Written by Minami — Paddy & Water Inc. / Technology & Platform

An Integrated ERP Platform Supporting Manufacturing Business Operations

S/4HANA × EWM × TM × aATP × VC × Ariba × SuccessFactors × BTP — Full Enterprise Coverage Guide

July 2026　3rd Edition

Chapter 1: What is SAP

1.1　Overview of SAP SE

SAP (Systems, Applications and Products in Data Processing) is the world’s largest enterprise software company, founded in Germany in 1972. Headquartered in Walldorf, Germany, it serves approximately 410,000 customers in more than 180 countries worldwide. SAP maintains the top share of the ERP software market, and its design philosophy centered on “process standardization” and “real-time data integration” is widely adopted by organizations ranging from large enterprises to mid-sized companies.

Item	Description
Official Name	SAP SE (Societas Europaea), headquartered in Walldorf, Germany, founded in 1972
Flagship Products	SAP S/4HANA (core ERP), Ariba, SuccessFactors, Concur, IBP, BTP, and others
Revenue	Approx. EUR 36 billion (2024), with the cloud segment exceeding a 50% share and continuing to grow
Number of Customers	Approx. 410,000 companies (in more than 180 countries worldwide)
Share of the ERP Market	No. 1 share of the global ERP market (according to multiple surveys, including IDC/Gartner)
Japan Subsidiary	SAP Japan Co., Ltd. (established 1986, Chiyoda-ku, Tokyo)

1.2　What is ERP, and SAP’s Three Product Areas

ERP (Enterprise Resource Planning) is an information infrastructure that integrates and manages a company’s core operations — finance, procurement, inventory, production, sales, and human resources — within a single system. SAP’s product portfolio is organized into three layers: (1) the core ERP (S/4HANA), (2) cloud extension solutions (Ariba/SuccessFactors/IBP, etc.), and (3) the technology platform (SAP BTP).

Chapter 2: Overview of Full Manufacturing Coverage

When a manufacturing company fully covers its business with the SAP product portfolio, the result is the following layered structure. S/4HANA, the core ERP, forms the center of operations, cloud SaaS solutions complement specialized functions, and SAP BTP technically integrates the whole. From Chapter 3 onward, this book explains each module in detail, organized by business domain.

■ Overall SAP Product Ecosystem (Manufacturing)
Cloud Extension Solutions (SaaS)
SAP Ariba Procurement / Purchasing, Supplier Management	SuccessFactors HXM / Recruiting, Payroll / Performance	SAP Concur Expenses / Travel, Settlement Workflow	SAP IBP S&OP / Demand Planning, Inventory Optimization	Fieldglass External Workforce VMS, Staffing / Outsourcing	Analytics Cloud BI / FP&A, Management Dashboards
SAP S/4HANA — Core ERP (Full Manufacturing Coverage)
FI　Financial Accounting GL / AR / AP, Fixed Assets / Period-End Close	CO　Controlling Cost Centers, Product Costing / CO-PA	MM　Purchasing / Materials Purchasing / MRP, Inventory / Invoice Matching	SD　Sales Quotation / Order / Shipping, Billing / Credit	PP / LO-VC MRP / Production Orders, BOM / VC Configuration	QM　Quality Inspection Lots, Usage Decision / CAPA
PM　Plant Maintenance Equipment Master, Preventive Maintenance / Orders	CS / Service Notifications / Orders, Maintenance Contracts / DP90	EWM　Warehouse Management Inbound/Outbound / WT, HU / RF / Yard	TM　Transportation Management Transportation Planning / Orders, Freight Calculation / Tracking	aATP Availability Check, Allocation / BOP	PS　Project Management WBS / Networks, Project Costing / EVM
HCM　HR / Payroll Organizational Management / Payroll, Time / Attendance	(← The S/4HANA core ERP is a subscription based on the number of user licenses. EWM/TM/aATP are included as standard →)
SAP BTP (Business Technology Platform) — Integration, Extension, AI (Joule), RPA
Integration Suite API / EDI Connectivity	Extension Suite Low-Code / Fiori	AI / Joule Generative AI / Forecasting	Workflow / RPA Approval Workflow / Automation	DataSphere DWH / SAC Integration	Identity / Security SSO / Access Management
SAP HANA In-Memory Database — Real-time integration of FI/CO via the Universal Journal (ACDOCA)　|　Supports both Public Cloud and Private Cloud

SAP Module Mapping by Business Domain

Business Domain	SAP Modules Covered (Core ERP)	Cloud Extension
Finance / Management Accounting	FI (Financial Accounting) / CO (Controlling)	SAP Analytics Cloud (FP&A)
Procurement / Materials / Logistics	MM (Purchasing / Inventory) / EWM (Warehouse) / TM (Transportation) / aATP (Availability)	SAP Ariba (Strategic Procurement)
Production / Quality / Maintenance	PP (Production Planning) / LO-VC (Variant Configuration) / QM (Quality) / PM (Maintenance)	SAP IBP (S&OP / Demand Planning)
Sales / Service / Projects	SD (Sales and Distribution) / CS/Service (CS) / PS (Project Management)	SAP Analytics Cloud
Human Resources / Talent Management	HCM (HR / Payroll)	SAP SuccessFactors (HXM)
Expenses / External Workforce	—	SAP Concur (Expenses / Travel) / SAP Fieldglass (VMS)
Planning / Forecasting / Optimization	(aATP is part of the S/4HANA core)	SAP IBP (Integrated Business Planning)
Technology / Integration / AI	SAP BTP (Cross-Cutting)	SAP Joule (AI)
Global Trade	(S/4HANA for International Trade)	SAP GTS (Trade Compliance / Customs)
Product Development / Engineering	PLM (BOM/DMS/ECM) / PP-DS	SAP Enterprise Product Development
Manufacturing Execution (Shop Floor)	ME / MII (On-Premise MES)	SAP Digital Manufacturing (Cloud MES)
Environment, Health, Safety and Regulatory Compliance	EHS / Product Compliance	SAP Sustainability Footprint Mgmt
Financial Sophistication / Treasury	FSCM (Credit/Collections/Dispute) / TRM	SAP Green Ledger (Carbon Accounting)
Customer Experience (CRM)	—	SAP CX (Sales/Service/Commerce)
Billing / Revenue (XaaS)	BRIM / FI-CA	SAP Subscription Billing
Analytics, Planning and Control	BW/4HANA / BPC / PaPM / GRC	SAC / Datasphere (Cloud)

Chapter 3: Financial and Management Accounting (FI / CO)

3.1　FI (Financial Accounting)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

The FI module is the accounting engine that manages a company’s external financial records. Every business transaction (purchase order, goods receipt, shipment, invoice, etc.) automatically generates FI journal entries that are posted to the general ledger in real time. In S/4HANA, the Universal Journal (ACDOCA) integrates FI and CO into a single data structure, eliminating the need for month-end batch closing.

FI Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
FI-GL	General Ledger	The center of all journal entries. Managed by G/L account, profit center, and segment. In S/4HANA: fully real-time via the Universal Journal (ACDOCA)	FB50 / FAGLB03
FI-AR	Accounts Receivable	Customer invoices, incoming payments, clearing, and credit management. SD VF01 invoices are posted automatically	F-28 / FD32
FI-AP	Accounts Payable	Vendor invoices (MIRO), payments, and 3-way matching. Electronic invoicing (via Ariba integration)	F110 / MIRO / MR11
FI-AA	Asset Accounting	Acquisition, depreciation, and retirement of equipment, buildings, and software. Supports IFRS 16 lease accounting	AS01 / AFAB / AW01N
FI-BL	Bank Accounting	Bank balances and bank statement (MT940) processing. Electronic banking integration	FF67 / FF.5
FI-GR	Group Reporting	Consolidated financial statements and elimination of intercompany transactions. IFRS-compliant consolidation (native to S/4HANA)	GCAC / GCJ1
FI-TX	Tax Accounting	Consumption tax, withholding tax, and import/export duties. Localization support for more than 100 countries	FTXP / FB41

3.2　CO (Controlling)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

Whereas FI provides “external reporting,” the CO module provides accounting for “internal management decision-making.” It captures the manufacturing cost of a single product, departmental expenses, and project profitability. The Universal Journal in S/4HANA enables real-time management accounting.

