Business Process Design Document

[Name of Process and Domain Area]

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 Role Reason for Approval Approver Approval
name date
Author The author is signing to confirm that this
document has been prepared in accordance with
the programme document management process,
that relevant input from any contributory authors
has been included and that an appropriate
review/editing process has been conducted.
HITECH The HITECH Business Process Owner is signing,
Business on behalf of HITECH, to confirm that this
Process Business Process Description matches the
Owner business process and criteria expected of it and
assigned to it in the Deliverable Quality Log.
Note. Master copy of this document, with signatories, is held on Solution Manager

Version Date Name Alteration Reason

0.1 25.07.2023 Partha Das Draft

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 TABLE OF CONTENTS
1 BUSINESS SCENARIO/BUSINESS AREA DESCRIPTION............................................................4
2 BUSINESS CONTEXT..................................................................................................................... 7
2.1 Business Objectives and Expected Benefits................................................................................7
2.2 Major Business Pain Points (to achieve business objective).....................................................8
2.3 High Level Business Requirements (to achieve business objective)........................................9
2.4 Key Financial Performance Indicators (KPIs)...............................................................................9
2.5 Organizational Change Impact.................................................................................................... 10
3 FUNCTIONAL AND PROCESS DESIGN.......................................................................................10
3.1 Organizational Structure.............................................................................................................. 10
3.2 Roles.............................................................................................................................................. 12
3.3 Master Data.................................................................................................................................... 13
3.4 Related Systems (being replaced or Interfaced with)................................................................13
3.5 Major Data Sources for Conversion............................................................................................ 14
3.6 Cross-Process Configuration...................................................................................................... 14
3.7 Cross-Process Development Objects.........................................................................................16
3.8 Policy and Compliance................................................................................................................. 17
3.9 Process Scope.............................................................................................................................. 17
3.10 Open Points, Risks, Assumptions, Issues and Dependencies.................................................21
4 APPENDIX...................................................................................................................................... 22

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 1 BUSINESS SCENARIO/BUSINESS AREA DESCRIPTION
DESCRIBE OVERALL BUSINESS SCENARIOS AND KEY FUNCTIONALITIES COVERED IN THIS
BUSINESS PROCESS DOCUMENT

1. Company Overview:
 Industry: Hi-Tech
 Business Model: Trading and reselling hi-tech products and solutions
 Headquarter: Germany
 Global Operations: EMEA (Europe-UK, Middle East and Africa), Americas (US and
Canada), APAC (Australia, New Zealand, China, India, Thailand, Malaysia, Philippines and
Singapore)
2. Product Portfolio:
Hitech-Global with headquartered in Germany and boasts a vast network of partners and expertise
across the globe and deliver the latest hardware and software as mentioned below.
Hardware:
o Computers
o Laptops
o Tablets
o Mobile Phones
o Printers
o Servers
 Software:
o Cloud Systems
o Data Centre Solutions
3. Supply Chain:
 Stock Units & Procurement Plants:
o UK (covering UK and EU)
o Germany (covering EU)
o Sweden (covering EU)
o UAE (covering Middle East)
o US (covering Americas)
o Canada (covering Americas)
o Australia (covering APAC)
o China (covering APAC)
o India (covering APAC)
o Singapore (covering APAC)

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  Supplier Partnerships:
o 70% of supply chain operations involve direct delivery from suppliers and
manufacturers to customers.
o Consignment stocks utilized at HITECH and supplier locations, particularly in
regions without own stock units.
4. Services:
 Installation: On-site installation of all sold products.
 Recurring Maintenance: Scheduled maintenance and repair services for products sold by
HITECH, manufacturers, and other third parties.
 Application Maintenance: Fixed and consumption-based contracts for maintenance of cloud
servers and data centres.
 Customer Care:
o Riga, Latvia (branch of Sweden entity): Covers Europe.
o India and Philippines: Cover the rest of the world.
5. Business Areas:
 Purchasing:
o Scenario: Achieve cost savings and improve supplier relationships through
centralized purchasing and contract management.
o Description: The current purchasing process is decentralized and fragmented, leading
to inconsistent pricing and missed opportunities for discounts. Implementing SAP
will centralize purchasing activities, enable contract management, and provide
insights into supplier performance.
o Benefits: Reduced purchasing costs, improved supplier relationships, increased
transparency.
 Inventory Management:
o Scenario: Optimize inventory levels to improve cash flow and reduce stockouts.
o Description: The current inventory management process is reactive and lacks real-
time visibility. Implementing SAP will provide real-time inventory data and enable
forecasting and demand planning, leading to optimized inventory levels.
o Benefits: Reduced inventory carrying costs, improved customer service, increased
profitability.
 Logistics and Distribution:
o Scenario: Optimize logistics and distribution operations to improve efficiency and
reduce costs.
o Description: The current logistics and distribution processes are manual and time-
consuming. Implementing SAP will automate warehouse
management, transportation planning, and order fulfilment, leading to optimized
logistics operations.
o Benefits: Reduced transportation costs, improved delivery times, increased customer
satisfaction.

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 6. Benefits of Implementing SAP:
 Increased efficiency: Automate manual processes and streamline workflows.
 Improved data accuracy and visibility: Gain real-time insights into business performance.
 Reduced costs: Lower purchasing costs, reduce inventory carrying costs, and improve
logistics efficiency.
 Improved decision-making: Make data-driven decisions based on real-time information.
 Enhanced customer service: Provide faster response times and improve order fulfilment
accuracy.
 Increased compliance: Ensure compliance with all relevant tax and regulatory requirements.
 Scalability: Support future growth and expansion into new markets.
By implementing SAP, the trading and reseller company can achieve significant benefits in terms of
efficiency, cost savings, and customer satisfaction. The improved data accuracy and visibility will
enable better decision-making and support the company's future growth and expansion plans.
This is a high-level overview of the business scenarios/business area description for a trading and
reseller company in the Hi-Tech industry. The specific scenarios and descriptions will need to be
further customized based on the company's unique needs and requirements.

