SAP Material Management

S/4Hana 2023

LOB
Sourcing & Procurement
BIG Picture
 LOB
(Line of Business)
Sourcing & Procurement
 1972
Materials Management (MM)

2000s
mySAP.com with MM and EBP

Procurement Purchase to Pay

Procure to Pay

Ariba
FIORI-based

Field Glass Central

Procurement

Sourcing & Procurement

MM Sourcing & Procurement

MM-PUR Procurement (Purchasing)

MM-PUR-RFQ RFQ/Quotation

MM-PUR-SQ Optimized Purchasing

MM-PUR-OA Outline Agreement

MM-PUR-REQ Self-Serving Requisition

MM-PUR-PO Purchase Order

BNS-INT-ARI Ariba Integration with S/4

MM-SRV External Service

MM-PUR-SVC-SES Lean Service

SLC Supplier Life-Cycle Management

MM-CBP Consumption Based Planning

MM-PUR-VM Conditions & Price Determination

MM-IM Inventory Management

MM-IS Real-Time Reporting & Monitoring

MM-PUR-HUB-*** Central Procurement componentes

MM-FIO-***
 Enterprise
Structure

MM Master Data MM Master Data

(Primary) (Secondary)

Purchase
Scenarios:
Requisition ● Stocks
○ Stocks
○ Subcontract
RFQ/Quotation ○ Consignment
○ 3rd Party
○ Return PO
● Consumables
Purchase Order ○ Non-Stock
(Account
Assignment)
○ Blanket PO
Contract ○ Invoicing Plan
● Services
○ External Service
○ Lean Service
Scheduling ● Pipeline
Agreement
 Facilitate the purchaser
Teams and Team
to transfer workload
members for specific
from one purchasing
task (eg: workflow
group to another.
process step,
Change Pur.Group for
Purchasing Category)

PR, RFQ, PO, Contract

Alternative Material
to the Master
classic with
Release classic
Strategy t-codes as
called well as
Flexible FIORI
Workflow
 tools

Scheduling
Purchase/Invoice Jobs:
Approval of Purchasing
Auto PR to PO
Documents using FIORI
SA Del.Sched.Release
“My Inbox” for Flexible
ERS
Workflow

Invoicing Plan
GR/IR Maintenance etc
● Classic List Display and MM-PURIS
MM-IMIS LIS
● FIORI-based Real-Time
Operational Report and Monitoring
(download to Excel)
● Supplier Evaluation KPIs (via FIORI
App)
● KPI creation tools
● Purchasing Spending Reports
● Contract Leakage and Spending
Source Assignment
● Manage PIR, Manage RFQ,
Manage Source of Supply FIORI
Apps
● Process Purchase Requisitions
● Mass Changes
Purchase Contract Management
● Manage, Monitor Contracts
Product Sourcing
● (Additional License) for Manage
Sourcing, Supplier Award,
Preferred Vendor list etc
 Ariba Network
PR

Integration enables you
● Create, Manage,
Monitor
 to collaborate in SAP
● Catalog
 S/4HANA with your
● F2229 vs suppliers via the Ariba
ME51N/ME52N
 Network.

PR

● Create (Adv)

● Flexible
Workflow

● Monitor

GR

● Confirm GR


PO

● Create, Manage, Service
Monitor
 Procurement
● Supplier Confirmation 
 ● External
● Subcontract Cockpit
 Service
● Flexible Workflow or ● LEAN
Release Strategy
 Service
With Central Procurement, you can integrate
your SAP S/4HANA system (which acts as a
hub system) with other connected systems in
your system landscape. SAP S/4HANA, SAP
S/4HANA Cloud, or SAP ERP act as connected
systems. These integration scenarios serves as
an enabler for shared services, that helps to
control the procurement processes of multiple
connected systems from a single source system
centrally.

