SAP S/4HANA Architecture
If you’re working with SAP S/4HANA, you need to know the ins and outs of the system. Master SAP S/4HANA’s technical and application architecture with this book! See how the foundation is built: the backend data models, the frontend user experience, the analytics and extension capabilities, integration options, and more. Then learn about SAP S/4HANA’s core application areas, from finance to logistics. Finally, see what SAP S/4HANA architecture looks like in the cloud. Get ready to master SAP S/4HANA from the ground up!
- Understand the technical foundation of SAP S/4HANA
- Explore the architecture of key application areas, including finance, logistics, procurement, and sales
- Learn about SAP S/4HANA Cloud’s unique cloud architecture
You'll learn about:
- Technical Foundation:
See what makes a modern ERP solution. Learn about SAP S/4HANA’s technical backbone, including the underlying programming models. Then walk through core concepts: the SAP Fiori user experience, analytics, intelligent technologies, integration, extensions, and more.
- Business Architecture:
Explore SAP S/4HANA’s line of business landscape. Take a tour of the master data structure and individual application areas like sales, service, sourcing and procurement, logistics, warehouse management, and finance.
- Cloud Considerations:
Pop the hood of SAP S/4HANA Cloud. Discover cloud-specific architecture features, from scoping to outputs to identity and access management. Learn about cloud operations for SAP S/4HANA Cloud, public edition and SAP S/4HANA Cloud, private edition.
Key Highlights:
- Technical and application architecture
- Programming models
- Analytics
- Extensibility
- Integration
- Master data
- Sales and service
- Sourcing and procurement
- Logistics and manufacturing
- Finance and governance
- Identity and access management
- On-premise and cloud
View Full Table of Contents
- Foreword
- SAP S/4HANA: A New ERP Platform
- About This Book
- Acknowledgments
- PART I Foundation
- 1 Architecture Challenges of a Modern ERP Solution
- 1.1 Characteristics of a Modern ERP System
- 1.1.1 Even Higher Performance and Scalability
- 1.1.2 Consumer-Grade User Experience
- 1.1.3 Extensible Architecture
- 1.1.4 Intelligent ERP Processes
- 1.1.5 Simplified and Standardized Implementation
- 1.1.6 Cloud and On-Premise Deployment Models
- 1.1.7 Security, Privacy, Compliance, and Data Isolation
- 1.2 SAP S/4HANA Architecture Principles
- 1.2.1 Stable but Flexible Digital Core
- 1.2.2 Simplification with the Principle of One
- 1.2.3 Open for Innovations through Service Orientation
- 1.2.4 Modularization into (Hybrid) Integration Scenarios
- 1.2.5 Cloud First, but Not Cloud Only
- 1.2.6 Semantic Compatibility to Support Evolution with the Least Possible Disruption
- 1.3 Evolving a Cloud ERP System from the Best Possible Origins
- 1.4 Summary
- 2 Technical Architecture Foundation
- 2.1 Virtual Data Model
- 2.1.1 Core Data Services
- 2.1.2 Naming Conventions
- 2.1.3 Structure of the Virtual Data Model
- 2.1.4 Consumption Scenarios
- 2.2 ABAP RESTful Application Programming Model
- 2.2.1 Defining and Developing Business Objects
- 2.2.2 Defining Business Services
- 2.2.3 Runtime Architecture
- 2.3 Summary
- 3 Simplified Experience
- 3.1 User Experience
- 3.1.1 SAP Fiori
- 3.1.2 User Experience Adoption Strategy
- 3.1.3 SAP Fiori Launchpad
- 3.1.4 SAP Fiori Apps
- 3.1.5 SAP Fiori Elements Apps
- 3.2 Search
- 3.2.1 Search Architecture
- 3.2.2 SAP HANA Search Functionality
- 3.2.3 Enterprise Search Extensibility
- 3.3 Summary