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 2 BUSINESS CONTEXT

2.1 Business Objectives and Expected Benefits

Describe the business objective and expected benefits. These are the measurable improvements that will be
delivered by business requirements. These are drawn from the value case produced in the Discover phase.

Business Objectives for Hi-tech Global:

Based on the provided client details, HITECH Global has the following potential business objectives:

Business Objectives Description

Increase sales revenue across all regions This objective is likely a top priority for HITECH Global,
and product lines. as it would lead to increased profitability and market
share.

Expand market share in existing and new HITECH Global can achieve this objective by entering
regions. new markets, increasing its marketing and sales efforts
in existing markets, and offering competitive pricing and
product offerings.

Improve profitability by reducing costs This objective can be achieved by streamlining

and increasing operational efficiency. operations, reducing waste, and improving inventory
management.

Optimize supply chain and logistics to This objective can be achieved by implementing new
reduce lead times and improve inventory technologies, such as cloud-based inventory
management. management systems, and improving collaboration with
suppliers.

Develop new revenue streams through HITECH Global can achieve this objective by developing
innovative service offerings. new services, such as cloud-based solutions or
managed services, and expanding its service offerings to
new markets.

Enhance customer satisfaction through This objective can be achieved by investing in customer
improved service delivery and support. service training, providing online support options, and
offering extended warranties and service contracts.

Expand into new product lines and HITECH Global can achieve this objective by developing
markets. new products, acquiring new companies, and entering
new markets.

Improve financial performance and This objective can be achieved by implementing the

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 achieve sustainable growth. other business objectives listed above.

Expected Benefits for HITECH Global:

By achieving its business objectives, HITECH Global can expect the following benefits:
Expected Benefits Description

Increased revenue and profitability. This is the most obvious benefit of achieving HITECH
Global's business objectives.

Expanded market share and brand This will lead to increased sales and profitability.
recognition.

Improved operational efficiency and cost This will improve HITECH Global's bottom line.
savings.

Enhanced customer satisfaction and loyalty. This will lead to repeat business and positive word-of-
mouth referrals.

New revenue streams from innovative This will diversify HITECH Global's revenue streams
service offerings. and make it less reliant on traditional product sales.

Improved financial performance and long- This will make HITECH Global a more attractive
term sustainability. investment for potential investors.

Reduced lead times and improved inventory This will improve customer satisfaction and reduce
management. costs.

2.2 Major Business Pain Points (to achieve business objective)

Provide a high-level list of pain points based on business scenario and solution mapping in Discover
phase.
Particulars Major Pain Points Solution mapping in discover phase
Single consolidated view: Material master data, Source master SAP S/4 HANA Public Cloud
data and supplier master data are consolidates master and accounting
stored in BAAN and Accounting data, simplifying data management
data, Customer invoicing and and analysis.
financial postings data are stored in
NAVISION.
Dual maintenance of Both BAAN and NAVISION must One time maintenance is sufficient in
master data (Material, be maintained parallelly. For SAP S/4 HANA public cloud.
Supplier) in BAAN and example: update information such
NAVISION: as vendor price and address need to
be done both in BAAN and
NAVISION
The risk of data Supplier or product master data Data duplication is eliminated within

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 duplication: being duplicated in BAAN and the system due to the centralized
NAVISION during the initial data nature of the data population process.
population, necessitating data
cleansing procedures.
Data Overloading issue: BAAN's on-premise architecture
SAP S/4 HANA built for speed and
can struggle with scaling for large
agility. Its in-memory database
data volumes and complex
architecture in the cloud exhibit
procurement processes.
superior database and its scalability is
highly elastic, scales up or down
seamlessly.
Weak business processes NAVISION's procurement and
SAP S/4 HANA provides a wider
during complex logistics functionality is not robust
range of features, an enhanced and
situations: enough for complex businesses.
streamlined purchasing activities
exhibit several benefits over usual
purchasing activities.
Example:
1. Real-time visibility: Track the
status of purchase requisitions and
purchase orders in real-time.
2. Centralized supplier confirmation
management: Manage supplier
confirmations centrally, ensuring
complete and timely responses. Etc
Inefficient procurement NAVISION data can be
S/4 HANA's centralized data
and logistics operations siloed, making it difficult to gain a
platform breaks down silos and
due to data silos: holistic view of procurement and
provides a unified view of all
logistics operations.
relevant data.

Poor reporting BAAN's reporting capabilities will

S/4 HANA's advanced analytics and
capabilities in not provide real-time insights into
reporting tools offer real-time
procurement and logistic procurement and logistics
visibility and actionable insights.
operations: operations.
Burden of maintenance: NAVISION often relies on
S/4 HANA's configurability reduces
customization to meet specific
the need for extensive customization.
business needs, which can lead to
maintenance challenges and
compatibility issues during
upgrades.

Difficulties with large Both BAAN and NAVISION can S/4HANA Cloud's in-memory
data volumes and struggle with large data volumes computing architecture offers
complex workflows: and complex workflows, leading to superior scalability and performance.
performance issues and hindering
future growth.
Integration Hurdles with Integrating BAAN and NAVISION S/4 HANA's pre-built integrations
other systems: with other systems can be complex and open APIs simplify connectivity
and costly, creating data silos and with various suppliers, logistics
hindering information flow. providers, and marketplaces.

