SAP S/4 HANA is SAP's next generation business suite, it is not a legal successor of any SAP Business Suite Product. It is a new product completely built on one of the most advance in-memory platform today - SAP S/4 HANA - and modern design principles with the SAP Fiori user experience (UX). SAP making, business processes and models) and innovations (Internet of things, Big Data, business networks and mobile-first) to help business Run Simple in the digital economy.
The Simplification List is the collection of single "Simplification Items" with the focus on what has to be considered through an Implementation/ System Conversion Project from SAP ERP to SAP S/4 HANA on-premise.
Per Simplification Item the following information will be provided:
- Description, Business Impact, and Recommendations
- SAP Notes (for related Pre-Checks or Custom Code Checks)
The Simplification List in SAP S/4 HANA in Material Management
Here, I am sharing some of the Simplication for SAP S/4 HANA related to Procurement and Inventory Management.
1. Master Data
a. Business Partner Approach
b. Material Number Field Length Extension
c. Foreign Trade in Material Master
d. Material Type - SERV
2. Logistic Batch Management
3. Output Management Adoption in Purchase Order
4. Classic MM-PUR GUI Transaction replacement
5. Foreign Trade within SAP S/4 HANA Procurement
6. Data Model in Inventory Management
7. Availability of Transactions in MM-IM
8. Material Ledger Obligatory for Material Valuation
9. Material Valuation - Statistical Moving Average Price
10. Legacy System Migration Workbench.
1. Business Partner Approach
Business Partner is now capable of centrally managing master data for business partners, customers and vendors. Business Partner is the single point of entry to create, change and display master data for Business Partner, Customers and Vendors
Transaction code for Business Partner - BP
There is no specific user interface for Customers/ Vendors from SAP Business Suite. Following transactions like XD01/ 02/ 03, VD01/ 02/ 03, XK01/ 02/ 03, FK01/ 02/ 03 are not available in SAP S/4 HANA on-premise.
We also have an option to align the ID (number) of Business Partner and Customers/ Vendors. The same number can be used or may not be used for Business Partner and Customer/ Vendor
Following are the roles for Business Partner :
FLCU00 FI Customer
FLCU01 Customer
FLVN00 FI Vendor
FLVN01 Vendor
2. Material Number Field Length Extension
SAP S/4 HANA on-premise can support a material number with 40 characters. The client has to decide if and when to switch on the extended material number functionality.
In the Customizing activity, you can activate the use of the following extended field in Extended material number. With this activation, the system uses only the extended version of the field. The extended material can have a maximum length of 40 characters.
a. Activate Extended Fields for Material Master:
SPRO Path -> SAP Ref. IMG -> Cross Application Components -> General Application Functions -> Field Length Extension -> Activate Extended Fields
Check the box for "Extended Material Number" before this please read the SAP Note - 2232396
b. Define Length for Material Master
SPRO Path -> SAP Ref. IMG -> Logistics General -> Material Master -> Basic Settings -> Define Output format of Material Numbers or T. Code - OMSL
Maintain the length "40" for the material master.
3. Foreign Trade in Material Master
Currently there are two software services for international trade transactions - Foreign Trade and Global Trade Service. Foreign Trade is a part of the normal SD. GTS is the external service that can be installed on an additional instance. With SAP S/4 HANA on-premise, the Foreign Trade functionality will not available because SAP Global Trade Services (GTS) is the successor for the business requirement. SAP GTS can be natively integrated with S/4 HANA. Additional functionalities for Import and Export Management are available with SAP GTS.
4. Material Type SERV
A new Material Type - SERV for services is introduced for Product Master in SAP S/4 HANA for simplification purposes.
Supported User Department - Basic Data, Sales, Purchasing and Accounting
5. Logistics Batch Management
The following transactions related to Logistic Batch Management are not available in SAP S/4 HANA on premise: MSC1/ MSC2/ MSC3/ MSC4
The following transactions are still available in SAP S/4 HANA:
MSC1N - Create Batch
MSC2N - Change Batch
MSC3N - Display Batch
MSC4N - Display Change Documents for Batch
6. Output Management Adoption in Purchase Order
A new Output Management has been introduced in the SAP S/4 HANA. The completed configuration differs from the configuration that is used when Output Management is based in NACE and table NAST.
The configuration of Output Management is based on BRF+. In SAP S/4 HANA, the target architecture is totally based on Adobe document server and Adobe Forms only. For the form determination rules BRF+ functionality is used.
Output Management based on NAST is no longer supported for new document in the Purchase Order.
The new Output Management supports only the Channels PRINT, EMAIL, XML (for Ariba Network Integration) and IDOC (for on-premise)
It is not mandatory to use the new Output Management, we can use the old NAST configuration.
