates. You can drill down to quotation conver­ sion rates by selected criteria. You can perform modeling-based predictions on quotation conversion accord­ ing to selected criteria. By comparing the actual and predicted results, you can predict to what extent your quotations could be converted into sales orders. Analyzing incoming sales orders You can view sales order KPIs in a monthly rolling trend as a graphic or in a ta­ ble with the display currency. You can drill down to view detailed information for selected sales organizations, materials, material groups, sold-to parties, filter the items according to various sales document types and so on. You can criteria, such as year, month, sales organization, material group, and sold-to party. You can search for incomplete sales documents and display them in a list. You Listing incomplete sales documents can display the number of issues with incomplete data. Monitoring sales order You can monitor and resolve issues that stop sales orders from being fulfilled, fulfillment for example, a delivery or billing block. You can display your weekly workload with all overdue issues and all issues due in the next 7 days. You can display and resolve issues with incomplete data, credit blocks, delivery blocks, and bill­ ing blocks. You can display the number of issues with incomplete data and credit blocks, and the top 3 reasons for delivery blocks and billing blocks.You can use compact visual filters, and charts to visualize your results, and a filters, table from which you can navigate to resolve the issues. Predicting delivery delay You can gain insights into the current sales order fulfillment situation regarding the predicted delay in creating the planned delivery document. You can react proactively to avoid these delays, for example, by instantly recognizing issues and triggering the appropriate actions. Tracking sales orders You can check whether the delivery of a sales order is on track regarding its fulfillment. For example, you can see whether it has been shipped, invoiced, or even if a journal entry (that is, an accounting document) has been cleared. You fulfillment can recognize immediately whether the of a sales order contains is­ sues or not, or whether it is completed or still in process. You can visualize the sales order fulfillment status, and display all relevant documents for the corre­ sponding sales document. You can display further details on the business ob­ jects in the context of their fulfillment, including issues and the process flow, and resolve issues directly from here, for example, remove a delivery block. for delivery on You can check whether your sales orders have been confirmed confirmed sales orders, backor­ Checking the date requested by your customer. You can identify backlogs in relation to fulfillment ders, and demand your customer's requested quantity and delivery date. You can collaborate with your demand planner, for example, to solve issues regarding the availability of specific products. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 116 PUBLIC

117 Key Feature Use Monitoring delivery performance You can monitor the current delivery performance of sales orders. You see the percentage of sales order items delivered as requested for the last 3 weeks. You can compare the customer's requested delivery date of sales order items with the actual delivery date of the corresponding outbound deliveries and dis­ plays this, for example, as the ratio of sales order items delivered as requested to the total number of sales order items. Analyzing sales volume You can view sales volume and related billing document KPIs in a monthly roll­ ing trend as a graphic or in a table with the display currency. You can drill down to view detailed information for selected sales organizations, sold-to parties, bill-to parties, and so on. You can filter the items according to various criteria, such as year/month, sales organization, sold-to party, and bill-to party. You can customize a step-by-step analysis path to drill down into your sales Analyzing sales volume in detail different dimensions. volume on Checking sales volume and open sales You can check your sales volume and open sales, that is, open orders, and open deliveries, in order to identify and resolve issues to increase your sales volume for the current month.You can navigate to analyze and resolve issues directly. profit margin margin, and credit You can check the relationship between sales volume, profit Checking sales volume and or credit memos memos, to help you to increase your sales volume. Order-to-cash performance ● figures to get an overview of the order-to-cash perform­ You can check key ance in your company. For example, you can track delivery blocks or billing blocks, detect changes made to critical of sales orders, and monitor fields lead times like order to delivery or goods issue to billing. Displaying a sales management overview You can get a graphical overview of various sales data as a sales manager. The system moves your old sales data to the historical area of the data­ ● Data aging base during data aging. When you analyze incoming sales orders, sales volume, and quotation conversion rates, the system uses current data only and does not retrieve historical data. 2.10 Service 2.10.1 Service Agreement Management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 117

118 2.10.1.1 Warranty Management Business Background Warranties the scope of the services and parts usage that a company performs in the event of damage define or problems. This process enables you to process service deliveries with automatic checks for warranty agreements. Key Features The following table explains the key features available: Key Feature Use Service Scope Define define the scope of services and usages that your You can company provides. Carry Out Automatic Checks You can automatically check the warranty when processing a customer message, a service or maintenance order, or a bill­ ing request. You use a warranty check to determine whether the warranty still exists, and if certain prerequisites have been met. Product and Warranty Registration You can create warranties and assign technical objects to those warranties. Warranty Claim Processing You can deal with a large number of warranty claims. You can process customer returns. The process starts with a Returns Management Processing returns order with reference to the original sales order or in­ voice for the goods. A return material authorization (RMA) document is for­ warded to the customer to be attached to the incoming goods. The goods are shipped back. A returns delivery is cre­ ated with reference to the returns order, and the material is received into returns stock. The returns stock location is set as non-MRP relevant. The goods are inspected and either se­ lected for return to stock, for scrapping, or for other logisti­ cal processing. A credit memo is created from the billing run and posted to the customer's account. Alternatively, a replacement deliv­ ery is triggered to compensate the customer. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 118

119 2.11 Sourcing and Procurement Purchasing allows you to order direct materials, consumable materials, and services. You can order consumable materials for use in a project through external procurement, and direct materials using purchase requisitions. The purchasing department keeps track of the procurement process with the purchase order, the goods and invoice receipts, and service entry sheets. 2.11.1 Supplier Management 2.11.1.1 Classification and Segmentation Business Background classification and segmentation is an ongoing process in which you assess and classify your suppliers Supplier at regular intervals and allocate your suppliers to segments of different importance. You can then focus especially on those suppliers that are strategically important and critical to your business, thus enabling you to develop and manage your business relationships. Key Features The following table explains the key features available: Use Key Feature Purchasing Category Purchasing categories allow you to manage your suppliers according to spe­ cific categories of goods and services, for example, hardware and software, or installation and maintenance. They enable you to monitor your pool of suppli­ ers and optimize the purchasing process. Purchasing categories are also an important structuring element in the sup­ plier evaluation process. They enable you to compare the evaluations of all suppliers in the same purchasing category. Procurement-Related Activities To drive and organize procurement-related activities, your buyers can use the procurement activity management process. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 119

120 Key Feature Use You have a central overview of the master data of each supplier, such as ad­ Supplier Data dress details, contact person, bank and tax data. The classification details enable you to assign important characteristics to your suppliers, such as the strategic importance ( ABC classification ) and the preferred supplier relationship you have with a supplier (for example ). A score­ card for each supplier enables you to monitor the supplier's corporate social responsibility compliance. If your company has a contract with D&B, you can display the D&B data of the supplier. 2.11.1.2 Supplier Evaluation Business Background You can evaluate your company's suppliers to obtain a basis for your business relationship with them and for optimizing your supply base. Key Features The following table explains the key features available: Key Feature Use In supplier evaluation, you send out supplier evaluation requests to appraisers, Supplier Evaluation asking them to fill out questionnaires about a supplier. You create the first questions and the corresponding answer options and then include the ques­ tions in one or several questionnaires. You can include the questionnaires in evaluation templates that serve as the basis for sending out evaluation re­ quests. You create questions in the question library. For a better overview, you can use sections to structure the questions. You can display the evaluation scorecards that show the overall result of a supplier evaluation for one supplier. See also the key feature Supplier Evaluation under Spend Visibility [page 133 ] SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 120

121 2.11.2 Generic Features Available in Sourcing and Procurement Here, you can get an overview of the generic features that are available in Sourcing and Procurement. Use Key Feature Using subcontracting documents You can instruct a supplier (subcontractor) to manufacture materials using components provided by you. Based on the respective purchase order or scheduling agreement, you or a third-party supplier can send the components to your sub­ contractor, who then manufactures the ordered material. You can monitor the quantity of the needed components and trigger the goods issue, if required. Monitoring purchasing documents You can monitor your purchasing documents (purchase requisitions, requests for quotations, purchase orders, scheduling agreements, and purchase contracts) by a re­ quirement tracking number that you define. 2.11.3 Sourcing 2.11.3.1 Source Assignment Business Background You use the source assignment solution to identify potential sources of supply based on past purchase orders and existing long-term purchasing agreements. Sourcing enables you to find the most qualified and reliable suppliers, negotiate with them, and create both scheduling agreements and purchase contracts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 121

122 Key Features The following table explains the key features available: Use Key Feature A purchasing info record is a source of supply. The info record contains data Purchasing info record about a specific material and its supplier. You can use an info record to define the prices and conditions at which you purchase a material from a sup­ specific plier, for example. You can check how conditions in info records have developed over time, and flag an info record so that it is taken into consideration when a purchase requisition is created automatically during an MRP run. You can store information about a supplier and a material as master data at purchasing organization or plant level. You can create purchasing info records for different procurement types (standard, subcontracting, pipeline, and con­ signment). You can also display and analyze price history details and price variations of purchasing info records. Source list You can define which sources of supply are valid for usage in an MRP run through the source list. Depending on the material or plant, you can use the source list to automatically assign an info record, a scheduling agreement item, or a purchase contract item to be used as the source of supply. Quota arrangement You can use quota arrangements to split up a specific material requirement for a plant to several sources of supply, that is, to several suppliers. This allows you to minimize the risk of delivery failures for important materials. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 122 PUBLIC

123 Key Feature Use If you do not have a valid source of supply, you can use the requests for quota­ Requests for quotations one. A request for quotation is a request from a purchas­ tions process to find ing organization to a supplier to submit a quotation for the supply of materials or lean services. You can create requests for quotations and maintain general information and attributes such as the purchasing organization, delivery terms, and deadlines. You can also add attachments. If you want your strategic buyers to invite sup­ pliers to place bids, you can send the request for quotation (including attach­ ments) to SAP Ariba Sourcing. (Note: The use of SAP Ariba Sourcing may re­ quire a separate license.) After the suppliers have placed their bids in SAP SAP S/ Ariba Sourcing, strategic buyers can award bids and send them to 4HANA , where you can check the detailed information of the awarded quota­ tions. In SAP Ariba Sourcing, you can select whether a contract or a purchase order should be created for the selected quotation. Alternatively, if you just want to request only price and quantity information or shipping costs, the request (including attachments) is sent to the Ariba Net­ work after you publish it. Suppliers can create their bids directly on the Ariba Network and send them back to , where you can award one of SAP S/4HANA them. You can also create price requests in SAP S/4HANA and send them directly to your supplier via e-mail or as a printed version by mail. You receive the quota­ SAP S/ tions from the suppliers and can manually create and award them in 4HANA . In all three cases, RFQ items can be selected for an info record update, which means that the prices from the most recent bids are transferred to the corre­ sponding info record. Supplier quotations A supplier quotation is an offer from a supplier to a purchasing organization to supply materials or lean services. In SAP S/4HANA, supplier quotations can be created in one of the following ways: They can be generated from awards from SAP Ariba Sourcing that are ● transferred to SAP S/4HANA via Ariba Network ● If you have requested price information and suppliers have submitted SAP their bids directly on the Ariba Network, the questions are created in . You can then award the quotations in SAP S/4HANA . Quota­ S/4HANA tions that have not yet been awarded can still be manually changed in SAP S/4HANA . ● You can create supplier quotations manually in SAP S/4HANA. ● define approval rules for supplier quotations. These rules are ap­ You can plied during the awarding process in SAP S/4HANA . ● You can display awarded quotations and all relevant detailed information. ● Purchase orders and contracts that are based on awarded quotations are automatically created in the background, and can then be processed fur­ ther. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 123

124 Key Feature Use You can compare all received supplier quotations for a specific Comparing Supplier Quotations RFQ and award the best quotation. Purchase Contract Management 2.11.4 Operational Contract Management 2.11.4.1 Business Background You use the operational contract management solution when you wish to enter into long-term purchasing arrangements with suppliers regarding the supply of materials or the performance of services. Key Features The following table explains the key features available: Use Key Feature Managing purchase contracts A purchase contract is an outline purchase agreement between the supplier and your company to procure special materials or services against which re­ lease orders (releases) can be posted. You can get an overview of all existing contracts, where you can use various sorting and grouping functions. From the list of contracts, you can directly re­ new a contract and also see the validity status of each contract. You can navi­ gate into a specific contract and process it. The prices and conditions from the contract will be copied into the purchase order when referring to a contract. A contract can be maintained with a special validity time frame and a target quantity or a target value. When the target quantity or value you call off is ex­ ceeded, the system issues a warning. You can create a contract template, enabling you to reuse data that is inherited from the template whenever you create a new contract. This reduces both the time and effort you spend on filling out the data. Approvers can use the flexible workflow to approve purchase contracts. The approval process can be automatic, one-step, or multi-step approval. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 124

125 Key Feature Use Scheduling agreements are a form of outline purchase agreement under which Managing scheduling agreements materials are procured on predetermined dates within a certain time period. Scheduling agreements contain prices and conditions for a material item. Re­ leases from a scheduling agreement can occur using the MRP run, or release them manually, or you can plan scheduling agreement releases as a back­ ground job. You can create and change scheduling agreements as required, and maintain the delivery schedule. flexible Approvers can use the workflow to approve scheduling agreements. The approval process can be automatic, one-step, or multi-step approval. 2.11.5 Operational Procurement 2.11.5.1 Self-Service Requisitioning Business Background Self-service requisitioning allows you to create, manage, and track your orders efficiently. You can create items from external catalogs, free-text items, and an integrated cross-content search based on SAP S/4HANA, from which you can select the materials and services you require. After ordering these products, an approval process is triggered. Once your purchase requisition has been approved, a purchase order is created. Key Features The following table explains the key features available: Key Feature Use Product selection You can order products by selecting them from catalogs, by entering a free-text item, or by selecting a product ID from the product master. Based on the con­ figuration settings, the system automatically checks that the most recent price for any product you want to purchase is chosen when you place your order. Status overview You can monitor the status of all your requisitions to see who is responsible for the current approval step. Copy purchase requisition You can copy an existing purchase requisition. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 125

126 Key Feature Use You can use the flexible workflow for purchase requisitions, enabling you to op­ Purchase requisition approval workflow allows you to use either the timize the approval process. The flexible automatic, one-step, or even multi-step approval. From the overview of all requisitions they are responsible for, approvers can ei­ ther approve or reject them. Purchase order processing Once the requisition has been approved, a follow-on document is created and submitted to the supplier. Confirmation processing After you have received the products you have requested, you confirm the de­ livery. Return delivery processing If you need to return products after you have the delivery, for exam­ confirmed ple because they are damaged or due to poor quality, the return delivery proc­ ess is available. Shopping on behalf of other users Employees can also shop on behalf of other users, for example a team assis­ tant can procure an item on behalf of the manager. Managing catalog items You can see which catalogs are assigned to your users, and also which items are part of which catalog. 2.11.5.2 Requirements Processing Business Background A purchase requisition is a request to procure a certain quantity of a material, or a service, so that it is available at a certain point in time. A purchase requisition is used as the starting point in purchasing and may be created manually. A demand from an MRP run, for example, can also result in a purchase requisition. A purchase requisition may be subject to either a release strategy or can trigger an approval process. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 126

127 Key Features The following table explains the key features available: Use Key Feature Managing purchase requisitions Purchasers or other specialists can create purchase requisitions manually. Purchasers can also create purchase requisitions using catalog items for which a price validation can be activated. In this case, they receive the most recent information about the price of the catalog item. The price entered in such pur­ chase requisitions can also be transferred to the follow-on purchase orders. You can assign a source of supply from the proposed possible sources of sup­ ply, or you can manually assign a supplier. When you purchase materials or services, you can specify an account assignment. define You can a value limit for unplanned services or materials, that is, materi­ als and services that cannot be in detail at the time of ordering, by specified creating a purchase requisition limit item. Purchasers can also modify self- service requisitions. You can also implement an approval process using the for purchase workflow requisitions. You can determine the approver using responsibility manage­ ment. You can assign a source of supply to the items in a purchase requisition and process them. If no source of supply is available in the system or if several po­ tential sources of supply exist, you can also create a request for quotation to find the most suitable supplier. You can optimize the purchasing process by bundling several purchase requisi­ tions into one purchase order. Alternatively, you can also create a purchase contract if required. If the sources of supply are assigned, you can also plan the automatic creation of purchase orders from requisitions as a background job. find the best possible source of supply. Embedded analytics help suppliers to If no suitable source of supply exists, you can create a request for quotation and send it to Ariba Sourcing. You can create a list of purchase requisitions based on different attributes, such as the supplier, a material, or an account assignment. specific You can select purchase requisitions and trigger a mass change for Making mass changes to purchase requi­ values. sitions SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 127

128 Key Feature Use workflow Using the approval Approvers can get an overview of all purchase requisitions they are responsible for. You can use the flexible workflow for purchase requisitions with either the automatic, one-step, or multi-step approval. You can approve or reject pur­ define chase requisitions and add comments. You can recipients using either a role or a user-based assignment and select whether the approval step is to be completed by one or all of the recipients. While using the flexible workflow, critical changes applied to a purchase requi­ sition will retrigger the workflow. Situations handling When a contract is created that can be assigned to an existing open purchase requisition, the system the purchaser responsible for the purchase notifies requisition and asks whether the contract should be assigned. For more infor­ mation on how to determine the purchaser responsible, see Responsibility Management [page 186 ] . 2.11.5.3 Purchase Order Processing Business Background specific quantity of material at a A purchase order is a request or instruction to an external supplier to deliver a certain point in time, or to perform services within a specific period. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 128

129 Key Features The following table explains the key features available: Use Key Feature Managing purchase orders When you create a purchase order, you can base it on a purchase requisition, or use an existing purchase order, an info record, or a contract as a reference. different The purchase order can, for example, contain delivery dates, account assignments, texts, and partners. When you use a contract reference, a con­ is initiated. tract call-off You can also create a new purchase order from scratch. You can change pur­ chase order data depending on the existence of follow-on documents, such as a goods receipt, or an invoice. When you purchase materials or services, you can base the account assign­ ment on internal orders and cost centers, for example, and assign a purchase specific order item to several accounts. If you want to order a material or serv­ ice for which the account assignment is unknown, you can leave the account assignment empty and enter the details during service entry sheet processing. You can request a service performer, and you can create limit items specific when procuring services. Once the services have been performed, their exact price and quantity must be recorded in the service entry sheet. You can also defines a limit for unplanned materials. create a free-text item that You can see whether or not a purchase order is relevant for Intrastat reporting. You can use the checks related to International Trade Compliance [page 47 ] . You can list purchase orders based on attributes such as the supplier, a mate­ rial, or a plant. Using the approval process You can use the workflow for purchase orders with either the auto­ flexible matic, one-step, or multi-step approval. You can approve or reject purchase or­ ders. You can forward approval items and add comments and attachments, workflow item from approval if you have the required and you can withdraw a authorization. All purchase orders that you need to approve or reject are auto­ matically visible for you. Whether or not a purchase order needs to be ap­ proved or whether it is released automatically depends on the settings that were made during the workflow configuration process. You can see the details and status of approval items. Managing price history details of purchase You can display and analyze price history details and price variations of pur­ chase orders. orders Making mass changes to purchase orders You can select purchase orders, purchase order items, and schedule lines to values. You can then monitor these mass trigger a mass change for specific and monitoring them changes. You can also simulate the changes first and then monitor them, using simulated jobs or mass change jobs. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 129

130 Key Feature Use You can check the status of supplier confirmations Monitoring follow-on processes as well as the status of cre­ ated goods receipts and supplier invoices. If a purchase order is created for which a confirmation Situations handling is expected, the system sends a notification to the purchaser who created the purchase order. The no­ is sent 5 days before the confirmation date. tification Purchase Order Collaboration (Ariba Network 2.11.5.4 Integration) Business Background In this process you can collaborate with your suppliers via the Ariba Network. You do this by exchanging purchase-order-related cXML messages between SAP S/4HANA and the Ariba Network. Key Features The following table explains the key features available: Key Feature Use Sending purchase orders You can send purchase orders as well as changes to purchase orders or cancel­ lations from SAP S/4HANA to the Ariba Network. The following item types are supported: ● Standard items Limit items ● ● Third-party items ● Service items (for external services) Purchase orders can be transferred including attachments they have at header level. Receiving confirmations You can receive purchase order confirmations from your suppliers via the Ariba Network. You can receive service entry sheets from your suppliers on the Ariba Network . Receiving service entry sheets (for exter­ , you can approve or reject them. The status is transferred to In SAP S/4HANA nal services) the Ariba Network. Once a service entry sheet has been approved, suppliers can create an invoice for the external services. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 130 PUBLIC

131 Key Feature Use notifications You can receive advanced shipping from your suppliers via the Receiving advanced shipping notifications SAP S/4HANA Ariba Network, which creates inbound deliveries in . Sending goods receipts (for materials) You can send goods receipts to your suppliers on the Ariba Network to inform them that you have received material items. On the Ariba Network, suppliers see whether a part of the delivery or the full delivery has been received. You can monitor and troubleshoot the outbound cXML messages using Monitoring SAP S/ Output Management. You can resend or cancel such messages, and 4HANA you can display the Application Log. Service Purchasing and Recording 2.11.5.5 Business Background In addition to their own workforce, many companies employ external service providers. Depending on the nature and the complexity of the services and of the related processes, you can choose either external services or lean services to best meet your business requirements. Key Features The following table explains the key features available: Use Key Feature You can use service purchasing for a wide range of services, such as planned Purchasing services and unplanned maintenance and construction or consulting services. When you request services from your suppliers, you can specify all the services that may be procured in detail or you can just set a limit in the purchase order. It is possible to do the cost assignment at a later point in time. Entry of services actually performed You enter services that have actually been performed by means of service en­ try sheets. In doing so, you reference the purchase order. Each individual serv­ ice is recorded together with quantities and values. If a value limit for unplan­ specifica- ned services has been set in the purchase order, you can maintain tions for such services at the time you record their actual performance. The services are recorded with their precise value, and the system checks that the limit has not been exceeded. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 131

132 Key Feature Use After you have recorded the services that have been performed in the service Acceptance of services performed (availa­ ble for external services) entry sheet, the persons responsible can check that the work is satisfactory and formally accept the services. Approving service entry sheets (available The flexible workflow allows you to define one or more approvers and to use ei­ for lean services) ther the automatic, one-step, or multi-step approval. All service entry sheets that need to be approved or rejected are automatically visible to the approvers. Verification In the final step, you ensure that the service provider’s invoices are correct. of invoices for services 2.11.6 Procurement Analytics 2.11.6.1 Real-Time Reporting and Monitoring Business Background The procurement overview provides you with a set of actionable cards that you can easily rearrange as required. You no longer need to start different transactions and reports separately: both operational and analytical cards are visible on one single page. You immediately see your most relevant tasks and can navigate to KPI drilldowns, worklists, or object pages to get more detailed information and take immediate specific action. In addition, the monitoring of purchasing document items enables you to immediately assess and resolve critical situations for your company. The supplier object page is enhanced by analytical real-time insights into supplier evaluation scores, purchase requisition types, as well as purchasing and off-contract spend. Key Features The following table explains the key features available: Key Feature Use Operational cards Examples of operational cards are the monitoring of contracts, so that you see which contracts are about to expire and require your attention, as well as pur­ chase requisitions, showing you where a source of supply is missing and needs to be assigned. You can also monitor supplier confirmations that are overdue, or that deviate in quantity or delivery date from the purchase order. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 132 PUBLIC

133 Key Feature Use Examples of analytical cards are the actual and planned purchasing spend by Analytical cards supplier and material group, and the monitoring of the supplier performance by analyzing operational data and questionnaires. You can filter the content of cards by various criteria, such as by suppliers, pur­ Filtering chasing categories, material groups, and purchasing groups. This enables you to make informed decisions and take immediate action. Monitoring With the monitoring apps, you can identify the following, for example: ● overdue purchase order and scheduling agreement items ● confirmations missing supplier request for quotation items for which no bids were submitted in time for ● the deadline ● expiring purchase contract items ● variances of material prices in purchase contracts and info records Apart from the regular filter and table section, analytical elements such as vis­ ual filters and analytical charts are also provided. These elements support users in immediately identifying the most critical business issues. From the monitoring apps, you can navigate to related apps to trigger follow-on actions, or perform the necessary action directly in the monitoring app (you can, for example, extend the validity of a contract or its target value). In addition to the KPIs, multi-dimensional reports for analyzing the purchasing spend as well as the service spend are available. Users can define dimensions, such as the plant or company code, and measures, such as the spend or the expected spend based on purchase order schedule lines, using drag and drop. 2.11.6.2 Spend Visibility Business Background The data that simplifies your daily work can be visualized in various chart types and by criteria such as supplier, purchasing group, purchasing category, or material group. The key performance indicators allow you to directly navigate into other apps, where you can immediately solve business issues. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 133

134 Key Features The following table explains the key features available: Use Key Feature efficiency. Specifi- Purchase requisitions Procurement organizations are measured according to their cally in the area of managing purchase requisitions, you can notably increase the efficiency and automation of procurement processes. efficiency Key Performance Indicators (KPIs) help measure this and provide real-time insight into areas of improvement, such as the average approval time of a purchase requisition, or changes made to a purchase requisition item. Purchasing and invoice spend To identify cost-saving opportunities, it is essential that you see the purchasing and invoice spend under management. The available KPIs provide insight into purchase order value over time, future purchasing spend based on purchase requisitions that are currently in approval, purchasing spend by ABC classified suppliers, material groups and purchasing groups, invoices without purchase order reference, and invoice price changes over time. You can, for example, re­ trieve the order value for all purchase orders over time, and determine all cur­ rent values of all purchase orders in the system. Contracts and scheduling agreements Purchasers can manage contracts and make sure that the right con­ efficiently tracts are in place at the right time when needed. They are able to do so by identifying maverick spend and contracts that are not used, contracts that will expire soon, and contracts or scheduling agreements that are almost con­ sumed by comparing target values or target quantities with released values or released quantities. Supplier evaluation You can determine the overall score of a supplier in an organization based on the weighted average of the single scores for quantity variance, price variance, time variance, as well as quality scores based on inspection lots and quality notifications. Supplier evaluation scorecards that result from questionnaires enrich these operational supplier evaluation scores. A combined real-time view across operational and questionnaire-based scores provides a holistic view of your supplier’s performance. You can also specify individual weighting and scoring factors per criterion and per purchasing category. Additionally, procurement dashboards for purchasing spend and off-contract spend in SAP Analytics Cloud can be accessed directly from SAP S/4HANA, showing purchasing data in real time. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 134 PUBLIC

135 2.11.7 Invoice Management Invoice Processing 2.11.7.1 Business Background The invoice processing follows the processes of purchase order and goods receipt. A supplier invoice is a document from a supplier for materials that were delivered or services that were performed. You can create a supplier invoice manually. The invoice verification checks the supplier invoice for accuracy with regard to content, price, and accounting. You can search for supplier invoices depending on the status, and you can release blocked invoice items. When you post the invoice, the data from the supplier invoice is saved in the system and both an invoice document and an accounting document are generated. Key Features The following table explains the key features available: Key Feature Use You create a supplier invoice after receiving the invoice from the supplier. You Managing supplier invoices can create the supplier invoice with reference to a purchase order or without any reference. You can select the reference purchase order using the corre­ sponding delivery note or service entry sheet, for example. The invoice verification checks the supplier invoice for correctness. Before posting the document, you can simulate the supplier invoice in order to display the account movements. In addition, one clerk can park the invoice document and another clerk can complete the process and post it. When the invoice re­ duction functionality is used during the creation of an invoice, output manage­ ment is triggered to inform the supplier. You can schedule the output as a regu­ lar job. Relevant for China: The integration of supplier invoice verification with the Golden Tax System (GTS) is supported. Managing supplier invoices with reference a You can post a supplier invoice to a purchase order limit item that defines to purchase order limit items value limit either for unplanned materials or for unplanned services. In this case, you check the invoice amount directly against the value limit. Working with supplier invoice lists You can search for supplier invoices and use the search result as a supplier in­ voice worklist that allows you to display the detail data. For example, you can display a list of blocked supplier invoices and release or reverse them. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 135

136 Key Feature Use If you want to release invoices manually, you can select the blocked invoices us­ Releasing supplier invoices filters. Invoices can also be released automatically. In this case, the ing different system checks each blocking reason to see whether it is still valid. You can display supplier invoices that are assigned to you by workflow. You can Approving supplier invoices approve or reject the corresponding work item. If necessary, you can forward a different work item to a employee for further processing. You can use the work­ for example, to approve posted supplier invoices that are blocked for pay­ flow, ment. Working with goods receipt and invoice You can create and edit goods receipt and invoice receipt clearing documents, and cancel the created documents if required. receipt clearing accounts Consignment and pipeline settlement For goods withdrawals from consignment stocks or from a pipeline, you do not expect an invoice from the supplier. Instead you can settle posted withdrawals and return deliveries yourself and send the supplier a statement of the settle­ ment. You can schedule and monitor recurring, supplier invoice related activities as a Supplier invoice jobs Evaluated Re­ background job. For example, you can choose the job template . ceipt Settlement You can monitor purchase orders for which a down payment is planned. Fur­ Down payment monitoring for purchase orders thermore, you can create down payment requests. If down payment data is maintained in the purchase order, you can post down payment requests and down payments for this purchase order. When you enter an incoming invoice, you can select the down payments and post the down pay­ ment clearing documents together with the invoice document. 2.11.7.2 Invoice Collaboration (Ariba Network Integration) Business Background In this process you can collaborate with your suppliers via the Ariba Network. You do this by exchanging invoice-related cXML messages between SAP S/4HANA and the Ariba Network. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 136

137 Key Features The following table explains the key features available: Use Key Feature You can receive invoices from your suppliers via the Ariba Network. The cXML Receiving invoices message always transfers a PDF version of the invoice. The transfer of addi­ tional attachments is also supported. For invoices created on the Ariba Network, you can perform invoice verification SAP S/4HANA . Alternatively, you can use SAP Ariba Invoice Management for in verification. invoice SAP S/4HANA via the In this case, the invoices are sent to Ariba Network after is performed. Note that service-related invoi­ verification ces are not supported if you integrate SAP Ariba Invoice Management for in­ voice verification. Error-free invoices can be posted automatically in SAP S/4HANA . Invoices with errors can be saved with errors and can later be processed manually. Sending CC invoices SAP S/4HANA as CC invoices You can transfer supplier invoices created in (carbon-copy invoices) to your suppliers via the Ariba Network. Such invoices are sent for status tracking and follow-on processes. Status updates for the received invoices or for CC invoices are sent to your Sending status updates for invoices suppliers via the Ariba Network. For example, when an invoice is posted, paid, reversed, or when a blocked invoice is released, a status update is sent. Monitoring You can monitor and troubleshoot the cXML messages using the SAP Applica­ tion Interface Framework (AIF), that includes information from the standard application log. For example, you can restart or cancel cXML messages. Related Information Dynamic Discounting (Ariba Network Integration) [page 40 ] Payment Advice Collaboration (Ariba Network Integration) [page 41 ] SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 137

138 2.12 Supply Chain Basic Inventory, Warehousing, and Transportation 2.12.1 Inventory Analytics 2.12.1.1 Business Background Inventory Analytics covers the following inventory management tasks: Performance of physical inventory (stocktaking) and stock adjustments both for a company’s own stock ● and for special stocks on periodical basis ● Evaluating and displaying of documents (for example, material documents) and stock information ● Check reports and analysis reports ● Creating and managing of reservations at plant level, storage location level, or batch level to ensure the availability of materials for planned goods movements Inventory management is mainly performed by employees managing the company's stocks at plant and storage location level. For posting goods movements, see Goods Issue and Goods Receipt . SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 138

139 Key Features The following features are available: Use Key Feature CWM This feature allows you to create CW materials. Goods movements and stocks of CW ma­ terials are processed in two quantities with a variable proportion. The base quantity of CW materials is used to operate the logistics of a process, while the parallel quantity is used to valuate the goods movements and stocks. This allows you to logistic define properties of a material. quantities and inventory values based on different This feature enables you to work with a CW material that has two units of measure for warehouse stock as well as for material movements: the base unit of measure and the parallel unit of measure for valuation determination. The purpose of a separate valuation unit of measure is to ensure that a material can be managed with one quantity the valuated stock and another quantity having influencing no impact on the valuated stock. For example, a CW material uses pieces and kilograms. The quantity in kilograms determines the valuated stock, but this is independent of the number of pieces involved. specific industry sectors, such as the food proc­ This feature supports requirements of essing industry, that need a separate valuation unit of measure. Physical inventory / inventory This feature allows you to perform the periodic process of making necessary adjust­ ments to stock on hand after a physical count. The benefits are: count and adjustment ● Transparent view on the stocks currently available ● Efficient processing of inventory adjustments The process begins with the generation of the required inventory count sheets. Materials can be blocked here for posting during the physical inventory. Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials. Af­ terwards, the count result is entered in the system and then any discrepancies against final counts the system quantities are reviewed. The inventory may be recounted until are accepted and inventory are posted. differences In addition, this feature enables you to perform the following physical inventory proce­ dures: ● Sample-based physical inventory The sample to be inventoried is determined on a mathematical-statistical basis. A physical inventory count and an inventory adjustment posting are performed for the items in the sample. Based on the inventory adjustment posting, an extrapolation provides an estimated value for the entire stock. If the extrapolation is successful, it is assumed that the book inventory is correct. Note that the sample-based physical inventory is not available for EWM-managed storage locations. ● Cycle Counting The materials to be inventoried are counted at regular intervals during a fiscal year. You can use the cycle counting approach, for example, to ensure that stocks of fast- moving items are checked more frequently than slow-moving items. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 139

140 Key Feature Use The reporting feature includes a range of functions and reports that provide extensive in­ Reporting formation on all materials and their stock data: Reports to evaluate and display, for example, the following documents: Material documents ● Material documents for which at least one reason for movement has been specified ● ● Accounting documents available for a selected material specific batch of a material ● Sales documents that contain a Reports to evaluate and display, for example, the following stock information: ● Total stocks of given materials at plant and storage location level ● Stock in transit ● Stock situation of a given material in selected plants including consumption statis­ tics and current stock/requirements list ● Vendor consignment stocks ● Consignment and returnable packaging stocks at customer's site Stock in a particular time period ● ● Remaining shelf life of batches ● Valuated sales order stock and valuated project stock ● Stock that is made available to the supplier (subcontractor) and stored on the sup­ plier's premises but remains the property of your enterprise ● Total stock quantity and the total stock value for a material at plant and storage lo­ cation level Check reports and analysis reports, for example: Comparison of goods receipt quantities and values relating to a purchase order with ● invoice quantities and values for the same purchase order ● Analysis of rounding differences that resulted from conversion between units of en­ try and base units ● specific time period Analyzing average stock value and inventory turnover within a ● Displaying and deleting data that you have held for further processing but not yet posted ● Identifying overdue stock transfers ● Identifying overdue materials that were already posted into the non-valuated goods receipt (GR) blocked stock Identifying slow or non-moving materials ● Reservations This feature enables you to make a request to the warehouse to keep materials ready for withdrawal at a later date and for a certain purpose. The purpose of a reservation is to ensure that a material will be available when it is needed. This simplifies and accelerates the goods movements process. A reservation for goods issue can be requested by vari­ ous departments for various account assignment objects (such as cost center, order, as­ set, etc.). A reservation can be taken into account by material requirements planning, which means that required materials are procured in time if they are out of stock. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 140 PUBLIC

141 Key Feature Use Goods movements are managed by period. For goods movements to be posted to the Period closing correct period, you set the correct period whenever a new period starts. This feature allows you to display price change documents that specify the valuation Displaying price change docu­ ments price of materials. Monitoring and adjusting inven­ You have various options for monitoring and adjusting inventory processes supporting day–to–day tasks based on for example recent inventory counts, warehouse throughput tory process tasks history, or outbound delivery lists. Analyzing and evaluating inven­ You have various options for analyzing and evaluating inventory management processes tory management Key Perform­ based on for example stock value by stock type, warehouse throughput history, or over­ due materials. ance Indicators (KPIs) Predictive analysis on transfer You can use this feature to perform predictive analysis with a proposed delivery date for posting a stock transport order. This analysis gives you a statistically-based forecast if a goods receipt can be successfully completed in time. Output processing A physical goods movement generally requires a document in printed form, for example, to serve as a transfer document (goods receipt slip, goods issue slip) for the warehouse or as a label for identification of the material (pallet slip). This feature enables you to generate corresponding documents and to specify that the output is printed or that it is produced and sent by other means, for example by e-mail. 2.12.1.2 Goods Issue 2.12.1.2.1 Logistics Execution Business Background The goods issue step for outbound deliveries is the final activity you complete before you send goods to a customer. An effective and efficient outbound delivery process enables you to plan accordingly for the picking, packing, and shipping of your outbound deliveries. Outbound deliveries are created when the following processes occur: ● Sell from stock: a customer orders goods from your company ● Returns: you return goods to your supplier ● Stock transfer: you transfer goods from one plant to another plant SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 141

142 Key Features The following table explains the key features available: Use Key Feature You use this feature to record shipping-planning information, monitor the sta­ Outbound delivery processing tus of shipping activities, and document data gathered during the outbound delivery process. When you create an outbound delivery, shipping activities such as picking or delivery scheduling commence. Data that is generated dur­ ing the outbound shipping process is included in the delivery. The outbound delivery supports all shipping activities. An outbound delivery can be created as follows: With reference to a sales order ● With reference to a stock transport order ● ● Without any reference Picking This feature enables you to move outbound goods from their storage location to a staging area. Once the goods are in the staging area you can prepare them for shipping. Packing With this feature, you can select outbound goods for packing and assign them to handling units (HUs). Goods issue This feature enables you to post a goods issue. Once you post a goods issue, you initiate the movement of goods from your company to your customer. Your stock is updated to reflect this reduction in goods. 2.12.1.2.2 Inventory Management Business Background Even in a computer-supported inventory management system, the accepted accounting principle of no posting without a document applies. According to the document principle, a document must be generated and stored in the system for every transaction/event that causes a change in stock. The Goods Issue features enable you to post goods movements that lead to a reduction in warehouse stock. Goods issue postings are mainly performed by employees managing the company's stocks at plant and storage location level. For further inventory management features, see Inventory Analytics . SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 142 PUBLIC

143 Key Features The following features are available: Use Key Feature Posting goods issues This feature allows you to post, for example, the following goods movements by generat­ ing corresponding material documents: Goods issues ● A goods movement with which a material withdrawal or material issue, a material consumption, or a shipment of goods to a customer is posted. A goods issue leads to a reduction in warehouse stock. ● Scrapping A posting in the inventory management system made if a material can no longer be used. ● Return delivery A delivery returning goods to the supplier for some reason (for example, due to poor quality or because they are damaged), even if the goods receipt has already been posted. If the supplier sends a substitute delivery, the return delivery can be refer­ enced to the goods receipt. This feature enables you to perform stock transfers from one storage location to another Transfer posting and stock transfer storage location as well as changes in stock type or stock category of a material. It is ir­ relevant whether the posting occurs in conjunction with a physical movement or not. Stock transfers can occur either within the same plant or between two plants. 2.12.1.3 Goods Receipt Logistics Execution 2.12.1.3.1 Business Background The goods receipt step for inbound deliveries is the final activity you complete before you receive goods into your company. The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place. You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time. An and efficient inbound delivery process enables you to plan for the effective putaway, packing, and storing of goods that arrive into your company. Inbound deliveries can be derived from a purchase order document or they can be part of a two-step stock transfer process. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 143

144 Key Features The following table explains the key features available: Use Key Feature You use this feature to record planning information, monitor the status of dif­ Inbound delivery processing ferent activities, and document data gathered during the inbound delivery process. When you create an inbound delivery, activities such as putaway com­ mence. Data that is generated during the inbound delivery process is included in the delivery. The inbound delivery supports all goods receipt activities. An in­ bound delivery can be created as follows: ● With reference to a purchase order ● With reference to a stock transport order, as the second step for the re­ ceiving plant Packing With this feature, you can select inbound goods for packing and assign them to handling units (HUs). Putaway You can use this feature to put goods away in storage bins in your warehouse. Goods receipt This feature enables you to acknowledge that you have received the goods from your supplier. Your stock is updated to this increase in goods. reflect 2.12.1.3.2 Inventory Management Business Background Even in a computer-supported inventory management system, the accepted accounting principle of no posting without a document applies. According to the document principle, a document must be generated and stored in the system for every transaction/event that causes a change in stock. The Goods Receipt features enable you to post goods movements that lead to an increase in warehouse stock. Goods receipt postings are mainly performed by employees managing the company's stocks at plant and storage location level. For further inventory management features, see Inventory Analytics . SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 144

145 Key Features The following features are available: Use Key Feature This feature allows you to post, for example, the following goods movements by generat­ Posting goods receipts ing corresponding material documents: ● Initial entry of stock balances An operation performed once at the start of the productive life of the system in which physical stocks on hand or book inventory balances from a legacy system are recorded as opening book balances. ● Goods receipts A goods movement with which the receipt of goods from a supplier or from produc­ tion is posted. A goods receipt leads to an increase in warehouse stock. Transfer posting and stock This feature enables you to perform stock transfers from one storage location to another transfer storage location as well as changes in stock type or stock category of a material. It is ir­ relevant whether the posting occurs in conjunction with a physical movement or not. Stock transfers can occur either within the same plant or between two plants. 2.12.1.4 Basic Shipping Business Background Basic Shipping in SAP S/4HANA supports the entire transportation chain. You can manage the transportation demands by planning, tendering, and settlement of freight processes. Also, you can book carriers in accordance with the requirements of hazardous goods. Basic Shipping supports the following end-to-end processes: ● Domestic and international transportation for the shipper industry ● Inbound and outbound freight management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 145

146 Key Features The following table explains the key features available: Use Key Feature Master data and transportation network You can create and use central master data such as business partners and products for transportation-related processes. In addition, you can use trans­ data to set up your transportation network, for example, lo­ portation-specific cations, transportation lanes, and default routes. You can use freight agreements in Basic Shipping. An agreement is a contract Agreement management between business partners that details their commitment to conduct business with each other in an agreed manner. It includes contractual data, such as the following: ● Organizational unit, for example, the purchasing organization Involved parties, for example, the ordering party or carrier ● ● Terms of payment ● Validity dates Agreement management is integrated with charge management in Basic Ship­ ping. Basic Shipping calculates transportation charges based on the master data stored in calculation sheets, rate tables, and scales that are part of the agreement. Charge management You can use charge management to set up the master data that the system uses to calculate transportation charges. You can calculate the charges for transporting goods between locations based on the rates you maintain in a rate table. The system uses master data, such as agreements, calculation sheets, and rate tables, when calculating transportation charges. In the integrated logistics process, Basic Shipping uses inbound or outbound Logistics integration deliveries to create freight units. In addition, the logistics integration allows you to continuously react to changes of original documents that occur in the sys­ tem. Freight order management In freight order management, you can create and edit freight orders and freight bookings. These documents contain information required for transportation planning and execution, such as source and destination locations, dates or times, and product information, and resources used. You can create freight or­ ders directly or in transportation planning. For example, you can assign freight units to the freight orders, perform manual carrier selection, assign the freight orders directly to a carrier as a suborder, or perform tendering. Further, you can have the system calculate the transportation charges. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 146 PUBLIC

147 Key Feature Use You can use this process to send out freight requests for quotation (freight Basic tendering RFQs) to one or more carriers. You can send the freight RFQs manually. You can also use a direct tendering process to send a road freight order (road FO) directly to a specified carrier without creating a freight RFQ. The carrier can confirm or reject the road FOs. Direct tendering can be created and started manually by the user. In basic planning, freight units are created on the basis of inbound or outbound Basic planning deliveries. You can manually assign freight units that are based either on in­ bound or outbound deliveries to capacities such as freight orders. The system automatically creates freight documents (that is, freight orders or freight book­ ings) depending on the settings that you have configured in Customizing. Freight settlement In freight settlement, a freight order or freight booking provides the basis for the freight settlement document or a credit memo for a freight order. You use verification of an invoice, which has been received this function to trigger the from a supplier or carrier, against a freight settlement document. Dangerous goods You can use product safety and stewardship (PS&S) services in Basic Shipping to ensure the safe transportation of dangerous goods in accordance with legal regulations. 2.12.1.5 Basic Warehouse Management Business Background Basic warehouse management provides support with and real-time transparency into managing and processing material movements flexibly for optimized warehouse operations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 147

148 Key Features The following table explains the key features available: Use Key Feature Basic warehouse management supports you from the very beginning, starting Warehouse Structure with structuring your warehouse, as follows: ● You define the physical structure of your warehouse or warehouse com­ plex and map this in the system. You define the individual storage types, such as high-rack storage area, ● bulk storage area, or picking storage area, and join them together under one warehouse number. You create storage bins for each storage type. Basic warehouse manage­ ● ment uses these to manage stock information about all products in the warehouse, at storage bin level. You can map your entire warehouse complex in detail in the system, down to Inventory Management storage bin level. This gives you an overview of the total quantity of each prod­ uct in the warehouse. You can also always see exactly where a specific product is, at any time, in your warehouse complex. You can manage the product quantities in different stock categories on the fol­ lowing levels: ● At storage bin level In intermediate locations ● On resources ● In handling units ● ● In nested handling units You can also store and manage the following kinds of product in your ware­ house: ● Batch-managed products ● Products with serial numbers ● Catch weight products You can also manage the following special stock in your warehouse: ● Vendor consignment stock ● Project stock ● Customer order stock SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 148

149 Key Feature Use A handling unit is a physical unit consisting of packaging materials (load carri­ Handling Units ers or packing material) and the goods contained in it. A handling unit is always a combination of products and packaging materials. All the information con­ tained in the product items, for example, about batches, is retained in the han­ dling units and is always available. Handling units can be nested, and you can put several handing units into an ex­ isting handling unit and manage multi-level nested handling unit structures.. identification number that you can A handling unit has a unique, scannable construct according to industry standards such as EAN 128 or SSCC. You can receive products from the following sources: Inbound Processing Vendors ● Production ● ● Other parts of your company ● Customer returns You can create and confirm multi-step putaway tasks for the putaway of the products, including the following steps: ● Unloading ● Quality inspection Deconsolidation ● Final putaway ● You can schedule putaway activities in one of the following ways: ● Automatically during inbound deliveries ● Regularly at specific times ● Manually, using overviews of the daily loads You can optimize your warehouse capacity and material by using putaway flow strategies. These simplify the search for appropriate storage bins for your in­ coming products by automatically determining suitable storage bins for the in­ coming products. Note that many of these strategies are based on the use of handling units. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 149

150 Key Feature Use You can pick products and send them out of your warehouse for the following Outbound Processing scenarios: ● Send ordered product to external customers, or internal customers, such as other plants ● Supply products to production Return products to vendors ● Supply products to internal consumers, for example, a cost center ● You can create and confirm goods issue documents for the delivered products. You can optimize your warehouse capacity and material flow by using stock re­ moval strategies. These simplify the physical process of picking by determining the optimal picking bin for the product. You can gather warehouse tasks and enable mobile execution and confirmation using radio frequency (RF) transactions. This allows warehouse workers to per­ form their tasks with greater efficiency and communicate statuses faster, using mobile RF devices. Internal Warehouse Movements You can plan, create and confirm tasks for moving products to different areas inside the warehouse, for example, replenishment of products in picking bins. You can also perform ad-hoc internal warehouse movements, using RF trans­ actions or from the warehouse management monitor. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 150 PUBLIC

151 Key Feature Use You can plan, conduct and confirm Physical Inventory regular counts of actual product quantities in the warehouse and compare the physical stock to the data in the system. Following the count, you can update the accounting data for the stock in the case of between the quantity of physical stock and the quantity in differences the system. This counting can be performed in the following ways: ● Annual inventory You record all stocks on a certain day or within a fairly short period (in fiscal year). During this time, you can prohibit most cases at the end of the stock movements. ● Ad-hoc physical inventory You carry out inventory-taking for certain storage bins or products. You fiscal can do this at any time during the year. For example, an ad hoc phys­ ical inventory may become necessary because a product has been dam­ aged or because you have received complaints from a customer about a product. ● Cycle counting You use cycle counting to carry out a physical inventory of your stocks at fiscal year. regular intervals during a You can specify the intervals or cycles at which you are going to carry out the physical inventory for specific products by allocating these products to different classes. For example, this allows you to inventory fast-moving products in your warehouse more frequently than slow-moving ones. ● Low-stock or zero-stock checks You can perform low-stock checks when working with product tasks dur­ ing the picking process, based on a limit value for the storage bin and product (usually a number that is easy to check at a glance). During the physical removal of stock from storage, you check whether the storage bin reflects the actual stock situation. data If the limit is set to zero, it is a zero-stock check. You can trigger a low-stock check manually or the system can trigger it au­ tomatically when the stock in the bin falls below the limit. ● Putaway physical inventory You can carry out physical inventory for a storage bin at the time of the first putaway in this bin in the fiscal year. During the current year, no further physical inventory is performed fiscal for this storage bin, even if a completely different quant is stored there at the end of the year, or if the bin is empty. ● Recounting If you have doubts about a count result, you can trigger a recount.  Note Basic warehouse management does not support sample-based physical inventory. An interface for integration to a partner solution is available. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 151

152 Key Feature Use You can use the warehouse management monitor to keep constantly up-to- Warehouse Management Monitor date as to the current situation in the warehouse, and to initiate appropriate re­ sponses to situations that arise. The warehouse management monitor gives you full transparency about the fol­ lowing attributes of your warehouse: ● Warehouse activities ● Stock and bins ● Resources ● Planned movements ● Executed movements ● Inbound deliveries ● Outbound deliveries The warehouse management monitor also contains alert monitoring capabili­ ties, which highlight actual and potential problematic situations in the ware­ house, and provides exception handling tools. Analytics You can use outbound delivery order CDS views to perform outbound workload analysis and progress monitoring and to perform outbound execution quality analysis. Resource Management A resource is an entity representing a user or equipment that can perform work in the warehouse. You can use resource management to maximize the efficiency of your ware­ house processes in the following ways: ● Facilitate the management and distribution of work ● Optimize the selection of warehouse orders for resources requesting work This enables effective monitoring and controlling of resources. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 152 PUBLIC

153 Key Feature Use You can check whether delivered products satisfy your quality criteria as part Quality Management of the inbound process. Basic warehouse management is integrated into Quality Management using in­ spection lots of origin 17. You use inspection rules to determine whether an inbound delivery item is in­ spection-relevant and to specify the details of the inspection, for example, in­ spection type, location-independent stock type, or process step performed in the warehouse. Quality Management supports the following scenarios: ● Receiving from external sources like vendor or other plants ● Receiving from production ● Partial usage decision ● Inspection lot summary to bundle multiple goods receipts ● Inspection of stock inside the warehouse ● Recurring inspections ● Customer returns inspection with integration into Advanced Returns Man­ agement ● Presampling in production ● Acceptance sampling ● Goods receipt control by quality information record SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 153

154 Key Feature Use You can integrate the supply of products to production and the receipt of prod­ Production Integration ucts from production into your warehouse. You can also return unused and un­ needed parts back into stock in your warehouse. Delivery-Based Production Supply With delivery-based production supply, you can supply products to production based on the following order strategies: ● Production Orders ● Process Orders Kanban ● You can stage the products required for a production or process order in the following ways: The required products are pick parts in the case of individual orders, or re­ ● lease order parts in the case of multiple orders, which you stage in time and in the required quantity based on a production or process order. The required products are products that you use continually, which you ● stage independently of existing orders. The required products are materials stored in a crate or container, which ● you stage independently of manufacturing orders using the special method Kanban. Advanced Production Integration Advanced production integration optimizes the supply and receipt of products in the following ways: ● You can plan the staging of products for production over a period of time, allowing you to use the space on your production supply area more flexi- bly. ● You can receive packed products as soon as they arrive from the produc­ tion line using radio frequency. flows between the warehouse This allows you to synchronize the material and production promptly, and improves inventory visibility. Advanced production integration allows you to stage and consume the materi­ als and receive the semi-finished products or finished products in basic ware­ house management. You can use advanced production integration for produc­ tion orders in discrete manufacturing or for process orders in process manu­ facturing. There is an integration between SAP Manufacturing Execution and advanced production integration. This means that SAP Manufacturing Execution can trig­ ger the creation of staging warehouse tasks for the components, the consump­ tion of components, and the receiving of finished goods in basic warehouse management. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 154 PUBLIC

155 2.12.2 Logistics Returnable Packaging and Empties Management 2.12.2.1 Recycling Administration 2.12.2.1.1 Business Background In many countries, environmental law obliges companies to provide certification to account for the packaging finished materials produced and the number of products manufactured and brought to the market, and to collect and dispose of these materials and products at the end of the product life cycle. These kinds of regulations, along with an increased public awareness of environmental issues, provides companies today with new challenges. In addition to the standard manufacture and sale of products, companies are often now responsible for the correct disposal and recycling of their waste products. Most companies absolve themselves of the duty to perform these tasks themselves by collaborating with recycling partners such as the German Duales System Deutschland (DSD), who provide a general collection system in return for a license fee. Other examples include Eco Emballages (France), Conai (Italia), Elektro Recycling Austria (ERA, Austria), Stiftung Elektro-Altgeräte Register (EAR, Germany), and (Germany). The recycling partners organize the GRS Batterien collection, sorting, processing, and recycling of the waste packaging. The focus of the recycling administration features is the item-based or weight-based fee calculation for specific materials, as well as end-to-end transparency and implementation of the legal reporting requirements to environmental authorities. Key Features The following features are available: Key Feature Use Determination of the most This feature provides functions to analyze the data material (for example, condition and price- recycling partner different price analyses), which you can use to compare the performance of effective recycling partners. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 155

156 Key Feature Use This feature allows you to issue the data to be declared either electronically in the form Automatic generation of forms of data medium exchange (DME) or on paper as a form. For the declaration, the system for the selected recycling part­ ner first generates a document that is posted in the declaration system. You can then gener­ ate the required documents from this document in accordance with the requirements of the recycling partners. verification This feature fulfills country-specific reporting requirements. In your periodical declara­ Certified flow in the tion, you state the information and totals for all declared articles as a quantity certified verification at the level of in­ period under consideration. This feature enables a dividual documents and items. Use of existing material informa­ This feature allows you to access existing material master data and to enhance it. This tion configurable interfa­ allows for optimal integration with other features. Using individually ces, you can import data from third-party systems and process it further with declara­ tion and analysis functions. Automatic determination of For generating declarations, recycling administration features automatically obtain im­ flow quantity portant information from the sales and materials management areas. Cost control and controlling with Recycling administration features are fully integrated with the following features: In the and controlling finance, sales, finance area, you enter a recycling partner as a supplier. In the controlling area, a budget is generated for settlement with recycling partners on the basis of the data processed features with recycling administration features. Using sales features, you can evaluate the corre­ sponding billing documents. 2.12.3 Order Promising 2.12.3.1 Available to Promise Business Background Internal sales representatives and order fulfillment managers require mechanisms to configure, execute and monitor availability checks and optimize the distribution of supply. This is particularly important when the confirm requirements is limited. You can use the basic available-to-promise availability of materials needed to (ATP) capabilities to confirm on which date and in which quantity a sales order requirement can be fulfilled. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 156

157 Key Features The following features are available: Use Key Feature Availability Check You can use this feature to determine on which date and in which quantity a based on a checking rule confirmed, specified sales order requirement can be and the current supply situation for the specified material. The availability differing types and their respective check takes concurrent requirements of situation into consideration. The availability check can be exe­ confirmation cuted during order creation and change and during re-scheduling. 2.13 Analytics Technology Process Performance Monitoring 2.13.1 Process Performance Monitoring allows you to monitor and analyze the performance of business processes. notifications about issues in currently This can be used to identify bottlenecks in process execution and to send running processes. A precondition for the usage of Process Performance monitoring is the of S/ configuration 4HANA component Process Observer for creating process-specific logs. 2.13.1.1 Process Observer Process Observer allows you to map business processes executed in the S/4HANA system to an observation process model. The execution of the business processes along with their activities to be monitored is done classifications during process execution. Process performance KPIs such as totals, lead times, and to be evaluated in process performance monitoring are calculated at the same time. Key Features Define ● definitions as business process observation models end-to-end process ● Maintain a repository of application events and map application events to process steps ● Define process performance KPIs (totals, lead times, and classifications) ● thresholds for performance KPIs Define ● Create instances of running business processes and log process execution information (incl. information about the user and transaction) at runtime ● Calculate process performance KPIs for single process instances at runtime ● Review running process instances that are logged with their KPIs in the process monitor SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 157

158 ● Extract data for monitoring and analytics with BI tools Order-to-Cash Performance Monitoring 2.13.1.2 figures to get an overview of the order-to-cash performance in your company. For example, You can check key fields of sales orders, and you can track delivery blocks or billing blocks, detect changes made to critical monitor lead times like order to delivery or goods issue to billing. 2.13.2 Query Designer Business Background Query Design enables you to manage the creation of analytical queries and date functions. Key Features The following table explains the key features available: Key Feature Use Date Function This feature enables you to create date functions that can be used by other apps to calculate single dates and date ranges. Custom Analytical Queries This feature enables you to analyze the queries and prepares a report based on the analyzed data. 2.13.3 Analysis Path Framework Business Background Analysis Path Framework provides business users and managers an intuitive, easy to use analytical tool to perform interactive data explorations and drill-down analyses for root cause investigations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 158 PUBLIC

159 Key Features The following table explains the key features available: Description Key Feature APF-based apps You can use this feature to build and enhance interactive analytical web appli­ Configure cations. Execute APF-based apps APF-based apps enable the user to view and analyze the data of several Key Performance Indicators (KPIs) from data sources. You can flexibly different explore KPIs and their influencing factors step-by-step by drilling down into multidimensional visualizations of data, such as charts or tables. 2.13.4 Predictive Models Business Background Predictive models provide predictive capabilities to your business processes. These models use statistics to predict an unknown outcome, for example, using a predictive model you can forecast when a buyer is likely to negotiate a new procurement contract. Business cases requiring a predictive measure are described as predictive scenarios which manage the lifecycle of the predictive models included within them. You can create your own predictive use cases and scenarios as needed.  Note Predictive models can only provide good predictions when trained properly. The models need to be trained with data where the outcome is known, for example, with historic data. You must retrain your model regularly to ensure predictions created are based on the most recent data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 159

160 Key Features The following table explains the key features available: Use Key Feature Predictive models ● You can train the predictive models with data relevant for your enterprise. ● You can review training status and quality. ● You can activate or deactivate model versions. The active model version is the one used to create predictions for consumption in relevant apps. You can delete any inactive model version(s) that have never been set ac­ ● tive. Predictive scenarios Predictive scenarios manage the lifecycle of predictive models included within them. Predictive scenarios describe a predictive use case by defining a busi­ ness goal, the type of prediction to make, for example, regression or classifica- tion, and the data to use for the prediction. Predictive Scenarios are preconfigured by SAP S/4HANA. SAP S/4HANA pro­ vides an interface through which you can also integrate predictive use cases from another system, currently Predictive Factory. Analytics 2.13.5 Business Background The Analytics framework allows the customers to consolidate business data from virtual data models, different work with real-time data, and build reports. With these reports, customers can easily visualize and interpret the data which in turn will help the decision-makers for better analysis. Key Features The following table explains the key features available: Key Feature Use Query Viewer You can view and choose a virtual data model or browse only authorized ana­ lytical queries. Using these queries, you can configure and visualize data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 160 PUBLIC

161 Key Feature Use You can visualize and comprehend data from virtual data models that KPI Visualization different different business areas. You can configure business metrics, inter­ represent pret and interact with your data in real-time; visualize and analyze the data. This data analysis will help in accurate decision-making. Report Visualization You can create reports for the same KPIs. These reports help you to delve deeper into the business metrics, performances, and you can drill down into the areas that need improvement. 2.14 Enterprise Technology 2.14.1 ABAP Platform ABAP platform is the foundation for ABAP-based SAP solutions that build on top of the database and data management platform of SAP HANA. 2.14.1.1 Operating the Application Server for ABAP Administrators can use the concepts and functions of the SAP Application Server for ABAP (AS ABAP) as a basis for the monitoring and administration of AS ABAP. Key Features The following features are available: General Administration Tasks Key Feature Use Managing SAP licenses Assign license keys for SAP systems, determine the number of users and used engines of the SAP software for each sys­ tem, and consolidate measurement results of one or more systems. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 161

162 Key Feature Use AS ABAP Configure profile parameters. For central Configuring AS ABAP using scenarios you do not need to explicitly set parameter values, since defaults are set and values adapt automatically to physical conditions. Manual of additional sce­ configuration narios is possible. Starting and stopping AS ABAP Start and stop individual instances of your AS ABAP system or the complete system. Managing and monitoring your AS ABAP within your system Use SAP Solution Manager to manage and monitor several AS ABAP systems centrally within your system landscape. landscape The functional scope of SAP Solution Manager that is sup­ ported for depends on your SAP mainte­ SAP S/4HANA nance contract: See also [ https://support.sap.com/solution- ]. manager/usage-rights.html Providing and managing hosts, instances, databases, or sys­ Provide, monitor, and control any host, instance, database, tems or SAP system centrally. Managing network access to your SAP systems and config- the access you want to allow to your SAP network Configure load balancing uring define access points for Web requests to your network. and Such requests can be distributed (using load balancing) be­ tween individual Application Servers of your SAP system. SAP provides its own spool service and a spool database for Printing printing. Send e-mails from and receive e-mails within the AS ABAP. E-mailing Streamline your e-mail correspondence by creating custom templates based on predelivered templates. Scheduling batch jobs Schedule local batch jobs in your AS ABAP system. Backing up and restoring your SAP system Back up and restore your SAP system on operating system level and database level, if required. Archiving your data Use the data archiving functions to archive any completed business transactions that are no longer relevant for your daily operations, and so significantly reduce the load on the database. SAP S/4HANA uses the functions for archiving provided by the ABAP platform. Managing the lifecycle of current and historical data Move large amounts of data within a database to gain more working memory. You can manage the current and historical data using the data aging framework. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 162 PUBLIC

163 Key Feature Use Use SAP Information Lifecycle Management (SAP ILM) to Managing the lifecycle of live data and archived data based on rules manage the lifecycle of live and archived data based on rules. Optimize the data volume of an application system by ● moving data that is no longer required for operations into a storage system. The live data and stored data can be destroyed according to legal requirements. ● Enable the decommissioning of legacy systems by transferring legacy data into an ILM Retention Ware­ house. The legacy data can be retained or destroyed in­ dependently of the legacy system according to legal re­ quirements. SAP ILM requires an additional license. Enabling your system for SAP remote support Set up a remote service connection for each ABAP system to use SAP remote services (for example, SAP EarlyWatch or Remote Consulting), or if you would like to permit an SAP support consultant to work directly in your system to make a more precise problem diagnosis. Local Administration Tasks for AS ABAP Key Feature Use Exchanging the kernel without system downtime Use an automated procedure to automatically exchange the kernel in an ABAP system, or to make parameter changes while the system is running. Check the consistency of an installation, get an overview of Monitoring components of AS ABAP all application server instances and their states, monitor processes, users, lock entries, Internet requests, RFC con­ nections, and RFC calls, and cross-component processes. Configuring and administering special AS ABAP compo­ Configure asynchronous RFCs, logon load balancing, opera­ nents tion modes, area menus, and the number range buffer. You can also send important to all users that notifications are logged on to the ABAP system in the form of short mes­ sages. Troubleshooting Use the trace function, the ABAP dump analysis, and the system log to identify and solve issues. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 163

164 Key Feature Use The SAP system is equipped with a special lock mechanism Managing concurrent database access that synchronizes database access. The purpose of the lock mechanism is to prevent two transactions from changing the same data in the database simultaneously. You can configure, administer, and monitor database up­ dates related to ABAP transactions. Use profile parameters to configure SAP Memory Manage­ Managing the available memory of your ABAP system ment in order to adjust the ABAP Server to hardware and software requirements. Managing background processing Configure and monitor background processing of the AS ABAP, and schedule and manage local background jobs. Other Administration-Related Services for AS ABAP Key Feature Use Managing alerts Inform responsible or interested parties immediately via a predefined alert if the application detects a critical situation and triggers the alert management to create the alert. Database Administration for SAP HANA Key Feature Use Starting and stopping the SAP HANA database Start and stop the SAP HANA database. Monitoring and administering the SAP HANA database Monitor and administer local or remote SAP HANA data­ bases in SAP systems in an ABAP environment. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 164 PUBLIC

165 Software Logistics Key Feature Use Organize ABAP development projects and transport changes Managing and transporting development objects between SAP systems in your system landscape. As well as ABAP objects, you can also transport Java objects and SAP- specific non-ABAP applications in your system landscape. A close integration for transporting development objects of ABAP and SAP HANA is provided. You can also copy ABAP clients, and transport languages. Other Tasks Key Feature Use Maintaining Employees Maintain business users with business role “Employee”, with a workplace address, and a user assignment. Retrieving personal data A tool that supports the data subject’s right to get informa­ tion about their data that is being processed. Custom Application Development for ABAP 2.14.1.2 Business Background A key ingredient for business applications is custom development. The ABAP development environment offers a wide range of options for custom application development from extensions and modification of SAP standard applications by customers up to the development of completely new applications. Key Features The following key features are available: ABAP Language ABAP is a fourth-generation (4GL) as well as an object-oriented programming language developed and constantly improved/enhanced by SAP for programming business applications in the SAP environment. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 165

166 Key Feature Use Store and process mass table data dynamically in the work­ Internal tables ing memory. Managing updates of data in the database Use the concept of the SAP Logical Unit of Work (LUW) inte­ grated into the ABAP runtime environment which enables multiple users to access the central database at the same time. Use Remote Function Call as an interface to other program­ Using external interfaces ming environments. Use the Internet Communication Framework (ICF) as an in­ terface to the Internet. Use the built-in transformation capabilities to support XML and JSON. Supporting UIs in multiple languages language-specific program components from the Extract source code, which are reloaded when the program executes in accordance with the environment. Data Modeling Data modeling provides capabilities for defining data models in the database that can be used for business applications. Key Feature Use ABAP Dictionary Maintain data types in a persistent repository that are visible in all repository objects. The database tables of the central database, views, and lock objects are managed in ABAP Dic­ tionary. ABAP Core Data Services (CDS) Implement SAP’s CDS concept for AS ABAP. The concept Definition provides a platform-independent Data Language (DDL) to define CDS views and CDS table functions that im­ plement a semantically rich data model. Database Access Database access provides capabilities for accessing database entities. Use Key Feature Open SQL Access data through Open SQL statements integrated into the ABAP programming language. The ABAP statements al­ low platform-independent access to entities defined in the ABAP Dictionary or by ABAP CDS. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 166 PUBLIC