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 2.3 High Level Business Requirements (to achieve business objective)
Provide a list of high-level business requirements and expectations. These are refined in the Fit-to-Standard
process.
More detailed requirement, GAP List and GAP-Analysis that were part of Design authority deliverables, see
documents in Appendix section.
 SAP S/4HANA Public Cloud offers key advantages when it comes to consolidating master and
accounting data, simplifying data management and analysis for the business.
(For Example: Single Source of Truth, Real-time Insights due to its in-memory database architecture,
Reduced Redundancy by eliminating data duplication.)
 SAP S/4HANA's enhanced and streamlined purchasing activities offer a more of benefits over traditional
purchasing systems.
(such as Automated Workflows, Real-time Visibility which leads to gain instant insights into inventory
levels, supplier performance, and purchase order statuses, Advanced Analytics, Integration with Other
Modules like inventory management, finance, and logistics, creating a single, unified view of your
business processes etc.)
 SAP S/4HANA's centralized data platform is one of its biggest strengths, offering a clear advantage over
traditional ERP systems which leads to breaking down data silos and providing a unified view of all
relevant data.
(Example: Eliminates Data Inconsistency, Improved Accessibility due to which all relevant data is
readily available through a single interface, Enhanced Collaboration with everyone working with the
same data, teams can collaborate more effectively, make better-informed decisions, and avoid duplicated
efforts.)
 While customization remains necessary for certain needs, S/4HANA's enhanced configurability does
significantly reduce the reliance on extensive coding, offering several advantages.
(Such as reduced costs, faster implementation and upgrades, increased agility and flexibility, improved
maintainability.)
 S/4HANA's pre-built integrations and open APIs are significant advantages for simplifying connectivity
with diverse suppliers, logistics providers, and marketplaces.

2.4 Key Financial Performance Indicators (KPIs)

List the KPIs

Key Performance indicators

KPI Name

Owner

Definition

Calculation

Drill Down Capabilities

Supporting SAP Solution

Components

Planned Data Source

Reporting Method

Frequency

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 Used by

Key Performance indicators

KPI Name

Owner

Definition

Calculation

Drill Down Capabilities

Supporting SAP Solution

Components

Planned Data Source

Reporting Method

Frequency

Used by

Key Performance indicators

KPI Name

Owner

Definition

Calculation

Drill Down Capabilities

Supporting SAP Solution

Components

Planned Data Source

Reporting Method

Frequency

Used by

Key Performance indicators

KPI Name

Owner

Definition

Calculation

Drill Down Capabilities

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 Supporting SAP Solution
Components

Planned Data Source

Reporting Method

Frequency

Used by

Key Performance indicators

KPI Name

Owner

Definition

Calculation

Drill Down Capabilities

Supporting SAP Solution

Components

Planned Data Source

Reporting Method

Frequency

Used by

Key Performance indicators

KPI Name

Owner

Definition

Calculation

Drill Down Capabilities

Supporting SAP Solution

Components

Planned Data Source

Reporting Method

Frequency

Used by

Key Performance indicators

Transactions and Records Average Volume Per Month

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 2.5 Organizational Change Impact
Identify organizational entities in scope: groups, divisions, plants, departments. Note roles/jobs in
the current organization. Identify potential changes.

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 3 FUNCTIONAL AND PROCESS DESIGN

3.1 Organizational Structure

List SAP organization structure items required to support his business scenario/business area.

For Sales Office, Regions, Profit Centre and Solution Group Organisational Unit mapping, please
refer to detailed document link in Appendix section.

Detailed Organisational Structure:

C:\Users\SHETTY HARSHA\OneDrive\Desktop\Org Structure.xlsx

3.2 Roles
List business roles needed to support his business scenario/business area. Note any unique customer
authorization requirements.

Roles

SAP Role(s) –
Authorization
Role Description TCODE/Fiori App
Requirements
ID

Business Operation – 1. Update contract with Vendor service 1. F1600A 1. Edit

Level 1: 2. Search & view purchase orders. 2. F7117 2. Display
Executive/Leadership
3. Search & view product master data 3. F2756, F1602 3. Display
(Global Level)
4. Search & View Vendor Invoices 4. F2048, F0859 4. Display
5. Book and approve Vendor invoice 5. F 0859 5. Display and Edit

Manager – Order 1. Create PO 1. F3486 1. Edit/Create

Management.
2. View vendor delivery notes 2. F2359 2. Display
Level 2: Management
3. Search for PO 3. F2358 3. Display
(Global Level)
4. Search for product master data and 4. F1602 4. Display
pricelist.

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 Purchasing Specialist 1. Create PO 1. F3486 1. Create/Edit
Level 3: Operations 2. Create and maintain supplier data 2. F1053A 2. Create/Edit
and Support.
3. Create GR 3. F0843 3. Create/Edit
(Country Level)
4. Access to supplier data 4. F3371 4. Display
5. PO Information 5. F0348A 5. Display
6. Inventory management 6. F2769 6. Display
 Post GR for purchasing doc.  F0843  Create
 Post GR for inbound delivery  F2502  Create
 Post Subsequent adjustment  F5476  Create
 Post GR without reference  F3244  Create
 Manage Stock  F1062  Create
 Transfer stock within plant  F1061  Create
 Transfer stock cross plant  F1957  Create
 Physical Inventory  F4486  Create
7. GR 7. F0843 7. Create
8. Transfer of stock. 8. F1061, F1957 8. Create
9. Stock taking and reporting 9. F1076 9. Edit.
10. Financial follow up of purchasing. 10. F1990 10. Display

Purchasing regional 1. Monitor Overdue Purchase order 1. F0343 1. Display

Admin
2. Purchase order confirmation handling 2. F2359 2. Display
Level 2: Operations
3. Open PO order administration 3. F0343 3. Display
and Support.
4. Invoice Handling in VIM/Palette 4. F0859 4. Edit
(Country Level)