CO Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
CO-CCA	Cost Center Accounting	Aggregation, management, and allocation of expenses by department. Plan-vs-actual variance analysis	KP06 / KSB1 / KS88
CO-OPA	Internal Orders	Temporary collection of costs for construction projects and campaigns. Settled to a cost center upon completion	KO01 / KO88 / KOB1
CO-ABC	Activity-Based Costing	Allocation of overhead based on process-specific cost drivers	CPCA / KSPI
CO-PC-PCP	Product Cost Planning	Standard costing based on BOM and routing. Cost estimation and multi-level roll-up	CK11N / CK40N
CO-PC-OBJ	Cost Object Controlling	Collection of actual costs against production orders. Variance calculation at completion (standard vs. actual)	KKS2 / KKBC_ORD
CO-PC-ACT	Actual Costing (Material Ledger)	Revaluation of inventory at actual cost at period-end. Multi-currency costing and transfer price management	CKMLCP / MR21
CO-PA	Profitability Analysis	Profit and loss by customer, product, region, and channel. Account-based CO-PA (recommended in S/4HANA)	KE30 / KE24
EC-PCA	Profit Center Accounting	Pseudo P&L by business unit/brand. Responsibility accounting and transfer price management	KE51 / 1KE8

3.3　FSCM (Financial Supply Chain Management)

FSCM is a group of functions that optimize the “financial flow” of receivables, payables, and cash. It provides integrated management of credit, dunning/collections, disputes, and cash liquidity to improve cash flow and working capital. In S/4HANA, FSCM works closely with AR (Accounts Receivable), and the Credit, Collections, and Dispute functions are integrated into the core.

■ Licensing

S/4HANA core (integrated Credit/Collections/Dispute)　│　Users: Professional User

FSCM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
FSCM-CR	Credit Management	Setting credit limits, credit ratings, credit checks, and risk monitoring	UKM_BP
FSCM-COL	Collections Management	Collection strategies, worklists, and dunning prioritization	UDM_SPECIALIST
FSCM-DM	Dispute Management	Creating, tracking, and resolving billing dispute cases	UDM_DISPUTE
FSCM-CLM	Cash & Liquidity Management	Cash position, liquidity forecasting, and bank balance management	FF7A / FF7B
FSCM-IHC	In-House Cash	Intercompany settlement, netting, and in-house bank functionality	F9HI
FSCM-BCM	Bank Communication Management	Batch payment approval and bank connectivity (SWIFT/Host-to-Host)	BNK_MONI

3.4　TRM (Treasury and Risk Management)

TRM manages financial transactions such as borrowing, investments, derivatives, and foreign exchange, along with the associated market and credit risk. It integrates fund procurement, hedging, and risk assessment to support advanced risk management within the treasury department. In addition, Central Finance — which consolidates the financial data of multiple ERP systems into a single S/4HANA instance — is also an option for advancing financial sophistication.

■ Licensing

S/4HANA core (Treasury Management)　│　Users: Professional / Advanced User

TRM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
TRM-TM	Transaction Manager	Management of money market, securities, foreign exchange, and derivatives transactions	TM01 / FTR_CREATE
TRM-MRA	Market Risk Analyzer	VaR, sensitivity analysis, and hedge effectiveness assessment
TRM-CRA	Credit Risk Analyzer	Counterparty credit and limit management
TRM-CM	Commodity Risk Management	Raw material price hedging and commodity exposure management

Chapter 4: Procurement, Inventory, and Logistics (MM / EWM / TM / aATP)

4.1　MM (Materials Management)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

The MM module manages the entire procurement cycle (Purchase-to-Pay) — from sourcing materials, through goods receipt and inventory management, to invoice processing.

MM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
MM-PUR	Purchasing	Purchase requisitions, purchase orders, and outline agreements (quantity/value). Bidding, comparative purchasing, and release-strategy approval workflow	ME21N / ME31K / ME41
MM-IM	Inventory Management	Stock movements via movement type schema (101/261/301, etc.). Batch management, serial number management, and special stock (subcontracting/consignment)	MIGO / MB52 / MI01
MM-IV	Invoice Verification	3-way matching of vendor invoices (PO-GR-Invoice). Automatic detection of variances and approval workflow	MIRO / MR11 / MRBR
MM-SRV	External Services Management	Service entry sheets (SES) for service procurement. Approval of results for construction, consulting, and other outsourced work	ML81N / ME2S
MM-CBP	Consumption-Based Planning	Automatic replenishment proposals based on historical consumption. Reorder-point and forecast-based replenishment	MD01 / MD61

4.2　EWM (Extended Warehouse Management)

■ Licensing

Included in the S/4HANA core　│　Included as standard as Embedded EWM in S/4HANA　｜　Advanced robotics integration, etc. should be confirmed separately

EWM (Extended Warehouse Management) is a module that precisely manages inbound/outbound processing, stock placement, picking, packing, and loading within a warehouse. It functionally replaces the legacy WM (Warehouse Management) and is provided as “Embedded EWM” built into S/4HANA. It can also integrate with RF scanners, voice picking, and automated equipment (conveyors, sorters, AGVs), supporting everything from large, complex warehouses to mid-sized facilities.

EWM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
EWM-WH	Warehouse Infrastructure	Hierarchical design of storage types, storage sections, and storage bins (shelf numbers). Definition of attributes such as temperature-controlled zones and hazardous material zones	SPRO / LX01 / LX04
EWM-INB	Inbound Processing	Inbound delivery (Inbound DO) → GR → quality inspection → putaway task (PUT). Handling units (HU) manage pallets and cartons as units	/SCWM/GR / /SCWM/MON
EWM-OUT	Outbound Processing	Outbound DO → picking WT → packing WT → load → loading confirmation. FEFO (first-expired, first-out), zone picking, and wave picking	/SCWM/GI / /SCWM/TO
EWM-WT	Warehouse Task Management	Automatic generation and prioritization of warehouse tasks (WT) and assignment to workers. Bundling of multiple WTs into a single warehouse order (WO)	SPRO (WT definition) / /SCWM/MON
EWM-HU	Handling Unit Management	Inbound/outbound management by packaging unit, such as pallets and cartons. Support for HU barcode and GS1-128 scanning	HUMO / /SCWM/PACK
EWM-RM	Resource Management	Optimized assignment of in-warehouse tasks to forklifts and workers. Collection of utilization performance and work efficiency analysis	SPRO / /SCWM/QDMON
EWM-QM	QM Integration	Automatic generation of an inspection lot upon goods receipt (QM integration). Switching the putaway location (approved area / quarantine area) based on inspection results	QA32 / /SCWM/GR integration
EWM-PP	PP Integration	Component supply (staging) to production orders. JIT supply and temporary staging management ahead of the production line	PP delivery / /SCWM/TO
EWM-YM	Yard Management	Gate-entry reservations and parking area management for trucks and other transport modes. ETA management via TM integration	SPRO (yard settings)
EWM-CRF	Cross-Docking	Moving inbound goods directly to the outbound area without warehouse storage. Reduces inventory storage cost and lead time	SPRO (CD settings)

4.3　TM (Transportation Management)

■ Licensing

Included in the S/4HANA core　│　Included as standard as Embedded TM in S/4HANA　｜　Large-scale global transportation should be confirmed separately

TM (Transportation Management) plans the transportation demand generated by sales orders and purchase orders, and manages the entire transportation cycle — from placing orders with carriers, through execution tracking and freight calculation, to settlement. Basic functionality is included as Embedded TM in S/4HANA, and it integrates seamlessly with EWM’s yard management and outbound processing.