167 Key Feature Use Platform-dependent access to a database. Native SQL in­ Native SQL ABAP state­ EXEC SQL cludes an embedded static access ( ment), a class-based, general purpose access using ABAP Database Connectivity (ADBC), and ABAP-managed data­ base procedures for SAP HANA. ABAP Application Infrastructure The ABAP Application Infrastructure adopts technical details from the application development and improves the overall development process. Key Feature Use Exposing CDS views through OData Generate OData services based on a CDS view without any additional implementation. Supporting stateless transactional applications Expose application logic through stateless OData services. Business Object Processing Framework (BOPF) The Business Object Processing Framework is an ABAP object-oriented framework that provides a set of generic services and functionalities to speed up, standardize, and modularize your development. BOPF manages the entire life cycle of your business objects and covers all aspects of your business application development. Key Feature Use Creating and defining Create new business objects in order to encapsulate busi­ business objects ness logic and data to be exposed through common inter­ face. Use BOPF tools for developing and testing business objects. Enhance existing business objects through custom business Enhancing business objects logic and data. Integrating as well as combing business objects and non- Invoke application logic that is not built on BOPF through BOPF objects and vice versa. BOPF applications Reusing application infrastructure effort through reuse Reduce development and maintenance of existing BOPF services. Service Adaptation Description Language (SADL) SADL enables fast read access to data for scenarios on mobile and desktop applications using query push- down. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 167

168 Key Feature Use Establish a mapping between an OData model and an entity Creating OData services based on SADL models (SADL model) that contains modeled associations to other entities. Annotate SADL-based Gateway Services to use analytical Using OData analytics in SADL-based services features. Using query options for executing SADL-based Gateway Use query options to parameterize and fine-tune the execu­ tion of SADL-based SAP Gateway Services. Services Server Technology The components of the infrastructure server technology provide a reusable runtime environment for other components that also uses client server technology to process requests. Use Key Feature Use the ABAP runtime environment as a virtual machine for Application Server ABAP ABAP programs. Building globalized custom applications Build globalized custom applications using internationaliza­ tion technologies and data encodings. Internationalization Provides technologies and data encodings for building glo­ balized custom applications. ABAP Development Tools The ABAP development tools enable ABAP developers to build their own applications and features using the ABAP programming language and the ABAP Application Server capabilities in an Eclipse-based IDE or on the classic SAP GUI-based ABAP Workbench. Key Feature Use definitions Specify ABAP coding such as reports and includes, function Creating and managing data modules, classes, and interfaces. Use ABAP Dictionary artifacts such as structures and data elements to create and manage data definitions (metadata). Rearranging table columns to application-specific needs Build CDS views on existing database tables using Core Data Services. Describe transformations between ABAP data and XML for­ Converting between ABAP data and XML formats mats using transformations (XSLT and ST). Error handling Use options such as message classes to inform the user about an error or a status, or to issue a warning SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 168 PUBLIC

169 Key Feature Use Use Web Dynpro applications to develop SAP solutions of Developing SAP standard UI technology the SAP Netweaver Application Server Modularize SAP systems and encapsulate development ob­ Modularizing and encapsulating development objects jects using packages and package interfaces. Modularize, encapsulate, and decouple units in the SAP Sys­ Managing the lifecycle of development activities tem using a Package Builder. Transport objects to other SAP systems. workflow scenarios Build scenarios to enable Creating and managing workflow creation, and pre­ flexible pare an environment for modeling workflows ABAP Testing and Quality Tools The AS ABAP offers a set of specialized test and analysis tools that are useful at different phases of the software lifecycle (development, testing, and production). Key Feature Use Checking code quality Use static checks of the ABAP Test Cockpit (ATC) and the Code Inspector to analyze customer code for functional, us­ ability, or performance issues. Use the remote ATC checks to verify code quality on older SAP NetWeaver releases with the latest check version. Use static checks of the Code Vulnerability Analyzer (extra li­ cense required) to analyze customer code for possible se­ curity vulnerabilities. Unit testing ABAP programs Use ABAP Unit test classes to develop and execute test classes that ensure the correct behavior of program logic. ABAP Troubleshooting Tools The ABAP Troubleshooting Tools enable you to detect functional and performance issues through debugging, tracing, monitoring, and logging applications. Use Key Feature Debugging Set breakpoints and step through a running ABAP applica­ tion, analyze and change variable values, and examine the call stack to understand the program integration in the gen­ eral application context. Debug ABAP-managed database procedures (AMDP) and simple transformations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 169

170 Key Feature Use ABAP source code Create ABAP trace to analyze the distribution of an ap­ Profiling files plication’s time consumption with respect to database and ABAP runtime. Also, to improve the overall performance and significantly detect hotspots such as: SQL accesses ● ABAP procedures or statements with poor performance ● ● redundant executions of same program parts Collect essential SQL performance data along with the ABAP Monitoring SQL performance of an ABAP system contexts of all SQL statements performed in an ABAP sys­ tem. Analyze the collected data for time intervals of your choice. Dynamic logging specific code positions to gain Create dynamic logpoints for runtime information like the number of executions, variable values, call stack information, or to use them for triggering system functions like the SQL trace. It is not necessary to change source code in order to use dynamic logpoints. Extensibility The extensibility configuration framework allows different interface implementations of the application parts to be exchanged during the runtime of an application. Key Feature Use Creating custom fields fields for specific Create, edit, publish, and delete custom business contexts of extensible applications. Enable usage for UIs, reports, email templates, and field form templates. field Make content relevant for free-text search. Creating custom logic Create, test publish, edit, and delete enhancement imple­ mentations for specific business contexts of extensible ap­ plications. Use the full ABAP language for extensions of AS ABAP im­ plementations. Customizing analytical queries Design a meaningful query for analyzing and reporting pur­ poses without knowing query language and other technical details. Perform various operations such as create a new query, copy from the existing query, modify the query, add/ remove custom fields, adding dimensions and measures from the data view, defining filters, and preview result set. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 170 PUBLIC

171 Key Feature Use You can create reusable elements for consumption in cus­ Creating reusable elements tom logic extensions or custom objects. 2.14.1.3 Security for ABAP Business Background In today's world of collaborative business processes and open system environments, security no longer means just adding a firewall and using passwords to log on. It requires a complete approach that not only applies to your own IT landscape, but also to issues that arise beyond your own borders, in which even simple significant impact. The infrastructure of the ABAP platform supports you organizational measures can have a by delivering comprehensive security features for heterogeneous environments. Key Features The following features are available: Key Feature Use Authorization management Assign authorizations to users with roles. Create roles. Mass maintenance enables authorization management for many users. User information system allows for reporting of roles and their authorizations. Identity management Define user validity. Maintain user master data. Set user types. Support for mass maintenance of user data. Dele­ gated user administration. User information system allows for reporting of users. Syn­ chronize users with SAP HANA database management sys­ tem and LDAP. Central user administration Push users and authorizations from a central system in a system landscape. Security policy Define security policies to control password policies, logon policies, and policies for logon IDs. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 171

172 Key Feature Use Configure the authentication methods and policies sup­ User authentication and single sign-on ported by the system. For the following scenarios, SAP Net­ Weaver Application Server supports the following authenti­ cation and single sign-on (SSO) methods: SAP GUI logon ● ○ Password-based authentication ○ SSO for SAP Shortcuts SSO with an external SNC product ○ ● Web-based logon ○ Password-based authentication ○ SSO with logon tickets SSO with X.509 client ○ certificates ○ Kerberos with SPNego Requires a license with SAP Single Sign-On to sup­ port SSO with external SAML 2.0 identity provider ○ ● SOAP Web Services ○ Transport level authentication and SSO with user ID and password, X.509 certificates, and authenti­ cation assertion tickets. ○ Message level authentication using user name to­ certificate ken, X.509 token, and SAML token. You can also use WS-specific security and authentica­ tion mechanisms, such as XML encryption, XML signatures, Message Aging, and WS SecureConver­ sation ● OAuth 2.0 authorization framework ○ Acts as both resource server and authorization server in the same system for OData requests Can act as client ● Log off methods where possible Digital signatures and encryption Encrypt data during transport: Support of transport layer se­ curity (TLS), secure network communication (SNC), and web service security. Offer functions for the encryption of data at rest, whether it is passwords, credit card data, in the database, or in the file system. Digitally sign and verify signed documents. Manage digital keys. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 172 PUBLIC

173 Key Feature Use A virus scan interface enables you to connect third-party vi­ System security functions rus scan software to detect malware during uploads or stored in your system. Logging functions record security-related events. The audit information system provides an infrastructure for conducting audits in SAP NetWeaver Application Server. Store connection information for RFC and HTTP destina­ tions. 2.14.1.4 UI Technologies Business Background SAP provides a wide set of user interface (UI) technologies for different purposes. The UI frameworks provide capabilities for developing applications tightly integrated into the respective landscapes. The frameworks and tools available include several that are focused on developing transactional applications, as well as others that help business experts create appealing, state-of-the-art user interfaces without the need for development skills. In the ABAP environment in particular, there are many options available for extending or adapting existing applications. The user interface clients provide a consolidated access to all of these different applications. They provide structured access through role-based navigation, and a harmonized look and feel across the various underlying UI technologies. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 173

174 Key Features The following features are available: Use Key Feature UI frameworks can be used to develop user interfaces by Developing and adapting applications coding or based on a composition and orchestration envi­ ronment that builds screens with specific UI elements. Use one of the following UI frameworks to develop applications tightly integrated into the corresponding landscapes: SAPUI5 (UI development toolkit for HTML5): ● Create apps with rich user interfaces for modern Web business applications, responsive across browsers and devices, based on HTML5. ● Web Dynpro ABAP: Develop Web applications based on ABAP from scratch or use the templates/patterns provided by Floorplan Manager (FPM) for easy and efficient development. Adapt your WDA applications without touching the code, and define the range in which users can personal­ ize these applications further. ● Dynpro ABAP/ SAP GUI for HTML Create classical SAP GUI transactions. ● SAP Visual Business: Visualize and combine enterprise data with geographi­ cal or 3D real-world scenes Creating your own themes With the UI theme designer you can create your own themes to adapt the visual appearance of applications based on dif­ ferent UI technologies (including SAPUI5 and Web Dynpro ABAP). Providing consolidated access to your applications Use one of the following UI clients to provide structured ac­ cess through role-based navigation, and a harmonized look and feel across the various underlying UI technologies: ● SAP Fiori launchpad ● SAP Business Client ● SAP GUI SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 174 PUBLIC

175 2.14.1.5 Integration and Connectivity Business Background Core communication technologies provided by the ABAP platform. Key Features The following features are available: Key Feature Use Remote Func­ Communication via RFC/bgRFC. tion Call (RFC) different systems in the SAP environment includes connections Communication between applications of between SAP systems as well as between SAP systems and non-SAP systems. Remote Function Call (RFC) is the standard SAP interface for communication between SAP systems. RFC calls a function to be executed in a remote system. bgRFC provides additional services, such as queues, and qualities, such as exactly-once-in-order execution of RFC function modules. UCON RFC Se­ Restricted external RFC access and simplified RFC administration. curity UCON RFC security allows the administrator to restrict external access to RFC function modules. In addi­ tion, it provides simplified administration, for example, by analyzing the required RFC authorizations and creating different RFC user roles. Administration of HTTP trust relationships. UCON HTTP Whitelist The UCON HTTP whitelist allows the administrator of an AS ABAP to specify trusted Web sites with re­ spect to different HTTP functionalities, like embedding of UIs, redirects, or Cross-Origin Rresource Shar­ ing (CORS). It provides a learning mode to support the administrator with this task. Internet Com­ Communication via HTTP. munication Internet Communication Framework (ICF) enables communication with the SAP system using Internet Framework standard protocols (HTTP, HTTPS, and SMTP). (ICF) ICF is an integrated component of AS ABAP. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 175

176 Key Feature Use ABAP Push Channels (APC) provide "push" messages between the ABAP Application Server and Web ABAP Chan­ nels (AC) browsers. ABAP Message Channels (AMC) provide a publish/subscribe messaging inside the ABAP Application Server. TCP sockets enable the ABAP Application Server to communicate directly via simple TCP protocols with programmable logic controllers (PLCs) and other devices. The MQTT protocol enables the ABAP Application Server to communicate directly with MQTT message brokers in the client role. Both plain MQTT and MQTT over WebSocket are supported. ABAP Dae­ Framework providing sessions with unlimited lifetime. mons ABAP Daemons provide a concept similar to Linux cron jobs or Windows Services. Once started, there is no limit for the lifetime of such sessions. Applications can use daemons to handle events in a reliable way as stateful sessions. Web Services ABAP Web service provisioning. ABAP A Web service is an independent, modular, self-describing application function or service. Based on XML and other standards, this application function can be described, made available, located, or called using Internet protocols. config- The Web service infrastructure in the ABAP Application Server provides functionality to develop, execute, and monitor both inbound and outbound Web services. ure, SAP Web Dis­ HTTP(S) load balancing and request routing. patcher SAP Web Dispatcher is a software load balancer and reverse proxy for the HTTP(S) protocol. It supports SAP systems and their load balancing and request routing requirements. SAP Gateway SAP Gateway Foundation offers development and generation tools to create OData services to a variety of client development tools. It establishes a connection between application or SAP Business Suite data and Foundation target clients, platforms, and programming framework. Interfaces often transfer important business data between systems. SAP Application Interface Framework SAP Applica­ provides monitoring and error handling tools that enable business users to easily handle interface-related tion Interface errors (for example, material 4711 does not exist, or cost center 1234 is locked). Framework In addition, SAP Application Interface Framework provides tools to develop custom interfaces and reusa­ ble interface components for various communication technologies.  Note For the interface development feature, you need a separate license. For further information, please contact your SAP Account Executive. Business Net­ Business Network Integration is a collection of tools and services that enables SAP applications like Busi­ work Integra­ ness Suite, SAP S/4 HANA and others, to communicate and exchange business documents in cross appli­ tion cation processes with other business networks such as Ariba Business Network, and Fieldglass, using the HTTP/Web services. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 176 PUBLIC

177 2.14.1.6 Services for Business Users on the Application Server for ABAP Key Features The following key features are available: SAP HANA enterprise search SAP HANA enterprise search is a powerful universal search solution across multiple business entities that provides full-text search, navigation, and access to business entities. It is deeply embedded in SAP S/4HANA. Use Key Feature Defining define search models to optimize your search. search models You can Search models can consume the following features: ● Fuzzy search algorithms optimized for special semantics and use cases Synonyms ● Ranking dimensions according to business criteria ● ● Navigation into applications connected with business entities of the search models Integrated support for SAP authorization concepts ● Administrating enterprise search You can administrate SAP HANA enterprise search. The following options are available: ● Tune and simulate the scoring of search result list items according to application- or customer-specific criteria Define ● synonyms ● Evaluate search logs General Services Key Feature Use Building structured record and case views of diverse applica­ Make interacting with complex application data easier and tion data and electronic documents to boost business user more intuitive for your business users. You can orchestrate productivity data from SAP software in cases and records, search and re­ trieve data, manage cases, and ad hoc workflows. define Creating and managing workflows Define approval workflows for a line of business or an organi­ zation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 177

178 2.14.1.7 Embedded Business Warehouse Business Background Embedded Business Warehouse (Embedded BW) is used to support certain business processes in SAP S/ planning, using SAP Business Planning and Consolidation for SAP S/ 4HANA, such as integrated financial 4HANA (SAP BPC for SAP S/4HANA). Embedded BW is not intended to be used for data warehousing (EDW) use cases. As a guideline, the amount of data persisted in the Embedded BW should not exceed 20% of the overall data volume of the system. This applies to: ● Extraction from your own SAP S/4HANA system ● Integration of data from external applications ● Data from planning applications Key Features The following key features are available: Meta Data Management Use Key Feature Creating models ● fig- Create meta data entities (characteristics and key ures) ● Model master data and its attributes and hierarchies ● Model persistence objects for transactional data and master data ● Create virtual objects to combine objects Organize meta data objects in data flows ● to build logical modeling units Creating queries ● Create queries by selecting and combining characteris­ tics and key figures or reusable query elements on top of the model as a basis for multi-dimensional data anal­ ysis Deploying models ● Organize objects using packages to transport from de­ velopment to production ● Record and deploy changes of objects Data Warehouse Management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 178 PUBLIC

179 Key Feature Use Data acquisition ● DB table, Load data from various sources (such as a file, SAP ERP, SAP S/4HANA) Data propagation ● Load data between BW persistence objects and trans­ form data ● Support propagation of changed data ● Track change history of persistence objects ● Filter out erroneous data Scheduling Define the sequence of data processing tasks ● Scheduling and execution (serial or in parallel) ● Process management to track the status of each task ● and support a load status for each persistence object Monitoring & troubleshooting ● Monitor the different processes based on persistence objects and modeled process sequences Rollback data loads ● ● Restart data loads Exposing data ● Generate database views for SAP HANA to enable SQL access ● Define export format as files, DB tables or other SAP BW-Systems ● Schedule export of data considering changed data Analytic Manager Key Feature Use Analyzing data Interpret the query definition and the current navigation ● state Multi-dimensional analysis of data ● ● Read data from BW providers, SAP S/4HANA virtual data models (Core Data Services) and SAP HANA DB views using filters ● Apply aggregation, calculations and conversions ● Apply sorting and ranking ● Use master data and hierarchies ● User-specific access management Embedded BW relies on a separate authorization con­ cept. Authorizations from SAP S/4HANA do not apply but need to be mapped if required. For SAP S/4HANA virtual data models only, authorizations from SAP S/ 4HANA apply. ● For BW providers only: Support of standardized external interfaces (including certification) SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 179

180 Key Feature Use Supporting enhanced business semantics (for BW providers ● figures and stock cover reports Inventory key only) Elimination of internal business volume ● ● fiscal times) Special time semantics (e.g. ● Currency translation and unit calculations Planning engine Enabling integrated ● planning, using SAP Busi­ financial ness Planning and Consolidation for SAP S/4HANA (SAP BPC for SAP S/4HANA) SAP BPC for SAP S/4HANA requires an additional li­ cense. 2.14.1.8 Software Logistics Business Background Procedures such as installing , keeping the system up-to-date, and other system- and database- SAP S/4HANA related procedures require the use of a separate toolset, which is available for customers of SAP S/4HANA . Key Features Software Maintenance Key Feature Use Plan new SAP systems and reliably install and initially Installing systems config- ure them in your landscape according to your requirements (for example, the distribution of instances to single hosts). Upgrading to 1809 Upgrade to SAP S/4HANA 1809 from the following source SAP S/4HANA releases: SAP S/4HANA , on-premise edition 1511, SAP S/ 4HANA SAP S/4HANA 1709. 1610, or Copying systems Create consistent copies of your SAP system, for example, to create a test system as a copy from production. Installing and distributing front-end software Install/update front-end software (such as SAP GUI) and dis­ tribute it to your client computers. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 180 PUBLIC

181 Key Feature Use Change technical characteristics of an existing SAP system, Renaming existing SAP systems for example, change the SAP system ID, instance number, or host name. Updating and patching Import support packages and deploy patches and SAP Notes to keep your system up to date. SAP S/4HANA Java 2.14.2 SAP S/4HANA Java is used as the runtime platform to support the execution of selected Java components for SAP S/4HANA . 2.14.2.1 Operating the Application Server for Java Business Background Application Server for Java (AS Java) is used as a runtime platform to support form-based processing of business data triggered by both ABAP- and Java-based applications. Key Features The following features are available: Printing Forms Key Feature Use Form processing and form printing Adobe Document Services (ADS) enable form-based proc­ essing of business data triggered by both ABAP- and Java- based applications. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 181

182 Configuring Application Server for Java Use Key Feature Configuring AS Java automatically your system directly after installa­ configure Automatically tion by using the functional unit tool, which configuration makes the technical settings for Java functional units. Configuring AS Java manually AS Java for scenarios that go beyond the auto­ Configure configuration. matic Administering Application Server for Java Key Feature Use Modifying service, manager, or application properties configuration View the current system and edit the service, manager, and application properties. Managing applications Manage applications with their modules (Web, Enterprise Java Beans, and so on) and resources (JDBC, JMS, JCA). Managing ICM Administer the Internet Communication Manager (ICM), which is responsible for accepting and forwarding requests in an AS Java instance. Managing locks Administer and monitor SAP locks (held in the lock table by the enqueue server) with different tools. Managing the SAP Message Server Monitor and administer the SAP Message Server. Using the Startup Framework of AS Java Start, stop, and monitor the AS Java using the Startup Framework Backing up and restoring Back up AS Java and the relevant database to prevent data loss. This is essential for the recovery of the server after the system breaks down. Managing the gateway Administer and monitor the gateway that enables SAP sys­ tems and external programs to communicate with one an­ other. Manage your system landscape information Store information about technical systems, landscapes, business systems, products, and software components in a central repository. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 182 PUBLIC

183 Monitoring of Application Server for Java Using SAP NetWeaver Administrator Use Key Feature Using history reports to monitor AS Java To monitor your local system, you use the SAP NetWeaver Administrator tool History Reports. Monitoring and displaying log files Check the logs regularly for error messages to ensure the stable and error-free operation of the system. Using open SQL monitors Monitor the execution of SQL statements, the status of the buffers, as well as the availability and the table and catalog use of Open SQL database connections. Using JPA monitors Monitor information about all JPA applications that are run­ ning on a given cluster. Monitoring JCo connections Analyze JCo connections, organize the metadata cache, and change the settings for JCo traces. Central Monitoring of Application Server for Java Using CCMS Use Key Feature Monitoring using the CCMS Monitor the status data of AS Java from a central SAP moni­ toring system using the CCMS. 2.14.2.2 Security for Java Business Background In today's world of collaborative business processes and open system environments, security no longer means just adding a firewall and using passwords to log on. It requires a complete approach that not only applies to your own IT landscape, but also to issues that arise beyond your own borders, in which even simple organizational measures can have a significant impact. The infrastructure of the SAP NetWeaver technology platform supports you by delivering comprehensive security features for heterogeneous environments. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 183

184 Key Features The following features are available: Use Key Feature Assign authorizations to users with roles. Create roles. Mass Authorization management maintenance enables authorization management for many users. Define Identity management user validity. Maintain user master data. Set user types. Support for mass maintenance of user data. Dele­ gated user administration. Source user data from LDAP or ABAP system. Export and import principal data. Provision and manage principals with an SPML interface. Enable support for self-registration and logon help, such as forgotten passwords. Configure virtual groups based on user attributes. User mapping for principals Configure e-mail no­ for single sign-on to back-end systems. tification for user management events. Security policy Define security policies to control password policies, logon policies, and policies for logon IDs. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 184 PUBLIC

185 Key Feature Use Configure the authentication methods and policies sup­ User authentication and single sign-on ported by the system. For the following scenarios, SAP Net­ Weaver Application Server supports the following authenti­ cation and single sign-on (SSO) methods: Web-based logon ● ○ Password-based authentication ○ SSO with logon tickets certificates SSO with X.509 client ○ ○ Kerberos with SPNego ○ SSO with external SAML 2.0 identity provider ○ Header variables Web Services ● Transport level authentication and SSO with user ○ certificates, and authenti­ ID and password, X.509 cation assertion tickets. ○ Message level authentication using user name to­ ken, X.509 certificate token, and SAML token. You can also use WS-specific security and authentica­ tion mechanisms, such as XML encryption, XML signatures, Message Aging, and WS SecureConver­ sation ● OAuth 2.0 authorization framework Acts as both resource server and authorization server in the same system A client application can be either one that is deployed on the AS Java or one that is not ● off methods where possible Log Digital signatures and encryption Encrypt data during transport: Support of transport layer se­ curity (TLS), secure network communication (SNC), and web service security. Offer functions for the encryption of data at rest, whether it is passwords, credit card data, in the file system. Digitally sign and verify database, or in the signed documents. Manage digital keys. System security functions A virus scan interface enables you to connect third-party vi­ rus scan software to detect malware during uploads or stored in your system. Logging functions record security-related events. The audit information system provides an infrastructure for conducting audits in SAP NetWeaver Application Server. Store connection information for RFC and HTTP destina­ tions. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 185

186 2.14.3 Enterprise Information Management Master Data Maintenance 2.14.3.1 Business Background Master data represents the business data your company requires about individuals, organizations, or products. It remains unchanged over a long period of time and supports transactional processes. You can use Master Data Maintenance to maintain master data like products or business partners.  Example Example define business partners, for example employees, contingent workers, customers and suppliers, You can and you can define materials or services. Additionally, you can define relationships between the business partners and the materials or services. For example, information about a specific material and the supplier of this material is stored in a purchasing info record. The mass maintenance feature enables you to update multiple business partner and product master data records simultaneously. 2.14.4 Process Management and Integration 2.14.4.1 Responsibility Management Manage Teams and Responsibilities enables you to manage teams, responsibility definitions, team members and their functions in Responsibility Management. Business Background With this app you can also choose teams or team members that are responsible for a business process or flow of tasks. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 186 PUBLIC

187 Key Features These are the available key features: Use Key Feature Create, edit, delete, and copy team information Manage teams Manage team members Add or delete a team member Assign functions to team members Add or remove a function for a team member definitions for Add values to the responsibility Maintain responsibility definitions assigned to teams teams 2.14.5 Business Event Handling Business event handling enables applications, partners, and customers to consume events related to all S/ 4HANA business objects. Business Background Business event handling enables applications, partners, and customers to consume events related to all S/ 4HANA business objects. In addition, you can view and manage subscriptions, read outbound queues, and view business events. Key Features The following table explains the key features that are available: Key Feature Use You use this feature to view the existing subscriptions. A subscription is an en­ View Subscription try that enables you to be notified about the changes that are made to the business objects. You use this feature to create, update, and delete already subscriptions. Manage Subscription You use this feature to view the entries present in the outbound queue. New en­ Read Outbound Queue tries are created in the outbound queue when the business objects are either created or changed. You use this feature to view the number of events that are raised for a particu­ View Business Events lar business object. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 187

188 2.14.6 Enterprise Event Enablement different The Enterprise Event Enablement framework enables the exchange of events across platform for seamless event-driven communication. Business Background You can publish events triggered from SAP S/4HANA applications and consume these events in the apps built on SAP Cloud Platform Enterprise Messaging, Cloud Foundry Environment. Key Features The following table explains the key features available: Key Feature Use Manage Connection You use this feature to establish a connection between SAP S/4HANA system and a service instance of SAP Cloud Platform Enterprise Messaging to publish events. Maintain Event Topics You use this feature to maintain topics to which events can be raised from busi­ ness applications. Situation Handling 2.14.7 Business Background Situation handling brings urgent issues to the attention of specific groups of users who are then able to react immediately to the notifications they receive. This not only speeds up the handling of specific situations in your company, but also supports the optimization of your business processes. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 188

189 Key Features The following table explains the key features available: Use Key Feature Create ready-to-use situation types from standard templates that can be Copy and adapt situation types adapted to your requirements. Adapt conditions Adapt conditions based on which situations occur. Edit texts Edit the texts for situations that are displayed to the end user. Define recipients Select teams, functions, and other attributes using integrated responsibility notification management to define who receives certain notifications. Monitor status of situation instances Monitor the handling of situation instances that occur in your company.  Example Situation handling enables your end users to focus on circumstances. For example, they get a specific heads-up about upcoming deadlines, or are informed about missing supplier confirmations that should be followed-up as soon as possible. 2.14.8 Document Builder The SAP Document Builder component lets you author simple to complex documents quickly and easily, using customer defined formats, templates, and clause content. SAP Document Builder adds value to any business scenario that has a need to generate documentation. The content of the document may be simply formatted correspondence with fill-in values, such as recipient name, or it may be a very rigidly formatted contract with hundreds of clauses selected by rule-based logic (for example, include clause A if procurement value > $100,000). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 189

190 Business Background Key Features The following table explains the key features available: Key Feature Use Dialog Provides a collection of decision and fill-in type questions (variables) that are linked to logic statements are presented to the user within a structured proc­ ess. Follow-on questions are based on logic and the answers to previ­ filtered ous questions. Element Library Provides a collection of clauses and forms used to create an output document. Rules Logic You use this for creating logic to present the appropriate questions within the dialog and include or exclude elements within the output document. Element Versioning Provides the ability to store multiple element versions, based on the version date or number, within the element library. Element versioning ensures that the appropriate element is included in the output document. Output Document You use this to generate docx output documents. The output documents in­ clude library elements that were chosen based on Dialog and Rule selections or manual user input. Documents can also be assembled in PDF with the use of Adobe Lifecycle. 2.14.9 SAP S/4HANA Output Control Business Background SAP S/4HANA output control enables business applications to define and trigger outgoing communication with business partners. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 190

191 Key Features The following table explains the key features available: Use Key Feature Printer ● Output Channels flexible Email - allows configuration of senders and recipients ● ● XML - integration with the Ariba Network IDoc - electronic data exchange with business partners ● ● PDF-based print forms with fragments (default) Form Technologies PDF-based print forms ● Smart Forms ● SAPscript ● Allow flexible branding of print forms by separating static layout parts such as Master Form Templates header, footer, or logos from the application content. Email Templates Allow predefining email subject and email body, including variables for dy­ namic content. Output Parameter Determination Allows sending multiple messages to multiple recipients using multiple chan­ nels at the same time. Flexible of business rules without the need for implementation. definition fileds Easily extensible with SAP standard fields. and customer Manage Output Items Central overview of outputs sent via various channels and their status. View and process multiple outputs at the same time. 2.15 Country-Specific Features in SAP S/4HANA Enterprise Management This section lists and explains the key features for each country, covering localized features and the general feature(s) for which localization extension is provided. 2.15.1 Americas Key Features The following tables contain the key features for the countries in Americas. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 191

192 Argentina Cross Features Key Feature Use Business Area Document Numbering Process document numbering according to legal requirements Cross Feature Official for outgoing documents. Manage print authorization codes. Finance Business Area Key Feature Use Accounts Payable and Master Data Update customer and vendor master data according to legal re­ quirements. Accounts Receivable Payables Management Calculate withholding taxes in payments and generate payment notice. Receivables Management Generate payment notice and post debit/credit memos. Withholding Tax Update vendor master data with withholding tax exemptions and run reports with withholding tax and perceptions. Create withholding tax certificates. Country-specific posting. Cash Account Balancing Manage daily report for bank and cash accounts. Journal Run general ledger document journal and credit invoice list. General Ledger Tax Process daily value-added tax (VAT) report. VAT Reporting Tax Reporting Tax reporting (magnetic media): Generate magnetic files: elec­ tronic duplication, purchases and sales information regime and perception, and withholding taxes. Sales Business Area Key Feature Use Billing and Invoicing Master Data Maintain customer master data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 192 PUBLIC

193 Brazil Finance Key Feature Use Business Area Withholding Tax Withholding tax calculation with standard functionality for INSS Accounts Payable and Accounts Receivable and IRRF and Condition-Based Tax for PIS, COFINS, and CSLL.. Cash Banks and House Banks Process localized bank master data. Process bank Bank Statement in required formats (Febraban, Itaú, and Bra­ files desco). Process payment forms for the processes of payments using Payment Format Credit on Account, Check, Payment Order, DOC, TED; Payment of boletos, Collection (Boleto) and DDA. Tax Calculation Calculate taxes according to regulations and business practices Tax specific to Brazil. Sales Business Area Key Feature Use Nota Fiscal Billing and Invoicing Create and process outgoing Notas Fiscais (NF), electronic No­ tas Fiscas (NF-e) and electronic Conhecimentos de Transporte Electronic Nota Fiscal (CT-e), and electronic Correction Letter. Electronic Conhecimento de Transporte Sales Master Data Man­ Maintain the record of the material according to the material Customer Material Info Record agement data provided by your customer. Sales Contract Manage­ Contract Processing Process a contract with your customer. ment Customer Scheduling Agree­ Process a scheduling agreement for your customer. ment SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 193

194 Business Area Key Feature Use Sales Order Processing Sales Order Manage­ Process sales orders taking into account industrialization, re­ sale, consumption/asset, and services requirements. In addi­ ment and Processing tion, the following processes are supported. ● Future Delivery ● Consignment stock Third party direct ship, including Triangular Operation with ● Third Party Sales ● Returnable Package ● Return Price and Taxes Complementar ● Credit Note ● Create a sales inquiry from your customer, such as quotations Inquiry Processing or sales information without obligation. Query Procesing Create, change, or display a quotation for your customers. Source and Procurement Key Feature Use Business Area Purchase Info Record Maintain the record about a specific material and its supplier. Sourcing Purchase Requisition Creation Create purchase requisitions and manage the approval of pur­ and Approval chase requisitions. Purchase Order Processing Enables you to carry out localized processes for Brazil, such as: Normal Purchasing ● Credit Memo (Return) ● ● Subcontracting ● Future Delivery ● Consignment ● Returnable Package ● Triangular Operation: Service ● Freight Contract Create a purchasing contract with a vendor. Scheduling Agreement A scheduling agreement can be created when a material is regu­ larly requested and provided in accordance with a delivery schedule dates. Invoice Management Supplier Invoice Verification Process the verification of the invoice receipt for electronic No­ tas Fiscais (Nf-e) including NF-e Complementar and Conheci­ mentos de Transporte eletrônicos (CT-e). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 194 PUBLIC

195 Supply Chain Business Area Use Key Feature Outbound Delivery Processing Goods Issue Enable you to post a goods issue integrated with Nota Fiscal is­ suing. Goods Receipt Posting Goods Receipt Enable you to post a goods receipt integrated with Nota Fiscal posting. Canada Finance Key Feature Use Business Area Chile Cross Features Key Feature Use Business Area Cross Feature Enable the processing of electronic documents by doing the fol­ Electronic Document lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Business Place Manage the activation of business place. Official Document Numbering Number outgoing documents according to your requirements. Pre-Numbered Invoices Prepare reports on sheets of pre-numbered papers numbered consecutively. Finance Business Area Key Feature Use Accounts Payable and VAT Use country-specific tax numbers. Accounts Receivable Withholding Tax Process withholding tax report in accounts payable. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 195

196 Business Area Key Feature Use Management Inflation Inflation adjustment of open items. Management Revaluate assets. Inflation Asset Management Cash Desk Prepare cash journal with country-specific data. Cash Management Inflation Inflation management of G/L accounts. General Ledger File a balance sheet for tax purposes (balance tributario) in the Financial Statement fiscal year. prescribed format at the end of each Journal Process a daily journal for all accounting documents relating to your operating activities in chronological order. Master Data Make settings for localized master data. Trial Balance Prepare trial balance and line items in general ledger. Inflation Accounting Inflation Management Replacement of cost valuation. Tax VAT Reporting Prepare sales and purchases ledger. Supply Chain Business Area Use Key Feature Outbound Delivery Processing Enable you to post a goods issue integrated with electronic Goods Issue documents. Posting Goods Receipt Enable you to post a goods receipt integrated with electronic Goods Receipt documents. Colombia Cross Features Business Area Key Feature Use Cross Feature Enable the processing of electronic documents by doing the fol­ Electronic Document lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 196 PUBLIC

197 Finance Business Area Use Key Feature Process generic withholding tax reporting and monthly free­ Accounts Payable and Withholding Tax Accounts Receivable lance data. General Ledger Postings and Documents Manage year-end postings in general ledger account balance. Mexico Cross Features Key Feature Use Business Area Cross Feature Official Number outgoing documents according to your requirements. Document Numbering Enable the processing of electronic documents by doing the fol­ Electronic Document lowing: Extracting the relevant data from documents created on ● source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Finance Business Area Key Feature Use Prepare a list of your top customers. Accounts Payable and Ledger Accounts Receivable Process generic withholding tax reporting. Withholding Tax Audit Files Generate files for auxiliary and electronic accounting. General Ledger Journal Manage localized journal entries. Tax Process deferred tax transfer and certificates. Deferred Tax VAT Use country-specific tax numbers. VAT Reporting Prepare tax reports for sales and purchases. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 197

198 Peru Cross Features Key Feature Use Business Area Enable the processing of electronic documents by doing the fol­ Cross Feature Electronic Document lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Document Numbering Official Number outgoing documents according to your requirements. Pre-Numbered Invoices Prepare reports on sheets of pre-numbered papers numbered consecutively. Finance Key Feature Use Business Area Accounts Payable and VAT Use country-specific tax numbers. Accounts Receivable Withholding Tax Process withholding tax report and certificate in accounts paya­ ble. Cash Process cash journal according to the local standard best practi­ Cash Desk ces. General Ledger Ledger Manage general ledger and journal ledger reporting. Tax VAT Use country-specific tax numbers. VAT Reporting Process sales and purchases ledger reporting. United States of America Finance Business Area Key Feature Use Accounts Payable and Generation of Print Form 1099-C (Cancellation of Debt – Receivables Management Accounts Receivable IRS.gov). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 198 PUBLIC

199 Business Area Key Feature Use Generic Withholding Tax Report is used to generate the relevant Withholding Tax output of the following IRS forms: print and file Form 1099-MISC (Miscellaneous Income – IRS.gov) ● ● Form 1099-G (Certain Government Payments – IRS.gov) ● Form 1099-INT (Interest Income – IRS.gov) ● Form 1099-K (Payment Card and Third Party Network Transactions – IRS.gov) Form 1042-S (Chapter 3 only – Foreign Person’s U.S. Source In­ come Subject to Withholding – IRS.gov). Tax Display of tax information for Sales and Use Tax. Tax Reporting Venezuela Cross Features Business Area Use Key Feature Business Place Manage the activation of business Cross Feature place. Official Document Numbering Number outgoing documents accord­ ing to your requirements. Finance Business Area Key Feature Use Accounts Payable and Manage generic withholding tax reporting and maintain with­ Withholding Tax holding tax details. Accounts Receivable Management Inflation adjustment of open items. Inflation Asset Accounting Inflation Management Revaluate assets. Inventory Accounting Inflation Management Replacement of cost valuation. General Ledger Management Inflation management of G/L accounts. Inflation Tax VAT Use country-specific tax numbers. VAT Reporting Process sales and purchases ledger reporting. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 199

200 2.15.2 Europe Key Features The following tables contain the key features for the countries in Europe. Austria Finance Key Feature Use Business Area Closing Operations and Re­ Manage asset history sheet. Asset Accounting porting General Ledger Collect and prepare data for Balance of Payments. Closing Operations and Re­ porting Financial Statement Manage annual financial statement. Tax VAT: EC Sales List Process EC sales list. VAT Reporting Generate XML files for periodic VAT returns. Belgium Finance Business Area Key Feature Use Accounts Payable and Withholding Tax Report withholding tax. Accounts Receivable General Ledger Closing Operations and Re­ Collect and prepare data for Balance of Payments porting VAT: EC Sales List Create an EC sales list in XML format. Tax VAT Reporting Generate XML files for periodic VAT returns and annual sales listings. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 200 PUBLIC

201 Bulgaria Finance Key Feature Use Business Area Manage fixed Asset Accounting Closing Operations and Re­ assets reporting. porting Depreciation Influence the line values calculated on the asset level in the vari­ ous depreciation reports. General Ledger Prepare a material trial balance. Additionally, you can also rec­ Trial Balance oncile G/L account balances on material accounts with total value on material level. Tax Closing Operations and Re­ Process cash statement. flow porting Deferred Tax Transfer the tax from the deferred tax account to the normal tax account. Tax Invoice Print out VAT protocol in the form as required by the tax authori­ ties. VAT Reporting Prepare tax return in the form as required by the tax authorities. Prepare VIES declaration as part of the monthly VAT submis­ sion. Croatia Cross Features Key Feature Business Area Use Cross Feature Official Document Numbering Number outgoing documents according to your requirements. Cross Feature Electronic Document Enable the processing of electronic documents by doing the fol­ lowing: Extracting the relevant data from documents created on ● source applications. ● Monitoring the process steps related to electronic docu­ ment submission. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 201

202 Finance Business Area Use Key Feature Overdue Receivables Accounts Receivable Generate quarterly statistical report and submit it in the elec­ tronic format. General Ledger Trial Balance Prepare a list of G/L account balances and line items in accord­ ance with legal requirements. VAT Generate the report for all domestic deliveries with the tax obli­ Tax gation transfer. VAT: EC Sales List Create the EC Sales List for tax reporting. Generate XML files VAT Reporting for periodic VAT returns. Sales Business Area Key Feature Use Billing and Invoicing Governmental Document Vali­ numbering of invoices and communicate details of Handle fiscal dation all cash transactions to the tax authorities. Czech Republic Finance Business Area Key Feature Use Cash Cash Desk Process cash journal by handling cash receipts. General Ledger Postings and Documents Enables you to create postings for year-end closing of profit and loss statements as well as the opening and closing balance sheet accounts. Tax VAT: EC Sales List Generates a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. VAT Reporting Prepare and process VAT return, VAT ledger statement and the EC sales list (DMEE). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 202 PUBLIC

203 Denmark Finance Key Feature Business Area Use Cash Payment Format Create a payment format for domestic and foreign payments, and direct debit. Estonia Finance Business Area Use Key Feature Cash Cash Desk Process localized cash journal functions by entering incoming and outgoing payments. You can post incoming and outgoing cash payments to a customized G/L account, and print the cash vouchers. General Ledger Financial Statement Process financial statement (balance sheet and profit and loss statement). Tax Manage the calculation and display of social tax amounts and Corporate Income Tax income tax amounts. VAT Reporting Prepare and process value-added tax return. Finland Finance Business Area Key Feature Use Cash Payment Format Create a payment format for SEPA and cross border payments. Tax VAT Reporting Generate files for periodic VAT returns. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 203

204 France Finance Key Feature Use Business Area Withholding Tax Report withholding tax. Accounts Payable and Accounts Receivable Closing Operations and Re­ Collect and prepare data for Balance of Payments. General Ledger porting Tax Enables you to generate VAT returns in an electronic format and Calculate Pro Rata VAT submit it to the tax authorities on a regular basis. VAT: EC Sales List Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. VAT Reporting Prepare periodic VAT returns. Germany Finance Business Area Key Feature Use Accounts Payable and Process withholding tax return. Withholding Tax Accounts Receivable EC Sales List Perform and submit EC Sales List. Tax Perform and submit Electronic Advance Tax Returns. Tax Returns VAT Reporting Prepare periodic VAT returns and review G/L Account informa­ tion. Greece Cross Features Key Feature Use Business Area Cross Feature Official Document Numbering Number outgoing documents according to your requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 204 PUBLIC

205 Finance Business Area Use Key Feature Bill of Exchange Accounts Payable and Maintain transaction records involving bills of exchange and Accounts Receivable postdated checks. Create and print G/L account cheques. Check Digital Signature Provides you the tool to sign and approve digital data. Displays line items per vendor/customer/business partner. Ledger Official Documents Generate a printout of the document (referred to as FISA), that filing. you attach to the original document at the time of Display the year-end balance of each vendor along with the valu­ Payables Management ated total for each vendor. Receivables Management Display line items for all customer account postings as well as special G/L transactions. Trial Balance Display the period balances for all customer and vendor ac­ counts. Closing Operations and Re­ Manage investment support for assets and fixed asset register. Asset Accounting porting General Ledger Clearing Automatically transfers open items of the 3201 account type to the respective accounts. Additionally, you can also perform auto­ matic clearing of these line items. Closing Operations and Re­ Enables you to customize the company code address data and porting the way this data appears in the header of the legal books. Process all FI postings of a specific Journal posting date range. Ledger Process line items for all posting accounts. Official Documents Generates a printout of the document (referred to as FISA), that you attach to the original document at the time of filing. Parallel Ledger the intermediate account used by A/L for groups of G/L Defines accounts, which is then used for postings. Postings and Documents Enables change validation of the posting date Purchasing Enables activation of the purchasing account by searching for source document types in order to make the necessary postings. Trial Balance Displays the period balances for all G/L accounts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 205

206 Business Area Key Feature Use Audit Files Submit customer and vendor information to KEPYO at regular in­ Tax tervals. Transfer the tax from the deferred tax account to the normal tax Deferred Tax account. VAT Generate VAT returns in an electronic format and submit it to the tax authorities on a regular basis. VAT Reporting Prepare tax return in the form as required by the tax authorities. Hungary Cross Features Business Area Key Feature Use Electronic Document Cross Features Enable the processing of electronic documents by doing the fol­ lowing: Extracting the relevant data from documents created on ● source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Finance Business Area Key Feature Use Accounts Payable and Create a payment file for domestic payments in the format de­ Payment Format fined by the clearing bank. Accounts Receivable Posting Business Transactions Process entering vendor invoices and payments. Bank Applications Loans Process interest suspension functions, debt transfer functions, itemized commitment and off-balance posting of contract amounts. Cash Process exchange rate calculation for outgoing payments. Cash Desk General Ledger Audit Files Prepare an XML file containing a comprehensive list of issued in­ voices. Tax Deferred Tax Process deferred tax. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 206 PUBLIC

207 Business Area Key Feature Use Generate VAT returns in the required format and submit it to the VAT tax authorities on a regular basis. VAT: EC Sales List Process EU sales and purchases list in XML file format. VAT Reporting Prepare tax return in the form as required by the tax authorities. Prepare domestic sales and purchases list. Ireland Finance Business Area Use Key Feature Accounts Payable and Provides information about individuals, organizations, or prod­ Master Data Accounts Receivable ucts that is used regularly and in a consistent manner. Withholding Tax Calculate and report withholding tax. Tax VAT Generate VAT returns in an electronic format and submit it to the tax authorities on a regular basis. Italy Cross Features Business Area Key Feature Use Cross Features Official Document Numbering Number outgoing documents according to your requirements. Electronic Document Enable the processing of electronic documents by doing the fol­ lowing: Extracting the relevant data from documents created on ● source applications. ● Monitoring the process steps related to electronic docu­ ment submission. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 207

208 Finance Business Area Use Key Feature Bill of Exchange Accounts Payable and Post bills of exchange presentation document. Accounts Receivable Reevaluate current assets and liabilities in foreign currency. You Closing Operations and Re­ then post the reevaluation porting to the relevant accounts. differences Withholding Tax Report withholding tax. Depreciation Compare an asset depreciation over two depreciation areas. Asset Accounting Cash Payment Format Create an EC sales list in DME format. Postings and Documents profit and loss statement postings, and General Ledger Generate year-end closes the balance sheet accounts and carries forward their bal­ ances into the new year. fiscal Tax Deferred Tax Transfer the tax from the deferred tax account to the normal tax account. For sales made to public institutions, the tax authori­ ties grant extension of time to remit the tax payable. VAT Calculate Pro-Rata VAT. Prepare periodic VAT returns, generate containing transac­ VAT Reporting files tions with customers and vendors. Kazakhstan Cross-Features Business Area Use Key Feature Cross-Features Trade Expense Management Generate Import taxes declaration (form 320.00) in XML file format. Generate Customs Union’s Import claim (form 328.00) in both file formats. PDF and XML Finance Business Area Key Feature Use Cash Cash Desk Print cash journal, cash book and incoming/outgoing cash vouchers. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 208 PUBLIC

209 Business Area Key Feature Use Financial Statement Generate statements (balance, profit and loss state­ General Ledger financial flow ment, cash reports) in PDF format in accordance with the legal requirements. Tax Corporate Income Tax Subsoil use contracts split accounting functionality for the cor­ porate income tax calculation purposes. Printing an outgoing invoice and an act of acceptance of works Tax Invoice performed. Invoice journal for issued and received invoices. Di­ rect exchange with web services of the Electronic Invoices Infor­ mation System (EIIS). Property Tax Calculate property tax in accordance with legal requirements. Transport Tax Calculate transport tax in accordance with legal requirements. Generate VAT declaration in XML VAT Reporting format. file Supply Chain Business Area Key Feature Use Inventory Management Output processing Allows the printing of forms required for goods acceptance, in­ ternal goods movement and goods issue processes. Latvia Cross Features Business Area Use Key Feature Official Document Numbering Cross Feature Number outgoing documents according to your requirements. Finance Business Area Key Feature Use Accounts Payable and Import an electronic bank statement to clear outstanding ac­ Bank Statement Accounts Receivable counts receivable and payable. Cash Bank Statement Convert the bank statement file to MT940 with field86 struc­ tured format. Cash Desk Generate legal forms of incoming and outgoing payments. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 209

210 Business Area Key Feature Use VAT Generate VAT returns in an electronic format and submit it to Tax the tax authorities on a regular basis. Prepare tax return in the form as required by the tax authorities. VAT Reporting Lithuania Finance Business Area Key Feature Use Create a register that contains a list of all customer and vendor Accounts Payable and Closing Operations and Re­ porting invoices. Accounts Receivable VAT: EC Sales List Tax Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. Luxembourg Finance Business Area Key Feature Use General Ledger Closing Operations and Re­ Collect and prepare data for Balance of Payments. porting Financial Statement Generate financial statements. Tax Audit Files Generate a SAF-T file in a format as required by the tax authori­ ties. VAT: EC Sales List Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU VAT Reporting Generate XML files for periodic VAT returns. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 210 PUBLIC

211 Netherlands Finance Key Feature Use Business Area Determines how the compensation for the collection of overdue Accounts Receivable Periodic Activities and Closing Operations payments (dunning charges) is calculated. VAT Reporting Prepare VAT returns and EC sales lists in the form as required by Tax the tax authorities. Norway Finance Business Area Use Key Feature Trial Balance Accounts Payable and List the opening and closing balance of each vendor/customer Accounts Receivable in accordance with legal requirements. Cash Payment Format Make domestic and foreign payments by bank transfer in Tele­ pay, BBS, and DATADIALOG format. General Ledger Trial Balance Display G/L accounts with opening/closing balances and line items. Poland Finance Business Area Use Key Feature Accounts Payable and Monitoring of Receivables Generate a list of all customer invoices and vendor invoices that Accounts Receivable are not settled within their payment due date. Trial Balance Prepare a statement of your accounts payable and receivable in accordance with legal requirements. VAT Prepare VAT registers in accordance with the legal require­ ments. VAT Date Indicates the tax reporting date in the document header. The relevant reports collect documents based on this date. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 211

212 Business Area Key Feature Use Closing Operations and Re­ Asset Accounting Prepare a list of assets in accordance with the legal require­ porting ments. Use domestic bank transfer file Payment Format Cash format (Elixir-0). Valuation Manage foreign currency valuation of cash account balances. General Ledger Ledger Prepare a list of G/L account balances and line items in accord­ ance with the legal requirements. Periodic Valuation of Material Inventory Accounting Prepare turnover of the appropriate material account. Inventories Tax Generate and print internal invoices that contain the required Tax Invoice VAT data. Process acquisition tax accruals. VAT Manage reverse charge form for normal and correction runs. VAT: EC Sales List Generate a list that contains information on all tax-free goods deliveries and goods movements to registered companies within the EU. Portugal Finance Business Area Use Key Feature Manage generic withholding tax reporting. Accounts Payable and Withholding Tax Accounts Receivable Closing Operations and Re­ Asset Accounting Manage asset reporting, revaluation areas/classes/exceptions, porting and currency revaluation. Use the Mapas Fiscais to retrieve de­ tails of assets in your company and print these details on forms specified by the tax authorities in Portugal. General Ledger Closing Operations and Re­ Process balance of payments using central bank reporting, and porting SCB indicator assignments. Tax Audit Files Prepare and process standard audit file for tax purposes (SAF- T). Tax Invoice Customer master data validations (VAT number cannot be changed after digitally signed documents are posted). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 212 PUBLIC

213 Business Area Key Feature Use Apply pro-rata VAT method in order to determine tax deduction. VAT VAT Reporting Prepare and process input tax refund, annual sales return to tax advance return for tax on sales/purchases. office, Public Sector Funds Create and process Payment Authorization Proposals. Payment Authorization Pro­ Management posal Credit Release Request Authorize and release funds. Carry out Budget Postings, Release Monthly Budget and Ad­ Monthly Budget vance Monthly Budget. Project System Integration Funds Management / Project System integrations for the proc­ essing of contracts. Materials Management Inte­ Funds Management / Materials Management integrations for the processing of purchase orders and invoice verifications. gration Romania Finance Business Area Key Feature Use Asset Accounting Closing Operations and Re­ Process asset chart and asset history, asset revaluation. porting Cash Process cash journal. Print petty cash receipt. Cash Desk Make bank transfer payments. Payment Format General Ledger Financial Statement financial statement - for example, balance Prepare and process sheet and profit and loss statement. Journal Process documents journal. Ledger Process general ledger and account card for miscellaneous op­ erations with corresponding accounts. Trial Balance Process general ledger account balance. Tax VAT Manage tax code procedures, process tax code assignments for normal/deferred tax system. Apply pro-rata VAT method in or­ der to determine tax deduction if is the case. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 213

214 Business Area Key Feature Use Process VIES 390, declaration (XML VAT: EC Sales and Purchases file). List Prepare and process advance return for tax on sales/purchases VAT Reporting for normal and deferred tax system. Manage VAT declarations – XML (VAT 300, VIES 394). file Russia Cross Features Key Feature Business Area Use ● Generate import customs declarations, record and track Cross-Features Trade Expense Management their numbers when the company sells imported goods. Generate export customs declarations. Calculate and post customs fees and duties, if relevant. ● Generate goods import declarations for importing goods from the Customs Union countries. ● Perform currency control during currency transactions with foreign companies: generate deal passports, create supporting document statements and currency transac­ tion statements, keep track of the status of payments and shipments with foreign companies. Finance Business Area Key Feature Use Postings and Documents Accounts Payable and Manage contract accounting and automatic contract filling, process documents with negative postings. Accounts Receivable Closing Operations and Re­ Manage automatic clearing. porting Payables Management Accounting of down payments, payments analysis, process electronic invoices, delivery and acceptance documents. Receivables Management Accounting of down payments, payments analysis, process electronic invoices, delivery and acceptance documents. Transfer Pricing Process transfer pricing to evaluate the transfer of goods or services between dependently operating companies. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 214 PUBLIC

215 Business Area Key Feature Use Manage customer and vendor turnover balance and intercom­ Trial Balance pany balance reconciliation. Process inventory reports and asset revaluation. Asset Accounting Closing Operations and Re­ porting Depreciation Calculate and process depreciation and depreciation bonus. Master Data Make settings for localization data used in property and trans­ port tax calculation. Cash Desk Process cash journal and print cash documents. Cash Closing Operations and Re­ General Ledger Process balance sheet, profit and loss statement, cash flow porting statement and foreign currency valuation report. Offset Accounting Process offsetting account determination. Tax Corporate Income Tax Process profit tax reports. Tax Invoice Issue paper and electronic invoices, including corrective and re­ vised invoices. Property Tax Calculate the tax amount and prepare tax return for property tax. Transport Tax Calculate the tax amounts and prepare the tax return for trans­ port tax. Separate VAT, deferred tax and VAT for goods in transit. VAT VAT Reporting Process sales and purchases ledger, invoice journal, inquiries from tax authorities and prepare VAT return. Supply Chain Business Area Key Feature Use Inventory Management Carry out the physical inventory for material stocks. Physical Inventory Offset stock surpluses against stock shortages that have been found during physical inventory. Prepare a list of stock on hand at the beginning and end of each period, showing the value of the stock as well as its quantity. Allows the printing of forms required for physical inventory. Output Processing Allows the printing of forms required for goods acceptance, in­ ternal goods movement and goods issue processes. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 215

216 Sales Business Area Use Key Feature Billing Allows the printing of invoices. Billing and Invoicing Serbia Finance Business Area Key Feature Use Trade Expense Management Process customs declaration. Accounts Payable and Accounts Receivable Depreciation Process tax depreciation. Asset Accounting Cash Bank Statement Convert Halcom to MultiCash format. Create and export with payment data re­ TXT file Payment Format predefined quired for e-banking program. Financial Statement Prepare and process financial statement. General Ledger Ledger Prepare general ledger for postings, as well as calculated and deducted VAT in predefined electronic format. VAT Reporting Tax Prepare tax return in the form as required by the tax authorities. Slovakia Finance Key Feature Business Area Use Accounts Payable and Master Data VAT cash accounting. Accounts Receivable Asset Accounting Depreciation Accelerated depreciation method. Cash Derivation of external transactions from payment symbols. Bank Statement General Ledger Financial Statement Enables you to create postings for year-end closing of profit and loss statements as well as the opening and closing balance sheet accounts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 216 PUBLIC

217 Business Area Key Feature Use Process cash statement. Closing Operations and Re­ flow porting Manage deferred tax transfer and the analysis of deferred tax Deferred tax Tax accounts. VAT Create and reverse acquisition tax accruals. VAT Reporting Prepare and process VAT return, VAT ledger statement and the EC sales list (DMEE). Slovenia Cross Features Key Feature Business Area Use Official Document Numbering Number outgoing documents according to your requirements. Cross Features Enable the processing of electronic documents by doing the fol­ Electronic Document lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Finance Key Feature Use Business Area VAT Accounts Payable and Manage accounting document validation. Accounts Receivable Cash Bank Statement Manage bank statements in various formats. Payment Format Create and adjust payment medium formats. General Ledger Mange statistical reporting to create period reports SKV, BST Closing Operations and Re­ porting and SFR for The Bank of Slovenia and The Agency of the Repub­ lic of Slovenia for Public Legal Records and Related Services (AJPES). Ledger Prepare a list of G/L account balances and line items in accord­ ance with the legal requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 217

218 Business Area Key Feature Use Audit Files Generate tax books and list of invoices paid in cash or by credit Tax cards in a format as required by the tax authorities. Create and reverse acquisition tax accrual. Tax reporting date in VAT the document header. The relevant reports collect documents based on this date. Create the EC Sales List for tax reporting. VAT: EC Sales List VAT Reporting Prepare form DDV-O for reporting. Spain Cross Features Business Area Use Key Feature Electronic Document Enable the processing of electronic documents by doing the fol­ Cross Features lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Finance Business Area Use Key Feature Master Data Accounts Payable and VAT cash accounting. Accounts Receivable Withholding Tax Prepare statements of the withholding tax that you have col­ lected on behalf of your vendors. You can collect tax on a variety of expenditures, in accordance with Spanish law. Cash Payment Format Print checks according to the Spanish standards (SAPscript form F110_ES_CHEQUE). Deferred Tax Manage deferred tax transfer and the analysis of deferred tax Tax accounts. VAT Apply pro-rata VAT method in order to determine tax deduction. VAT: EC Sales List Process EC sales list for Spain. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 218 PUBLIC

219 Business Area Key Feature Use Prepare periodic VAT returns, annual declaration of transactions VAT Reporting with 3rd party (form 347) and VAT registers (form 340). Sweden Finance Business Area Key Feature Use Cash Payment Format Convert bank statement into MultiCash format. Switzerland Finance Business Area Use Key Feature Payment Reference Process ISR procedure which is a payment in procedure Accounts Payable offered by the Swiss Postal Service to firms based in Switzerland. ISR subscribers are given an ISR number in the business partner master record. Cash Maintain bank master data and outline the factors you should Bank Account Master Data consider when transferring bank master data automatically. Bank Statement Convert bank statements into MultiCash format. General Ledger Closing Operations and Re­ Collect and prepare data for Balance of Payments. porting Tax VAT Reporting Prepare periodic VAT returns. Turkey Cross Features Business Area Key Feature Use Cross Feature Official Document Numbering Number outgoing documents according to your requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 219

220 Business Area Key Feature Use Enable the processing of electronic documents by doing the fol­ Electronic Document lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Finance Business Area Key Feature Use Accounts Payable and Bill of Exchange Process bills of exchange and checks as forms of payment. You can record, store, and use them according to local legal and Accounts Receivable business requirements. Asset Accounting Inflation Management inflation accounting by revaluating various assets (and Manage their depreciation) for inflation. General Ledger Journal Process document journal. Ledger Process general ledger from document file. VAT Reporting Tax Process sales ledger and purchases ledger. Ukraine Finance Key Feature Business Area Use Accounts Payable and Closing Operations and Re­ Clear reversed invoice items. Manage automatic clearing. Accounts Receivable porting Master Data Manage customer and vendor tax data on a time basis. Payables Management Accounting of down payments in foreign currency. Payments analysis. Postings and Documents Manage internal contract numbers and automatic insertion and update of vendor/customer contracts. Process documents with negative posting. Receivables Management Print invoices. Accounting of down payments in foreign cur­ rency. Payments analysis. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 220 PUBLIC

221 Business Area Key Feature Use Process transfer pricing to evaluate the transfer of goods or Transfer Pricing services between independently operating units of a corporate group. Manage customer and vendor turnover balance and balance no­ Trial Balance tification. fixed Process the following for Asset Accounting assets: Closing Operations and Re­ porting Create and print forms for acquisition, retirement, scrap­ ● ping assets fixed ● fixed assets inventory cards Create and print Create and print physical inventory list ● ● Revaluation and the reversal of revaluation Master Data Make settings for localization data. Cash Cash Desk Manage cash journal and print cash documents. General Ledger Financial Statement Prepare financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity statement). Accounting offsetting account determination. Offset Process Corporate Income Tax Process income tax (known in the system as profit Tax tax) using a separate set of accounting regulations to calculate your taxable profit. Tax Invoice Prepare and process tax invoices and correction tax invoices. VAT Reporting Prepare and process VAT reporting. Supply Chain Business Area Key Feature Use Inventory Management Carry out the physical inventory for material stocks. Physical Inventory Prepare a list of stock on hand at the beginning and end of each period, showing the value of the stock as well as its quantity. Allows the printing of forms required for physical inventory. Output Processing Allows the printing of forms required for goods acceptance, in­ ternal goods movement and goods issue processes. Logistics Execution Outbound Delivery Processing Allows the printing of forms required for outbound delivery processing. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 221

222 Sales Business Area Use Key Feature Billing Billing and Invoicing Allows the printing of invoices. United Kingdom Finance Business Area Key Feature Use verifica- Accounts Payable and Process business partner master data and CIS vendor Master Data Accounts Receivable tion. Posting Business Transactions Process vendor invoices. Withholding Tax Track and remit withholding tax for construction industry scheme. Asset Accounting Depreciation Post revaluation in compliance with the requirements of the Statement of Recommended Practice (SORP) and his­ modified torical cost accounting (MHCA) primarily used by the public sector. Tax VAT Process tax on open invoices. VAT: EC Sales List Process EC sales list for the United Kingdom. VAT Reporting Create an electronic value-added tax (VAT) return on sales and purchases. 2.15.3 Africa/Middle East Key Features The following tables contain the key features for the countries in Africa and the Middle East. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 222

223 Egypt Finance Key Feature Use Business Area Bill of Exchange Accounts Payable and Manage and record the incoming postdated checks. Accounts Receivable Maintain all information related to vendor certificates Vendor Certificates in the business partner master for vendor along with information re­ lated to its validity. Withholding Tax/Stamp Tax Manage the withholding tax rules and the calculation, and clear its open items to generate the legal remittance form and the tax payment form in accordance with the country tax rules and reg­ ulations. Manage the stamp tax rules and the calculations, and clear its open items to generate the legal remittance form and the tax payment form. in accordance with the country tax rules and reg­ ulations. Company Certificates General Ledger certificates Maintain all information related to the company along with information related to its validity. Israel Cross Features Business Area Key Feature Use Cross Feature Annexing Enables to adjust a price according to index/currency/price list defined inflation adjustment law by handling the changes as by master data of the annexing packages that are used in the cen­ tral annexing calculation. Finance Business Area Key Feature Use Accounts Payable and restrictions in a payment run by man­ Analysis of Payments to Sup­ country-specific Process pliers aging foreclosures in Accounts Payable and Accounts Receiva­ Accounts Receivable ble. Master Data Update vendor master data with content from Shaam (Compu­ terized Processing Service of the Authorities). Send vendor master data files to Shaam. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 223

224 Business Area Key Feature Use Generate withholding tax file. Withholding Tax Asset Accounting Process revaluation and reporting in asset management. Closing Operations and Re­ porting Other Process localized investment plans and asset classification. Process bank master data. Cash Bank Account Master Data Cash system is a receivable cash that supports main processes, Cash Processes such as: Collecting payments (receivable of cash, check deferred ● check and credit card) ● Return (cancellation) of payments Deposit ● Cash audit ● Audit Files Uniform files Tax file form 6111. and annual VAT Reporting Prepare and process data for the VAT files. Sales Business Area Key Feature Use Maintain annexing data in sales order. Sales Order Manage­ Annexing ment and Processing Annexing Billing and Invoicing Calculate price in billing documents using annexing formulas. Source and Procurement Business Area Key Feature Use Operation Contract purchase document levels Annexing Maintain annexing data in different Management such as in scheduling arrangements, Contracts and Requests for Quotation. Purchase Order Proc­ Annexing Maintain annexing data in different purchase document levels. essing Supplier Invoice Verifi- Create an annexed invoice. Annexing cation SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 224 PUBLIC

225 Kuwait Finance Key Feature Use Business Area Withholding Tax Accounts Payable and Generate statement of withholding tax settlements on dividends earned by entities investing in securities listed in Kuwait Stock Accounts Receivable Exchange (KSE). Vendor certificates in the Certificate Maintain all information related to vendor business partner master for vendor along with information re­ lated to its validity. Asset Accounting Enclosure with Income tax declaration - Generate statement of Depreciation assets depreciation in accordance with the county tax rules and regulations. Cash Manage the reconciliation between the bank statements Bank Reconciliation amounts and own accounting records. Company General Ledger Maintain all information related to the company certificates Certificates along with information related to its validity. Inventory Accounting Periodic Valuation of Material Enclosure with Income tax declaration - generate statement of Inventories stock closing inventory at end of the year. Corporate Income Tax Tax Perform an annual income tax and other taxes declaration in ac­ cordance with the county tax rules and regulations. Oman Finance Business Area Use Key Feature Accounts Payable and Bill of Exchange Manage and record the incoming postdated checks and manage Accounts Receivable the outgoing postdated checks through a dashboard. Withholding Tax Manage the withholding tax rules and the calculation, and clear its open items to generate the legal remittance form in accord­ ance with the country tax rules and regulations. Vendor Certificates Manage and record the incoming postdated checks and manage the outgoing postdated checks through a dashboard. Tax Corporate Income Tax Manage income tax declaration. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 225