Product 1. Inbound Delivery 1. VL31N 1. Create

coordinator/technician
2. Outbound delivery 2. F0867A 2. Create
Level 3: Operations
3. Stock reservation 3. F5601 3. Create and View
and Support.
4. Actual Stock levels/ Inventory Handling 4. F2769 4. Display
(Country Level)
5. Stock level reporting 5. W0055 5. Reporting/Analysis
6. Stock Count 6. F5430 6. Create
7. Stock movement and monitoring 7. MIGO 7. Display
8. Maintain Shelf space 8. F1062 8. Create/Edit
9. Change PO 9. F3791 9. Edit/Change
10. Material Movement 10. MIGO 10. Create

Service manager 1. Create/Update Service materials 1. F3763 1. Create/Edit

Level 2: Operations 2. Create/Update default price conditions 2. MEK2 2. Create/Edit
and Support.
3. Create/Update BOM 3. CS01 3. Create/Edit
(Country Level)

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 Service delivery 1. Delivery from order to invoice 1. F0859 1. Create
coordinator
2. Procurement of subcontractor resources 2. F2948 2. Create/display
Level 3: Operations and billing
3. F0859 3. Create
and Support.
3. Initiate invoicing based on input from
(Country Level) project manager

Service delivery 1. Retrieve information on customer 1. F2179 1. Display

manager /supplier agreements
Level 3: Operations
and Support.
(Country Level)

Consultants/Service 1. Retrieve information on customer 1. F2179 1. Display

Technicians. /supplier agreements
Level 3: Operations
and Support.
(Country Level)

Further Roles and Authorization related detailed documentation will be done by the Business
Change and Authorization team. Please see other related document link in Appendix section.

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 3.3 Master Data
List master data elements needed to support his business scenario/business area. Note any unique
customer requirements.
Master Data

Data Object Description SAP Object Unique Requirements

Table MARA
Material Specific Data, which
(Materials) – Stores
includes information of materials
the basic/general Material type
that a company can procure,
information about the Material group
produce, store or sell with
Material material such as Material number
different departments. Service
Material type, number, Plant/Storage location
Products master data with all
plant data, general data, Pricing.
required information will be
account assignment
mastered in SAP
data.
Referred to as master data and can BP - It acts as a central
call it as backbone of efficient entity, one BP many
Business partner Vendor
material management which holds roles such as supplier,
(vendor or Partner Functions
the data of vendor/supplier and its vendor, customer,
supplier) Contractual Agreement
partner functions and third part consultant, logistics
activities. provider.
Service master is a central data Table SEBELN -
base for all service-related data stores details like
Service type
which company procures service
Service Master Service configuration
externally with efficient type, provider, date of
Service entry
purchasing, accurate reporting service, duration, and
and smooth service delivery. associated cost.
Advanced Variant
Configuration (AVC)
class and
For service configurable products, characteristics- groups
Class and class, characteristics and values materials based on
Characteristics information will be mastered in shared characteristic
SAP values and assigns
materials to class type,
class and class
assignment
Combination of suppliers and
EINA – complements
materials which connects right
the material master by
material with right Pricing
Purchase Info focusing on vendor
vendors/suppliers with right price Vendor ordering and delivery
record details, purchasing
which ensures smooth Automated purchasing
condition and order
procurement with informing
data.
decisions.
KONNR - defines
pricing rules and
discounts for Complex pricing rules
It’s one stop shop for applying,
Condition materials, can also be Material surcharges
defining, managing pricing rules
Master adapted for services Customer pricing rebates and
to materials
allows flexible agreement
customized service
pricing
EKWB – deals with Source selection
Ensures the right vendor pass
qualified suppliers with Vendor qualification
through to fulfill the material
Source List dependency on Material specific list
needs which guarantees the
material, vendor and Supplier bidding
quality and cost effectiveness
characteristics

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 For defined Service products List, please check document link in Appendix section.

3.4 Related Systems (being replaced or interfaced with)

List the system(s) currently used to enable this business scenario/business area. Indicate which ones will be
decommissioned and which ones will have interfaces.

Related Systems

System System Description Impact Interfaces

To be replaced by SAP
S4 HANA:
Currently for
 Enhanced Purchase
 Supplier contracts,
Requisition
 Supplier management
Management
activities
BAAN  Streamlined PO Decommissioning BAAN.
 Resource logs
processing
 Purchase order
 Collaborative supplier
managements
management
 Improved
communication
 Improved efficiency
Currently for and automation in
 Supplier Records procurement.
Management,  Enhanced visibility
NAVISION  Customer Invoicing and control over Decommissioning BAAN
 Financial postings and financial and
reports. operational data.
 Invoice processing  Scalability and
flexibility

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 3.5 Major Data Sources for Conversion
List the data conversion requirements and the source systems.
Data Sources

Source System Source Data Object Volume Approach

Materials Master data: Material Code - Description -

Technical Specifications - Classification/Categories -
Units of Measure - Procurement Data.
Data migration
 Material Forecast Planning approach is extracted
BAAN High
from BAAN, cleansed
 Material Consumption
and migrated to SAP
 Material Model Specification
 Source List

BP Master data: Vendor Code - Name and Address -

Contact Information - Payment Terms - Purchase
History. Extracted from BAAN,
BAAN Medium cleansed and migrated
 Supplier
to SAP
 Supplier - extend existing record by multiple
addresses.

