... Foreword ... 19

... Preface ... 21

... Target Audience ... 21

... Objective ... 22

... Structure of this Book ... 22

... Acknowledgments ... 25

1 ... Introduction to Sourcing and Procurement ... 27

1.1 ... Procurement from End to End ... 27

1.2 ... Operational Procurement vs. Strategic Procurement in SAP ... 32

1.3 ... Procurement with SAP S/4HANA ... 35

1.4 ... SAP S/4HANA Enterprise Management: SAP's Digital Core ... 42

1.5 ... Summary ... 44

2 ... Implementation Options ... 45

2.1 ... Implementation Overview ... 45

2.2 ... On-Premise SAP S/4HANA ... 55

2.3 ... SAP S/4HANA Cloud ... 66

2.4 ... SAP Activate, SAP Best Practices, and SAP Model Companies: Quick Start Approaches and Materials for SAP S/4HANA ... 69

2.5 ... Summary ... 78

3 ... Organizational Structure ... 79

3.1 ... SAP S/4HANA Enterprise Management Organization Structure ... 79

3.2 ... Organizational Structure Objects ... 83

3.3 ... Company Code, Plant, Storage Location, Purchasing Org, and Purchasing Group Creation ... 87

3.4 ... Summary ... 97

4 ... Master Data ... 99

4.1 ... Material Masters and Material Groups ... 100

4.2 ... Batch Management and Serialization ... 105

4.3 ... Material Master Updates in SAP S/4HANA ... 108

4.4 ... Supplier Master Setup and Supplier Creation ... 111

4.5 ... Business Partner ... 114

4.6 ... Summary ... 130

5 ... Operational Procurement ... 133

5.1 ... Overview ... 134

5.2 ... Requisition-to-Pay Process ... 135

5.3 ... Procurement of Stock, Consumable, and External (Service) Items ... 136

5.4 ... Self-Service Procurement ... 137

5.5 ... Requirement Processing in SAP S/4HANA Sourcing and Procurement ... 148

5.6 ... Configuration for Self-Service Procurement ... 154

5.7 ... Integration with Cloud Applications ... 164

5.8 ... Summary ... 170

6 ... Automated and Direct Procurement ... 171

6.1 ... Automated and Direct Source-to-Pay Processes ... 172

6.2 ... Materials Requirements Planning ... 173

6.3 ... Forecasting and Planning ... 185

6.4 ... Contract and Source Determination ... 192

6.5 ... Configuration ... 211

6.6 ... Integration with SAP Ariba ... 219

6.7 ... Summary ... 221

7 ... Inventory Management ... 223

7.1 ... Inventory Management in SAP S/4HANA ... 224

7.2 ... Stock Management in SAP S/4HANA ... 227

7.3 ... Goods Receipts ... 232

7.4 ... Goods Issues ... 244

7.5 ... Stock Transfers ... 248

7.6 ... Transfer Postings ... 253

7.7 ... Physical Inventory ... 254

7.8 ... Reporting in Inventory Management ... 270

7.9 ... SAP Ariba Integration ... 290

7.10 ... Summary ... 291

8 ... Contracts Management ... 293

8.1 ... Contract Creation ... 294

8.2 ... Contract Consumption ... 299

8.3 ... Contract Dashboard Reporting and Expiry Notification Setting ... 300

8.4 ... Configuration ... 305

8.5 ... Scheduling Agreement ... 309

8.6 ... Customizing Scheduling Agreements ... 312

8.7 ... Legal Content Management ... 315

8.8 ... Customizing Legal Content Management ... 322

8.9 ... Summary ... 337

9 ... External Sourcing ... 339

9.1 ... Sourcing Strategies ... 340

9.2 ... Request for Quotation ... 341

9.3 ... Request for Quotation Configuration ... 350

9.4 ... Flexible Workflow ... 359

9.5 ... Integration with SAP Ariba ... 367

9.6 ... Summary ... 367

10 ... Invoice and Payables Management ... 369

10.1 ... Invoice Processing ... 370

10.2 ... Accounts Payable ... 393

10.3 ... Invoice Collaboration with the Ariba Network ... 407

10.4 ... Summary ... 408

11 ... Supplier Management ... 409

11.1 ... Supplier Discovery, Qualification, and Onboarding ... 410

11.2 ... Supplier Management ... 411

11.3 ... Supplier Evaluation ... 421

11.4 ... Configuration ... 428

11.5 ... Integration with SAP Ariba ... 432

11.6 ... Summary ... 433

12 ... Reporting and Analytics ... 435

12.1 ... Spend V