- 4 Intelligence and Analytics
- 4.1 Analytics
- 4.1.1 Embedded Analytics Architecture
- 4.1.2 Embedded Analytical Applications
- 4.1.3 Modeling Analytical Artifacts
- 4.1.4 Analytics Extensibility
- 4.1.5 Enterprise Analytics Applications
- 4.2 Machine Learning
- 4.2.1 Machine Learning Architecture
- 4.2.2 Embedded Machine Learning
- 4.2.3 Side-by-Side Machine Learning Architecture
- 4.2.4 Machine Learning in SAP S/4HANA Applications
- 4.3 Intelligent Situation Handling
- 4.3.1 Example: Contract Is Ready as Source of Supply
- 4.3.2 Technical Background
- 4.3.3 Custom Use Cases
- 4.3.4 Message-Based Situation Handling
- 4.3.5 Intelligent Situation Automation
- 4.3.6 User Experience
- 4.3.7 Use Cases
- 4.4 Summary
- 5 Extensibility
- 5.1 Key User Extensibility
- 5.1.1 Stability Criteria for Extensibility
- 5.1.2 Use Cases across the Software Stack
- 5.1.3 Lifecycle Management
- 5.2 In-Stack Developer Extensibility
- 5.3 Side-by-Side Extensions
- 5.3.1 Introduction to Cloud-Native Applications
- 5.3.2 SAP BTP and Programming Models
- 5.3.3 Integrating with SAP S/4HANA Using the SAP Cloud SDK
- 5.3.4 API Consumption with the SAP Cloud SDK
- 5.3.5 Business Event Consumption in Extensions
- 5.4 Summary
- 6 Integration
- 6.1 SAP S/4HANA Integration Interface Technologies
- 6.1.1 Interface Technologies Overview
- 6.1.2 SAP S/4HANA API Strategy
- 6.2 SAP API Business Hub
- 6.3 Interface Monitoring and Error Handling
- 6.4 Communication Management in SAP S/4HANA Cloud
- 6.4.1 Communication Scenario
- 6.4.2 Communication User
- 6.4.3 Communication System
- 6.4.4 Communication Arrangement
- 6.4.5 Calling Inbound Services with User Propagation
- 6.5 Cloud Connector
- 6.5.1 Cloud Connector Principles
- 6.5.2 RFC Communication with SAP S/4HANA Cloud
- 6.6 Process Integration Technology
- 6.7 Event-Based Integration
- 6.7.1 SAP Event Mesh
- 6.7.2 Business Events Architecture
- 6.7.3 Business Events in SAP S/4HANA
- 6.7.4 Event Channels and Topic Filters
- 6.8 Data Integration
- 6.8.1 CDS-Based Data Extraction
- 6.8.2 Data Replication Framework
- 6.8.3 SAP Master Data Integration
- 6.9 Summary
- 7 Data Protection and Privacy
- 7.1 Compliance Baseline
- 7.2 Definitions and Principles
- 7.2.1 Basics in SAP S/4HANA
- 7.2.2 Data Subject Rights
- 7.2.3 Technical and Organizational Measures
- 7.3 Summary
- PART II Application Architecture
- 8 Master Data
- 8.1 Product Master
- 8.1.1 Product Master Data Model
- 8.1.2 Product Hierarchy
- 8.1.3 Data Migration
- 8.1.4 Product SOAP Service API
- 8.1.5 Product Master Extensibility
- 8.1.6 Self-Service Configuration
- 8.2 Bill of Materials, Characteristics, and Configurations
- 8.2.1 Bill of Materials
- 8.2.2 Classification System
- 8.2.3 Variant Configuration
- 8.2.4 Variant Classes
- 8.2.5 Super BOM
- 8.2.6 BOM with Class Items
- 8.2.7 Variant Configuration Profiles
- 8.2.8 Object Dependencies in Variant Configuration
- 8.2.9 User Interface and Grouping
- 8.2.10 Extensibility
- 8.2.11 High-Level and Low-Level Configuration
- 8.2.12 Embedded Analytics for Classification and Configuration Data
- 8.3 Business Partners
- 8.3.1 Architecture of Business Partner Master Data
- 8.3.2 SAP S/4HANA System Conversion Scenarios
- 8.3.3 Data Protection and Policy
- 8.3.4 Extensibility
- 8.3.5 Business Partner APIs
- 8.4 Summary
- 9 Sales
- 9.1 Architecture Overview
- 9.2 Sales Documents Structure
- 9.3 Authorizations
- 9.4 Sales Inquiries and Sales Quotations
- 9.5 Sales Order Processing
- 9.6 Sales Contracts
- 9.7 Sales Scheduling Agreements
- 9.8 Claims, Returns, and Refund Management
- 9.9 Billing
