SAP SRM Tutorial
SAP SRM Tutorial
SAP SRM Tutorial
The questions in this FAQ were selected from the questions and answers that were
discussed during the course “Procurement Transformation with SAP Ariba and
SAP S/4HANA” offered on the openSAP platform held from November 21 through
December 20, 2017.
12 Business Case and Value of Procurement 25 Data Security and Data Centers
Transformations
26 Other Questions
14 Procurement Transformation Strategy
and Road Map from SAP
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
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PROCUREMENT QUESTIONS ABOUT SAP S/4HANA®
Is the SAP Fiori® app No. The SAP Fiori app “Manage Contract” adds capabilities. With the app,
“Manage Contract” just users can create, display, and edit purchase contracts. When the app is
a new user interface started, the system applies the user-defined selection filter to show pur-
for the operational chase contracts applicable for that user. The user is shown consumption
contracts functionality percentage, validity, approval status, and the approver when applicable.
in SAP® ERP Central Users can renew and delete purchase contracts directly from the search
Component (SAP ECC)? results list. Templates can be defined and used to create new purchase
contracts, which eliminates the need to enter master data manually. In a
purchase contract, in addition to master data, the user can view notes,
attachments, and embedded analytics specific to contract consumption
and contract leakage. Support for a central purchase contract is delivered
with SAP S/4HANA® Cloud. It enables users to create a central purchase
contract in SAP S/4HANA Cloud and distribute it to local back-end sys-
tems (starting from the SAP ERP application, release 6.06). Standard
integration of the SAP Ariba Contracts solution with purchase contract
functionality in SAP S/4HANA is not enabled, but it is planned and on the
road map for the solution.
Is the SAP Fiori Yes. The “Procurement Analytics” app was initially delivered with
app “Procurement SAP S/4HANA, release 1511, and addressed 16 KPIs. It was enhanced for
Analytics” available releases 1610 and 1709. Currently, it addresses 25 KPIs, various analytical
for all versions of list pages, and a design studio report for spend. To access information
SAP S/4HANA? about the KPIs a specific SAP Fiori app addresses, visit the SAP Fiori apps
reference library.
Can the custom reports Yes, but they must be adjusted. When upgrading to SAP S/4HANA, the
in SAP ECC be used report execution transaction can be used through the SAP GUI interface.
after an upgrade to There is no need to build a tile with the SAP Fiori user experience (UX) for
SAP S/4HANA? those reports. However, the customer must determine whether the same
database table structures are still in place and can be used. The customer
must also keep in mind that during an upgrade, structural changes will be
made to the financial accounting and inventory management software.
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Can a release strategy For service entry sheets, no. For purchase orders (POs) and purchase
set in SAP S/4HANA, requisitions (PRs), yes. No release strategy is available for the service
release 1610, for POs, entry sheet. However, release strategies for POs and PRs are supported
PRs, and service entry in both releases. If a customer set up a release strategy for POs and PRs
sheets be activated in in release 1610, it should work in release 1709. A release strategy is set up
SAP S/4HANA, release in customizing.
1709?
Can the procurement No. Filters are visible by default for supplier, material, material group,
overview screen in purchasing category, purchasing group, and purchasing organization.
SAP S/4HANA filter by Individual filters can be switched on with “adapt filters,” for example, for
account assignment plant and company code. However, a filter for account assignment is not
plus company for users currently available.
with roles for multiple
companies?
Will midsize clients Yes. SAP S/4HANA provides basic self-service procurement capabilities
need SAP Ariba for catalog buying and free-text items. However, this is not the same
Integration Adaptors, feature set that the SAP Supplier Relationship Management (SAP SRM)
powered by Dell Boomi, application or SAP Ariba solutions provide. Customers who want to trans-
for central catalog and form their SAP SRM should review the brochure “Transform Procurement
free-text procurement with SAP S/4HANA and SAP Ariba Solutions.” For customers with low
functionality? indirect spend, the basic capabilities of SAP S/4HANA might be sufficient.
When indirect spend is a significant cost driver, customers should leverage
the SAP Ariba Buying solution integrated with SAP S/4HANA.
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Is a reservation created No. The integration of guided buying functionality with SAP S/4HANA
automatically in creates PRs as a standard capability, but not reservations. Creating
SAP S/4HANA when it reservations is being considered for future releases.
arrives from SAP Ariba
Buying? If yes, is the
integration in SAP ECC
similar to SAP SRM?