TM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
TM-TP	Transportation Planning	Automatic generation of transportation demand (freight units). Calculation of optimal transportation plans considering load efficiency, cost, and lead time	SPRO / /SCMTMS/TRANS_REQ
TM-TO	Transport Orders	Sending confirmed transportation plans to carriers as transport orders (TO). TO transmission/reception via carrier portal or EDI	SPRO / /SCMTMS/MON
TM-EX	Execution & Tracking	Real-time updates of transportation status (arrival, delay, completion). GPS/IoT integration and estimated time of arrival (ETA) calculation	SPRO / Event Management
TM-FM	Freight & Charge Management	Carrier freight rate master (rates by distance, weight, and zone). Transportation quotation and cost comparison (reconciliation against bid results)	SPRO (rate table definition)
TM-SC	Freight Settlement	Freight calculation and automatic invoice matching based on actual transportation data. Automatic posting to MM AP (Accounts Payable) / FI after settlement	SPRO / FI integration (AP posting)
TM-GTM	Global Trade Management	Export/import compliance management (embargo list screening, etc.). Automatic generation of customs duty and clearance documents	SPRO / GTS integration

4.4　aATP (Advanced Available-to-Promise)

■ Licensing

Included in the S/4HANA core　│　Included as standard in the S/4HANA core (replaces the legacy ATP)　｜　Users: Professional User

aATP (Advanced Available-to-Promise) is a more sophisticated availability-check engine that S/4HANA provides in place of the classic ATP (Available-to-Promise). At the time of an SD sales order, it calculates in real time — based on inventory, production plans, and procurement plans — whether “this product, in this quantity, on this date, can be delivered to this customer.” Advanced capabilities such as allocation management, backorder processing (BOP), and rules-based ATP (rATP) achieve high-precision matching between demand and supply.

aATP Functional Components	Overview	Example Use in Manufacturing
PAC (Product Availability Check)	The core engine of product availability checking. Calculates the available-to-promise quantity on hand in real time from inventory, planned receipts, and planned issues	Presents the customer with a confirmed delivery date immediately at order entry. Automatically calculates the earliest shipping date if a product is out of stock
BOP (Backorder Processing)	Bulk reallocation of backorders (unconfirmed orders) based on priority rules. After a change in inventory (cancellation or additional receipt), running BOP automatically reassigns stock to priority customers	In the event of a delayed inbound shipment: automatically raises the priority of orders for VIP customers and pushes back the delivery dates of other orders
AM (Allocation Management)	Pre-sets allocation quotas by customer, region, channel, and period to prevent excessive orders (concentration on a specific customer). Works with S&OP planning (IBP) to update allocation quotas	At a new product launch or during a supply shortage: automatically controls the maximum sales volume to a specific region/customer, ensuring fair inventory allocation across all customers
rATP (Rules-based ATP)	Defines substitute products, alternate plants, alternate warehouses, and alternate stock categories through prioritized rules. Even if the requested item is out of stock, the system automatically proposes a substitute, improving the order-confirmation rate	When the primary plant is at capacity: automatically switches to supply from another plant. When a specified item is out of stock: the system automatically proposes a compatible substitute
Multi-level ATP	Checks availability not only for the finished product but retroactively down to intermediate materials and raw materials (expanding the product BOM hierarchy). Integrates with PP’s production plans to identify bottleneck materials	Detects the risk of delayed raw-material procurement at the order-confirmation stage and proactively identifies which processes will affect the delivery date committed to the customer

4.5　GTS (Global Trade Services), edition for SAP S/4HANA

GTS is a specialized solution that automates import/export trade compliance, customs duties, and customs clearance. It handles denied-party screening, export control, tariff classification, origin/preference calculation, and electronic customs clearance, achieving both legal compliance and speed in international transactions. It is typically implemented as an external (connected) system to S/4HANA, and a simplified version, “S/4HANA for International Trade,” is partially included in the core. The area formerly known as “Global Trade Management (GTM)” is now also covered by GTS.

■ Licensing

Standalone license (GTS, edition for SAP S/4HANA)　│　The simplified International Trade version is partially included in the core

GTS Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
GTS-COM	Compliance Management	Denied-party (SPL) screening, embargoed-country checks, and export license management	/SAPSLL/MENU
GTS-CUS	Customs Management	Import/export declarations, electronic customs clearance, tariff classification (HS codes), and ASN generation
GTS-PREF	Risk / Preference	Origin determination, preferential tariff calculation, and FTA/EPA certificates of origin
GTS-BND	Bonded / Trade Agreements	Bonded warehouses, duty reduction/exemption, and free trade zone management

4.6　WM (Warehouse Management, Legacy) / Supplement

WM (legacy Warehouse Management) is the predecessor module to EWM. In S/4HANA, migration to EWM is recommended; the existing WM (LE-WM) is provided as a Compatibility Pack with limited support until around 2030. For new implementations, choose either EWM (Section 4.2) or Stock Room Management (simplified inventory management).

■ Licensing

S/4HANA core (WM is a time-limited Compatibility Pack)　│　Migration to EWM is recommended

WM-Related (Migration Approach)

Abbreviation	Full Name	Key Functions	Representative T-Codes
LE-WM	Warehouse Management	Inbound/outbound processing, putaway, and physical inventory (legacy, time-limited)	LT01 / LT03
Stock Room	Stock Room Management	Lightweight inventory management for small warehouses (a simplified EWM alternative)
→ EWM	Migration to Extended WM	Advanced warehouse automation, RF, and labor management are realized in EWM	(See Section 4.2)

Chapter 5: Production, Quality, and Maintenance (PP / LO-VC / QM / PM)

5.1　PP (Production Planning)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

As the core of manufacturing operations, the PP module plans what to make, when, and how much, and drives the shop floor based on production orders. It manages the entire “making things” process end to end, from material requirements planning (MRP) through production order execution to goods receipt.

PP Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
PP-BD	Basic Data	Bills of material (BOM), routings, and work instructions. Production versions, work centers, and production line definitions	CS01 / CA01 / CR01
PP-MP	Master Production Scheduling	Formulation of the medium- to long-term firmed production plan (MPS). Top-down deployment from sales and demand plans	MD40 / MD43 / MD50
PP-MRP	Material Requirements Planning	Raw material requirements calculation via BOM explosion. Automatic generation of purchase and production order proposals	MD01N / MD04 / MD06
PP-SFC	Shop Floor Control	Planned order → firmed production order → material reservation → goods issue. Confirmation of labor time, goods receipt (GR), and variance calculation	CO01 / CO11N / COGI
PP-REM	Repetitive Manufacturing	Production-line-level plan management for high-volume products. Batch confirmation of materials and labor via backflushing	MF50 / MFBF
PP-PI	Process Industries	Recipe (formulation) management for chemicals, food, and pharmaceuticals. Process orders, batch management, and GMP compliance	C201 / COR1 / COJP
PP-KAB	Kanban	Pull-based replenishment using the kanban method. Support for electronic kanban and barcode scanning	PK01 / PKMC / PKBR
PP-CRP	Capacity Requirements Planning	Capacity-load simulation for equipment and personnel. Scheduling and bottleneck identification	CM21 / CM25 / MD44

5.2　LO-VC　Variant Configuration

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　AVC (the cloud version) is evolving into a standard Public Cloud capability

Variant Configuration (VC) is a mechanism for managing “products whose specifications differ by customer” as a single configurable material. For example, at an industrial machinery manufacturer, combinations of voltage, output, safety standards, and language settings can result in thousands of product variations; with VC, these can be managed not as individual part numbers but as “combinations of characteristics.” When a customer selects characteristic values at order entry (CTO: Configure-to-Order), the BOM, routing, and price are automatically derived, enabling consistent tracking from quotation through manufacturing to shipment.