Purchase contracts, Supplier Contract Management,

Activities, Resource Logs, Case Management. Extracted from BAAN,
BAAN Medium cleansed and migrated
 Material Inventory Balance
to SAP
 Purchase SA

Customer Records Management, Customer Invoicing and

Financial postings and reports.
 Purchase Order - Open Extracted from
NAVISION Medium NAVISION, cleansed
 Purchase contract
and migrated to SAP
 Condition record for pricing in purchasing
 PIR with conditions

Extracted from
Payment Transactions, Goods Receipts – Vendor
NAVISION High NAVISION, cleansed
Invoices.
and migrated to SAP

Extracted from
Currency Codes - Exchange Rates, Foreign Currency
NAVISION Medium NAVISION, cleansed
Transactions
and migrated to SAP

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 Data Sources

Source System Source Data Object Volume Approach

Product Master:
 Material Forecast Planning
Data migration
 Material Consumption approach is extracted
BAAN High
 Material Model Specification from BAAN, cleansed
and migrated to SAP
 Material Inventory Balance
 Condition record for pricing in purchasing

Source Master Data:

 Source List
BAAN  Purchasing Contract Medium
 Purchase agreements
 Purchase Order – Open

Supplier Master:
BAAN  Supplier - extend existing record by multiple
addresses

Medium

NAVISION  Vendor Account Group

 Pricing Procedure

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 3.6 Cross-Process Configuration:

Configuration Consideration
Configuration Considerations/ Comments / Notes
Segment Configuration Object
Approach
Intra STO -
Define supply and receiving plants, vendor master
Inter/Intra Integration of MM-
data alignment, pricing and document type
Company SD - PGI at supplying
configurations.
Transactions plant.
Inter STO - Creation of purchase orders automatically - set up
Integration of MM- in receiving plant based on STO in supplying
SD - PGI at supplying plant.
plant.
Integration of MM- In third-party process the delivery of the goods
SD: required by the customer is not done by sales
Third Party Customer Order – PO organization where customer orders. Instead, the
request of the goods is forwarded to an external
Procurement – Goods Issue.
vendor who sends the material directly to the
MM Invoice – customer.
Customer Invoice
Integration of MM – Configure G/L accounts for transactions like
FI: Goods receipt, Invoice automatically or manually.
Automatic account
Inventory determination:
Valuation
COA – G/L accounts
Mat. Master – Val.
Class – TEK – G/L
Account

For more details, please refer detailed configuration document links in Appendix section.

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 3.7 Cross-Process Development Objects

Process related GAP & Development Items

RICEFW ID Description WRICEF Type Outline Solution & Context
REQ_507 It shall be possible to set standard prices
of the consultants to be used for
standard pricing of internal consulting
Enhancement
hours, independently of receiving entity.
No margin on delivering cost centre. (see
2.3 Consulting)
REQ_1170 The system shall also support internal
Enhancement
projects
REQ_1176 It shall be possible to configure reports
on system level Enhancement

REQ_1180 It shall be possible to measure our Reports

operations on at least the following
values/KPIs for the levels above

REQ_1345 Forecast remaining shall automatically be Enhancement

versioned with date, time stamp and
user.

REQ_1406 The system must have support for Enhancement

creating and uploading new Services and
Articles. Shall also be able to change and
adjust existing Services and Articles
following a decision by CAB (Change
Advisory Board) within SPM (Service
Portfolio Management), and this change
shall be traceable with what has been
done and what date.

REQ_1407 The system shall have support for Enhancement Addressed with
indicating different phases of a Service or development
Article during its life cycle (Service
Pipeline, Service Catalogue and Retired
Service). Be able to set a traceable date
when the Service or Article changed
phase and prevent the sale of retired
services.

REQ_1548 The system shall hold all documentation Enhancement Need development in
demanded by HI-TECH Company due to some cases so will be a gap
demands in frame agreement for each
subcontractor.

REQ_1496 The system shall have functionality for Enhancement Custom development is
letting a dedicated person at the necessary then mm part
subcontractor (other than the

Sensitivity: Internal
 subcontractor’s consultant) can report
their times and costs less specified for
each assignment if the assignment allows
this.

REQ_1637 It shall be possible to automatic deliver Interfaces Need integrations with

consumables (toners etc.) based on alarm external systems
function in externally integrated systems
(Site audit, KFS and ASR filtered in ASS).

REQ_1870 It shall be possible to invite and set-up Enhancement Partially fit but need
new e-invoice vendors in the system. development

REQ_1884 It shall be possible to have several bank Enhancement Partially fit but need
details for vendors => correct vendor custom development
currency bank account shall be picked up
at payment proposal creation.

REQ_1904 It shall be possible to send invoices with Enhancement Enhancement needed in

differences towards the purchase order in some areas
the approval workflow

REQ_1929 It shall be possible to post additional or Enhancement Integration of other

reduced cost related to framework modules with
agreements to affect a sales order item. development
The post shall be posted at customer
invoicing and balanced for later payment
to Procurement Centres (Procurement
Centres).

REQ_1960 It shall be possible to generate a report Report

for inventory (inventory) purposes with
different selections for example location,
cost centre

REQ_1971 It shall be possible to do stock reporting Report

on value and count on material level
according to file "SAP- Reports för
Inventory reconciliation" saved in folder
"Material - Material att t fram after ws":

REQ_1976 It shall be possible to add extra inbound Enhancement Custom development

costs which shall be included in the needed
delivered/not invoiced at goods receipt
and COGS when invoicing.

3.8 Policy and Compliance

List company policies and compliance requirements. For example, SOX, GDPR and Segregation of
Duty considerations.