Must users be logged in No. Users receive notifications in the notification area of SAP Fiori launch-
to the SAP CoPilot Web pad whether they are logged in to SAP CoPilot or not. However, they must
application to get log in to view those notifications.
notifications from
fellow users? Users of SAP S/4HANA can be invited to chats in SAP CoPilot, and they
can use mobile services to configure push notifications to mobile devices.
A native iOS app is planned for SAP CoPilot, which will receive these push
notifications. Notifications cannot be sent to e-mail accounts.
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What is the difference SAP Ariba Invoice Management enables the processing of invoices –
between the SAP Ariba including coding, approvals, reconciliation with orders, and receipts – up
Invoice Management until the “OK to pay” event is sent to the accounting system. SAP Ariba
solution, the SAP Ariba Payables supports working capital management and leverages payable
Payables solution, (approved and reconciled) invoices to optimize cash flow. SAP Ariba
and the discounting Payables includes support for dynamic discounting, supply chain
capability? financing (reverse factoring), and electronic payments. The discounting
capability is available for SAP Ariba solutions, replacing the Ariba Discount
Professional solution. It allows buyers and suppliers to negotiate discounts
dynamically against early payment based on payable invoices.
How does the invoice It is important to distinguish between invoice capture (performed with
automation process Ariba Network by the supplier) and invoice reconciliation and approval
work in SAP Ariba (performed with SAP Ariba Invoice Management as an internal process
solutions? of the buying organization). Invoice capture with SAP Ariba solutions is
ideally performed with smart e-invoicing, where suppliers create their
invoices on Ariba Network. Invoice reconciliation and approval can be
performed in SAP Ariba Invoice Management or SAP S/4HANA.
Process diagrams and test scripts are available for the integration of
SAP S/4HANA Cloud (and SAP S/4HANA) with SAP Ariba solutions. The
diagrams show the process flow from purchase order to invoice, and from
invoice to payment (with automated dynamic discount management),
including steps you can automate. The diagrams also indicate which
process steps are optional. For PO-to-invoice automation, check out
scope item J82. For invoice-to-payment and discount management,
check out scope item 19O.
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How can I get access Customers can access the SAP Ariba Start Sourcing solution free to try
to SAP Ariba solution sourcing events. Many videos posted on YouTube LLC are available that
features to start explain the features of SAP Ariba solutions, including guided buying and
practicing? supplier management and supplier risk and Ariba Network. Customers
can take advantage of additional services for supplier relationship
management and access a transformation survey for SAP SRM. For
taking part in the survey, we offer you a remote call in which we explain
SAP’s digital procurement strategy.
Can the guided buying Yes. The guided buying capability for SAP Ariba solutions is available with a
capability be deployed native interface for SAP S/4HANA. Guided buying is part of the SAP Ariba
for procurement Procurement solution. It guides a requester from the start of the buying
performed in process to the end. It takes into account company policies, preferred sup-
SAP S/4HANA? pliers, workflows, catalog content, and spot buying. It also provides a great
user interface. SAP S/4HANA offers operational procurement functionality
that covers the procurement process from request (both catalog and
noncatalog requests) to invoice. We plan to combine the guided buying
capability with the SAP S/4HANA solution for central procurement to
support a hub scenario with multiple back-end systems running SAP ECC
or SAP S/4HANA. The functionality is planned for the end of 2018.
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Can access to the Yes. The Spot Buy capability can be restricted to certain users, parts of
Spot Buy capability be an organization, or specific roles. It’s possible to restrict certain product
restricted to selected groups to make sure items that belong to these groups do not show up in
users? Can spot buy of search results. Restrictions on value can also be set. It’s a matter of making
an item be prevented? sure these restrictions are leveraged to prevent overlap with catalogs.
Is the Spot Buy included Yes. The Spot Buy capability is:
in the subscription to •• Included in licenses of SAP Ariba Buying, SAP Ariba Buying and Invoicing,
SAP Ariba Buying? and the SAP Ariba Spot Buy Catalog solution
•• Licensed as the stand-alone solution SAP Ariba Spot Buy Catalog
Is the supplier risk Supplier risk is a standard capability of SAP Ariba solutions. However, the
management solution SAP Ariba Supplier Risk solution requires its own license.
a standard part of
SAP Ariba solutions, or
does it require different
licenses?