Industries and Use Cases Requiring Variant Configuration

Industry	VC Use Case	Example Characteristics
Industrial Machinery / Machine Tools	Engineer-to-Order/Configure-to-Order (ETO/CTO); voltage, control panel, and language differ by customer	Supply voltage (100V/200V/400V); control method (PLC/CNC); interface language (Japanese/English/German)
Automotive / Agricultural Machinery	Option-selection orders; managing combinations of paint color, engine, and equipment	Body color (red/white/black/custom); engine (1500cc/2000cc); options (sunroof/navigation)
Electronics / Telecommunications Equipment	Spec-to-order manufacturing; combinations of RAM, storage, and certification	RAM capacity (8GB/16GB/32GB); installed language/region settings; wireless certification (FCC/CE/Telec)
Medical Devices	Variations by regulatory requirement; region-specific regulation, power specification, and language variants	CE/FDA certification category; power plug standard (Type A/B/C/G); interface language
Materials / Chemicals	Grade-specific product management; combinations of purity, particle size, and additives	Purity grade (99.0/99.5/99.9%); particle size (10µm/50µm/100µm); packaging format (drum/bag/bulk)

Components of the VC Configuration Model

Element (Abbreviation)	Role	Where Configured / Tools
Configurable Material	The material subject to VC. Enable the “configurable” flag in the material master; a single material number can manage N variations	MM01 (Material Master); Class: assign class type 300
Characteristic	Defines a customizable attribute of the product. Single/multiple value, text/numeric/date, selectable list	CT04 (Characteristic Creation); define value range, unit, and allowed values
Class (Class Type 300)	Groups multiple characteristics and assigns them to a material or configuration profile. Class type 300 is primarily used for VC	CL02 (Class Creation); assignment to material: CL20N
Configuration Profile	The set of VC rules assigned to a material, encompassing the UI layout, dependency scope, and configuration procedure	CU41 (Configuration Profile); can also be managed in S/4HANA Fiori
Dependency	Defines constraints, conditions, and calculation procedures between characteristic values: selection conditions (SC), procedures (PR), constraints (CON), and preconditions (PC)	CU01 (Dependency Creation); condition logic is written in the KECO language
Variant BOM	A BOM with selection conditions. Controls which components become active depending on characteristic values, embedding conditional branching within a single material’s BOM	CS01 (BOM Creation); dependencies are attached to each component
Variant Routing	Controls which operations become active depending on characteristic values — for example, automatically deploying an additional processing step when an option is added	CA01 (Routing Creation); selection conditions are attached to each operation
Configuration Instance	The confirmed combination of characteristic values selected by the customer on the sales order or production order. Managed with a unique instance ID and tracked from order through production to shipment	SD order VA01 (Configuration tab); carried forward to production order CO01

Example Dependency Definitions — the KECO Language

[Example Selection Condition] Condition: $SELF.COLOR = ‘RED’ (body color = red) → Activates the BOM item for the component “RED-PAINT-KIT” [Example Constraint] IF COLOR = ‘RED’ THEN SEAT_TYPE <> ‘BEIGE’ (When the body is red, a beige seat color cannot be selected) → Displays an error and blocks order confirmation if the user attempts to select a violating combination on the order-entry screen [Example Procedure] IF VOLTAGE = ‘200V’ THEN WEIGHT = WEIGHT + 2.5 (For the 200V specification, automatically add 2.5kg to the product weight) → Dynamically calculates weight, dimensions, and cost according to the configured values

End-to-End VC Flow (CTO Configure-to-Order)

Step 1: SD Sales Order (VA01) → The customer/sales rep selects characteristic values (color = red, voltage = 200V, certification = CE) → Constraint check: any selection violation is flagged with an immediate error → Variant pricing: an additional price (variant price) is automatically added based on the characteristic values Step 2: Cost Estimation (CK11N) → Product cost is pre-calculated based on the configuration instance → Order profitability is captured, reflecting component and operation costs for each characteristic value Step 3: PP Production Order (CO01) → The order’s configuration instance is carried forward to the production order → Variant BOM explosion: only the components corresponding to the selected characteristic values are exploded as components → Variant routing explosion: only the operations corresponding to the characteristic values are activated Step 4: EWM Outbound / SD Shipping → The completed, configured product (with its instance) is shipped → Characteristic-value information is also carried forward to the SD outbound delivery and invoice documents

LO-VC (On-Premise) vs. AVC (Advanced Variant Configuration, S/4HANA Cloud)

Comparison Item	LO-VC (Traditional)	AVC (Advanced Variant Configuration)
Target Environment	S/4HANA Private Cloud, on-premise, ECC	S/4HANA Public Cloud (primary); gradual migration to Private Cloud underway
Modeling Tool	SPRO / KECO language (text-based dependency definitions)	SAP Configuration Expert (Fiori app); visual UI-based modeling
AI / Optimization	Manually written dependencies; complex constraints require large amounts of KECO code	AI-driven constraint solver (Optimizer); automatically searches for feasible combinations
Performance	Response can slow for large-scale VC models (100+ characteristics)	In-memory optimization delivers high-speed processing even for large-scale VC models
Migration Path	Existing LO-VC models can be migrated to AVC using conversion tools; a phased conversion is recommended	—

5.3　QM (Quality Management)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

The QM module manages the planning, execution, and usage decision (pass/fail) of incoming inspection, in-process inspection, and pre-shipment inspection, and the system controls the quarantine, scrapping, and return processes for rejected material.

QM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
QM-PT	Quality Planning	Definition of inspection plans, master inspection characteristics (MICs), tolerances, and sampling schemes. Assignment of inspection plans by material x plant	QP01 / QP02 / QDV1
QM-IM	Quality Inspection	Inspection lot generation and results recording (entering MIC values). Usage decision (accepted 321 / quarantined 344 / rejected 553)	QA32 / QE51N / QA11
QM-QC	Quality Control / SPC	Xbar-R control charts, statistical process control (SPC). Calculation of process capability indices (Cp/Cpk)	QGC1 / QGA2
QM-QN	Quality Notification	Nonconformance reporting, corrective/preventive action (CAPA), and 8D reports. Quality feedback to suppliers and claims management	QM01 / QM02 / QM10
QM-CA	Quality Certificates	Automatic generation of a certificate of analysis (CoA) from inspection results. Automatic comparison of customer specifications with measured values, and issuance	QC21 / QC51

5.4　PM (Plant Maintenance)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

The PM module manages preventive, breakdown, and improvement maintenance for plants, equipment, and infrastructure. It manages equipment hierarchically via equipment master records and functional locations, and accumulates periodic maintenance plans, orders, and results.

PM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
PM-EQM	Equipment / Technical Object Management	Hierarchical management of equipment master records and functional locations. Equipment ledger, operating counters, and repair history	IE01 / IE02 / IH01
PM-PRM	Preventive Maintenance	Time-based/counter-based maintenance plans. Execution of maintenance plan schedules (batch generation of orders)	IP01 / IP10 / IA01
PM-WOC	Work Order Control	Creation and execution of preventive- and breakdown-maintenance orders. Parts reservation, labor confirmation, and subcontracting management	IW31 / IW32 / IW38
PM-IS	Maintenance Information System	Analysis of repair costs by equipment, MTBF, and MTTR. Equipment utilization (OEE) reporting	IW74 / IW65

5.5　PP-DS & Advanced Production Planning (Production Planning and Detailed Scheduling)

PP-DS is an advanced planning function embedded in S/4HANA that performs detailed, finite-capacity scheduling and optimization that takes capacity constraints into account. PP-DS from the legacy SCM APO has been embedded into the S/4HANA core. In addition, PP-PI (Process Industries) exists for process manufacturing such as chemicals, food, and pharmaceuticals, handling recipes, process orders, and batch management.