- 9.10 Sales Monitoring and Analytics
- 9.11 Pricing
- 9.12 Integration
- 9.13 Summary
- 10 Service Operations
- 10.1 Architecture Overview
- 10.2 Business Objects and Processes in Service Operations
- 10.2.1 Field Service
- 10.2.2 In-House Repair
- 10.2.3 Service Contracts
- 10.2.4 Solution Business
- 10.2.5 Interaction Center
- 10.3 Master Data and Organizational Model
- 10.4 Data Model and Business Transactions Framework
- 10.4.1 Business Transactions Framework
- 10.4.2 Data Model
- 10.4.3 Transaction Type and Item Category
- 10.4.4 Common Functions for Service Transactions
- 10.4.5 Virtual Data Model
- 10.4.6 Public APIs
- 10.5 Integration
- 10.5.1 Data Exchange Manager
- 10.5.2 Backward Integration
- 10.5.3 Integration with SAP Field Service Management
- 10.5.4 User Interface Technology
- 10.6 Summary
- 11 Sourcing and Procurement
- 11.1 Architecture Overview
- 11.2 Procurement Processes
- 11.2.1 Direct Procurement
- 11.2.2 Indirect Procurement
- 11.3 Business Objects in Procurement
- 11.4 Central Procurement
- 11.5 Product Sourcing
- 11.6 Enterprise Contract Management
- 11.7 APIs and Integration
- 11.8 Analytics
- 11.9 Innovation and Intelligent Procurement
- 11.10 Summary
- 12 Logistics and Manufacturing
- 12.1 Architecture Overview
- 12.2 Organizational Units
- 12.3 Master Data Objects
- 12.4 Transactional Business Objects
- 12.5 Calculated Business Objects, Engines, and Process Controls
- 12.5.1 Inventory
- 12.5.2 Available-to-Promise
- 12.5.3 Material Requirements Planning
- 12.5.4 Demand-Driven Material Requirements Planning
- 12.5.5 Kanban
- 12.5.6 Just-in-Time Processing
- 12.5.7 Predictive Material and Resource Planning
- 12.5.8 Capacity Planning
- 12.5.9 Production Planning and Detailed Scheduling
- 12.6 Cross-Functions in Logistics and Manufacturing
- 12.6.1 Batch Management
- 12.6.2 Quality Management
- 12.6.3 Handling Unit Management
- 12.6.4 Serial Number Management
- 12.6.5 Inter-/Intracompany Stock Transport
- 12.6.6 Value Chain Monitoring Framework
- 12.7 Logistics Integration Scenarios
- 12.7.1 Warehouse Management
- 12.7.2 Manufacturing Execution Systems
- 12.8 Summary
- 13 Extended Warehouse Management
- 13.1 Architecture Overview
- 13.2 Organizational Structure
- 13.3 Master Data
- 13.4 Stock Management
- 13.5 Application Components
- 13.6 Monitoring and Reporting
- 13.7 Process Automation
- 13.8 User Interface
- 13.9 Technical Frameworks
- 13.10 Warehouse Automation
- 13.11 Summary
- 14 Finance, Governance, Risk, and Compliance
- 14.1 Finance Architecture Overview
- 14.2 Accounting
- 14.2.1 General Ledger
- 14.2.2 Fixed Asset Accounting
- 14.2.3 Inventory Accounting
- 14.2.4 Lease Accounting
- 14.2.5 Service and Sales Accounting
- 14.2.6 Group Reporting
- 14.2.7 Financial Closing
- 14.3 Tax and Legal Management
- 14.4 Financial Planning and Analysis
- 14.4.1 Budgetary Accounting
- 14.4.2 Predictive Accounting
- 14.4.3 Financial Planning
- 14.4.4 Margin Analysis
- 14.4.5 Overhead Cost
- 14.4.6 Production Cost
- 14.5 Payables Management
- 14.5.1 Supplier Invoicing
- 14.5.2 Open Payables Management
- 14.5.3 Automatic Payment Processing
- 14.6 Receivables Management
- 14.6.1 Open Receivables Management
- 14.6.2 Credit Evaluation and Management
- 14.6.3 Customer Invoicing
- 14.6.4 Dispute Resolution
- 14.6.5 Collections Management
- 14.6.6 Convergent Invoicing
- 14.6.7 Contract Accounting
- 14.7 Treasury Management
- 14.7.1 Advanced Payment Management
- 14.7.2 Bank Integration Using SAP Multi-Bank Connectivity
- 14.7.3 Connectivity to Payment Service Providers and Payment Gateways