226 Qatar Finance Key Feature Use Business Area Bill of Exchange Manage and record the incoming postdated checks. Accounts Payable and Accounts Receivable Withholding Tax Manage the withholding tax rules and the calculation, and clear its open items to generate the legal forms (remittance, vendor certificate, refund) in accordance with the country tax rules and regulations. Certificates Vendor certificates in the Maintain all information related to vendor business partner master for vendor along with information re­ lated to its validity. Asset Accounting Depreciation Enclosure with income tax declaration - generate a statement of assets depreciations in accordance with the country tax rules and regulations. Cash Bank Reconciliation Manage the reconciliation between the bank statement amounts and own accounting records. General Ledger Provision Enclosure with income tax declaration - generate a statement of company provisions details in accordance with the country tax rules and regulations. Corporate Income Tax Tax Perform an annual income tax declaration in accordance with the country tax rules and regulations. Saudi Arabia Finance Key Feature Business Area Use Accounts Payable and Bill of Exchange Perform an annual income tax declaration in accordance with Accounts Receivable the country tax rules and regulations. Withholding Tax Generate the monthly withholding tax declaration and create withholding tax form. certificates Vendor Certificate Maintain all information related to vendor certificates in the business partner master for vendor along with information re­ lated to its validity. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 226 PUBLIC

227 Business Area Key Feature Use Depreciation Asset Accounting Enclosure with Zakat and Income tax declaration - Generate statement of assets depreciation in accordance with the county tax rules and regulations. Tax Corporate Income Tax Perform an annual Zakat and income tax declaration and enclo­ sures in accordance with the county tax rules and regulations. South Africa Finance Business Area Key Feature Use Tax VAT Reporting Process sales and purchases ledger reporting. United Arab Emirates Finance Business Area Key Feature Use Accounts Payable and Bill of Exchange Manage and record the incoming postdated checks. Accounts Receivable Vendor Certificates Maintain all information related to vendor certificates in the business partner master for vendor along with information re­ lated to its validity. 2.15.4 Asia-Pacific Key Features The following tables contain the key features for the countries in Asia-Pacific. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 227

228 Australia Finance Key Feature Use Business Area Withholding Tax Accounts Payable and Report generic withholding tax. Accounts Receivable China Cross Features Use Business Area Key Feature Document Numbering Ensure consecutive numbering for financial documents. Official Cross Feature Finance Key Feature Business Area Use Manage the whole life cycle of various BoE receivable and paya­ Accounts Payable and Bill of Exchange Accounts Receivable bles, including master data, process and status management, reports and counting. Aging reporting, customer summary and details reporting, ven­ Monitoring of Receivables and dor summary and details reporting. Payables Cash Cash Budgeting Manage all cash budgeting for China including configuration, data preparation, cycles and approvals, budget consumption and reports. Cash Desk flow and movements in a specified pe­ Report for historical cash riod. Electronic Payment Integration Process incoming and outgoing payment management and cash operations for China. (EPIC) General Ledger Closing Operations and Re­ Process compiling a collective balance of payments. porting Financial Statement Manage and display localized financial statements (profit and loss statement, balance sheet, cash statement). flow G/L Account Balance Display G/L account balance and line items in general ledger. Offset Accounting Determine offset accounts for cash flow statement. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 228 PUBLIC

229 Business Area Key Feature Use Analyze details of goods received but invoice not received, and GR/IR Analysis invoice received but goods not received. financial documents according to Journal format. Print China-specific Master Data Manage master data related to account levels hierarchy. Tax Manage pre-processing of invoicing data with splitting, merging, Golden Tax Interface rounding handling, and so on, and generate invoicing files for in­ voicing and printing to Golden Tax System. Global Trade Manage the tax refund process of exporting goods, including the FI posting of accrued refundable VAT and consumption tax. Hong Kong Finance Business Area Key Feature Use India Cross Features Key Feature Use Business Area Cross Feature You can manage/migrate tax-relevant master data of a business Manage Master Data partner. This data includes excise duty, service tax, and with­ holding tax data. Finance Business Area Key Feature Use Accounts Payable and Postings and Documents Post and clear vendor down payments. Accounts Receivable Withholding Tax Enables you to process withholding taxes (also known as tax de­ ducted at source or TDS) including clearing according to the In­ come Tax Act, 1961. Enables you to prepare tax return in the form as required by the tax authorities. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 229

230 Business Area Key Feature Use Closing Operations and Re­ fixed assets reporting Asset Accounting Manage porting Depreciation Calculate depreciation on asset blocks as required by the in­ come tax laws in India. Master Data Make settings for localized master data. Corporate Income Tax Tax Calculates and displays the income tax depreciation and capital gain and capital loss values for asset blocks. Additionally up­ dates the closing written down value (WDV) of an asset block. Sales Business Area Key Feature Use Excise Duty You can determine excise and other taxes on your sales, and Billing and Invoicing make the appropriate accounting posting. Source and Procurement Business Area Key Feature Use Invoice Management Excise Duty You can calculate excise duty either using a condition-based method or a formula-based method. Additionally, you can pre­ pare copies of all excise registers for submission to excise au­ thorities. Supplier Management You can handle materials issued to subcontractor without pay­ Subcontracting Challan ment of excise duty or with full payment of excise duty. Indonesia Cross Features Business Area Key Feature Use Cross Feature Manage the activation of business place. Business Place Official Document Numbering Manage document classes and number range maintenance in official document numbering. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 230 PUBLIC

231 Finance Business Area Use Key Feature Accounts Payable and Process application configuration for reporting. Closing Operations and Re­ porting Accounts Receivable file a withholding tax return on a monthly basis Enable you to Withholding Tax Closing Operations and Re­ Process compiling a collective balance of payments. General Ledger porting Offset Determine offsetting accounts to prepare the cash flow state­ Accounting ment using the direct method. VAT Reporting Process advance returns for tax on sales and purchases. Tax Japan Finance Business Area Key Feature Use Accounts Payable and For the scenario of Electronic Monetary Claim (Issuer), record Bill of Exchange Accounts Receivable bill of exchange transactions according to your requirements. Process the invoice summary, according to Japanese require­ Invoice Summary ments, for the following document types: invoices, credit memos, and down payment requests. Withholding Tax Process generic withholding tax report for certain kinds of pay­ ments that are subject to withholding taxes. Closing Operations and Re­ Annex 16 (1)(2)(4)(6)(8) - Supplemental forms for a corporate Asset Accounting porting tax declaration to explain depreciation expense. Depreciation Calculate tax depreciation of fix assets and J-GAAP depreciation of impaired assets. Bank Statement Import Zenginkyo bank statements. Cash Payment Format Process bank charge calculation. Domestic bank transfer and foreign bank transfer in Zenginkyo format. Tax Property Tax Forms for property tax declaration with each municipal tax of­ fice each year. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 231

232 Sales Business Area Use Key Feature Expiration Date Management – You use this automatic batch inversion check to prevent the Sales Order and Out­ shipment of products from batches that are older than the pre­ bound Delivery Batch Inversion Check vious shipments to the same customer. The batch inversion modification of sales check takes place during the creation or orders and outbound deliveries. CHOAI Route Management In case that business flow (document flow) Sales Order flow are and logistics multi-steps and Hierarchical to the consumer, the Hierar­ final chy information (CHOAI Route) is necessary for subsequent processes, like rebate calculation. You can define CHOAI Route and can create a new sales order with specifying CHOAI Route. Sourcing and Procurement Business Area Key Feature Use Purchase Order Proc­ You can order materials from the suppliers by creating a pur­ Purchase Orders with Tempo­ rary Pricing essing chases order with estimate prices and adjust the goods prices fixed after they have been negotiated. Prices are before goods receipt. Malaysia Finance Business Area Use Key Feature Tax Deferred Tax Process deferred tax transfer and analyze deferred tax ac­ counts. Goods and Service tax Process GST-03 reporting. New Zealand Finance Business Area Key Feature Use Cash Payment Format Enable you to generate the payment file you send to your bank according to your format settings. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 232 PUBLIC

233 Philippines Cross Features Key Feature Use Business Area Manage the activation of business place. Cross Features Business Place Official Document Numbering Manage document classes and number range maintenance in official document numbering. Finance Key Feature Business Area Use Accounts Payable and Withholding Tax Process withholding tax according to your requirements. Accounts Receivable Tax Payment Receipt receipt printing and management. Official VAT Reporting Process advance returns for tax on sales and purchases. Singapore Finance Business Area Key Feature Use Closing Operations and Re­ Manage Asset Accounting assets reporting. fixed porting Depreciation Calculate tax depreciation of fix assets. Tax VAT Reporting Process advance returns for tax on sales and purchases. South Korea Cross Features Business Area Key Feature Use Cross Features Business Place Manage the activation of business place. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 233

234 Finance Business Area Use Key Feature Bill of Exchange Accounts Payable and Record bill of exchange transactions according to your require­ Accounts Receivable ments. Korean-specific Manage time-dependent fields in customer/ Master Data vendor master records (including one time customers/ vendors). Withholding Tax Manage generic withholding tax reporting and maintain with­ office holding tax details. You can use section code (assign tax office number). number and local tax Closing Operations and Re­ Control the depreciation due on your assets, including any si­ Asset Accounting porting buin postings. Depreciation Prepare statements of the depreciation on assets in the format required by the local authority. General Ledger Manage trial balance and line items in general ledger. Trial Balance Closing Operations and Re­ Prepare taxes and dues/prepaid expenses. Tax porting Process tax invoices for all sales and other transactions involv­ Tax Invoice ing output tax, and record incoming tax invoices for all pur­ chases or other transactions involving input tax. VAT Reporting Process sales and purchases ledger reporting. Taiwan Cross Features Business Area Use Key Feature Cross Features Business Place Manage the activation of business place. Official Document Numbering Manage document classes and number range maintenance in official document numbering. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 234 PUBLIC

235 Business Area Key Feature Use Enable the processing of electronic documents by doing the fol­ Electronic Document lowing: ● Extracting the relevant data from documents created on source applications. ● Monitoring the process steps related to electronic docu­ ment submission. Finance Key Feature Use Business Area VAT Reporting Tax Process sales and purchases ledger reporting. Thailand Cross Features Business Area Use Key Feature Cross Features Business Place Manage the activation of business place. Official Document Numbering Manage number groups and number range maintenance in offi- cial document numbering. Finance Business Area Use Key Feature Bill of Exchange Accounts Payable and Record bill of exchange transactions according to your require­ Accounts Receivable ments. Correspondence Manage your correspondence according to the local business and legal requirements. Deferred Tax Transfer deferred tax. Withholding Tax Manage generic withholding tax reporting. Asset Accounting Depreciation Prepare statements of the depreciation on assets in the format required by the local authority. Tax VAT Reporting Process advance returns for tax on sales and purchases. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management PUBLIC 235

236 Supply Chain Key Feature Use Business Area Inventory Management Reports Additional reports are provided in inventory management for re­ porting, as required by local authorities. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Enterprise Management 236 PUBLIC

237 3 SAP S/4HANA LoB Products LoB Products enhance core functions of SAP S/4HANA Enterprise Management to provide SAP S/4HANA benefit for your line of business (LoB). Please note that you might need a separate license. additional business For further information, please contact your SAP Account Executive. 3.1 Asset Management 3.1.1 Maintenance Operations 3.1.1.1 Work Clearance Management Business Background By using work permits, you can make sure that safety measures for carrying out certain kinds of maintenance work are complied with and that safety barriers are not removed or shut down unless measures are taken to ensure safety during the maintenance work. The work permit serves as an operational safety barrier to help protect workers and prevent accidents. A work permit is a written document that authorizes specific persons to carry out specific work at a specific time. It describes both the work to be carried out and the requirements that must be At the same time, fulfilled. it ensures that the technician cannot start working until all the required and appropriate safety measures have been taken. It is the duty of everyone involved in the planning, approval, and execution of the maintenance work to evaluate whether or not a work permit is required. Key Features The following features support you with this process: Key Feature Use Creating a work permit for a You can create a work permit for a maintenance order. One order can have several work maintenance order permits, typically separated according to validity, risk categorization, or job-related se­ mantics. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 237

238 Key Feature Use work permits with re­ Defining Work permits might have a restricted validity (for example, for one day only). In such stricted validity cases, an ongoing maintenance order to be continued the next day would then require a new work permit. If appropriate, the new permit could be copied based on an existing one (and slightly adapted in case of changed safety considerations) and would have to be approved again. Work permits might be categorized by risk level. For example, level 1 could be for highly- Defining work permits for prede­ critical work requiring strong protection and/or coordination measures, level 2 could be risk levels fined for less critical work. If a maintenance order requires both highly-critical repair work and less critical cleaning work for example, it would be appropriate to assign two separate work permits (one level 1, one level 2) to this order. Note that you can also combine dif­ ferent risk levels with different validities. In the Oil & Gas industry, for example, it is com­ mon to distinguish between two levels of work permits as follows: Work permits of level 1 are used for work that involves high risks and hazards. This ● work requires a comprehensive safety and approval process. It includes hot work, work in an area with special entry restrictions, and so on. Level 1 work permits are usually valid for only one working shift. An extension of the work permit is only pos­ sible under certain conditions (for example 4 hours). Afterwards, the work permit can no longer be extended. If the work is not yet completed at this point in time, a new work permit must be applied for. ● Work permits of level 2 are used for all work with lower risks/hazards. This work predefined must also be completed within a time period, although the time period is defined more generously (for example 14 days). Defining work permits for dedi­ Work permits might also be separated by dedicated semantic safety aspects, deter­ cated safety aspects mined by the maintenance job to be executed. In case of huge maintenance orders with multiple job tasks, it might therefore be necessary to apply for multiple work permits representing safety for the different semantic aspects (such as a radiation permit and a hot work permit). Creating a safety for a In case of more extensive safety aspects to be covered by a work permit (requiring an certificate work permit individual planning, approval, or execution process), it is appropriate to assign dedicated safety to the work permit that describe such safety aspects in detail. A com­ certificates mon example for such a safety certificate is an isolation list (such as an electrical isola­ tion list or a valve & blind list) specifying all the technical objects of an asset that need to be processed/switched in conjunction with a lockout/tagout. Approving work permits and certain rules or requirements that must be observed during define Approvals are used to certificates processing of both work permits and safety certificates. In particular, you can use appro­ safety vals as follows: ● To explicitly confirm the execution of certain safety-related activities (by issuing the respective approval) ● To block certain activities (until the required approval has been issued) ● To clearly visualize that all described safety measures have been executed (as soon as all respective approvals are issued) and maintenance work can be performed safely SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 238 PUBLIC

239 Key Feature Use This process consists of switching (for example, tagging/untagging) technical objects Processing isolation lists specified in an isolation list so that work and tests can be performed safely. To ensure the sys­ conflicts, that the lockout/tagout process can be performed safely and without tem provides checks and simulations. 3.1.1.2 Linear Asset Management Business Background You use linear asset management to manage the entire lifecycle of linear assets like roads, rails, pipelines, or electricity transmission lines. The process will help you to optimize the reliability, availability, maintainability, and safety of the networks and infrastructure you are responsible for. Linear asset management is a comprehensive, integrated process that facilitates and connects linear asset management activities with enterprise processes and data. In addition, the process helps you to improve asset management effectiveness, efficiency, and strategy, thereby boosting asset reliability and return on investment. Key Features The following features support you with this process: Key Feature Use Managing infrastructure flexible You can manage infrastructure networks of continuous assets and make use of dynamic segmentation functionality to visualize the network and assets configuration. Defining and controlling You can define and control asset configuration, capacity, capability, and condition in one database, and automate asset lifecycle management in complex operational environ­ ments. Managing master data You can manage master data about critical network assets that helps cut asset down­ time, and saves time that used to be spent searching multiple systems and files for documents such as maintenance procedures and drawings. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 239

240 3.1.1.3 Integration with Asset Central Business Background SAP S/4HANA supports the integration with Asset Central (currently Asset Intelligence Network). You can transfer your technical objects with their details into Asset Central. Key Features The following table explains the key features available: Key Feature Use Technical object details The system supports the navigation to Asset Central to view details on the technical object. You can create references from technical objects in SAP S/4HANA to a corre­ Technical object references sponding model in Asset Central. You can create a technical object and synchronize it with the Asset Central Data synchronization equipment or location and vice versa. You can transfer document attachments between Asset Central and SAP S/ Document synchronization 4HANA. Notification You can transfer maintenance notifications between Asset Central and SAP S/ replication 4HANA. Work order replication You can transfer work orders from SAP S/4HANA to Asset Central. 3.1.2 Resource Scheduling 3.1.2.1 Resource Scheduling Business Background SAP S/4HANA Asset Management for resource scheduling allows you, as a maintenance planner, to monitor and manage the utilization of your work centers. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 240 PUBLIC

241 Key Features You can use the following key features: Use Key Feature You can monitor important KPIs for your work centers, such as the following: Get an overview of KPIs related to mainte­ nance planning Number of maintenance orders that have at least one due operation in the ● next four weeks, sorted by priority  Note The display time period starts on the current date and includes the re­ maining days of the current calendar week plus the following three calendar weeks. If the current date is not the start of a calendar week, the actual display time period is shorter than 28 days. ● Utilization of your work centers ● unconfirmed opera­ Number of maintenance orders that have at least one tion with an end date in the past six months, sorted by processing status Gain transparency about the utilization of You can see at a glance which of your work centers are overloaded and which your work centers and the current mainte­ still have free capacity. nance load Utilization of your work centers is calculated based on the available work cen­ ter capacity and the maintenance order operations, suboperations, and sched­ uled maintenance plans that are assigned to them. Visualize work center utilization based on You can graphically show work center utilization based on various attributes, various attributes such as work center, processing status, priority, or order type. Dispatch maintenance order operations and suboperations with one click to Dispatch one or multiple order operations that they are scheduled at the right place and time. confirm Level work center utilization by moving or­ You can change the start date and work center for one or multiple order opera­ der operations to another date or work tions at once, for example, to level capacity for overloaded work centers. center Visualize the maintenance work for your You can visualize on a timeline the maintenance order operations and suboper­ ations in your work centers as well as their processing status, thus gaining work centers transparency about what needs to be done when. You can set up a schedule for the due maintenance order operations in your Create a schedule for the due mainte­ nance order operations in your work cen­ work centers. Checking the utilization forecast at weekly level and at daily level, ters and dispatch them in one go you can keep adjusting your schedule until you are satisfied with the utilization of your work centers in the target week. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 241

242 3.1.3 Geographical Enablement Framework for Asset Management Business Background Geographical Enablement Framework for Asset Management enables you to gain a comprehensive overview of your business data. You can see EAM business objects (pieces of equipment, functional locations, notifications) on a map that allows you to analyze your data in a maintenance orders, and maintenance geographical context. Key Features The following table explains the available key features: Key Feature Use Display and Find Business Objects on the You can display and find business objects with assigned geospatial data on the map. Map Assign Geospatial Data to Technical Ob­ When you create a technical object (piece of equipment, functional location) or jects (Manual and Automatic) a maintenance document (maintenance order, maintenance notification), the system can copy the geospatial data automatically to the created business ob­ ject. In addition, you can also copy the geospatial data manually. Initiate a Business Process from a Map You can select a single technical object or a maintenance document on the map and the system processes it further. In addition, you can initiate your busi­ ness processes from the map by selecting multiple maintenance orders or maintenance notifications. Environment, Health and Safety 3.1.4 3.1.4.1 Incident Management Business Background You use the incident management solution to record and process incidents, safety observations, and near misses. This solution provides methods for recording the data to accommodate online and situations. offline After initial recording, you can collect additional information from the people involved, investigate why an incident occurred, and track the financial impact on the organization and its assets. You can report data to the relevant authorities and analyze injuries and illnesses. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 242 PUBLIC

243 Key Features The following scenarios and key features are supported: Managing Incidents You can record incidents that occur in your organization and report these to the relevant authorities. You can also investigate the causes that led to an incident, and initiate actions to prevent unsafe conditions and future incidents. To manage incidents, you can use the following features: Key Features Use Initial Incident Recording You can record basic information about an incident. This in­ cludes a description of the actual events as well as informa­ tion about the people and assets that were involved in the in­ cident. When the initial incident recording process is completed, the system automatically the processor responsible to notifies trigger follow-up activities. You can summarize the initially recorded data in a print form. This document is assigned to the incident record and you can use it as reference during the review and completion step. You can directly access incident records to review and com­ Review and Completion of Incident Records plete the information that was entered during initial incident recording. If you require additional information from others, you can start a process that sends out inquiry forms and au­ tomatically notifies you when these forms have been com­ pleted. You can review the forms before automatically trans­ ferring the form entries into the of the incident record. fields Depending on the regulations that are valid for your organi­ zation, you can generate different reports that can be sent to the authorities. Approval processes support you to validate reported information. Incident Investigation You can carry out an incident investigation to determine the causes that led to an incident. Depending on legal or organi­ zation-specific requirements, you can configure different in­ vestigation templates to include relevant investigation steps, such as a step for a root cause analysis and a step for les­ sons learned. Managing EHS Locations You can create and edit locations and specify a location hierarchy. You use locations, for example, to specify a workplace for which a risk assessment is carried out. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 243

244 To manage EHS locations, you can use the following features: Key Features Use If you want to reuse locations that exist as technical objects Location Import in a plant maintenance application, you can import them as locations into health and safety management. Location Structure Editing You can insert locations at different positions into a location structure to represent where these locations exist spatially or functionally in your company. The location structure also allows you to make mass changes to the attributes of multi­ ple locations in one go, instead of having to maintain each lo­ cation individually. Location Editing You can add new locations to the location structure or edit the master data of locations that already exist within the structure. Location master data includes the plant or com­ pany code to which that location belongs, and the precise position of the location, which can be visualized on an inte­ grated map. For locations that have been created manually, you can also establish links to technical objects. 3.1.4.2 Environment Management Business Background You use the environment management solution to record collect, process, monitor, and organize environmental data in order to be compliant with environmental legal requirements that are valid for your industry. This solution enables you to record collected data from manual and automatic input, and export that data, so that it can be prepared for reporting. Initially you create compliance requirements that contain the conditions which your plant must meet to stay environmentally compliant. You then create compliance scenarios where you organize the activities that ensure compliance within your locations. After you have assigned the relevant compliance requirements to your compliance scenarios, you create environmentally-related tasks and activities that need to be completed for the orderly running of equipment and facilities. You collect and calculate chemical and physical parameter data and monitor data records and the progress on tasks to keep track of the environmental impact of your industrial operations. You can report deviations from normal operation in the system, if they occur. Key Features The following scenarios and key features are supported: Managing Emissions SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 244 PUBLIC

245 You can record environmentally-related data from industrial operation in your organization and export the data so that it can be reported to legal authorities. You can also process data, and initiate tasks and activities to prevent future deviations. To manage environmental data, you can use the following features: Use Key Features Prepare Compliance Requirements You can create and define structured compliance require­ ments that contain conditions to which your industrial oper­ ations need to comply. You can create compliance require­ different types, based on what they are valid for. ments of When the compliance requirement is created, you can add environmental limits, against which the system runs checks on the recorded data. You can also add methodologies for the calculation of emissions, and add emission-relevant pa­ rameters, such as emission factors. Prepare Compliance Scenarios You can create compliance scenarios where you add data collections, sampling activities, data calculations, and aggre­ gations of environmental data. You can create and assign tasks to persons responsible, that need to be complete to ensure orderly running of industrial equipment and facilities at your locations. You can assign compliance requirements and environmental limits to your compliance scenarios, so that the system can check the collected or calculated data based on those re­ quirements. You can setup an automatic collection of data via RFC-ena­ bled external system, so that the system can import this data autonomously. Monitor Environmental Data You can oversee the progress of environmentally-related tasks, or you can monitor the environmental data recorded in the system, using one of the monitor applications. You can filter through data in the environmental data explorer in or­ der to have an organized overview of certain categories of data records. You can create deviation reports in case there is abnormal or Create Deviations incorrect operation of equipment which may lead to hazards. You can export deviation data in spreadsheets or file-based reports. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 245

246 3.1.4.3 Health and Safety Management Business Background You use the health and safety management solution to assess risks within your organization as they relate to the environment or health and safety of people. This enables you to comply with regulations and gain a comprehensive insight into the situations that involve risks. This solution supports you in identifying, analyzing, evaluating, and managing risks. You can take the appropriate actions necessary to reduce risks to acceptable levels and prevent any harmful effects to the health and safety of your employees and the environment. Key Features The following scenarios and key features are supported: Managing Chemicals for Health and Safety Processes You can approve chemicals prior to their use in your company, and enter relevant information for chemicals for which you need to assess risks. Additionally, you can create documents, such as safety instructions, that are used to inform employees about all health, safety and personal protection relevant aspects of the chemicals they use. To manage chemicals for health and safety processes, you can use the following features: Key Features Use Chemical Approval You can use the approval process for chemicals to ensure that new chemicals that are introduced in your company are approved from a health, safety, and environmental aspect before they are ordered. This approval process can be con­ figured to involve several parties, and you can specify several steps to be carried out by each approver. Data Entry for Chemicals You can enter information provided on safety data sheets and use the information for a subsequent risk assessment process. You can trigger the data entry for chemicals from the approval process or create a chemical manually and en­ ter the relevant information. Initiation and Processing of Risk Assessments for Chemicals After the approval of a chemical, you can start the risk identi­ fication process by identifying chemicals used at a certain location in your company. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 246 PUBLIC

247 Key Features Use As part of the risk treatment for chemicals, you can create Creation of Safety Instructions safety instruction documents for chemicals at a certain loca­ tion. A safety instruction summarizes all health and safety relevant information for a chemical, as well as the required protective equipment for safe handling at the location. This document can be used to train employees and inform them about safe handling of the chemical. Managing EHS Risk You can identify, analyze, evaluate, and treat risks that exist in your organization. You can take workplace samples to analyze exposure data for agents and compare exposure data to occupational exposure limits (OELs) set by your organization or regulatory agencies. In this way, you can determine whether exposure levels are acceptable for the corresponding locations or jobs. You can minimize identified risk within your organization by implementing risk-related controls and tasks. After you have assessed and treated a risk, you can communicate information about the risk at a location and the controls to reduce that risk to a plant maintenance process. In this way, the maintenance planner can include the risk information for the maintenance worker. You can also set up the application to receive requests SAP Management of Change to perform risk assessments from an integrated system, such as To manage risks, you can use the following features: Key Features Use Risk Identification You can identify risks that exist at specific locations or jobs within your organization. This involves identifying the haz­ ards, agents, and impacts associated with each risk. You can also specify existing controls that are used to minimize the risk. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 247

248 Key Features Use You can use different identified Risk Analysis assessment steps to analyze risks and determine risk levels for inherent risks and initial risks. The assessment steps for each risk assessment type are customizable, and you can use the standard analysis methods or incorporate your own analysis methods. Different analysis methods, such as an exposure analysis, are available for risk analysis. However, you can also define additional analysis methods or adapt the existing analysis methods according to your requirements. If you want to analyze the risk for a specific person or group of persons, you can create similar exposure groups (SEGs) based on locations or jobs. Employees that work at the loca­ tion or carry out the job and are exposed to the same agents can be grouped together. You can measure exposures for a small sampling of people and use this data to generate per­ sonal exposure profiles for all persons in the similar expo­ sure group. Workplace Sample Management You can take samples in a workplace sampling process to measure the exposure of workers to hazardous agents or their components. Workplace sampling provides, as a meas­ urement result, the average value weighted over time of an agent at the workplace. The result can be a shift average value or a short-time value in accordance with the short-time value concept. Workplace sampling can also be used to check the effective- ness of implemented controls. Risks Evaluation Based on the results of risk analysis, you can evaluate risks to determine whether they are acceptable for your organiza­ tion, or must be reduced through risk treatment. You can ei­ ther evaluate risks manually or use automatic risk determi­ nation to determine risk acceptability based on your configu- ration settings. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 248 PUBLIC

249 Key Features Use To reduce the risk level of risks that are not acceptable, you Risk Treatment new controls. You can specify how the control is can define to be applied, for example, which material or personal pro­ tective equipment should be used. You can also specify tasks for implementing each control. After all relevant con­ trols have been implemented, you can repeat risk analysis and risk evaluation to ensure that the risk has been reduced to an acceptable risk level. When a control is faulty or needs replacing and is already im­ plemented in treating risks, you can replace it with either a completely new control or just change how the control is ap­ plied. You can select the locations and instances of affected the control, and make the replacement all at once to reduce administrative effort. To treat health risk resulting from exposure to agents in the workplace, you can recommend that health surveillance be conducted to monitor the health of employees. You can then transfer your recommendations to an occupational health application. Risk Monitoring After a risk assessment is completed, you can continue to identified risk at your organization to monitor and review the verify that risk data remains valid, and that risk treatment is effective. You can schedule recurring control inspections, specify the inspection questions used to evaluate control ef­ fectiveness, and create any required follow-up risk assess­ ments. Managing EHS Locations You can create and edit locations and specify a location hierarchy. You use locations, for example, to specify a workplace for which a risk assessment is carried out. To manage EHS locations, you can use the following features: Key Features Use Location Import If you want to reuse locations that exist as technical objects in a plant maintenance application, you can import them as locations into health and safety management. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 249

250 Key Features Use You can insert locations at positions into a location Location Structure Editing different structure to represent where these locations exist spatially or functionally in your company. The location structure also allows you to make mass changes to the attributes of multi­ ple locations in one go, instead of having to maintain each lo­ cation individually. You can add new locations to the location structure or edit Location Editing the master data of locations that already exist within the structure. Location master data includes the plant or com­ pany code to which that location belongs, and the precise position of the location, which can be visualized on an inte­ grated map. For locations that have been created manually, you can also establish links to technical objects. 3.1.4.4 Management of Change Business Background More and more companies have realized that changes can have a negative impact not just on people or the environment but on the business itself. A change to improve one business objective often has unintended negative consequences on another business objective, be it product quality, safety, or operational costs. Management of Change helps you make operational changes with confidence. Users can mitigate risk by monitoring changes made to equipment, materials, chemicals, operating conditions, procedures, and organizational structure. They can document assessments, approvals, and task completion throughout the process. As a result, the business can make changes that facilitate growth – without disrupting operations or harming employees, assets, or the environment. Key Features The following table explains the key features available: Key Feature Use Create change request You select the type of change and provide basic information, such as a descrip­ tion of the change. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 250 PUBLIC

251 Key Feature Use You check if the provided information is sufficient and clearly described. Review and evaluate change request first You can collect additional information as required and involve multiple disci­ plines, for example, engineering, operations, and health and safety. Customized questionnaires help capture all relevant details and to control the process. Based on the collected information and evaluation results you decide whether Approve change request the change will be implemented. Release change request and drive change A change request contains activities such as tasks and approvals. They are executed by different processes responsible persons. You verify the activities that have been determined for the change request and adapt them to the requirements. Then, you monitor and control the implementation of the activities, so that you can complete the change request as intended. Execute activities You process the activity that is assigned to you as described: You document relevant details, and confirm the completion or document your decision. Database and Data Management 3.2 3.2.1 Enterprise Information Management Master Data Management 3.2.1.1 3.2.1.1.1 Master Data Governance Business Background Master Data Governance (MDG) reliably supports you in keeping your master data consistent even when your system landscape is complex and distributed across various locations. MDG enables you to adjust your master to new requirements and to business transactions reflect legal changes and respond flexibly data quickly to such as takeovers of other companies. MDG also enables you to track changes made to master data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 251

252 MDG, central governance provides central ownership of master data in line with a company’s business rules and business processes. MDG, central governance delivers applications as well as a framework domain-specific custom-defined master data. MDG, central governance change request-based processing of master for offers workflow, data with an integrated staging, approval, activation, and distribution to all systems. MDG, central governance can use SAP’s as well as company-specific business logic to create master data ready to be used in a company’s business processes. MDG, consolidation provides an understanding of enterprise master data that is owned and maintained de- centrally. MDG, consolidation delivers capabilities to standardize the master data and to detect duplicates. For each of the resulting match groups, MDG, consolidation calculates a best record out of the duplicates in that group, using survivorship rules on the master data attributes. The best records can be used in dedicated analytical or business scenarios. MDG, mass processing enables you to update multiple master data records at a time. To update records, you fields select the and records you want to change. Once you have made your changes, the system provides statistics on the changed fields and validates the data for use in business transactions before activating the changes. MDG, master data quality provides capabilities to define and catalog data quality rules for product master data. During the lifecycle of rules, collaboration and status handling from creation to sunset is provided. You can use these data quality rules to provide transparency on business aspects and rule ownership. MDG, master data quality applies your rules to product master data to detect errors and to initiate their correction. Process analytics for master data provides overview pages and analytical list pages displaying relevant process information for applications in central governance, consolidation, and mass processing. Key Features The following table explains the key features available: Use Key Feature You can use the following central governance applications: Master Data Governance, Central Gover­ nance ● Master Data Governance, Generic Functions ● Master Data Governance for Custom Objects ● Master Data Governance for Financials ● Master Data Governance for Material ● Master Data Governance for Business Partner ● Master Data Governance for Supplier ● Master Data Governance for Customer SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 252 PUBLIC

253 Key Feature Use You can use the following consolidation applications: Master Data Governance, Consolidation ● Master Data Governance for Custom Objects ● Master Data Governance for Product ● Master Data Governance for Business Partner ● Master Data Governance for Supplier Master Data Governance for Customer ● Master Data Governance, Mass Process­ You can use the following mass processing applications: ing Master Data Governance for Custom Objects ● Master Data Governance for Product ● ● Master Data Governance for Business Partner Master Data Governance for Supplier ● Master Data Governance for Customer ● Master Data Governance, Master Data You can use the application Master Data Governance for Product. Quality Process Analytics for Master Data You can use the following central governance applications: Master Data Governance for Financials ● Master Data Governance for Material ● Master Data Governance for Business Partner ● You can use the following consolidation applications: ● Master Data Governance for Product ● Master Data Governance for Business Partner You can use the following mass processing applications: ● Master Data Governance for Product ● Master Data Governance for Business Partner 3.2.1.2 Data Quality Management Business Background SAP S/4HANA supports the integration with address cleansing solutions (for example, SAP Data Services or SAP HANA smart data quality) to provide postal address validation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 253

254 Key Features When a complex address cleansing solution (for example, SAP Data Services or SAP HANA smart data quality) is integrated and supports the below named features, SAP S/4HANA enables the address cleansing solution to provide the following key features: Key Feature Use When you enter a new customer, supplier, or partner record, Data Quality Man­ Postal address validation agement corrects and/or validates the address based on referential data sour­ ces, and formats the address according to norms of the applicable country. Duplicate checking ensures that duplicate addresses are not entered into the Duplicate checking and error-tolerant searching SAP system when users create a new address record or update an existing find customer records using par­ one. Error-tolerant searching allows users to tial information. Person and organization name cleansing Person name cleansing standardizes various components related to a person's name. Organization cleansing standardizes the names of companies, firms, and organizations. When a simple address cleansing solution (for example, SAP Data Quality Management, microservices for location data) is integrated and supports the below named features, SAP S/4HANA enables the address cleansing solution to provide the following key feature: Use Key Feature Postal address validation When you enter a new customer, supplier, or partner record, Data Quality Man­ agement corrects and/or validates the address based on referential data sour­ ces, and formats the address according to norms of the applicable country. 3.3 Finance Financial Planning and Analysis 3.3.1 3.3.1.1 Financial Planning and Analysis financial planning and analytics within S/4 HANA, is called The component, which provides functionalities for SAP BPC for S/4HANA . Business Background To effectively control and monitor your company, you need easy-to-use planning capabilities and up-to-date analytics. With planning, you set plans for your financial units, such as profit centers or market financial segments. At the end of the planning period, you compare the actual data with the plan data to determine the success of the financial units. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 254 PUBLIC

255 Key Features The following table explains the key features available: Use Key Feature central, integrated place for all financial Integrated Financial Planning SAP BPC for S/4HANA provides a planning data. It also provides real-time access to master data and actual data. Financial Planning using Microsoft Excel financial planning using Microsoft Excel and SAP Busines­ You can perform sObjects Analysis, edition for Microsoft . SAP provides various applica­ Office tions for planning on years or fiscal periods. You can adapt these plan­ fiscal ning applications according to your needs. Integration to Planning Func­ You can use a large set of planning functions available within SAP BPC for S/ S/4HANA tions 4HANA, such as top-down distribution or recalculations. To perform planning functions in the SAP Business Suite, you can copy the planning data from SAP BPC for S/4HANA to the SAP Business Suite. You can afterwards copy the data back to SAP BPC for S/4HANA to use its SAP HANA-enabled reporting capabil­ ities. SAP HANA-Enabled Reporting HANA-enabled to provide real-time Reports on plan data and actual data are flexible access and analysis capabilities. We provide sample BI content for planning and reporting that you can use as it Sample Content is adapt it according to your needs. or This sample planning content, for example, contains workbooks which allow you to plan on various cost objects with a focus on overhead accounting. There are other workbooks with which you can perform various types of plan data al­ location. Accounting and Financial Close 3.3.2 3.3.2.1 Central Finance Business Background With Central Finance you can transition to SAP S/4HANA without disruption to your current system landscape, which can be made up of a combination of SAP systems of different releases and also, with some additional effort, non-SAP systems. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 255

256 Key Features The following table explains the key features available: Use Key Feature Mapping of Accounting Entities You can map the various accounting entities in your source systems to one common set of master data in the central system. Financial accounting (FI) and management accounting (CO) postings are repli­ Replication of FI and CO Postings cated to the central system. There, FI documents and CO postings are com­ bined into one document in the central system; the universal journal entry. In addition, all cost elements are part of the chart of accounts. Replication of Cost Objects Before you replicate CO postings to the central system, you need to make sure that accounts are available for all cost elements in the central system. You can also replicate cost objects (for example, internal orders) to the central system. These represent the business transactions in logistics (for example, produc­ tion, maintenance, and quality) and may not be at an appropriate granularity in the central system. For this reason, you can choose to transfer some cost ob­ jects, such as long-living internal orders, directly to orders in the central sys­ tem and to map other cost objects, such as short-living production orders, to more long-living cost objects, such as a production cost collector, in the central system. Internal postings within Replication of EC-PCA Postings center accounting (EC-PCA) are replicated to profit your Central Finance system. In the Central Finance system, an EC-PCA posting becomes an FI posting (uni­ versal journal entry) in a dedicated ledger. Replication of Commitments Commitments and commitment updates are replicated in real-time from one or more source systems to your Central Finance system, allowing you to also report on committed amounts in your cost object reports. The Central Projects (WBS) - Reporting Scenario allows you to subsequently Central Projects (WBS) - Reporting Sce­ nario post FI documents (journal entries) and CO documents with the account as­ signment to a work breakdown structure (WBS) element and use the project reporting on costs and revenues posted to WBS elements in the Central Fi­ nance system. Harmonized Financial Reporting Central Finance allows you to map to a common reporting structure with which you can report on financial figures originating in different source systems, ben­ efitting from the new reporting capabilities (leveraging HANA and the new data model) in the central system. Simplified Mergers and Acquisitions Using Central Finance, the systems of acquired companies can be integrated more easily. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 256 PUBLIC

257 Key Feature Use Central Payment allows you to make centralized payments and perform cen­ Central Payment tralized clearing activities in the Central Finance system instead of each source system. It contains the following main features: Activate central payment by company code. ● ● For company codes that are activated for central payment, new invoices posted in the source systems are technically cleared. The invoices are re­ plicated to the Central Finance system and are paid there. ● For company codes that are not activated for central payment, the invoi­ ces posted in source systems stay open and are paid in the source sys­ tems. The invoices and payment or clearing documents are replicated to the Central Finance system for reporting purpose. The replicated invoices are ruled out from the payment or clearing transactions in the Central Fi­ nance system. This avoids duplicate payments (as payments are to be processed in the source systems). ● Mandate replication between source systems and the Central Finance sys­ tem is automated so that SEPA direct debit is supported in the Central Fi­ nance system. ● Integration of SD-related down payments into Central Finance, allowing you to do the following in your Central Finance system, instead of in your source systems: ○ Make down payments related to a sales order (condition or request based) ○ Carry out clearing activities for down payments and invoices As payments may adjust the indirect taxes calculated when the invoice was Central Tax Reporting posted, it can become necessary to report indirect taxes from the Central Fi­ nance system when Central Payment is activated. Note  Calculation of taxes from your SAP S/4HANA Central Finance system and any reporting based on this calculation covers a certain scope and may not meet all of the reporting requirements in your jurisdiction. You must check with your accounting or tax experts in order to make sure that the results generated by Central Tax Reporting are fully compliant with your relevant jurisdictions’ tax reporting requirements. specific For information on which tax reports are supported in Central Tax Report­ ing, see the documentation on the SAP Help Portal. Related Features It is also possible to connect SAP S/4HANA Cloud editions as a source system. For additional information about connecting the SAP S/4HANA Cloud system, contact SAP. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 257

258 3.3.2.2 Financial Closing Cockpit for Entity Close Business Background The Financial Closing cockpit supports you in planning, executing, monitoring, and analyzing financial closing tasks for the entities of your group. You can perform local close for the companies of your group on a monthly, definable range of closing operations. Local quarterly, or yearly basis (or at other intervals) with a freely accounting principles and/or principles applied by the group can be taken into account. More generally you can use the Financial Closing cockpit in the following cases: ● Activities recur periodically. ● Multiple responsible agents are involved. Activities are performed within a process that has a fixed chronological sequence or is determined by ● dependencies. ● The status of all periodic activities needs to be documented and made transparent and available for everyone involved. Key Features The Financial Closing cockpit comprises the following features to facilitate the optimization of your entire closing process: ● Event-driven organization of closing activities ● Process overview and monitoring options ● Analysis tools Closing operations include the following tasks: ● Maintain exchange rates ● Execute recurring entries ● Clear open items Perform inventory and post inventory ● differences ● Reclassify clearing account for goods receipt/invoice receipt ● Value inventory ● Perform closing operations in the subsidiary ledgers ● Perform foreign currency valuation ● Reclassify receivables and payables ● Use functions for tax on sales/purchases ● Perform reconciliation between affiliated companies; these intercompany reconciliations are used in preparation for consolidation. Close accounting period and open new period ● ● Display financial statements ● Carry forward balances SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 258 PUBLIC

259 ● Evaluate statements financial Corporate Close 3.3.2.3 Group Reporting 3.3.2.3.1 Business Background The group reporting solution provides functions for group accounting and management reporting by supporting process control, data collection, data quality control, consolidation, and reporting. It is tightly SAP S/4HANA Finance and can directly access legal and management accounting from the integrated with universal journal. The granularity of data in group reports can be increased so that operational accounting data is exposed to the corporate group level. Drilling down from reports to the operational accounting journal is also supported. Key Features The following table explains the key features available: Key Feature Use Master data Consolidation objects come with master data maintenance apps or Customiz­ ing activities. The main objects are the consolidation chart of accounts and the consolida­ tion units and groups that represent organizational entities. Consolidation units are the smallest consolidation relevant organizational units and are grouped into consolidation groups. You can collect statement related data from SAP systems as well as financial Data collection non-SAP systems. Various procedures are available for doing this, for example, with direct integration to the accounting module that resides on the same sys­ tem tenant. Data preparation You can check the consistency of reported financial data by using validation rules. The reported financial data can be translated into the group currency. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 259

260 Key Feature Use Consolidation Consolidation rules can be applied for interunit eliminations and consolidation of investments and executed on the reported data. Validations can be used to check the consistency of the consolidated financial data. Reporting financial reporting and data analysis. SAP Fiori analytics can be used for basic Reporting rules can be applied at report run-time. 3.3.2.3.2 Business Consolidation Background Business Consolidation enables you to periodically schedule, generate, and monitor your consolidated financial statements. This is possible for subgroups or the consolidated group, under legal aspects or for the specifically purpose of consolidated Management Reporting. This process offers a high degree of flexibility with regard to the timing of closings as well as the configuration of different accounting principles. You can automate the necessary consolidation steps to a considerable extent and supplement them with manual closing tasks. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 260

261 Key Features The following features are available to you as a corporate accountant: Use Key Feature Versioning helps you run different consolidations in par­ ● Master data criteria, for example: different allel using For actual, plan and target data ○ ○ For parallel financial accounting (for example, U.S. GAAP, IFRS) ○ For simulations ● The smallest element of the corporate structure in con­ solidation is the consolidation unit. A consolidation unit can represent a company, a center, a business profit area, or a plant. You use consolidation groups to combine a desired ● number of consolidation units for purposes of consoli­ dation and reporting. ● You use financial statement items to enter, post and evaluate monetary values. Data collection You can collect individual financial statement data from SAP systems as well as non-SAP systems. Various procedures are available for doing this. Consolidation tasks enable you to translate the Consolidation tasks financial data that is collected from each local currency into the group currency. You can also eliminate the financial statement im­ balances that result from group-internal relationships. For example, the following consolidation tasks can be auto­ mated: ● Currency translation ● Interunit elimination (including elimination of IU paya­ bles and receivables, elimination of IU revenue and ex­ pense, and elimination of investment income) ● Elimination of interunit profit and loss in transferred in­ ventory Consolidation of investments ● ● Reclassification Execution and monitoring of the consolidation process You use the consolidation monitor to run the consolidation tasks and to monitor the entire consolidation process. Reporting Once the consolidation tasks have been completed, you can analyze the data in reports. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 261

262 3.3.2.4 Advanced Compliance Reporting Business Background You use the advanced compliance reporting to get an optimized overview of your compliance reporting tasks, and to generate and send the compliance reports to the government on time. The basic compliance reporting features are part of SAP S/4HANA Enterprise Management. On top of these features, SAP S/4HANA provides additional features which require an additional license. Key Features Use Key Feature Run advanced compliance reports You can perform embedded analytics for compliance reports using data analy­ sis. You can track the items considered for reporting under a specific report run for the supported reports. This tracking helps to analyze and audit these docu­ ments. You can visualize and interpret output formats in a user-friendly and consistent manner using the data preview feature. You can make manual changes to the document data after the document has been generated. Advanced compliance reporting currently supports the Manage Tax Items for Legal Reporting activity that allows a G/L accountant to move one or more tax items between the reporting periods by changing the tax reporting date. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 262 PUBLIC

263 Key Feature Use advanced compliance reports You can use advanced compliance reporting design time application to Define define additional compliance reports. Some of the features of design time application are: ● to extend an existing report defi- definitions You can use reference report nition, both SAP standard as well as the ones created in your namespace. ● You can create and assign reporting activities that are relevant to your re­ porting process. Advanced compliance reporting currently supports the activity that allows the posting of tax payments for the Tax Payable Posting already generated VAT returns. ● You can create report categories. You must assign country, phases, organi­ zational units, and activities to a report category. ● You can reuse existing report categories by creating report categories with reference. When you create report category through reference, the inher­ ited attributes remain read-only. You cannot delete any of the inherited at­ tributes. You can, however, assign new activities for the report category. You can specify the output documents in diverse formats, for example, ● flat files, PDF, or JSON. XML, ● You can map elements with multiple data sources, such as, database ta­ bles, database views (including CDS views), analytic queries (CDS), BEx queries, and BRFplus functions. Generate and submit advanced compli­ With advanced compliance reporting, you can generate the following reports, in addition to the ones listed in 35 ] : ance reports Basic Compliance Reporting [page Audit Data Extraction and Reporting for China ● ● Audit File for United Arab Emirates ● GST Data summary for Australia Business Activity Statement (BAS) ● BBBEE Supplier Classification for South Africa ● Computerized Accounting System reports for Philippines ● files for Malaysia Goods and Service Tax Audit ● Magnetic Media Reporting for Columbia ● Transfer Input VAT and Construct Report for input VAT for China ● Value Added Tax (VAT) for Argentina, Egypt, Mexico, Saudi Arabia, South Africa, United Arab Emirates, and Venezuela ● Withholding tax reporting for Indonesia (PPH 4(2), PPH 15, PPH22) SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 263

264 3.3.3 Treasury Management Payments and Bank Communications 3.3.3.1 Business Background Payments and Bank Communications streamlines, controls, and gives better transparency into business’ communications with your banks. Automated payment workflows streamline routing and approval processes. Treasury managers can ensure compliance by using rules-based approval workflows that guarantee proper financial payment approvals and documentation. With central in-house control over cash, managers can decrease dependency on banks and the need to transfer cash to regions. Key Features Key Feature Use Bank Communication Management Managing Multiple Bank Communication Interfaces Bank Communication Management supports communica­ tion with multiple banks via SWIFT net, service bureaus or other channels. Receive Payment Status Messages Payment status messages can be received and displayed in the payment status monitor. You can use this function to dis­ play status messages containing status codes and status reason texts for particular batches or payments. Merge Payments from Different Payment Runs Group together payments from several payment runs into one payment run and transfer them together on payment media. Approve Payments You can use this function to display a work list of payment batches for processing. You can then choose to approve or reject batches from the worklist. After full approval, the pay­ ment medium for the batch will be created and sent to your bank. Batch and Payment Monitor With this function you can access an overview of batches (groups of payments) and see their current status. You can drill down to the payments in each batch and access infor­ mation on their release (approval) process and status his­ tory. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 264 PUBLIC

265 Key Feature Use You can display the status of bank statements from individ­ Monitoring your Bank Statements ual house bank accounts. A bank statement that is delayed or that does not reach the identified with this function just as quickly as monitor can be occurring between the bank statement bal­ any differences ance and the internal G/L account balance. Any items that differences in posting are also are not assigned as well as recognized in this way. Alerts Define timeouts and trigger alerts, for example when not re­ Define ceiving an acknowledgement for a particular batch within a defined time interval. In-House Cash affiliate has one or more current ac­ In-House Cash acts as an internal bank within the corporate group, with which each counts (e.g. in different currencies). Key functionality is the processing of internal payments between affiliates as well as external payments between affiliates and external business partners. In addition, incoming payments can be routed to the relevant affiliates. With help of In-House Cash the amount of external bank accounts required can be reduced as well as the number of cross border payments. The In-House Cash account is the central object and is cre­ Manage Master Data affiliate. The affiliate ated for each participating has the role of the account holder. Within the account master data following information are stored: ● Account balance as well as the turnovers ● Account holder and account currency ● defined to calculate interest and Conditions can be charges to be debited or credited when accounts are settled. They also determine the value dates for pay­ ment transactions and account balancing. ● Limits can be defined to restrict the amount-based dis­ posal on account level. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 265

266 Key Feature Use In-House cash supports the following payment processes: Payment Processes ● Internal payments: process of clearing payables and re­ (credit transfer as affiliates ceivables between group well as direct debit is supported) ● affiliates to external Central payments: payments from business partners (credit transfer as well as direct debit is supported) Local payments: cross-border payments initiated by af­ ● filiates are transferred into a domestic payment by sending an external payment via the FI system of a local (to save costs) affiliate External incoming payments: e.g. incoming payments ● offered by the external that result from zero balancing banks ● Central payments with several In-House Cash centers: Cross-bank area postings enable payments between two In-House Cash Centers via all existing In-House Cash Centers. Route Processing for External Payments The aim of route processing is to determine a clearing part­ ner to make the payment. You can use this process for all types of external payments: Local payments ● ● Central payments Account Balancing The account balancing function is used to settle the ac­ counts. Account balancing is triggered periodically (e.g. daily, weekly, monthly) in accordance with the entry in the account master data. Interest and charges for the accounts due to be balanced are calculated and posted on the basis of the defined conditions. Bank Statements Bank statements for the accounts managed in the In-House Cash are automatically created on a regular basis, sent and posted in the FI system of the affiliates. General Ledger Integration In-House Cash is set up as a subledger. Therefore all items posted on the current accounts have to be transferred dur­ ing an automated end-of-day procedure to the correspond­ ing general ledger accounts as totals. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 266 PUBLIC

267 Key Feature Use Cash Concentration means the automated generation of Cash Concentration payment orders that debit or credit accounts within an ac­ count hierarchy on a regular basis, e.g. daily, weekly, monthly. For example a certain minimum balance can be de­ fined or the remaining balance on an account is always to be transferred to another account. Cash and Liquidity Management 3.3.3.2 3.3.3.2.1 Cash Daily Operations Business Background Every day, cash managers need to perform tasks such as monitoring cash positions, making bank transfers, approving payments, and so on, to ensure the corporate functions and the business runs with enough fund. Key Features Key Feature Use Bank statements You can use this feature to import and mannually create bank statements. Bank statement import status You can use this feature to monitor the import status of bank statements for all the bank accounts that are set to be moni­ tored. Cash positions You can use this feature to check the actual and forecasted cash positions with flexible selections of analytical dimen­ sions such as bank, country, company code, and so on. Cash flow items You can use this feature to track document line items that have impact on your company cash flows, for example, invoi­ ces, payments, bank statements, transactions, financial memo records, and so on. Bank transfers You can use this feature to initiate a bank-to-bank transfer and track the status of the bank transfers that you made re­ cently. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 267

268 Key Feature Use You can use this feature to create or remove cash pools, Cash pooling which can later be used in cash concentration between the assigned bank accounts. You can use this feature to approve or reject outgoing pay­ Payment approvals ments before the payment are sent to banks. files Memo records You can use this feature to create memo records manually and edit memo records in a list. Bank Relationship Management 3.3.3.2.2 Business Background To centrally manage the corporate or business bank accounts in a company, cash managers need to carry out activities such as monitoring, creating, modifying, closing, and reopening bank accounts, as well as performing annual reviews.  Note This solution is intended for corporate and business bank accounts only. You should not use it for personal bank accounts. Key Features Key Feature Use You can use this feature to display, create, and change data Banks and house banks about the banks and house banks that your company, your customers, and your suppliers use to transact business. You can use this feature to define master data for your com­ Bank account master data pany's corporate or business bank accounts, such as: ● Common properties of bank accounts ● Payment signatories ● Overdraft limits ● Bank account groups SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 268 PUBLIC

269 Key Feature Use processes You can use this feature to control the process of opening, Workflow modifying, closing, reviewing, and mass changing signato­ ries of bank accounts Dual control You can use this feature to implement a dual control process for bank account management. With this process, revisions are saved whenever users create, modify, copy, reopen, or close a bank account. The revisions have to be activated by effective. another authorized user before they become Bank account reviews You can use this feature to perform the following tasks: ● Initiate a review process for selected bank accounts to ensure that the bank account master data is up to date Review bank accounts that are assigned to you ● Check all the review requests that are in process or ● completed You can use this feature to track and process requests that Sent and received requests you have sent or received for opening, modifying, closing, re­ viewing, and mass changing signatories of bank accounts. Foreign bank accounts You can use this feature to check the foreign bank accounts and responsible signatories in your company. The informa­ tion can be used for legitimate reports or analytical pur­ poses. Bank fees You can use this feature to perform the following tasks: Import bank services billing to your system ● files Monitor imported bank fee data ● ● bank fee conditions and use the conditions to Define validate imported bank fee data Bank correspondence You can use this feature to generate correspondence letters to banks for bank accounts that are set to closed or have payment signatory changes in the system. Liquidity Management 3.3.3.2.3 Liquidity Management Cash managers need to make estimates of future cash flows so that they can see clearly what payment obligations are to be fulfilled and whether there is the need to make investment or funding plans. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 269

270 Key Features Key Feature Use You can use this feature to develop and analyze liquidity Liquidity planing plans. You can track the status and trace liquidity planning cycle to get an early warning indicator of liquidity shortages or a steering tool for medium- and long- term investment or borrowing. Cash flow analysis and forecast You can use this feature to do the following: Check the daily cash inflows and outflows ● Analyze the past actual cash ● with various dimen­ flows sions ● Forecast the future liquidity trend with selec­ flexible tions of analytical dimensions, such as bank, country, company code, and so on. Snapshot You can use this feature to enable automatical captures of cash positions, actual cash flows, and forecasted cash flows. This way you can view historical figures as they were at the time of any snapshot date and make comparison between different forecasts as well as between actual cash flows and forecasts. 3.3.3.3 Debt and Investment Management Business Background You can portray the process for managing your liabilities and capital investments. The following functional areas are covered: Front Office, Middle Office, Back Office, and Accounting. In addition, integrated posting and payment processes and integrated position reporting allow you to achieve compliance with legal requirements and regulatory standards. The integrated and automated processes (straight-through processing) provide further support by enabling you to focus on value-added activities. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 270

271 Key Functions Function Use In Transaction Management, you can enter financial Manage Financial Transactions transac­ tions for the following areas: Securities (stocks, investment subscription ● certificates, rights, bonds, bonds with repayment schedule, warrant bonds, convertible bonds, warrants, shareholdings) (fixed-term ● Money market deposits, deposits at notice, flow transactions, interest commercial papers, cash rate instruments, current account-style instruments, fi- duciary deposits) ● Facilities Derivatives swaps, forward rate agree­ ● (caps/floors, ments, total return swaps, OTC options) ● Listed derivatives (futures, repos, listed options) Forward securities transactions ● Securities lendings ● ● Forwards ● Forward loans ● Trade Finance (Letters of credit, bank guarantees) The type of financial transaction dictates which functions are available for processing the financial transaction across its lifecycle. Portray Intragroup Transactions Functions are also delivered that allow you to portray intra­ group transactions. Perform Central Clearing The functions for the clearing accounts allow you to portray financial transactions (for­ clearing of your clearing-relevant eign exchange transactions and swaps) by your central counterparty (CCP). ● Balance sheet transfers Manage Financial Positions ● Securities account management and futures account management provide a range of functions, such as a function for performing securities account transfers , functions for taking , and functions corporate actions for exercising security rights . Pay Flows You can use the payment program for payment requests to pay flows that are relevant for payment. Post Business Transactions in Financial Accounting Using the integration with Financial Accounting, your post­ ing-relevant flows can be posted in Financial Accounting. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 271

272 Function Use Manage Financial Positions in Parallel in Accordance with You use valuation areas to portray parallel accounting. You Different define a valuation area for each set of ac­ Accounting Principles therefore need to counting principles. You post the valuation results separately for each valuation area. Calculate NPVs You can calculate the NPVs of your financial transactions financial positions for a specific and key date, including credit and debit value adjustments if necessary. In Accounting, you can use the functions for valuating your Execute Key Date Valuation positions for a specific key date. financial Execute Accrual/Deferral You use accruals/deferrals to determine for each valuation area the expenses and revenues from financial transactions or positions for a given period and to assign them to the cor­ rect accounting period, irrespective of when they were ac­ tually due. Execute Valuation Class Transfer You can use the valuation class transfer function for individ­ ual or multiple positions from the "Securities" and "OTC Transactions" areas. You can transfer securities positions either fully or partially to other valuation classes. You can reverse the valuation class transfer. Execute Account Assignment Reference Transfer You use the account assignment reference to control which G/L account in Financial Accounting is used to manage the respective position. You assign an account assignment reference to each posi­ tion. With the account assignment reference transfer, you can post positions with their book value from one account assignment reference to another. This is similar to how fi- nancial positions can be transferred between G/L accounts. Analyze Financial Transactions and Financial Positions financial You can use a range of reports to analyze your transactions and positions specific to a key date or period. These reports are based on logical databases. Further, you can define your own reports on the basis of these databases. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 272 PUBLIC

273 Function Use Non-financial counterparties (NFCs) of derivative Perform Clearing Threshold Reporting financial instruments are not generally required to use a central clear­ financial ing partner to process these transactions. NFCs are required to perform clearing only in cases when they have transactions for risk mitigation not concluded these financial and when the rolling average position of these transactions specified clearing threshold values continuously exceeds the for a period of 30 days. Clearing Threshold Reporting (CTR) supports NFCs in monitoring their derivative trans­ financial actions that were not concluded for risk mitigation. The trade repository reporting functions support you in cre­ Perform Trade Repository Reporting ating trade repository messages. Once the process is com­ plete, your trade repository messages are available as a file on the application server for transfer to the trade repository. From the application server, you can also import and inter­ pret incoming messages for the trade repository and store them in Document Management. Determine Market Risks of Financial Transactions You can measure the market risk of your financial transac­ tions. You do this using mark-to-market methods, such as key figure analysis and NPV analysis. Furthermore, you can calculate your Value at Risk Cash Flow at Risk . or your You can measure, analyze, and control or limit your counter­ Limit Counterparty Risks party risk. You can calculate and monitor the rates of return on your fi- Calculate and Monitor Rates of Return nancial assets. Save and Analyze Position Components in the Result Data­ You can read the position component values of the positions base and Use Position Components as the Basis for Calcu­ and subpositions from the position management and store lating Additional Position Key Figures them as key figures in the Result Database. This enables you, for example, to store the position component values on a daily or weekly basis based on the original market data in the Result Database. You also can calculate your own position key figures (based on the original position components) that are not available in Position Management of the Transaction Manager. From the Result Database, you can generate reports in the Analyzer Information System (AIS), which displays these key figures. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 273

274 Function Use In Market Data Management, you store the market data that Manage Market Data trans­ you require for valuating and processing your financial actions (such as security prices, reference interest rates, vol­ atilities, and correlations). For this, you can use datafeed or the market data interface. Using datafeed, you can auto­ file mate the import of the required market data from your mar­ ket data provider. Transfer Legacy Data If you want to implement the Transaction Manger and your data (legacy data) are in a source system, you need to en­ sure that these data are available in the Transaction Manager for a key date. Legacy data is transferred to the system using a process comprising a number of steps. However, for some of these steps, you have alternative ways of transferring data. The standardized interfaces known as Business Application Transfer Data Using Standardized Interfaces Programming Interfaces (BAPIs) turn SAP applications into open systems that let you exchange data across system boundaries. Process Payments Using In-House Cash The system provides a BAdI with which you can connect pay­ ment programs, such as In-House Cash . Financial Risk Management 3.3.3.4 Business Background You can deploy robust analytical functions that perform thorough checks for foreign exchange risks and counterparty risks. You can model a range of scenarios to gain insights into the extent of risks at the time of the analysis. Further, you can apply effective hedge strategies in accordance with international accounting standards. The system provides all-round support throughout the hedging process, from identifying risks and quantifying and analyzing them through to hedging risks with optimum hedging instruments. For hedging instruments, the office office, middle office, and back complete process is covered, from front through to accounting. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 274

275 Key Functions Function Use In Exposure Management 2.0 Determine FX Risk Positions , you collect future incoming and outgoing payments of your company that are associated flows are either actual pay­ with an FX risk. These payment ments that already have a amount and time settings or fixed they are only planned payments. Exposure Management 2.0 helps you identify the risks in flows and provides integration with Hedge payment . Accounting for Exposures (E-HA) Hedge The exposure positions are also integrated with the process. Management of Net Open Exposures Review Balance Sheet FX Risks You can calculate and review balance sheet FX exposures and the related hedging transactions as well as the resulting net exposure. This feature is part of the Hedge Management and Hedge Management for Net Open Exposures Accounting of Net Open Exposures process. You gain an over­ view of the FX risk that your company is exposed to as well as of the financial transactions that you used to mitigate that risk. It reports FX exposures and financial transactions (hedges) managed in Treasury and Risk Management. The net open exposures, that represent the unhedged portion of figures are calculated, the FX exposures, and additional key supporting you in making your hedging decisions. In the transaction management, you can enter your hedging Manage Hedging Instruments instruments: ● Foreign exchange transactions (spot transactions, for­ ward exchange transactions, FX swaps) ● Derivatives (FX options, collar FX options) The type of financial transaction dictates which functions are available for processing the transaction across financial its lifecycle. Manage Incoming and Outgoing Transaction Correspond­ You can use the Correspondence Framework to automate processing of your transaction correspondence. ence for Hedging Instruments Portray Intragroup Transactions Functions are also delivered that allow you to portray intra­ group transactions. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 275

276 Function Use The functions for the clearing accounts allow you to portray Perform Central Clearing transactions (for­ clearing of your clearing-relevant financial eign exchange transactions and swaps) by your central counterparty (CCP). Balance sheet transfers ● Manage Financial Positions ● Securities account management and futures account management provide a range of functions, such as a , function for performing securities account transfers functions for taking , and functions corporate actions for exercising security rights . Pay Flows You can use the payment program for payment requests to pay that are relevant for payment. flows Post Business Transactions in Financial Accounting Using the integration with Financial Accounting, your post­ flows ing-relevant can be posted in Financial Accounting. Manage Financial Positions in Parallel in Accordance with You use different valuation areas to portray parallel account­ Accounting Principles ing. You need to Different a valuation area for each set of ac­ define counting principles. You determine the valuation results and then post them separately for each valuation area. Hedge Accounting for Exposure Items (FX Risk) As part of the Hedge Management and Accounting of Net Open Exposures process this feature enables you to perform hedge accounting for cash flow hedges to support IFRS 9 re­ quirements for the foreign exchange exposures that your company is exposed to including an automated designation process, which automatically designates hedging instru­ ments into a hedging relationship when the trans­ financial action is saved, classification and reclassification process of designated hedging relationships as well as the dedesigna­ tion process. ● You can manage hedging relationships which document Hedge Accounting for Exposures (FX Risk) the use of financial instruments to hedge your risk posi­ tions (exposures) against FX risks. ● You can portray fair value hedges (FVH) and cash flow hedges net investment hedges (NIH) for (CFH) including foreign subsidiaries . ● You can run effectiveness checks for your hedging rela­ tionships and to document your hedging relationships. It also offers valuation and accounting functions for hedge accounting purposes. In Accounting, you can use the functions for valuating your Execute Key Date Valuation financial positions for a specific key date. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 276 PUBLIC