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When raising a catalog Yes. In the guided buying capability, the catalog order can be linked to the
order in guided buying, supplier contract. The contract in the SAP Ariba solution shows you the
does contract spend “consumption” total and history of the orders of total spend.
get released against
the contract? Where
is the contract
maintained?
Could you please Ariba Network serves as front-end, sell-side software, enabling any back-
explain the difference end procurement or finance application to engage and collaborate with
between SAP Ariba suppliers. The back-end solution could be a third-party solution, an
solutions and SAP Ariba solution, or another SAP solution, such as SAP S/4HANA (as
Ariba Network? shown in unit 4 of week 1, slide 3) or SAP SRM. These back-end solutions
can also send documents and information to suppliers through Ariba
Network. SAP Ariba solutions cover your “buy-side” user experience for
guided buying, procure-to-pay, sourcing, and contract management.
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SAP Ariba Contracts supports contract compli- A third option is not to use an SAP Ariba solution
ance, applying terms and conditions used in the for operational contract creation. In this case,
procure-to-pay process supported by SAP Ariba SAP S/4HANA supports creation of local ERP
solutions. Contract compliance allows a buying contracts and can use these as source of supply
organization to create a contract-terms docu- in purchase requisitions and purchase order
ment in SAP Ariba solutions. Contract-terms processes running in SAP S/4HANA. These types
documents are rich in functionality (offering of operational contracts are typically local to a
more functionality than contracts functionality single ERP instance.
in SAP S/4HANA). They can be created on the
supplier, category, catalog, or item level. In The type of setup for operational contract man-
addition, contract compliance support in the agement and architecture really depends on:
SAP Ariba solution can enable processes such •• Organizational requirements
as invoice-to-contract, service procurement, •• Architecture of the landscape (single ERP
and blanket purchase order releases. instance versus multiple ERP instances)
•• Need to facilitate an integrated process with
In all cases, the contract compliance functional- sourcing
ity is a local process of SAP Ariba solutions, •• Need to facilitate an integrated process with
which can include Ariba Network to collaborate more substantial contract management
with suppliers for transactional processing. processes
Contract-terms documents do not control
operational activities in back-end ERP systems.
For this, SAP Ariba solutions offer contract-line-
item documents (CLIDs).
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Is there any cost No. Suppliers can use Ariba Network for free. It’s similar to the model
implication for LinkedIn uses. You can register in LinkedIn, connect, and communicate –
suppliers to sign up all for free; for additional services, you upgrade to a premium LinkedIn
to Ariba Network? membership. It is the same with Ariba Network. Suppliers can sign up,
connect, and transact with their customers for free. To take advantage of
additional services, they upgrade to a subscription level with fees. See the
Web site for Ariba Network for additional information.
Using a light account, Yes. A supplier using a light account has the same basic user experience
besides getting an as a supplier using a full account when it comes to using the portal to
e-mail does the sup- process POs, follow up on transactions, and create non-PO invoices. One
plier see the PO a difference is the supplier can access the PO by clicking in the PO e-mail
customer creates? received. In the portal, the light-account supplier sees only the last 50
Is it shown in the documents, while the full-account supplier can search for any document.
same portal of The full-account supplier has additional functions and menu choices in
Ariba Network? the portal page. When entering data, the controls are the same for both
account users.
How does automation You can post a partial goods receipt on Ariba Network. This functions in the
on Ariba Network work same way it does in SAP SRM and materials management software from
in case of partial goods SAP. It is also possible to send an outbound delivery from Ariba Network.
receipt, return delivery, There is no specific return purchase order available in SAP Ariba solutions.
and down payment?
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Is an SRM add-on for No. The SRM add-on is relevant only for the extended classic scenario. In
Ariba Network available the extended classic scenario, you create POs in SAP SRM, which can be
for customers of the exchanged over Ariba Network. In the classic scenario, the PO is created
classic scenario? in a back-end system to which Ariba Network is already connected for
document exchange.
Does a vendor have Yes. Each supplier account on Ariba Network has a test site, so they can
“buyer” permissions for send their catalogs in a test format first and, after the confirmation from
supplier catalog tests? the buyer, ship them to production.