- 14.7.4 Cash Management
- 14.7.5 Treasury and Risk Management
- 14.8 Central Finance
- 14.8.1 Replication
- 14.8.2 Mapping
- 14.8.3 Accounting Views of Logistics Information
- 14.8.4 Temporary Postings
- 14.8.5 Centralized Capabilities
- 14.8.6 Cross-System Process Control
- 14.9 Finance Extensibility
- 14.10 Governance, Risk, and Compliance
- 14.10.1 Overview of SAP GRC Solutions
- 14.10.2 SAP GRC Solutions and SAP S/4HANA Integration
- 14.11 Summary
- 15 Localization in SAP S/4HANA
- 15.1 Document and Reporting Compliance
- 15.1.1 Architecture
- 15.1.2 Outlook
- 15.2 Localization as a Self-Service for SAP S/4HANA Cloud
- 15.2.1 Components of Localization as a Self-Service
- 15.2.2 Extensibility Scenario Guides and the Community
- 15.3 Summary
- PART III SAP S/4HANA Cloud-Specific Architecture and Operations
- 16 Scoping and Configuration
- 16.1 Reference Content
- 16.2 SAP Central Business Configuration
- 16.2.1 Organizational Setup
- 16.2.2 Business Processes
- 16.2.3 Business Adaptation Catalog
- 16.2.4 Constraints
- 16.2.5 From Scoping to Deployment
- 16.2.6 Reference Configuration Content Updates
- 16.2.7 Localization of Business Configuration
- 16.2.8 Scope-Dependent Technical Objects
- 16.3 Summary
- 17 Identity and Access Management
- 17.1 Architecture Overview
- 17.1.1 Identity Management
- 17.1.2 Authentication
- 17.1.3 ABAP Authorization Concept
- 17.1.4 Identity and Access Entities and Their Relationships
- 17.1.5 Developer Extensibility
- 17.1.6 Identity and Access Management Tools
- 17.1.7 SAP Fiori Pages and Spaces
- 17.2 Managing Users, Roles, and Catalogs
- 17.2.1 Communication Arrangements
- 17.2.2 PFCG Roles and Business Catalogs
- 17.2.3 Management of Users, Roles, and Catalogs by Customers
- 17.2.4 Lifecycle Changes of SAP-Delivered Roles and Catalogs
- 17.2.5 Auditors
- 17.3 Summary
- 18 Output Management
- 18.1 Architecture Overview
- 18.2 Printing
- 18.3 Email
- 18.4 Electronic Data Interchange
- 18.5 Form Templates
- 18.6 Output Control
- 18.7 Summary
- 19 Cloud Operations
- 19.1 SAP S/4HANA Cloud Landscape
- 19.2 Data Centers
- 19.3 Multitenancy
- 19.3.1 System Architecture of SAP S/4HANA
- 19.3.2 Sharing the SAP HANA Database System
- 19.3.3 Sharing of ABAP System Resources
- 19.3.4 Table Sharing Architecture in Detail
- 19.4 Software Maintenance
- 19.4.1 Maintenance Events
- 19.4.2 Blue-Green Deployment
- 19.5 Built-In Support
- 19.5.1 Support Journey without Built-In Support
- 19.5.2 Built-In Support Architecture
- 19.5.3 Comparison of Support Interactions
- 19.6 Summary
- 20 Sizing and Performance in the Cloud
- 20.1 Performance-Optimized Programming
- 20.1.1 Minimal Number of Network Round Trips and Transferred Data Volume
- 20.1.2 Content Delivery Networks
- 20.1.3 Buffers and Caches
- 20.1.4 Nonerratic Performance
- 20.2 Sizing
- 20.2.1 Sizing SAP S/4HANA Cloud, Public Edition
- 20.2.2 Sizing for SAP S/4HANA Cloud, Private Edition
- 20.3 Elasticity and Fair Resource Sharing for SAP S/4HANA Cloud, Public Edition
- 20.3.1 Elastic Scalability
- 20.3.2 Dynamic Capacity Management
- 20.4 Sustainability
- 20.5 Summary
- 21 Cloud Security and Compliance
- 21.1 Network and Data Security Architecture
- 21.1.1 Access Levels
- 21.1.2 Resource and Data Separation
- 21.1.3 Resource Sharing
- 21.1.4 Data Security and Data Residency
- 21.1.5 Business Continuity and Disaster Recovery
- 21.2 Security Processes
- 21.3 ABAP Application Server Security
- 21.4 Certification and Compliance
- 21.4.1 SAP Operations
- 21.4.2 SAP Software Development
- 21.5 Summary
- 22 Outlook
- The Authors
- Index