277 Function Use You use accruals/deferrals to determine for each valuation Execute Accrual/Deferral transactions area the expenses and revenues from financial or positions in the Transaction Manager for a given period and to assign them to the correct accounting period, irre­ spective of when they were actually due. You can use the valuation class transfer function for individ­ Execute Valuation Class Transfer ual or multiple positions from the "Securities" and "OTC Transactions" areas. You can transfer securities positions either fully or partially to other valuation classes. You can reverse the valuation class transfer. Execute Account Assignment Reference Transfer You use the account assignment reference to control which G/L account in Financial Accounting is used to manage the respective position. You assign an account assignment reference to each posi­ tion. With the account assignment reference transfer, you can post positions with their book value from one account fi- assignment reference to another. This is similar to how nancial positions can be transferred between G/L accounts. You can use a range of reports to analyze your Analyze Financial Transactions and Financial Positions financial transactions and positions specific to a key date or period. These reports are based on logical databases. Further, you can define your own reports on the basis of these databases. Perform Clearing Threshold Reporting Non-financial financial counterparties (NFCs) of derivative instruments are not generally required to use a central clear­ ing partner to process these transactions. NFCs are financial required to perform clearing only in cases when they have financial not concluded these transactions for risk mitigation and when the rolling average position of these transactions exceeds the specified clearing threshold values continuously for a period of 30 days. Clearing Threshold Reporting (CTR) supports NFCs in monitoring their derivative financial trans­ actions that were not concluded for risk mitigation. The trade repository reporting functions support you in cre­ Perform Trade Repository Reporting ating trade repository messages. Once the process is com­ plete, your trade repository messages are available as a file on the application server for transfer to the trade repository. From the application server, you can also import and inter­ pret incoming messages for the trade repository and store them in Document Management. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 277

278 Function Use You can measure the market risk of your transac­ financial Determine Market Risks of Financial Transactions tions. You do this using mark-to-market methods, such as key figure analysis and NPV analysis. Furthermore, you can or your Cash Flow at Risk . calculate your Value at Risk You can measure, analyze, and control or limit your counter­ Limit Counterparty Risks party risk. Save and Analyze Position Components in the Result Data­ You can read the position component values of the positions base and Use Position Components as the Basis for Calcu­ and subpositions from the position management and store them as key lating Additional Position Key Figures in the Result Database. This enables you, figures for example, to store the position component values on a daily or weekly basis based on the original market data in the Result Database. You also can calculate your own position key (based on the original position components) that figures are not available in Position Management. From the Result Database, you can generate reports in the Analyzer Information System (AIS), which displays these key figures. Manage Market Data In Market Data Management, you store the market data that financial you require for valuating and processing your trans­ actions (such as security prices, reference interest rates, vol­ atilities, and correlations). For this, you can use datafeed or the market data file interface. Using datafeed, you can auto­ mate the import of the required market data from your mar­ ket data provider. Transfer Legacy Data If you want implement the Transaction Manager and your data (legacy data) is in a source system, you need to ensure that this data is available in the Transaction Manager for a key date. Legacy data is transferred to the system using a process comprising a number of steps. However, for some of these steps, you have alternative ways of transferring data. Process Payments Using In-House Cash System provides a BAdI with which you can connect pay­ ment programs, such as In-House Cash . Transfer Data Using Standardized Interfaces The standardized interfaces known as Business Application Programming Interfaces (BAPIs) turn SAP applications into open systems that let you exchange data across system boundaries. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 278 PUBLIC

279 3.3.3.5 Integration Scenarios Integration with External Trading Platforms 3.3.3.5.1 Business Background treasury management SAP S/4HANA supports the integration with external trading platforms (currently the integration for trading platforms application). provides an interface that allows foreign SAP S/4HANA exchange transactions traded on an external trading platform to be transferred to SAP S/4HANA . This enables figures seamless FX risk management processes as the key SAP S/4HANA are automatically updated to in reflect the traded amount. Hybrid Cash Management 3.3.3.5.2 Hybrid deployment for is supported. In hybrid scenarios, your SAP S/4HANA Cash and Liquidity Management system can integrate with other business systems. The following table explains the key features: Key Feature Use Replicating house banks, house bank accounts, and bank ac­ You can replicate house banks, house bank accounts, and counts bank accounts in the following scenarios: Between some certain versions of SAP S/4HANA sys­ ● tems ● Between your SAP S/4HANA system and some certain versions of SAP S/4HANA Cloud systems ● From your SAP S/4HANA system to some certain ver­ sions of ECC (ERP Central Component) systems Receiving and releasing cash flows from other business sys­ You can use a service to write, update, and delete cash flow tems data from integrated SAP S/4HANA systems and third-party systems. You can also use a review and release process to ensure the correctness of the data. 3.3.4 Commodity Risk Management Business Background With Commodity Risk Management you manage commodity futures, commodity forwards, commodity swaps, listed options, OTC options, and process the respective master and market data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 279

280 The Commodity Risk Analytics supports you in analyzing commodity price risks for commodity derivative and logistics positions. Starting from commodity derivatives and/or logistics transactions, the commodity price risk-related information is derived from the document flows. Treasury and Risk Management Commodity Risk Management . also uses selected functions of Key Features The following table explains the available key features: Key Feature Use Derivative Contract Specifications Market Data Management Based on DCS The market data is based on derivative contract ● (DCS) re­ specifications flecting rules and conditions agreed upon at an exchange or with other specifies the underlying commodity. The DCS market data providers, and is used for the automatic determination of maturity key dates, quotations, and trading periods. ● Price data of commodity derivative transactions is related to DCS-based market data. This setting applies also to the Commodity Pricing Engine (CPE) for purchasing and sales documents. ● Based on the DCS and market identification codes (MIC), the price data can be entered for defined price types and key dates, which determine contracts. MICs are not required for commodity forward. specific Commodity prices can be manually entered or uploaded by Microsoft Ex­ ● © cel files. DCS-Based Commodity Curves Commodity curves enable market data valuations. For the creation of a com­ modity curve, the system determines available market data and constructs the curve based on existing grid points. Datafeed Current and historical market data can be uploaded from external financial market data providers to the DCS-Based Market Data Management . A remote function call connection can be set up. Master Data Management You can enter and process master data for the DCS, the underlying commod­ ity, and commodity curves. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 280 PUBLIC

281 Key Feature Use With CDOTE you can create commodity subaccounts by uploading Microsoft Derivative Order and Trade Execution © files, or manually by using the Manage Commodity Subaccounts Excel Management (CDOTE) Fiori app. Furthermore, you can manage the order request process for commodity fu­ tures transactions, either by using the Manage Commodity Order Requests Fiori app, or getting them created by an API. After an order request has been fills created, commodity order request can be uploaded, which then trigger Com­ other processes, like the creation of commodity futures transactions in modity Risk Management . With the financial transaction framework in Treasury and Risk Management , Commodity Derivatives you can enter and process commodity derivatives of the derivative categories , and Commodity Future , Commodity Swap , Listed Option Commodity Forward , OTC Option . Furthermore, there is a settlement function to support the follow-up process­ ing like payments and postings. Free Characteristics You can define individual free characteristics, assign them to financial transac­ tions, and use them for reporting purposes. Determination of Commodity Price Risks Commodity price risks are derived from the life cycle of the commodity deriva­ from Commodity Derivatives tives, starting from the contract creation until its maturity. Reporting dates of exposure positions are determined by the referenced quo­ tation dates and respective commodity derivatives. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 281

282 Key Feature Use Commodity Risk Analytics comprises , Mark-to- Commodity Risk Analytics with CDS Views Commodity Position Reporting Profit for commodity derivatives , and Market Reporting and Loss Reporting (commodity futures, commodity forwards, commodity swaps, OTC options, and listed options) and/or logistics documents and material stock. Commodity Risk Analytics supports a snapshot-based and, in most cases, a real-time reporting, calculating risk-relevant key figures. It allows a conversion of mass and volume unit of measures for all quantity- figures, based key and supports the reporting in quotation, payment, and sta­ tistics currency. All available queries can be used by any tool that supports CDS views, such as Analysis for Microsoft Excel . Commodity Risk Analytics allows you to extend the provided queries in order to append your individual free characteristics. Commodity Position Reporting enables you to analyze the price risk quantities Commodity Position Reporting of commodity positions resulting from commodity derivatives and/or logistics transactions and material stock. These reports show key figures for outright exposure quantities, priced and un­ priced commodity position quantities. Mark-to-Market Reporting The Mark-to-Market Reporting calculates and shows you the undiscounted MtM values, contract values, and market values for commodity derivatives and/or unrealized logistics documents and material stock, as well as the MtM changes between two evaluation dates. Joint Reporting of Derivative and Logistics Transactions FIN_TRM_COMM_RM and The activation of both, business function , enables a joint Commodity Position Reporting and LOG_CPE_SD_MM Mark-to- Market Reporting of derivative and logistics transactions. A union data provider reads risk-relevant data from derivative and logistics transactions. The con­ suming CDS query provides a comprehensive set of key figures and attributes of different industries and cross commodities. Profit and Loss Reporting The Profit and Loss Reporting enhances the Mark-to-Market Reporting and is aimed to explain the root causes for changes in MtM values between two evalu­ ation dates. The P/L attribution shows how much each event (price and/or quantity change) has attributed to the MtM delta values for a certain period. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 282

283 3.3.5 Financial Operations Receivables Management 3.3.5.1 Collections Management 3.3.5.1.1 Business Background Collections Management supports you in proactive receivables management and collecting outstanding receivables. Using collection strategies, you can valuate and prioritize customers from a receivables fulfill the rules defined in a strategy are distributed to work lists. You can management view. Customers that call up your work lists and initiate contact with your customers in their order of priority. Once you have contacted the customer, you can document the result by creating a promise to pay, by setting the customer to resubmission or, if you are also using dispute management, by creating a dispute case. Key Features The following table explains the key features available: Key Feature Use Managing Master Data You can manage collection-specific data of business partners and use it for in­ tegration with other functions. Data, such as risk class and score, is included to the collection profiles of your business partners, if you are also using credit management. Creating Work Lists You can create collections work lists based on your collections strategy and team management principles and based on the accounts receivable data. You can prepare customer contact by checking valuation of customers accord­ Customer Contact ing to your collection strategy. You can get an overview of customer accounts and view past contacts and past payments. You can check resubmissions and choose contact persons. Supporting Collections Activities As a collector on the phone, you can renew promises to pay, create resubmis­ sions and document your customer contacts. If you are also using dispute man­ agement, you can create dispute cases. Monitoring of Incoming Payments You can check, whether incoming payments are received as promised and, if you are also using dispute management, you can check the dispute status of payments. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 283

284 Key Feature Use As a team leader, you can monitor the work list progress and reassign work list Supervise Collection Process items. You can assign the work list items to the collection specialists, both, manually and automatically. 3.3.5.1.2 Credit Evaluation and Management Business Background The creditworthiness and payment behavior of your business partners affect the business results of your company immediately. You use credit evaluation and management to reduce the risk of losses and to financial optimize business relationships with your business partners. It supports your company in determining the risk of losses on receivables from your business partners early and in making credit decisions efficiently, and even automated. Key Features The following table explains the key features available: Key Feature Use Master Data You can manage all credit-relevant master data of a business partner. This data includes the current credit limit, credit score and the risk class. Master data fields have a change history with information about the user, the time of change and the changed values. You can have the scores determined by the master data of the business part­ Business Partner Scoring ner, as for example by the country of origin, or by the payment behavior. Credit Limit Request You can calculate the credit limit of a business partner automatically and im­ plement an approval procedure where changes to a credit limit can be checked and approved by a the credit controller responsible. You can display credit-relevant data of your business partners, such as pay­ Credit Evaluation and Analyses ment behavior summary, credit exposure or credit limit utilization. You can an­ alyze credit profiles and credit limit utilization of business partners. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 284 PUBLIC

285 Key Feature Use To make decisions about blocked sales orders or the amount of the credit limit Documented Credit Decision quickly, credit evaluation and management supports the credit controller in de­ termining the required customer-related data and analyses. Negative credit decisions are saved, together with the data that lead to the de­ cision as documented credit decisions. You can process blocked sales orders in a work list with documented credit decisions. 3.3.5.1.3 Dispute Management Business Background Dispute Management allows you to investigate and resolve dispute cases for open invoices. For example, In business relationships, business partners frequently reduce the amounts of payments. These reductions have usually not been agreed with the payment recipient and therefore, the payment recipient has to investigate and resolve them. With dispute management you can organize and store all information and documents related to a dispute case. This includes data that already exists in accounting and new data that you enter when creating a dispute case. The dispute cases can be processed by the colleagues responsible in your company. Key Features The following table explains the key features available: Key Feature Use Organizing Documents Related to Dispute You can organize and store all information and documents related to a dispute case, such as sales orders, invoices or attachments. Cases Processing Dispute Cases You can create dispute cases, for example when post processing an account statement or during analysis of overdue open items. When you create a dispute case, the system copies automatically information from the journal entry, for example, the disputed amount, into the dispute case. You can also configure the system so that dispute cases are opened or closed automatically based on payments received. You can set and release dunning blocks and create correspondence, either manually, or configure the system so that correspondence is send automatically to your customers. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 285

286 Key Feature Use You can manage dispute cases that refer to accounts receivable, such as un­ Integration with Accounts Receivable derpayments or overdue items. You can make dispute cases visible in the ac­ counting transactions and update the information in the dispute case in clear­ ing transactions, such as in incoming payments or offsetting credit memos. So finding a solution to the you can include other colleagues and departments in dispute case from transactions that they know. All colleagues can check the current status of the dispute case. In clearing transactions the dispute cases are updated automatically and the processor of the dispute case is always in­ formed about the last activities in accounting. Assigning Credit Memos and Payments You can assign credit memos and payments to open invoices. When the sys­ tem clears an invoice for which a dispute case with credit memo or payment exists, the dispute case is updated. Analyzing Dispute Cases Reporting allows you to detect quality issues, control the workload, track the dispute process and manage deductions per customer. Contract Accounting 3.3.6 Business Background Contract Accounting provides the same functional scope as Receivables Management and Payment Handling in LoB Commerce. 3.3.7 Real Estate Management 3.3.7.1 Real Estate Management Business Background Real Estate Management is a comprehensive software solution with the ability to boost profitability by managing your real estate portfolio - irrespective of whether you manage corporate, commercial, or residential real estate. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 286

287 Key Features The following table explains the key features available: Use Key Feature You can use this feature to create master data objects required to manage your Property Portfolio real estate portfolio. CAD Integration You can integrate SAP 3D Visual Enterprise with real estate master data. CAD providers can use a standard interface to integrate other CAD solutions. You can create contract Contracts and contracts to map contractual relationships offers with your business partners. The contract type determines whether a contract is a lease-in (landlord/vendor contract) or a lease-out (tenant/customer con­ tract) as well as whether it is for properties or non-properties. It is also possible to create contracts for services, sales, or security deposit agreements. You can manage all important data in the contract, including terms and conditions, crit­ ical dates, contract objects, business partners, service charge settlement pa­ rameters, condition adjustment rules, and the cash flow. Critical Dates You can use this feature to define reminder dates, on which real estate objects or contracts are checked and submitted for continued processing. Sales-Based Leases You can manage sales-based and consumption-based lease agreements in a different product contract. You are able to report sales or consumption for types on a periodic basis for calculating and settling sales-based rent. Your posting-relevant flows can be posted in financial accounting. Beside peri­ Financial Accounting Integration odic postings based on contract conditions, you can also make postings for processes (for example, service charge settlement and sales-based settle­ ment), one-time postings, and accrual/deferral postings. You can manage out­ going and incoming payments for contracts, account statements (electronic bank statements and postprocessing of account statements), and dunning within financial accounting. You can use functions like cost planning, assess­ ment, and settlement also for real estate objects. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 287

288 Key Feature Use You can use this feature to automatically adjust conditions using different Adjustment of Conditions cal­ culation methods: Free adjustment (residential/commercial) ● ● Index adjustment (adjustment based on index levels) ● Adjustment based on representative list of rents (apartment) ● Adjustment based on comparative apartment rent (apartment) ● Adjustment based on modernization measure (renovation or moderniza­ tion of real estate object) Service charge settlement (adjustment of advance payments and ● flat rates) You can maintain and adjust conditions on contracts or on the following real estate objects: pooled spaces, rental spaces, and rental units. Service Charge Settlement You can use this feature to calculate and distribute apportionable costs for the use and maintenance of real estate (for example, heating, janitorial services, cleaning, repairs) to the tenants occupying the space, for a particular settle­ ment period, according to a number of different parameters. The service charge settlement, or charge-back process ensures that operating costs for services are accurately determined and billed. You can manage real estate objects that are owned by others. A specialized Third Party Management type of third-party management is acting on behalf of a condominium owners’ association (COA). Corporate Real Estate Management You can use this feature to optimize your internal room and space manage­ ment. You can plan and execute internal moves for the occupants of rooms. You can reserve meeting rooms and spaces for short periods of time. Land Management This feature integrates your company’s internal view with the public and legal view of land management. You can depict land registers, parcels and other public registers, link them to other master data objects, set up contracts, and run reports. Information System You can use reports to collect, summarize, and evaluate data all around real es­ tate management (for example, master data, contract data, and flow data). Correspondence You can create documents (in letter form, e-mail or fax) and send them to your business partners. You can either use standard correspondence or modify the correspondence to your individual needs. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 288 PUBLIC

289 3.4 Manufacturing Production Planning 3.4.1 3.4.1.1 Production Planning and Detailed Scheduling Business Background SAP S/4HANA You use Production Planning and Detailed Scheduling (PP/DS) for as a production planner to create finite production plans taking into account resource schedule, component availability and order dates/ times in detail. Typically, you use PP/DS to plan your critical products and bottleneck resources. Key Features The following table explains the key features available: Use Key Feature Create proposals for in-house production You can create proposals for both internal production and external procure­ or external procurement to cover product ment with dates and times across multiple plants to cover material shortages. requirements You can create production plans either with automated production planning run using heuristics or with manual intervention. Optimize plan and sequence the resource plan taking resource availability and capacity into ac­ You can adopt a finite schedule and the order dates/times count. With a plan, hard constraints modelled in the system are taken finite into consideration. You can automate the optimization of the plan according to certain criteria, such as setup times and setup costs, to achieve a plan or to improve the finite planning situation. You can sequence planned orders on production lines for individual lines or for a complete line network. Your order sequence takes required dates and restric­ tions into account with minimal possible violations. You can enable continuous production, particularly in process industry by ad­ justing the duration of production without changing the order quantity. Create proposal based on simulative plan­ You can create proposals for both internal production and external procure­ ning parameters ment with dates and time based on simulative planning parameters, without affecting operative planning. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 289

290 Key Feature Use You can use planning with characteristics where receipts are consumed with Planning with Characteristics requirements, based on matching characteristic values. You can plan or pre-as­ attributes, with the purpose specific sign resource capacities for products with of using the capacities more rationally. for planned You can enter and monitor production Execute and monitor production at de­ confirmation (backflushing) reporting points orders with defined reporting points. fined 3.4.1.2 Demand-Driven Replenishment Business Background Demand-Driven Replenishment enables you to plan and manage supply chains based on customer demand, rather than through traditional MRP procedures. You can create the basis for a reliable material by defining flow at strategically important points along a supply chain and by regularly adjusting the buffers’ buffers limits. Key Features The following table explains the key features available: Key Feature Use Analyze and classify products You can analyze and classify your products based on certain criteria to identify products which can act as decoupling points. You can automate the classification classification runs process by scheduling to be executed on a regular basis. Select products relevant to Demand- define which products are relevant to Demand-Driven Replenishment You can Driven Replenishment using classification information. Generate buffer level proposals You can generate buffer (stock) level proposals for your products that are rele­ vant to demand-driven replenishment (DD-relevant products). buffer level proposals by scheduling runs You can automate the generation of to be executed on a regular basis. Manage buffer levels You can manage the buffer levels, and in turn, the safety stock, reorder point, and maximum stock for your products based on the buffer level proposals. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 290 PUBLIC

291 Key Feature Use You can monitor the planning status of using their planning priority. Monitor replenishment planning buffers You can monitor the execution status of buffers Monitor replenishment execution using their on-hand stock sta­ tus. 3.4.2 Manufacturing for Production Engineering and Operations 3.4.2.1 Manufacturing Engineering and Process Planning 3.4.2.1.1 Production BOM Management Business Background During the product engineering phase, you design and develop products. You design new products or product lines to take advantage of current process technology and to improve quality and reliability, for example. One of the most important outcomes of this is the list of components required to produce the product - this list is the bill of material. Key Features The following table explains the key features available: SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 291

292 Key Feature Use You determine the correct area of responsibility for new or changed EBOMs so Manage new or changed EBOM versions that they can be grouped in the right manufacturing change record for initiat­ ing the manufacturing handover process. different states and do the following: You can search for EBOMs in ● If available, determine the relevant change records and planning scope for the EBOMs and assign them to a change record. ● Navigate to the change record for further processing for the EBOMs that are already assigned to a change record. Create a change record and assign the planning scope and EBOM to it. ● Create a planning scope for a new EBOM and link the EBOM to it. ● ● Automatically propose similar EBOMs and assign all of them to the same change record. You can search for new or changed MBOMs and assign them to a change re­ Manage new or changed MBOM versions cord. You can also search for MBOMs that are already assigned to a change re­ cord and navigate to the change record for further processing. You can create a change record and assign the MBOMs to it. Analyze change impact The change impact analysis helps you to find different manufacturing-related objects that may be affected by a change to an existing object such as an engi­ neering BOM, manufacturing BOM, or routing. After the related objects are de­ termined, you can take some quick action such as putting the production order on hold. You can also add the object to the change record to take action on them later in the context of the change cycle. floor routing, you can When working with a unitized bill of material and shop see the effectivity impacted by the change. Compare BOM changes You can compare two material based bills of material for the purpose of report­ ing the BOM change in part content. BOM change usually compares two revi­ sions of the EBOM for a part but may also be used to compare EBOMs for two different parts. It allows you to: ● Compare two versions of EBOM for the net change analysis. ● Identify whether an object has been impacted by change. ● Identify the components which have been impacted by change. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 292 PUBLIC

293 Key Feature Use You use product unitization to create super BOMs and super routings. You can Maintain product unitization effectivity for the attributes of the BOM and routing. Then when specify the producing a particular unit, the super BOM and related super routing are fil- tered to retrieve the information relevant for that unit which is assigned to the production order. Product unitization is built on the parameter function to make use of effectivity certain semantic patterns and rules to ensure: ● Accurate incorporation of EBOMs into MBOMs. ● A meaningful match between the BOM components and the routing oper­ ation activities. 3.4.2.1.2 Shop Floor Routing Management Business Background During the production engineering phase, you design and continuously improve manufacturing equipment, production facilities, and manufacturing procedures. This process enables you to model a detailed execution plan including required quality steps. Key Features The following table explains the key features available: Key Feature Use Manage version-controlled routings You can create multiple routing versions for a routing group and counter. Each routing version has its own release status. Released routing versions can be used in production execution and can therefore no longer be changed. If you want to make changes to a routing version, you have to create a new routing version. You can copy a released version and make the necessary changes. The new routing version cannot be used in production execution while in process. This procedure guarantees consistency in production execution. You define the validity period for the routing version in the production version. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 293

294 Key Feature Use Model a detailed production process A shop floor routing provides a very detailed description of the operations and operation activities that have to be carried out and the order in which they have to be carried out to produce a material. In addition, the routing contains details about the work centers at which the operations and operation activities are processed and the MBOM components that are required. You can model the process in detail in the various routing workspaces. Model a detailed production process with The parameter effectivity information is derived from the assigned MBOM and passed on to the routing header where it cannot be changed. The operations unitized parameter effectivity inherit the effectivity information from the routing header and the operation effectivity activities inherit the information from the operations. You can change the for operations and operation activities, as necessary. effectivity You can assign a manufacturing change record to the routing. Depending on Assign a change record to the routing defined in the version profile, it may only be possible to release a the settings routing if a change record assignment exists. You can create operation activities in the structure workspace. You use these Create operation activities operation activities to model the steps to be performed in production in greater detail. You assign each operation activity a status and action schema (SAS) that defines the statuses and possible transitions that are allowed for the operation activity. You can use any-order groups to define sets of operation activities that can be completed in any sequence or simultaneous groups which allow the parallel processing of operation activities in production execu­ tion. Set a change alert count You can enter a change alert count for each operation activity when maintain­ ing the routing version. A change alert notifies the operator in production about engineering changes and highlights such changes. By setting a counter in the operation activity, you can stipulate that the receipt of this change infor­ mation has to be acknowledged once or several times. This ensures that engi­ neering changes are visible and correctly implemented. You can create detailed work instructions for operation activities that are made Create work instructions for operation ac­ tivities (also using standard texts) available to the production operator on the shop floor before starting the activ­ ity. You can create or reuse standard texts and images. That is, you can reference or copy existing standard texts or images into work instructions thus reducing the involved in creating and maintaining work instructions. effort Assign components to operation activities You can assign components to the operation activities for which they are re­ quired. You can also split MBOM item quantities and assign partial quantities to different operation activities of an operation. The assignment to operations is then done implicitly by the system and this information is displayed accord­ ingly. The assignment at operation activity level is relevant for execution. Define assembly sequence for compo­ You can determine the order in which components are to be assembled in pro­ nents duction execution. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 294 PUBLIC

295 Key Feature Use You can assign inspection characteristics to operation activities. These inspec­ Assign inspection characteristics to oper­ ation activities tion characteristics are used to describe the inspection criteria. Assign PRTs and documents to operation You can assign PRTs and documents to operation activities. This information is activities floor before starting the made available to the production operator on the shop activity. to operation activi­ Assign qualifications qualifications to operation activities. You can use qualifications You can assign ties qualified production operators perform critical or difficult to ensure that only operation activities. HR are assigned to the production operators qualifications qualification fulfilled when and the system checks that the requirements are the operator starts the operation activity. buyoff cycles to operation activities Assign You can assign cycles to operation activities. A buyoff is a confirmation buyoff that an operation activity was performed as defined in the routing. When maintaining the operation activity, you can create a new buyoff sequence or you can assign a predefined buyoff cycle template. A buyoff cycle template all the required experts who have to check the quality of an operation defines buyoff cycle template has been assigned to an operation activity, activity. If a buyoffs have this activity cannot be completed in production execution until all been fulfilled. Manage action handlers for operation ac­ You can display available action handlers and their parameters and parameter tivities values. You can also add further action handlers specifically for a particular routing. Reuse routing objects You can copy existing routing objects such as operations or operation activities and reuse them elsewhere. If you have objects that you reuse regularly, you can copy them to your favor­ ites and organize them in folders. You can access your favorites folder in all routings. Maintain production versions The production version determines the production techniques according to which a material is to be manufactured. A material may have several bills of material (MBOMs) and several routings used for its production. You define which MBOM and which routing combination is to be used for which validity period in the production version that you assign to a material in the material master. In addition, the production version controls the validity of the MBOM and routing versions. 3.4.2.1.3 Major Assembly Production SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 295

296 Business Background SAP S/4HANA Manufacturing for production engineering and operations provides features that allow you to build more complex products. Major assembly production allows for several factors that cannot be considered in the standard manufacturing process. Some complex products such as aircraft, power stations, or production facilities require a type of planning. For example, because the assembly process takes a long time or different because the technology is very complex. These factors can lead to engineering changes that might need to be considered even if the assembly process has already started. Key Features The following table explains the key features available: Use Key Feature Use project management to represent You can: your manufacturing processes Use projects or production orders to define your manufacturing process. ● Cost projects at a level to the finished product, for example, by different ● major assembly or groups of major assemblies. Define deadlines as part of a project rather than the production order ● Model complex manufacturing processes You can: using end items, major assemblies, and in­ Define special material types that allow you to distinguish between end ● stallation kits (major assembly produc­ items, major assemblies, and installation kits. tion) Configure ● effectivity to increase the flexibility of the unitized parameter your production. ● Create special installation orders that represent the assembly of groups of components. Create and post inventory for your installation kits, as well as define ● whether created inventory has to be manually checked before posting or whether this process occurs automatically. 3.4.2.2 Extended Manufacturing Operations SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 296

297 3.4.2.2.1 Production Control Business Background This process enables you to manage and regulate the manufacturing process. It is typically performed by the production supervisor who monitors production progress and reacts to issues such as missing components, delays, holds, or quality issues. Key Features The following table explains the key features available: Key Feature Use Monitor production order progress You have up-to-date information regarding the processing status of all orders focusing on exception situations. You can update the production order with the latest version of the bill of mate­ Read production order master data rials and shop floor routing before releasing it. Change dates and quantities for a produc­ You can change basic dates and quantities for a production order. tion order Monitor production operation progress You have up-to-date information regarding the processing status of all opera­ tions focusing on exception situations. You can also navigate to the operation activity view of the operations. In addition you can distribute the work load by assigning production operators to the operation activities. You can trigger the production process by releasing the production order or its Release production orders/operations operations. Put objects on hold and release them You can temporarily block production by placing orders, materials, operations, or work centers on hold. When placing the object on hold, you can specify a again reason code and note. Once the issue has been solved, you can release the hold. You have the tools you need to monitor all objects that are currently on hold as well as holds that have been released. Reprocess materials movements You can view failed material movements to determine why they failed. You can navigate to the material and correct the problem. You can then reprocess the material movement. Monitor and track production You have reports that document how the product was manufactured. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 297

298 3.4.2.2.2 Production Execution Business Background This capability enables you to make all the necessary preparations required for production. It provides support with the actual production process and also enables you to document production progress. It is typically performed by the production operator. Key Features The following table explains the key features available: Key Feature Use You have access to all operations assigned to your work centers. This informa­ Display queue per work center finished. You tion is split into operations that are in progress, not yet started, or can see the progress of the production operations as well as the current issues - whether an operation is on hold, delayed, or has component issues. Based on this information, you can decide which operation you need to work on next. In addition, you also have access to a list of all operation activities to which you have been assigned. Check execution feasibility You can check whether you can start a new operation activity. For example, the predecessor activity must be completed before the current activity can be started or the work center, material, or production order must not be on hold. You can use action handlers to implement additional checks. View detailed work instructions While processing an operation activity, you are provided with detailed work in­ structions. You can use a 3D image that interacts with the component list to identify required parts and where they should be assembled. Acknowledge change alerts You are informed about engineering changes by change alerts. You have to read and acknowledge such changes before you can start the operation activ­ ity. View detailed information You have access to all the information that you need to execute the operation activity before you start work. This information also includes the necessary components, PRTs, or inspection characteristics. The information is main­ tained in the routing and made available when processing an operation activity. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 298 PUBLIC

299 Key Feature Use Process operation activities You can use actions such as start, pause, skip, scrap, or complete to record the processing path through production. The system only provides actions that are allowed for the current status. The actions available for each status are deter­ mined by the status and action schema (SAS) that is assigned to the operation activity in the routing. During production execution, you can: ● Specify a reason code or note for an action. ● Put different objects such as order, material, operation activity, or serial­ ized product on hold. Use labor tracking to allow several operators to work in parallel on the ● same activity. ● Attach any type of attachment to the production record. Record yield and scrap for an activity if You can record the yield and scrap quantities for an operation activity. material is not serialized Record completion for serialized materials You can record the completion of a single material item at an operation activity. Record scrap for serialized materials You can record scrap for a single material item at an operation activity. You can enter a reason code and a note when scrapping if enabled in configuration. Record inspection characteristic values You can enter values for inspection characteristics. The system also provides information on the minimum and maximum values allowed for an inspection characteristic. Record serial numbers and batch num­ You can record the serial or batch number of consumed components. This in­ bers of components formation is used for traceability purposes and is available in reports that mon­ itor and track production. Perform buyoff You can acknowledge that an operation activity has been processed correctly. If a buyoff cycle has been assigned to an operation activity, this activity cannot be completed until all have been fulfilled. buyoffs 3.5 R&D / Engineering 3.5.1 Enterprise Portfolio and Project Management 3.5.1.1 Portfolio Management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 299

300 Business Background Portfolio Management capabilities give high-level visibility over the entire project portfolio, portfolio analytics and resources. Portfolio Management provides a comprehensive and up-to-date view of the entire portfolio of company projects to present the full extent of project risks and opportunities. It allows you to overcome delays that can occur as information is collected from disparate sources. Portfolio Management gathers diverse data into dashboards which act as a starting point for portfolio analysis. Portfolio Management integrates information from existing project management, human resources, and financial systems to provide an overview of the project portfolio and resource availability, and it provides easy drilldown to details. Key Features The following table explains the key features available: Key Feature Use Portfolio and bucket hierarchy manage­ You use a portfolio to map the strategic structure of a company. There could either be one portfolio for the overall company, or different ment reflect- portfolios, ing independently managed areas. One portfolio is a single entity and not re­ lated to other portfolios. The overall structure of a portfolio is reflected in the hierarchy of buckets. This allows you a flexible categorization of portfolios. Portfolio Management sup­ ports multi-level portfolio hierarchies. Buckets represent, for example, product lines, organizational or regional struc­ tures. Once you have set up the bucket hierarchy, you can add items to the buckets, plan the budgets and the resources and do the assignment accord­ ingly. You can also create alternative portfolio hierarchies. Item management You use portfolio items to represent, for example, proposals, projects, con­ cepts (anything that should be analyzed within a portfolio). Portfolio items can have dependencies to other items. You can create versions of a portfolio item. You can create versions of an item or of a portfolio initiative (initiative) to document the status of an item at a cer­ tain point in time (snapshot) or to simulate changes (simulation). Decision points represent gates through which an item passes, for example, from specification to design or from design to implementation. Each decision point can have several configurable status values. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 300 PUBLIC

301 Key Feature Use You use an initiative to manage a set of portfolio items to achieve a specific Initiative management goal of a bucket. For example, a new product initiative represents all phases of discovering, designing, developing, go to market, and maintenance of a single product. Each initiative is assigned to a certain bucket and items can different be assigned to an initiative. It consists of a set of attributes and as well as, for persons responsi­ example, questionnaires or scoring models. You can define roles. You can use the checklists function to create staffing ble for initiatives by and edit checklists and checklist items of initiatives. Checklists help you to de­ fine the deliverables, such as KPIs or documents that are mandatory for a phase approval. You can monitor the status of the deliverables. You can group related portfolio items with a common strategic goal to collec­ Collection management tions. A collection has its own reporting cockpit to enable portfolio managers to monitor the performance of the collection. Portfolio reviews enable you as a portfolio manager to make fact-based deci­ Review management sions. A review can take place when a certain item or initiative has reached a certain decision point, for example. The portfolio items within a review are eval­ uated and compared within scoreboards. You use Financial and capacity planning and capacity planning to store and plan financial and capacity financial data for your project and to maintain actual cost data. You can maintain finan- cial and capacity planning data for a bucket, item, and initiative. You can view financial and capacity data on different levels, for example actual or planned costs, labor cost or material costs, cost for furniture or equipment. You can aggregate and capacity data from between items, initiatives, financial and buckets using rollup. You can integrate data from the Finance area of SAP S/4HANA or from Project Management. define that financial and capacity planning data for an item or an item You can financial and controlling system or project man­ of initiative is retrieved from a financial planning, agement instead of manually entering the data. In the item you can see the actual costs stored in the Finance area of SAP S/4HANA. Scoring and questionnaires You can compare portfolio items or initiatives in a scoring model based on quantitative key performance indicators. This enables decision makers to make educated decisions on portfolio items or initiatives. For the aggregation of data, you can implement different scoring models. The quantitative scores of a scoring model are retrieved either from portfolio item or initiative attrib­ filled by results of questionnaires. Based on questionnaires, you utes or can be can use qualitative criteria to get numerical scores for risk, strategic fit, feasi­ bility, and other types of soft data of portfolio items or initiatives. What-if scenario management You can simulate changes in the budget assignment or capacity assignment and find out what the impact is on the respective items. You can see the result of the simulation in the reporting cockpit, such as the reviewed items. You use what-if scenarios to support your decisions. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 301

302 Key Feature Use You can preview and print the detailed data of items and initiatives. The data Printing of forms the data that is displayed on the printed in the PDF-based print form reflects the PDF-based print form so that the data is configure user interface. You can displayed and printed according to your needs. Managing Documents You can manage your documents in Portfolio Management using a document repository. You can define Authorizations at object level authorizations for portfolios, buckets, items, ini­ object-specific tiatives, reviews, collections and decision points. You can use the following import and export functions to exchange data be­ Export or import of project data tween Portfolio Management and other applications: ● You can import or export a project associated with a portfolio item from or file. to a generic XML You can import or export project data from or to the project system in SAP ● S/4HANA. ● You can import data from Project Management into Portfolio Manage­ ment. ● You can export project data from Portfolio Management to a project man­ different agement system that is installed on a server. For more import/export functions see the Project Management chapter. Recording changes / change document A change document in Portfolio Management provides electronic documenta­ tion of changes made to attributes of objects or entities. Depending on the set­ tings in the data dictionary and Customizing settings, change documents can be generated in the context of new object creation, change or deletion of ob­ jects or entities. If you have activated change documents for an object, the sys­ tem tracks all attribute changes to these objects. Archiving You can archive the data of the following objects: ● Portfolios ● Buckets ● Items ● Collections ● Initiatives ● Reviews 3.5.1.2 Project Management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 302 PUBLIC

303 Business Background Project Management helps you standardize and improve project management execution and reduce associated administrative and system costs, by providing reliable project management functions that can be deployed independently or integrated into your, for example, Human Resources or Financials back-end system. Project Management is ideal for managing phase-based projects. It delivers highly specialized support for product development, IT, or other types of projects. It supports structuring, scheduling, visualization, operative planning, and execution. Key Features The following table explains the key features available: Key Feature Use Project elements You use the following project elements to reflect the projects of your company: Project Definition: ● definition is the project element at the highest A Project hierarchy level of a project. The project contains general data of definition the project and information that is valid for the whole project. ● Phases: A phase is a clearly period in a project. A phase belongs to defined the project definition and and you can further subdivide a phase using checklists and tasks. ● Tasks: In projects, tasks help to record and structure necessary process­ definition ing steps. You can assign tasks, for example, to a project or a phase. ● Checklists and checklist items: Checklist items represent important re­ quirements that have to be met in order to achieve the project goal. off the items they have finished. You can group Project participants check checklist items in a checklist. ● Roles: A role represents a position in a project, for example, the role of consultant in a consulting project. The role describes which type of re­ source is required in a project, that is, which function the resource carries out in the project. The role includes information about the qualifications that the resource should have and when and for how long the resource should be available. Displaying and editing project details You use various apps, dashboards and views (including Gantt chart) to get an overview of your projects, to get a detailed insight into the project details, and to edit your projects. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 303

304 Key Feature Use You can create templates that you can use every time you create a project. This Project templates allows you to better standardize your projects. You can create templates for the following objects: Projects ● Checklists ● ● Documents You can include phases, tasks, and checklist items from project templates or checklist templates in operational projects or other templates along with the lower-level project elements that belong to them. The subtrees are copied when you do this. Scheduling You can use the following functions to schedule your projects: ● For each project type, you can choose whether you want to use bottom-up scheduling or top-down scheduling. You can enter ● dates for the project elements. If you do not enter fixed fixed dates for the project, the system sets the current date as the start date. finish The system calculates the date from the remaining project data dur­ ing scheduling. ● You can enter phase dates that overlap as well as task dates or checklist item dates that are outside the phase dates. The system informs you if the dates overlap each other by displaying messages in the log. The system conflict situations during scheduling, uses messages to inform you of any for example, if task dates are outside the time frame of phases during top- down scheduling. ● You can enter a duration for phases and tasks. ● You can enter fixed dates for the planned start and the planned finish, and can assign a calendar for project definitions, phases, and tasks. For checklist items, you can only enter a date for the planned finish. ● fixed ● You can schedule each project element individually. When the dates are scheduled, the dates of the dependent project elements (lower-level ele­ ments and linked elements) are taken into account and also scheduled. Confirmation You can confirm tasks or checklist items in Project Management. Project versions You can create project versions for operational projects. The following version types are available: ● Snapshots enable you to create a momentary representation of an opera­ tional project so that you can track the status of the project at different times. Snapshots cannot be changed. ● You can create simulations to test, for example, the effects certain changes will have on an operational project. You can save simulations and call them again later on. If the changes produce the desired result, you can reconcile the simulation with another simulation or with the operational project. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 304 PUBLIC

305 Key Feature Use You can monitor the costs and revenues throughout the duration of the project. Accounting integration You can use this function to carry out preliminary costing for the costs and rev­ enues. Once the project has started, you can analyze the costs and compare them to the planning data at any time. You can measure the success at the end of the project. Project accounting different scenarios: offers ● Task-based or role-based: You can enter planned times as either work for for resources. In order to rep­ effort tasks or demand for roles or assigned resent both of these options in costing, you can carry out task-based or role-based costing. ● Account assignment object: Internal order or WBS element ● Manual or automatic: Manual or automatic assignment of the accounting object Multi-project management You can map cross-project relationships. The following inter-project link sce­ narios are available for this purpose: ● Subproject: When you work with subprojects, a task of a project is created different as a separate subproject, for example, because a department or a subcontractor is responsible for the task. To map this relationship, you create an inter-project link between the task of the master project and the project definition of the subproject. ● Mirrored task: If tasks or phases of a project are influenced by another task (see original task) in a different project, the project leader of the de­ pendent project must be informed about changes made to the original task. For this purpose, you can include the original task as a mirrored task in the structure of the existing project. Program: Larger projects are often realized in several different projects ● that belong together. In order to map these complex project structures, you can assign other projects or programs to a project with the project category program Multi-project monitor You can call and compare multiple projects, tasks, or checklist items at the same time. Object links Business objects important to a project can be located in different systems. Since it is important to have an overview of these objects directly in Project defined or activated in Management, you can connect the objects which you Customizing for Project Management to the application as object links. You can create object links to various SAP objects. Managing documents You can manage your documents in Portfolio Management using a document repository. Integration with Portfolio Management You can assign projects to portfolio items. You can also assign phases to deci­ sion points in Portfolio Management at a lower level. This assignment is the ba­ sis for a synchronization between the objects in Project Management and Port­ folio Management. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 305

306 Key Feature Use You can summarize project data in reports and store them as project status re­ Project status reports ports. The reports are created as interactive PDF documents and stored either in Project Management or in a document management system. The system different report templates depending on the project type. provides a number of These can contain kinds of data. different Evaluations Evaluations give you an overview of your project data. When you create an eval­ uation, the system checks whether threshold values have been vio­ predefined lated. You can base your evaluation on the current project data or the last ver­ sion of the data that was saved in the background. You can create evaluations for both operational projects and project versions. Authorizations at object level You can define object-specific authorizations for projects or parts of projects. Export or import of project data You can use the following import and export functions to exchange data be­ tween Project Management and other applications: ● You can import or export project data from or to Microsoft Project. You can import or export a project or version from or to an generic XML ● file. Recording changes / change document Project Management provides you with a means of recording changes that you can activate. If the option for recording changes is active for an object, changes you make to dependent objects are also recorded. For example, for projects, the system not only records changes you make to the project itself, but also re­ cords the changes to dependent objects such as the phases, checklists, appro­ vals, and roles. If, for example, you want to record changes to roles, the record­ ing option must be active for projects. Archiving You can archive project data and documents, which are assigned to projects. 3.5.1.3 Resource Management Business Background Resource Management provides planning tools to support you in planning and optimizing your human resource deployment within a project as well as across different projects. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 306 PUBLIC

307 Key Features The following table explains the key features available: Use Key Feature Project resource planning You can use a planning tool to optimize your human resource deployment in a and assigning them to efficiently project. It focuses on using your employees and availability. It offers a role based projects based on demand, qualifications, resources on staff resource management, and a project or line manager can the project. The project lead uses roles to depict which type of resource is required in a first project, that is, which function the employee (resource) carries out in the project. A role represents a position in a project, for example, the role of con­ sultant in a consulting project. The role includes information about the qualifi- cations the resource should have and when and for how long the resource should be available. The project lead can assign tasks to the roles or resources straight away. In the resource search, the system determines suitable resources for each role and task on the basis of their qualifications. The project lead's or customer's pre­ ferred resources can be stored as candidates in the system. In the staffing process, staffing or candidate managers can also determine re­ sources based on their availability. The project lead or resource manager can first reserve their preferred resource or assign the resource straight away. At the same time, the project lead can send e-mails to resources with details of the project, directly from the application. You can plan and optimize your human resource deployment across different Cross project resource planning projects. You as a resource manager get a quick overview of resources and the resource availability across multiple projects and roles. You get also an overview of the project and role staffing, the resource assign­ ment and the staffing across multiple roles, projects, and resources. As a re­ source or manager, you can either maintaining assignment per re­ staffing source in the individual periods or maintaining this data across a certain time range using distribution. 3.5.1.4 Commercial Project Management Business Background This function provides special features that help in the core business process requirements of companies that offer project-based services to their customers. Commercial Project Management covers multiple processes in SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 307

308 an end-to-end scenario spanning the selling, planning, executing, monitoring, and controlling of projects. Companies that sell projects (for example, in the professional services or the engineering, construction, and operations industries) can use these solutions to further professionalize their core business processes and expand beyond back office capabilities. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 308 PUBLIC

309 Key Features The following table explains the key features available: Use Key Feature Project Workspace Project Workspace provides the following features: The commercial project that integrates multiple business objects that are ● used in a real-world project setup. ● different aspects related A project workspace to monitor and manage the to a commercial project. A framework to configure and personalize user-specific alerts and ● notifi- cations. The ability to set up teams and assign roles and responsibilities to mem­ ● bers. ● A billing plan manager to plan and execute billing events such as fixed price and resource-related billing. The ability to report and manage qualitative project risks. ● ● The integration with Project Cost and Revenue Planning to enable project cost planners and controllers to plan and forecast project-related costs and revenues. ● The integration with Project Issue and Change Management to document, estimate, and track issues and changes that occur during project execu­ tion. Embedded Analytics, based on business intelligence (BI) queries, for re­ ● porting on the project cost status, progress, unbilled revenues, receiva­ bles, forecasting, earned value, cost performance index, scheduled per­ formance index and issue and change process. Key project information such as planned, actual, and forecast values are reported per month fol­ lowing the Gregorian calendar. Multiproject Overview ● provides information about all the projects for which a project manager is responsible. With this app, you can display KPIs such as planned and actual costs, planned and actual revenues, estimate at completion (EAC) costs, planned and actual margins, EAC revenues and margins, receivables, and unbilled revenues, for example. You can also use alerts, statuses and general information of the projects, with the ability to edit some features. ● Single-Project Overview provides a quick health check of the project to the project manager. You can view KPIs, statuses, EAC costs, EAC revenues, trends, margins, and alerts, for example. You can also drill down to de­ tailed information in the existing project workspace, for further actionable items. You can navigate to billing and procurement. ● Billing and Receivables Overview brings together project billing due dates, pending invoices, and payment history of one or more projects with ac­ cess to related finance documents, ensuring timely billing and invoicing for the services delivered. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 309

310 Key Feature Use Procurement Overview ● provides a holistic view of the procurement of ma­ terial, services and subcontracts, with a view of expedited shipments, de­ livery and payment schedules, allowing you to coordinate the scheduled workflow of your project. ● displays a list of activities from issues, checklists, change Project Activities requests, and risks, and enables users to track and process assigned ac­ tivities. ● Enabling of Enterprise Search based on the following business objects of Commercial Project Management: commercial projects, financial plans, issues, and change requests. With the use of APIs, you can create commercial projects and bid plans ● based on CRM opportunities. ● Ability to view and control change logs of specific fields in commercial projects, risks, checklists, and contact persons. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 310 PUBLIC

311 Key Feature Use Project Cost and Revenue Planning provides you with the following features: Project Cost and Revenue Planning ● Planning scenarios to support key project planning activities such as re­ source planning, material planning, expense, and third-party planning. Harmonized input data and planning as­ ● commercial-project-specific sumptions through an interactive and iterative process. ● Ability to automate quantity, cost, and revenue forecasts ● Planning functions to support automatic valuation, cost and revenue cal­ culations, revaluations, forecasting, simulations, and data transfer. ● Process integration with key downstream processes such as resource management, procurement, and billing. Distribution key to define ● a curve based on which quantity, cost, and reve­ nue of a planned resource can be distributed across periods. Factors such as type of work or seasonality determine the distribution curves of a re­ source. Simplified integration that allows planning based on SAP Portfolio and ● Project Management structures linked to Project System (PS) projects. Ability to view and control change logs related to specific ● fields of financial plans, on the financial plan screen. ● A typical project lifecycle includes the following phases which are also rel­ evant for project cost and revenue planning: ○ Bid and Proposal Estimation sufficient This phase usually involves planning the project in detail to support the creation of bids by providing a proposal or quotation. High-level financial plans are created for overall quantities and re­ quirements such as labor, materials, and expenses but perhaps not specific with as much detail such as specific sub- resources or with contract quotes. ○ Baseline Cost and Revenue Planning This phase involves planning the project baseline after a bid has been successfully won. Project planners or project managers create de­ tailed plans to arrive at detailed cost and revenue plans, and to facili­ tate subsequent execution activities such as resource management, procurement, and scheduling. ○ Revisions and Supplements Revisions and supplements are typically carried out using a similar process to the original proposal and baseline phases. This allows for revision of financial quotes or execution plans based on the additional or changed work. ○ Forecasting and Estimate to Completion Forecasting is often an iterative activity to determine the progress of the project and determine the potential outcome in terms of cost and final revenue. The method of forecasting depends on the type of busi­ ness (for example, engineering and construction or professional serv­ SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 311

312 Key Feature Use different manual and automated ap­ ices) and the type of project with proaches. Project Monitoring and Control ○ Throughout project execution the project manager and the controller need to monitor the actual project results versus the plan at the ap­ propriate planning levels such as cost, revenue, or margin. All through the planning process and the execution phase it is neces­ sary in applicable scenarios to provide integration with the follow-on execution activities, which could include: ○ Resource planning ○ Purchasing ○ Time and expense worklists Sales orders, billing plans ○ Sales pricing ○ Project Issue and Change Management provides you with the following fea­ Project Issue and Change Management tures: ● Processing of issue and change request activities relevant to different types of business objects ● Integration with the multiple application components in SAPS/4 HANA to allow the possibility to exchange data and post updates ● Cost and revenue planning of changes (if you are integrated with Project Cost and Revenue Planning ● Documentation and processing of project issues and changes using DMS documents, reference URLs, and attachments (such as word processing documents, spreadsheets, drawings) ● Reporting and analytics ● Integration with e-mail functions for notifications ● Collaboration among multiple stakeholders using activity management, which is tracked with statuses Approval process for changes ● ● Ability to control change logging related to specific fields on the change request and issue screens. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 312 PUBLIC

313 3.5.2 Product Lifecycle Management Product Development 3.5.2.1 Embedded Systems Development 3.5.2.1.1 3.5.2.1.1.1 Embedded Software Management Business Background Embedded software is computer software that is embedded in one or multiple products. It provides functions together with various hardware and systems. Embedded software has a specific requirement on the hardware and software that allows it to function accurately. To manage the compatibility information between software and other parts of a product, you can use constraint management. Key Features The following table explains the key features available: Key Feature Use Managing Constraints You can view and maintain the compatibility information of the following: ● Hardware constraint: the compatibility between embedded software and hardware ● Software constraint: the compatibility between embedded software and another software You can also check the software compatibility in a bill of material (BOM), or in a product structure after simulating the explosion of the product structure. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 313

314 3.5.2.1.1.2 Systems Engineering Business Background Systems engineering an interdisciplinary approach to design and manage complex systems in product offers development. The development of an intelligent product during its lifecycle often involves various systems and components that are interconnected to each other. To enable requirement driven development and enhance traceability for requirement, use requirement assignments management. Key Features The following table explains the key features available: Use Key Feature Managing Requirement Assignments You use this feature to assign requirements to business objects involved in product lifecycle management. 3.5.2.1.2 Visual Instance Planner Business Background Visual Instance Planner (VIP) is an application that enriches the engineering structure of the Product Structure Management (PSM). The application is intended to bring 3D data into PSM using variant The configuration. application allows you to create variants based on the 3D data and map the geometric instances onto the variants. Key Features The following table explains the key features available: Key Feature Use Starting a planning session in Visual In­ This feature allows you to start a planning session to create variants and map stance Planner. geometric instances onto the variants directly from PSM. When planning is complete, the plan is saved back to PSM. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 314 PUBLIC

315 Key Feature Use This feature allows you to modify, validate, and save the actions performed on Working with a product structure the product structure. Adding instances to the product structure This feature allows you to assign geometric instances to the product structure. Adding instances automatically to the This feature allows you to assign geometric instances automatically to the product structure product structure. This feature allows you to display, create, or change object dependencies using Maintaining object dependencies configuration on the Web UI. the dependency maintenance tables for variant Navigating to product structure This feature allows you to view the product item and the product item variant if exists in the PSM Web User Interface. 3.5.2.1.3 Visual Asset Planner Business Background Visual Asset Planner is a solution for SAP Enterprise Asset Management (SAP EAM) for restructuring the design structure (derived from the CAD) to match the asset structure. It also creates 3D design data for the asset structure. You can load multiple SAP 3D Visual Enterprise source or manufacturing bill of material (MBOM) with files visual representation generated from SAP 3D Visual Enterprise Manufacturing Planner as source structure. You can also load functional location hierarchy, equipment (spare part), or equipment structure as a target structure. The solution allows you to create a visual link for these technical objects. Key Features The following table explains the key features available: Key Feature Use Starting a planning session in Visual Asset This feature allows you to start a planning session to restructure the 3D design Planner data from CAD to match the asset structure and create viewable for the asset from the SAP S/4HANA system. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 315

316 Key Feature Use Functional location hierarchy planning allows you to restructure the 3D design Working with functional location hierarchy file depicting the functional location hierarchy with the rel­ planning data and generate a . The generated file S/4HANA evant metadata tagging from SAP can be used for maintenance and service purposes. The target for this scenario is a func­ tional location hierarchy and the file that is generated is linked to the top level functional location. Spare parts planning allows you to create a visual spare parts Working with spare parts planning for an equip­ file ment from document structure or material BOM which contains 3D The files. file source for this scenario is an equipment and the generated that is linked to equipment can be used for spare part selection process in Asset Management. This feature allows you to automatically assign visual nodes to functional loca­ Automatically assigning visual nodes to tion or equipment by comparing the metadata identifier between source and functional location or equipment hierar­ chy target structure. Automatic assignment is only possible for planning scenario functional location hierarchy planning. Saving and creating a document info re­ This feature allows you to save the asset planning at any point in time. This generates a VDS file by exporting the visuals from the target panel and the cord file. file metadata from the target structure to be tagged onto the exported This can then be linked to a new document which will be linked to the target func­ tional location as an object link. SAP 3D Visual Enterprise Manufacturing Planner 3.5.2.1.4 Business Background The SAP 3D Visual Enterprise Manufacturing Planner application supports you in creating and maintaining manufacturing structures (manufacturing bill of materials (MBOMs) and routings). The application uses engineering structures (engineering BOMs (EBOMs)) as input through a visually guided planning process. It allows you to visualize an engineering structure in the and maintain MBOMs and routing in the Source Panel Working Panel . You can visualize the final multilevel assemblies in the Target Panel . Key Features The following table explains the key features available: Key Feature Use SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 316 PUBLIC

317 Managing planning scope alternative You can create a new planning scope alternative, change an existing one or delete a planning scope alternative. You can also search and start planning for an existing planning scope alternative based on its attributes Planning BOM and routing for a planning scope alternative You can visualize the engineering BOM (EBOM) and plan manufacturing MBOM (MBOM) as follows: Source Panel to Target ● By moving components from Panel By making a direct copy of the EBOM ● ● By creating your own custom assembly header ● By restructuring the planned MBOM to get the desired MBOM. You can perform the following functions on the manufactur­ Maintaining manufacturing structure and routing ing structure: ● Adding components from EBOM to MBOM Making a direct copy of an assembly (plan as designed) ● Creating a new manufacturing structure ● ● Creating a nonvisual component ● Restructuring assemblies in the planned MBOM ● Managing routing, quality notification, and object de­ pendency ● Exporting and uploading visual work instructions Allocating and deallocating a component from an oper­ ● ation ● Handling a phantom assembly Integrating with project systems ● Simulating and saving changes to a planning scope alterna­ When the manufacturing structure is ready, you can save it back to SAP S/4HANA . Based on the manufacturing struc­ tive ture in the planner, the MBOMs and routing component allo­ cation are updated in SAP S/4HANA . If the target MBOMs are the object dependency is also updated. You configurable, can also validate the manufacturing structure before saving to check for errors using Simulate Save option. Starting the application from Product Structure Manage­ For a planning scope alternative, when the engineering ment Web User Interface structure is a Product Structure Management (PSM) struc­ ture, you can also start planning from the PSM Web User In­ terface. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 317

318 3.5.2.1.5 Access Control Management Business Background Access Control Management allows you to control access to documents. You can grant access to users or user groups using access control contexts. Key Features The following table explains the key features available: Key Feature Use Controlling access to objects You can control access to a set of documents by assigning them to access con­ trol contexts. Context role administration You can grant access authorizations for a user through a context role. Transfer the ownership of objects You can transfer object ownership or assign objects to other contexts. Add users to user groups. With user groups you can manage authorizations in bulk when you use them with context roles. You can display another user's access authorizations for a document and to Display and analyze access authorizations of other users. determine the sources that grant these authorizations. 3.5.2.1.6 Engineering Change Management Business Background Engineering change management can be used to manage various aspects of engineering basic data (for example, bills of materials, materials, and documents) with structured change process. The engineering change management is a crucial component to ensure effective change handling in product development. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 318

319 Key Features The following table explains the key features available: Use Key Feature Change record You use this feature to manage engineering changes. It provides certain busi­ ness values, including: workflow ● driven change management process along with ad-hoc stake­ holder communication with SAP CoPilot. ● single source of change data (for example, scopes, processes, and respon­ sible persons). loading ● workflow templates to accelerate the process setup in pre-defined daily business. ● determining right responsible persons for the process from pre-defined teams to save the efforts of team setup. ● change impact analysis based on versioned engineering bills of materials to determine the related impact in manufacturing. ● extensibility on customer attributes. Engineering cockpit You use this feature to get an overview of engineering changes and engineering different business objects. progress for 3.5.2.2 Recipe Development 3.5.2.2.1 Recipe and Formula Development Business Background You use Recipe Development to describe the manufacturing of products or the execution of a process. Recipes comprise information about the products and components of a process, the process steps to be executed, and the resources required for the production. The recipe types in Recipe Development enable you to create a general description of the requirements or concrete procedural instructions depending on your needs. Making the data of enterprise-wide recipes more concrete allows you derive site- and plant-specific recipes from it. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 319

320 Key features The following features are available: Use Key feature Creating and managing recipes Recipes comprise the information about the production process for a product, as well as the input and output sub­ different stances and packaging used in that process. The recipe types enable you to create a general description of the requirements or concrete procedural instructions depending on your needs. Based on the ingredients used, you can also different calculations, for example to determine a carry out product's nutritional value. filter recipes based on a wide variety You can also search and of search criteria and see which recipes contain certain in­ gredients, materials, and component items (where-used). specifications specification for the sub­ Creating and managing You can use the business object specification cate­ stance, packaging and recipe properties Specifications are data objects that use value assign­ gories. ments for physical and chemical data to define certain prop­ erties. Developing formulas Material and substance data of recipes is managed in formu­ las. Here, you store all the relevant information about the products and components of the process. the recipe production process define a sequence of chemical, physical, or biologi­ Defining You can cal activities for converting, storing, or transporting material or energy. The process contains all the activities that are re­ different quired to produce a product or intermediate prod­ ucts. Creating and managing product labels You use labeling to create and manage label sets. Label sets are based on specifications and recipes, and are used as in­ put for final product label creation and label artwork design. They include lists of data for ingredients, qualitative informa­ tion (such as nutrients), components and packaging. Checking compliance of recipes and specifications You can use compliance check to check whether a product complies with certain constraints. These can be, for exam­ ple, legal constraints or constraints laid down by an enter­ prise. Compliance check can be used for all substances for which a specification or recipe has been created. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 320 PUBLIC

321 Related features Classification 101 ] [page 98 Bills of Materials [page ] Engineering Change Management [page 101 ] Access Control Management 3.5.2.2.2 Business Background Access Control Management allows you to control access to specifications, recipes and documents. You can grant access to users or user groups using access control contexts. Key Features The following table explains the key features available: Key Feature Use Controlling access to objects You can control access to a set of business objects by assigning them to ac­ cess control contexts. Context role administration You can grant access authorizations for a user through a context role. Transfer the ownership of objects You can transfer object ownership or assign objects to other contexts. Add users to user groups. With user groups you can manage authorizations in bulk when you use them with context roles. Display and analyze access authorizations You can display another user's access authorizations for a business object and of other users. to determine the sources that grant these authorizations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 321

322 3.5.2.3 Handover to Manufacturing Handing Over Product Structure for Production 3.5.2.3.1 Business Background a transition of product structures from engineering, such as bills of You can use this business process to define material or product structures to manufacturing. During the handover, a new manufacturing product structure is created from scratch or an already synchronized manufacturing structure is updated based on changes from the engineering product structure. The process is focused to keep the engineering and manufacturing product structure synchronous, while only the manufacturing product structure is updated. Changes from engineering can be handed over to the manufacturing product structure with or without change management. Key Features The following table explains the key features available: Key Feature Use Plan Handover of Product Structure During the planning step the product manager plans to produce a component or product in a specific plant. The planning information is stored within a syn­ chronization unit. Synchronize Product Structure The synchronization process itself duplicates all missing BOM objects (header, item, changes states) from the source structure to the target BOM. If you have already documented an intended deviation with an operation, this is also con­ sidered during the synchronization. The operation leads to adding or subtract­ ing of an item. It also can overwrite an attribute of the target structure header or item. A comparison of the new proposed target BOM and existing target BOM returns conflicts that you can resolve. This step is mainly executed by the system. The proposed target BOM and the conflicts are presented to the user. The sys­ tem supports the user with a predefined set of solutions that can be applied to solve the conflict. The source structure can also be displayed for reference. Each resolution of a conflict may lead to an operation, which is also memorized for later synchroni­ zations. At the end the user can store the new or updated target BOM. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 322

323 3.5.2.3.2 Handing Over Recipe for Production Business Background You can use this business process to do the following: Create and update a manufacturing bill of material (BOM) using a recipe as data source. ● ● Create and update a master recipe using a recipe as data source. The creation or update of BOMs and master recipes typically occurs when the development department has definition and this information has been completed product and process and approved for use in finalized production. This source information from product development is then made available for creating and updating product structures and data for use by manufacturing. GSS automates creating and updating manufacturing BOMs and master recipes, thereby enabling the user to keep development and manufacturing data aligned, reducing effort and improving data accuracy and consistency. Key Features The following table explains the key features available: Use Key Feature Initiate handover of recipe You select the source for which you want to create or update a manufacturing BOM or a master recipe by navigating in the corresponding recipe. The recipe to be used as source must be in a status that is relevant for the hand over proc­ ess. Plan synchronization of recipe to BOM The synchronization of a recipe to a manufacturing BOM starts with a planning step. During this step, you define attributes for your target manufacturing BOM to be created. Once these parameters have been maintained, you can start the synchroniza­ tion. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 323

324 Key Feature Use If you synchronize the recipe for the first Synchronize recipe to bill of material time, the system will display a pro­ posal for a target manufacturing BOM in the reconciliation workbench. There you can review the proposal before you start the creation. If you synchronize a recipe which has been synchronized previously, the sys­ tem creates a new change state for the target BOM based on the recipe data. In the reconciliation workbench, the system shows the proposed target change state and compares this to the existing BOM change state. All changes are in the reconciliation workbench. You can resolve these con­ shown as conflicts flicts manually, before you start creation of the new BOM change state. If any errors occur, the synchronization stops and returns details about the er­ rors. Plan synchronization of recipe to master The synchronization of a recipe to master recipe starts with a planning step. During this step, you attributes for your target master recipe to be cre­ recipe define ated, such as: ● Plant ● Material ● BOM Usage ● Number of alternative BOM ● Change number to be used when updating or creating master recipes (if change number use is required) ● Master recipe group and group number Once these parameters have been maintained, you can start the synchroniza­ tion. If you synchronize the recipe for the Synchronize recipe to master recipe time, the system will display a pro­ first posal for a target master recipe in the reconciliation workbench. There you can review the proposal before you start the creation. If you synchronize a recipe that has been synchronized previously, the system creates a new change state for the target master recipe based on the recipe data. In the reconciliation workbench, the system shows the proposed target change state and compares this to the existing master recipe change state. All conflicts in the reconciliation workbench. You can re­ changes are shown as solve these conflicts manually before you start creation of the new master rec­ ipe change state. If any errors occur, the synchronization stops and returns details about the er­ rors. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 324 PUBLIC

325 3.5.2.4 Advanced Variant Configuration Business Background Variant configuration is for manufacturing complex products. Manufacturers often have to new variants of offer their products, and new variants can be created by modifying existing product designs as they process the order. The important thing is to react quickly to customers' requirements. The customer determines the features of the product. A customer buying a car, for example, can choose the features of the car and combine these features as required. The product configurator improves information exchange between sales, engineering, and production. Variant helps the customer or salesperson configuration to put together specifications for the product and ensure that the product can be produced from these specifications. . SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 325

326 Key features The following features are available: Use Key features model You can use a configurable product to cover all variants of a Manage configuration product in your company. A class is used to hold the characteristics that describe ● configurable product. By linking the class to the con­ a config- figurable product, you allow the product to be ured using the characteristics of the class. ● You can create a super BOM for a configurable product, containing all the components for producing all variants of the product. Often not all combinations of features are possible for ● either technical or marketing reasons. You can use de­ pendencies and constraints to control which combina­ tions are allowed configuration ● for configurable objects you de­ In profiles fine configuring the object. central settings for ● You can use variant conditions to influence the price of a configurable product depending on the characteristic values assigned. ● You can use single-level and multi-level variant configu- ration models. You can use configurable ● routings. You can create a product variant, which is a product that can Manage product variants be kept in stock and that arises from an individual configura- of a configurable product. tion Interactive During configuration, in the sales order for example, the user configuration assigns values to characteristics. Dependencies and con­ straints coming from the configuration model are brought into consideration. Advanced variant configuration is also in­ tegrated into the purchase order. Configuration simulation configuration simulation to check your con­ You can use the figuration configuration simulation, you can model. In the test whether you have created the objects correctly and whether your dependencies work. Low-level configuration Low-level configuration refers to 'background' explosions of configurable objects, like bills of material (BOMs). For exam­ ple, it’s used in material requirements planning (MRP). Here characteristic values from the sales order are automatically used to determine the BOM components. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 326 PUBLIC