■ Licensing

S/4HANA core (advanced planning: PP-DS/aATP require an additional license)

PP-DS / Process Manufacturing Related

Abbreviation	Full Name	Key Functions	Representative T-Codes
PP-DS	Detailed Scheduling	Finite-capacity planning, setup optimization, and bottleneck management	/SAPAPO/CDPS0
MRP Live	MRP Live	High-speed requirements calculation on HANA	MD01N
PP-PI	Process Industries	Recipes, process orders, and batch management	COR1 / C201
pMRP	Predictive MRP	Medium-term capacity/supply simulation

5.6　PLM (Product Lifecycle Management)

PLM manages the product lifecycle from planning and design through the bill of materials, drawings, engineering changes, and costing. It encompasses the engineering BOM (E-BOM), document management (DMS), engineering change management (ECM: ECR/ECO), and product costing, and bridges design data and the ERP through CAD integration. It is the core of the digital thread for engineering operations.

■ Licensing

S/4HANA core (BOM/DMS/ECM)　+　SAP Enterprise Product Development (cloud extension)

PLM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
PLM-BOM	Bill of Materials	E-BOM/M-BOM, BOM comparison, and multi-level structure management	CS01 / CS02
PLM-DMS	Document Management System	Version management of drawings, specifications, and CAD files	CV01N / CV04N
PLM-ECM	Engineering Change Management	Engineering change requests (ECR)/orders (ECO) and effective-date management	CC01 / CC31
PLM-PLC	Product Lifecycle Costing	Target-cost and estimated-cost simulation during the development stage
EPD	Enterprise Product Development (Cloud)	Collaborative design, 3D visualization, and requirements management	(Cloud)

5.7　SAP Digital Manufacturing (Manufacturing Execution / MES)

SAP Digital Manufacturing (formerly DMC) is a cloud MES built on BTP. It handles shop-floor work instructions, results collection, traceability, quality inspection, and equipment connectivity (IoT), linking S/4HANA production orders with the shop floor in real time. The traditional on-premise MES consists of SAP ME (Manufacturing Execution) + MII (Manufacturing Integration & Intelligence).

■ Licensing

Cloud extension (on BTP, separately licensed)　│　On-premise: ME / MII

Digital Manufacturing Related

Abbreviation	Full Name	Key Functions	Representative T-Codes
DM-EXE	Execution	Digital work orders, POD, worker guidance, and results collection	(Cloud UI)
DM-INS	Insights	Real-time analysis of OEE, utilization rate, and defect rate
DM-EDGE	Data Collection (Edge)	Equipment/sensor connectivity and edge computing
ME/MII	On-Premise MES (Manufacturing Execution/Integration)	Traditional on-premise MES; shop-floor integration (SCADA/PLC)

5.8　EHS & Product Compliance (Environment, Safety, and Regulatory)

EHS (Environment, Health & Safety) manages workplace safety, incident management, hazardous materials, and emissions. S/4HANA Product Compliance handles chemical substance regulations, dangerous goods transportation, safety data sheets (SDS), and product regulatory compliance, an area that is essential in the chemical, pharmaceutical, and food industries.

■ Licensing

S/4HANA core (Product Compliance / EHS Management)

EHS / Product Compliance Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
EHS-SAF	Workplace Safety	Risk assessment, work permits, and safety inspections	CBIH02
EHS-IM	Incident Management	Recording of workplace accidents, near-misses, and corrective actions (CAPA)
PC-SUB	Product/Substance Compliance	Chemical substance regulation (REACH/RoHS), composition management, and regulatory checks
PC-DG	Dangerous Goods / SDS	Dangerous-goods transport classification, safety data sheets, and GHS labeling
EHS-EM	Environment Management	Emissions, waste, and environmental compliance

Chapter 6: Sales, Service, and Projects (SD / CS / PS)

6.1　SD (Sales and Distribution)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User / Advanced User

The SD module manages the entire Order-to-Cash cycle — from quotation, through order entry, shipment, and billing, to payment collection. It covers a wide range of requirements, including pricing conditions, credit management, aATP integration, variant-configured (VC) orders, and import/export support.

SD Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
SD-MD	Master Data	Customer master and material master (sales view). Pricing condition master and customer info records (PIR)	XD01 / VK11 / VD51
SD-BF	Basic Functions	Pricing determination (pricing condition technique), credit management, and aATP availability check. Output management (forms/EDI) and text management	VK11 / FD32 / V/06
SD-SLS	Sales	Quotation, order entry, and schedule-line management. CTO orders (VC characteristic selection), returns, and claims processing	VA01 / VA21 / VA41
SD-SHP	Shipping	Outbound delivery, picking, packing, and goods-issue confirmation. Export declaration and generation of transport orders via TM integration	VL01N / VL02N / VT01
SD-BIL	Billing	Invoices, credit/debit memos. Periodic billing plans (maintenance contracts) and DP90 resource-related billing	VF01 / VF04 / DP90
SD-IS	Sales Information System	Performance analysis of orders, shipments, and billing. Sales Information System (SIS)	MC01 / MCSI

6.2　CS / SAP Service (Customer Service and After-Sales Service)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　SAP FSM (Field Service Management) is a separate SaaS offering

CS/SAP Service is a module specialized in after-sales service (repair, maintenance, and SLA management) for equipment owned by customers. While it shares the same technical foundation as PM, it is distinguished by customer-owned equipment, maintenance contracts, and DP90 resource-related billing.

CS/Service Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
CS-ME	Equipment / Technical Object (shared with PM)	Equipment master for customer-owned equipment. Installation location, warranty period, and repair-history management	IE01 / IE02 / IH01
CS-NM	Notification Management	Receiving repair/breakdown requests from customers. SLA monitoring, automatic warranty determination, priority management, and workflow	IW21 / IW22 / IW28
CS-SE	Service Orders	Execution of repair, maintenance, and installation orders. DP90 resource-related billing and actual-cost tracking	IW31 / IW32 / DP90
CS-SC	Service Contracts	Management of fixed-fee/usage-based/SLA-type maintenance contracts. Periodic billing plans and warranty master	VA41 / VA42 / IP01

6.3　PS (Project System)

■ Licensing

Included in the S/4HANA core　│　Included as standard in RISE with SAP / GROW with SAP　｜　Users: Professional User

The PS module specializes in project-based businesses such as plant construction, product development, and large engineer-to-order (ETO) contracts. Work is broken down hierarchically via the WBS, and budgets, costs, and revenue are tracked.

PS Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
PS-PLN	Basic Planning	Definition of the WBS and network activities. Milestones and basic date scheduling	CJ01 / CJ20N / CN21
PS-SCH	Scheduling	Predecessor/successor relationships between network activities and CPM calculation. Scheduling that accounts for procurement lead times of resources and materials	CJ29 / CNS41
PS-EXE	Execution	WIP calculation and milestone billing. Project settlement (CJ88: settlement of work in process)	CJ88 / CJ8G
PS-IS	Project Information System	Plan/actual/variance analysis by WBS element and earned value management (EVM)	S_ALR_87013558

Chapter 7: Human Resources (HCM / SuccessFactors)

7.1　SAP HCM (On-Premise)

■ Licensing

Included in the S/4HANA core　│　Included in the S/4HANA core (a country-specific localized version may be required)　｜　For new implementations, migration to SuccessFactors is recommended

SAP HCM (Human Capital Management) is the HR and payroll module included in S/4HANA. Japan-specific payroll calculation, time/attendance management, and social insurance handling are provided as “SAP Payroll JP.” However, for new implementations, migration to SuccessFactors Employee Central is recommended, and HCM usage is now mainly limited to on-premise/Private Cloud environments.