Sensitivity: Internal
 3.9 Process Scope
List the business processes or scope items. Indicate whether they are in or out of scope of this
business scenario/business area. Identify the proposed SAP Solution(s). Reference SAP Best
Practices and SAP Model Company.
Process Scope
Process SAP
Process Name Description In Scope
ID Solution
J45 Procurement of direct This process uses PR that are Manage PR, PO, SAP
materials. generated by the MRP or manual. GR and IV S/4HANA
Public
Cloud
2LG Supplier In this process the supplier Manage PO, SAP
Consignment provides the material and stores GR, stocks and S/4HANA
it at site of the procuring party. settle Public
consignment. Cloud
1P7 Cross plant Transfer This scope item includes two One-step stock SAP
Posting processes for stock transfer transfer posting, S/4HANA
between two plants in a company Public
Two-step stock
code: One-step stock transfer Cloud
transfer posting.
posting and two-step stock
transfer posting.
1P9 Inter Company The stock transfer process begins Intercompany SAP
Stock Transfer with a requirement to transfer stock transfer S/4HANA
Order material from one company or process between Public
plant to another company or plant two companies Cloud
within the same country. The with one country
Purchaser creates purchase orders and cross
under the receiving plant. countries.
Leverage the
stock balance
between
companies and
reduce storage
value

BD3-01 Sales Processing using This scope item enables to PR is created SAP
Third-Party with forward orders to third-party based on SO – S/4HANA
Shipping Notification vendors who ship the goods PO based on PR – Public
directly to customers, and then bill Approve PO – Cloud
you directly. post Statistical
Sales order – PR – PO GR – Create
Shipping notification- statistical Billing document
GR is posted – Invoice can be – Enter Vendor
created and issued based on the Invoice
GR quantities.
SL4 Supplier identification Supplier SAP
 Potential suppliers are Management. S/4HANA
identified based on the chosen Public
strategy. Cloud
 Their qualifications, capacity,
reputation, and pricing are
evaluated.
Shortlisting of suitable suppliers
follows.

Sensitivity: Internal
 4AZ Contract Management Create, maintain, and manage Source-to- SAP
contracts with suppliers. Contract. S/4HANA
Public
Cloud
2LH Automated Invoice Manage PO, GR, SAP
Purchase orders are issued to the
Settlement auto invoice S/4HANA
supplier, specifying the agreed-
settlement. Public
upon terms.
Cloud
Order tracking and delivery
confirmation are essential steps.

Procurement of direct materials (J45):

Sensitivity: Internal
 Procurement of Direct materials:

Purchase Requisition (PR) is done based on the material required manual process/given by the SD team. The PR is then
converted to Purchase Order (PO) manually or automatically only after the approval of purchasing manager of the
company. The PO is placed with the supplier, who is located in the respective regions of the company code and there is
a contract between the supplier and the company i.e. The tolerance of deviation amount between vendor invoice and
payment made. This process of procurement activities is going to takes place by regional purchasing operations by
Purchasing Organizations assigned to all the plants of the respective company codes.

Case 1: Companies having their own Plant will procure the goods and keep them in their own inventory.

Example: In the APAC region Company Code in India (IN) has three plants assigned to it and three exclusive
Purchasing Organizations assigned to each plant. All the purchasing organizations of the APAC regions are making
purchasing activities with the consultation from APAC purchasing group. After placing the PO with the suppliers
located in the same regions of the company codes will have to transfer the goods to the respective plants of the company
codes. The stocks are stored in the respective plants after the Goods Receipt (GR). Then the invoice verification is done
with reference to PO and invoice settlement is done in the respective country currency only. Later the products/stocks
sold from the own inventory of their respective plants.

This procurement process takes place in the following company codes/countries.

Companies having stock keeping units

and procurement plants.

HTGB (UK)
HTSE (Sweden) EMEA
HTDK (Denmark)
HTAE (UAE)
HTUS (USA) America
HTCA (Canada)
HTIN (INDIA)
HTAU (Australia)
APAC
HTSG (Singapore)
HTCN (China)

Case 2: Companies does not have their own Plants and does the business by third party process.

 With a customer placing an order and a sales order being created in SD with third-party item categories.
 A purchase requisition is generated and converted into a Purchase Order sent to the Supplier.
 However, in the absence of a plant, the "deliver-to" address on the purchase order will directly be the customer's
address.
 You could also consider utilizing shipping points to define specific locations for vendor deliveries, even if you don't
have a physical plant.

Sensitivity: Internal
  The supplier ships the goods directly to the customer at the suppliers cost based on the agreement, as specified in
the purchase order. The supplier may send you a shipping notification confirming the delivery.
 Physical goods receipt isn't applicable since you don't have a plant. However, you can still perform a statistical
goods receipt in MM based on delivery confirmations or other documents from the vendor.
 This updates your inventory records virtually, reflecting the fulfilled order.
 You process the vendor's invoice as usual in MM.
 You create and send a sales invoice to the customer based on the purchase order and delivery confirmation.
 Billing remains unaffected by the lack of a plant.

Case 3: Companies does not have their own Plants but they will procure the goods and keep it in suppliers’ location
(Virtual plant/supplier consignment).

 Create a virtual plant in SAP MM: This plant serves as a placeholder for inventory management purposes, even
though it doesn't represent a physical location.
 Configure the virtual plant for supplier consignment: This allows you to manage consignment stock at the
supplier's location, linked to your virtual plant.
 Use the virtual plant in the third-party process: Assign the virtual plant to the purchase order sent to the vendor.
 Post goods receipt at the virtual plant: When the vendor confirms delivery to the customer, post a goods receipt
in MM against the purchase order, referencing the virtual plant.
 Billing and invoice processing: Proceed with regular billing the customer and invoice processing for the supplier.
The following table shows such company codes/countries.
Example: In the APAC region Company Code in New Zealand (NZ) does not have plants assigned to it but all the
purchasing activities are done with the consultation from APAC purchasing group. The stocks are stored in the
supplier’s locations/premises (Supplier Consignment) after the Goods Receipt (GR). The values of the goods are
updated in the virtual inventory of the respective company. Once the company receives the sales order from the
customer, the same matter will be sent to supplier and the goods will be sent directly to customer from the supplier
based on the agreement. Then the invoice verification is done with reference to PO and invoice settlement is done in the
respective country currency only. Later the products/stocks sold from the supplier’s consignment units.