When raising a ficti-
tious PO, which system
is used?
How do you define The “sell” side for supplier management is the set of activities conducted
sell-side supplier by the seller or supplier. The activities can include:
management? •• Filling in profile data, company name, contact details, addresses (for
“ship from” information), and optional factor information for payment
•• Providing information on products offered and regions served, which
allows the seller to be included in selections made through the SAP Ariba
Discovery solution
•• Answering questionnaires from the seller for buyer qualification
•• Providing documents, such as certifications
•• Supplying legally mandatory data for legal e-invoicing, such as VAT
numbers in Europe or invoice number ranges in Hungary
•• Collaborating online to resolve issues, for example, involving quality
or risk
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What major benefits There are four key reasons to transfer from SAP SRM to SAP Ariba solutions
will an organization see or SAP S/4HANA:
after transforming from •• Innovation: All new procurement capabilities and new developments,
SAP SRM to SAP Ariba such as embedded machine learning, will be available in SAP Ariba solu-
solutions? tions and SAP S/4HANA, which gives huge process benefits.
•• User experience: The improved user interface of SAP Ariba solutions and
SAP S/4HANA represents a big step forward in increasing user adoption.
•• Total cost of operations (TCO): There is a good business case for running
a cloud system, which leads to reduced TCO.
•• Collaboration: Using Ariba Network is a huge step forward in supplier col-
laboration because it is the biggest business-to-business network in the
world. All new innovations today use a global network for connectivity and
collaboration. For a detailed look at the specific benefits, please review
“Transform Procurement with SAP S/4HANA and SAP Ariba Solutions.”
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Finally, SAP Ariba solutions are poised to support the future of procure-
ment. You receive innovations on a monthly basis. In these times of digital
transformation, modern procurement organizations should consider
moving to innovative procurement solutions – SAP Ariba solutions –
rather than relying on on-premise solutions in maintenance mode, which
SAP SRM represents.
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Is a real-time budget Real-time budget check functionality is in limited availability release. The
check available as part strategy is to eventually provide this functionality in the SAP ERP applica-
of standard SAP Ariba tion, SAP S/4HANA, and SAP S/4HANA Cloud.
solution functionality,
or is it an extension to Real-time budget check functionality is in limited availability release in a
existing functionality? full integration scenario with the guided buying capability for SAP Ariba
solutions and SAP S/4HANA Cloud. An OData API for SAP S/4HANA
Cloud is available for purchase requisitions, including the budget check.
Check it out on SAP API Business Hub.
Do SAP Ariba solutions Not exactly. At SAP, we phase out products by withdrawing them from our
support functions in price list but maintaining them according to our product availability matrix.
SAP SRM and the The matrix shows the end of mainstream maintenance for enhancement
SAP Supply Network package 4 for SAP SNC to be December 31, 2025. No immediate action
Collaboration is required for existing customers of SAP SNC. On the other hand, the
(SAP SNC) appli- SAP Help Portal site shows that as of November 2017, the SAP Integrated
cation in cloud and Business Planning solution was integrated with Ariba Network and the
on-premise models? SAP Ariba Supply Chain Collaboration for Buyers solution. Our strategy
reflects our intention to give our customers a choice and a path forward
and upward with innovative, cloud-based solutions.
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What is the future Invoice management functionality in SAP Ariba solutions – specifically,
role of the invoicing the SAP Ariba Buying and Invoicing solution and the SAP Ariba Invoice
feature in SAP Ariba Management solution – is central functionality for customers with multi-
solutions, considering ple back-end ERP systems from different software providers. This could
SAP S/4HANA provides be the case, for example, for an accounts-payable shared-services center.
invoicing capabilities? Invoicing will remain part of Ariba Network and SAP Ariba solutions in the
future. Depending on your situation, you can manage invoices in SAP Ariba
solutions, in SAP S/4HANA, or using a combination of the two.
Could you share a road Yes. To review road maps for SAP Ariba solutions, please visit the road
map with the different maps Web page for SAP solutions. Once there, select Products. An option
modules of SAP Ariba for procurement and networks is available to view road maps.
solutions?