327 Key features Use configuration This feature allows you to generate CDS views. You can use Variant data in embedded analytics these CDS views to publish the classification/configuration information and to visualize it with application data. You can use these to model your own CDS view queries, in which var­ iant data can be combined with other objects, configuration such as a sales order. SAP Commerce Cloud integrated with advanced variant con­ Integrating advanced variant configuration with SAP Com­ figuration merce Cloud is now enabled. Copy classic variant configuration models You can copy classic variant configuration models for ad­ vanced variant configuration Related features Classification [page 101 ] 3.5.3 Product Compliance 3.5.3.1 Product Marketability and Chemical Compliance Business Background With the product marketability and chemical compliance solution you manage chemical compliance for your products across your organization. The features of this business solution support you to ensure product marketability and brand protection, and to reduce compliance costs. They enable you to manage regulatory requirements and compliance assessments of your product portfolio. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 327

328 Key Features The following table explains the key features available: Key Feature Use Management of compliance requirements You can manage substance-related compliance requirements based on legisla­ requests. Regula­ corporate-specific tion, industry standards, and customer or tory information and calculations are the basis for the compliance require­ ments that your products need to meet. You can group them by purpose. You can create and use further requirements and purposes. Management of compliance assessment This feature supports you in the compliance assessment process for your processes product portfolio. You can start or request the initial assessment of a product and determine ● the relevant compliance requirements for your product. ● fulfill The system carries out compliance checks thus supporting you to relevant compliance requirements for your products. ● If the compliance results are after a change, the compliance affected checks are reprocessed. ● You can use your compliance assessment results to perform a market as­ sessment for your products. ● You can define substance volume tracking for relevant products, including quantity limits and warning thresholds. Compliance controls embedded in busi­ This feature allows you to embed compliance controls into key business proc­ esses: ness processes Substance volume tracking is embedded into and visible in other business ● processes, such as purchasing, manufacturing and sales. Requests for compliance assessment are automatically created based on ● changes in the product master. ● Compliance checks are integrated into sales quotation and sales order processing as follows: Based on the market assessment, the quotation or the order is blocked. Compliance explorer and monitoring ● You can identify critical results from compliance assessments and explore the compliance results of your products and components in more detail. Additionally, totaled quantities of tracked substances can be monitored, ● including potential or actual critical situations. Management and publishing of compli­ Templates are used to create documents containing compliance information. The documents can be generated as requested and are part of a release proc­ ance documents ess. In addition to using the documents internally, you can make these docu­ ments available to your customers. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 328 PUBLIC

329 3.5.3.2 Dangerous Goods Management This process enables you to manage data which is needed to classify and process dangerous goods in the logistics chain according to dangerous goods regulations. Compliance with regulations of dangerous goods is an important component of product stewardship to ensure safe packaging and transportation of dangerous goods. Business Background Key Features The following table explains the key features available: Key Feature Use Dangerous goods You classify products according to dangerous goods regulations. The classified classification dangerous goods are the basis for the processing of dangerous goods and gen­ eration of documents with dangerous good data in the logistics chain. Dangerous goods processing You manage supplementary data relevant for dangerous goods; this data is then provided together with classification information for document genera­ tion. Within applications in SAP S/4HANA release 1709 Functionality from danger­ Dangerous goods embedded into key business processes ous goods processing, such as compliance checks, is embedded into and visi­ ble in other business processes, such as sales order and delivery. You can do compliance checks, for example, on modes of transport and mixed loading, as well as within routing, resource, and carrier selection management. Output of dangerous goods information You can use dangerous goods information for output on logistics documents. 3.5.3.3 Safety Data Sheet Management and Hazard Label Data Business Background With this business solution you manage and create safety data sheets (SDS) and labels according to chemical regulations and requirements. An SDS is an important component of product stewardship. It is legally required in most countries of the world to ensure safe handling of chemicals and other hazardous products. SDS formats can vary from source to source within a country depending on national requirements. SDSs are a SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 329

330 widely-used system for cataloging information on chemicals, chemical compounds, and chemical mixtures. SDS information may include instructions for the safe use and potential hazards associated with a particular material or product. The SDS should be available for reference in the area where the chemicals are being stored or in use. Label and safety data sheets are important sources of information on hazards, instructions and information on the safe storage, handling, use, and disposal of hazardous substances. This information helps you to minimize risks when using hazardous substances. Key Features The following table explains the key features available: Key Feature Use Data management for safety data sheets and hazard labels ● You can enter the necessary data for the generation of safety data sheets and reuse it for multiple packaged products. ● The system supports you in deriving SDS-relevant infor­ mation from product data and regulatory data. ● You can use standard text blocks to minimize transla­ tion efforts. ● You can release the data for SDS generation. ● You can reuse the SDS-relevant data for hazard labels. Safety data sheet generation using templates ● You can use templates to generate safety data sheets. ● You can release the generated safety data sheet for sub­ sequent processes. ● You can manage revisions of safety data sheets with dedicated version control. ● Safety data sheet publishing You can send safety data sheets to your customers and to relevant authorities, electronically. The automatic process can be integrated into the sales process. Up­ dated versions of safety data sheets can be distributed automatically. ● You can view safety data sheets that provide informa­ tion required in business processes, such as, in different material management. Hazard labels embedded into business processes in SAP S/ Hazard label determination is embedded into several busi­ ness processes within SAP S/4HANA release 1709, such as 4HANA 1709 make-to-stock, make-to-order, shipment, and receipt of pur­ chase order. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 330 PUBLIC

331 3.6 Sales 3.6.1 Commodity Sales Business Background With Commodity Sales you enter, process and manage your sales documents, deliveries and billing documents for commodities of all industries, perform a simple to use formula-based commodity pricing, also for future dates, use the market data management based on derivative contract specifications, enter and allocate price fixations, and perform period-end valuations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 331

332 Key Features The following table explains the key features available: Use Key Feature Specifications Market Data Management Derivative Contract For commodity future prices and commodity forward indexes (provided ● on platforms like PLATTS, REUTERS), uses the market Commodity Sales data management based on derivative contract specifications (DCS). The reflects rules and conditions agreed upon at an exchange, and that DCS specific form the contract basis for trading with a commodity or for a spe­ derivative contract. cific The DCS is applied for the derivative categories Commodity Future , Listed ● , and Commodity Forward Index . The DCS enables the automatic Option determination of maturity key dates and DCS periods, and is applied within the Commodity Pricing Engine (CPE) of sales documents. ● Based on DCS and MIC (market code), price data can be identification defined manually entered for price types and key dates (to identify spe­ cific contracts). MICs are not required for commodity forward indexes. Alternatively, you can upload those data with ● © files. Microsoft Excel Basis Market Data ● Commodity Sales supports also the basis pricing, mainly used by agricul­ tural businesses. The basis is the price between the local cash difference price and the commodity futures price, and reflects characteristics such as freight, storage costs, quality factors, targeted margin, and the local supply and demand situation. ● Basis market data can be manually entered, and can be accessed by the Commodity Pricing Engine (CPE). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 332

333 Key Feature Use With Commodity Pricing Commodity Pricing you can apply complex pricing formulas, rules and conditions in a simple way. The commodity pricing engine uses DCS-based market data and basis prices, is enabled for commodities of all industries. Commodity pricing is applied in sales contracts, sales orders, goods issues, yet), provisional billing (if the pricing is not billing, and for the period- final final end valuation, and comprises the following functions: Setting Up CPE Formulas, Terms and Rules CPE formulas, terms and rules define ● the pricing of a commodity in a sales document. A formula consists at least of one term, and can contain fixed detailed pricing rules such as values, or absolute or percentage sur­ charges. ● The price determination can either be set up as Customizing data (in a Customizing client) or, for regular changes, as master data in the produc­ tive system. If CPE data is applied as master data, only an authorized pricing setup ex­ ● pert can create and edit CPE formulas, terms and rules, which can imme­ diately be used for all new sales transactions. Master data is strongly dif­ ferentiated from Customizing data by a different namespace that is char­ acterized by a prefixed slash. To create formulas as master data, the user can use the document template function in sales documents. ● CPE formulas and reference date routines can be set up application-inde­ pendent (for both, the purchasing and the sales side), which minimizes the maintenance effort.  Recommendation SAP strongly recommends not to change a formula that is already in use of a document. Formula Assembly based on BRFplus ● For an easy and flexible formula determination, and for defaulting CPE data when creating the root sales documents, the commodity pricing en­ gine (CPE) uses the Business Rules Framework plus . ● For the determination of CPE formulas, terms and rules, template applica­ tions with standard decision tables (access sequences) are provided. If a template meets your needs, you can copy it, and use it as it is. Formula Evaluation ● The formula evaluation of the CPE is integrated with the sales documents, and controls, how formula/term rates and formula/term values are calcu­ lated. ● For each pricing-relevant process, the formula evaluation is automatically started. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 333

334 Key Feature Use During the formula evaluation, the system uses input data such as docu­ ● ment data (for example, commodity quantity and quality data), conver­ sion and rounding rules, reference data (for example, goods issue date), price quotations, surcharges, currency exchange rates, and factory calen­ dar data. To get price quotations with dates in the future, a CPE quotation forecast ● routine is provided, which applies currently available quotations as fore­ casted market data for future key dates. Price Fixations and Allocations ● For complete or partial pricing-relevant commodity quantities in sales fixation option allows you to replace the floating documents, the price fixed price. Price price (market price for future date) by an agreed fixation options can be and exercised on term level. A price fixation option defined in a sales contract, will also be displayed in the subsequent sales defined order. Recommendation  fixation SAP strongly recommends to exercise price options only in sales orders. ● For sales orders the priced quantity is automatically or manually allocated to the related goods issue quantity. ● You can create and change price fixations for a document before or after subsequent documents have been created. You can change an allocation as long as the delivery has not been invoiced yet. finally You can manually assign price to see the allocated or not allo­ ● fixations, cated items for a selected sales order, or edit an allocation (re-allocation). In an allocation worklist you can get an overview of the documents rele­ ● vant for the allocation, and of the allocation statuses. For the determination of exchange rate forecasts for currency conver­ ● sions, swap rates can be calculated by using the respective exchange rate forecast routine. Configurable Parameters and Formulas (CPF) based on BRFplus You can define complex pricing rules and CPF formulas throughout the Cus­ tomizing without programming just by creating additional pricing-rele­ effort, vant parameters, formulas, and using them in BRF plus functions. The CPF with BRFplus enables, for example, an automatic bonus and penalty calcula­ tion based on delivered qualities and contract conditions. Configurable User Interface for Pricing With this function, you can configure the user interface of pricing data. It ena­ bles you to use and to adapt delivered standard views for pricing data, as well as to create customer-specific views. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 334 PUBLIC

335 Key Feature Use Pricing Elements: Tree , SAP provides standard views on pricing data like Pricing CPE Formulas and Terms . Future/Basis Prices Fixation , Elements: Table , and Agreed Conversion Factors and Quantity Adjustments You can specify agreed conversion factors in a business document. You ● use this function, if you want to use in a condition a conversion factor for a unit-of-measure pair, and the conversion factor deviates from the one in the material master. You can specify one agreed conversion factor per unit-of-measure pair, and assign it to a condition, the current item, or to all items. During pricing, the system searches in this order for agreed conver­ sion factors. ● You can adjust the quantity that a price condition uses in a sales docu­ ment. You use this adjustment function, if the quantity that is relevant for the corresponding condition deviates from the quantity of the sales docu­ specific ment item. For the selected sales document, the system uses a condition type to calculate an adjusted quantity by applying an adjust­ ment factor. Such a condition is called a source condition. Subsequent conditions can use the calculated adjusted quantity or the adjustment fac­ tor of source conditions. You can enter the adjustment factor within a sales document in the re­ spective pricing view of the configurable user interface for pricing. Interfaces for CPE and CPF Data With the CPE interface it is possible to read CPE data directly from database tables and, when processing the respective BAPIs for logistics documents (sales contracts and sales orders), to add, change and delete CPE data. Analogous to this, with the CPF interface it is possible to read CPF data directly from database tables and, when processing logistics documents with the re­ spective BAPIs, to add, change and delete CPF data. Integration of Commodity Pricing with Global and Trade Management (GTM) ● For the pricing of document items of GTM documents you can use CPE and CPF conditions, including quantity adjustment conditions. Adjusted quantities can be consumed by CPE conditions. ● Pricing and Payment Events (PPE) are selectable Within the CPE, GTM from the Reference Date Routines . ● Note that, for using these features, business function ISR_GLT_CMMINTEG must have been activated. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 335

336 Key Feature Use Commodity Sales Commodity Sales is based on standard sales transactions and functions, and Processing Transactions and Documents supports the creation and processing of sales orders, sales contracts, deliver­ differential and final billing documents. ies, as well as provisional, differential final billing can be used for provisional and final and The provisional, commodity price calculation rules, taking into account provisional or final mar­ ket prices, quantities, and qualities, and herewith avoid complex cancellations or rebilling procedures. This feature is supported by Commodity Pricing , and enables the automatic creation of multiple billing documents until the creation of the billing document. final For deliveries of commodities with goods issues, where the commodity price is Period-End Valuation (for example, due to market price changes), and a final invoice was not floating posted yet on or before the valuation key date, the period-end valuation is used to calculate the accrual amount from the difference between an anticipated fi- nal invoice amount and the posted amount. For the period-end valuation, Commodity Sales provides several transactions such as to create and post accrual documents, to generate worklists, to verify valuation results, and to perform completeness checks. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 336 PUBLIC

337 Key Feature Use Commodity Risk Analytics comprises , Mark-to- Commodity Risk Analytics with CDS Views Commodity Position Reporting Profit , and for logistics documents and Market Reporting and Loss Reporting material stock. Commodity Risk Analytics supports a snapshot-based and (in most cases) a figures at reporting time. real-time reporting, calculating risk-relevant key reflect The provided standard queries current day, end-of-day and day-over- day positions and values. You can use these queries by any tool that supports CDS views, such as . Analysis for Microsoft Excel allows you to extend the provided queries in order to Commodity Risk Analytics append your individual free characteristics. Commodity Risk Analytics only considers business transactions, Note, that which has not been realized (not invoiced or not billed) yet. Commodity Position Reporting Commodity Position Reporting enables you to analyze the price risk quantities of commodity positions resulting from logistics transactions and material stock. Mark-to-Market Reporting The calculates and shows you the undiscounted Mark-to-Market Reporting MtM values for unrealized logistics documents and material stock, as well as the MtM changes between two points of time. and Loss Reporting Profit Profit and Loss Reporting enhances the Mark-to-Market Reporting and is The aimed to explain the root causes for changes in MtM values within a set period. MtM values can vary due to, for example, changes of market quotations, FX rates, as well as pricing data and/or commodity quantities in logistics modified documents and of material stock. The P/L attribution shows how much each event and market price movement has attributed to the MtM delta values for a certain period. 3.6.2 Incentive and Commission Management Business Background You can reproduce sales structures and set up flexible incentive systems. You use standard agreements as the basis for creating individual agreements and for settling commission cases. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 337

338 Key Features Key Feature Use You use this feature to design a consistent remuneration Compensation planning specific sales plan, break down your company's strategy to targets, and to cascade plan changes. You can easily build new organizations into its sales composition and integrate compensation for the sale of newly designed products. You use this feature to align internal and external sales tar­ Compensation operations gets with a company's overall strategy and to automate sales force compensation for meeting those targets. 3.6.3 Subscription Billing and Revenue Management Subscription Billing and Revenue Management monetizes digital business models. It is tailored towards the requirements of corporates across all industries and lines of business with high volumes of customers, subscriptions, and pay-per-use transactions. It provides flexible billing processes, enables multi-sided business models, and manages resulting revenues and expenses with high automation and throughput. Key business and process capabilities include the following: ● Subscription business models with recurring- and one-time charges Rating and billing of millions of usage transactions converged from multiple transactional platforms ● ● Complex, volume-based discounts and surcharges ● Revenue sharing and partner settlement 3.6.3.1 Convergent Invoicing Business Background Convergent Invoicing merges information from several billing streams as well as individually rated events. It enables service providers to consolidate charges into a single invoice and give a complete view of the customer. Providers can accommodate partnerships with third parties and ramp up new services by clearly delineating which party is responsible for any given charge. They can also manage sophisticated rules for invoice-level discounting. By greatly simplifying complex billing processes, providers can give customers a single, consolidated invoice, while delivering better, more personalized services. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 338

339 Key Features The following table explains the key features available: Use Key Feature Receive, manage, and rate consumption In cases where the price of individual consumption events depends, for exam­ information ple, on the overall consumption during a billing cycle, Convergent Invoicing pro­ vides the option of storing consumption items as unrated events until they can be rated. In this case consumption information, received from a technical sys­ tem, such as a mediation system, is stored and can be displayed and moni­ tored to later trigger rating. Rated consumption information received from (external) rating systems is stored in the form of billable items depending on their status, and subse­ quently billed. Convergent Invoicing comprises a billing and an invoicing component. Billing manages billable items and groups and aggregates them based on business rules into billing documents, which you process further in invoicing through to the creation of the invoice to the customer. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 339

340 Key Feature Use Bill usage of services, prepare data for in­ During bill calculation, you enter priced transactions from a rating system and voice creation and trigger posting in Ac­ additional data from other components as billable items to create structured counting bill content. Billable items can represent event detail records, call detail re­ charges, and other one-off cords, billing detail records, recurring charges, charges or credits to be billed. define: You can use a billing plan to ● Dates and amounts for generating individual billable items ● Periods and amounts for generating recurring charges Complex discount calculations can be applied to entire business hierarchies using master agreements, as well as to individual contracts. The discount cal­ culation is based on discount rules which can consider all details contained in the billing data. From the invoicing data, Convergent Invoicing can generate print documents which you can forward to connected printing systems. During invoicing, Convergent Invoicing creates invoices and updates these di­ rectly in Contract Accounts Receivable and Payable. offers Convergent Invoicing flexibility in posting revenues, depending on the relevant accounting principle (for example, IFRS). You can transfer pre-aggregated invoicing data from one or more billing sys­ tems (SAP internal or external) into the invoicing process. For example, you can integrate invoicing data from Sales and Distribution into the invoicing proc­ ess. The invoicing data received from the source applications can be combined to create one convergent invoice for the customer. In Contract Accounts Receivable and Payable you can add information to invoi­ ces and update them. This additional information can include open receivables from previous invoices, information about received payments, or additional charges, as for example, late payment charges or interest on overdue items. To apply changed prices or conditions, Convergent Invoicing provides rerating of consumption items for the complete inventory of stored consumption items of a contract for a given period. During rerating, billable items are reversed, and the consumption items are rated based on the changed prices and conditions. If you want to define business hierarchies, Convergent Invoicing supports you with the definition of master agreements. Using master agreements, you can group your business hierarchy members for invoicing (layout, recipient, payer, additional invoice statements) and complex discounting rules for each define member. For example, you can define which services are reduced in price and which members of the hierarchy profit from the reduction. When a member of the hierarchy, which is eligible for a master agreement, closes a contract the existing master agreement is referenced and the terms negotiated within the master agreement automatically apply to this member. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 340 PUBLIC

341 Key Feature Use clarification During the processing of invoicing documents and during invoice creation, sit­ Exception handling using cases uations can arise that require you to stop automatic processing and continue with manual postprocessing in dialog. Convergent Invoicing supports you with several correction processes, for ex­ ample, for correcting events that have been rated using an incorrect price. In this case, you can rerate all consumption events. If the system used incorrect consumption or billing data, you can change, enhance, or replace the data which is then subsequently processed in the standard billing and invoicing processes. You can also create a credit memo or debit memo in case an incor­ rect amount has been invoiced. 3.6.3.2 Receivables Management and Payment Handling Business Background Receivables Management and Payment Handling receives and manages a large number of postings, for example created by billing processes, and uploades these postings to the general ledger. All commonly used payment methods for incoming and outgoing payments in your enterprise are processed. Receivables Management and Payment Handling enables billing professionals to assign individual clearing strategies, automate payment reconciliation, and generate reports aligned with accounting principles. Processing payments in a highly automated environment enables the billing team to reduce days sales outstanding and processing costs. The software has been tailored towards the requirements of corporates across all industries and lines of business with high volumes of customers, subscriptions, and pay-per-use transactions. The processes provided with Receivables Management and Payment Handling are highly flexible to allow for a maximum of automation as well as mechanisms to ensure outstanding system performance and scalability. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 341

342 Key Features The following table explains the key features available: Use Key Feature Postings are always saved in document format. The document is a statement Posting of documents to enter business transactions for each business transaction. Postings are usually generated automatically by the corresponding business processes or by invoicing. Additional options for automatic data transfer are available. Documents can also be posted manually. When a document is posted, accounts are determined automatically for G/L Accounting. All receivables, payables, revenue and expense accounts are auto­ matically determined based on account assignment details in the line items. Receivables Management and Payment Handling provides standard accounts Payment and Receivables processing receivable and accounts payable functions, which you use to manage and monitor the receivables due from your customers. classified The various business processes for payments provided can be as fol­ lows: Automatic payment by your company ● This processing can be performed for all outgoing and incoming payments if the customer has granted your company the corresponding authoriza­ tion. ● Process incoming payments using lots The customer makes payments through the bank or post office. ● Cash desk and cash journal The customer makes payments directly at your company An account may contain open debit and credit items. If they balance to zero or differences that are within the tolerance limits defined, these if there are small amounts can be cleared automatically or manually. If a customer is unable to honour their financial commitments, you can make a deferral or installment plan agreement for one or more receivables. General Ledger Integration Each individual business transaction, that is, each posting and each document for a given customer, is stored in order to ensure itemized In view verification. of the large document volumes, sales figures are not updated consecutively in the general ledger during posting. Instead, documents are periodically trans­ ferred to the general ledger. All standard closing activities, as for example, foreign currency valuation, re­ ceivables adjustment and revenue deferral are supported. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 342 PUBLIC

343 3.6.3.3 Credit and Collections Management Business Background Credit and Collections Management provides reliable, comprehensive credit scoring of new and existing customers based on historical customer data integrated with external credit rating agencies. It fully automates routine tasks in the collections process for mass volumes of customers, such as the calculation of interest payments. Billing personnel can change and continuously optimize collections strategies by using Champion/ Challenger analysis as well as in-house teams and external collections agencies. A complete picture of the credit and collection history of new and existing customers enables providers to reduce days sales outstanding and the risk of nonpayment, while retaining loyal customers. Key Features The following table explains the key features available: Use Key Feature Customer segmentation based on risk You can put your customers into segments with regard to their credit risk, con­ trol and continually monitor sales and service processes, and respond immedi­ classes and payment behavior ately when exceptional situations arise. The segmentation takes place in Credit Management, whereby external credit information, such as D and Experian, and internal credit information, such as the length of the business relationship and the payment behavior, are considered. The external and internal credit in­ formation from the different systems are saved in the master data of the busi­ ness partner. This risk-based segmentation has an influence on the collection process. Determination and execution of collection You can evaluate the open receivables of your customers (due or not yet due) as regular intervals using different activities parameters, such as age and amount of the receivables, and collection history and risk class of the customer. Using busi­ ness logic defined in the system settings, the system derives the relevant col­ lection activities for each customer, such as sending reminders, creating work items for the collection specialist, and the submission of receivables to exter­ nal collection agencies or to third-party applications for legal dunning proce­ dures. Collection specialists have a detailed overview of their customers and access to all the necessary tools and functions for the required measures. Heads of department can track the progress of Collections Management at all times and, if necessary, take action. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 343

344 3.7 Sourcing and Procurement Central Procurement 3.7.1 With Central Procurement, you can integrate your SAP S/4HANA system with some other enterprise resource planning systems in your system landscape (that is, SAP S/4HANA, SAP S/4HANA Cloud, or SAP ERP) to offer centralized procurement processes over your entire system landscape. SAP S/4HANA acts as a hub system and the enterprise resource planning systems act as connected systems in this integration scenario. 3.7.1.1 Central Requisitioning Business Background unified shopping experience where they The Central Requisitioning scenario facilitates employees to have a can create self-service requisitions in an SAP S/4HANA system (which acts as a hub system). You can create items for materials or services extracted from external catalogs and from an integrated cross-content search based on SAP S/4HANA. Additionally, you can create free-text items if none of the materials in the connected system or the ones extracted into the hub system matches your requirements. This scenario also enables you to confirm the ordered goods or services in the hub system. Key Features The following table explains the key features available: Use Key Feature Creating purchase requisitions Employees can create purchase requisitions in the SAP S/4HANA system (act­ ing as a hub system). Employees can create purchase requisition items for free-text materials, for the materials that were extracted from the connected systems into the hub system, or for lean services. Approving purchase requisitions Approvers can use the flexible workflow to approve purchase requisitions. The approval process can be either the automatic, one-step or multi-step approval. Shopping on behalf of other users Employees can also shop on behalf of other users, for example a team assis­ tant can procure an item on behalf of the manager. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 344 PUBLIC

345 Key Feature Use A purchaser can edit a purchase requisition that was replicated from the hub Editing purchase requisitions system in the connected system. Replicating purchase requisitions to the The approved purchase requisitions are replicated to the connected systems. connected systems Creating purchase orders automatically The purchase orders are created automatically in the connected systems from the replicated purchase requisitions. the receipt of goods Employees can confirm the received goods in the SAP S/4HANA system (hub Confirming confirmations system). As a result, are posted to the connected systems. If goods are of poor quality or damaged, for example, employees can create a Creating a return delivery return delivery in the SAP S/4HANA system (hub system) for the confirmed goods. 3.7.1.2 Central Purchase Contracts Business Background In an integrated procurement scenario, you can create central purchase contracts. These are global, long-term agreements between organizations and suppliers regarding the supply of materials or the performance of services within a certain period as per terms and conditions. Central purchase contracts enable predefined different locations to take advantage of the negotiated terms purchasers from various parts of a company in and conditions. Central purchase contracts are created in the SAP S/4HANA system (which acts as a hub system) and distributed to the connected systems, such as SAP ERP, SAP S/4HANA Cloud, or SAP S/4HANA. Key Features The following table explains the key features available: Key Feature Use Managing central purchase contracts Purchasers can create, change, and display central purchase contracts. They can create central purchase contracts of type value contract, quantity con­ tract, and so on. When creating a central purchase contract, purchasers can create central purchase contract items for free-text materials, for the materials that were extracted from the connected systems into the hub system, or for lean services. Additionally, they can, for example, define distributions, create conditions, and enter delivery and payment terms. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 345

346 Key Feature Use workflow-based approval flexible workflow to approve central purchase contracts. Approvers can use the Using The approval process can be automatic, one-step, or multi-step approval. After a central purchase contract is approved, it is distributed to the connected Distributing central purchase contracts to the connected systems systems based on the distribution details maintained by the purchaser when creating the central purchase contract. Because of distribution, outline agree­ ments, such as contracts or scheduling agreements can be created in the con­ nected systems. Configuration experts can import release orders into the hub system from the Importing release orders into the hub sys­ tem connected systems. As a result, purchasers get an overview of the release or­ ders issued against each distributed contract item in the connected systems. The release information is available only for the distribution lines that result in the creation of contracts in the connected systems. Analyzing central purchase contracts Strategic buyers can display central purchase contracts and analyze their con­ sumption. Consumption can be analyzed, for example, by supplier or con­ nected purchasing organization. Monitoring central purchase contracts Purchasers can monitor central purchase contract items, for example, they can display the items and distribution lines with the highest consumption. 3.7.1.3 Central Purchasing Business Background The Central Purchasing scenario provides a single point of access to display and manage purchasing documents centrally. The purchasing documents include purchase requisitions and purchase orders. These documents can be the ones that are created in the SAP S/4HANA system (which acts as a hub system) or the ones that have been extracted from the connected systems. SAP S/4HANA, SAP S/4HANA Cloud, or SAP ERP act as connected systems. Central Purchasing provides the flexibility of connecting multiple systems across an organization and carrying out procurement processes centrally. Key Features The following table explains the key features available: Key Feature Use Importing purchasing documents into the experts can import purchasing documents into the hub system Configuration hub system from the connected systems. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 346 PUBLIC

347 Key Feature Use Purchasers can display and manage purchasing documents centrally. Working with purchasing documents Purchasers can assign sources of supply to the purchase requisitions centrally, Assigning sources of supply to purchase specific purchase requisition. requisitions centrally for example by navigating into the Processing purchase requisitions centrally Purchasers can process purchase requisitions centrally. This option enables the purchasers to block or unblock the automatic creation of purchase orders in the connected systems. Displaying purchasing documents Purchasers can display purchasing documents based on the attributes main­ tained for users. Purchasers can navigate directly to the connected systems to edit the pur­ Editing purchasing documents chasing documents. Creating purchase orders from purchase Purchasers can create purchase orders from purchase requisitions in the con­ requisitions nected systems. Creating purchase orders centrally Purchasers can navigate directly to the connected systems to create purchase orders. Using the workflow-based approval Approvers can use the flexible workflow to approve centrally managed pur­ chase orders. The approval process can be either an automatic, a one-step or a multi-step approval. 3.7.2 Guided Buying Integration with Central Procurement Business Background The integration of the guided buying capabilities of SAP Ariba with SAP S/4HANA central procurement offers you SAP Ariba's guidance for requisitioners, combined with the advantages of a scenario where your professional purchasers can either operate centrally in SAP S/4HANA (acting as a hub system) or decentrally in the connected systems. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 347

348 Key Features The following table explains the key features available: Use Key Feature Requests that employees create in SAP Ariba are validated against the respec­ Self-service requisitioning using guided buying tive connected system before they are replicated to SAP S/4HANA (hub sys­ tem) and then forwarded to the connected system. SAP S/ Depending on your requirements, you can choose to perform the approval step Approval either in SAP Ariba or in either in SAP Ariba, using the guided buying capabilities, or in SAP S/4HANA 4HANA that acts as a hub system. Transparency of follow-on documents In their requests, your employees can see the document numbers of the fol­ low-on documents that were created in the hub system and in the connected systems. 3.7.3 Operational Procurement 3.7.3.1 Requisitioning with Guided Buying Integration Business Background SAP S/4HANA with the guided buying capabilities of SAP Ariba enables you to combine the The integration of guidance for requisitioners provided by guided buying with the proven procurement processes provided by SAP S/4HANA . Key Features The following table explains the key features available: Key Feature Use Self-service requisitioning using guided Requests that your employees create in SAP Ariba are replicated to SAP S/ , where corresponding purchase requisitions are created and follow-on 4HANA buying processes are carried out. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 348 PUBLIC

349 Key Feature Use Transparency of follow-on documents In the requests, your employees can see the document numbers of the follow- on documents that were created in SAP S/4HANA . 3.7.3.2 Commodity Procurement Business Background With Commodity Procurement you enter, process and manage your purchasing contracts, purchase orders, goods receipts and invoices for commodities of all industries, perform a simple to use formula-based commodity pricing, also for future dates, use the market data management based on derivative contract specifications, enter and allocate price fixations, and perform period-end valuations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 349

350 Key Features The following table explains the available key features: Use Key Feature Specifications Market Data Management Derivative Contract For commodity future prices and commodity forward indexes (provided ● on platforms like PLATTS, REUTERS), uses the Commodity Procurement market data management based on derivative contract specifications reflects rules and conditions agreed upon at an exchange, (DCS). The DCS and that form the contract basis for trading with a commodity or specific for a derivative contract. specific The DCS is applied for the derivative categories Commodity Future , ● Listed Option , and Commodity Forward Index . The DCS enables the automatic determination of maturity key dates and DCS periods, and is applied within the Commodity Pricing Engine (CPE) of purchasing documents. ● Based on DCS and MIC (market code), price data can be identification defined manually entered for price types and key dates (to identify spe­ contracts). MICs are not required for commodity forward indexes. cific ● © files. Alternatively, you can upload those data with Microsoft Excel Basis Market Data ● Commodity Procurement also supports basis pricing, mainly used by agri­ cultural businesses. The basis is the price between the local difference cash price and the commodity futures price, and reflects characteristics such as freight, storage costs, quality factors, targeted margin, and the lo­ cal supply and demand situation. ● Basis market data can be manually entered, and can be accessed by the Commodity Pricing Engine (CPE). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 350

351 Key Feature Use With Commodity Pricing you can apply complex pricing formulas, rules and Commodity Pricing conditions in a simmple way. The commodity pricing engine uses DCS-based market data and basis prices, and is enabled for commodities of all industries. Commodity pricing is applied in purchase orders, goods receipts, provisional yet), final invoices, the period-end valuation, final invoices (if the pricing is not and comprises the following functions: Setting Up CPE Formulas, Terms and Rules ● CPE formulas, terms and rules define the pricing of a commodity in a pur­ chasing document. A formula consists at least of one term, and can con­ fixed tain detailed pricing rules such as values, or absolute or percentage surcharges. ● The price determination can either be set up as Customizing data (in a Customizing client) or, for regular changes, as master data in the produc­ tive system. If CPE data is applied as master data, only an authorized pricing setup ex­ ● pert can create and edit CPE formulas, terms and rules, which can imme­ diately be used for all new purchasing transactions. Master data is strongly differentiated from Customizing data by a different namespace characterized by a prefixed slash. To create formulas as master data, the user can use the document template function in purchasing documents. ● CPE formulas and reference date routines can be set up application-inde­ pendent (for both, the purchasing and the sales side), which minimizes the maintenance effort.  Recommendation SAP strongly recommends not to change a formula that is already in use of a document. Formula Assembly based on BRF+ ● For an easy and flexible formula determination, and for defaulting CPE data when creating the root purchasing documents, the commodity pric­ ing engine (CPE) uses the Business Rules Framework plus (BRF+) . ● For the determination of CPE formulas, terms and rules, template applica­ tions with standard decision tables (access sequences) are provided. If a template meets your needs, you can copy it, and use it as it is. Formula Evaluation ● The formula evaluation of the CPE is integrated with the purchasing docu­ ments, and controls, how formula/term rates and formula/term values are calculated. ● For each pricing-relevant process, the formula evaluation is automatically started. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 351

352 Key Feature Use During the formula evaluation, the system uses input data such as docu­ ● ment data (for example, commodity quantity and quality data), conver­ sion and rounding rules, reference data (for example, goods issue date), price quotations, surcharges, currency exchange rates, and factory calen­ dar data. To get price quotations with dates in the future, a CPE quotation forecast ● routine is provided, which applies currently available quotations as fore­ casted market data for future key dates. ● For the determination of exchange rate forecasts for currency conver­ sions, swap rates can be calculated by using the respective exchange rate forecast routine. Price Fixations and Allocations ● For complete or partial pricing-relevant commodity quantities in purchas­ fixation option allows you to replace the floating ing documents, the price fixed price (market price for future date) by an agreed fixation price. Price defined options can be and exercised on term level. Note, that the exercises of price fixation options are not supported for document conditions in purchasing contracts. ● For purchase orders the priced quantity is automatically or manually allo­ cated to the related goods receipts quantity. ● You can create and change price fixations for a document before or after subsequent documents have been created. You can change an allocation as long the goods receipt has not been finally invoiced yet. ● You can manually assign price to see the allocated or not allo­ fixations, cated items for a selected purchase order, or edit an allocation (re-alloca­ tion). In an allocation worklist you can get an overview of the documents rele­ ● vant for the allocation, and of the allocation statuses. Configurable Parameters and Formulas (CPF) based on BRFplus define You can complex pricing rules and CPF formulas throughout the Cus­ tomizing without programming effort, just by creating additional pricing-rele­ vant parameters, formulas, and using them in BRFplus functions. The CPF with BRFplus enables, for example, an automatic bonus and penalty calculation based on delivered qualities and contract conditions. Configurable User Interface for Pricing With this function, you can the user interface of pricing data. It ena­ configure bles you to use and to adapt standard views for pricing data, and to create cus­ tomer-specific views. SAP provides standard views on pricing data such as Pricing Elements: Tree , Pricing Elements: Table , CPE Formulas and Terms , and Future/Basis Prices Fixation . Agreed Conversion Factors and Quantity Adjustments SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 352 PUBLIC

353 Key Feature Use You can specify agreed conversion factors in a business document. You ● use this function, if you want to use in a condition a conversion factor for a unit-of-measure pair, and the conversion factor deviates from the one in the material master. You can specify one agreed conversion factor per unit-of-measure pair, and assign it to a condition, the current item, or to all items. During pricing, the system searches in this order for agreed conver­ sion factors. You can adjust the quantity that a price condition uses in a purchasing ● document. You use this adjustment function, if the quantity that is rele­ vant for the corresponding condition deviates from the quantity of the pur­ chasing document item. For the selected purchasing document, the sys­ specific tem uses a condition type to calculate an adjusted quantity by ap­ plying an adjustment factor. Such a condition is called a source condition. Subsequent conditions can use the calculated adjusted quantity or the adjustment factor of source conditions. You can enter the adjustment factor within a purchasing document in the configurable user interface for pricing. respective pricing view of the Interfaces for CPE and CPF Data With the CPE interface it is possible to read CPE data directly from database tables and, when processing the respective BAPIs for logistics documents (purchasing contracts and purchase orders), to add, change and delete CPE data. Analogous to this, with the CPF interface it is possible to read CPF data directly from database tables and, when processing logistics documents with the re­ spective BAPIs, to add, change and delete CPF data. Integration of Commodity Pricing with Global and Trade Management (GTM) ● For the pricing of document items of GTM documents you can use CPE and CPF conditions, including quantity adjustment conditions. Adjusted quantities can be consumed by CPE conditions. ● Within the CPE, GTM Pricing and Payment Events (PPE) are selectable from the . Reference Date Routines ● Note that, for using these features, business function ISR_GLT_CMMINTEG must have been activated. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 353

354 Key Feature Use Commodity Procurement Processing Purchasing Transactions and is based on standard purchasing transactions and Documents functions, and supports the creation and processing of purchasing contracts (with time-independent conditions), purchase orders, goods receipts, as well as provisional, and final invoices. differential differential The provisional, final invoicing can be used for provisional and and final commodity price calculation rules, considering provisional or final market prices, quantities, and qualities, and herewith avoid complex cancellations or rebilling procedures. This feature is supported by Commodity Pricing , and ena­ bles the automatic creation of multiple invoice documents until the creation of the invoice. final Period-End Valuation For commodity quantities with goods receipts, where the commodity price is floating (for example, due to market price changes), and a final invoice was not posted yet on or before the valuation key date, the period-end valuation is used to calculate the accrual amount from the difference between an anticipated fi- nal invoice amount and the posted amount. For the period-end valuation, Commodity Procurement provides several trans­ actions such as to create and post accrual documents, to generate worklists, to verify valuation results, and to perform completeness checks. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 354 PUBLIC

355 Key Feature Use Commodity Risk Analytics comprises , Mark-to- Commodity Risk Analytics with CDS Views Commodity Position Reporting Profit , and for logistics documents and Market Reporting and Loss Reporting material stock. Commodity Risk Analytics supports a snapshot-based and (in most cases) a figures at reporting time. real-time reporting, calculating risk-relevant key reflect The provided standard queries current day, end-of-day and day-over- day positions and values. You can use these queries by any tool that supports CDS views, such as Analysis for Microsoft Excel. allows you to extend the provided queries in order to Commodity Risk Analytics append your individual free characteristics. Commodity Risk Analytics Note, that only considers business transactions which has not been realized (not invoiced or not billed) yet. Commodity Position Reporting Commodity Position Reporting enables you to analyze the price risk quantities of commodity positions resulting from logistics transactions and material stock. Mark-to-Market Reporting Mark-to-Market Reporting The calculates and shows you the undiscounted MtM values for unrealized logistics documents and material stock, as well as the MtM changes between two points of time. Profit and Loss Reporting The and Loss Reporting enhances the Mark-to-Market Reporting and is Profit aimed to explain the root causes for changes in MtM values within a set period. MtM values can vary due to, for example, changes of market quotations, FX rates, as well as modified pricing data and/or commodity quantities in logistics documents and of material stock. The P/L attribution shows how much each event and market price movement has attributed to the MtM delta values for a certain period. Risk Distribution from Documents and Material Stock For reporting purposes, risk distribution plans in purchasing and sales con­ tracts, and schedule lines in purchase and sales orders serve to determine risk- relevant quantities. Risks-relevant quantities can be derived from material stock, too. 3.7.4 Invoice Management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 355

356 3.7.4.1 Invoice Collaboration (SAP Fieldglass) Business Background SAP Fieldglass provides a cloud-based solution for managing contingent workforce and service procurement. currently supports an integration scenario for invoice handling with SAP Fieldglass that is SAP S/4HANA enabled by the exchange of cXML messages. Key Features The following table explains the key features available: Use Key Feature Receiving invoices Invoices created in SAP Fieldglass are automatically posted in SAP S/4HANA . Sending status updates for invoices Once an invoice in SAP S/4HANA is paid, the status is automatically transfer­ red to SAP Fieldglass. Supply Chain 3.8 3.8.1 Advanced Inventory, Warehousing, and Transportation 3.8.1.1 Extended Warehouse Management Business Background Extended warehouse management provides tools for managing and processing material movements flexibly, to optimize more complex warehouse processes. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 356 PUBLIC

357 Key Features The following table explains the key features available: Use Key Feature You can optimize the management of product quantities in different stock cat­ Inventory Management Optimization egories, for example, by using slotting functions to assign the best bin type for a product that is to be put away, based on product characteristics. During slotting, extended warehouse management automatically determines a storage concept for a product, based on underlying putaway storage parame­ ters on the basis of master data. These parameters describe the following: The storage section in which the product is to be stored ● ● The properties that the storage bin is to have ● The putaway strategy that is to be used Inbound Process Optimization You can optimize the process of receiving products and putting them away in the warehouse, for example, by planning several inbound deliveries that are ar­ riving in the same transport. You use transportation units or vehicles to group the deliveries, and perform the warehouse activities for all of the inbound deliveries in the transportation unit or vehicle at the same time. Outbound Process Optimization You can optimize the process of picking products and sending them out of the warehouse, for example, by combining or splitting items from the outbound warehouse requests in waves. You can combine or split items into waves, on the basis of criteria such as ac­ tivity area, route, or product. You can set up wave templates that use the same wave attributes for ware­ house request items that fulfil the stated conditions of the template. Extended warehouse management can create waves automatically based on wave templates and data in the warehouse request. You can set extended warehouse management up to automatically release and re-release waves SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 357

358 Key Feature Use You can run and control automated warehouse equipment, as follows: Material Flow Control ● Communicate with programmable logic controllers (PLCs) via telegrams to trigger movements and receive status updates Subdivide warehouse tasks into smaller tasks and send the tasks to the ● PLC in step-by-step fashion ● Use an enhanced putaway strategy and stock removal strategy that con­ siders physics and limitations Define capacity limits for communication points, conveyor segments, or ● resources, using pallet conveyor logic Track, evaluate and ● the process of the material flow system influence ● flow system and the Monitor the communication between the material programmable logic ● Call up logs for exceptions using the alert monitor and link these excep­ tions with follow-on actions The material flow system includes the following features: ● Automatic identification of HUs that are being scanned on the automatic storage retrieval facility and where scanner information is being sent to EWM via a telegram Automatic diversion of HUs that cannot be stored because of incorrect ● unidentified HUs contours, excessive weight, or ● Fully automatic putaway of HUs in the storage bin using any number of in­ terim steps Malfunctions reported by the controls taken into account ● ● Reduction in empty traveling paths for stacker cranes through interleaving ● Goods to man picking principle Yard Management The yard is where you maintain vehicles and transportation units that arrive or depart from your warehouse. You can use yard management to move transportation units from one yard bin to another inside a yard. Possible types of yard movement are as follows: ● The transportation unit arrives at the checkpoint and is moved to a park­ ing space or to the door. ● You move a transportation unit from a parking space to the door, or from the door to a parking space. ● You move a transportation unit in the yard from one parking space to an­ other, or from one door to another. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 358 PUBLIC

359 Key Feature Use You can plan labor times and resources in your warehouse, by classifying, Labor Management measuring, planning, and simulating the activities in your warehouse. You can compare and evaluate the performance of your warehouse employees based on engineered labor standards. You evaluate performance on an individ­ ual level or based on teams or shifts. After the work has been performed, you can compare the planned and actual times, and trigger incentives such as bonus payments using the HR system. You can use short-term operational planning match the workload with the number of employees in the warehouse. You can import or maintain time and attendance data in extended warehouse management. Value Added Services You can perform and document value-added services in the warehouse, such as assembling products, packing products, labeling, or kitting. You can perform value-added services in the inbound and outbound delivery processes. Kitting You can create kits in kit to order or kit to stock processes. The following rules apply to the kit to order process: ● A kit is always delivered in full to a customer. ● The kit header and the kit components are always scheduled for the same date. ● All components of a kit staged in one warehouse. ● The kit header and kit component have a quantity ratio – defined by the kit structure –to each other. This quantity ratio is recalculated as soon as there are changes at kit header level or at kit component level. In the kit to stock process, the following applies: ● Kit to stock can be started by the system from a production order, or man­ ually in EWM. ● You can perform reverse kitting to split up a kit back into its components. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 359

360 Key Feature Use You can create and confirm Cross-Docking tasks to transport products or handling units from goods receipt to goods issue without putaway occurring in between. Using fulfil urgent sales orders, or to reduce processing cross-docking enables you to and storage costs. You can perform cross-docking in the following ways: ● Opportunistic cross-docking Extended warehouse management can determine the cross-docking rele­ vance of the products after they have physically arrived in the warehouse Merchandise distribution ● Extended warehouse management receives inbound and outbound deliv­ ery documents from the system which contain the merchandise distribu­ tion process methods and the purchase order item. For the inbound deliv­ ery, extended warehouse management first considers all outbound deliv­ eries that have the same reference number. In addition, extended ware­ house management uses the merchandise distribution process to deter­ mine the warehouse process type, and to perform the merchandise distri­ bution cross-docking according to Customizing. Warehouse Billing Warehouse billing allows you to perform the following activities with a con­ nected SAP Transportation Management (SAP TM) system: ● Record the quantity of warehouse services used for services agreed upon in an agreement in the connected SAP TM system. ● Send this quantity information back to the connected SAP TM system for charge calculation and settlement based on the charges you have agreed to in the agreement. Warehouse billing allows you to perform the following activities with an embed­ ded Transportation Management (TM): ● Record and send quantity information to embedded TM for self-billing or charge calculation and settlement purposes Cartonization Planning You can use cartonization planning to improve the creation of shipping han­ dling units (HUs) based on information from product master data and out­ bound delivery orders, such as quantities, volume, and weight. Cartonization planning results in the creation of planned shipping handling units (PSHUs) that you can use as templates for creating shipping HUs during picking or packing. You can create PSHUs manually or automatically in cartonization planning. You can create nested PSHUs for cartonization planning of deliveries where HUs are packed into larger HUs. You can plan pallets based on attributes such as weight and volume to mini­ mize the number of pallets needed in your outbound deliveries. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 360 PUBLIC

361 Key Feature Use You can plan vehicle arrivals in your warehouses efficiently, SAP Dock Appointment Scheduling and collaborate with the parties involved in an appointment. Planning for the Warehouse ● Planning of vehicle arrivals at the warehouse, and loading and unloading of efficient running of the ware­ the vehicles, is important for managing the house, and for balancing the workload across the working day. You can use SAP Dock Appointment Scheduling to schedule loading appointments for loading and unloading vehicles and to get an overview of the workload of a loading point for each day. ● Planning for the Carrier For a carrier, planning is important to reduce the amount of time when the vehicles are not available for use, for example, if they are waiting to be un­ loaded. Carriers with access to the system can plan loading appointments for their own vehicles directly in the system, and update details of their load­ ing appointments. Shipping and Receiving You can use shipping and receiving to manage the following aspects of your warehouse: ● Usage of vehicle and transportation units (TUs) for managing the trans­ ports to or from your warehouse ● Loading and unloading, including arriving at and departing from doors Yard management ● You can use the shipping cockpit to perform the following activities: ● Plan TUs for a given day You can plan the TUs and assign warehouse management outbound deliv­ eries to them. ● Perform and monitor outbound deliveries using TUs With the shipping cockpit, you can monitor the status of deliveries as­ signed to a TU and trigger related actions for the TU or the deliveries. Transit Warehousing You can use transit warehousing when you are receiving or shipping cargo as part of a longer transportation chain. The cargo is not destined for your ware­ house and you do not unpack or put it away in your warehouse as stock. In­ stead, you receive cargo and store it until it is required for transportation to the next stop in the transportation chain. The transportation of the cargo is planned in a connected SAP Transportation Management (SAP TM) system, and the plan is transferred to extended ware­ house management. The warehouse processes are performed in extended warehouse management and the results are sent back to SAP TM. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 361

362 Key Feature Use Integration with Transportation Manage­ You can integrate extended warehouse management and Transportation Man­ ment agement (TM). This allows you to do the following: ● Plan your inbound and outbound transports from TM ● Receive the transportation plan from TM ● Plan and execute deliveries according to the transportation plan Communicate check-in and check-out information from extended ware­ ● house management to TM ● Communicate accurate weight, volume, and number of HUs in outbound deliveries 3.8.1.2 Advanced Transportation Management Business Background Advanced Transportation Management (TM) in SAP S/4HANA supports the entire transportation chain. You can manage the transportation demands by planning, optimizing, tendering, subcontracting, and settlement of freight processes. Also, you can book carriers in accordance with the requirements of international trade and hazardous goods. TM supports the following end-to-end processes: Domestic and international transportation ● ● Inbound and outbound freight management based on sales orders, purchase orders, deliveries, stock transfers, and returns ● Embedded analytics and key performance indicators for real-time performance visibility Key Features Main key features are for example: ● Order-based transportation planning with subsequent creation of deliveries based on the transportation plan Consolidation of inbound and outbound transportation demand in one freight order or freight booking ● ● Automatic planning (optimization) ● Enhanced functionality for air and ocean freight management SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 362

363 The following table explains the key features available: Key Feature Use You can create and use central master data such as business partners and Master data and transportation network products for transportation-related processes. In addition, you can use trans­ portation-specific data to set up your transportation network, for example, lo­ cations, transportation lanes, and default routes. Agreement management You can use agreements in TM. An agreement is a contract between business partners that details their commitment to conduct business with each other in an agreed manner. It includes contractual data, such as the following: Organizational unit, for example, the purchasing organization ● Involved parties, for example, the ordering party or carrier ● Terms of payment ● ● Validity dates Agreement management is integrated with charge management in TM. TM cal­ culates transportation charges based on the master data stored in calculation sheets, rate tables, and scales that are part of the agreement. Strategic freight management To support your freight agreement negotiations, you can use strategic freight procurement. It helps you to negotiate rates with carriers to transport cargo between specific locations (trade lanes) and agree on a contract (agreement) with the carriers. TM provides the tools that you need to request rate quota­ tions, evaluate responses, and award the transportation business to carriers. Charge management You can use charge management to set up the master data that the system uses to calculate transportation charges. You can calculate the charges for transporting goods between locations based on the rates you maintain in a rate table. The system uses master data, such as agreements, calculation sheets, and rate tables, when calculating transportation charges. Forwarding order management You can use forwarding order management to create, edit, and confirm for­ warding orders from your ordering parties. You can also already specify the route and have the transportation charges calculated here. The orders then form the basis for transportation planning. In addition to creating the forwarding order, you can also enter the data as a forwarding quotation and send it to the ordering party. You can then create a forwarding order based on the forwarding quotation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 363

364 Key Feature Use In the integrated logistics process within SAP S/4HANA, the following applies: Logistics integration ● TM uses sales orders, purchase orders, returns, stock transfers, and in­ bound or outbound deliveries to create freight units. Logistics integration allows you to continuously react to changes of origi­ ● nal documents that occur in the system. ● In order-based planning, TM creates the deliveries based on the transpor­ tation plan taking into account dates, times, and quantities etc. For more information about logistics integration in a side-by-side scenario with Integration below. another SAP S/4HANA or SAP ERP system, see section Freight order management In freight order management, you can create and edit freight orders and freight bookings. These documents contain information required for transportation planning and execution, such as source and destination locations, dates or times, product information, and resources used. You can create freight orders directly or in transportation planning. For example, you can assign freight units to the freight orders and have the system calculate the transportation charges. You can perform carrier selection, assign the freight orders directly to a carrier as a suborder, or perform tendering. You can use this process to send out freight requests for quotation (freight Tendering RFQs) to one or more carriers according to a tendering plan. You can use a freight RFQ tendering process to send out one or more freight RFQs. You can send the freight RFQs manually, or enable the system to send them out auto­ matically. You can also use a direct tendering process to send a road freight or­ der (road FO) directly to a specified carrier without creating a freight RFQ. Car­ riers can confirm or reject the road FOs. Unlike the freight RFQ process, the system generally awards a carrier if he or she does not reject the road FO within a given time limit. Direct tendering can be created and started manually by the user or automati­ cally by the system. Furthermore, you can use freight bookings to book freight space in advance, for example, with a shipping company. You can then perform the execution on these documents. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 364 PUBLIC

365 Key Feature Use In planning, freight units are created on the basis of logistics business docu­ Planning ments. Then, capacities can be assigned to these freight units. Furthermore, various constraints can be taken into account, for example, requested delivery dates. Finally, freight orders are the result of planning. A number of and settings are available that you can use to perform profiles transportation planning. You can use them to group planning-relevant settings, for example, capacities and planning costs. You can perform planning either manually or automatically. You have, for exam­ ple, the following options: ● Manual Planning You can manually assign freight units to capacities such as vehicle resour­ ces. The system automatically creates freight documents (that is, freight orders or freight bookings) depending on the settings that you have con­ figured in Customizing. Within interactive planning you can use up-to-date technology to provide an intuitive visual or graphical user interface. For example, Gantt charts, map-based planning, and 3D load planning are available. ● VSR Optimization Here the system uses advanced planning algorithms (optimization). The aim of VSR (Vehicle Scheduling and Routing) optimization is to assign freight units to capacities (for example, vehicle resources) in a cost-effec- tive way while adhering to constraints. Furthermore, the system can deter­ mine the sequence of deliveries as well as transportation dates and times. VSR optimization generates a transportation plan consisting of planned freight orders from the optimization data (freight units and capacities). When doing this, it processes freight orders that are already available from a previous VSR optimization run or manual planning. VSR optimization in­ serts the freight units step-by-step into the transportation plan. Then the system modifies these initial solutions step-by-step, for example, by load­ ing a freight unit on to another capacity or by changing the delivery se­ quence of a freight unit. The optimizer tries to minimize the total costs while adhering to the constraints. At the end of the planning run, VSR opti­ mization returns the best solution found. For example, if the costs defined for not delivering a freight unit are lower than the costs for transporting the freight unit, the freight unit is not delivered. ● Generation of Transportation Proposals The VSR optimizer can generate a list of alternative transportation pro­ posals. Out of this list you can choose one of the proposed alternatives for the subsequent steps. ● Load Consolidation You can use this function to optimize the distribution of freight units to the following resources: trucks, containers, trailers, and railcars. The system then generates the corresponding business documents: freight orders, container units, trailer units, or railcar units. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 365

366 Key Feature Use Carrier Selection ● You can use carrier selection to assign a suitable carrier to your subcon­ tractable business documents (for example, freight orders) either man­ ually or automatically. The aim is to find a carrier with the lowest costs un­ der consideration of constraints. In manual carrier selection, you manually assign the required carrier to your business documents. A separate optimization is available for the au­ tomatic carrier selection. It takes into account the selected optimization options when determining the most cost-effective carrier for all business documents that you have selected. You can create a forwarding settlement document to bill a customer for the Forwarding settlement transportation services you provide to the customer. TM transfers the forward­ ing settlement document to Sales and Distribution (SD) and SD sends the in­ voice to the customer. Freight settlement In freight settlement, a freight order or freight booking provides the basis for the freight settlement document or a credit memo for a freight order. You use this function to trigger the verification of an invoice, which has been received from a supplier or carrier, against a freight settlement document. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 366 PUBLIC

367 Key Feature Use TM is integrated with the following other components in SAP S/4HANA or ex­ Integration ternal products: ● Side-by-side scenario with another SAP S/4HANA system or SAP ERP system: You can integrate orders and deliveries from external source systems such as SAP ERP or another SAP S/4HANA system. The information that fol­ lows on external system integration functionality refers to SAP ERP but applies also to integration with another SAP S/4HANA system. You use integration of SAP ERP orders and deliveries to facilitate transpor­ tation planning and execution in TM based on orders and deliveries that are created in an SAP ERP system. The orders and deliveries are repre­ sented by transportation requirements in TM. The integration allows you to continuously react to changes to orders and deliveries that occur in the SAP ERP system. In particular, integration with SAP ERP enables you to: Collectively plan transportation for all orders, across order types. ○ Perform transportation planning in TM based on SAP ERP orders, ○ prior to delivery creation, thus enabling you to get an earlier forecast of future transportation and resource demands. ○ Perform tendering, subcontracting, and execution in TM based on SAP ERP orders prior to delivery creation. Propose and create deliveries based on dates and quantities accord­ ○ ing to transportation planning results, taking into account transporta­ tion constraints such as resource availability and transportation dura­ tions. ● EWM in SAP S/4HANA and SAP EWM You can integrate TM with Extended Warehouse Management in SAP S/ 4HANA (EWM in SAP S/4HANA) or SAP Extended Warehouse Manage­ ment (SAP EWM). TM supports a direct integration based on deliveries by using web services. The TM planning results are transferred directly to EWM in SAP S/4HANA or SAP EWM. Transportation units are automatically created in the ware­ house. Together with the delivery information, these form the basis for Confirmations warehouse planning and execution. of the execution results (such as loading and quantity discrepancies) are sent directly from EWM in SAP S/4HANA or SAP EWM to TM. Transit warehousing enables you to seamlessly integrate the planned flow of goods in TM and the physical flow of goods in EWM in SAP S/4HANA or SAP EWM over the entire transportation chain. The integration is based on execution documents resulting from forwarding orders. With this process you can store cargo temporarily in transit warehouses or gateways (air freight) or in container freight stations (ocean freight) until it is trans­ ported. ● SAP GTS The integration of TM with SAP Global Trade Services (SAP GTS) enables you to do the following: SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 367

368 Key Feature Use Handle customs processing for TM business documents in SAP ○ Global Trade Services ○ Perform trade compliance checks for TM business documents in SAP Global Trade Services In a side-by-side scenario with another SAP S/4HANA system, TM is inte­ grated with SAP GTS if transactional data and master data that is used therein originate from the same ERP system. ● SAP EM This function enables you to integrate TM with SAP Event Management (SAP EM) and to track and monitor events for business objects in busi­ ness processes. SAP EM visibility processes to monitor transporta­ offers tion execution in connection with TM. The transportation execution visibil­ ity processes enable users in roles such as transportation dispatcher, shipper, or ordering party, to track and monitor planned events or to re­ port an actual event. Tracking and tracing is provided for the following business document types in TM: ○ Freight units ○ Freight orders ○ Freight bookings ○ Transportation units ○ Resources You can use product safety and stewardship (PS&S) services in TM to ensure Dangerous goods the safe transportation of dangerous goods in accordance with legal regula­ tions. This function enables you to collect and combine relevant data across different Analytics operational areas to answer business-related and specific questions. By ana­ lyzing this data, you get important insights and improved transparency, which are crucial for your operational and strategic decision-making. You can use operational reporting for real-time analyses of data from TM. If you use overview pages (OVPs) and the corresponding Core Data Services (CDS), you can access the data in your live system directly. Therefore, you always have real-time data for your evaluations and you can react promptly to meet your operational daily business needs and processes. TM provides several OVPs with multiple KPIs covering areas such as quantities, execution, tendering, business share, and allocations. 3.8.2 Advanced Order Promising SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 368 PUBLIC

369 3.8.2.1 Advanced Available to Promise Business Background Internal sales representatives, order fulfillment specialists require mechanisms fulfillment managers and order execute and monitor availability checks and optimize the distribution of supply. This is particularly configure, to confirm requirements is limited. You can use the important when the availability of materials needed to advanced available-to-promise (aATP) capabilities to confirm on which date and in which quantity a requirement can be fulfilled. Key Features The following features are available: Key Feature Use Product Availability Check You can use this feature to determine on which date and in which quantity a re­ confirmed, quirement can be specified checking rule and the cur­ based on a rent supply situation for a specific material. The availability check takes con­ current requirements of differing types and their respective confirmation situa­ tion into consideration. Product Allocation specific time pe­ You can use this feature to allocate material quantities for a riod and to a combination of characteristic values for sales orders and stock transport orders, against which availability checks can be run. You can monitor the product allocation situation for product allocation objects, allocation periods, characteristic value combinations and order items during a specific time period. Using the displayed data, you can take action to optimize the overall product allocation situation. Backorder Processing You can use this feature to re-prioritize sales orders and stock transport orders and perform automated mass availability checks to ensure that a limited sup­ ply of material is distributed in accordance with a specific strategy. Optionally, your system assigns supply elements to the individual requirements. specific You can monitor the check results and, if necessary, re-run the check to im­ prove the confirmations for the requirements. Release for Delivery You can use this feature to manually re-prioritize due sales orders and stock transport orders to ensure that a limited supply of material is distributed in ac­ cordance with a dedicated strategy and available supply. After re-prioritization, you can trigger subsequent logistics processes. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 369

370 Key Feature Use Confirmation Alternative-Based During sales order creation, you can replace the originally requested location for a requirement with a substitute location. When selecting the substitute lo­ cation, the system takes the current availability situation of all possible substi­ tute locations into consideration. 3.9 Enterprise Technology 3.9.1 Digital Assistance Business Background SAP S/4HANA supports the integration with a digital assistant (currently SAP CoPilot) to allow users to get their work done more efficiently. Key Features When a digital assistant (for example, SAP CoPilot) is integrated and supports the below named features, SAP S/4HANA enables the digital assistant to provide the following key features: Key Feature Use In-Context Chat The integration with the digital assistant enables you to exchange real-time in­ formation with your co-workers including notes, screenshots, and business or application data with the relevant business object context of the user. Quick Create For selected use cases users can create business objects directly using the dig­ ital assistant. 3.9.2 Geographical Enablement Framework Business Background Map-driven user experiences are ubiquitous, and they are enabled through mobile devices with built-in GPS receivers. Whereas consumers are quite satisfied by easily locating places and checking for directions, requirements in asset intensive industries such as Utilities, Oil & Gas, Mining, Public Services, and Transportation/Rail go far beyond simple use cases. Existing GIS (geographic information system) solutions SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 370 PUBLIC

371 that maintain multiple layers of map information, visualization of linear assets, and objects represented by polygons (example: a certain area of land) need to be merged with their related business processes and in SAP solutions. reflected Key Features The SAP Geographical Enablement Framework works as the foundation to extend business data with spatial SAP S/4HANA functions. As a framework that enhances the spatial capabilities inherent in SAP attributes for HANA, it enables organizations to develop geo-spatially enriched business data and make them accessible from within SAP S/4HANA functions, as well as external GIS systems. The framework is being delivered with a standalone Geometry Explorer, Geometry Editor, and a template for the Business Partner business object as an example for spatially enabling other business objects. Please note that you might need a separate license. The following table explains the key features available: Key Feature Use Geometry Explorer The framework provides a standalone web-based Geometry Explorer. It allows the end user to view both business data from SAP S/4HANA functions and en­ gineering data from GIS systems on the same map to obtain better insights. It also allows the end user to access multiple SAP S/4HANA functions directly from the map to improve efficiency. The framework provides a standalone web-based Geometry Editor. It allows Geometry Editor the end user to search, view, and update geometries for any geo-enabled SAP business object. Framework exposes the geometries and attributes of geo-enabled SAP busi­ External Connectivity ness objects as feature classes, to be consumed using standard GIS tools. Framework Development Technology The framework provides APIs for application development; it also provides ge­ ometry-buffering functionality for synchronization with the embedded map user interface, while updating geometry and application data concurrently. 3.9.3 SAP S/4HANA for Legal Content SAP S/4HANA for Legal Content provides a suite of applications designed for the creation and the management of legal content in enterprises that can be integrated into all core business processes and stores all types of documents in a single repository. Legal content is produced because of various business scenarios in a company, such as procurement processes or sales and distribution as well as policies or intercompany agreements. SAP S/4HANA for Legal Content provides a central repository and single source of truth for all legal documents, such as contracts, policies, and non-disclosure agreements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 371

372 3.9.3.1 Legal Content Overview Business Background Legal Content Overview analyzes the most important legal transactions, contexts, and documents that you need to process. The graphical representation of the most critical tasks summarizes key information from the underlying apps that you are working on, so that you can analyze and identify upcoming important dates, reminders, and transactions and take quicker decisions. There are various actionable cards showing vital information ranked as per their expiration, risk or health. Key Features The following table explains the key features available: Use Key Feature Monitoring transactions Monitoring transactions helps you to immediately assess and resolve critical situations for your company. You can, for example, monitor the following aspects: ● Total number of transactions Health status of transactions ● ● Transactions at risk Monitoring contexts Monitoring contexts helps you to provide the required information for a busi­ ness scenario. You can, for example, monitor the following aspects: ● Total number of contexts ● Status of contexts Contexts about to expire ● Monitoring legal documents helps you to optimize the process of creating and Monitoring documents legal documents. finalizing You can, for example, monitor the following aspects: ● Average time taken to create and process legal documents ● Total number of legal documents ● Status of legal documents ● Signed and acceptance status of legal documents ● Status of document stamps Upcoming reminders and dates You can view the upcoming reminders and dates of the legal transactions and plan your tasks accordingly. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 372 PUBLIC

