SAP S/4HANA Architecture

Cover
Dear Reader
Notes on Usage
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   The 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   Enterprise Search Extensibility
	3.3   Summary
4   Intelligence and Analytics
	4.1   Analytics
		4.1.1   SAP S/4HANA Embedded Analytics Architecture Overview
		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   Technological Background
		4.3.3   Intelligent Situation Handling Concept
		4.3.4   User Experience
		4.3.5   Use Case Examples
		4.3.6   Intelligent Situation Automation
		4.3.7   Message-Based Situation Handling
	4.4   Summary
5   Extensibility
	5.1   Key User Extensibility
		5.1.1   Stability Criteria for Extensibility
		5.1.2   Principles of In-App Key User Extensibility
		5.1.3   Field Extensibility
		5.1.4   Integration Extensibility
		5.1.5   Custom Business Logic
		5.1.6   Custom Business Objects
		5.1.7   Custom CDS views
		5.1.8   Lifecycle Management
	5.2   Side-by-Side Extensions
		5.2.1   Introduction to Cloud-Native Applications
		5.2.2   SAP Cloud Platform and Programming Models
		5.2.3   Cloud Foundry Environment
		5.2.4   Kyma Runtime
		5.2.5   Integrating with SAP S/4HANA Using the SAP Cloud SDK
	5.3   Summary
6   Integration
	6.1   SAP S/4HANA Integration Interface Technologies
		6.1.1   OData Services
		6.1.2   SOAP Services
		6.1.3   Remote Function Call
		6.1.4   BAPIs
		6.1.5   IDoc
		6.1.6   SAP S/4HANA API Strategy
	6.2   SAP API Business Hub
	6.3   Interface Monitoring and Error Handling with SAP Application Interface Framework
	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   Integration Middleware
	6.7   Event-Based Integration
		6.7.1   SAP Cloud Platform Enterprise Messaging
		6.7.2   Business Events Architecture in SAP S/4HANA
		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   Master Data Integration Services
	6.9   Summary
7   Data Protection and Privacy
	7.1   Compliance Base Line
	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 (BOM)
		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 Partner
		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
		10.3.1   Business Partner
		10.3.2   Service Products
		10.3.3   Organizational Units
		10.3.4   Service Teams
		10.3.5   Technical Objects
	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   Architecture of a Business Object in Procurement
	11.4   Central Procurement
		11.4.1   Backend Integration
	11.5   APIs and Integration
		11.5.1   SAP S/4HANA Procurement Integration with SAP Ariba and SAP Fieldglass
	11.6   Analytics
	11.7   Innovation and Intelligent Procurement
	11.8   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 Control
		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
	12.7   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   Enterprise Contract Management and Assembly
	14.5   Financial Planning and Analysis
		14.5.1   Budgetary Accounting
		14.5.2   Predictive Accounting
		14.5.3   Financial Planning
		14.5.4   Margin Analysis
		14.5.5   Overhead Cost
		14.5.6   Production Cost
	14.6   Payables Management
		14.6.1   Supplier Invoicing
		14.6.2   Open Payables Management
		14.6.3   Automatic Payment Processing
	14.7   Receivables Management
		14.7.1   Open Receivables Management
		14.7.2   Credit Evaluation and Management
		14.7.3   Customer Invoicing
		14.7.4   Dispute Resolution
		14.7.5   Collection Management
		14.7.6   Convergent Invoicing
		14.7.7   Contract Accounting
	14.8   Treasury Management
		14.8.1   Advanced Payment Management
		14.8.2   Bank Integration Using SAP Multi-Bank Connectivity
		14.8.3   Connectivity to Payment Service Providers and Payment Gateways
		14.8.4   Cash Management
		14.8.5   Treasury and Risk Management
	14.9   Central Finance
		14.9.1   Replication
		14.9.2   Mapping
		14.9.3   Accounting Views of Logistics Information
		14.9.4   Central Payment
		14.9.5   Cross-System Process Control
	14.10   Finance Extensibility
	14.11   SAP Governance, Risk, and Compliance
		14.11.1   Overview of SAP GRC Solutions
		14.11.2   SAP GRC Solutions and SAP S/4HANA Integration
		14.11.3   SAP S/4HANA Integration with Enterprise Risk and Compliance
		14.11.4   SAP S/4HANA Integration with International Trade Management
		14.11.5   SAP S/4HANA Integration with Access Governance
		14.11.6   SAP S/4HANA Integration with SAP Privacy Governance
	14.12   Summary
15   Localization in SAP S/4HANA
	15.1   Advanced Compliance Reporting
	15.2   Document Compliance
		15.2.1   Motivation
		15.2.2   Architecture Overview
		15.2.3   Recent Developments and Future Outlook
	15.3   Localization Toolkit for SAPS/4HANA Cloud
		15.3.1   Components of the Toolkit
		15.3.2   Extensibility Scenario Guides and the Community
	15.4   Summary
Part III   SAP S/4HANA Cloud-Specific Architecture and Operations
16   Scoping and Configuration
	16.1   Configure Your Solution: Scoping and Configuration Today
		16.1.1   Content Model of SAP Solution Builder Tool
		16.1.2   Scoping and Deployment
	16.2   Outlook: SAP Central Business Configuration
		16.2.1   The Business Adaptation Catalog
		16.2.2   The Ten Business Adaptation Catalog Commandments
		16.2.3   Business Processes
		16.2.4   Constraints
		16.2.5   From Scoping to Deployment
	16.3   Summary
17   Identity and Access Management
	17.1   Architecture Concepts of Identity and Access Management
		17.1.1   ABAP Authorization Concept
		17.1.2   Authentication
		17.1.3   Identity and Access Entities and Their Relationships
		17.1.4   Identity and Access Management Tools
		17.1.5   SAP Fiori Pages and Spaces
	17.2   Managing Users, Roles, and Catalogs
		17.2.1   Communication Arrangements
		17.2.2   User Types
		17.2.3   SAP PFCG Roles and Business Catalogs
		17.2.4   Management of Users, Roles, and Catalogs by Customers
		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   The 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   The 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
	19.6   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   Example for Greenfield Sizing
		20.2.2   Brownfield Sizing
	20.3   Elasticity and Fair Resource Sharing
		20.3.1   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
		21.2.1   Security Configuration Compliance Monitoring
		21.2.2   Security Event Management and Incident Response
		21.2.3   Infrastructure Vulnerability Scanning
		21.2.4   Malware Management
		21.2.5   Security Patch Management
		21.2.6   User Management
		21.2.7   Hacking Simulation
	21.3   Certification and Compliance
		21.3.1   SAP Operations
		21.3.2   SAP Software Development
	21.4   Summary
22   Outlook
The Authors
	Editors
	Authors
Index
Service Pages
Legal Notes