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Is there documen- For native integration with SAP Ariba solutions, you will find four scope
tation on integrating items with SAP S/4HANA, release 1709:
SAP S/4HANA, release •• SAP Ariba Sourcing (scope 1A0) for operational sourcing integration
1709, and SAP Ariba •• Integration of the SAP Ariba Commerce Automation solution (J82) for
solutions? Does inte- use with automated digital exchange of procurement documents from
grating master and purchase order to invoice between buyers and suppliers in Ariba Network
transaction data •• Quote automation integration (scope 1L2) for quick price checks and
reduce costs? updates with selected suppliers
•• Integration of the SAP Ariba Payables solution (scope 19O) for use with
payment advice and dynamic discounting
•• Guided buying capability of SAP Ariba Buying (scope 2NV) for use in
smart and elegant buying (in limited availability release)
For business partners, check out the SAP Help Portal site on master
data integration for business partner. For procurement-specific master
data replication, check out the SAP Help Portal site on master data
replication for procurement. You can also access comprehensive help
on SAP S/4HANA.
Can SAP Ariba solu- Yes. SAP Ariba solutions can be integrated with the SAP Master Data Gov-
tions be integrated with ernance application, Supplier, using vendor business partner functionality.
the SAP Master Data
Governance, Supplier,
application?
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Is a standard integra- No. Customers wanting to integrate their SAP SRM with SAP S/4HANA
tion available to can do so. SAP Note 2229738 provides more information. Despite this
integrate SAP SRM support for integration, we advise customers with this kind of architecture
with SAP S/4HANA? to draw up a transformation plan for the midterm and the long term.
SAP Ariba solutions and SAP S/4HANA have a joint road map. It’s impor-
tant to familiarize yourself with how to leverage the added value of both
solutions in the best way for your company strategy. Visit the Web site for
SAP Ariba solutions for more information on how SAP Ariba solutions and
SAP S/4HANA complement each other.
Does the cloud integra- Yes, it works in real time. The cloud integration gateway is the recom-
tion gateway capability mended way to integrate the SAP ERP application and SAP S/4HANA
work in real time? Can with SAP Ariba solutions and Ariba Network.
I use the capability for
real-time transfer of Almost. The cloud integration gateway’s connectivity covers transactional
transactional data? data in near-real time. If they prefer, customers can continue to use their
established on-premise middleware as a security buffer in the firewall to
route messages, but not for transformations or mapping. All mappings
and transformations occur within the cloud integration gateway.
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What standard adapt- To integrate SAP SRM with SAP Ariba solutions, we provide three standard
ers can be used to integration capabilities. They cover integration with Ariba Network and the
integrate SAP Ariba SAP Ariba Catalog solution using the open catalog interface (OCI). They
solutions with SAP ECC also cover integration of the cockpit for the SAP Sourcing application with
or SAP SRM? SAP Ariba Discovery and SAP Ariba Sourcing.
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When supplier informa- No. Currently only the bids that were awarded are transferred from
tion is lost during a SAP Ariba solutions to contract or info records in SAP S/4HANA to continue
bidding process, does your operational procurement process. There is no short-term plan to trans-
that data go back to fer unsuccessful bids to the back-end system. The sourcing history stays in
SAP S/4HANA? SAP Ariba Sourcing. That way you keep the “operational” system clean.
Will SAP Ariba solu- No. However, for SAP S/4HANA, there is a concept called vendor as
tions be enhanced to business partner to maintain data on the level of company code and pur-
support plant-specific chasing organization. In SAP Ariba Buying, we need to map vendors with
vendor master data plants, purchasing organization, and addresses. In SAP S/4HANA, the
in the procurement business partner model will be used for vendor master data.
process?
Does SAP deliver Ariba Network offers supply chain collaboration capabilities, such as
integrations for supply schedule agreements, forecasting, stock levels, quality notifications,
chain collaboration purchase order confirmations, goods receipt, and service entry sheets
processes between on PO. These are integrated with the back-end system running SAP ECC
Ariba Network, or SAP S/4HANA.
SAP ERP, and the
SAP Advanced Planning
and Optimization
component?
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Do SAP Ariba solutions No. As ERP software, SAP S/4HANA includes procurement and purchasing
have features similar features. A detailed description of how SAP S/4HANA and SAP Ariba solu-
to the purchasing and tions complement each other to digitally transform procurement, finance,
procurement feature and supply chain processes can be found in the data sheet “SAP Ariba
in SAP S/4HANA? Solutions and SAP S/4HANA: The Path to Procurement Transformation.”