The scenario includes the following scope items:

■ Central Requisitioning (1XI)
■ Central Purchase Contracts (2ME)
■ Central Purchasing (2XT)
■ Central Purchasing Analytics (1JI, 2ME,
2XT)
■ Guided Buying for Central Procurement
with SAP Ariba Buying (3EN)
■ Central Procurement with Ariba Sourcing
(4QN)
■ Contract for Central Procurement with
SAP Ariba Contracts (4B0)
■ Central Sourcing (3ZF)
Invoice Processing
● Invoice Verification Online
● Document Parking
● Invoice Verification Background
● Automatic Settlement
● etc.
Invoice Collaboration
● Ariba Network Integration enables you to
collaborate in SAP S/4HANA with your suppliers
via the Ariba Network. You can send electronic
purchase orders to your suppliers, and you can
receive purchase order confirmations, advanced
shipping notifications, and electronic supplier
invoices from the Ariba Network. You exchange
the data using cXML messages.
● SAP Fieldglass provides a cloud-based solution
for managing contingent workforce and for service
procurement. The integration of SAP S/4HANA
with SAP Fieldglass enables an integrated
invoicing process for the procured services.
Gain a portfolio-level
view of your supplier
relationship via:
● Purchasing
Categories
● Manage Activities
and Tasks

Supplier Evaluation
● Classic Vendor Evaluation
● New FIORI Supplier
Evaluation
● New Questionnaire, Audit,
and Score Card
● Manage Purchase
Orders
● Create Purchase Classic Release
Order - Advanced
Strategy vs new
● Change Purchase
Order - Advanced Flexible
● Create Purchase Workflow
Order via Purchase
Requisition

You can extend the Adobe output forms of the following purchasing documents according to
your business needs for different aspects:
■ Goods Issue Individual Slip (with or without Inspection Text)
■ Goods Receipt Label
■ Goods Issue Collective Slip
■ Goods Issue SC Individual Slip with Inspection Text
■ Physical Inventory Count List
■ Goods Receipt for PO Individual Slip (with or without Text)Goods Receipt for
Order Individual Slip
■ Goods Receipt for PO Collective Slip
■ Goods Receipt for PO Email Message
■ Goods Receipt for Order Individual Slip with Inspection Text
■ Goods Issue SC Individual Slip
■ ERS and Invoicing Plan Settlement
■ Invoice Verification Complaint
■ Form Template Purchase Order & Purchase Contract
■ Scheduling Agreement
 For Purchasing (MM-PUR),
Inventory Management
Once POs orders have (MM-IM), and Invoice
been moved to the cold Verification (MM-IV), an end of
are (data aging run), user purpose (EoP) check is
can still display them in available. The end of purpose
display transactions (for check is a report that
example, ME23N) and in determines whether customer
the document flow but no and supplier data is still
more changes allowed. relevant for business activities
in the application or can be
blocked.

Data archiving removes mass data that is no

longer needed in the system (but that must
still be available for reporting) from the
database. The SAP data archiving concept
is based primarily on the archiving objects of
the Archive Development Kit (ADK).
Classic functions and
new functions in S/4
Integration with Ariba Network
● Automation of Source-to-Pay with Ariba Network (42K)
● Service Procurement with Ariba Network and SAP
Fieldglass (4R2)
● Automation of Central Procurement Quotes with Ariba
Network (5JT)
● Subcontracting with Ariba Network (5I2)
Integration with SAP Ariba Applications
● Sourcing with SAP Ariba Sourcing (4BL)
● Guided Buying Capability with SAP Ariba Buying (2NV)
● Guided Buying for Central Procurement with SAP
Ariba Buying (3EN)
● Central Procurement with Ariba Sourcing (4QN)
● Contract Management with SAP Ariba Contracts (4AZ)
● Contract for Central Procurement with SAP Ariba
Contracts (4B0)
Integration with SAP S/4HANA for Procurement
Planning
● This integration enables you to seamlessly process the
procurement of items/direct materials across SAP
S/4HANA for procurement planning and SAP
S/4HANA for product sourcing. This procurement
process especially focuses on a close cooperation
between project managers, purchasers, sourcing
managers, and suppliers of direct materials.