373 Key Feature Use From the monitoring apps, you can navigate to related apps to trigger follow-on Navigating to related apps actions (you can, for example, change the health status of a transaction or change the status of a context about to expire). You can also navigate to the object page of an individual item. You can filter the content of cards by various criteria, such as context, legal Filtering transactions, and main entity. This enables you to make informed decisions and take immediate action. Sorting of objects Objects are sorted according to their status, creation date, or validity dates. For example, contexts that are soon to expire are sorted by their status and valid to date. 3.9.3.2 Managing Categories Business Background Categories classify business objects such as contexts and legal transactions. You can use categories to classify legal content. Legal content is created by or exchanged between legal departments. Based on the categories that are assigned to the legal content business objects, the legal content can be classified. Key Features The following table explains the key features available: Key Feature Use Exporting and Importing category names You can export and import category names to perform a mass translation. Adding descriptions about categories You can add a detailed description about a category, if required. For example, you can provide some background or additional information about the cate­ gory.You can translate category names or add new translated category names by exporting and importing category names. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 373

374 3.9.3.3 Managing Contexts Business Background Contexts form the foundation of a legal transaction and can predefine settings for legal transactions that contexts to cover a business scenario or define support a more standardized processing. You can circumstance, thus laying a foundation for how a legal transaction must be processed and what information must be provided. Key Features The following table explains the key features available: Key Feature Use Restricting access You can restrict accessibility of legal transaction by using access level. You can filter access to the legal transactions through main organization elements like purchase organization, sales organization, and company code. Creating task group for context You can create default task group templates that are mandatory for each legal transaction using a context. language You can predefine the language of a legal transaction. Predefining Predefining governing law You can predefine the law of a region and country, relevant for a contract or any legal content. For example, every contract must abide by the laws of a region and country. You can the governing law in the context to ensure the legal define transactions follow the same governing law. Extensibility fields to the legal document header. You can add custom Defining You can define legal documents that have to be included in the legal transac­ documents tions and mark the required documents. Adding descriptions about contexts You can add a detailed description about the context, if required. For example, you can add some background or additional information about the context. You can archive objects that have reached the end of retention period. Archiving objects 3.9.3.4 Requesting Legal Content Business Background You can submit a request for legal content. You are guided through a process of providing required information for a specific business scenario. Based on this information, the system creates a legal transaction that is then SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 374 PUBLIC

375 used by the responsible teams, for example, Legal or Commercial, Compliance, Procurement to create the legal content and to manage the lifecycle of legal content as part of a business transaction or a business scenario. Key Features The following table explains the key features available: Use Key Feature Predefining language You can predefine the language of a legal transaction. Predefining You can predefine the law of a region and country, relevant for a contract or any governing law legal content. For example, every contract must abide by the laws of a region and country. You can define the governing law while requesting for legal con­ tent. Predefining documents You can predefine legal documents that have to be included in the legal trans­ actions and mark the required documents. You can add attachments to the request for legal content. Uploading attachments Adding descriptions You can add a detailed description about the legal content object, if required. For example, you can provide some background or additional information about the legal content object in this field. 3.9.3.5 Managing Legal Transactions Business Background Legal transactions are created based on a legal content request and is used to manage the legal content through its lifecycle. For this, the legal transaction collects all the information and material that is connected with the legal content: the parties involved in the creation of the legal content internally as well as externally, the deadlines that need to be observed, the tasks that need to be completed, and the documents that need to be generated in the process or are linked to the legal transaction. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 375

376 Key Features The following table explains the key features available: Use Key Feature Sending documents for e-Signature Using the Business Add-Inn's, you can implement the e-Signature integration to send documents for e-Signature. You can restrict accessibility of legal transaction by using access level. You can Restricting access access to the legal transactions through main organization elements like filter purchase organization, sales organization, and company code. workflow Creating and triggering task groups You can create and trigger task templates. language You can define the language of a legal transaction. Defining governing law Defining define the law of a region and country, relevant for a contract or legal You can content. For example, every legal document must abide by the laws of a region define and country. When you a governing law, all the contracts abide by this governing law. You can add custom fields to the legal transaction header. Extensibility You can use additional filtering options to search for specific legal transactions Filtering based on entities, contacts, and categories Defining reminders You can set reminders to send notifications to the recipient on a specific date for a specific matter. You can create and reply to notes added by other users. You can also view re­ Creating and reviewing notes specific note. plies to a You can add a detailed description about the legal transaction, if required. For Adding descriptions about legal transac­ tions example, you can provide some background or additional information about the legal transaction in this field. Setting start of retention period You can set the start of retention period for legal transactions with a specific status, such as ‘terminated’ or ‘expired’. Uploading documents predefined Using the quick upload functionality, you can add attachments to a document placeholder. Receiving notifications You can receive notification when a workflow task for approval is rejected. Archiving objects You can archive objects that have reached the end of retention period. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 376 PUBLIC

377 3.9.3.6 Managing Legal Documents Business Background Documents are instances of legal content that is tailored to a specific transaction or activity in a certain You can download a files. business context. You can use legal documents that were uploaded as static files, create versions of the documents, and manage the document attributes. document to edit, upload Key Features The following table explains the key features available: Use Key Feature Sending documents for e-Signature Using the Business Add-Inn's, you can implement the e-Signature integration to send documents for e-Signature. Restricting access You can restrict accessibility by using access level. Specifying language of legal document You can specify the language of a legal document. You can view the law of a region or country according to which a contract is to Governing law be construed or interpreted. You can add custom fields to the legal document header. Extensibility Creating and reviewing notes You can use this feature to reply to notes added by other users and view other replies to a specific note. Adding descriptions about legal docu­ You can add a detailed description about each legal document, if required. For example, you can provide some background or additional information about ments the legal document in this field. You can archive objects that have reached the end of the retention period. Archiving objects filtering legal document Displaying and You can view a list of legal documents and use the filter bar to either select a objects variant, or to filter the list by using the search or the individual filter fields. Viewing the history of legal documents You can search for a specific change in the document and alter the view set­ tings. files You can download a file that was uploaded to the document object and make Downloading the necessary changes. You can then upload the latest file to the document ob­ ject. Deleting documents You can delete a legal document, if it is not set as a mandatory document in a context. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products PUBLIC 377

378 Key Feature Use Editing Documents You can use the check out and check in option to edit documents. Versioning Documents You can maintain different versions of the documents. This helps you to track the changes made in each version of the document or to identify the latest document. Archive objects You can archive objects that have reached the end of retention period. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products 378 PUBLIC

379 4 SAP S/4HANA specific LoB Products for industries SAP S/4HANA specific industries enhance core functions of SAP S/4HANA Enterprise LoB Products for specific business benefit Management to provide industry for your line of business (LoB). Please note that you might need a separate license. For further information, please contact your SAP Account Executive. 4.1 Agriculture 4.1.1 Agricultural Contract Management Business Background SAP S/4HANA Industry solution for Agricultural Contract Management provides a single source of truth for handling a diverse range of commodities contracts throughout their life-cycles. It supports a comprehensive range of business scenarios, agricultural-specific terms and conditions, market-based pricing and processes to effectively integrate and inventory. finance Key Features The following table explains the key features available: Use Key Feature Third Party Sales End-to-End Process You can use this feature to execute end-to-end third party sales processes from contract creation, goods issue, contract reassignment to incremental settle­ ment and revenue recognition. Third Party Purchase End-to-End Process You can use this feature to execute end-to-end third party purchase processes from contract creation, goods receipt, contract reassignment to incremental settlement and purchase realization. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 379

380 Key Feature Use You can use this feature to define overfill or underfill quantity tolerances for Contract Tolerances that is calculated by comparing the actual delivered quantity to the planned Defining the contract tolerances provides the ability to contracted quantity. price over the delivered quantity separately. Quality Characteristic-based Discounts You can use this feature to leverage the load-based captured qualities, such as moisture, to calculate: and Premiums Quantity adjustments, such as shrinkage due to high moisture content ● ● Discounts and premiums for settlements Flexible Contract Assignment Framework flexibly assign and reassign the loads (deliveries) to You can use this feature to the contracts without the need for cancelling and rebooking the documents, in case of goods movements, for example. Flexible Pricing You can use this feature to flexibly price and reprice the contracts based on the Commodity Pricing Engine (CPE). A price can be assigned to the specific mar­ ket exchange and future periods. The following pricing actions are supported: Set a price ● ● Lift a price ● Roll a price Setting a price in a contract via Commodity Derivative Order Trade Execution (CDOTE) is supported. Title Transfer Scenarios You can use this feature to determine the place of title transfer, either origin or destination, based on the Incoterms location. Load Data Capture The Load Data Capture is a tool that gives the end user a unique interface to capture all required information (weight, quality, vehicle and so on) for incom­ ing and outgoing loads. The required documents, such as deliveries and goods movements, are processed by the transaction in the background without the need for an additional user interaction. Spot Purchase You can use this feature to process the spot purchases in which goods receipts take place without the prior contracts or purchase orders. The background contract creation based on the receipt information is supported. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 380 PUBLIC

381 Key Feature Use You can use this feature to define fulfilled Provisional and Final Settlements the contract terms that have to be status. Prior to the final of the con­ before a settlement is set to the fulfillment tract terms, the status is provisional. For a provisional settlement, only a certain percentage of the overall amount can be considered. For example, 80% of the calculated amount is charged in the provisional settlement and the remaining delta will be charged at the time final settlement. of the For provisional settlements, priced contracts are not required, while market prices can be used prior to the setting of the contract prices. final You can use this feature to defer the realization of the revenues unless certain Revenue Recognition Process fulfilled. requirements, such as title transfer and other contract terms, are You can use this feature to execute end-to-end intercompany processes from Intercompany End-to-End Process contract creation, goods movements, contract reassignment to incremental settlement and revenue recognition. The following title transfer scenarios are supported: ● Origin ● Destination ● In-Transit Intracompany End-to-End Process You can use this feature to execute end-to-end intracompany processes from contract creation, goods movements to settlement. The following title transfer scenarios are supported: Origin ● ● Destination In-Transit ● You can use this feature to manage the third party stocks at your locations as Commingled Stock well as your own stocks at the third party locations by tracking all deliveries in and out of the commingled stocks with the detailed quality information. The deliveries into commingled stock can be assigned to storage agreements from which the associated information about warehouse receipt (negotiable or non- negotiable) can be captured. This feature provides the capabilities, such as: ● Load out including load out matching ● Purchase from the commingled stock ● In-store purchase and sales ● Calculation of necessary storage quantity adjustments ● Split of an inbound commingled load between several counterparties at the time of load data capture and application SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 381

382 Key Feature Use You can use this feature to split one load between multiple different Vendor Split vendors. For example, it is possible to split the load of one truck by assigning a partial quantity to the contract of one vendor, while assigning the remaining quantity to another contract owned by the vendor. different Washouts This feature allows two trading parties who have the same contract terms (such as commodity, quantity and delivery period) to agree to mutually offset and settle the contract without any movement of the goods. Circles This feature enables to settle the contracts of two different counterparties, for example legal entities (such as customer and vendor), financially different without the physical delivery of the goods. You can use this feature to automatically reverse the postings of both sales and Returns purchase transactions. For a reversal of sales transaction, the goods are re­ turned to the own location, while a reversal of purchase transaction will return the goods to the vendor. A return is possible for either full or partial quantity. Position Reporting - Price Type Report The price type report is a period-based report which provides a holistic view over the contractually agreed quantities that are either fully priced, partially priced or unpriced. Position Reporting - Premium Report The premium position report is a period-based report which provides an over­ view of the basis risk without considering the futures risk. Position Reporting - Slate Report The slate report is a period-based report which provides an overview of future price fixation from the logistical contracts as well as from the future deriva­ tives. Mark-to-Market Report (for physical con­ The mark-to-market (MtM) report enables you to value the fixed contract pri­ ces against the latest market prices of a market exchange and a future tracts) defined period to calculate a gain or loss. The MtM report is available in the following versions: Current ● End-of-Day ● ● Day-over-Day Stock Mark-to-Market Report The stock mark-to-market (MtM) report provides the ability to value inventory against the latest market prices to calculate a gain or loss. Profit and Loss Analysis The profit and loss (PnL) analysis enables you to utilize several reports that at­ tribute the overall and loss from physical trading operations to impacting profit factors that are related to the commodity trading business. The following reports are provided: ● Beginning Position ● New Activity SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 382 PUBLIC

383 Key Feature Use The fee framework provides the ability to create fees as master data and map Fee Framework them to the condition types. fee or a per unit of measure (UoM) fee, and can Fees can be created as a flat manually be assigned to one of the following documents or document levels: ● Contract Header and Line Item ● Price Fixation (of a contract line item) Load Data Capture (LDC) Load or Unload Event ● ● Settlement Group Unit ● Sales Order Item or Purchase Order Item ● Nomination Header and Line Item fixation Fees that are assigned to a contract line item, price or LDC are auto­ matically considered for settlement and charged accordingly. flexible BRF+ framework provides the ability to automatically default the The fees and/or fee rates based on the various criteria. Furthermore, fees can be automatically defaulted when a specified event oc­ curs, such as setting a price, lifting a price, or loading/unloading on LDC. Settlement - Lien Management The settlement lien process provides the ability to capture vendor-specific liens as a master data object. When creating a settlement group, the liens serve as a grouping split criteria to ensure that all units of a group have com­ mon liens. Weighted Average Calculation for Physical The weighted average calculation is a process which is automatically triggered for inbound processes via LDC, and calculates the weighted average quality Inventory factor of a given discount premium quality schedule (DPQS) characteristic. This feature also provides tools to monitor, and if needed, to correct the aver­ age calculated by the system. Contract snapshots provide the ability to configure the attributes that drive the Contract Snapshots and Output Manage­ ment relevancy of: ● Creating a new version of a contract snapshot ● Amending a contract  Example A contract amendment form has to be printed and sent to the coun­ terparty, if the value of a certain field was altered. This process also provides the ability to monitor the contract signature status, if a signature was requested or has already been received from the counter­ party. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 383

384 Key Feature Use The back-to-back process allows you to purchase goods from a vendor and di­ Back-to-Back Process - Sales Division rectly sell them to a customer without a physical movement through an owned location. In this case, the physical movement is directly from the vendor to the customer. While in-transit the goods can also be diverted to a customer which is from the customer originally planned. different flow Document Flow Workcenter You can use this feature to view the entire document of an end-to-end process, supported by various selection criteria. It further enables to manually reverse either the application document or settlement, including automatic re­ versal of the follow-on documents from the workcenter. This feature provides the ability to accrue the Fee Accrual impact of pre-defined financial fees prior to invoicing or realization. You can use this feature to perform mass pricing actions to the selected con­ Contract Mass Pricing tracts. The following mass pricing actions are supported: ● Set a price component, such as future or basis ● Lift a price component ● Cancel ● Roll Production Services You can use this feature to correct inventory and alter the quality characteris­ tics. The following production services are provided: Condition and Transfer ● ● Condition in Place Measure Up ● Weigh Up ● ● Material to Material Transfer ● Condition and Transfer with By-product Contract Offers You can use this feature to create contract offers with a target strike price. The APIs for sharing information with external systems are delivered, which also offers into the contracts. A worklist is also being provided to help in converting help in converting offers into the contracts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 384 PUBLIC

385 4.2 Automotive Vehicle processes for Wholesale and Retail 4.2.1 4.2.1.1 Vehicle Sales and Distribution Business Background Vehicle Sales and Distribution allows you to sell and deliver new and used vehicles to your business partners. The vehicles that you offer different models from various vehicle manufacturers. can be based on Key Features The following table explains the key features available: Key Feature Use Vehicle Sales (From the Stock) You use this feature to allocate available vehicles and sell them to your busi­ ness partners. With the vehicle search option, you can search for vehicles that suit your business partner’s desired configuration and properties. The vehicles find can be reserved for processing inquiries, quotations, or sales or­ that you ders. The delivery document is used while shipping vehicles to business part­ ners and to create billing documents for settlement. Trade-in or buy-back of used vehicles can be considered during sales. Vehicle Procurement (To the Stock) You use this feature to create and order vehicles with desired configurations from the vehicle manufacturer, when you plan to have these in stock. The pur­ chase orders that you create are forwarded to the vehicle manufacturer. The vehicles are shipped, received, and posted into stock. The supplier invoice is received and verified for settlement. Vehicle Sales (Based on Order) You use this feature to sell vehicles that are not yet available, to your business partners. The manufacturer produces these vehicles based on the order and the configuration that your business partner requests. Once you receive the ve­ hicle with the requested configuration, you can perform a pre delivery inspec­ tion before distributing it to the business partner. The delivery document cre­ ated is used while shipping vehicles to business partners and to create billing documents for settlement. Trade-in or buy-back of used vehicles can be con­ sidered during sales. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 385

386 4.2.1.2 Vehicle Ordering and Administration Business Background Vehicle Ordering and Administration allows vehicle importers, wholesalers, and distributors to interact with their dealers through a web portal. Key Features The following table explains the key features available: Key Feature Use You use this feature to configure vehicles, create orders for vehicles, and Vehicle Sales find available vehicles that suit the desired configuration and other criteria. Once you submit an order, you can track the order status and progress using the web portal. Processing of Spare Parts You use this feature to order vehicle spare parts, return parts that are no longer needed, and track the order status and progress. Processing of Warranty Claims You use this feature to create and manage warranty claims to vehicles and ve­ hicle parts. You can process the returns of claimed parts. Recalls from vehicle manufacturers can be displayed and can be used for claims processing. 4.3 Banking 4.3.1 SAP Deposits Management for Banking, SAP S/4HANA Edition Business Background SAP Deposits Management for Banking, SAP S/4HANA edition enables you to manage current accounts, fixed- term deposits, and savings. It offers various functions to support the lifecycle of deposit contracts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 386 PUBLIC

387 Key Features The following table explains the key features available: Use Key Feature Management of master data You use this feature to manage deposit contract master data (such as the crea­ tion, changing, and display of deposit contracts). Examples of deposit contract master data include: ● General data such as account number, account currency, and account product ● Financial conditions (such as interest, value dates) ● different roles to the deposit account (such Business partners assigned in as account holder or authorized drawer) Monitoring of funds payable and receiva­ You use this feature to monitor funds payable and receivable between banks ble and their customers. Support of business operations You use this feature to manage various business operations such as account management (the creation of direct debits, product definition, check manage­ ment, and cash concentration, for example). Management of outgoing and incoming You use this feature to manage outgoing payments (such as credit transfer) and incoming payments (such as direct debit). payments Support of accounting processes You use this feature for accounting processes for debits such as the creation of standing orders. 4.3.2 SAP Loans Management for Banking, SAP S/4HANA Edition Business Background SAP Loans Management for Banking, SAP S/4HANA edition enables you to manage both simply structured loans, such as consumer loans, and complex loans, such as mortgage loans. It offers various functions to support the lifecycle of loan contracts. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 387

388 Key Features The following table explains the key features available: Use Key Feature Management of master data You use this feature to manage loan contract master data (such as the crea­ tion, changing, display, and archiving of loan contracts). Examples of loan contract master data include: ● General data such as contract number, contract currency, and commit­ ment capital ● Financial conditions (for interest payments, repayments, or charges, for example) ● different roles to the loan contract (such as Business partners assigned in main borrower or alternative payer) Calculation of cash flows You use this feature to calculate cash flows based on the loan contract master data. Support of business operations You use this feature to manage various business operations such as disburse­ ment, waiver, write-off, borrower change, or payoff. Management of outgoing and incoming You use this feature to manage outgoing payments (such as disbursements) and incoming payments (such as interest payments or repayments). It pro­ payments vides functions to support incoming payment distribution. Support of accounting processes You use this feature for accounting processes for loans such as the creation of debit items. 4.3.3 SAP Collateral Management for Banking, SAP S/ 4HANA Edition Business Background SAP Collateral Management for Banking, SAP S/4HANA edition provides banks with the front- and back-end support they need for collateral handling and risk mitigation. It offers functions to maintain, manage, and monitor the use of collaterals. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 388

389 Key Features The following table explains the key features available: Use Key Feature Central source system for collateral man­ The component provides the benefits of a stand-alone application as well as agement software that integrates with operational SAP transaction systems (loans, de­ posits), customer information management, risk management, document management, and reporting. Process support for centralized collateral The component manages objects and receivables. It provides integrated ob­ ject-management features that can store and value data for various collateral management objects, such as real estate or securities. It also supports the connection with external collateral-object systems. In addition, the component enables you to retrieve and use receivables data, such as loan information, that is managed ei­ ther in SAP systems or third-party systems. Management of collateral constellation You can use this feature to minimize manual processing tasks and to provide a and calculations flexible way of mapping simple and complex relationships between receivables, collateral assets, collateral providers, and collateral assignees. You can use the software to support calculations such as collateral cover, col­ lateral distribution, loan-to-value ratios, calculation of free collateral, and col­ lateral shortfalls. 4.3.4 SAP Reserve for Bad Debts for SAP S/4HANA Business Background SAP Reserve for Bad Debts for SAP S/4HANA (FS-RBD) enables you to create and manage the necessary risk provisions (value adjustment and provision) for their business. It supports the management of single risk provisions as well as flat-rate risk provisions. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 389

390 Key Features The following table explains the key features available: Use Key Feature impairment) FS-RBD enables you to create proposals for a single risk provision that can be Single risk provision (specific The proposals are structured on the basis of pre­ officer. adjusted by the credit institute-specific rules. The component also supports the expected defined flow cash approach that allows you to adjust your single risk provision with many different functions, such as special payments, expected revenue or the liquidation of collaterals. single risk provision at the level of the risk units You can model , Part­ Contract ner Finance Project using the following procedures: , and Expected cash procedure ● flow This procedure enables single risk provision to be created in parallel for financial accounting standards. The risk provision will be calculated by two book values combined with the net present value of the GAAP-specific modeled cash flow expectation. FS-RBD offers extensive functions for modeling the expected cash flow – based on contractual cash flows, spe­ cial payments, and the expected revenue from the liquidation of collateral. ● Outstanding and open item procedure differently (effective capi­ Risk provision is managed according to capital tal, possibly reduced by applicable collateral values), open items for inter­ est, and open items for charges. flat-rate FS-RBD supports the Flat-rate risk provision (general/collective value adjustment procedure, which adapts the risk provision for credit transactions that are not included in the single risk pro­ impairment) vision by a percentage defined by different risk indicators. Risk provision is managed at the level of single transactions. Real-time connection of account­ When the risk provision is posted, the system immediately transfers all bal­ financial ing and reporting ance-sheet-relevant data to financial accounting. This real-time connection means that data is available for internal and external reporting in an instance. Seamless integration The component contains interfaces that enable you to use both SAP systems and non-SAP systems as a source of data. Depending on the risk provision method and the analysis horizon, the source systems (SAP and non-SAP) are connected using standard online interfaces (extractors) or standard open interfaces. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 390 PUBLIC

391 4.4 Insurance Policy Management for Insurance 4.4.1 Business Background Policy Management for Insurance allows you to manage insurance contracts. You can map the life cycle of a contract, starting from the creation of an application, through policy issuance and ongoing contract maintenance, right up to the reversal of the contract. The following personal insurance lines of business are supported: ● Life ● P&C ● Auto To support group insurance businesses you can create and maintain master policies. You can use a master policy to bundle multiple individual policies. Key Features The following table explains the key features available: Key Feature Use Issue Policy You use this feature to create new applications and issue it to generate a policy. Change Policy You use this feature to change policy characteristics through the lifecycle of a policy. Reverse Policy You use this feature to reverse a policy. Update Policy You use this feature to bring a policy through the lifecycle of a policy, like per­ forming adjustments or collection of premiums. Create Master Policy You use this feature to create a master policy. Change Master Policy You use this feature to change a master policy. Reverse Master Policy You use this feature to revert a master policy. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 391

392 4.4.2 Insurance Product Engine Business Background Key Features The Insurance Product Engine msg.PMQ allows you to manage the lifecycle process of your insurance products – from designing new products up to running existing products. The product engine consists of a design time environment for product modeling and a runtime environment for product operation. Key Feature Use Product Modeling You use this feature to create and maintain insurance products for the sup­ ported insurance lines of business. An insurance product consists of product defining objects (e.g. product attributes and tables), mathematical and insur­ ance calculations. The design time environment comprises test and debugging functions. When finished you have the design process, the product data can be used in the run­ time environment. Product Operation You use this feature to perform tariff and insurance calculations. These serv­ ices can be consumed by different insurance applications, such as Policy Man­ agement for Insurance. 4.4.3 Claims Management 4.4.3.1 Claim Lifecycle Business Background You use Claim Lifecycle to automate and manage the entire claims process, from notification of loss to first financial reporting. The following lines of business are supported: claims adjustment and ● P & C insurance, including the following lines: Property (home contents) Liability Automobile ● Health insurance Private health insurance Statutory health insurance SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 392 PUBLIC

393 ● Life insurance Care insurance ● Private care insurance Statutory care insurance ● Workers Compensation Key Features The following table explains the key features available: Key Feature Use Claim You use this feature to record a notice of loss received through different chan­ Notification nels and create a claim. You can capture first relevant information and evaluate the claim. The system supports you with an automated claim handler assignment. Claim Processing You use this feature to capture all relevant claim data supported by a Struc­ tured Facts Capture (SFC) and a Business Rule Framework (BRFplus) tool. All required business processes like investigation, evaluation, negotiation, litiga­ tion, subrogation, settlement, and archiving are supported. 4.4.4 Insurance Billing and Payments 4.4.4.1 Billing and Payments Business Background You use Billing and Payments to perform all collection and disbursement tasks across different lines of business. These tasks include open item accounting, payment processing, incoming payment processing, correspondence, and dunning. You can also map broker accounting and coinsurance business. Billing and Payments allows business process automation and integration with operational insurance systems and back-office applications such as the general ledger. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 393

394 Key Features The following table explains the key features available: Use Key Feature You use this key feature to integrate billing and collection activities. This ena­ Billing and Collections bles you to centralize billing and collections. As a result, payment handling is more accurate and credit control is improved. You use this key feature to automate and integrate front-office and back-office Disbursements processes and systems across lines of business. Supporting a single, inte­ grated system to run payment handling decreases the need for manual trans­ actions and associated costs. Collections and Disbursements for Rein­ You use this key feature to centralize collections and disbursements in a mod­ surers ern technology platform. Integration with general ledger systems ensures al­ most non-disruptive, end-to-end business processes that make reinsurance business process automation possible and reduce transactional costs. When reinsurance organizations consolidate collection and disbursement ac­ tivities, they drive accurate payment processing, credit control, and improved customer satisfaction. 4.4.5 Compensation Operations Business Background You can reproduce sales structures and set up flexible incentive systems. You use standard agreements as the basis for creating individual agreements and settling commission cases. Key Features Key Feature Use Compensation Planning You use this feature to design a consistent remuneration plan, break down your company's strategy to specific sales targets, and cascade plan changes. You can easily build new organizations into its sales composition and integrate com­ pensation for the sale of newly designed products. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 394 PUBLIC

395 Key Feature Use You use this feature to assign services to customer seg­ Sales Portfolio Assignment field ments and manage business portfolio relationships, as well as transfer assignment from one agent to the other. Sales Force Accreditation You use this feature to keep employees up-to-date on the lat­ est rules and regulations by verifying sales force qualifica- and linking sales force credentials to compensation. tions You use this feature to align internal and external sales tar­ Compensation Operations gets with a company's overall strategy - and automates sales force compensation for meeting those targets. 4.4.6 Statutory Reporting for Insurance 4.4.6.1 Statutory Reporting for Insurance Business Background You use Legal Statutory Reporting for Insurance to meet statutory requirements for quarterly reporting and reporting on premium reserve funds and also to create reports for capital investments according to BerVersV and then send to BaFin. Key Features The following table explains the key feature available: Key Feature Use Statutory reporting requirements for capi­ specified layouts or electronic You use this feature to deliver required reports in tal asset management formats that correctly chronicle risks and portfolio data to national and inter­ national authorities. You can create forms or electronic formats from actual subledgers. Statutory reports can be preconfigured with relevant data on re­ porting layouts for country-specific or international versions. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 395

396 4.5 Oil & Gas Production and Revenue Accounting 4.5.1 Business Background Production and Revenue Accounting integrates production volume allocations, division order management, sales contract allocations, volume pricing and valuation, royalty/working interest owner revenue distribution, payment processing, and state and federal reporting and compliance to provide a comprehensive solution that enables Upstream Oil and Gas companies to efficiently manage their vital Revenue Accounting processes. Key Features The following table explains the key features available: Use Key Feature Ownership You can create the master data used throughout Production and Revenue Ac­ counting to provide a single source for Division Order information. This module utilizes common master data sources from the business partner and joint ven­ ture accounting modules, and extends these to support Revenue Accounting functions. The ownership module supports: owner transfers, funds transfers, owner consolidations, and changes in pay status. Ownership master and trans­ actional effective-dated data is used directly in the Revenue Accounting proc­ esses, including chain of title, gross and net revenue interest, tax and market­ ing exemptions, pay status, special entity types, carried owners, Blanchard scenarios, and prior period adjustments. Production The Production application area allocates volumes for materials such as oil or gas from custody transfer points and other points for measurement, back to the source well completions. Production master and transactional data sup­ ports effective-dating and includes a framework for managing changes affect- ing prior periods. Complex production scenarios can be modelled, including scenarios of: gas lift, return lease fuel, multiple streams, fuel systems, load oil, skim oil, and water chain. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 396 PUBLIC

397 Key Feature Use The Sales and Balancing module extends the volumetric data from the produc­ Sales and Balancing tion module with associations and allocations to contracts and owners. Master data supported in this area includes maintenance of marketing relationships for sales as well as allocation rules. Upon receipt of contract sales data, an allo­ cation of sales volumes is performed to the source well completions and to the associated owners. Actual and entitled owner volumes are derived for use in product balancing and revenue accounting. Prior period notifications and ad­ justments are supported. Balancing statements can be managed and made available for partners. The Valuation module allows you to derive the value-based outcomes of a net­ Valuation/Revenue Distribution work of producing entities in a sales period and to allocate these amounts to owners, posting detailed accounting entries to a common ledger. The process supports the following key functions: Settlement diversity: where a royalty owner is valued on a ● basis different than the producer ● Formula-based value calculations for: Actual, Entitled, and Settlement Di­ versity scenarios Contract pricing based on ● or formula schemes fixed ● Pricing formulas can reference published postings, including gravity scale adjustments ● Capture of internal and external marketing rates ● Calculation of supported agency taxes, including support of exempt enti­ classification ties, owners paid on gross, owners free of marketing costs, of certain entities to receive special rates ● Prior period adjustments, including re-allocation of funds due to historic owner transfers ● Settlement statement option for input that allows for direct entry of values into a revenue distribution ● Dual accounting for US-based ONRR scenarios ● Changes to key master and transactional data that can impact a closed settlement will trigger a prior-period adjustment notification, where users can later manage these and take appropriate action notifications Check Input You can process payments received from a third party purchaser or remitter’s remittance statements into the SAP Oil and Gas system with standardized data. This process includes support for formatting and processing inbound CDEX files. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 397

398 Key Feature Use You can: Payment Processing ● Void or un-void checks to help in the management of bank reconciliation View or update the status of checks ● ● Analyze the variance between the current and last payment made to an owner based on month or check Auto-clear checks from bank upload file ● ● View balance amount to be paid for each owner ● Manage minimum pay requirements based on tolerances set by the state with the capability to override by owner Allow state backup withholding and federal backup withholding for the US ● Allow NRA withholding for foreign owners ● ● Set additional validation using special handling codes ● Check if checks are consistent across check writes by running variance re­ porting ● Run check writes at various levels—for example, at the company level, the owner level, the DOI level, or the network level ● Create CDEX outbound files for management of standard check file distri­ bution ● Hold a check for pending analysis therefore not sending a incorrect check You can manage accounts receivable balances. The accounts receivable balan­ Account Receivable ces are updated real time when respective Accounting Document postings take place. This function allows you to view information on current, accounting periods, and historical accounts receivable balances, create comments and categorize balances, transfer balances and write-off balances Production Regulatory Reporting You can produce volumetric reports based on production data. These reports are used to meet the requirements of many state and federal agencies. Responsibility Area You use the Responsibility Area to specify who is responsible for what on the basis of entities (like the geographic locations and venture DOI) applicable for Office of Natural Resources Revenue, Production, Payment Processing, and Ac­ counts Receivable. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 398

399 Key Feature Use You can: Tax and Royalty Reporting ● Manage master data relationships between State and Federal tax and roy­ identifiers alty entities and PRA ● Maintain special tax reporting relationships (for example, New Mexico suf­ fix data) ● Use a report processing engine that provides complete control of execu­ tion to from validation of master data and extraction of master data for processing to report processing and review/correction before posting of journal entries and authorization for payment ● Use various reconciliation and variance reports, auto suspension of re­ cords for processing, and out of statute records management 4.5.2 Inventory and Movement Management Business Background Inventory and movement management allows you to streamline processing and tracking of all hydrocarbon movements and inventory positions. You can consistently execute and track hydrocarbon movements and inventory updates. You can capture and track inventory information and product movements; supports quantity conversions, automatic duty and tax calculations, and pricing updates; and speeds post-movement settlements, such as invoicing and freight settlement. Timely and accurate inventory information leads to better visibility, decision making, and confidence around forecasts, replenishment planning, and trading. Consistent and automated product movement processing promotes stock updates; expedites contract-to-cash and procure-to-pay cycles; and reduces reconciliation, duplication, and corrections. 4.5.2.1 Hydrocarbon Product Management Business Background Hydrocarbon Product Management (HPM) addresses Oil & Gas specific industry requirements in inventory management. It provides additional quantity fields for different units of measure HPM provides a flexible Quantity Conversion Interface (QCI) that allows the conversion of volumes, masses and energy at ambient calorific value, density) into volumes, masses and energy conditions (temperature, pressure, vapor pressure, values at standard conditions. In addition, the Quantity Conversion Interface enables the calculation of density and heating value at standard conditions and functionality for managing physical inventories in tanks via Silo management by creating tank dips, and comparing those inventories at any time with the book stocks. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 399

400 Key Features The following table explains the key features available: Use Key Feature Inventory management for Oil & Gas materials requires industry specific ex­ Material Master with Oil & Gas character­ istics tensions: base unit of measure (UoM), Unit of measure group and conversion group are important additional information for an Oil & Gas material in the ma­ like Air Buoyancy factor, Excise Duty Group play fields terial master. Additional in HPM as well. an important role for Oil & Gas materials and are reflected QCI Hydrocarbons are bulk products in liquid form that are processed and shipped in large quantities by the Oil & Gas industry. Even the smallest in fluctuations temperature can result in considerable in volume, and as a result, fluctuations significant in value. The oil quantity conversion enables the con­ fluctuations to version of quantity of a hydrocarbon product into UoMs and allows an different accurate correction of volumes and density. The quantity conversion itself uses external algorithms which are accessed through the Quantity Conversion Inter­ face (QCI). Based on QCI parameters & values, conversion from one UoM to another is possible. Silo Management Silo/Tank Management allows a company to record physical material stocks in tanks (silos) either hourly, daily, or weekly. As a part of that process, tank dips can be recorded. The physical stock readings (tank dip readings) can be com­ pared at any time with book inventories (storage location stocks, batch stock, or special stock), or with changes in book inventories (goods movement re­ cords). In that way, gains and losses can always be determined and goods movements can be monitored. Tariffs, 4.5.2.2 Duties and Permits Business Background The solution calculates and posts excise duty for dutiable materials. The system calculates and posts excise duty when a goods movements occurs, based on the quantity of material moved, and the location information of the material, if required. The component covers: ● Calculation of excise duty in purchasing and sales ● Calculation of excise duty in inventory management and physical inventory (for example, excise duty calculations for material when there are goods movements between plants with ED rates) different ● Calculation of excise duty in production orders ● Calculation and posting of excise duty liabilities and claims for goods movements of dutiable material ● Split inventory management of the ED portion and net price of a material ● The use of several excise duty rates for a material SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 400 PUBLIC

401 ● Revaluation of inventories after changes to excise duty rates Licenses for excise duty (ED) reductions and exemptions ● ● Region-based calculation of excise duty Data pool for creating reports. ● Key Features The following table explains the key features available: Use Key Feature Calculation of Excise Duty in Purchasing When purchasing contracts or purchase orders are created, the system pro­ poses excise duty data from master records or from Customizing based on the default hierarchy . This data is used to calculate excise duty. Excise duty post­ ings and inventory postings do not take place until goods receipt, however. Whether or not the material is ED-paid is important for excise duty postings, and whether the receiving plant or storage location is an ED-paid area or an ED-free location Calculation of Excise Duty in Inventory For dutiable material that is moved (goods movement), the system calculates Management and Physical Inventory the excise duties based on the quantity of material moved. Depending on the Customizing settings, the system determines and posts excise duties for the following goods movements and special forms of procurement: ● Goods receipts ● Goods Issues ● Transfer postings Physical inventory ● ● Goods movements for customer special stocks ● Subcontracting ● Third-party business ● Consignment Calculation of Excise Duty in Sales When sales contracts or orders are created, the system proposes excise duty data from master records or from Customizing based on the default hierarchy . This data is used to calculate excise duty. However, excise duty postings and inventory postings are made at the time of the goods issue. Whether or not the material is ED-paid is important for excise duty postings, and whether the receiving plant or storage location is an ED-paid area or an ED-free location SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 401

402 Key Feature Use When a dutiable material is produced with components that are also dutiable, Calculation of Excise Duty in Production Orders excise duty calculation is required in the goods issue and goods receipt. If only product, excise duty postings finished the components are dutiable but not the are only made for the goods issue. Excise duty postings that refer to production orders can only be at the full ED rate, or are ED-free. Excise duty postings at reduced rates are not possible. Revaluation of Excise Duty Inventories If the excise duty rate changes, the excise duty value of the inventory also changes. This means that your company has new tax liabilities if there are tax office if there are tax reductions. increases, and can make tax claims to the tax You do not necessarily have to reevaluate excise duty immediately after a tax rate changes. After you have entered the new ED rate in the ED rate table, the system forwards the excise duty inventory with the old ED rate. However, the system posts the ED liabilities or claims with the new ED rate. It posts the dif­ ference between the old and new ED rates to a separate account. At the time when you want to perform an ED revaluation, the system alters the value of the excise duty inventory in accordance with the new ED rate. The sys­ off tem writes difference between the old and new ED rates. A special the ledger structure (FI-GLX) is provided for reporting purposes, and contains da­ tabase structures for individual items and for summary data. You can use these structures to evaluate ED postings based on various key fields, for exam­ ple: ● Company code Plant ● ● G/L account ED status (valuation type) ● ● ED status (FROM location of the material movement) ● ED status (TO location of the material movement) ● Handling type When excise duties are calculated and posted, the system the relevant spe­ fills cial ledger structures. The system enters all transactions with dutiable materi­ als in the special ledger, including those that do not involve ED postings, such as movements between two ED-free plants or storage locations. Once you have installed the structures, you can design your own reports using the Report Writer and Report Painter. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 402

403 Key Feature Use The following functions are available within cross-company or cross-border Calculation of Cross-Company/Cross- Company Excise Duty sales of excise dutiable material: You can map and monitor the following goods movements: Export (goods issue in issuing plant/issuing storage location) ● ● Import (goods receipt in cross excise duty plant/cross excise duty storage location) ● Sales to customer (goods issue in cross excise duty plant/cross excise duty storage location) You can calculate and post excise duties for the following cross-company/ cross-border sales scenarios (with and without using bulk shipment in the transportation and distribution (TD) component): Pickup by the customer ● ● Change of title at discharge ● Change of title at loading 4.5.2.3 Transportation and Distribution Business Background The Transportation and Distribution (TD) covers the logistics activities related to: ● Delivery of product from a delivering plant to a customer ● Transfer of product between two company-owned locations Receipt of purchased product from a vendor. ● These activities are carried out across the processes of scheduling, load confirmation, and delivery The following organizational units are used to support oil industry processes. confirmation. These are also data retention levels in the system. ● Transportation Planning Point ● Intransit Storage Location ● Intransit Plant Integration The Hydrocarbon Product Management (HPM) application area supports the calculation of standard volumes using temperatures and densities. TD and HPM are integrated so that TD supports multiple units of measure within the same transaction. Temperature and density are important factors in the loading, and delivery process. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 403

404 Key Features The following table explains the key features available: Use Key Feature Bulk Shipment Type The bulk shipment type: Determines how the shipment is processed ● ● Is a mandatory entry on the initial scheduling screen ● Cannot be changed once the shipment has been saved In Customizing each bulk shipment type has a text describing the characteris­ tics of that particular entry. These descriptions should be made as explicit as possible to help when selecting a shipment type during scheduling. Create/Change Attributes for Batch Mate­ Using this function you can create new batches and change the attributes of batches during the loading confirmation rial and physical inventory and delivery processes. confirmation If material is mixed from batches, a new batch is generated, often with different classification new attributes. With this function you can change the attributes of the new batch at loading and delivery confirmation. Confirmation Loading confirmation, the system creates a new During loading batch to represent the product on the vehicle. When creating the new batch, the system takes the attributes for the material on board (in-transit) from the master data record of the batch material. Delivery Confirmation During Delivery Confirmation, the system updates the shipment with the actual quantity delivered to the customer. You can change the in-transit storage location and batch in much the same way as during load­ confirmation. ing However, this function only applies to underlying documents that are discharge relevant Shipment Worklists and Mass Processing The shipment worklist is a central access point for working with bulk ship­ ments. The worklist can be used to process single shipments or multiple ship­ specific ments that match selection criteria. The worklist can be used for the following activities: ● You can search for bulk shipments using specific selection criteria ● You can use the resulting list of shipments as a worklist for processing, changing, or deleting shipments ● specific target sta­ You can process single shipments so that they reach a tus ● You can process shipments in batch mode so that they reach a specific target status ● You can check the results of the processing in an application log SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 404 PUBLIC

405 Key Feature Use The scheduling process helps you to plan your shipments and involves the fol­ Scheduling lowing activities: and Group underlying documents including deliveries, shipping notifications reservations into shipments. Assign shipments to an appropriate vehicle, transport unit, and compartment. Assign a driver to the vehicle (optional). Change the quantities of product to be shipped. Plan transport-related activities using the event handling function Loading confirmation records the actual quantities and products Confirmation The process of load confirmation is an alternative to loaded for a particular shipment. Manual load data entry using a Terminal Automation System. Several processes different occur within the load step, the most important being the entry of confirmation actual loaded quantities. Quantities in scheduling are planned quantities and are proposed at the load stage. The planned quantities and the confirmation quantity of the products actually loaded may have changed. You can enter field, these quantities in the quantity or you can enter readings from Vehicle Meters or Rack Meters. In cases where product had been previously left on the vehicle, you can record these quantities in the shipment as prior-to-load quan­ tities. The concept of intransit stock is central to the loading process. A goods movement occurs when the product is moved into the intransit storage loca­ tion, at which point Quantity Conversion Interface (QCI) parameters can be calculated and stored. In addition, any excise duty postings which are a conse­ quence of the goods movement are also performed. Delivery The delivery confirmation process is used to confirm the delivery of actual Confirmation quantities in a bulk shipment. The following diagram shows the underlying final Delivery confirmation is the processes involved with delivery confirmation. step in processing bulk shipments. It enables you to enter the final quantities delivered and to process the differences between quantities delivered and loaded. Several options exist for processing product that has been loaded but confirmation must be completed for each vehicle in the not delivered. Delivery shipment. The vehicles in the shipment each have an individual status, how­ ever, it is not until the shipment has a Shipment Status of 6 that shipment processing is complete and the final postings are made. Delivery confirmation is also a prerequisite for Shipment Costing. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 405

406 Key Feature Use Terminal Automation System Interface Transportation Planning Interface This interface allows data on loading transactions (loading information) to be sent from SAP Oil & Gas to an external system (Terminal Automation System). After the loading transaction has taken place, the external system sends the loading information back to SAP Oil & Gas, where it is processed automatically. The interface supports the transfer of loading information for the following business processes: pick-ups, shipments, goods movements, and physical in­ ventory counts. The Terminal Automation System Interface supports the fol­ lowing functions: ● Sending loading information to an external system ● Receiving loading information from an external system that is destined for SAP Oil & Gas: ○ Using IDocs and ALE ○ Using an internal table and a Remote Function Call (RFC) ○ Manually entering loading information in SAP Oil & Gas ○ Processing loading information in SAP Oil & Gas Depending on whether the loading information is entered in a sales contract, order or contract call-off, or a shipment, the system calls various function modules for further automatic processing. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 406

407 Key Feature Use Shipment Interface Depending on whether the loading information is entered in a sales contract, Unified or a shipment, the system calls various function order or contract call-off, modules for further automatic processing. Interface for Delivery Processing Confirmation This interface helps to automatically create delivery confirmations in SAP Oil & Gas. The delivery is the final step in the shipment process. It con­ confirmation tains all data relevant for delivering bulk product. The interface helps to copy this data from external systems to SAP Oil & Gas. The following interfaces in the Transportation and Distribution (TD) compo­ nent are available for exchanging shipment data with external systems. The shipments whose data is to be transferred, have various shipment statuses: ● Transportation Planning Interface (TPI interface) for shipments with sta­ tus 1 (partly scheduled) and status 2 (completely scheduled). The data is transferred using IDoc OILSHI01 to SAP Oil & Gas, where function module IDOC_INPUT_OILSH1 or IDOC_INPUT_OILSH2 (if the shipment comparer is used) is called. Terminal Automation System interface (TAS interface) for shipments with ● status 3 (partly loaded) and status 4 (completely loaded). The data is transferred using IDoc OILLDD01 to SAP Oil & Gas, where function module IDOC_INPUT_OILLDD is called. Interface for delivery ● processing (DCP interface) for ship­ confirmation ments with status 5 (partly confirmed) and status 6 (completely con­ firmed). The data is transferred using an RFC to SAP Oil & Gas, where function module RFC_SHIPMENT_DEL_CONF_PROCESS is called. Marketing, Accounting and Pricing 4.5.2.4 Business Background The solution Marketing, Accounting, and Pricing (MAP) is enhanced with additional functions required for the downstream oil business. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 407

408 Key Features The following table explains the key features available: Use Key Feature Contract pricing Contract pricing determines the price of a material based on the contract. The contract- contract number is used as a reference in sales documents to allow specific pricing. pricing In cumulative call-off Cumulative contract call-off pricing, the price of a material is determined dependent call-off pricing makes it on the (current) order quantity invoiced. Cumulative possible to give a customer a discount based on the quantity already invoiced. The customer price list simulates the pricing which would be performed in an Customer price lists pre-defined order. You can use the customer price list to view prices for a list of frequently ordered products and quantities. Default pricing dates Carry forwarded from sales order office and branch level pricing Pricing procedure of a head office for customers that are assigned to the head Head can be used . relationship between head office and branch offices in the office customer master data record can be set up. Location flexible pricing using the differen- Reference Code (DRC) is a means of grouping ship-to custom­ Differential The reference code (DRC) tial ers according to their geographic location. It enables you to construct a pricing specific strategy based on market conditions in areas. Time pricing In the oil industry, product prices often change several times a day. For exam­ ple, during the busiest hour at the loading site, the prices could be higher. Date and Time Pricing allows flexible pricing, which takes the time of day into ac­ count. Gross and Net Unit Of Measure pricing is to control if the system should deter­ Gross and net volume pricing mine the price of a material based on gross or net unit of measure. Formula and average pricing Formula and Average (F&A) Pricing uses external quotations such as Platts, Reuters, and others to determine the price of a material. It can be used both on the purchasing side (MM) as well as on the sales side (SD). The purpose of formula and average pricing is to enable the calculation of product prices based on external quotations over a set time period. The calcu­ lation is performed with company-defined calculation rules. Currency fluctua- tions within the time period are taken into account either by daily conversion or by averaging. Differential invoicing If the product is delivered before the averaging period has elapsed, it is neces­ sary to create a provisional invoice. When the averaging period has ended and the final price is known, the price difference is invoiced by creating a differential invoice. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 408 PUBLIC

409 Key Feature Use Using External Details in sales documents and purchasing documents, we can Origin, destination, and external data in the sales and purchasing cycle store additional information on the origin and the destination of the ship-to party as well as other information which is relevant for shipping. This informa­ tion is used for calculating US excise duty, among other things. You can also set additional delivery data and the following additional fields define Conditional exclusion (highest prices) Condition exclusion technique with the IS-Oil enhancement which allows selec­ tion of the highest price. Pricing date & pricing time ,loading date & loading time can be updated at the Alternative pricing date at invoicing creation of invoice Five-decimal pricing Five Decimal Pricing allows us to create condition record for prices ,sur­ charges, discounts with decimal places. ->Subtotals of a document cur­ five rency with decimal places result in more accurate calculations and are in­ five tended for the following purposes. Additional Information on Invoice Output RVADIN01 for invoices has been enhanced to include The print program gross/net Hydrocarbon Product Management (HPM) data on the invoice form MAP_Invoice . Using this print program, you can include additional informa­ tion on the invoice, such as the temperature and density of the material. Integration with SAP Commodity Procure­ The extended features for commodity procurement allows you to ment ● Create commodity purchase orders ● Define flexible pricing rules based on market prices and qualities using De­ Specifications rivatives Contracts (DCS) and Commodity Pricing Engine (CPE) Verify new Material Management provisional and final ● invoice Integration with SAP Commodity Sales The extended features for commodity sales allows you to ● Create commodity sales contracts and sales orders ● Define flexible pricing rules based on market prices and qualities using De­ rivatives Contracts (DCS) and Commodity Pricing Engine Specifications (CPE) ● Authority to Load (ATL) credit check for TSW nominations ● Verify new Sales Distribution provisional and final invoice SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 409

410 4.5.2.5 Marketing, Contracts and Order Entry Business Background The solution Marketing, Contracts, and Order Entry meets the requirements of the oil industry in the areas of fast order entry and contract processing. Customer order processing and contract processing have been enhanced with the following functions: ● Calculation of excise duty in purchasing and sales ● Automatic determination of organizational data ● Display and defaulting of items from the last order Determination of a sequence of up to five preferred delivery plants for the delivery of the goods ● Release of non-delivered quantities of a contract ● call-off Restrictions for deviations from the contract conditions ● ● Redetermination of the item type during order entry Key Features The following table explains the key features available: Key Feature Use Purchase Order Number as a Required Entry If a customer order number appears on the order for that customer, you can define the PO number (purchase order number) field as a re­ quired entry. Contact Person Details specific information about contact persons at the cus­ You can save tomer location in the Contact person view of the customer master re­ cord. Contact person details can contain the following information: ● Last name and first name of the contact person ● Telephone number of the contact person ● Form of address ● Department ● Function SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 410

411 Key Feature Use When you create an order, the system looks up then number of the Last Order Number last order that was created for the same ship-to party, sold-to party, and sales area combination. If an order exists, the number is displayed field in the Last order in the Create order: Overview screen. In such a case you have the following options: ● You can display the last order ● You can copy items from the last order into the order you are processing. You can copy the following data: The material in the last order ● ● The material and quantities in the last order ● Individual items from a selection list ● You can search the order history for orders with other ship-to party, sold-to party, and sales area combinations by entering R as the matchcode ID in the matchcode search. Item Category Redetermination During sales order processing, the system can automatically change the item category to the one configured for the customer/material combination. The system uses the item category determined by the classification standard procedure together with the customer and ma­ terial group to determine a new item category. This can be used, for example, in consignment processing. Using item category redetermi­ nation, consignment materials can be entered in the same sales order with materials which are sold normally. You can also configure the item category redetermination for any other item categories. Automatic Plant Determination If you do not set the IS-Oil planExcise Dutyt determination indicator PD , standard plant determination is invoked. In this case, the system searches for the delivering plant in the following sequence: Customer-material information record ● Customer master ● ● Material master If the material is subject to excise duty, the system displays informa­ Excise Duty tion about the excise duty status in the HT(excise duty handling type) and To (excise duty tax key for "to" destination) fields. The definition of the fields is contained in the Tariffs Duties and Permits (TDP) compo­ nent. You must theED group (excise duty group) field in the Oil define specific data view in the material master record. Partner Function Plausibility Check The system checks whether a ship-to party has already been assigned to another sold-to party in a specific sales area. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 411

412 Key Feature Use Contract handling covers the following activities: Contract Handling call-off restrictions to force compliance with contract ● Set up terms Quantity correction of using the ● delivery indicator final call-offs ● Assign multiple ship-to partners to a contract Multiple Ship-To Parties Per Contract With this function you can link multiple ship-to parties to a single con­ tract. You can also delete or add ship-to parties to contracts that al­ ready exist. Call-Offs Restrictions for Contract Call-offs The following restrictions can be entered in the contract. which deviate from the contract restrictions trigger a message. The message type indicator setting in the contract determines which type of message displayed. Product restriction: A contract call-off can only contain items ● which were created with reference to a contract. Thus, no materi­ als can be called-off without a reference to a contract. ● Quantity restriction: Over-delivery is impossible. ● Unit of measure restriction: No change to the unit of measure is allowed. ● call-off is only allowed for ship-to par­ Ship-to party restriction: A defined ties which are in the contract (see also: Multiple Ship-to Parties per Contract). Terms of payment restrictions: No change to the terms of pay­ ● ment is allowed. ● Validity restrictions: Checks the beginning and the end of the val­ idity period. Final Delivery Indicator The final delivery indicator is used to release non-delivered quantities at contract level for a contract call-off that is the quantity is available again on the contract for a contract call-off. If there are partial deliveries for a contract call-off, when you set the final delivery indicator in the delivery document, the non-delivered material of the quantity in the contract can be re-added to the con­ tract quantity. In addition, the system assigns the status fully delivered to the contract call-off. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 412 PUBLIC

413 4.5.2.6 Marketing Retail Network Business Background A company may carry out its business operations at a large number of different locations. Each of these For oil companies, the profitability. business locations has its own story to tell in terms of performance and business location is typically the service station, but may include depots and non-fuel sales outlets. This component provides functions for managing business locations such as service stations, depots and terminals. With these functions you can manage sales data, data on vendors, dealers, supply contracts, plant maintenance, and so on. The system allows you to enter and integrate all relevant data on business locations, independent of the geographic location, in a virtual database. In this way, Marketing Retail Network (MRN) supports a multitude of functions, from delivery planning to analysis. profitability Key Features The following table explains the key features available: Use Key Feature User-Defined General Data for a Business A link is provided from the business location to the long text handling utility. The link supports the centralized storage of text-based information for each Location business location. The MRN Location Management application is sometimes described as a vir­ tual application. This is because the application has no transaction data of its own, rather it uses transaction postings in related components, such as Sales and Distribution (SD) and Controlling (CO) to derive information about the business location in terms of revenue and profitability. The MRN Location Management application provides enhanced handling of SD Sales Contracts for Retail Network users. Marking Business Locations for Deletion You can only archive a business location record if it is marked for deletion. MRN Data Archiving Archiving Procedure This process describes the basic procedures when performing an archiving session. You are in the Archive Administration; Initial Screen (transaction SARA). You have entered the name of the archiving object in the Object Name field. Archive administration has access to the archive files you want to reload. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 413

414 4.5.2.7 Bulk Distribution Requirements Planning Business Background The solution optimizes planning in petroleum product distribution. It supports the active management of customer inventory by a vendor inventory (VMI: vendor-managed inventory). The vendor can use it to pre-plan replenishment deliveries to a customer. Key Features The following table explains the key features available: Key Feature Use Site Control Parameters (SCP) Site control parameters record site information that is used to control or influ- bulk logistical processes such as delivery planning, shipment scheduling ence and unloading operations. Replenishment Control Parameters material-specific parameters to control bulk replenishment at a You can enter delivery site by using the replenishment control parameters screen for that site. Storage Object Characteristics (SOC) In connection with bulk material handling processes such as delivery planning, scheduling and unloading operations there is a requirement to record informa­ tion about the tanks, containers or silos that are used to receive the bulk mate­ rial. Sales Meter Management In connection with bulk material handling processes such as delivery planning, flow scheduling and unloading operations, there is a requirement to produce meter data and convert it to product quantities. 4.5.3 Bulk Supply Chain Operations Business Background Bulk supply chain operations allows you to integrate process management for hydrocarbon products, from post-planning to scheduling to post-custody transfer. It supports you in day-to-day operational scheduling, nomination, tracking, inventory projections, custody transfers, and service management for bulk hydrocarbon supply chain movements. It provides you a single, comprehensive platform for managing inventory, scheduling, and transportation processes; integrates external systems for trading, production, and service provider analytics; and automates routine tasks in the background. As a result, hydrocarbon providers can reduce inventory working capital, lower transportation and storage costs, improve fleet utilization, make more informed decisions, and eliminate overhead time and costs. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 414 PUBLIC

415 4.5.3.1 Exchanges Business Background The solution enables the setup of exchange agreements between oil and gas companies and handles the exchange of products at various locations. In order to manage exchange business transactions, you can: ● Create an exchange agreement ● Create quantity schedules for planning and monitoring material quantities differences in value of exchanged materials using fees ● Balance Settle claims and liabilities against one another (netting) ● ● Exchange unlike products, and balance the logical inventory that results (logical inventory adjustment) ● reflect the current status of your exchange activities in a specific period Create exchange statements that ● Create additional evaluations with respect to your exchange activities (for example, creating a list of all goods receipts and goods issues within an exchange agreement) . Key Features The following table explains the key features available: Key Feature Use Quantity Schedules Quantity Schedule let you control and monitor the quantity that can be delivered/received by period in contracts and subsequent call off. . Fee handling In an exchange agreement, fees (Handling, Location, Wharf­ Differential, difference age) are used to settle the in value between the materials that are exchanged. They are assigned to contracts and copied to subsequent documents. Depending on Exchange agreement settings they can be in­ ternally or externally posted. Sub/Base product relationships You exchange several sub products but to simplify Exchange balance ac­ counting, only a base product is tracked. Logical Inventory Adjustment A logical inventory adjustment can be posted to settle quantity imbalan­ ces of an exchange agreement without posting physical movements. This can also include an optional negotiated payment. Purchase Assignment (Load Balancing) Business scenario where you assign an existing contract or purchase or­ der to a delivery in order to fulfill a customer order. Netting In movement-based Netting you collect all the bills (billing documents) into one single Netting document and then settle up with the exchange partner, rather than billing each goods movement to the exchange partner separately. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 415

416 Key Feature Use The exchange statement is used to inform your partner of the current sta­ Exchange Statement tus of the exchange agreement. Exchange Reporting Several reports can be used to monitor the exchange status (Customer balances, Vendor balances, Exchange balances , Evaluations of existing quantity schedules, Evaluations of material movements, Evaluations of ex­ change entitlements, Evaluations of exchange transactions and so on) An exchange agreement is made between two oil companies (exchange Exchange Agreement partners), when the companies would like to exchange product at differ- ent locations. The exchange agreement consists of the exchange header and the assigned sales contracts and purchase contracts. Split invoicing allows you to create several invoices with different terms of Split Invoicing payment, instead of one invoice. For example, using the split invoice, you can invoice fees, taxes and the material value (of the product) separately. 4.5.3.2 Trader's and Scheduler's Workbench Business Background The Trader’s and Scheduler’s Workbench (TSW) solution provides functions for stock projection and for planning and scheduling bulk shipments using nominations. TSW provides the relevant master data to model the supply chain. The stock projection, planning, and nomination processes enable the scheduler to schedule bulk shipments while taking into account supply, demand, and available transportation. Key Features The following table explains the key features available: Key Feature Use Inventory Planning Workbench (IPW) The Inventory Planning Workbench enables schedulers to ● Load and supervise a range of terminals and products ● Monitor the inventory run down for past and future periods ● Set up a framework for real-time inventory alerts allowing sufficient time to plan a reaction ● Simulate possible future scenarios to understand the impacts of various decision opportunities SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 416 PUBLIC

417 Key Feature Use With nomination scheduling you can schedule and agree bulk movements with Nomination Scheduling all stakeholders. For routine bulk movements, schedules and bulk movements can be copied. The schedules can be visualized on a map which allows a scheduler or a supply chain manager to monitor the status of all movements and be alerted on any changes. This feature allows you to record the official notices sent by Fax or E-mail by Ticketing your business partners (for example, carriers) to inform you about the product movements. This feature allows you to compare demand and supply quantities for a specific Location balancing period and location, and to maintain a balance between these quantities. Three-way pegging You can use Three-Way Pegging to plan and schedule bulk shipments based on supply and demand information. Integration with SAP Integrated Business SAP S/4HANA supports the integration with SAP Integrated Business Planning allowing the exchange of planning data to forecast demands and plan crude Planning (IBP) procurement. 4.5.3.3 Cost Management for Hydrocarbons Business Background Demurrage and Detention are categorized under direct unplanned costs. This is a very significant cost aspect for Oil & Gas companies to look at methods to bring transparency, traceability and benchmarking. Demurrage management involves a lot of negotiations and discussions between the involved parties that are unique to each case. Similarly, there are nterfaces with third parties to get time logs and claims. The demurrage management framework allows you to manage the demurrage charge creation, sharing, allocation and invoicing. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 417

418 Key Features The following table explains the key features available: Use Key Feature You can use this feature to organize different variants for easily viewing the list Schedule Hydrocarbon Trips of nominations, TD shipments or outbound deliveries and their assignment to shipment items. In case an item is not assigned to a trip, then it can be se­ lected as a reference for trip creation through the same worklist. Laytime and Demurrage You can use this feature to manage the trip life cycle and to calculate the lay­ time and demurrage costs. The trip allows demurrage status management and end to end demurrage tracking across nominations, or TD shipments or out­ bound delivery. You can link several reference document items to a trip item and copy the data from them to reduce manual intervention. The laytime cal­ culation is not restricted to a nomination and is calculated at the level of a trip item. This will allow the extension of laytime calculation to TSW, TD, and SD modules as well as various modes of transport. The charges can be set up in the app as a receivable or a payable and are integrated accordingly with SD and MM pricing and document flow. 4.5.4 Upstream Operations Management Business Background Upstream Operations Management enables companies, for example, oil and gas companies, to carry out their exploration and production operations in the most cost-efficient way to maximize profitability. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 418

419 Key Features The following table explains the key features available: Use Key Feature You can maintain measurements for various nodes in a Production Net­ ● Field Data Capture time range. The measurements can vary from volumet­ specific work for a ric rates to pressure and from compositional analysis to deferment flow events. These measurements are requisite to run allocation. You can do the following: ○ Maintain volumetric meter and tank readings ○ Maintain well and well completion test data and theoreticals ○ Maintain component analysis Maintain zonal contribution factor ○ Maintain well reading data (non-volumetric) ○ Maintain deferment events for a network objects ○ View data errors present in the selected Production Network and alloca­ ● tion period and subsequently fix the errors ● You can connect to your field data repository through SAP MII and publish measurement and well test to ERP Allocation You can allocate volumes of produced and injected materials (for example, crude oil, condensate, water, and natural gas) to their originating well comple­ tions. You can determine the sales, fuel, inventory or non-sales (for example, specific points in the reinjected or fuel gas) dispositions measured between flows downstream from the well completion towards network as the product the network’s end point or custody transfer points. You can also determine the quantity that can be produced within a production network given the con­ straints of the network objects that make up that production network. You can also do the following: ● View the status of selected networks ● Run allocation for Ready to be Allocated networks ● View the results for networks that have already run allocation ● View the aggregated and node level allocation Results in tabular or graphi­ cal view ● Submit and approve allocation results ● View the allocation factors at node level SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 419

420 Key Feature Use ● You can analyze the between the system capability and the allo­ difference Deferment cated result. It explains the reasons for overproduction and underproduc­ tion. You can view and maintain deferment events. ● ● You can view aggregated and node level deferment results. It displays the system capability, allocation values and deferment values. You can reduce the unexplained deferment values within the tolerance limit by viewing the unexplained and explained deferment values separately and creating de­ ferment events to minimize the unexplained deferment result. You can view the results in tabular and chart views. You can analyze whether deferment events are linked to available work or­ ● ders. You can view existing events linked to work orders, link events where they are missing, or link multiple events to an existing work order. In Production forecasting you can do the following: Forecasting Setup and maintain a new project into the production-forecasting module ● of Upstream Operations Management ● Assign and revoke access rights of users for master data like projects, constraints, and so on Capture various constraints (Potential, Capacity, Risk, Opportunity and ● Events) for network objects in a scenario ● Preprocess scenarios and calculate the production forecast (future predi­ cation of hydrocarbon production) and submit the forecast results for ap­ proval in the forecasting module ● View the production forecast results at a scenario or network or network object level ● Approve and publish forecast results Create custom hierarchy ● Upload data through a predefined template from a local machine or server ● to the UOM application Analyze forecast results and compare them with the actual results. You ● can perform a step-by-step analysis of production results by looking at various measures and dimensions from different perspectives Ownership You can use this function to define ownership information for oil and gas pro­ ducing assets and execute ownership allocation. ● You can view the master data of Network Object, for example, Production Reports Network, Well, Well Completion and so on. Master data includes informa­ tion like medium and frequency. ● You can view measurement data based on Production network and Net­ work objects inputs. Geographic Information System (GIS) The geographical information system (GIS) provides operations personnel with an integrated decision-making environment. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 420 PUBLIC

421 Key Feature Use This solution integrates Upstream Operations Management (UOM) and Pro­ UOM-PRA Integration duction Revenue Accounting (PRA). This solution lets you manage both hydro­ carbon production and revenue accounting business processes. This integra­ tion replaces the production processes of PRA with the UOM Production com­ ponent. You need to have both UOM and PRA solutions to use this integrated feature. The Ownership functionality of UOM is disabled when you use this sol­ ution. Following are the features of this solution: ● Unified Data Model - You can use this feature to provide the user interfa­ ces and data persistence that supports an allocation performed using a Universal Allocation Engine. All the data required for consumption by the Universal Allocation Engine is setup and maintained using the User Inter­ Unified faces of UOM and persists in the Data Model for UOM-PRA Inte­ gration. Likewise, the allocation results consumed by the follow-on Pro­ duction Regulatory Reporting and Revenue Accounting processing per­ sists in the Data Model for UOM-PRA Integration. Unified ● Technical Integration - You can use this feature to match the data models on both UOM and PRA sides, so that you can present the production data as required by PRA revenue processes. The data models on UOM and PRA are different and one to one mapping may not be possible. Integration of UOM with PRA is achieved using CDS View – Redirection concept. The ad­ vantage of this concept is that no changes are required on the PRA follow- on process side. ● Migration Workplace - You can use this feature to ensure all desired pro­ duction data is moved from PRA to UOM for users to run volume alloca­ tions. This is only done for selected Delivery Networks in PRA, which the effective rules and transaction user wants to migrate. All master data and data will be migrated to UOM for the prescribed time frames. Universal Allocation Engine - You can use this feature to provide a com­ ● mon engine to perform volume allocations, one that can be applied for all types of networks and variations of periods of processing (daily, weekly, monthly, and so one). This Universal Allocation Engine (UAE) is able to provide consistent and verifiable allocation results from simple to complex common allocation scenarios. Testing Tools - You can use this feature to generate the necessary testing ● tools that will be used to ensure that migrated data from PRA to UOM has occurred correctly. The testing tools shall also be used to validate UOM data against PRA data. The Testing Tools facilitates the validation and test­ ing for accuracy between UOM and PRA data. UDM for UOM-PRA Integra­ tion Process Overview. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 421