Must vendors register Suppliers can be added to a request for quotation (RFQ) from SAP Ariba
first in SAP Ariba Sourcing. When SAP SRM receives the RFQ response containing these sup-
solutions, then set up pliers, it registers the new suppliers with the original RFQ. New suppliers
as a business partner in must be enabled and mapped in both Ariba Network and in the customizing
SAP SRM, or is it the for SAP SRM. Technical details can be found in the buyer’s guide.
other way round?
Can the guided buying No. At this point we have no option to create a reservation on available
capability use the stock in SAP ECC from the guided buying capability as standard function-
master data manage- ality. We do have this specific capability on our road map.
ment catalog to place
reservations on ware-
house stock through
SAP ECC?
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Can a stand-alone, Yes. We support a stand-alone integration. Because we can upload account-
hybrid, or classic sce- ing data to the system, a permanent integration with a back-end ERP system
nario be integrated with is not needed. The normal integration scenario supported by SAP Ariba
SAP Ariba solutions? Buying is the extended classic scenario, where POs are created in SAP Ariba
Buying. In the classic scenario, the PR is created by SAP Ariba Buying in
SAP ERP or SAP S/4HANA. The classic scenario for SAP S/4HANA Cloud,
release 1802, is in limited availability. The classic scenario for SAP S/4HANA
is planned for Q4 2018. Refer to the Technical Scenarios for integration
information for SAP SRM.
When using guided Several options are available. Option A: With the guided buying capability,
buying, does approval takes place in the SAP Ariba solution, but the PO can be copied
SAP S/4HANA store to the back-end system running SAP S/4HANA. This is similar to the
the PR for approval or extended classic integration scenario in SAP SRM. Option B: When using
does the PR remain operational procurement self-service requisitioning in SAP S/4HANA (not
for approval in the guided buying), shopping cart approval takes place in SAP S/4HANA and
SAP Ariba solutions? the PO. Option C: Planned for 2018, this option has the guided buying
capability starting in the SAP Ariba solution, with the approval flow occur-
ring there or in SAP S/4HANA, with the operational procurement process
continuing in SAP S/4HANA. Option D: Planned for 2018, this option has a
central procurement hub. Guided buying starts in the SAP Ariba solution,
with approval taking place there or in SAP S/4HANA for central procure-
ment. The PO is handled in one of the back-end systems (SAP ECC or
SAP S/4HANA), which are linked to the central procurement solution.
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Can the catalog man- No. A master data management (MDM) catalog is not part of SAP S/4HANA.
agement functionality However, SRM MDM catalogs can be connected the way all other OCI-
of the SAP NetWeaver® capable third-party catalogs and SAP Ariba Catalog are connected. The
MDM component, maintenance for MDM catalog usage in an SRM scenario will be supported
release 7.1 SPS 17, until 2025. SAP NetWeaver MDM is the solution of choice for catalog man-
be integrated with agement after maintenance for the MDM catalog expires.
SAP S/4HANA and
SAP Fiori® UX?
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Can you have a hybrid Yes. An example is indirect spend operational procurement in SAP S/4HANA
solution for indirect and sourcing and contract management for indirect spend in SAP Ariba
spend? solutions. Further variants are possible.
Do SAP Ariba solutions SAP Ariba solutions can be integrated with multiple systems running
support multiple SAP ERP or SAP S/4HANA. SAP offers packaged integration through
back-end connectivity SAP Ariba Cloud Integration Gateway to customers who have a subscrip-
options, or can they tion for SAP Ariba solutions.
communicate with
only one instance of What is new is that SAP S/4HANA for central procurement (formerly known
SAP S/4HANA that as SAP S/4HANA for extended procurement) allows customers to imple-
acts as a hub? ment a hub function, enabling them to manage their self-service procure-
ment operations centrally. This central procurement hub can sit on top of
multiple instances of SAP ERP and SAP S/4HANA. Users perform their
tasks centrally in the hub. The operational results – such as a purchase req-
uisition – are exchanged with the instance of SAP ERP or SAP S/4HANA
associated with that user. Planned for Q4 2018 is integrating SAP Ariba
Buying, including the guided buying capability, with SAP S/4HANA for
central procurement. This will mean that users can leverage the superior
usability and the user guidance provided by the SAP Ariba solution. Once
the task is finished, a PR is created in SAP S/4HANA for central procure-
ment and transferred to the correct underlying back-end system – SAP ERP
or SAP S/4HANA – along with accounting and other information. Similar
integrations are on the road map for other procurement objects, such as
purchase orders and contracts.