SPRO Path -> SAP Ref. IMG -> Cross Application Components -> Output Control -> Manage Application Object Type Activation
Choose "Application Inactive" in Status, for which you wan to switch back to NAST.
Refer SAP Note - 2228611 for Output Management in SAP S/4 HANA.
7. Classic MM-PUR GUI Transaction Replacement
There are some transactions are not available in the SAP S/4 HANA on-premise:
ME21 ME22 ME23 ME24 ME25 ME26 ME27 ME28 ME51 ME52 ME53 ME54 ME59 MR01 MR1M
And also there are some BAPI's for purchasing not available for SAP S/4 HANA
BAPI_PO_CREATE/ BAPI_REQUISITION_CREATE/ BAPI_PO_GETDETAILS
8. Foreign Trade within SAP S/4 HANA Procurement
Currently there are two software services for international trade transactions: Foreign Trade and SAP Global Trade Service (GTS). Foreign Trade is the part of the standard Material Management (MM).
SAP GTS is the external service that can be installed on a separate instance. With the SAP S/4 HANA on-premise, the foreign trade will not be available because SAP Global Trade Service is the successor for the business requirement. Additional functions for import and export management are available with SAP GTS.
9. Data Model in Inventory Management
With SAP S/4 HANA this data model has been changed significantly. The new de-normalized table MATDOC has been introduced which contains the former header and item data of a material document as well as lots of further attributes. Material Document data will be stored in MATDOC only and not anymore in MKPF and MSEG
10. Availability of Transactions in MM-IM
The following transactions for entering and displaying goods movement (material documents) - called "MB Transactions" (below) are not available with SAP S/4 HANA.
- MB01, MB02, MB03, MB04, MB05, MB0A, MB11, MB1A, MB1B, MB1C, MB31, MBRL, MBSF, MBSL, MBST and MBSU.
In SAP S/4 HANA the single screen generalized transaction MIGO is available (Transaction MIGO is available in SAP Business Suite since Release 4.6)
11. Material Ledger Obligatory for Material Valuation
This simplification makes it obligatory to use the Material Ledger in all SAP S/4HANA systems. When a system is converted to SAP S/4HANA the Material Ledger will be activated if not active already.
Latest trends in material management aim for improved and more flexible valuation methods in multiple currencies and parallel accounting standards while simultaneously reducing required system resources and improving scalability of the business processes. Since the data model of the Material Ledger (ML) module supports these business requirements, it was chosen as the basis for material inventory valuation in the new solution SAP S/4HANA.
It is very important to distinguish between Material Ledger, in its role as an inventory sub-ledger in Accounting, and business feature Actual Costing. Material Ledger, as the inventory sub-ledger, valuates material inventories in multiple currencies and GAAPs in parallel. In addition Material Ledger is a base prerequisite for the use of Actual Costing. With Actual Costing you can valuate your material inventories, work in process and cost of goods sold with weighted average unit costs that are being calculated after the fact by evaluating business transactions of one or several posting periods.
Also other features, e.g. actual cost component split, are provided by Actual Costing.
Even though Material Ledger is become obligatorily active, Actual Costing is not. Activation of Actual Costing is still optional.
12. Material Valuation – Statistical Moving Average Priced
The deactivation of the statistical moving average is not mandatory in SAP S/4HANA, but recommended to achieve a significant increase of transactional data throughput for goods movements. It is important to note that the deactivation is not reversible. The deactivation of the statistical moving average is the consequence of new lock behaviour for materials with price control "Standard". This new lock behaviour does not use exclusive locks anymore. The activation of the new lock behaviour leads to the deactivation of the statistical moving average.
As a result, end users, creating material master data in SAP S/4HANA, have to select one of the following material valuation methods for a material:
• Price control "Standard" that offers a fixed price inventory valuation, no parallel "statistical" moving average valuation. Only dedicated business transactions can change unit costs (e.g. MR21). But a significantly increased transactional data throughput for goods movements can be achieved.
• Price control "Moving Average" with which unit costs of material inventory might be changed by any business transaction, but transactional data throughput is still limited by the exclusive locking.
13. Legacy System Migration Workbench
The Legacy System Migration Workbench (LSMW) can be considered as the target architecture. The available functional equivalent is Data Migration Server (DMIS) and SAP Migration Workbench (MWB).
The Legacy System Migration Workbench is available in SAP S/4HANA in an unchanged manner. The LSMW function is still available / can be used in combination with SAP S/4HANA on-premise.
This blog is the reference to document “S4_OP1511-Simple logistics”
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