Companies having stock keeping

units at supplier’s premises
(supplier consignment)

HTCF (Africa) - EMEA

HTNZ (New-Zealand)
HTTH (Thailand)
APAC
HTMY (Malaysia)
HTPH (Philippines)

Process Flow:
 Manage purchase requisitions
 Manage purchase orders

Sensitivity: Internal
  Manage goods receipts
 Manage stock
 Manage invoices

Supplier Consignment (2LG):

Supplier Consignment:

Case 4: The Companies having plants stores the suppliers’ goods in the plant’s premises, where in the percentage of
stock are withdrawn from the consignment locations based on the requirement from the customers and subsequently
complete the invoice settlements periodically.

 Agreement: Establish a legal agreement between the supplier and the company outlining terms like pricing,
delivery, inventory management.
 Delivery: The supplier delivers goods to the company’s plant, but ownership remains with the supplier.
 Inventory Management: The Company post the GR and updates their internal inventory records to reflect the
consignment stock.
 Sales: The Company sells the consignment goods to customer based on their demand. When a customer purchases
a consignment goods, the company processes the sale and tracks it separately from their own inventory.

 Payment: The Company pays the supplier for the sold items based on the agreed-upon pricing and timeframe. This
is a periodic payments or settlements.

 Returning Unsold Items: The retailer may be able to return unsold items to the supplier within a specified
timeframe, as outlined in the agreement. (Req. 11)

Case 2: Companies does not have their own Plants but they will procure the goods and keep it in suppliers’ location
(Virtual plant/supplier consignment).

 Create a virtual plant in SAP MM: This plant serves as a placeholder for inventory management purposes, even
though it doesn't represent a physical location.

Sensitivity: Internal
  Configure the virtual plant for supplier consignment: This allows you to manage consignment stock at the
supplier's location, linked to your virtual plant.
 Use the virtual plant in the third-party process: Assign the virtual plant to the purchase order sent to the vendor.
 Post goods receipt at the virtual plant: When the vendor confirms delivery to the customer, post a goods receipt
in MM against the purchase order, referencing the virtual plant.
 Billing and invoice processing: Proceed with regular billing the customer and invoice processing for the supplier.

The following table shows such company codes/countries.

Companies having suppliers’ Companies having supplier

consignment at their own consignment at supplier’s premises.
premises

HTGB (UK)
HTSE (Sweden) EMEA HTCF (Africa) - EMEA
HTDK (Denmark)
HTAE (UAE) HTNZ (New-Zealand)
HTUS (USA) America HTTH (Thailand)
APAC
HTCA (Canada) HTMY (Malaysia)
HTIN (INDIA) HTPH (Philippines)
HTAU (Australia)
APAC
HTSG (Singapore)
HTCN (China)

Supplier Consignment Process Flow:

 Manage purchase orders

 Manage goods receipts

 Manage stock

 Settle consignment

Sensitivity: Internal
 Cross Plant transfer posting (1P7):

This process of cross plant transfer posting holds good for companies having multiple plants in the same region. Based
on the locations of the two plants there are two types of Cross Plant Stock Transfers. i.e. Cross Plant Transfer Posting in
one step (Suitable if two plants are close to each other) and Cross Plant Transfer Posting in two steps (Suitable if two
plants are far from each other).

Cross Plant Transfer Posting in one step: In the one-step procedure, post the goods issue from the supplying plant
and the goods receipt in the receiving plant in one transaction. In doing so, the system creates a material document and
an accounting document. The stock transfer is valuated at the valuation price of the material in the supplying plant.
Using the one-step procedure, transfer of stock quantities from any stock type in the issuing plant to any stock type in
the receiving plant.

Cross Plant Transfer Posting in two steps: In the two-step procedure, remove the stock from the unrestricted-use
storage in the issuing plant and then put this quantity into Stock In Transfer (SIT) of the receiving plant. The SIT
belongs to the valuated stock of the receiving plant. The stock transfer is valuated at the valuation price of the material
in the supplying plant. The system creates a material document and an accounting document.

Then in second step: Goods are placed in the plant after the GR. The quantity is transferred from SIT to Unrestricted
use of stocks.

Sensitivity: Internal
 Cross plant Transfer Posting:

 One-step stock transfer posting

 Two-step stock transfer posting

 Perform customer returns scrapping: Goods issue to CO-PA

 Perform general stock scrapping: Goods issue to cost centre

 Block material - stock transfer unrestricted to blocked

 Unblock material - stock transfer blocked to unrestricted

 Unblock material - stock transfer blocked to quality inspection stock

Inter Company Stock Transfer Order (1P9):

Sensitivity: Internal
 This process of Inter Company Stock Transfer process holds good for stack transfer between the Company/plants of
same country or cross countries.
The Purchaser creates purchase orders under the receiving plant. A warehouse clerk at the issuing plant monitors the
materials due to be shipped and creates deliveries as required.
For international processes, a proforma invoice is generated. In supplying Plant Post goods issue for stock transport
order and a material and an accounting document is created subsequently. ending the process for the issuing plant.
After posting the GR in receiving plant, create supplier invoice verification and payment.

Process Flow:
1. Create intercompany stock transport order
2. Create replenishment delivery for stock transport order

Sensitivity: Internal
 3. Create proforma invoice
4. Pick and post goods issue for stock transport order
5. Inbound delivery
6. Check status of stock transfer
7. Post goods receipt
8. Create intercompany billing document
9. Create supplier invoice

Sales Processing using Third-Party with Shipping Notification (BD3):

Third Party Process:

Mostly (About 70%) HiTech-Global business operation happens under third party process. Where, Products are
delivered directly to the customer locations against the customer orders by the suppliers/vendors/manufacturers.

PR is created based on the sales order from the customers and PO is created with reference to PR. The PO is sent to the
suppliers after the approval from the procurement manager. Post the statistical GR once the shipping notification is sent
by the supplier. Then create the billing document by Invoice verification to suppliers after the goods/stock is directly
sent to the customer’s place.