HCM Submodules

Abbreviation	Full Name	Key Functions	T-Codes
PA	Personnel Administration	Employee master data, employment information, and payroll information. Recording of hiring, transfers, and terminations	PA30 / PA40 / PA61
OM	Organizational Management	Organizational chart, positions, and reporting-line management. Migration to SuccessFactors Employee Central is recommended	PPOME / PP01
TM	Time Management	Attendance recording, shift management, and overtime calculation. Integration with time recorders and barcode scanners	PT60 / PT61 / PA61
PY	Payroll	Payroll calculation (monthly/ad hoc) and year-end adjustment. Social insurance and tax calculation, and generation of payment instructions	PC00_M18_CALC (Japan)
PD	Personnel Development	Skills management, training planning, and career planning. Migration to SuccessFactors LMS is recommended	PE01 / PPPM

7.2　SAP SuccessFactors (HXM Cloud HR)

■ Licensing

Cloud SaaS (separate contract)　│　Cloud SaaS, separate contract　｜　Billing: employee-count based (Per Employee Per Month: PEPM), with the unit price increasing as modules are added

SuccessFactors is a cloud-native HR SaaS suite positioned around “HXM (Human Experience Management).” It uses Employee Central as the foundation for the HR master data, and extends talent management by adding modules for recruiting, performance, learning, succession planning, and compensation management.

Module	Function Overview	Business Value
Employee Central (EC)	Global HR master data, organizational chart, and work rules. Localization support for more than 100 countries	Primarily used for migrating from HCM. The foundation module of SuccessFactors
Recruiting (RCM)	Job posting, ATS, AI screening, and video interviews. Offer management and onboarding	Shortens recruiting lead time and improves hiring quality
Performance Management (PM&G)	OKR goal setting, evaluation forms. 360-degree feedback and career development planning	Enables objective performance evaluation
Learning Management (LMS)	e-learning and compliance training. Skills-gap analysis and learning paths	Automates management of mandatory training
Succession & Talent Planning (Succession)	Successor candidate lists and talent pools. 9-box grid and organizational capability analysis	Enables planned development of executives and reduces key-person risk
Compensation Management	Salary, bonus, and long-term incentive management. Market benchmarking and compensation-band design	Enables fair compensation design and retention of top talent

Chapter 8: Cloud Extension, Analytics, and Governance Solutions (Ariba / Concur / IBP / SAC / BW / GRC, and Others)

8.1　SAP Ariba — Strategic Procurement and Supplier Management

■ Licensing

Cloud SaaS (separate contract)　│　Cloud SaaS, separate contract　|　Billing: Transaction Volume Fee (TVF) based on managed spend + number of users　|　The Business Network Starter Pack is included as standard in RISE

SAP Ariba is a business-network-based procurement SaaS. Through the Ariba Network, on which more than 7 million suppliers are registered, it digitizes e-procurement, e-invoicing, and strategic sourcing, and integrates with S/4HANA MM. Ariba is structured in two layers — the “Ariba Network” and the “Ariba Procurement Suite” — covering the entire span of procurement, from the strategic phase to the execution phase.

SAP Ariba Sub-Solutions

Sub-Solution	Full Name	Key Functions	S/4HANA Integration
Ariba Sourcing	Strategic Sourcing	Bidding (RFQ/RFP/RFI), bid comparison, and automatic scoring. Reverse auctions and supplier candidate list management	Selection results are reflected in S/4HANA MM outline agreements (ME31K)
Ariba Contracts	Contract Management	Lifecycle management of procurement contracts, NDAs, and SLAs. Electronic signature integration and contract-terms compliance monitoring	Contract reference information is linked to S/4HANA purchase requisitions and purchase orders
Ariba Buying (Procurement)	Purchasing Execution	Self-service purchasing (shopping cart). Approval workflow, catalog purchasing, and policy compliance checks	Purchase requisitions → purchase orders are seamlessly posted to S/4HANA MM
Ariba Invoice Management	Invoice Management and Matching	Receipt of vendor e-invoices (via Ariba Network). 3-way matching (PO-GR-Invoice) and exception approval workflow	Matched invoices are automatically posted to S/4HANA FI-AP
Ariba Supplier Lifecycle & Performance	Supplier Management	Supplier registration, onboarding, and risk assessment. Periodic KPI evaluation (delivery/quality/cost) and supplier portal	Evaluation results are reflected in the S/4HANA MM vendor master (XK01)
Ariba Spend Analysis	Spend Analysis	Aggregation of all purchasing data, category classification, and contract-compliance analysis. Visualization of spend and identification of cost-reduction opportunities	Integrated analysis of S/4HANA MM purchasing actuals and Ariba transaction data
Ariba Network (Business Network)	Supplier Network	A B2B e-commerce platform with more than 7 million registered suppliers. Supports diverse connectivity methods including EDI, cXML, and PDF-OCR	The Business Network Starter Pack is included as standard in RISE with SAP

8.2　SAP Concur — Expense and Travel Management

■ Licensing

Cloud SaaS (separate contract)　│　Cloud SaaS, separate contract　|　Billing: based on the number of processed expense line items, or based on active users

SAP Concur is a SaaS solution for business travel. AI-OCR-based automatic receipt capture, approval workflow, automatic FI posting, and policy-violation detection shorten the expense-settlement cycle to an average of within five days. It provides seamless, end-to-end management from travel booking through expense settlement to FI posting.

SAP Concur Sub-Solutions

Sub-Solution	Full Name	Key Functions	S/4HANA Integration
Concur Expense	Expense Settlement	Photograph a receipt → automatic AI-OCR capture → creation of an expense line item. Approval workflow, cost allocation (cost center/project), and automatic foreign-currency/tax processing	Automatically posted to S/4HANA FI-AP after settlement is finalized (including cost center allocation)
Concur Travel	Travel Booking and Management	Integrated booking of flights, hotels, and rental cars (GDS integration). Travel-policy compliance checks (spending limits, seat class, etc.). Approval-to-booking-confirmation flow	Travel expense actuals are automatically linked to Concur Expense, completing through FI posting
Concur Request	Pre-Approval and Budget Management	Cost estimation and pre-approval request prior to travel. Budget balance check and CO budget consumption management	CO budget inquiry (reference to KP06); links to Concur Travel after approval
Concur Invoice	Invoice Processing	OCR processing and matching of vendor invoices (non-EDI). Automatic approval chain for small/recurring payments	Approved invoices are posted to S/4HANA FI-AP
Concur Detect (Audit)	Fraud Detection and Audit	AI/machine-learning-based detection of expense-fraud patterns (duplicate claims, policy violations, fabricated receipts). Risk-prioritized auditing via anomaly scoring	Integration with FI internal control reporting

8.3　SAP IBP — Integrated Business Planning

■ Licensing

Cloud SaaS (separate contract)　│　Cloud SaaS, separate contract　｜　Billing: number of planning users (Planner) + number of items covered (SKU count)　｜　Use of AI demand forecasting consumes additional AI Units

SAP IBP is a SaaS solution specialized in supply chain planning. Whereas S/4HANA PP’s MRP handles individual requirements calculations, IBP handles planning integration, the S&OP process, and demand forecasting on a “company-wide, several-weeks-to-several-months-ahead” horizon. The two products are complementary, with production plans formulated in IBP fed into S/4HANA PP’s MRP.