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Should critical parts Critical parts could be procured in a way similar to supply chain collabora-
start a procurement tion, where suppliers deliver raw material or semifinished goods to a man-
process, a maintenance ufacturer once or multiple times a day, depending on schedule agreement
process when things and releases. However, having a preventive maintenance policy in place for
break, or a preventive critical items is important and can be assisted by sensors and predictive
maintenance process analytics for preventive maintenance. Maintenance services and parts
before things break? could also be contracted out. Keeping spare parts in stock is still a good
business practice for spare parts that take a long time to ship. However,
emerging technologies such as 3D printing and additive manufacturing
are driving business models around replacing in-stock spare-part manage-
ment with on-demand printing and delivery. Check out these two logistics
companies for examples:
•• FedEx Corporation
•• United Parcel Service Inc.
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How can I access the You can access the white paper on data protection and data security in
white paper on data several languages. Data security details about cloud service status can be
protection, data found under the security section.
security policies,
and certificates for
SAP Ariba solutions?
I know you have a data No. As of May 2018, SAP does not run data centers in the UK. So far, the
center in the EU, but is first round of negotiations on Brexit has shown that the UK remains bound
“Brexit” affecting data to the regulations and legal framework of the EU until any explicit laws to
sharing in a way that the contrary come into effect. So for the time being, there is no immediate
requires you to have need to establish a separate data center for the UK, as EU law still applies
one in the UK? to the UK. See the Web page on cloud service status for more information
about all data centers of SAP and for SAP Ariba solutions specifically.
Is there a data center As of December 2017, SAP has no cloud data center in South Africa. See
in South Africa? If so, the Web page on cloud service status for more information about all data
where would the per- centers of SAP and SAP Ariba solutions specifically.
sonal data be stored?
Can global users No. You must decide which data center to use for your deployment scope.
choose a cloud data Then all users will work on that instance in that data center. You can set
center in the country up separate instances of SAP Ariba software, but those instances will be
nearest their location, independent of each other and you would have to ensure integration,
or must all users log on leveraging the integration tool set from SAP.
to a single instance of
SAP Ariba software?
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What are the key The “ECC” in SAP ECC stands for “ERP central component,” which is the
differences between technical core component of the SAP ERP application. The successor of
SAP ECC and SAP ERP is SAP S/4HANA, which runs on the SAP HANA® business data
SAP S/4HANA? platform and is designed specifically for in-memory computing, which
makes it possible to execute analytics in the same system. SAP S/4HANA
is on-premise software; SAP S/4HANA Cloud is deployed in the cloud.
A hybrid model is possible, with SAP ERP running on premise or in a
private cloud. Refer to ERP and Digital Core and Proven, time-tested
on-premise ERP for more details.
Is SAP S/4HANA more The new database structure in SAP S/4HANA makes the software much
mature than SAP ECC faster for operational analytics. This means SAP S/4HANA can offer
in terms of handling of more procurement capabilities than SAP ECC. SAP S/4HANA has an
procurement analytics improved user interface based on the SAP Fiori UX. In SAP S/4HANA,
and integration with dashboards can be easily created that show key figures and activities and
cloud and SAP Ariba that support exception-based management, something SAP ECC does
solutions? not offer. Regarding integration, SAP invests heavily in the integration of
SAP Ariba solutions with SAP S/4HANA. It also invests in the integration
of SAP Ariba solutions with SAP ECC to support its installed base of
SAP ECC. The SAP Ariba Cloud Integration Gateway solution manages the
integration between SAP Ariba solutions and SAP ECC or SAP S/4HANA.
SAP Ariba Cloud Integration Gateway provides simple system integration
tools for you to connect your back-end systems with your trading partners
quickly.
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Where can I find the 25 They can be found in the SAP Fiori apps reference library. You can search
real-time procurement the library for all the SAP Fiori apps for the strategic buyer, for example, to
KPIs mentioned in the view their KPIs.
course “Procurement
Transformation
with SAP Ariba and
SAP S/4HANA”?