422 4.6 Professional Services Projects and Engagement 4.6.1 Business Background Commercial Project Inception synchronizes the creation of sales documents (quotation, contract, or sales order) and projects between Sales and Distribution and Project System, and provides visibility and control of the customer engagement process. Features Use Key Feature Commercial project inception You can create projects with the creation of sales documents (quotation, con­ tract, or sales order). When you create a sales document, this feature enables you to also create a project using standard WBS elements. If you copy a sales document with items, using the Commercial Project Inception feature, you can decide whether to create a new project or use the project already assigned to the source item. 4.6.2 Resource Management Business Background A range of tools and reports are available to establish links between employees and business objects, and thereby adjust processes and workflows to suit the size of your company and the spectrum of your services. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 422

423 Features Key Feature Use staffing Lean You can use tools to manage assignments of employees to both client-facing and inter­ nal engagements. You can: ● Easily identify the right professionals for your engagements ● Assign selected employees to engagements and apply rules Monitor employee assignments ● ● Simplify and validate time recordings for employees (CATS) Obtain reliable reports and forecasts about employee utilization ● ● Use integrated functions for billing and financials service-specific Enhanced time recording You can: ● View data for staff assignments from Lean Staffing ● Use data from Lean assignments to perform automatic input checks dur­ Staffing ing time recording in CATS ● Integrate up to 10 service attributes to enhance the data record structure in Lean Staffing Forecasting of employees to Employees can plan their time, thereby documenting their availability in parallel. This projects improves the assessment of your employee commitments, raises visibility of employee utilization and increases the reliability of the business forecast. 4.6.3 Service Management Business Background Service attributes enable you to integrate attributes and information across the service delivery process, namely staff assignment, forecasting, time recording, controlling, billing, and debit memo request. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 423

424 Features Key Feature Use You can use additional parameters that allow flexible definition and capture of Service attributes diverse requirements for service providers. These parameters are then available throughout the commercial service process, and can be used selectively in indi­ vidual process steps, especially to control processes in resource-related billing. Work periods in resource-related billing Besides the availability of service attributes, you can also use work periods to add enhanced capabilities for billing services. In resource-related billing, the sys­ tem consolidates work and cost assigned to a project (Project System) and con­ siders these values for invoice creation. Power lists staffing with specific processes (such You can use power lists to combine lean staff assignments or the order to bill process) or to invoke actions based on as the information you choose to display. You can use power lists for: ● Staffing assignments ● Sales documents Debit memo requests ● 4.7 Public Sector 4.7.1 Finance 4.7.1.1 Grants Management for Grantee 4.7.1.1.1 Sponsor Management Business Background Adapt a grantee's organizational structure to meet a sponsor's business requirements. Help users manage grant information, and provide status indicators of the grant process according to the administrative requirements of their sponsors. Coordinate funding throughout the grant lifecycle, restrict specific grant posting objects, and control transactions based on grant status. Users can maintain master data components for managing, controlling, and reporting based on the sponsor's administration requirements. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 424 PUBLIC

425 Key Features The following table explains the key features available: Use Key Feature sponsor master data Define a grant sponsor by defining all of the default rules the Define sponsor expects for reporting and grant execution. Document sponsor communication Track all documentation regarding the sponsor and the spe­ cific grant including correspondence, documents, and so on. Document and enter all budgetary agreements with the Document and enter all budgetary agreements with the sponsor for each grant agreement sponsor for each grant agreement. Release budgets Control the use of available funds by releasing budget in tranches throughout the fiscal year or lifetime of the grant based on sponsor rules. defined Reports Report on all attributes of a specific or series of sponsors and grant agreements. Grants Management keeps all infor­ mation based on the sponsor perspective, that is, the spon­ sor’s currency, time frames, fiscal years, and so on. 4.7.1.1.2 Budget Management The maintenance, management, and monitoring of grant budgets. Approved budgets can be transferred to other sponsored programs and cost categories, and changes can be monitored and tracked throughout the entire budget cycle. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 425

426 Key Features The following table explains the key features available: Use Key Feature You can: Enter grant budget data and update as re­ quired ● Use budget entry documents to enter and update approved grant budg­ ets. ● Use budget entry documents to represent budgets in the sponsor’s cur­ fiscal year. rency and Use the budget entry documents to act as an audit trail, allowing you to ● track changes to your budgets and enter descriptions or explanations for each change ● Set up to ensure that each change to your budget must be ap­ workflows proved. Release grant budgets Control the use of available funds of a grant by releasing your budget in tranches throughout the fiscal year or lifetime of the fund. Allow grant budget increases from reve­ the rules for when and how a budget increase based on grant revenue is Define permitted. nue Use reports to support the grant budget maintenance process including, but Reporting not limited to, reports that allow you to do the following: ● Get a budget overview ● Compare budget versions ● Get an overview of revenues increasing the budget 4.7.1.1.3 Grants Billing and Receivables Business Background Maintaining sponsor billing methods and ensuring proper accounting and timely reimbursement. Receiving funding is a major milestone for many institutions with many requirements. To meet these requirements, institutions must document and automate many processes, including billing and receivables. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 426

427 Key Features The following table explains the key features available: Use Key Feature Manual request of payback to the grantee organization. Manual billing Resource Related Billing Bill grant expenses based on consumption. Ability to bill based on different basis of accounting: accruals vs cash. Bill grant expenses following a specific Milestone Billing grant or project mile­ stone plan. Bill grant expenses based on specific installments and peri­ Periodic Billing odic or non-periodic dates. Reporting Report on billable amounts based on status (open, partially or completely billed) for one grant, group of grants, sponsor or group of sponsors. 4.7.1.1.4 Closeout Business Background Create customized closeout rules that meet sponsor guidelines and requirements. Customizable financial closeout rules can help grantees restrict or prevent additional postings, review and act on outstanding obligations, detail sponsor requirements for preparing financial and technical reports, maintain program and grant stages of completion, and detail the steps required for organizational reporting. The closeout process includes a final review of financial transactions and administrative tasks to ensure that proper action is taken to conclude the programs and projects according to a sponsor's requirements. This support helps ensure that the grantee properly concludes all programs and projects according to sponsor specifications. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 427

428 Key Features The following table explains the key features available: Use Key Feature Based on sponsor defined rules and guidelines, charge the necessary grant Run overhead or indirect cost calculation overhead to the sponsor by increasing the grant expense and billing it for reim­ bursement. Transfer residual budgets Transfer residual budgets among sponsored programs or classes or return un­ used budgets to grant. Report on all grants that are either about to close or closed. Reporting 4.7.1.2 Public Sector Collection and Disbursement Business Background Public Sector Collection and Disbursement (PSCD) is used to manage taxes, charges, and state benefits from or for business partners, citizens, students, and taxpayers. The business partners (citizen, student or taxpayer), their accounts (citizen accounts, student accounts, or tax accounts) and contract objects (objects for taxes and state benefits), including the related business transactions, are managed in Contract Accounts Receivable and Payable. Key Features Key Feature Use Mass Data Processing You can manage open item and payment processing in a mass processing run. Master Data Management You can manage master data to link business partners, contract accounts and contract objects in all possible combinations. Inbound Correspondence You can use contract objects to control the obligation of a business partner to submit inbound correspondence. You can perform mass or single processing runs to select overdue inbound cor­ respondence and execute a correspondence dunning run. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 428 PUBLIC

429 4.7.1.3 Public Sector Financials Budget Maintenance 4.7.1.3.1 Business Background The maintenance, management, and monitoring of public funds. You may transfer approved budgets to other projects and departments and monitor and track changes throughout the entire budget cycle. Key Features The following table explains the key features available: Key Feature Use Use the budget structure to define which of your organizational units, sources Map your budget structure of funding and other account assignments are used to represent and control your budget. You can use a budget address to control which of your account assignment elements become key elements of your budget process. Upload planning data Upload approved budgets to the system Enter budget data and update as required You can Use budget entry documents to enter and update approved budgets. ● ● Use the budget entry documents to act as an audit trail, allowing you to track changes to your budgets and enter descriptions or explanations for each change. ● Set up to ensure that each change to your budget must be ap­ workflows proved. Release budgets Control the use of available funds by releasing your budget in tranches fiscal year or lifetime of the fund. throughout the Allow budget increases from revenue Define the rules for when and how a budget increase based on revenue is per­ mitted. Define Define rules for the cover eligibility of your funds management budget to cover cover eligibility over-expenditure in one budget by allowing additional budget to be made avail­ able from another source. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 429

430 Key Feature Use specific figures key figures by filtering define attributes of your budget data. Key You may The resulting amounts can be used to ● Release your budget data Transfer budget between budget types ● Compare values in reporting ● You can: Status management Subdivide the budget process into individual budgeting phases; each ● phase is represented by a status. Regulate the permitted budget processes and user authorizations for ● each budgeting phase. Reporting Use reports to support the budget maintenance process including, but not lim­ ited to, reports that allow you to do the following: ● Get a budget overview ● Compare budget versions ● Evaluate budget information using key figures Get an overview of revenues increasing the budget ● Budget Execution 4.7.1.3.2 Business Background The integration of operational processes and accounting processes with maintained budget. Enables real-time and parallel budget controls that can operate on multiple levels, helping to monitor and control funds while reducing procurement and operating costs. Key Features Key Feature Use Map your posting structure Use master data elements to map the budget structure and reporting needs according to your organizational units and functional viewpoints. Mapping a posting structure for your account assignments allows you to deter­ mine how your commitment and actual postings are represented in your budget structure. They can be mapped on a different level to your budget ad­ dresses and allow you flexible control of your budget data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 430 PUBLIC

431 Key Feature Use You can: Budget availability checks ● Monitor and compare budget values with commitment and actual budget values. Define ● single or multiple budget availability control checks to run simulta­ neously. ● Set a threshold for the available budget. what will happen should budget consumption reach or surpass this ● Define threshold. Earmarked funds Earmarked funds are documents that allow you to reserve part of the available budget for expected revenues or expenditures. Update operational processes that com­ All information relevant for the commit budget process is recorded, allowing you to refer back to the original business process or document, or even to a mit budget preceding step in the process that commits budget (if it exists). Update operational processes that con­ All accounting information relevant for calculating the budget consumption is recorded. This enables you to see, for example, the movement of goods, the sume budget status of invoices and payments, and allows you to check budget availability. Requests Requests support an approval process allowing a separation of duties between recording and posting a financial document. Cash ledger A separate cash ledge supports Cash-Basis Accounting (CBA), and is a com­ plete, balanced set of accounts that takes expenses and revenues into ac­ count, but only at the time that cash is paid or received. Budgetary ledger The budgetary ledger enables simultaneous posting of budget maintenance financial and execution documents. It supports the creation of statements for governmental reporting. Reporting Use reports to support the budget execution process including, but not limited to, reports that enable you to do the following: ● Get a budget execution overview ● Get an overview of budget availability ● Evaluate budget execution information using key figures ● List the operational transactions affecting budget execution ● fiscal years Compare ● Display commitment and actual line items ● Compare budget lines versus commitment and /or actual line items ● Display earmarked funds journal SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 431

432 4.7.1.3.3 Budget Closing and Financial Reporting Business Background The planning, standardizing, scheduling, and monitoring of financial and budget close activities. Key Features Use Key Feature You can: Manage open remaining commitments and budget committed at the end of the ● Close out open commitments in the old fiscal year. fiscal year Transfer *remaining commitments to the new ● year (if legally permit­ fiscal ted). final *Commitments with a full or partial amount that has not reached the stage of execution, and which can be invoiced or paid, depending on the legal requirements. ● Transfer the committed budget along with the carried forward commit­ ments It is also possible to have an approval process associated with this trans­ fer. Manage residual budget at the end of the You can: fiscal year ● Calculate residual budget. ● Transfer residual budget to new year (if legally permitted). fiscal It is also possible to have an approval process associated with this trans­ fer. You can reconcile budgetary accounting data with financial and managerial ac­ Reconcile budgetary accounting counting Key You can use key figures for a number of processes including, but not limited to: figures ● Calculating the residual budget for the carryforward of budget data Reporting Use reports to support the closing process and provide financial reporting in­ cluding, but not limited to: Monitoring of the commitment carry forward ● ● Cash flow reporting ● Cash basis reporting SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 432 PUBLIC

433 4.7.1.4 Tax and Revenue Management Taxpayer Identification 4.7.1.4.1 and Returns Processing Business Background Identification and Returns Processing enables government agencies to administrate the complex and Tax lengthy tax and revenue management life cycle including the key processes such as registration, account filing and remittance processing, billing, correspondence and contact management, maintenance, tax return audit and compliance. Key Features Use Key Feature Definition Revenue Type define the revenue types that represent the agency tax type. You can configure tax return forms and business rules to validate and bill the You can tax return or tax object for each revenue type. Taxpayer Registration You can use guided procedures that facilitate the registration process, support­ ing a single view of the taxpayer while accommodating all revenue types, both form (self-assessed) and object-based taxes (such as vehicle or property taxes). Tax Return and Registration Capture You can use submission of various types of tax returns, such as amended and joint returns, through multiple channels such as paper, fax, batch upload, and the Internet. Automatic Form-Based Tax Return Proc­ You can use a rules engine to automatically validate the tax return data to sat­ essing isfy the filing obligation record. Manual Form-Based Tax Return Process­ Once the tax return has been automatically validated and exceptions have been raised you can resolve the exceptions within the tax officer work center. ing Once you have resolved the exceptions, the tax return is finalized and released for billing. You can use a rules engine to calculate the tax liability for tax objects (such as Tax Object Processing vehicles and property) based on the tax object attributes. Invoicing You can process the creation of invoices and the integration of billing docu­ ments in Public Sector Collections and Disbursement. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 433

434 4.7.1.5 Multichannel Foundation for Public Sector Business Background SAP Multichannel Foundation for Public Sector is a constituent-facing solution that enables public sector organizations to interact with their constituents using a set of standardized and reusable OData services. Key Features The following table explains the key features available: Key Feature Use Manage Online Accounts You can access a constituent account, change the password, and reset a for­ gotten password. Manage Constituent Details You can: ● View and update personal, address and contact information, and commu­ nication preferences. Display, add and delete business partner relationships. ● Display contract object and fact details. ● Process Forms You can: ● filing obligations. Display ● Display, update and submit forms. ● Verify and auto-populate forms content using a business rule engine. ● Add, delete and display attachment. Submit forms without user registration. ● You can view the account summary, bills and details of a particular bill. Access Billing Information Manage Payments You can: Manage bank account details. ● Manage credit card details. ● ● View and update the payment and refund account assignment. ● Make a one-time payment. ● View the payment history. ● Cancel a scheduled payment. ● Manage auto-payments. ● Create or cancel a payment on account. ● Execute credit card payments without user registration. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 434 PUBLIC

435 Key Feature Use You can: Display Communication View alerts and correspondences. ● ● Display or search the business directory. External User Management You can: ● Create or change users and privileges. Receive user ID and password ● notifications. 4.8 Retail and Fashion Retail and Fashion Foundation 4.8.1 4.8.1.1 Master Data Management Business Background Master data is used to support operational processes in all areas of merchandise management or the fashion business. Master data contains the most important information about sites and business partners, such as suppliers and customers, as well as about all articles. Master data management significantly reduces the time required to perform tasks because data is proposed automatically and is based on one single source of truth. Master data objects such as assortments or different different retail or fashion specialists and help processes kinds of product taxonomies facilitate the daily work of run smoothly. Key Features Product Data Management Key Feature Use Compact product overview ● Display product master data and context information. ● Navigate directly to related business objects. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 435

436 Key Feature Use ● Use the article master to store data about all individual articles that a Article maintenance company purchases, sells, or produces. ● Maintain article information: ○ Descriptive information such as article description or weight ○ Identifying information such as Global Trade Information Numbers (GTIN) ○ Available units of measurement such as piece, carton, or pallet Maintain control information that determines how articles are processed ● in: ○ Logistics For example, in replenishment. ○ Sales For example, selling prices and validity periods. Purchasing ○ For example, supplier relationships and purchase conditions. ● Display information associated with articles such as stock levels or stock values. ● Classify and structure articles according to a product taxonomy in multi­ ple ways. Maintain specific information for different kinds of articles, such as fresh ● produce and clothing. ● Collectively maintain generic articles with many variants, for example, with different colors and sizes. Maintain structured articles that consist of a set of individual arti­ specific ● cles, such as sales sets and displays. Perform mass operations and use reference and default handling capabili­ ● Article reference handling and article ties for large volumes of data involved in article maintenance. mass maintenance ● Exclude articles from assortments as of a certain date, for example, if spe­ Article discontinuation cific articles are no longer to be sold or can no longer be procured. ● Discontinue seasonal products, that is, discontinue large numbers of arti­ cles within a short period of time. Predefine a list of articles to be used across multiple processes as selec­ ● Article list tion criteria. Product Taxonomy Management Key Feature Use Group articles in a structure such as a consumer decision tree (CDT) that ● Article hierarchy reflects how consumers typically arrive at purchase decisions. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 436 PUBLIC

437 Key Feature Use ● Group articles in merchandise categories according to common proper­ Merchandise category hierarchy ties. ● Apply a hierarchical structure to merchandise categories to create a mer­ chandise category hierarchy. ● Move objects such as articles, merchandise categories, and merchandise Reclassification category hierarchy levels in the merchandise category hierarchy structure if necessary. Location Management Use Key Feature Compact site overview ● Display site master data and context information. Navigate directly to related business objects. ● ● Model an organizational unit that carries out logistical processes involving Site maintenance articles, such as inventory management, sales, and procurement. A site corresponds to the term location and can be either a store or a dis­ tribution center. ● Enhance site master data with business partner information that is needed for a site to assume the role of a customer or a supplier in proc­ esses such as receiving, billing, and distribution. ● Group sites to simplify the maintenance process. Site classification Season Management Key Feature Use ● Use seasons for time-dependent structuring by bundling articles accord­ Season management ing to their limited product life cycle. Seasonal attributes are especially but not limited to fashion articles, for example, snow shovels are seasonal. Examples of seasons are summer, winter, and fall; however, a season can also be defined at a more detailed level, by collection or theme. Control logistical processes, such as sales and purchasing, based on the ● parameters maintained for different seasons. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 437

438 Value-Added-Services Management Key Feature Use Value-added-services management Manage value-added services that enhance the value, worth, functionality, or usefulness of ordered articles. Value-added services can be either articles or activities such as putting shirts on hangers, ironing, or labeling. Global Data Synchronization Key Feature Use Procure, track, and update article master data from suppliers quickly and Global data synchronization easily to optimize master data exchange. Assortment Management 4.8.1.2 Business Background Companies strive to products in the right place and at the right time in order to meet consumer needs and offer expectations. To achieve this goal and support their retail processes, companies use assortments to model the assignments of the product mix (articles) to stores or store clusters according to aspects such as regional considerations. Key Features Use Key Feature ● Create assortments by assigning articles and site(s) with the relevant val­ Assortment management idity periods. ● List articles as a result of maintaining assortments. Listing maintenance and analysis The article-site-validity period combination specifies when the respective articles should be carried in the respective stores. ● View current listing conditions for a product. ● Simulate the listing of a product and adapt the simulation result before ex­ ecuting the listing. Control logistical processes by using listings. ● ● Analyze listings for the purpose of basic evaluations. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 438

439 4.8.1.3 Merchandise Buying Business Background Retailers need to be able to source and buy merchandise and services using procurement processes and buying processes, companies can procure control mechanisms across the supply chain. Through effective goods faster and at lower cost from suppliers globally in order to: Contribute to the bottom line through informed negotiating, while achieving compliance and increasing ● automation. ● Reduce cost and react flexibly to dynamic market conditions. Support effective ● sourcing, contracts, operational buying, and management of large volumes of invoices. ● specific merchandise and handle purchase orders efficiently and accurately. Adopt buying processes to ● efficiency and transparency through order consolidation. Increase procurement process Key Features The following table describes how the key features available for merchandise buying can be used. Key Feature Use Purchase order processing The specific use cases in retail processes are: ● Create purchase orders for single articles, generic articles together with variants, structured articles with sub-items, and full products with emp­ ties. Provide variant quantities easily and conveniently in a variant matrix or au­ ● tomated by means of an appropriate distribution curve. ● Review information about season assignment, value-added services, and related retail allocations and promotions. ● Automate purchase order scheduling at a highly granular level along the Purchase order scheduling inbound supply chain by defining important intermediate steps such as Ex-factory dates and the arrival of merchandise at shipping destinations. ● confirmations and cor­ Communicate the scheduled dates to and receive rections from external partners. ● Monitor progress along the inbound supply chain and perform actions in response to changes that differ to planned schedules. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 439

440 Key Feature Use ● Collect and consolidate multiple store orders into a single purchase order Collective purchase order management for external suppliers to: ○ Eliminate inefficient manual procurement activities associated with large numbers of individual orders. ○ Speed up supply chain processes from supplier to warehouse to retail location. Combine the requirements of recipients that may exist as warehouse or­ ● ders or sales orders to create a single order for a supplier (pull process). ● Use distribution data for a collective purchase order to control and moni­ tor the distribution of merchandise to recipients. 4.8.1.4 Vendor-Managed Inventory Business Background Close collaboration between business partners along the supply chain is of major importance with regard to streamlining logistical processes and ensuring that consumers are not faced with out-of-stock situations in stores. In a vendor-managed-inventory business model, the task of ensuring that merchandise is available in stores is fulfil this task to the best of their handled by the suppliers or manufacturers. To enable business partners to ability, retailers need to provide the necessary information, including sales and inventory data. Key Features The following table describes how the key features available that support replenishment collaboration can be used. Key Feature Use Vendor-managed inventory Make stock figures and sales data available to suppliers and manufacturers to support their activities with regard to material requirements planning and re­ plenishment planning. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 440 PUBLIC

441 4.8.1.5 Replenishment Planning Business Background Companies often face the challenge of having to deliver optimum of amounts merchandise to a large number of stores on a regular basis. To achieve this, automated processes can be implemented to optimize and integrate merchandise flow across the supply chain, including processes that involve third parties. One of the methods is the pull principle: Demand originating from the recipients is bundled and procured. Replenishment is a pull process used to supply stores with merchandise on a demand-driven basis. Key Features Use Key Feature ● Provide the master data and movement data required to run replenish­ Replenishment integration ment processes. ● Use order proposals as the basis for creating purchase orders for external or internal suppliers. 4.8.1.6 Demand Forecasting Business Background Companies use planned demand data to support requirements planning methods in order to optimize stock levels across the supply chain and thereby better meet consumer needs and expectations. Key Features The following table describes how the key features available for demand forecasting and planning can be used. Key Feature Use ● Define common quantity distribution ratios for variants of a generic article Distribution curve across variant-creating characteristics. ● Use distribution curves in sales, purchasing, and demand management scenarios to distribute quantities automatically across variants different of a generic article if the quantity is provided at the level of the generic ar­ ticle. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 441

442 Key Feature Use The specific Demand management use case in retail processes is to create and organize planned inde­ pendent requirements for multiple articles at the same time, for example, all variants of a generic article. 4.8.1.7 Inventory Management Business Background Companies need to manage inventory, that is, the quantities and the value information for articles carried at sites need to be managed across many locations and channels. Goods movements need to be reflected in inventory, such as an increase in inventory when a goods receipt is posted or a decrease in inventory when a goods issue for a sales transaction is posted. Physical inventory supports the processes of counting article quantities and posting the resulting adjustments. The transparency of inventory information is crucial to the success of any company with retail processes. A sales order represents an agreement between a retailer and a customer concerning the sale and delivery of fulfillment comprises the follow-on processes in the supply chain that result in the handover goods. Sales order of merchandise to a customer and is completed by the billing process. Key Features The following table describes how the key features available for omnichannel inventory and order management can be used. Key Feature Use Inventory management The specific use cases in retail processes are: ● Review stock for generic articles with variants. Review stock for empties. ● ● Review inventory values at retail price. Goods receipt specific use cases in retail processes are: The ● Enter quantities for variants of generic articles using a matrix. ● Consider tied empties, for example, bottles and crates, during goods re­ ceipt. Optionally explode structured articles such as prepacks at goods receipt ● into their individual components (often used during in-store goods re­ ceipt) SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 442

443 Key Feature Use The specific Supplier consignment use cases in retail processes are: the consignment control for an article for each site, for example, Define ● distribution centers and stores, independently of each another. ● Automatically convert goods that are to be transferred from a site's con­ signment stock to a site's own stock. ● Transfer goods from a consignment stock to other sites and retain the consignment stock category. The specific use cases in retail processes are: Inventory valuation Enable valuation at retail price in parallel in one currency. ● Decide whether changes in retail price ● margins. affect Automatically valuate all goods movements at retail based on the material ● differences at retail. ledger and post physical inventory Automate revaluation of inventory at retail if sales prices are recalculated ● for inventory management on an exact-article basis. ● Plan, control, and manage the flow of merchandise from suppliers to dis­ Merchandise distribution tribution centers and then on to stores or customers. ● Carry out cross-docking in the distribution center through support of push and pull processes to move the merchandise through the warehouse more quickly, thereby reducing the costs for processing and storage. Plan merchandise distribution based on: ● Retail allocation (push) ○ ○ Collective purchase orders (pull) ● At goods receipt, automatically or manually adjust the distribution data to correspond with the quantities actually delivered and then distribute the merchandise among the recipients. Order management The specific use cases in retail processes are: ● Create and maintain sales orders for single articles, generic articles along with variants, structured articles with sub-items and full products with empties. ● Enhance the standard price calculation with a promotion pricing service to apply simple discounts and mix-and-match promotions to sales orders. ● Provide variant quantities easily and conveniently in a variant matrix or au­ tomated by means of an appropriate distribution curve. ● Review and change season assignments and/or value-added services. 4.8.2 Retail for Merchandise Management The empowered consumer has fundamentally changed retail. Companies need to establish a digital foundation to simplify their business with a detailed understanding of their customers’ needs and the capabilities that allow them to serve customers individually and seamlessly. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 443

444 Companies need to respond to the increasing need to engage customers at the right moment, consistently, and across multiple sales channels and technologies. A real-time retail platform helps companies transform profitability, their business and makes new business models possible, which can in turn increase revenue, and market share. SAP S/4HANA as a digital core helps companies to achieve these business goals. 4.8.2.1 Store Layout Management Business Background offer Companies strive to products in the right place and at the right time in order to meet consumer needs and expectations. Through well-designed store layouts, retailers aim to create a convenient and appealing shopping experience, which is further enhanced by the optimum presentation of the merchandise on shelves, racks, and other in-store display fixtures, taking into account the number of products on display. This can be executed using a third-party space management solution. Key Features Key Feature Use Structure the assortments of a store using a layout concept as the basis ● Layout maintenance for space management integration. ● Integrate the capabilities of a third-party space management solution and Space management integration use these capabilities to optimize shelf space by determining the best place for articles on the shelves and calculating how much space to allo­ cate to each article based on factors such as sales volume and margins. 4.8.2.2 Retail Price Management Business Background A key aspect of how retailers address the market is the price strategy. That is, sales prices are planned based on various factors such as purchasing prices and margin goals, taking into consideration what consumers are willing to pay for products in stores or through non-store channels. Once a price strategy has been it defined, needs to be implemented, for example, by making the relevant sales prices available to stores and all other sales channels. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 444 PUBLIC

445 Key Features The following table describes how the key features available for retail price management can be used. Use Key Feature Define retail sales prices for articles at the level of sales channels or sites ● Retail price planning with a validity period based on strategies such as planned markups on procurement prices. ● Recalculate and maintain retail sales prices based on changes in influenc- ing factors, such as purchase price adjustments or the need to comply with a new business strategy. ● Specify sales price deals for promotional offers such as buy two, get one Bonus buy free, spend at least a certain amount to get a percentage off or for special sales prices or discounts when a coupon is presented. 4.8.2.3 Promotion Management Business Background Retail promotions are marketing activities targeted at consumers and used by retailers over a limited timeframe to increase customer retention and boost sales volumes. Effective promotion planning and management allows companies with retail processes to adjust price schedules to match customer and market needs that vary with channel and location. Promotions are planned outside the digital core and are then transferred for the execution of logistical processes, for example, article quantities are handed over to procurement. Key Features The following table describes how the key features available for promotion planning and management can be used. Key Feature Use Compact promotion overview Display promotion data and context information. ● ● Navigate directly to related business objects. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 445

446 Key Feature Use Create a promotion or execute promotion planning requirements for par­ ● Promotion logistics ticipating stores to support use cases such as: ○ Consumer promotions designed to promote or boost sales through price deals for consumers and/or agreements with suppliers ○ Stock reduction strategies, for example, reduce stock levels of sea­ sonal merchandise through attractive price deals Product launch, for example, through effective in-store presentation ○ Specify execution data such as store or details for procure­ notifications ● ment. ● Activate follow-on processes based on the promotion data for each spe­ use case. cific Maintain and monitor planned and execution data of promotions. ● ● Integrate the capabilities of a promotion planning solution to be able to ex­ Promotion integration ecute promotions in logistical processes, such as handing over article quantities to procurement. Store Merchandise and Inventory 4.8.2.4 Business Background Solutions for store merchandise and inventory must let retail store associates and managers: ● Access product and inventory data from anywhere in stores and at any time. ● Improve productivity and accuracy. ● Enable customer service and inventory management. Solution capabilities for store merchandise and inventory must provide comprehensive, role-based functionality that is easy to learn and use. Retail store associates and managers have real-time access to product and inventory data for all locations in the area, from desktops, laptops, and mobile devices. Companies can increase workforce efficiency, improve store performance, and increase store sales, shopper loyalty, and customer and employee satisfaction. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 446

447 Key Features Store Merchandise and Inventory Use Key Feature Access real-time product, promotions, stock information, and bonus buys. ● Product lookup View style, color, or size variants of products. ● ● Check product availability in nearby stores. ● Adjust the stock of products for different reasons such as shrinkage or Stock adjustment spoilage. ● Order products by reviewing order proposals. Product ordering ● Order products ad-hoc when standing in front of the shelf. ● Transfer products from one store to another store or from a store to a dis­ Product and stock transfer tribution center. Pack products in separate boxes for a transfer. ● ● Post receiving for goods from internal and external suppliers. Handling of received products ● Support trusted goods receipt and/or detailed goods receipt. Perform cycle counting and zone-based physical inventory. ● Stock inventory count ● View stock inventory counts for monitoring purposes and approve or ini­ tiate a recount. Resolve issues related to product quality and prevent lost sales. ● Store walkthrough Perform daily product-related tasks such as making adjustments to stock ● inventory levels. Review and modify product order proposals. ● ● Print labels ad hoc, for example, if labels are missing or are damaged. Label printing 4.8.2.5 Store Connectivity Business Background Store connectivity includes the connection of point-of-sale (POS) or store merchandise management solutions to support the exchange of master data and transactional data. Typically, most information about articles, prices, and promotions is maintained at the corporate headquarters and needs to be distributed to the point of sale (POS) or to store merchandise management solutions in the relevant stores. The sales and other transactions, such as financial transactions or goods movements, that are performed using the local POS or store merchandise management solution need to be transferred back to the central system and processed. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 447

448 Key Features Store Connectivity Use Key Feature ● Transfer article-related information to POS and store merchandise man­ Assortment list agement solutions, including article descriptions, units of measure, and sales prices. ● Use the information in assortment lists, for example, to support the plan­ ning of in-store visual inspections. ● Transfer and process transactions from POS and store merchandise man­ POS inbound data finan- agement solutions, such as sales, returns, goods movements, and cial postings. ● Transfer information needed at POS and store merchandise management POS outbound data solutions in addition to article information, such as exchange rates, tax data, merchandise categories, and promotions. 4.8.2.6 Merchandise Allocation Execution Business Background Companies often face the challenge of having to deliver optimum of amounts merchandise to a large number of stores on a regular basis. To achieve this, automated processes can be implemented to optimize and integrate merchandise flow across the supply chain, including processes that involve third parties. One method is the push principle: An overall quantity of an article is distributed to the recipients according to rules, ratios, or strategies. Retail allocation is a push process whereby a retail company centrally allocates merchandise to a number of recipients, for example, stores or customers, in order for this merchandise to be distributed. Key Features Key Feature Use Compact allocation table overview Display allocation table data and context information. ● ● Navigate directly to related business objects. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 448

449 Key Feature Use ● Create a merchandise allocation to control which stores get which mer­ Merchandise allocation execution chandise in which amount and when (push process). ● Define how merchandise is distributed, for example, through a third-party process such as ordering products from suppliers or through stock reduc­ tion, that is, by using existing stock, which controls further process steps in the supply chain. ● Generate follow-on documents, for example, purchase orders and ware­ house orders. ● Move merchandise to stores. ● Base merchandise allocation optionally on promotions. ● Integrate the capabilities of third-party merchandise allocation planning solutions. Fashion and Vertical Business 4.8.3 Fashion and Vertical Business is an integrated solution to bring together the processes of design, develop, buy and sell, both to wholesale customers and through their own retail channels. 4.8.3.1 Demand and Supply Segmentation Business Background Companies might need to separate demand from stock transport/sales orders (requirement segment) as well as the inventory within their distribution centers (stock segment) based on certain attributes and want to define which demand could be covered by which supply. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 449

450 Key Features Key Feature Use ● Working based on batch management within distribution centers Demand and Supply Segmentation ● Categorization of product-related demand and supply based on certain characteristics, for example, quality or country of origin ● Demand documents (sales or stock transport orders) as well as supply el­ ements (purchase orders and stock) carry the necessary segmentation in­ formation Segmentation strategies that support the efficient ● fulfillment planning and of requirements with existing or future stock through the mapping of de­ mand segments to supply segments These strategies are applied in requirements planning, by availability check capabilities, and in supply assignment processes. 4.8.3.2 Supply Assignment Business Background Companies need to manage inventory across many channels; they often deal with constraint stock situations where the demand is higher than the supply, especially for seasonal products. Therefore, within a distribution center specific mechanisms are needed to assign supply in an appropriate manner. Key Features Key Feature Use Working for distribution centers in conjunction with backorder processing ● Supply Assignment (BOP) of Advanced ATP (aATP) ● Mapping demand (sales or stock transport orders) and supply (stock and purchase orders) through automated supply assignment rules ● Creating a fixed assignment between the demand (sales or stock trans­ port orders) and supply elements (stock and purchase orders) ● Release process to ensure that only meaningful quantities are delivered, by applying release rules on various levels SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 450 PUBLIC

451 4.8.3.3 Sales Order Management and Processing Business Background Order management allows companies to execute, process, and monitor sales orders. Key Features Key Feature Use Order Scheduling ● Align the delivery dates across items within sales and stock transport or­ ders Define and apply configurable business rules to influence ● the scheduling logic Support stock transport orders ● ● Create a single multi ship-to order (MSO) for any number of ship-to cus­ Multi Ship-to Order tomers belonging to the same sold-to customer Use MSO templates to copy the existing ship-to customer's data for new ● items instead of re-entering all the ship-to data ● Handle stock shortage situations by applying distribution rules to only dis­ tribute the available stock (confirmed quantity) across the relevant ship-to customers Generate specific sales orders for each ship-to customer automatically, ● based on the multi ship-to order ● Group order items (sales orders and stock transport orders) that should Pack Separately – Ship Together be shipped together based on customer business rules ● Define grouping rules to reflect the customer grouping requirements ● Visualize order items belonging to the same Pack Separately – Ship To­ gether (PSST) group ● Consider PSST groups within supply assignment for release checks ● Consider PSST groups for outbound delivery SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 451

452 4.8.3.4 Manufacturing Business Background In the Fashion industry, manufacturing processes need to consider the large variance of one article, for example, in size and color. Fashion manufacturing is supporting these processes to make them more efficient. Key Features Use Key Feature Planned orders and production orders are created on the variant level of a ge­ Master Orders neric article. To make planning and monitoring of the production more effi- you can logically group one or more individual orders into one master or­ cient, der (master planned order or master production order). This allows: ● Collective processing of all the grouped orders, for example, for ATP confirmation. checks, order release, ● Fixed batch reservations for components of production order at master order level. ● Linking of planned orders or production orders to one another over several production levels using master orders. ● Analysis of critical components and calculation of the quantity to be pro­ duced from the limited available components. 4.9 Utilities Finance 4.9.1 4.9.1.1 Bill to Cash 4.9.1.1.1 Billing of Energy and Services Billing of Energy Products Billing of energy products is performed for all types of customer groups including commercial, industrial, and residential customers. It takes place periodically for a defined period (such as monthly, yearly) or is triggered by certain events such as a move-out. products is used as the basis for billing. Defining The amount to be paid is calculated by applying rates or products to the measurement data. The measurement data can either be discrete meter reading values or equidistant time series values. It is also possible to bill on SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 452 PUBLIC

453 the basis of flat rates. The end customer's bill can include not only utilities billing documents but also documents from other sources. By creating a budget billing plan, the utilities payments are evenly spread across the supply period. The following key features support the process: Key Feature Use Definition of rates and products Billing is performed on the basis of rates/products. This in­ cludes billing rules and various other aspects, such as prices and discounts. In deregulated markets, rates/products can be managed for energy supply or grid usage according to the market role of the utilities company. To control when billing or budget billing is executed, certain Schedule billing and budget billing plan parameters and dates such as the end of the billing period, budget billing dates, period length and so on are in a defined schedule. Billing and simulation To calculate the amount to be paid, measurement data is processed and priced according to the assigned billing rules. The billing simulation can be executed to obtain billing re­ sults without making accounting-relevant changes. To avoid overcharged bills, bills can be outsorted according to special validations that can be customized. They are then automati­ cally locked for further processes until they are released. Bill­ ing reversal can initiated to deal with incorrect bills. Budget billing plan A utility company bills for its services at the end of a supply period. Throughout the current period, it therefore charges budget billing amounts to spread the payments evenly. The dates and the amounts for the budget billing amounts are defined in the budget billing plan. The budget billing plan forms the basis for the increase in the budget billing amount. Commerce Management 4.9.1.2 4.9.1.2.1 Receivables Management and Payment Handling In deregulated markets, the distributor is usually paid for providing grid-related services, such as grid usage, to other market participants. A very common market model of handling grid usage invoices and payments between the supplier and distributor is described as follows: The distributor sends grid usage invoices to the supplier. ● ● The supplier checks the invoices and makes payments to the distributor. ● The consumer, as the consumer of energy, pays for grid usage as part of their energy product provided by the supplier. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 453

454 Invoice Verification and Payment (Supplier View) Use Key Feature Grid usage bills can be received using market communica­ Receive and process grid usage bills tion, checked and verified and posted to accounting. The data that is exchanged relates to end customers (points of delivery) to whom the supplier provides services or an en­ ergy product. Complaints can be created for bills for which the supplier Create complaints has a grievance. Send payment or non-payment advice notes Payment and non-payment advice notes can be sent to the verification results. market partner according to the Monitor communication Data exchange to involved market partners is logged and can be monitored. Invoice Receivables Mgmt and Paymt Handling (Distributor View) Key Feature Use Prepare and send grid usage bills to suppliers Electronic bills can be created at end customer level. Grid usage bills are aggregated for each supplier and sent to the suppliers electronically. notifications and payment advice notes are re­ Receive and process incoming payments and payment ad­ Complaint vice notes ceived electronically and can be processed. Incoming pay­ ments that have been posted to the supplier’s account can be assigned to the corresponding payment advice notes. Re­ ceivables can be cleared at end customer level. Complaint notifications can be processed to validate the complaint. Dunning activities can be triggered if required. Postprocessing Grid Usage Payments Payments can be postprocessed at account level. Payments of a supplier that cannot be allocated at end customer level can be reimbursed. Monitor communication Data exchange to involved market partners is logged and can be monitored. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 454 PUBLIC

455 4.9.2 Metering Meter Logistics and Operations Service 4.9.2.1 4.9.2.1.1 Measurement Data Management Measurement Data Processing Measurement data comprises all types of measurement data collected by meters. It can be equidistant time series values or discrete values. It can have the character of meter readings (cumulative index values), consumption, demand data, and so on. Data provided by meters can either be read remotely by smart meters or manually for conventional meters. Measurement data is validated when it is received. If validation is successful, it is available for subsequent processes such as energy billing or energy settlement. In deregulated markets, measurement data is communicated between various market participants. Key Feature Use Manage measurement data configured so that measurement The master data can be data in the form of discrete data or equidistant time series values can be managed. Schedule the collection of discrete meter readings In the case of periodic collection of discrete meter readings, periodic meter reading orders are created and issued ac­ cording to this schedule. Receive and process measurement data This feature is used to upload or enter measurement data. This data is provided from different sources, such as exter­ nal systems, market partners or read manually. The meas­ urement data is validated and if necessary replacement pro­ cedures are applied. Manual adjustments are possible. Addi­ tional calculations can be executed to convert meter read­ ings to consumption values, sums of quantities and so on. Provide measurement data to market partners Measurement data can be sent to other market participants. You can define what types of information is received by cer­ tain recipients. Monitoring and error handling capabilities are available for the communication process. Energy Schedule and Settlement in Deregulated Utilities Markets In deregulated markets, a common requirement consists of determining energy consumption at specific aggregated levels or entities and communicating this information to involved market partners. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 455

456 Energy Schedule: The supplier is responsible for determining an energy schedule for their customers for the following day. The energy schedule (usually based on consumption forecasts) can be the total calculated load specific grid, i.e. a time series of aggregated consumption values for the next shape for the customers in a (schedule) day. This energy schedule has to be sent to the involved market participants, such as the responsible distributor and settlement coordinator. Energy Settlement: The distributor determines the total load shape for each supplier based on the measured energy consumption of the suppliers’ customers and communicates it to suppliers and involved market participants. Key Feature Use Settlement-related entities The following entities that can be used to group points of de­ livery are provided: Settlement Unit and Utilities Grid. The assignment of a point of delivery to these entities is tracked on a time-related basis. Aggregation of time series values Aggregation of consumption of all points of delivery with as­ signment to a settlement unit or grid can be calculated and profile processed in the form of equidistant values. The same logic can be applied to aggregate energy feedings into the grid. profiling Synthetic load profiling is based on synthetic profiles for a Synthetic load specific customer group and customer-specific usage fac­ tors. Synthetic load profiling provides the capability to de-ag­ gregate a load shape. The resulting equidistant time series values can be processed to calculate aggregated consump­ tion. Provision of settlement results to market participants Involved market participants are automatically determined. Settlement results can be sent to them. Data exchange to in­ volved market partners is logged an can be monitored. Monitor communication Data exchange to involved market partners is logged and can be monitored. 4.9.2.1.2 Meter Logistics and Operation Services Meter and Device Management Device Management covers procurement, warehousing and stock movement of devices by using the integration in logistic process as well as installation, replacement and removal of meters and other devices at the customer location. These meters can be smart or conventional meters. The remote functional capabilities of smart meters have to be managed so that they can be leveraged in all relevant processes. To ensure a correct measurement of values, inspection and certification is applied to all relevant devices. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 456 PUBLIC

457 Key Feature Use Devices are configured device-specific master Manage device data by assigning data. This includes registers, the device category and other data such as commands. Devices can be installed, replaced and removed. If device at­ Installation of devices tributes are changed, the device can be modified. It is possi­ ble to maintain allocations and relationships between devi­ ces. Inspection of devices different ways according to The devices can be inspected in legal and internal requirements. Periodic replacement can be used to manage all devices that have to be replaced in a cer­ tain year. Individual devices are inspected in the sample lot procedure. These devices are representative of a group of devices. You can certify individual devices during certification. Disconnection and Reconnection Management Disconnection and reconnection processes are managed by the utilities company. Disconnection is the interruption of a utilities service. Possible reasons for such an interruption can be outstanding payments or at the request of the utilities company or a customer. Smart meters can be disconnected / reconnected either remotely or manually according to the device capabilities. Additional conditions or constraints are also considered with conventional meters, which are disconnected / reconnected manually. Key Feature Use This feature covers the processing of disconnections re­ Processing disconnection quested by customers as well as automatically triggered dis­ connections. In the latter case, an automatic request for dis­ connection is launched according to the customer’s status, for example, as defined in the dunning process. Processing reconnection This feature covers the processing of reconnections re­ quested by customers as well as automatically triggered re­ connections. In the latter case, an automatic request for re­ connection is launched according to the customer’s status, for example, in the incoming payment process. This implies that reconnection is triggered based on an incoming pay­ ment or a customer request. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 457

458 4.9.3 Sales Sales and Customer Service for Residential 4.9.3.1 Customers/Commercial and Industrial Customers 4.9.3.1.1 Customer Service Management PoD Master Data and Registration Management (Distributor View) In deregulated markets, the distributor usually manages the master data and service registrations for all points of delivery (PoD) in their grid area. They maintain master data and communicate changes in master data to all other involved market participants. They manage registration processes, such as start and end of supply, change of supplier, and so on. Use Key Feature PoD master data can be created or changed. Changes can Management of PoD-related master data either be applied manually or initiated by requests received electronically or notification messages. Creation and changes to the PoD address, settlement-related information (usage factor, synthetic profiles) are communicated to the market participants involved electronically. Managing Grid Usage Registrations and Terminations Requests for registration and termination of supply services at PoD level can be received and processed automatically to minimize manual interactions. Acknowledgement and notifi- cation messages can be sent electronically to the involved market participants. PoD master data can be changed ac­ cordingly. Monitor communication and registration processes The progress of registration processes and data exchange to involved market partners is logged and can be monitored. Registration for Grid Usage (Supplier View) In deregulated markets, the supplier has a supply contract with the end customer. When the supplier concludes a new contract with an end customer at a PoD, the supplier has to be registered to deliver energy to this PoD. A request for start of supply registration is sent to the distributor. Upon ending a supply contract, the registration for grid usage has to be terminated. A request for end of supply is sent to the distributor. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 458 PUBLIC

459 Key Feature Use A request to register grid usage for a PoD can be created and Registering for grid usage sent to the market participants electronically using market communication. A request to terminate grid usage for a PoD can be created Terminating grid usage and sent to the market participants electronically using mar­ ket communication. Progress of registration and termination processes and data Monitor communication for registration and termination processes exchange to involved market partners is logged and can be monitored. Multichannel Foundation for Utilities and Public 4.9.3.1.2 Sector For Utilities Gateway Multichannel Foundation for Utilities and Public Sector is a customer-facing solution based on . It provides utility companies a powerful and cost-effective way to extend their customer interactions to digital channels such as Web, Mobile, and Social. SAP Multichannel Foundation for Utilities a set of offers standardized and reusable OData services that are used by the customer-facing applications to access data and processes from SAP for Utilities. The standard services consist of self-service scenarios that enable customers to securely access and manage key account information and perform important activities online, like bill payment, entering meter readings, creating inquiries and sending requests to a utility company. A responsive Web application template for customer self-services is also included with the solution. Use Key Feature This feature enables the customer to manage their online Managing Online Accounts accounts in the following ways: Create a new online account (as an existing customer of ● the utility company) ● As a new customer, create a new business partner with a new associated online account ● Log in to an online account ● Log out of an online account ● Change password of the online account ● Reset password ● Switch between multiple business partners linked to an online account SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 459

460 Key Feature Use This feature enables the customer to manage their personal Managing Customer Details and contact information in the following ways: ● View and update personal information ● View and update address information ● View and update contact information such as phone and e-mail ● View and update preferred method of communication View and update preferred communication language ● ● View and update billing address for the business agree­ ment(s) Managing Utility Contracts This feature enables the customer to manage their utility contracts in the following ways: Create a utility contract (move in) ● End a contract (move out) ● ● View and update details of a contract This feature enables the customer to manage meter reading Managing Meter Reading Data data in the following ways: ● View meter reading history ● View upcoming meter reading dates ● Enter a meter reading ● Submit a meter reading without having the need to log on with a username and password Viewing Bills and Consumption This feature enables the customer to view their billing and consumption information in the following ways:: ● View account summary ● View consumption history View bills ● ● specific bill View details of a ● Download the bill as a PDF file ● Inquire about a specific bill ● Additional features for smart meter users (based on SAP EDM) include: ○ View current consumption ○ View forecasted consumption ○ Download consumption data SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 460 PUBLIC

461 Key Feature Use This feature allows a customer to manage their budget bill­ Managing Budget Billing Plans ing plans for their contracts in the following ways: ● View budget billing plans ● Modify current budget billing plan amount to the value within the allowed range and specify the starting date for the changed plan ● Opt in to a payment plan and specify the starting month for the payment plan ● Opt-out of a payment plan Managing Payments This product feature enables a customer to manage pay­ ments through their online accounts in the following ways: ● Manage bank account details ● Manage credit card details ● View and update payment and refund account assign­ ment ● Make a one-time payment ● Make a one-time payment without having the need to log on with a username and password View payment history ● Cancel a scheduled payment before it is processed ● Communicating with the Utility Company This feature enables the customer to manage their commu­ nication with the utility company in the following ways: ● Send a message to the utility company ● Attach a file when sending a message ● Trigger a customer follow-up automatically workflow, View past interactions with the utility company ● Request a change of data through an approval process ● View alerts ● ● notification Create service requests using service ● View the service notification history ● View a service order linked to a service notification ● View and download the electronic version of the letters sent by the utility company such as welcome letters and dunning letters Managing Outages This feature allows a customer to manage their energy out­ ages in the following ways: ● Report an outage for their property ● View outage map published by the utility company SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 461

462 Key Feature Use This product feature enables a customer service agent to co- Agent Co-browsing browse the self-service Website with a customer should they face difficulty in navigating through the Website, or finding a page, menu or button to carry out a task. The agent sees the same information on the Website as the customer and is able to guide them. This feature allows the agent to do the following: ● Search for a customer using first name, last name, con­ tract account ID, business partner ID, address, phone and E-mail ● Co-browse the entire self-service Website with the cus­ tomer Perform some actions such as entering a meter reading ● and updating the address on behalf of the customer 4.10 SAP Waste & Recycling 4.10.1 Waste Disposal Management 4.10.1.1 Logistics and Operational Service 4.10.1.1.1 Management of Service Object SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 462 PUBLIC

463 4.10.1.1.1.1 Container Management Business Background The container is a kind of equipment which represents a physical service object of the storage and transportation of waste and provides toghether with criteria like the waste itself and the frequency of the service the basis for the billing of the individual services. All containers with the same characteristics are based specific on a container category. The container is assigned to the related service location and contains waste data. In order to ensure the proper handling of the containers the related container category can be assigned to the permitted vehicle types and material groups. The container management includes procurement by using the integration of logistic processes as well as placement, replacement and removal on customer location which represents the service location. The following features support the process: Key Features Key Feature Use Manage container data configured by assignment of container specific master data. Containers are This includes container category and other data such as waste management data. Installation of containers Containers can be placed, replaced or removed from a service location. In case of changed attributes the container can be modified. Inspection of containers The containers can be inspected in different ways according to legal and inter­ nal requirements. Periodic replacements can be used to manage all devices that have to be replaced in a certain year. Container groups can be used if only the amount of containers on a certain Container groups service location is relevant. The related services such as placement and re­ moval are only addressed to the container group and not to a specific one. Customer allocation The customer allocation to a certain container is enabled by assignment of the related contract information. Based on this the executed service on container level can be invoiced according to the contract agreement. Service frequency This feature is used in order to determine the interval in which the service for a container is executed such as container emptying service. The service fre­ quency is only valid for a certain time slice. It’s common to assign a reoccurring service to a container in the area of municipal waste collection. For commercial customers it’s more common to assign a one-off service. A service is always assigned to a service area. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 463

464 4.10.1.1.1.2 Cleaning Object Management Business Background A cleaning object represents an object in your system on which a cleaning or winter service can be take place. This can be a street, park or container for instance. Each cleaning object references to the regional structure and contains information such as address data, cleaning method and measurement parameters which are relevant for billing. More than one cleaning object can be allocated to a property. The following features support the process: Key Features Key Feature Use This feature is used to create and maintain cleaning objects in the system and Manage cleaning object data allocation of various data such as cleaning object category, address informa­ tion, measurement points, cleaning method and so on. Beside this the allocation of a property to a cleaning object is required because the cleaning object cannot be directly billed. Customer allocation The customer allocation is enabled by assignment of the related contract infor­ mation. Based on this the executed cleaning service can be invoiced according to the contract agreement. Service frequency This feature is used in order to determine the interval in which the service for a cleaning object is executed such as street cleaning service. The service fre­ quency is only valid for a certain time slice. It’s common to assign a reoccurring service to a container in the area of municipal waste collection. For commercial customers it’s more common to assign a one-off service. A service is always assigned to a service area. 4.10.1.1.2 Route Management Business Background By the route management a regional grouping of containers and cleaning objects of one or more service areas can be undertaken. Different route types can be maintained such as dynamic or static routes. Static routes are common in the service areas of domestic waste or standard waste collection. Dynamic routes are more common in the area of container service and bulk waste service. The maintenance of route data is a business process usually executed by the planners where the allocation of service objects can take place. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 464 PUBLIC

465 The following features support the process: Key Features Use Key Feature This feature supports the assignment of up to 3 service areas and confirmation Route key attributes categories to the route. This helps to distinguish the routes according the serv­ ice which are covered by the route and required confirmation values. differentiation the routes can be also defined In case of a required deeper for certain waste fraction and region. This feature is used in order to determine the interval in which the service for a Service frequency container or cleaning object is executed by this route. The service frequency is only valid for a certain time slice. Target value assignment This feature is used to assign various planned target values to the route such as distance, duration, no. containers or weight. Resource assignment This feature supports the assignment of resources such as vehicle and work center. Beside this also a shift and a timeframe can be assigned in order to de­ fine the period in which the route is serviced. Waste disposal calendar This feature enables the central control how service dates, falling on non-work­ ing days, are processed. Capacity planning define for a certain day and route the capacity This feature is used in order to particular for the bulky waste collection area. The capacity is measured in vol­ ume and weight. Additionally the daily capacity can be assigned to a certain el­ ement of the political regional structure. 4.10.1.1.3 Order Entry Business Background The order entry contains the waste disposal order and waste disposal order item creation for all kind of waste disposal and cleaning services. The waste disposal order contains all relevant data such as allocated resources and route information which are required for the service execution. The waste disposal order items are generated based on the services in the service objects. They are allocated to the waste disposal order and can contain customer and service object specific data including the provided service and related contract agreement. The following features support the process: SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 465

466 Key Features Key Feature Use This feature supports the creation of disposal orders for the service execution Disposal orders on a certain container. Each order is referenced to a certain service area (e.g. domestic waste collection) and service type (e.g. container emptying). Cleaning orders This feature supports the creation of cleaning orders for the execution of clean­ ing or winter services on a certain cleaning object. Each order is referenced to a certain service area (e.g. winter service) and service type (e.g. scattering salt). This feature is used to create waste disposal order items for container place­ Transport orders ment, replacement and removal for a service location. Bulky waste orders This feature supports the creation of bulky waste disposal order items. The re­ lated orders are assigned to a certain route and daily capacity. Based on the entered customer the most recent bulky waste collections for this customer are displayed. This can affect invoicing (e.g. 2 collections per year free of charge). 4.10.1.1.4 Order Scheduling and Execution Business Background The order scheduling is a daily operation in order to plan the order execution based on route and resource assignment. A planned order is the prerequisite for order execution. The following features support the process: Key Features Key Feature Use Shift Planning This feature supports the assignment of vehicles and work centers (driver, co- driver) to the waste disposal order which are responsible for order execution. Additionally information for the driver can be maintained as order text. Route Allocation This feature supports the route allocation to a waste disposal order if a route was not specified at waste disposal order creation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries 466 PUBLIC

467 Key Feature Use This feature supports the selection of waste disposal orders based on various Order Output file. In both cases criteria and provide them as paper output or electronically as it has to be defined which fields of the waste disposal order are required. Ac­ different forms can be cording to the business area such as a route list defined or single orders. This feature supports to setup of system behavior in case of dispatching an or­ Subcontracting der to a subcontracted vehicles or subcontracted waste disposal facilities. 4.10.1.1.5 Logistics Completion Business Background The logistical completion of waste disposal orders and waste disposal order items represents the final completion of the executed orders. All relevant data is collected which is required for the service invoicing to the customer and calculation of the internal costs per order. The following features support the process: Key Features Key Feature Use Weighing data record This feature is used in order to create a weighing record in completion on waste disposal order or item level. Here the weighing and all relevant logistic data can be entered. This feature is commonly used in case of waste deliveries to exter­ nal instead of internal waste disposal facilities in order to gather all informa­ tion. Waste disposal order item completion This feature is used in order to complete the specific order item to a service object. Therefore all relevant data out of the logistical execution are captured within the order item and stored for the further processes such as billing. In case of completion of transport orders the related container movement will be executed such as the container allocation to a service location or removal from a service location. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 467

468 Key Feature Use This feature is used in order to complete the waste disposal order which con­ Waste disposal order completion duration and distance. At tains all relevant resource data such as vehicle, staff, order completion all relevant data out of the logistical execution is captured and stored on waste disposal order level. This data is required in order to calcu­ late the internal costs of the used resources. This feature supports the setup and handling of subcontracted processes for Subcontracting transport and deliveries to external waste disposal facilities. Depending on the process type such as purchasing of transport services or selling valuable mate­ confirmation rials the required documents will be created after of weighing notes, waste disposal orders and waste disposal order items. confirmation with sales and This feature supports the creation of debit memo requests at completion of Integration of distribution waste disposal order items which is the basis for billing. Prerequisite is the con­ tract assignment to the related service object such as container in advance of the waste disposal order item creation. These billing relevant confirmation val­ ues are stored in the related confirmation fields. Integration of confirmation with inventory This feature supports the goods receipt creation out of the logistic completion in the background. Therefore it is required to create a weighing ticket out of management fill all relevant data such as waste material, receiving plant and completion and storage location by entering the waste disposal facility and the related quanti­ ties. Integration of confirmation with control­ This feature supports the CO postings after waste disposal order completion. ling confirmation values the CO-data is prepared and posted. There­ Based on the fore 2 options are available: the cost calculation on waste disposal order level based on route data and on waste disposal order item level. 4.10.2 Finance 4.10.3 Bill to Cash SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 468

469 4.10.3.1 Billing of Waste Disposal Services Business Background The billing of waste disposal services is performed for all types of customer groups such as commercial, industrial and municipal customers. For municipal customers the billing takes place periodically for a defined period (such as monthly or yearly) or is triggered by a certain event such as move-out. The base for pricing is mostly the municipal statutes. For commercial and industrial customers the billing takes place after fulfillment of an ordered service. The base for pricing is the related customer contract agreement and the service product which holds all ordered defined services and conditions. The following features support the process: Key Features Key Feature Use Integration of SD contracts This feature supports the integrated billing of commercial services at logistical completion. The contract holds all required information in order to invoice the agreed services. The contract itself has to be assigned to the service object. This feature supports the integrated billing of municipal services based on a Integration of IS-U contracts Utilities contract. The contract starts with the move- in of a customer at a cer­ tain premise and ends with the move-out date. The related services are in­ voiced based on the municipal statutes. 4.10.4 Waste Disposal Facility Management 4.10.4.1 Waste Disposal Facilities Business Background The waste disposal facilities are one of the important elements in the logistic process of waste management companies regardless whether it is the own or external waste disposal installation. There takes place all kinds of inbound and outbound deliveries including the typical waste treatment procedures. In order to map the waste disposal facilities all required information can be merged such as technical, personal and business SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 469

470 information. This includes the assigning of functional locations, allocating creditors/customers, allocating waste management partners and so on. The following features support the process: Key Features Use Key Feature Waste disposal facility types This feature is used to distinguish the waste disposal facilities according to the different types. Waste disposal facility data This feature is used to map relevant data for a certain waste disposal facility in staff, the system such as waste disposal facility operator, address information, sales and stock information. Depending on the usage within the logistical proc­ ess also creditor/debtor information can be assigned. This is the base for cre­ ating all relevant documents for sales or purchasing activities to the related fa­ cility. Additionally it can be distinguished between internal and external facili­ ties. External facilities are often used in case of not sufficient own storage ca­ pacity or if certain wastes are not permitted to deliver to the own facility. In this case the delivery and treatment will be purchased at external facilities. Processes within a facility This feature is used in order to map the treatment processes in the system such as sorting and splitting and is connected to stock postings. The stock quantities and values are updated in the process. This feature is used to automatically log all procedures within a waste disposal Operations log facility such us inbound and outbound weighing’s, facility internal processes or malfunction reports. By selecting a certain waste disposal facility all related processes according to a certain date or date range are displayed and provide a transparent overview. 4.10.4.2 Weighbridge Operations Business Background The inbound and outbound deliveries at a waste disposal facility are mostly registered via a weighbridge where all relevant data will be entered such as customer, vehicle, material and quantities. The related weights are captured by a weighbridge and transmitted into the system. After checking all data and the delivery fulfilled the weighing transaction will be closed and the related stock updates and billing permissions are processes will be triggered depending on the weighing type. The following features support the process: SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for 470 PUBLIC

471 Key Features Key Feature Use This feature is used in order to register material deliveries based on waste dis­ Internal delivery posal orders or order items. All relevant data will be captured and the weight will be fetched from the weigh­ bridge. If the weighing transaction is posted the weights will be transferred into the logistical order and the stock will be updated. Internal transport This feature is used in order to register material outputs based on waste dis­ posal orders or order items. All relevant data will be captured and the weight will be fetched from the weigh­ bridge. If the weighing transaction is posted the weights will be transferred into the logistical order and the stock will be updated. This feature supports business processes such as the internal order-related re- location of waste or deliveries to external parties (e.g. recycling or disposal companies companies) or the selling of valuable materials out of the treatment process. External delivery This feature is used in order to register contract or non-contract related mate­ rial deliveries. All relevant data such as customer, license plate and/or contract information are registered. The weights will be captured and after posting the weighing transaction the stock will be updated and the invoice process triggered. The base for pricing is the contract or the price book. External transport This feature is used in order to register contract or non-contract related mate­ rial outputs. All relevant data such as customer, license plate and/or contract information are registered. The weights will be captured and after posting the weighing transaction the stock will be updated and the invoice process triggered. The base for pricing is the contract or the price book. This feature is used in order to define the calibration limits the minimum or Checking the scale load maximum scale loads per weighbridge type and assign the relevant weighing information. When exceeding/falling below the calibration limits in the weigh­ bridge operator gets information. This feature supports at checking the maximum load of a vehicle in order to Checking the vehicle load (own vehicles) avoid that the vehicle exceeds the load limit at leaving the waste disposal fa­ cility. During the weighing process it will be checked if the gross weight is within or without the maximum load of the vehicle. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA LoB Products for specific industries PUBLIC 471

472 Key Feature Use This feature is used in order to get fast access to vehicles which are still within Yard list the waste disposal facility and the related weighing transaction. An entry in the yard list will be generated based on the first weighing on the related weighing transaction. Cash journal integration This feature is used in order to register incoming or outgoing payments regard­ ing to a weighing transaction directly in the cash journal. CPD customer integration This feature supports the deliveries by a one-time customer. A CPD customer can be assigned to the weighing transaction. Based on this the customer ad­ dress can be assigned in order to provide the invoice with the correct data. Weighbridge interface This feature is used in order to connect external weighbridge devices with the system. The technical parameters. SAP S/4HANA 1809 - Feature Scope Description specific industries SAP S/4HANA LoB Products for PUBLIC 472

473 5 SAP S/4HANA Compatibility Packs specific SAP S/4HANA Compatibility Packs are set forth in the Software Please note that the usage rights for Use Rights Document. Localization In addition to the compatibility packs listed in this document, SAP provides the following functional localizations for the following countries: Country Functional Localization Argentina Electronic invoicing Austria Electronic invoicing Brazil TAXBRJ tax calculation schema China Electronic invoicing Croatia Electronic invoicing Denmark Electronic invoicing Finland Electronic invoicing Kazakhstan Electronic invoicing Mexico Electronic invoicing Portugal Electronic invoicing and delivery documents Russia Electronic invoicing South Korea Electronic invoicing Turkey Electronic invoicing Ukraine Electronic invoicing SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 473

474 5.1 Asset Management Maintenance Operations 5.1.1 5.1.1.1 Analytics for Maintenance Operations Business Background Plant Maintenance Information System Logistics Information System The that you can use to is part of the analyze maintenance data. Key Features The following standard analyses are available in the Plant Maintenance Information System : Use Key Feature Location- and Planning Group Two standard analyses are provided to evaluate the location data and the planning group data. The information structure S061 ( Location and Planning ) provides the data for both Analysis analyses. For the location, you can, for example, analyze the number of unplanned, plan­ ned, entered or completed orders, the overall estimated costs, the total planned costs and the total actual costs or the internal and external material rate. For the planning group, you can, for example, analyze the number of entered breakdowns, notifications or orders, or the actual total revenues and costs. Object Class- and Manufacturer Two standard analyses are provided to evaluate the object class data and the manufac­ Analysis turer data. You can, for example, evaluate the number of entered and completed notifica- or orders, or get key about the internal and external material rate and mate­ tions figures S062 ( Object Class and Manufacturer rial costs. The information structure ) provides the data for both analyses. Single Object-Damage Analysis In the standard analysis for single object-damage, you can evaluate the damage data for single objects. You can, for example, evaluate the amount of damage, how many individ­ ual causes of damage there are and the number of activities performed. The information structure S063 ( Damage Analysis ) provides the data for this analysis. Object Statistics You can use the standard analysis for object statistics to view statistical data for the technical object. You can, for example, view the acquisition value, get key figures about the total number of functional locations and pieces of equipment and evaluate the num­ ber of functional locations with no equipment installed. The information structure S065 ( Object Statistics ) provides the data for this analysis. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 474 PUBLIC