IBP Submodules / Functions

Functional Component	Full Name	Key Functions	Integration with S/4HANA
IBP for Demand	Demand Planning	AI/ML demand forecasting, accounting for seasonality and promotional impact. Collaborative planning (consensus planning) with the sales organization	Demand-planning results are fed into S/4HANA PP’s MPS as the input plan
IBP for S&OP	Sales & Operations Planning	Monthly integrated S&OP process combining demand, supply, and financial plans. Scenario comparison (what-if analysis) and support for executive decision-making	The approved S&OP plan is passed to IBP Supply to be translated into an execution plan
IBP for Supply (Response & Supply)	Supply Planning	Integrated calculation of production, procurement, and transportation plans. Accounts for constraints (equipment capacity, procurement lead time, inventory limits). Real-time, constraint-aware capable-to-promise (CTP) planning	Supply plans are fed to S/4HANA PP (as firmed planned orders)
IBP for Inventory	Inventory Optimization	Statistical calculation of target inventory levels (service level vs. inventory cost). Segment-specific inventory strategy via ABC-XYZ analysis	Automatically updates the S/4HANA MM safety-stock setting (via BAPI/API integration)
IBP Control Tower	Control Tower	Real-time, end-to-end supply-chain visibility. Risk-event detection, alert management, and alternative-scenario simulation	Unified monitoring of data from S/4HANA, external systems, IoT, and more
Responsible Planning (IBP Sustainability)	Sustainability-Aware Planning	Constraint-aware supply/demand planning that incorporates sustainability indicators such as CO2 emissions and water usage	Integration with the S/4HANA Sustainability Management module

8.4　SAP Fieldglass — External Workforce Management (VMS)

■ Licensing

Cloud SaaS (separate contract)　│　Cloud SaaS, separate contract　|　Billing: percentage of managed external-workforce cost (% of spend)

SAP Fieldglass is a VMS (Vendor Management System) SaaS that provides integrated management of contingent workers — temporary staff, outsourced personnel, consultants, and freelancers. It covers the entire lifecycle, from sourcing external workers through work management, invoice processing, and compliance management, and integrates with SuccessFactors (permanent employees) and S/4HANA (finance/procurement).

SAP Fieldglass Sub-Solutions

Sub-Solution	Full Name	Key Functions	Integration
Fieldglass Services Procurement	Services Procurement Management	Management of purchasing services such as outsourcing and consulting. Creating, bidding, contracting, and confirming results for statements of work (SOW)	Integration with S/4HANA MM services procurement enables 3-way matching
Fieldglass Worker Management	External Workforce Management	Work management for temporary staff and contract workers. Timesheets (weekly approval), cost management, and extension/termination processing	Shares organizational information with SuccessFactors EC; posts costs to S/4HANA FI
Fieldglass Worker Engagement	Onboarding Management	Automation of onboarding procedures for external workers. Centralized management of NDA, badge, and system-access requests	Data integration with SuccessFactors Onboarding (organization, department, and manager information)
Fieldglass Analytics	External Workforce Analytics	Analysis of external-workforce cost, utilization, and procurement lead time. Performance management by supplier (staffing agency)	BI integration with SAC for a combined analysis of permanent + external workforce cost
Total Workforce Management (TWM)	Integrated Workforce Management	Integrated management of permanent employees (SuccessFactors) + external workers (Fieldglass); headcount planning and cost optimization	An integrated dashboard combining SuccessFactors EC and Fieldglass data

8.5　SAP Analytics Cloud (SAC) — Integrated Analytics and Planning Platform

■ Licensing

Cloud SaaS (separate contract)　│　Cloud SaaS, separate contract　|　Billing: by user role (Viewer/BI User/Planner)　|　No additional fee for a live connection to S/4HANA

SAP Analytics Cloud (SAC) is a cloud SaaS that delivers BI, FP&A, and predictive analytics on a single platform. In addition to live connections to SAP products such as S/4HANA, BW/4HANA, IBP, and SuccessFactors, it also integrates data from non-SAP products (Salesforce, Google Analytics, etc.). It offers “Augmented Analytics” (AI-enhanced analysis), including natural-language queries and Smart Discovery features.

SAP Analytics Cloud Sub-Solutions

Sub-Solution	Full Name	Key Functions	Integration
SAC BI / Analytics	Business Intelligence	KPI dashboards and interactive reports. Smart Discovery (AI-driven automatic correlation analysis). Natural-language queries (e.g., “What were the top 10 products by sales last month?”)	Real-time analysis via live connections to S/4HANA and BW/4HANA
SAC Planning (FP&A)	Financial Planning and Budgeting	Budgeting, rolling forecasts, and scenario comparison. Driver-based planning, allocation rules, and alignment management with CO planning	Compares S/4HANA FI/CO actuals and plan values side by side, with variance analysis
SAC Predictive Analytics	Predictive Analytics	No-code execution of machine learning (time-series forecasting, classification, and regression). Visualization of prediction intervals and influencing factors	Integration with IBP demand planning to build statistical forecasting models in SAC
SAC Supply Chain Planning	Supply Chain Planning	Network optimization of inventory, transportation cost, and lead time. Dashboarding of IBP Control Tower data in SAC	Integrated visualization of IBP + S/4HANA data in SAC
SAC Sustainability Management	ESG / Sustainability	Data collection for GHG emissions (Scope 1/2/3), energy consumption, and water usage; automatic generation of CSRD/TCFD-compliant reports	Data integration with the S/4HANA Sustainability Management module
SAC Embedded Analytics	Embedded Analytics in S/4HANA	SAC widgets embedded directly in S/4HANA Fiori screens; check KPIs and drill down without leaving the business screen	Standard live connection to S/4HANA (included as standard in RISE/GROW)

8.6　SAP Customer Experience (CX, formerly C/4HANA)

CX is a group of cloud products in the CRM space, consisting of Sales Cloud (sales), Service Cloud (service), Commerce Cloud (e-commerce), Emarsys (marketing), and Customer Data Cloud (customer ID and consent management). In manufacturing, it is used for B2B commerce, after-sales service, and sales-channel management, integrating with S/4HANA (SD/Service).

■ Licensing

Cloud (individual subscription for each Cloud offering)

SAP CX Sub-Solutions

Abbreviation	Full Name	Key Functions	Representative T-Codes
CX-SAL	Sales Cloud	Opportunities, leads, sales support, and CPQ integration	(Cloud)
CX-SVC	Service Cloud	Case management, field service, and omnichannel support
CX-COM	Commerce Cloud	B2B/B2C e-commerce, catalog, cart, and self-service purchasing
CX-MKT	Emarsys / Marketing	Campaigns, segmentation, and personalization
CDC	Customer Data Cloud	ID/consent management and profile integration (CIAM)

8.7　BRIM (Billing and Revenue Innovation Management)

BRIM is a solution that handles complex billing models such as subscriptions and usage-based billing. It integrates convergent charging/invoicing, contract accounts receivable (FI-CA), and subscription management, supporting IoT services and XaaS-type businesses.

■ Licensing

S/4HANA + cloud extension (Subscription Billing)

BRIM Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
BRIM-SOM	Subscription Order Management	Subscription contracts, rate plans, and change management	(Cloud)
BRIM-CC	Convergent Charging	Usage-based billing and real-time rating
BRIM-CI	Convergent Invoicing	Aggregation of multiple line items and invoice generation
FI-CA	Contract Accounts Receivable	High-volume receivables and payment clearing (utility/telecom-type businesses)

8.8　SAP Sustainability (Sustainability and Carbon Accounting)

The Sustainability group of products manages CO2 emissions and ESG. It consists of Sustainability Footprint Management (product/corporate carbon-footprint calculation), Green Ledger (posting carbon as a financial dimension), and the Sustainability Control Tower (ESG disclosure reporting), and demand is growing amid regulations such as CSRD.

■ Licensing

Cloud extension (BTP)

SAP Sustainability Sub-Solutions

Abbreviation	Full Name	Key Functions	Representative T-Codes
SFM	Footprint Management	Product/corporate-level CO2 calculation, Scope 1-3, and integration of actual data	(Cloud)
Green Ledger	Green Ledger	Posts emissions as financial journal entries; manages carbon as an accounting dimension
SCT	Sustainability Control Tower	Aggregation of ESG indicators and creation of CSRD/disclosure reports
RDP	Responsible Design & Production	Packaging materials, waste, and EPR (Extended Producer Responsibility) compliance

8.9　SAP Datasphere & Signavio (Data Platform and Process Analytics)

This is a group of data- and process-related foundational products. SAP Datasphere (formerly DWC) is a business data fabric, BW/4HANA is a data warehouse, SAP Signavio provides process mining and modeling, and SAP LeanIX provides enterprise architecture management. Together with SAC (Section 8.5), they form the company-wide foundation for BI, analytics, and process improvement.