What is considered the You may be interested in taking a look at the digital procurement readiness
baseline to assess a assessment and the digital supply chain readiness assessment. We also
client’s digital procure- have specialists who can deliver a procurement assessment that analyzes
ment maturity? the as-is situation of the customer and matches it to the current and future
capabilities of SAP S/4HANA and SAP Ariba solutions. The outcome of
the assessment could be a “heat map” on the process and architecture
level, showing weak spots and areas where improvements could most
profitably be introduced.
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SAP CLM comes with standard tools for creating scripts and queries within
SAP CLM that support the extraction of contract documents, attachments,
and metadata, which can be uploaded to SAP Ariba Contracts.
With paper documents Please direct state, local, and other government agencies to the Web site
still the basis of legality on security practices at SAP. It links to the SAP Cloud Trust Center site
in some countries, how and to details on the approach SAP follows concerning security, business
can we convince public continuity, cyber threats, and data protection. Based on experiences with
sector companies that governments – from federal and state levels to local governments and
SAP Ariba solutions universities – SAP has learned that their attitude toward virtualized and
are secure? cloud-based solutions has changed significantly. They now tend toward
the newest cloud and mobile technologies over paper-based processes
wherever regulations allow. The top-down mandated preference of
cloud solutions in programs such as FedRAMP in the United States has
boosted adoption considerably. For more information, see “Why the U.S.
Government Is Moving to Cloud Computing.” Many public authorities
have come to understand that cloud-based software is, in most cases,
more secure than their legacy on-premise systems. Where indicated, spe-
cial government clouds have been made available by cloud providers such
as Amazon Web Services Inc. Modern authentication and identification
procedures in conjunction with digital signatures further promote the
spread of digital and cloud-based government apps. When you encounter
specific situations where government agencies hesitate to adopt cloud-
based solutions, please let us know where we can help.
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In India, hard-copy A way to address this is to create supplier invoices in SAP S/4HANA
invoices must be sub- that were created in the SAP Ariba solution. In SAP S/4HANA, assign the
mitted to start the invoices the Held status (standard configuration). This causes the pay-
payment process, ment process to ignore them. The invoices can be set to Released once the
although we can submit physical invoices are received from the supplier, and payment can then be
digital invoices through initiated. This would require manual intervention by the accounts payable
SAP Ariba solutions. team for releasing the invoice documents, but not for creating them.
Any thoughts on this?
How can small-scale To join Ariba Network, a supplier requires an e-mail address. An Indian
suppliers in India get supplier can self-register or be invited to join by a buying organization, the
started with Ariba same as it is worldwide. Suppliers are screened by the supplier evaluation
Network? What does software, and some suppliers may be blocked from joining. Ariba Network
it cost to join? What offers a “light account” registration option that allows the supplier to per-
is the minimum infra- form basic supplier activities through e-mail and the portal with no pricing
structure required? implications. A computer and an Internet connection make up the basic
infrastructure required.
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When is it best to use SAP Ariba Spend Analysis provides prepackaged spend data classification,
SAP Ariba Spend normalization, harmonization, and optional enrichment, for example, with
Analysis, and when is it Dun & Bradstreet. As such, it is recommended for use when you have dis-
best to use the spend parate, incomplete information sources or need to analyze nonmanaged
reporting functionality spend. Each procurement function within SAP S/4HANA and SAP Ariba
in SAP BW/4HANA? solutions provides operational reporting. Reporting functionality is embed-
ded in the software and can be extended and enriched through custom
fields or calculations. SAP BW/4HANA is available as an on-premise
group-reporting tool for collecting data from various sources.
How long does it take The project timeline varies based on the scope of software to be deployed.
to perform a transfor- Some customers have gone live in as little as six months. Others follow a
mation from SAP SRM phased approach, with full transformation completed over a 12-month to
to SAP Ariba solutions 18-month time frame. To determine the exact timeline and approach for a
and SAP S/4HANA? specific customer, it’s best to prepare a landscape and functional blue-
printing assessment.
LEARN MORE
•• Read the data sheet “SAP Ariba Solutions and SAP S/4HANA: The Path to Procurement Transformation”
•• Access “Design the Future of Your Supplier Relationship Management”
•• Take part in an Online Survey
•• Contact Us
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