475 Key Feature Use In the standard breakdown analysis, you can evaluate data recorded in connection with Breakdown Analysis out the cause behind a the breakdown of a machine. The aim of this analysis is to find short or long breakdown period, or the period between two consecutive breakdowns. S070 The information structure Breakdown Statistics ) provides the data for this analy­ ( sis. The standard vehicle consumption analysis enables you to evaluate the key figures Vehicle Consumption Analysis Dis­ tance Covered Operating Hours , Fuel Mass and , . The information structure Fuel Volume S114 ( Vehicle Consumption Analysis ) provides the data for this analysis. Costs Analysis You can use the standard costs analysis to evaluate the key figures regarding the costs incurred. You can, for example, analyze the total planned and actual costs for mainte­ nance measures, the actual revenues, and the actual costs for company’s own and exter­ S115 Costs Analysis ) nal material for maintenance measures. The information structure ( provides the data for this analysis. 5.2 Finance 5.2.1 Accounting and Financial Close 5.2.1.1 From FI-AA: Derived Depreciation Areas Business Background A derived depreciation area is an area for which the values are calculated from two or more real depreciation areas using a calculation formula. The rules for positive/negative net book value of a derived depreciation area are checked with each posting and depreciation change in the corresponding real depreciation areas. Technical Information Type of Component Component Application Component Derived Depreciation Areas (FI-AA-AA-BV-DD) Software Component S4CORE SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 475

476 5.2.1.2 From FI-AA: Group Assets Business Background You can group together several fixed assets into a group asset in order to handle these assets depreciation for the depreciation calculation and depreciation update. area-specifically A group asset is represented in the system by a separate master record. Technical Information Component Type of Component Application Component Group Assets (FI-AA-AA-BV-GA) Software Component S4CORE 5.2.1.3 Special Ledgers (FI-SL) Business Background You can use special ledgers to define ledgers yourself for reporting purposes. You can manage the ledgers you define yourself with any account assignment objects as general ledgers or subledgers. Account assignment objects can be SAP dimensions from multiple applications (for example, account, business area, profit center) and own dimensions (for example, region). The following functions (amongst others) are available with the special ledgers: Flexible database structures with additional fields ● ● Selective data retrieval ● Adjustment postings (for example, for the currency valuation) ● Alternative chart of accounts ● Alternative fiscal year with multiple fiscal year variants ● Total line items from other applications ● SAP-wide reporting (with data from different SAP applications) SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 476

477 Technical Information Type of Component Component Special Ledgers (FI-SL) Application Component S4CORE Software Component 5.2.1.4 Cost of Sales Ledger Business Background The cost of sales ledger (table GLFUNCT ) contains the totals records for cost of sales accounting, which is a profit and loss statement that matches sales revenues to the costs of the products sold. type of GLCUNCT The contents of the cost of sales ledger and all special ledgers created in table are included in the Universal Journal (table ACDOCA ). Technical Information Type of Component Component Application Component FI-SL-SL Software Component QRT_STAG 5.2.1.5 Reconciliation Ledger Business Background The reconciliation ledger tracks postings entered in Controlling for which the value affect other flows organizational units in Financial Accounting. This includes postings such as: ● Activity allocations ● Repostings ● Settlement of internal orders Special reports let you investigate these postings across functional areas, company codes, or business areas. COFIT ) and all special ledgers With the new architecture, the contents of the reconciliation ledger (table created in table COFIT are included in the Universal Journal (table ACDOCA ). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 477

478 Technical Information Type of Component Component CO-OM-CEL Application Component S4CORE Software Component 5.2.1.6 SAP Financial Closing Cockpit Business Background SAP Financial Closing Cockpit helps you with the planning, execution, and analysis of closing operations for The the organizational units of your corporate group. The solution provides a structured user interface for recurring periodical tasks in the closing process in which several people responsible are involved. The following types of closing steps are supported: Transactions, direct execution of programs, execution of programs in batch processing, workflows and manual steps. To optimize the closing process, the solution provides the following functions: ● event-controlled organization of closing activities ● Process overview and monitoring options Analysis tools ● Technical Information Type of Component Component Application Component Financial Closing cockpit Add-on (CA-GTF-FCC) Software Component FCCO 5.2.1.7 Preparations for Consolidation Business Background With the preparation for consolidation you prepare financial reporting data in such a way that it can be processed from the consolidation application (for example consolidation (EC-CS)). SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 478 PUBLIC

479 These preparations are prerequisite for the automatic transfer of data from the SAP Financial Accounting (FI) applications, Center Accounting (EC-PCA), Materials Management (MM) and Sales and Distribution (SD) Profit to consolidation. These applications that feed the consolidation manage the required account assignments in your documents and make these available to the consolidation with the data transfer. The preparation for consolidation includes functions that can be used independently of SAP Consolidation to reconcile receivables/payables or expenses/revenue between consolidation units and to transfer data to the consolidation application of the parent company.  Note The data of the preparation for consolidation is stored in table GLT3 . Note that you may need table GLT3 SAP S/4HANA for the migration of general ledger accounting data. when implementing Technical Information Type of Component Component Feeder components for consolidation: FI, EC-PCA for exam­ Application Component ple Software Component S4CORE 5.2.1.8 Profit Center Accounting (EC-PCA) Business Background Profit Center Accounting supports you in determining internal operating income for profit centers according to period accounting or cost of sales accounting. It is also possible to display restricted assets on the profit centers. Finally so-called statistical key figures (for example, employees, square meters) can be managed on the profit centers. This makes it possible to determine all the key figures normally used in Controlling (return on investment, cash flow, sales per employee, etc.). Technical Information Type of Component Component Application Component Profit Center Accounting (EC-PCA) SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 479

480 Type of Component Component S4CORE Software Component 5.2.1.9 Consolidation (EC-CS) Business Background Different The features of Consolidation (EC-CS) can be used for external as well as internal group reporting. types of consolidation are available on the basis of custom-defined organizational units (for example, profit centers). companies or financial Consolidation enables you to periodically schedule, generate and monitor your consolidated offers a high degree of flexibility statements. This process with regard to the timing of closings as well as the configuration of different accounting principles. Technical Information Type of Component Component Application Component Consolidation (EC-CS) S4CORE Software Component Report Writer and Report Painter: Usage in Finance 5.2.1.10 Business Background fulfil Report Writer and Report Painter are tools for creating reports that reporting requirements in Finance. You can use Report Writer and Report Painter to report on data from multiple applications. Report Writer uses a graphical reporting structure that is the basis for the reporting definition. During the definition the user sees the structure of the report in the form in which the report appears when the data is issued. definition easier, you can use line models or column models and standard layouts. To make the report In Report Writer you use functions such as sets, variables, formulas, cells and key figures to help you create complex reports that meet specific reporting requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 480 PUBLIC

481 When working with Report Writer, you can use certain functions that are not supported by Report Painter. These functions include: Multidimensional column structures ● User-defined definition of inactive row and column combinations ● ● Enhanced functions for using cells in column formulas Technical Information Type of Component Component Application Component Multiple application components in Finance, for example, FI- SL-IS, EC-PCA-IS-RP, EC-CS-IS-STD-RW, EC-CS-IS-USD-RW, CO-PC-IS Software Component S4CORE 5.2.1.11 DataSources: Usage in Finance Business Background A DataSource is an object that makes data for a business unit available to the SAP Business Warehouse (BW). DataSources contain a number of logically-related fields flat structure and contain data that are arranged in a to be transfered to BW. DataSources are mainly shipped with the back end.  Note You can continue to use the DataSources for Finance; exceptions are listed in SAP Note 2270133. However, we recommend that you switch to the new DataSources as soon as they are available. Technical Information Type of Component Component Application Component Multiple application components in Finance, for example AC, FI, CO, EC, TR Software Component S4CORE SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 481

482 5.2.1.12 Data Retention Tool (DART) Business Background The Data Retention Tool is designed to help SAP users meet legal requirements concerning data retention and data transfer for tax auditing. You use the tool to periodically extract and store tax-relevant data from various SAP applications. The data is extracted into sequential files which can be viewed with the tool in different ways. COEP and FAGLFLEXT / We still support DART segments that are based on the old database tables (such as ) A which have been replaced by the Universal Journal (table ). ACDOCA Technical Information Type of Component Component Application Component CA-GTF-DRT Software Component QRT_STAG 5.2.1.13 From Joint Venture Accounting: Redundant Tables Business Background Joint Venture Accounting enables you to form joint venture partnerships by Joint Operating defining Agreements (JOAs) with one or more partners. By combining monetary or personnel resources, you can share your project’s expenses and revenues with dedicated partners. As operator you can manage ventures, arrange venture activities, and maintain accounting records. This allows you to remit venture expenses, collect revenues, and distribute revenues to your partners according to their ownership shares. You can use the Joint Venture Ledger line item and totals tables, such as JVS01 and JVT01 , as well as the Billing Ledger tables, such as JVS02 and JVT02 . Technical Information Type of Component Component Application Component CA-JVA SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 482 PUBLIC

483 Type of Component Component S4CORE Software Component Travel Management 5.2.2 5.2.2.1 Travel Management Business Background Travel Management covers the end-to-end process from a travel plan, the reservation of travel services on through the creation of an expense report, its approval, settlement and posting (to financial accounting, human capital management or using data medium exchange). Key Features The following table explains the key features available: Key Feature Use Travel Request As a traveler, you can submit a request for an intended trip. As a manager, you can approve or reject a travel request. Travel Planning As a traveler, you can plan your travel itinerary by booking travel services (flights, hotels, rental cars, ...) Travel Expenses As a traveler, you can create and submit your expense report for reimburse­ ment. As a manager, you can approve or reject a travel expense report. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 483

484 5.2.3 Receivables Management Electronic Bill Presentment and Payment (FI-AR, FI- 5.2.3.1 AP, FI-CA) Business Background SAP Biller Direct allows billers to send and their customers to receive invoices electronically, thus making invoicing more efficient. The following key features are available for bill recipients (integration with and FI-CA ) FI-AR Use Key Feature Bill recipients can view account balances–bills, credits, and payments. View bills Bill recipients can download bills as PDF files and other formats in case an opti­ Download bills cal archive has been connected. Bill recipients can pay open bills by credit card or bank transfer. They can also Pay bills settle open receivables with credits. Create payment advice notes Bill recipients can create payment advice notes. File complaints and make inquiries Bill recipients can file complaints by opening a dispute case and make inqui­ ries. Manage balances Bill recipients can view monthly balances and line items. They can also carry confirmation. out balance The following key features are available for billers (integration with FI-AP ) Key Feature Use Upload and download bills Billers can upload bills for their recipients. They can also download the bills that they have uploaded. View open bills Billers can check which bills are already entered in their recipients' accounting system. Billers can view the payments that their recipients have already made. View payments already made Manage balances Billers can view monthly balances and line items. They can also carry out bal­ ance confirmation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 484 PUBLIC

485 Technical Information Component Type Component Biller Direct ( ) Application Component FIN-FSCM-BD S4CORE Software Component Human Resources 5.3 5.3.1 Core HR and Payroll 5.3.1.1 HR Administration Business Background HR Administration enables you to manage many benefits processes, storing information on employees by date and time. Regional HR organizations can access flexible, localized processes delivered for more than 50 countries. Key Features The following table explains the key features available: Key Feature Use Personnel Administration You can enter and process employee-related data within your company. Person­ nel Administration automatically checks all data as it is entered to ensure that it is plausible. All employee-related data is logged with the exact date. Data re­ mains transparent in your time progression at all times, and creates the basis for sound personnel decisions. Working with Object Manager You use the object manager to find employees whose data you want to display or edit. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 485

486 Key Feature Use You can perform the following business processes for an employee: Business Processes in Personnel Admin­ istration ● Hiring a New Employee ● Organizational Reassignment of an employee ● Country Reassignment of an employee ● Employee Leaving the company Employee Reentry into the company ● Personnel & Organization You can use this component to manage employee master data and organiza­ tional data from a single point of access: the landing page. This intuitive user interface a unified and enhanced rich search, activity-based access to offers tasks, organizational data, employee master data, analytics, and a built-in col­ laboration platform. Maintaining HR Master Data You can use the functions for maintaining HR master data to perform all the tasks necessary to enter, update, and analyze employee data. ● Technical Processes in Personnel Admin­ You can set up general authorizations that are based on the SAP-wide au­ thorization concept or you can set up HR-specific structural authorizations istration that check by organizational assignment to determine if a user is author­ ized to perform an activity. ● The employment period calculation functions enable you to determine dif­ ferent employment periods from the employee data. The result of the em­ ployment period calculation is required for further processes or functions. Within Personnel Administration, the storage functions provided by SAP ● ArchiveLink facilitate the use of content servers to store copies of incom­ ing documents, such as employment contracts, appraisals, and employee photos. Thus the Human Resources department can save time and money by managing the personnel centrally as it increases in size and detail. file ● You can use the archiving and delete functionality to archive or destroy long-term change documents from Personnel Administration that belong to a personnel number or an applicant number. Service Request Side Panel As an administrator, you can use this side panel to create and maintain service requests, directly alongside the application you are using. It enables you to pro­ vide context relevant data within the service request, which aids the Shared Service Center (SSC) agent in understanding the issue. Management of Global Employees This is a comprehensive solution that helps global companies streamline their expatriation and repatriation processes from A to Z according to their specific needs - from the planning and the preparation of the global assignment, to the global assignment itself and the repatriation – and thus track global employees throughout the world at any time. The recruitment process, however, is not within the scope of this functionality. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 486 PUBLIC

487 Key Feature Use You use this component to manage HR master data, the time data, and benefits Concurrent Employment of your concurrently employed employees, and to run the payroll for these em­ ployees. 5.3.1.2 Payroll Business Background Payroll allows you to process and ensure accurate, on-time payrolls across the enterprise. You can use this solution to process payrolls, third-party payments, tax reporting, and accounting data by country, region, and language. With its integrated functions, the solution manages differentiated value that supports net payroll calculation and legal reporting. Using this solution, users can enter HR information that becomes immediately available to payroll programs for gross-to-net calculations. Key Features The following table explains the key features available: Key Feature Use Gross Payroll You use this feature to determine an employee’s basic remuneration as well as any special payments, overtime payments or bonuses that must be effected for the period in question. Net Payroll You use this feature to determine employee’s net remuneration, according to contractual requirements. Net pay is the amount paid after the deduction of net and social insurance contributions from gross remuneration. Off-Cycle As an addition to regular payroll, which carries out payroll at fixed regular inter­ Payroll specific vals, this feature enables you to carry out off-cycle payroll activities for individual employees on any day. Loans You use this feature to enter, administer and perform payroll for company loans in the SAP system. Bank Transfer You use this feature after the payroll run, to generate data medium exchange (DME) for your bank. Based on these files, the bank can process the wage files and salary payments. Posting to Accounting You use this feature to evaluate the payroll results for posting to accounting. This feature is the interface between Payroll and Accounting. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 487

488 Key Feature Use You use this feature to generate various reports to be used internally or to be Reporting sent to legal authorities. Some examples of reports are the Remuneration Statement, Payroll Journal, and Payroll Account. Payroll Control Center You use this feature to control the complete payroll process. It helps you to plan, monitor and audit your process, producing high quality results quicker and more efficiently. 5.3.1.3 Organizational Management Business Background As an HR professional or manager, you can gain a full view of your organizational structure - and capabilities of talent management processes. Assigning requirements to developed job positions provides input for choosing the most fitting, talented employees. Key Features The following table explains the key features available: Key Feature Use Manager’s Desktop This component provides managers with data on the organizational plan of their area of responsibility and enables them to edit this information. Editing Jobs, tasks, and staff assignments You can create, display or assign jobs, tasks, or staff assignments. Authorizations for Human Resources You can set up general authorizations that are based on the SAP-wide authori­ zation concept or you can set up HR-specific structural authorizations that check by organizational assignment if a user is authorized to perform an activ­ ity. Note: All information refers to the SAP Standard Release 4.70 unless other­ wise stated. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 488 PUBLIC

489 Key Feature Use The Workforce Viewer provides a simplified Workforce Viewer solution for representing organiza­ tional (org.) structures. The main objective is to use and display the solution within the Human Capital Management (HCM) lanes for applications such as Manager Self-Service (MSS), Personnel & Organization, and Employee Self- Service (ESS). The solution has been conceptualized to provide an easy-to-use and aestheti­ org. structures. Currently, cally pleasing graphical representation of different object types, organizational units (OrgUnit different the solution displays three card), positions (position card), and employees (employee card). Position Budgeting and Control finance employees efficiently in accordance with You can use this component to budget or legal requirements. Gives you a detailed view of your overall personnel budget, and links this budget HR Funds and Position Management to the staff and positions in your organization. This component enables you to execute operational personnel cost planning. Personnel Cost Planning and Simulation You plan the development of your employees’ wages and salaries and employee benefit costs, for example, employer contributions to social insurance and fur­ ther education and training costs. You can simulate different planning scenarios that are based on various assumptions and analyze the effects they have on the company. Personnel Cost Planning and Simulation enables you to support stra­ tegic personnel management and the overall strategy of your company. Compensation Management 5.3.1.4 Business Background differentiate Compensation management enables you to between your remuneration strategies and those of your competitors while still allowing flexibility, control, and cost effectiveness. It provides a toolset for strategic remuneration planning that reflects your organization culture and pay strategies, and it empowers line managers within a framework of budget control. Compensation Management allows you to control flexible bottom-line expenditures and offer competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion – in other words, total compensation. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 489

490 Key Features The following table explains the key features available: Use Key Feature You can use this component to plan and process remuneration changes. Compensation Administration Long-Term Incentives You can use this component to set up your company’s long-term incentive (LTI) plans and describe how equity compensation should be granted and han­ dled. You can use this component to create, change, and monitor budgets in your Budgeting company. Job Pricing You can use this component to analyze, evaluate, and determine the compen­ sation level for specific jobs, based on the current market rate. This compo­ nent enables you to offer competitive compensation packages that attract the best possible pool of applicants, thus enabling you to hire the best possible employees for your organization. Manager Self-Service 5.3.1.5 Business Background Manager Self-Service enables you to increase productivity and reduce operational burdens for HR staff. A role- based user interface that helps managers make decisions on executing human capital, financial, and operational management strategies. This solution supports planning, analysis, budgeting, recruitment, compensation, employee development, and cost management processes on any device. Access to automated processes, data, and workflow requests can reduce cycle times and transactional costs. It integrates self- services with business intelligence capabilities and aggregates data from all sources. Managers can use this integrated data to make informed decisions regarding corporate strategies and resource management. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 490

491 Key Features The following table explains the key features available: Use Key Feature Manager Self-Service: Home page You can view: Team ● ● Birthdays and Anniversaries ● Time Recording Status for My Team ● Deadline Monitor ● Competency Matchup ● Substitution Manager Self-Service: Work Overview You can use this application to access your inbox. The inbox lists the work items, alerts, and for which you are responsible. Page notifications ● Team You can have an overview of the team attendance and also view the team calendar. ● You can display employees for one or more organizational units, display di­ rectly reporting employees in a list, search for employees. ● You can start a process for one or more employees. ● You can start the hiring process for a new employee. You can display forms and attachments. ● You can select one or more direct reports to manage their participation ● bookings. Recruiting You can obtain a comprehensive overview of all requisitions that you have ● initiated with your own requisition request that you are processing as a substitute for another manager, or that were assigned to you by a re­ cruiter. ● You can call and edit questionnaires for candidates. ● You can assess candidates with regard to the Talent Pool or requisition. ● You can display a data overview of requisitions, requisition requests, can­ didates, and job postings. ● You can create or edit a requisition request. ● You can specify substitutes who can take over their tasks during planned or unplanned absences under the recruitment process. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 491

492 Key Feature Use ● You can display the pie-chart and competencies matchup information. Talent Management flexible predefined appraisal process. ● You can execute a or ● You can plan or approve compensation for managers or employees as­ signed to you. ● You can display an overview of the current status of the planning process in Compensation. ● You can display detailed information about an employee's compensation. ● You can compare compensation of multiple employees. ● profile. You can display an employee's detailed employee compensation Planning You can: Display service requests submitted requesting master data changes and ● budget updates ● Manage planning rounds as part of Express Planning Projects You can: ● Display service requests submitted requesting master data changes and budget updates ● Display planned costs and cost consumption on orders for which you are responsible ● Display planned costs and cost consumption for projects based on the work breakdown structure (WBS) elements ● Display the budget and funds available on orders for which you are re­ sponsible ● Display the budget and funds available for projects based on the work breakdown structure (WBS) elements Budget You can display: Critical variances by profit ● Centers, Cost centers, or orders ● Critical postings by profit Centers, Cost centers, or orders ● Costs and depreciation associated with each asset and piece of equip­ ment ● Assets and pieces of equipment that are assigned to each employee Organization You can: ● Displays the Organization Units in the manager’s area of responsibility ● Select and launch position profile ● Request an administrative change for a job, position, or organizational unit ● Search for organizational processes ● Change the position requirements for your positions Reports You can use this service to launch reports that are relevant for you. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 492 PUBLIC

493 Key Feature Use You can substitute both tasks and applications to other users in an organiza­ Substitution tion. Reminder of Dates You can use this service to see the birthday, anniversaries, and dates from the monitoring of task absence data for the employees who are in your area of re­ sponsibility. Employee Self-Service on Behalf in MSS You can launch services (applications) on behalf of your employees (WDA) 5.3.1.6 Employee Self-Service Business Background Employee Self-Service enables you to improve productivity by automating processes and reducing administrative costs, cycle time, and error rates. By giving employees more control over their own data, organizations can realize a quicker return on investment. Self-services gives employees personalized access to their own HR data, processes, and services. Employees take more responsibility for their jobs and career development. Employees can enter, display, and update personal information such as bank information and emergency contacts. HR members freed from routine inquiries and data entry can focus on strategic staff initiatives that contribute to business goals. Key Features The following table explains the key features available: Key Feature Use Employee Self-Service (ESS) in Training You can: and Event Management Display the current business event offering. ● ● View all of their bookings and the status of each booking. ● Provide support for the organization and management of business events by giving internal Intranet users access to an event calendar divided into subject areas. ● Make bookings or prebookings for business events directly via Intranet. ● Access information on bookings they have made for training courses or other business events offered by your company. ● Cancel your own bookings on business events offered by your company. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 493

494 Key Feature Use You can: Employee Self-Service (ESS) in Recruit­ ment ● Apply to vacancies advertised internally ● Create attachments ● Check the status of your job applications over the intranet Employee Self-Service (ESS) in Personnel You can: Development qualifications profile Edit your ● Compare your qualifications profile ● profile of the with the requirements position to which you are assigned. View the (skills, talents, knowledge) that have been re­ ● qualifications corded in the system for you ● View the requirements of the position to which you are assigned View the appraisals where you have been the appraisee (annual reviews, ● for example) ESS Services in Compensation Manage­ You can: ment ● Execute salary surveys ● Display a total compensation statement ● Exercise awards Employee Self-Service for Concurrent Em­ You can: ployment Maintain Multiple Personnel Assignments ● Prevent Access to Services ● ● Customize Global Employment Roles You can view and print their Total Compensation Statement (TCS) whenever ESS for Enterprise Compensation Man­ required. agement You can record your time and absences for the projects assigned to you. ESS for Personnel Time Employee Self-Service (ESS) in Training You can: and Event Management ● Display the current business event offering ● View all of your bookings and the status of each booking ● Access to an event calendar divided into subject areas through the intra­ net ● Make bookings or pre-bookings for business events directly through intra­ net. ● Access information on bookings that you have made for training courses or other business events offered by your company ● Cancel your bookings for business events offered by your company International Services International Services are available with ESS SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 494 PUBLIC

495 5.3.1.7 Benefits Enrollment and Administration Business Background Benefits plans. As an HR Enrollment and Administration enables you to develop and manage employee benefit benefits you can improve communication of information to and from staff, providers and review related reports. selections through self-service. As a manager or an employee, you can access and change your benefits Key Features The following table explains the key features available: Use Key Feature Benefits Management You can perform the following main activities using this component: ● benefits plans and terminate enrollments Enroll employees in ● Monitor continuing eligibility for plans Monitor provision of evidence of insurability ● View information about current benefit enrollments ● Print enrollment and ● forms confirmation ● Transfer data electronically to plan providers ● Administer retirement plans Benefits Employee Self-Service You can use this component to manage your benefits independently online. You have continual access to up-to-date information about your benefits, and effective. any changes you make are immediately Specifics Addresses functions in the Benefits Administration component that are spe­ USA cific to United States employers. This component includes information on info­ types that are used to administer COBRA plans, Flexible Spending Accounts and Tax-Sheltered Annuity Plans, as well as reports that are used to monitor employee contributions made to benefits plans. Asia Specifics This component enables you to implement the Claims function for Asia. This function caters mainly to medical claims, but this can also be used for other claims such as cloth reimbursements. Since most of the health care is private, a medical insurance is part of the contract of employment. UK Specifics This new solution for the UK market enhances existing functions delivered with the International Benefits component. It provides you with a wide range of functions to implement your chosen Flexible Benefits scheme and enable your employees to enroll in benefits plans. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 495

496 Key Feature Use This component includes functions that Pension Fund (PA-PF) Calculate employee contributions to the pension fund ● ● Calculate benefits (technical account management) ● Create reports Manage a pension fund ● HR Shared Services 5.3.1.8 Business Background HR Shared Services enables you to deliver accurate, consistent, and timely responses to employees and managers. It simplifies the workflow required to respond to HR requests. Providers can reduce costs while helping to improve employee satisfaction with services. It provides HR services through shared-services channels in an engaging, helpful manner. Organizations can optimize shared-service delivery using the consistent, predictable, and easily navigated workspace that our software provides. Key Features The following table explains the key features available: Key Feature Use HCM Processes and Forms You can use this component to execute HR processes in which changes are to be made to HR master data. You can use interactive forms to integrate all in­ volved roles directly in the process. HR Administrator This subcomponent of HR Administrator Services contains the HR Administra­ tor portal role that provides all tasks and functions for the HR department in the portal. The role of HR Administrator is integrated optimally in the HCM Processes and Forms framework: The system automatically forwards the proc­ essing steps of a process that are to be performed by an HR administrator to the portal role. You can also edit employee data in this role. This function is based on the maintenance of HR master data. The HR administrator can call the master data maintenance directly using the Employee Data Maintenance in the portal or through the backend system. The HR administrator can also change master data without using the HCM Processes and Forms framework. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 496 PUBLIC

497 Key Feature Use You can use this component to provide central storage for all documents that Digital Personnel File (DPF) the employees of your company. You can store documents relating to the affect work relationship, remuneration, life events, for example, or certificates and other legal documents. You can design the structure of the Digital Personnel File (DPF) to suit your own requirements. The HCM Processes and Forms framework previously used the Adobe interac­ Web Dynpro ABAP UI (Alternative UI) tive forms solution integrated with Web Dynpro ABAP for its user interface (UI). A new UI based on the Floor Plan Manager (FPM) framework has been created as an alternative. 5.3.2 Talent Management 5.3.2.1 Goal and Performance Management Business Background Goal and Performance Management enables you to motivate your workforce by aligning them with corporate goals. Managers can cascade goals, review employee performance, and identify each employee's development needs with standardized, consistent appraisal and performance processes. Using this solution, managers can develop employees, calibrate their overall performance, and review potential ratings in a visual grid. They can also integrate those performance ratings with compensation management to support pay for performance - enabling the HR organization to monitor, support, and control performance processes. Key Features The following table explains the key features available: Key Feature Use Development plans You use this component to map general and individual personnel development plans in your system. You can use these development plans to plan and man­ age short-term and long-term personnel development measures. Objective Setting and Appraisals This component supports you when you perform user-defined appraisal proc­ esses that assure appraisals are performed in a formalized and standardized manner in a standard business context. You can depict the typical phases of an appraisal process such as planning, reviewing, and performing. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 497

498 Key Feature Use This component provides you with the support you need for creating appraisal Appraisal Systems systems, and planning, implementing, and reporting on appraisals. An ap­ praisal system is a self-contained process that enables you to make formal and standardized evaluations in a business context using one or more templates (appraisal models), and in as objective a manner as possible. 5.3.2.2 Talent Assessment Business Background profiles Talent Assessment enables you to consolidate employee talent for full assessments in a structured and objective approach. With greater ease and speed, HR professionals and business leaders can prepare, conduct, and follow-up on talent review meetings with a cross-organizational view of up-to-date talent data. As a result, business leaders can make more-informed decisions on talent pool membership, and create and manage succession plans, employee performance and potential ratings. Key Features The following table explains the key features available: Key Feature Use Transfer of Data to Talent Management You can use this function to transfer existing Talent Management data from other applications into Talent Management (PA-TM). Search in Talent Management You can search the talent pool to identify possible successors for important po­ sitions or to discuss talents in talent review meetings Assessment of Employees You can use this function to assess your employees. Profile You can store all information relevant to Talent Management for an employee. Talent Talent Group You can use this function to create groups for classifying talents and thus structure the pool of talents in your enterprise in larger logical units: Assigning a talent to a particular talent group enables a systematic entry of that talent's development and thus a better overview when managing talents, for example, for Succession Planning. Talent Review Meeting You can use this function to prepare, hold, and follow up on meetings for dis­ cussing talents. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 498 PUBLIC

499 Key Feature Use You can use this function to place the short profiles Side-By-Side Comparison of two or more talents next to each other and compare them side-by-side. You can use this function to edit development plans for employees and monitor Talent Development their progress. 5.3.2.3 Skill Management Business Background Skill Management enables you to maximize employees’ utility within your company. You can plan and implement specific personnel and training measures to promote the professional development of your staff qualification requirements are met and planned. By taking into employees. You can also ensure that account employees’ preferences and suitability, you can increase job satisfaction. Personnel development sets out to ensure that all of the employees in all of the functional areas in your company are to the qualified qualification required standards, and will remain so in the future. This is achieved by developing potentials. Key Features The following table explains the key features available: Use Key Feature Qualifications You use the Qualifications and Requirements component to define, structure, and Requirements and manage your qualifications catalog. Based on this qualifications catalog, the organizational structure (and, if required, other information) you can cre­ ate You can then use these profiles to manage, evaluate, and compare profiles. profiles object characteristics. The can be used to show both the requirements qualifications and career goals (preferences) of a person. of a position and the profile matchups to find out how suitable certain persons are You can also run for a certain position in your organization, for example. If any qualification defi- cits arise, you can plan further training measures. 5.3.2.4 Succession Management Business Background Succession Management enables you to develop and manage employee benefit plans. HR staff can improve communication of information to and from benefits providers and review related reports. Managers and SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 499

500 employees can access and change their benefits selections through self-service to better serve their own staff can maintain legal compliance at lower cost on a single record system integrated with self- needs. HR reporting services and payroll processes. Integrated processes support all HR administrative tasks and flexible and analytics provide a fuller view and insight into benefits processes. Key Features The following table explains the key features available: Key Feature Use This function enables you to create and change careers. A career is a collection Careers of jobs or positions, and describes a generally applicable career path within the organizational structure. By careers, you can portray the principal per­ defining sonnel development paths within your company. Career Planning This function enables you to prepare and work your way through career plan­ ning scenarios. A career planning scenario takes an employee’s personality, skills and abilities and determines the positions this employee should occupy in the course of his or her future career, and the training measures required to obtain the additional qualifications needed for this. A career planning scenario anticipates how an employee’s career will develop. Succession Planning Scenarios This function enables you to prepare and work your way through succession planning scenarios. Succession planning sets out to ensure that there is a con­ tinuous supply of qualified personnel. Organizational Basis of Succession Plan­ You use this function to make organizational arrangements for Succession ning Planning. You can use this function to edit the job architecture for Talent Management, Job Architecture for Talent Management meaning the job catalog with functional areas, job families, jobs, and positions. In particular, the job architecture forms the basis for Succession Planning. Automatic Limiting of the Validity for Suc­ The system uses this function to automatically delimit or delete successor as­ signments and talent assignments for employees (see Delimit) if one of the fol­ cessor Assignments and Talent Assign­ ments lowing situations arises: ● An employee previously assigned to a position as a potential successor becomes the new holder of this position. ● A talent's employment status changes from Active to Left Company, Inac­ tive, or Pensioner. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 500 PUBLIC

501 5.3.3 Time and Attendance Management Time Capture 5.3.3.1 Business Background and efficiently. It provides you with a Time Capture enables you to record and manage time data effectively effective business concept and related processes for manual and automatic recording of comprehensive and personnel times. Time recording allows you to enter employee time data for working time, leave, business trips, different and substitutions using methods. This data can be entered as clock times or in hours and can contain account assignment for other SAP applications. specifications Key Features The following table explains the key features available: Key Feature Use Maintaining and Displaying Time Data Us­ You can update or display time data using the Time data menu. This option al­ ing The Time Data Menu lows you to access all Time Management infotypes in the Personnel Time Man­ agement, and then display or maintain them. Maintaining and Displaying Time Data Us­ You can maintain or display data using either a weekly, monthly, or annual cal­ endar. Using calendars facilitates the fast entry of data, and also allows you to ing Calendars view the data record history for a selected period. Fast Entry of Data The fast entry of time management data enables you to maintain several sub­ type records for an employee within the same time infotype, as well as main­ tain one infotype for several employees. The fast entry function merely takes required entries into account. This allows you to record essential time manage­ ment data more quickly and efficiently. Cross-Application Time Sheet You can use the Cross-Application Time Sheet for recording working times and tasks. It enables you to control all business processes concerning your employ­ ees’ tasks – from paying the employees, through monitoring the progress of a project, to creating invoices. Personnel Time Events The Personnel Time Events component enables you to connect external time recording systems to SAP Time Management. If your employees enter the start and end of their working times on time recording terminals, you can use this component to process the resulting time events in Time Management. You can also process employee expenditure data resulting from purchases at company cafeterias and service stations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 501

502 Key Feature Use This component controls the transfer of confirmations Plant Data Collection to Time Management from the following application components: Production Planning and Process Control ● Plant Maintenance and Customer Service ● ● Project System You can log in time spent on Timesheet tasks (projects or non-project related) different using this feature. Time Calculation 5.3.3.2 Business Background Time Calculation enables you to and manage time elements for payroll schedules, and shifts. Use a define time-evaluation component to generate a variety of payroll-related time codes to determine employee pay. Decision makers can use time management analytics to get other targeted workforce information. You can get this solution designed for global processes, as well as localized processes for more than 50 countries, in a single platform. Key Features The following table explains the key features available: Use Key Feature You store working and break times for groups of employees in this component. Work Schedule This then allows to you to structure working times for your enterprise. You can define flextime models or rotating shifts for particular or­ work schedules with ganizational units. You can also set up the legislative regulations, collective agreements, and internal company policies that stipulate employee working time in your system. Shift Planning This application component allows you to determine and schedule the appro­ priate number and type of human resources required for your enterprise to carry out business requirements. Integrating Time Management with Other You can use the Integrating Time Management with Other Components to re­ Components cord time data that can also be used and processed by other components. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 502 PUBLIC

503 Key Feature Use It is a user interface incorporating the tasks involved in administrating em­ Time Manager’s Workplace de­ ployee time and labor and time evaluation messages. It was specifically signed to meet the needs of time administrators in decentralized departments. Time Management for Concurrent Em­ If you have employees who have one or more personnel assignments with one or more employers, you can use this component to process your employees’ ployment time-management data. You can use this component to evaluate employees’ personnel times. It proc­ Time Evaluation Without Clock Times esses time data that has been imported to the SAP system from time record­ ing subsystems and data that has been recorded online. You can use this component to evaluate the time data of employees who enter only exceptions to the work schedule and of employees who record all times relevant to their working time (actual times). Processing in this component as­ sumes that times are expressed as the duration of work, and not the start and end times of work times and employee absences. All recorded times are recog­ nized as working time. Working time provisions to be checked, such as calcula­ tion of overtime, relate to employees’ daily or weekly work performed. Time Evaluation With Clock Times The Time Evaluation With Clock Times component is used to evaluate employ­ ees’ personnel times. It processes time data that has been imported to the SAP system from time recording subsystems and data that has been recorded online. You use this component to evaluate employees’ time data where all times that are relevant to the working time (actual times) are recorded. Processing in this component assumes that times are expressed as start and end times of work performed or of absences. The main function of the component is to classify the actual times by comparing them with the planned working time data stipu­ lated in the daily work schedule (planned working time start and end, core specified working time times, break times). Working times that exceed the frame are recognized, and are generated as overtime if attendance approvals exist for the relevant employees. Time Data Processing in Time Evaluation You can use this function to customize the processing steps of time evaluation to suit your requirements. You can use this to evaluate time data on a daily basis. Day Processing of Time Data in Time Eval­ uation Integration with Payroll You can use this component to provide the Payroll component or a third-party payroll system with information on bonuses and the valuation of hourly and overtime wages. This information is required for the calculation of the gross wage. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 503

504 Key Feature Use You can use the time statement form to present the results determined by time Time Statement Form evaluation to your employees in a clear layout. You do so by using the time statement form to create a template that is used by the system to create your employees' time statements. Message Processing in the Time Manag­ A redesigned message processing function has been integrated into the Time er’s Workplace Manager’s Workplace. It enables time data administrators to use the same user interfaces for processing time evaluation messages as for maintaining time data. Time Management Pool The Time Management pool is a comprehensive instrument that can be used to check, correct, and display evaluated time data. Time data administrators can perform all their most important administrative tasks, such as processing time evaluation messages, from one central screen. Incentive Wages This component is implemented for performance-oriented remuneration. The following forms of remuneration are covered: ● Time wages ● Premium wages ● Piecework wages You can implement both individual incentive wages and group incentive wages. 5.3.3.3 Absence Management Business Background Absence Management enables you to define and manage working calendars and vacation allowances for global and localized processes for more than 50 countries in one platform. Use multiple interfaces: employee self- services, manager self-services, and mobile access. Employees can enter absences, attendance, and breaks. Managers can approve attendances and absences. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 504

505 Key Features The following table explains the key features available: Use Key Feature You can use this component to create the basic time information for the evalu­ Absences/Attendances ation and accounting of your employees’ working times. You can also record working times or absence times for individual employees. Quotas You can use this component to set up and administrate time accounts, which concern employees’ absence entitlements and attendance and overtime ap­ provals. 5.4 Manufacturing 5.4.1 Quality Management 5.4.1.1 Quality Improvement Business Background To improve your processes and products you can analyze different quality key figures. Key Features SAP S/4HANA Compatibility Packs: The following feature is available, but it is part of the Key Feature Use Quality key figures The quality management information system allows you to analyze quality key figures, for example, concerning quality inspections or notifications. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 505

506 5.4.2 Production Planning Sales and Operations Planning 5.4.2.1 Business Background forecasting and planning tool with which sales, production, Sales and Operations Planning (SOP) is a flexible and other supply chain targets can be set on the basis of historical, existing, and estimated future data. Rough- cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets. You can use SOP to streamline and consolidate your company’s sales and production operations. SOP is particularly suitable for long- and medium-term planning. Key Features The following features are available: Key Feature Use Standard SOP Enables you to plan at any level of aggregation, for example, high-level planning of plan­ finished products. Not ning hierarchies and/or product groups or detailed planning of only can you create sales and production plans, you can also plan other items of infor­ mation such as key figures from an information structure. Moreover, you can also per­ form resource leveling for work center capacities, materials, production resources/ tools, and costs to ensure that resources are sufficient to meet targets. You plan using an easy-to-use planning table such as a spreadsheet, in which you can define macros and events and compare actual data with planned data. Standard SOP preconfigured with the system. comes largely Offers multiple options for customized configuration: You can plan on any organiza­ Flexible Planning tional level, and also define the content and the layout of the planning screens. You can process your planning data from the standpoint of almost any organizational unit (for example, sales organization, material group, production plant, product group, material) and even from the standpoint of the entire enterprise. The planning table in which you work resembles a spreadsheet. You have enormous scope to track previous planning data, anticipate market demand, run analyses, and perform what-if simulations. A series of mass processing functions automate the plan­ ning of large volumes of data. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 506 PUBLIC

507 5.4.2.2 Material Requirements Planning Business Background Material requirements planning enables you to ensure the availability of materials and perform basic production planning. It is typically performed by the MRP controller who monitors the material shortage situation and solves any issues on time. Another main task is to ensure that sufficient supplies have been planned to cover requirements — whether from sales orders, stock transfer orders, or from production, for example. The goal is to ensure that both customer and production demand are available on time and to avoid any disruptions due to missing parts. Key Features The following features are available: Key Feature Use Execute classic MRP If you have implemented BAdIs in classic MRP, you can continue to use these BAdIs in the classic MRP run in SAP S/4HANA . You can use MRP lists to check the classic MRP result. MRP lists are used to find mate­ rials with issues. These lists are snapshots of the material supply and demand situation at the time of the last classic MRP run. Demand forecasting You can estimate future material demand based on historic material consumption data. You can then use the material demand forecast to create planned independent require­ ments which are planned in the planning run and result in purchase requisitions or in planned orders. You can also use the demand forecast to compute safety stocks and reorder points. Forecast-based planning You can perform forecast-based planning which is based on material consumption. As for reorder point planning, forecast-based planning operates using historical values and forecast values and future requirements are determined using the integrated forecast­ ing program. However, in contrast to reorder point planning, these values then form the basis of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 507

508 Key Feature Use You can adjust the capacity of a line hierarchy to a specific Line balancing and sequencing model mix using line balanc­ ing. The capacity of the line hierarchy is determined by the number of takts and the number of individual capacities in the line segments. The model mix is determined by several materials, the rate of the materials and the rate routings, according to which the materials are produced. You can adjust the capacity by changing the number of takts (processing stations) and the individual capacities (people) and, if applicable, the as­ signment of the operations to the line segments. Here, the system automatically ad­ justs the rate routings in the background. You carry out a line balance if you use se­ quencing and if you produce several materials or material variants on a production line at one time. In sequencing, the system determines the production sequence of planned orders on the assembly lines. You can use the graphical planning table (also known as the graphical planning board or Graphical planning table Gantt chart) for capacity load leveling and sequence planning. You can display the data from the various evaluation lists in the capacity evaluation us­ ing the SAP presentation graphic. You can also use the SAP Gantt chart Operation/ Work Center to obtain an overview of the dates of operations at a work center. You can define the settings for the layout of data for the various graphics in the graph­ ics profile. You specify whether the system displays the data for the standard overview as blocks, bars or lines. 5.4.3 Manufacturing Execution for Discrete Industries Production Execution 5.4.3.1 Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: ● Material staging before production starts. ● Reporting goods withdrawals. ● Processing time tickets for a production order or a process order. ● Entering the goods receipt information for the order on completion of the product. ● Executing planned manual production steps. ● Documenting and logging production information. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 508 PUBLIC

509 Key Features The following features are available: Use Key Feature Digital signature You can use this tool to sign and approve digital data. The digital signature en­ sures that you can sign a digital document unambiguously and your name is documented together with the signed document, the date, and the time. You can use the digital signature to approve documents or objects in all applica­ tions that are set up for its use. You can specify whether you want to execute the signature with a system sig­ nature (with user and password) or with an additional security product. The system distinguishes between the following signature methods: ● System signature with authorization by user ID and password. In this case, you do not require an external security product. You identify your­ self with your user ID and password, just as when logging on to a system. ● User signature with verification. In this case, you do require an external security product. You provide the digital signature using your own private key and the signature provided is checked immediately to verify its au­ thenticity. ● User signature without verification. Here, you do require an external se­ curity product. You can only use this signature method for test purposes and not in a production system. You provide your signature as described verification is deacti­ in the previous method, however, the automatic vated. Electronic records You can use electronic records to evaluate the logs that can be written for changes in database table content. These logs are stored in database table DBTABLOG . You can also display change documents and logs of long text changes. Electronic records are part of the SAP functionality that supports le­ gal compliance in the regulated environment (for example, in the production of active ingredients and pharmaceuticals). You can use the functionality of electronic batch record (EBR) if you work in a Electronic batch record regulated environment (production of active ingredients, pharmaceuticals, and so on). The content of the EBR is stored in optical archives (using SAP Ar­ chiveLink technology). EBR content is revisited during external audits. The content has to be available for 10 years on average. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 509

510 Key Feature Use identification/reconciliation You can use material identification to identify and verify the ingredients at the Material (proc­ ess industry) production line. You can use material reconciliation to analyze and verify ingredients at the end of a production process. It enables you to compare the material quantity that flowed in with the planned quantity or the quantity of the material pro­ actually duced. You can also display other information regarding the ingredients using the movement types. Reconciliation of the ingredients can ensure that there are no discrepancies outside of the valid range in the relationship between the input and yield. Process messages When a manufacturing order is carried out, actual process data is needed that documents the process and is available for further processing in the system and in external function modules such as process control systems. You can use this feature to send actual data from process control to predefined mes­ sage destinations. Depending on the destination type, various business trans­ actions are triggered in this way in the SAP S/4HANA system or in an external system and data is reported. Control recipes (process industry) Using control recipes/instructions, you transfer control data from the manu­ facturing order to process control. The information contained in a control rec­ Control instructions (discrete manufactur­ ipe/instruction and the destination to which it is sent are user-defined. ing) Process operator cockpits (process indus­ You can use this feature to link various elements of your company's process try) control systems as well as to monitor production execution processes. Proc­ ess operator cockpits provide a single view to the operator. They can be con­ figured for specific tasks or work groups. In one interactive screen, you can in­ clude elements such as a toolbar with shortcuts to various operations, a proc­ ess instruction sheet, and a view of a process control system. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 510 PUBLIC

511 Key Feature Use You can use process instruction sheets (PI sheets) to exchange data between Process instruction sheets (process indus­ try) the partially or completely manually operated production level and the sys­ tem. In manually operated production lines, this usually involves a process op­ erator who uses the PI sheet to transfer production-relevant actual data to the system and receives data from the system. You can describe the entire production process of a product or only part of it in a PI sheet. If the PI sheet only represents part of the production process, you usually need several PI sheets to manufacture a product. You can, for example, define control and picking information for the individual production steps in the PI sheets. The PI sheet is used to inform the process operator about the individual production steps that need to be performed. The process operator can interactively maintain the PI sheet according to the phase sequence. In addition to control information, the PI sheet can contain input and fields pushbuttons. You can, for example, fields to be filled by the process op­ define erator with the quantity of material components consumed for a phase. The material withdrawals must then be posted as goods issues in inventory man­ agement. You can use process messages to carry out this function automati­ cally. Work instructions (discrete manufactur­ You can use electronic work instructions that represent the result of control in­ structions which are sent to your machine operator. The content is displayed ing) as text on the screen. The instructions describe how and in which sequence a product is manufactured and can be processed on the screen. You can enter, report, or complete data interactively. Work instructions thus facili­ confirm, tate communication between the system and your machine operator on pro­ duction lines that are operated manually (either fully or partially). Production campaign (process industry) You can group planned orders and process orders to produce a certain amount of a material over a certain period of time. This is done in an uninter­ rupted sequence on one production line. The aims of production campaigns are to: ● Reduce costs achieved by grouping sequences of identical production charges and thus carrying out more efficient setup and clean-out proc­ esses which can be very costly. ● Increase product quality in cases where the desired quality level is ach­ ieved gradually in the production process as opposed to immediately from the first batch. ● Achieve more exact settlement resulting from clear distribution of cam­ paign fixed costs (setup, clean-out, and tear down costs) to the orders in­ volved. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 511

512 5.4.3.2 Manufacturing Analytics Business Background The Shop Floor Information System is part of the Logistics Information System that you can use to analyze manufacturing data. Key Features The following standard analyses are available in the Shop Floor Information System: Key Feature Use Work center analysis You can use the work center standard analysis to evaluate work center data. The infor­ mation structure S024 provides the data for the analysis. Operation analysis In the standard operation analysis you can evaluate the data from the operation. The information structure S022 provides the data for the analysis. Material analysis The material standard analysis allows you to evaluate the data for material. The infor­ mation structure S023 provides the data for the analysis. Production order analysis In this analysis you can evaluate the data for production orders. The information struc­ ture S021 provides the data for the analysis. Material usage analysis In the material usage analysis, you can analyze data from the production orders, run schedule headers, and process orders. You can use the material usage analysis to find information on the total number of components used to produce a material, the indi­ vidual components that were by the material usage, the planned and actual re­ affected quirements quantity, for example. The information structure S026 provides the data for the analysis. The run schedule header analysis enables you to evaluate the key figures from the run Run schedule header analysis schedule header. The information structure S025 provides the data for the analysis. Product costs analysis Data from production orders, run schedule headers, and process orders can be evalu­ ated in the product cost analysis. Both planned and actual costs for production and process orders are updated to product costs. The planned costs are updated at the ex­ act time of release, the actual costs are updated at the point of completion confirma- tions and goods issues. The information structure S027 provides the data for the analy­ sis. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 512 PUBLIC

513 Key Feature Use You can use this analysis to evaluate the data from repetitive planning. Here, the num­ Reporting point statistics analysis ber of units for so-called reporting points (comparable with events in the production or­ der) are determined and updated. The data required for the analysis is provided by the quantities and the confirmed confirmed scrap for the reporting point, which are up­ dated in information structure S028. Kanban analysis The Kanban standard analysis is based on the data from the Kanban component that is updated to the information structure S029. You can display exceptions that you have defined using the Early Warning System . The Exception analysis exception analysis acts as a filter. That is, only the exceptional situations are displayed providing you with timely system support in the detection and correction of undesirable situations. 5.4.4 Manufacturing Execution for Process Industries Production Execution 5.4.4.1 Business Background This capability enables you to make all the necessary preparations required for production, to coordinate the exchange of data relevant to production, and to document production progress. It is typically performed by the production operator and includes the following tasks: ● Material staging before production starts. ● Reporting goods withdrawals. ● Processing time tickets for a production order or a process order. ● Entering the goods receipt information for the order on completion of the product. ● Executing planned manual production steps. ● Documenting and logging production information. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 513

514 Key Features The following features are available: Use Key Feature Digital signature You can use this tool to sign and approve digital data. The digital signature en­ sures that you can sign a digital document unambiguously and your name is documented together with the signed document, the date, and the time. You can use the digital signature to approve documents or objects in all applica­ tions that are set up for its use. You can specify whether you want to execute the signature with a system sig­ nature (with user and password) or with an additional security product. The system distinguishes between the following signature methods: ● System signature with authorization by user ID and password. In this case, you do not require an external security product. You identify your­ self with your user ID and password, just as when logging on to a system. ● User signature with verification. In this case, you do require an external security product. You provide the digital signature using your own private key and the signature provided is checked immediately to verify its au­ thenticity. ● User signature without verification. Here, you do require an external se­ curity product. You can only use this signature method for test purposes and not in a production system. You provide your signature as described verification is deacti­ in the previous method, however, the automatic vated. Electronic records You can use electronic records to evaluate the logs that can be written for changes in database table content. These logs are stored in database table DBTABLOG . You can also display change documents and logs of long text changes. Electronic records are part of the SAP functionality that supports le­ gal compliance in the regulated environment (for example, in the production of active ingredients and pharmaceuticals). You can use the functionality of electronic batch record (EBR) if you work in a Electronic batch record regulated environment (production of active ingredients, pharmaceuticals, and so on). The content of the EBR is stored in optical archives (using SAP Ar­ chiveLink technology). EBR content is revisited during external audits. The content has to be available for 10 years on average. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 514 PUBLIC

515 Key Feature Use identification/reconciliation You can use material identification to identify and verify the ingredients at the Material (proc­ ess industry) production line. You can use material reconciliation to analyze and verify ingredients at the end of a production process. It enables you to compare the material quantity that flowed in with the planned quantity or the quantity of the material pro­ actually duced. You can also display other information regarding the ingredients using the movement types. Reconciliation of the ingredients can ensure that there are no discrepancies outside of the valid range in the relationship between the input and yield. Process messages When a manufacturing order is carried out, actual process data is needed that documents the process and is available for further processing in the system and in external function modules such as process control systems. You can use this feature to send actual data from process control to predefined mes­ sage destinations. Depending on the destination type, various business trans­ actions are triggered in this way in the SAP S/4HANA system or in an external system and data is reported. Control recipes (process industry) Using control recipes/instructions, you transfer control data from the manu­ facturing order to process control. The information contained in a control rec­ Control instructions (discrete manufactur­ ipe/instruction and the destination to which it is sent are user-defined. ing) Process operator cockpits (process indus­ You can use this feature to link various elements of your company's process try) control systems as well as to monitor production execution processes. Proc­ ess operator cockpits provide a single view to the operator. They can be con­ figured for specific tasks or work groups. In one interactive screen, you can in­ clude elements such as a toolbar with shortcuts to various operations, a proc­ ess instruction sheet, and a view of a process control system. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 515

516 Key Feature Use You can use process instruction sheets (PI sheets) to exchange data between Process instruction sheets (process indus­ try) the partially or completely manually operated production level and the sys­ tem. In manually operated production lines, this usually involves a process op­ erator who uses the PI sheet to transfer production-relevant actual data to the system and receives data from the system. You can describe the entire production process of a product or only part of it in a PI sheet. If the PI sheet only represents part of the production process, you usually need several PI sheets to manufacture a product. You can, for example, define control and picking information for the individual production steps in the PI sheets. The PI sheet is used to inform the process operator about the individual production steps that need to be performed. The process operator can interactively maintain the PI sheet according to the phase sequence. In addition to control information, the PI sheet can contain input and fields pushbuttons. You can, for example, fields to be filled by the process op­ define erator with the quantity of material components consumed for a phase. The material withdrawals must then be posted as goods issues in inventory man­ agement. You can use process messages to carry out this function automati­ cally. Work instructions (discrete manufactur­ You can use electronic work instructions that represent the result of control in­ structions which are sent to your machine operator. The content is displayed ing) as text on the screen. The instructions describe how and in which sequence a product is manufactured and can be processed on the screen. You can enter, report, or complete data interactively. Work instructions thus facili­ confirm, tate communication between the system and your machine operator on pro­ duction lines that are operated manually (either fully or partially). Production campaign (process industry) You can group planned orders and process orders to produce a certain amount of a material over a certain period of time. This is done in an uninter­ rupted sequence on one production line. The aims of production campaigns are to: ● Reduce costs achieved by grouping sequences of identical production charges and thus carrying out more efficient setup and clean-out proc­ esses which can be very costly. ● Increase product quality in cases where the desired quality level is ach­ ieved gradually in the production process as opposed to immediately from the first batch. ● Achieve more exact settlement resulting from clear distribution of cam­ paign fixed costs (setup, clean-out, and tear down costs) to the orders in­ volved. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 516 PUBLIC

517 5.4.4.2 Manufacturing Analytics Business Background The Shop Floor Information System is part of the Logistics Information System that you can use to analyze manufacturing data. Key Features The following standard analyses are available in the Shop Floor Information System: Key Feature Use Work center analysis You can use the work center standard analysis to evaluate work center data. The infor­ mation structure S024 provides the data for the analysis. Operation analysis In the standard operation analysis you can evaluate the data from the operation. The information structure S022 provides the data for the analysis. Material analysis The material standard analysis allows you to evaluate the data for material. The infor­ mation structure S023 provides the data for the analysis. Production order analysis In this analysis you can evaluate the data for production orders. The information struc­ ture S021 provides the data for the analysis. Material usage analysis In the material usage analysis, you can analyze data from the production orders, run schedule headers, and process orders. You can use the material usage analysis to find information on the total number of components used to produce a material, the indi­ vidual components that were by the material usage, the planned and actual re­ affected quirements quantity, for example. The information structure S026 provides the data for the analysis. The run schedule header analysis enables you to evaluate the key figures from the run Run schedule header analysis schedule header. The information structure S025 provides the data for the analysis. Product costs analysis Data from production orders, run schedule headers, and process orders can be evalu­ ated in the product cost analysis. Both planned and actual costs for production and process orders are updated to product costs. The planned costs are updated at the ex­ act time of release, the actual costs are updated at the point of completion confirma- tions and goods issues. The information structure S027 provides the data for the analy­ sis. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 517

518 Key Feature Use You can use this analysis to evaluate the data from repetitive planning. Here, the num­ Reporting point statistics analysis ber of units for so-called reporting points (comparable with events in the production or­ der) are determined and updated. The data required for the analysis is provided by the quantities and the confirmed confirmed scrap for the reporting point, which are up­ dated in information structure S028. Kanban analysis The Kanban standard analysis is based on the data from the Kanban component that is updated to the information structure S029. Exception analysis You can display exceptions that you have defined using the Early Warning System . The exception analysis acts as a That is, only the exceptional situations are displayed filter. providing you with timely system support in the detection and correction of undesirable situations. 5.5 R&D / Engineering 5.5.1 Enterprise Portfolio and Project Management 5.5.1.1 Project Logistics and Financial Control Business Background This function provides special features that help in the logistics execution and financial aspects of a project. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 518

519 Key Features The following table explains the key features available: Use Key Feature You can maintain the structures for your project. A clear project structure is Special Maintenance Functions and Project Planning Board the foundation of successful project planning, monitoring, and control. There are several functions available for creating and editing WBS elements and net­ works. Special maintenance transactions ● ● Network Structure Graphic In the network structure graphic you have the functionality for editing ex­ isting networks, such as inserting new activities or creating new relation­ ships. ● Hierarchy Graphic The hierarchy graphic acts as a quick and easy way to create and edit WBS elements. You can change the project hierarchy by creating or insert­ ing WBS elements, or move these around in the hierarchy. ● Project Planning Board The project planning board allows integrated processing of your project, giving you a graphic overview of the project objects. You can create, edit and evaluate the data for a project. The Gantt chart is the basis of the project planning board. The project planning board consists of a table area and a graphic area. It displays the hierarchical structure of the project and the corresponding dates. Special Date Planning Functions In project scheduling you can schedule the project with all assigned activi­ ● ties, as in WBS scheduling. Additionally, you can decide whether just net­ works are scheduled or whether service and maintenance orders are also scheduled. ● You enter dates in the work breakdown structures and individual networks. You can check and change them in all stages of a project. Scheduling de­ termines the earliest and latest start and finish dates for carrying out ac­ tivities in the network and calculates the required capacity requirements as well as the slack time or "floats". ● You can change basic and forecast dates. Basic dates are the dates that have a binding character for time scheduling and for other related areas such as capacity planning. Forecast dates are dates that you expect based on a more detailed planning or on changes during the course of the project. You can enter basic and forecast dates for WBS elements and ac­ tivities. In networks, you can also forecast values for the work as well as for the dates. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 519

520 Key Feature Use When you are planning complex projects, it is often necessary to simulate and Simulation Versions the operative project. To do so, you save changes to a project, without affecting use simulation versions that can be changed, costed and scheduled. You can create a new simulation versions for a project by either transferring data from an existing operative project or completely independently, for in­ stance in the quotation phase of a project. Project Texts You use this to maintain and display project texts for WBS elements and net­ work activities. You can edit project texts either in the Project text catalog or during project maintenance. ● Unlike machines and fixed assets, production resources and tools (PRTs) Production Resources and Tools are movable operating resources that are required to perform an activity and can be used repeatedly. For example, PRTs include documents, engi­ fixtures, neering drawings, jigs and and measurement instruments. ● You can maintain PRTs for network activities using the Special Mainte­ nance transactions for networks. You use this to distribute work in internally processed activities of a project to Workforce Planning personnel resources according to periods. The personnel resources that you can assign to activities are persons , positions , and organizational units in hu­ man resources (HR). You can carry out workforce planning with a project view or a work center view, depending on your responsibilities. In reporting you can analyze workforce planning from project, work center, and personnel resource views. Claim Management When you detect a variance from your project plan, you create a claim in Project System. The Project System supports Claim Management using a noti­ fication claim . You use these notifications to document variances type called from your project plan, name the person responsible, and initiate follow-up ac­ tivities. The following are among the points you enter in the claim: Cause of the variance ● ● Person or group responsible ● Costs arising from the variance ● Actions and tasks to be initiated because of the variance The integration of unit costing with the claim and the link to workflow functions ensure Claim Management execution. efficient Progress Tracking ● You use this to monitor the progress of material components in PS based on events and dates. ● By tracking events that have been defined in Customizing for Progress Tracking or in the progress tracking function itself, the user gains im­ proved control over the progress of network components. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 520 PUBLIC

521 Key Feature Use ● Special project reporting functions This allows you to execute reports for personnel cost planning. You can use this to obtain an overview of how your projects are progressing. You can compare planned and actual costs, planned and actual work, and ba­ sic start and finish dates for the projects selected. ● You can combine a number of projects with similar characteristics, effecting more efficient thereby project control. This enables you to carry out analyses that allow for clearer costs at higher level, such as project manager level. Structure Information System The Information System gives you an overview of single or multiple objects you select for a specific project, part of a project or across projects. Project-specific archiving tools You use this these tools to archive project structures. You can archive and de­ lete operative objects in PS such as work breakdown structures and networks. Financial planning and control for project- You can agree on a transfer price for the rendering of a particular service ● purposes specific between two WBS elements, display, and change the agreement. You can calculate the sales price for a customer inquiry based on project ● planned costs and save your results in a document. You can also create a quotation, based on a sales pricing. ● Easy cost planning enables you to quickly calculate planned costs for WBS elements. This is useful while carrying out project processing on cost con­ trolling and preliminary costing for complex projects. ● You can use the forecast workbench to create cost forecasts manually. You can save different versions of the forecasts and then compare the various versions. Project-oriented procurement This is used to consolidate information from the procurement process from a variety of applications that can be configured by the user. You can process information from the procurement process for objects in the Project System, and execute individual procurement functions. 5.5.2 Product Safety and Stewardship 5.5.2.1 Product Marketability and Chemical Compliance SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 521

522 5.5.2.1.1 Manage Product Compliance for Discrete Industries Business Background Product Compliance for Discrete Industries to manage environmental product compliance across your Use organization. These features support you to ensure product marketability, brand protection, and to reduce compliance costs. They enable you to manage regulatory requirements based on substance lists and to manage compliance assessments of your product portfolio. Additionally, they support compliance collaboration processes with suppliers and the ability to embed compliance controls into business processes, such as engineering, manufacturing, purchasing and sales. Key Features The following table explains the key features available: Key Features Use Manage regulatory list revisions You can manage substance-related regulatory list revisions based on legislation, industry standards, and customer or corporate-specific requirements. These regulatory list revi­ sions are the basis for the compliance requirements that your products have to meet. You can prepare, create and use new regulatory list revisions, as well as updates of existing regulatory list revisions, such as EU REACH-SVHC or EU RoHS. Manage compliance assessment processes The system supports you with compliance assessment proc­ esses for products, components and basic materials. You can start or request the initial assessment of a product man­ ually or automatically. You can assign and determine the rel­ evant compliance requirements for your product. Based on your assignments, the system carries out compliance checks thus supporting you to fulfill compliance require­ ments relevant for your products. When finalizing a compli­ ance assessment, documents can be generated by the sys­ tem to answer customer requests or for internal use. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs 522 PUBLIC

523 Key Features Use The system supports you with compliance assessment proc­ Embed controls into key business processes esses for products, components and basic materials. You can start or request the initial assessment of a product man­ ually or automatically. You can assign and determine the rel­ evant compliance requirements for your product. Based on your assignments, the system carries out compliance checks thus supporting you to fulfill compliance require­ finalizing a compli­ ments relevant for your products. When ance assessment, documents can be generated by the sys­ tem to answer customer requests or for internal use. If a compliance relevant change occurs, such as a BOM Stay compliant within change management change or a change in the material supplier relation, the sys­ tem supports you to stay compliant by carrying out compli­ ance checks. Monitor and explore compliance The system supports you to identify compliance assess­ ments that are in process for your products. Additionally, you can explore the compliance status of your products and components. 5.5.2.1.2 Substance Volume Tracking Business Background This process helps you to track and record the quantities of regulated substances in your company that are purchased, imported, produced, sold, or exported. If a limit value specified in regulations is reached or exceeded, the system issues a warning. You can use the data for required reporting to authorities. Key Features The following key features are supported: Key Features Use System preparation for substance volume tracking You define materials that are relevant for substance volume tracking. You enter one or more quantity limits for sustainability data, and define the threshold that triggers a system warning. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 523

524 Key Features Use You display the current totaled quantities of the tracked sub­ Daily monitoring of tracked substances stances. You receive information about which substances are soon to reach a quantity limit, or, about those which have already ex­ ceeded their limit. Integration of substance volume tracking into business proc­ Substance volume tracking is integrated into and visible in esses other business processes, such as purchasing, manufactur­ ing and sales. Report definition for substance volume tracking You define layouts for your reports for substance volume tracking. You specify how the system collects data. You define the steps that need to be carried out for releasing and sending your reports. You also if versioning for your reports is required, so define that changes can only be made within a new version. Report creation for substance volume tracking You can create reports for substance volume tracking in sev­ eral languages by using the concept of phrases. When a monitoring period, such as a calendar year, has ex­ pired and all data is available, you can trigger report genera­ tion. Report publishing for substance volume tracking Once reports have been released, you can send the report to relevant authorities. 5.5.2.2 Dangerous Goods Management Business Background This process enables you to manage all data, which is needed to classify and process dangerous goods in the logistics chain according to dangerous goods regulations. SAP S/4HANA 1809 - Feature Scope Description SAP S/4HANA Compatibility Packs PUBLIC 524

525 Key Features The following key features are supported: Use Key Features classification You classify products and materials according to dangerous Dangerous goods goods regulations. The classified dangerous goods are the basis for dangerous goods processing and document gener­ ation in the logistics chain. You maintain supplementary dangerous goods relevant data; Dangerous goods processing this is then provided together with classification data for document generation. Integration of dangerous goods processing within business Dangerous goods processing, for example checks, are inte­ grated into and visible in other business processes, such as processes sales order and delivery. Checks are possible, for example, on modes of transport and mixed loading, as well as routing management. Document template definition You define layouts. You specify how the system collects data. 5.5.2.3 Safety Data Sheet and Label Management 5.5.2.3.1 Safety Data Sheet Management Business Background