The document provides details on S/4 HANA simplification made in the areas of Materials Management , Extended WM , Sourcing & Procurement

1. Simplifications in MM/IM Data Model and IM
Valuation Data Model
• Material document data to be stored in a new data table MATDOC.It will contain both the header & item
level table along with other attributes , as against the traditional ERP where data was stored in two different
tables MKPF&MSEG.
• Not separate aggregate tables for actual stocks. Stocks will be calculated real-time from the MATDOC table
• Significant decrease of aggregate and history tables (11 Inventory tables for different stock types+13 history
tables for different stock types =24).
• Redirect feature in SAP S/4 HANA. This will help to guide redundant table to a new table. All custom coding
will continue to work in SAP S/4 HANA

2. IM Valuation Data Model Simplification
• In traditional ERP , valuation tables contain both transactional as well as material master data.
• In SAP S/4 HANA, the transactional data will now be updated in the Material Ledger (ML).
• Activation of Material Ledger will be mandatory in SAP S/4 HANA
• Inventory valuation data will now be stored in the Universal Journal table ACDOCA.
System & Business Benefits:
Increased in system throughput
Faster processing of data , since less tables need to be updated.
Decrease in redundancy of data tables
Decrease in number of table lock problems
Flexibility and scalability in valuation of materials with SAP ML
Real time inventory postings and valuations .Helps in higher inventory accuracy , increase in
turnover and reduced days of items on stocks.
Improved on-time delivery
Single source of inventory values in one systems

3. SAP Fiori Apps available in IM Area
• SAP Fiori provides 3 THREE types of apps –
Type of App Purpose In IM Area
Transactional Apps Allows to execute specific
tasks and transaction
activities
Post Goods Receipts
Transfer postings
Manage stock by posting
initial GR or Scrapping
Analytical Apps To provide Real-time
insights
KPI Information on specific
parts of a process
Analytical app available for
stock overview and
material document
overview
Fact Sheet Apps To provide quick
navigation to other related
documents & follow-on
documents
Goods Receipts
Goods Issue
Material

4. SAP EWM Embedded in S/4 HANA
• In version 1511, decentralized EWM option is available.
• Version 1610, allows for embedded EWM to SAP S/4 HANA. Additionally , SAP EWM can be deployed within
the core of SAP S/4 HANA.
• Benefits :
One System (Reduced database footprint, reduced TCO,increases system throughput, reduced system
complexity)
With EWM embedded in SAP S/4 HANA ,SAP Fiori Launchpad is enabled for warehouse users.

5. SAP EWM Embedded in S/4 HANA
Object Traditional ERP & EWM EWM embedded In S/4 HANA
Business Partners Core Interfaces Setup, Different objects &
number range
Only one business partner for both
vendors & customers. Data will be read
through CDS
Material Master Need to be sent to EWM Data will be read through CDS .40-digit
numbers will be supported
Batches Batch information needs to be sent via
core interface (class,characteristics,Values)
Here information will be available
immediately for usage.
Product Valuation Data & Accounting Data Material Price & Split Valuation sent to
EWM via RFC calls.
System can read directly from the MBEW
table
Dangerous Goods/HAZMAT ALE used to replicate data in SAP EWM System has access to all the standard
tables
Below listed are the prominent changes for each object:

6. SAP EWM Embedded in S/4 HANA
The below changes have been made to optimize processes and reduce data redundancy:
Process Traditional ERP & EWM EWM embedded In S/4 HANA
Expected Goods Receipts(EGR) Is created in order to created
inbound delivery in SAP EWM
Not required to create EGR
Delivery Request & Posting
Change Requests
Used as a reference to create
deliveries in EWM
Completely eliminated ,and
hence functionality linked to
delivery requests will also not
be available
Quality Inspection Engine Used to update the quality
documents & activities in SAP
ERP
Has been completely
eliminated .Inspection rules &
setup not required in the
material master

7. Sourcing & Procurement in SAP S/4 HANA
• SAP S/4 HANA addressed the operational ,tactical and strategic challenges faced in traditional SAP ERP
• Along with the SAP Fiori App, it provides the OLAP And OLTP on the same SAP Fiori Screens.
• Key improvements in Supplier Portfolio Management & Supplier Evaluation areas . A few are listed below :
Questionnaires defined directly for supplier evaluation
Ability to monitor and search the responses.
Raise evaluation requests to appraisers.
• There are number of processes in the area of operational procurement which have been simplified by SAP S/4
HANA
Users can get real-time insights and KPIs immediately . KPIs such as Purchasing & Invoicing spend, Contracts
, Purchase order average delivery time and Supplier Information
Changes have been made to self-service purchase requisitions .Integrated Catalogue functionality is
available
All tasks to search ,find, assign a source of supply and create a purchase order is done in one single screen
A SAP Fiori App will be introduced to convert PR to PO, which was done via ME57
Improvement in creation of manual purchase orders such as prefilled fields in the purchase order based on
material type or supplier.
Different SAP Fiori Apps available are : Create PR, My PR, Confirm Goods Receipts

8. • SAP Ariba Integration can be done via 3 different methods:
Direct Integration of SAP S/4 HANA through standard output management
Through SAP PO
SAP Cloud Integration
• With SAP S/4 HANA , the output management has undergone a major change.
• The output management will now be handled via BRF+(Business Rule Functionality Plus)
• The NAST table will become obsolete.
• BRF+ are set of rules along with other parameters which will help in output management.
• In SAP S/4 HANA , the output will be Adobe Forms only.
• SAP Fiori Apps will be developed for vendor invoice management.
Sourcing & Procurement in SAP S/4 HANA