This process takes place in all the company codes across the globe:

Sensitivity: Internal
 Companies with own Plants and Companies with supplier locations
Suppliers’ consignment locations as supplier consignment

HTGB (UK)
HTSE (Sweden) EMEA HTCF (Africa) - EMEA
HTDK (Denmark)
HTAE (UAE) HTNZ (New-Zealand)
HTUS (USA) America HTTH (Thailand)
APAC
HTCA (Canada) HTMY (Malaysia)
HTIN (INDIA) HTPH (Philippines)
HTAU (Australia)
APAC
HTSG (Singapore)
HTCN (China)
Key process Flow:
10. Create third party Sales Order (SO)
11. Create Purchase Requisition (PR) w.r.t SO
12. Convert PR to Purchase Order
13. Approve PO
14. Post Statistical Goods Receipt (GR)
15. Create Billing Document
16. Enter Vendor Invoice

Sensitivity: Internal
 Supplier Evaluation (SL4):

Supplier Evaluation:

 Perform evaluation by user-defined criteria

 Create purchasing categories

Sensitivity: Internal
 Contract Management/manage service contracts (4AZ):

Contract Management/manage service contracts:

 Create a purchase contract

 Approve purchase contract
 Create a purchase requisition
 Creating purchase order
 Approve purchase orders
 Post goods receipt
 Create supplier invoice

Sensitivity: Internal
 Automated Invoice Settlement (2LH):

Automated Invoice Settlement:

 Manage purchase order

 Manage goods receipt

 Perform automated invoice settlement

 Receive one or more invoices from suppliers

 Select attachments stored locally (for example, e-mail attachments or scanned

paper invoices) and upload files to SAP S/4HANA Cloud

 Create and post supplier invoices automatically for each file

 Display supplier invoices and process subsequent steps (such as releasing or

cancelling invoices)

 Start invoice approval process

Sensitivity: Internal
 Process Steps:
Material Planning and control:

Process Step Description System Activities Business Role

Material Master Define material data, Manage Materials App Material Master
Creation & including type, Specialist, MM
Maintenance classification, Consultant.
purchasing &
accounting information.
Inventory Management Monitor stock levels, Manage Inventory App Inventory
& Valuation update inventory Controller,
records, perform Warehouse
physical counts, and Manager
manage valuation
methods.
Purchasing Planning & Analyze consumption Demand Planning App Procurement
Forecasting data, forecast future Planner, Demand
demand, and create Planner
purchase plans

Purchasing:

Process Step Description System Activities Business Role

Vendor Master Define vendor data, Manage Vendor App Purchasing
Creation & including contact Specialist, Buyer
Maintenance information, payment
terms, and purchase
conditions
Purchase Requisition Document material Manage purchase Requisitioner,
(PR) Creation & needs and request requisition App Department Head,
Approval purchase orders from Approver
vendors
Purchase Order (PO) Generate purchase Manage purchase order Buyer, Purchasing
Creation & orders based on App Manager
Management approved PRs,
negotiate pricing, and
monitor delivery
schedules
Goods Receipt & Record received goods Manage Inventory App Warehouse
Invoice Verification against POs, compare Coordinator,
invoices with delivery Manage Invoices App Accounts Payable
notes, and process Clerk
payments

Sensitivity: Internal
 Inventory Management:

Process Step Description System Activities Business Role

Goods Movements: Track material Manage Inventory App Warehouse
movement within and Manager,
between warehouses, Inventory
including transfers, Controller
adjustments, and
scrapping
Physical Inventory Conduct periodic stock Physical Inventory App Inventory
counts to verify Controller, Auditor
physical inventory
levels against system
records
Inventory Valuation Determine the value of Manage Valuation Accounting
inventory based on methods App Analyst, Inventory
different costing Controller
methods and generate
inventory reports

Invoice verification and payment:

Process Step Description System Activities Business Role

Invoice Verification Match vendor invoices Manage Invoices App Accounts Payable
with POs, check price Clerk, Accounting
and quantity Analyst
discrepancies, and
approve for payment
Payment Processing Make payments to Manage Invoices App Accounts Payable
vendors according to Clerk, Treasurer
payment terms and
methods

Sensitivity: Internal
 3.10 Open Points, Risks, Assumptions, Issues and Dependencies
List of points and topics that need to be continuously assessed and monitored during the Time SAP
change and implementation phases.
Topics

# Description Raised By Next Action

REQ_141 A certain given Article number, shall be
0 measurable and the following up as the
same type of Service, regardless of
which version or release the Service has.
REQ_202 For EOL, it shall be possible to handle
9 the repurchase of the asset from the
funder to AF
REQ_198 It shall be possible to include Cisco
5 purchase orders in the hedge base from
SAP including inbound transportation
cost. If Cisco orders are not handled via
purchase orders, these orders shall be
added separately.
REQ_191 It shall be possible to post to all
1 dimensions.
Dimensions to be decided
REQ_691 It shall be possible to use different
reason codes in the purchase order. The
reason codes are sent from vendor and
from HI-TECH Company Logistic
configuration centre. The reason codes
should also be updated to the sales
order. The different reason codes
needed will be decided during the
design phase.
REQ_874 It should be possible to list available
stock at vendor in the ERP system. This
function is for example needed when
handling backorders.

4 APPENDIX.

 Organization Structure – Client details

 Business Roles and Description – Detailed requirements from Security Team.
 SAP FIORI app ID – SAP FIORI Apps Reference Library
 Master data elements needed to support Business scenario – Client Details
 Related systems – Currently used system data from Hitech - Global
 Source system – Major data sources for conversion - Currently used system data from Hitech-Global.
 Process ID, Process Name and Key Process Flows – SAP Best Practices for SAP S/4 HANA Cloud,
Public Edition.

Sensitivity: Internal
Sensitivity: Internal
Sensitivity: Internal