■ Licensing

Cloud (BTP, individual subscription)

Data / Process Analytics Related

Abbreviation	Full Name	Key Functions	Representative T-Codes
Datasphere	Business Data Fabric	Company-wide data integration, semantic modeling, and virtualization	(Cloud)
BW/4HANA	Data Warehouse	Large-scale data accumulation and multidimensional analysis
Signavio	Process Mining/Modeling	Business-process visualization, bottleneck analysis, and improvement
LeanIX	Enterprise Architecture	IT-landscape and application-portfolio management

8.10　SAP BW/4HANA & BPC (Data Warehouse, Planning, and Consolidation)

SAP BW/4HANA is a next-generation data warehouse that integrates and accumulates core data from S/4HANA and other systems for multidimensional analysis; its cloud successor is SAP Datasphere (Section 8.9). SAP BPC (Business Planning and Consolidation), which runs on top of BW, handles planning and consolidation in an integrated manner, covering budgeting, forecasting, and group consolidation. However, BPC is nearing the end of its product lifecycle, and organizations are increasingly migrating planning to SAC Planning and consolidation to S/4HANA Group Reporting / BCS/4HANA.

■ Licensing

BW/4HANA and BPC 11.1 for BW/4HANA are separately licensed on-premise products　│　Successors: SAC Planning / Group Reporting (Cloud)

BW/BPC Related

Abbreviation	Full Name	Key Functions	Representative T-Codes
BW/4HANA	Data Warehouse	Core-data integration, multidimensional analysis, and a reporting foundation	RSA1
BPC-P	Planning & Budgeting	Budgeting, forecasting, and driver-based planning (successor: SAC Planning)
BPC-C	Consolidation	Group consolidation and elimination of intercompany transactions (successor: Group Reporting/BCS4)
BEx	BEx Query	Multidimensional queries and OLAP analysis	RSRT

⚠ BPC is nearing end of support (BPC 10.1 for Microsoft is scheduled to reach end of support in 2026, and the NetWeaver version in 2027). New implementations should be designed around SAC Planning + Group Reporting.

8.11　SAP BusinessObjects BI & PaPM (Reporting and Profitability Analysis)

SAP BusinessObjects BI is a traditional BI suite (Web Intelligence, Analysis for Office, Crystal Reports) that handles both standard and ad hoc reporting. Strategically, consolidation toward SAC (Section 8.5) is progressing, but BusinessObjects remains widely used for existing standard reports and Excel-based analysis. SAP PaPM (Profitability and Performance Management) is an engine that performs high-speed cost allocation, profitability analysis, and cost modeling, complementing management accounting (CO-PA).

■ Licensing

BusinessObjects BI is a separately licensed on-premise product / PaPM is an S/4HANA extension　│　The strategic product is SAC

BI / Profitability Analysis Related

Abbreviation	Full Name	Key Functions	Representative T-Codes
WebI	Web Intelligence	Ad hoc and standard report creation
AO	Analysis for Office	Excel-integrated multidimensional analysis (BW/HANA)
Crystal	Crystal Reports	Precision forms and printed reports
PaPM	Profitability & Performance Mgmt	High-speed calculation of allocations, profitability analysis, and cost models

8.12　SAP GRC (Governance, Risk, and Compliance)

SAP GRC (Governance, Risk and Compliance) is a control platform that handles access-authorization controls, business-process controls, risk management, and audit. In 2026, “SAP GRC for HANA 2026” will integrate Access Control, Process Control, Risk Management, Audit Management, Business Integrity Screening, and UI Masking/Logging into a single platform, renewed with Fiori 3 and an API-first architecture (support is planned to be extended to 2040). This is a critical area for manufacturers as well, given the importance of segregation-of-duties (SoD) checks and internal control compliance.

■ Licensing

Separately licensed on-premise/private cloud product (each component is unified in GRC for HANA 2026)

SAP GRC Submodules

Abbreviation	Full Name	Key Functions	Representative T-Codes
GRC-AC	Access Control	Segregation of duties (SoD), authorization requests/certification, and emergency access (Firefighter)
GRC-PC	Process Control	Internal controls, control assessment, and automated testing
GRC-RM	Risk Management	Risk identification, assessment, response, and KRI monitoring
GRC-AM	Audit Management	Audit planning, execution, and remediation management
GRC-BIS	Business Integrity Screening	Transaction screening and fraud detection

Chapter 9: SAP BTP — Business Technology Platform

■ Licensing

BTP credit consumption　│　BTP credit model (Global Account Credit consumption)　｜　A base amount is included in RISE/GROW　｜　Additional purchase required for large-scale use

SAP BTP is a common platform that technically integrates the SAP product portfolio with third-party systems. It functions as the “technical glue” connecting S/4HANA, Ariba, SuccessFactors, and external systems.

BTP Service	Description	BTP Credit Consumption
Integration Suite	API/EDI integration between SAP-to-SAP and SAP-to-non-SAP systems. Based on the number of messages processed (million messages/month)	Consumed according to the number of messages processed; small-scale integrations are covered by RISE’s base allotment
Extension Suite	Low-code/no-code business application development. Fiori, mobile apps, and the BTP ABAP Environment	Consumed according to resource usage time; basic use of SAP Build is included in GROW
AI / SAP Joule	Generative AI assistant (specialized for SAP business processes). Document summarization, code generation, and predictive analysis	Consumed as AI Units (based on the number of inferences); a base amount will be included in RISE/GROW starting in 2026
Workflow / RPA	Business approval workflow and RPA automation robots	Workflow: number of active workflow instances; RPA: robot execution time
DataSphere	Enterprise DWH and data integration for SAC. Integrated analytics foundation combining S/4HANA + IoT + external data	Based on stored data volume and query processing volume
Security & Identity	Identity Authentication (IdP), single sign-on, and access management	A base amount is included in RISE/GROW

Chapter 10: Choosing an SAP Deployment Model

Item	GROW with SAP (Public Cloud)	RISE with SAP (Private Cloud)
Overview	Multi-tenant SaaS (multiple companies share the same underlying platform)	Single-tenant (a dedicated cloud environment for the company)
Customizability	Limited to standard functionality + BTP extensions only	S/4HANA standard functionality + custom development possible
Upgrades	Automatically applied quarterly, led by SAP	Roughly once a year; the customer coordinates the schedule
Best Fit	Mid-sized companies prioritizing process standardization; new/greenfield implementations	Large enterprises with complex business processes; major manufacturers and globally operating companies
EWM/TM	Embedded EWM/TM included as standard (functionality added via upgrades)	Embedded EWM/TM included as standard; integration with standalone versions is also possible
LO-VC / AVC	AVC (Advanced Variant Configuration) is standard; intuitive modeling via the Fiori Expert app	Choice of LO-VC (traditional) or AVC; migration tools available to convert LO-VC → AVC
Implementation Duration	6-12 months	12-36 months (depending on complexity)

Chapter 11: Understanding SAP Licensing (as of June 2026)

11.1　License Types by Module

SAP’s licensing model is determined along two axes: the “type of module” and the “type of user” accessing it. Understanding which license category each module belongs to is the starting point for designing your licensing cost structure.

Module / Solution	License Category	Included Package	Notes / Points to Watch
FI (Financial Accounting)	S/4HANA core	Included as standard in RISE / GROW	—
CO (Controlling)	S/4HANA core	Included as standard in RISE / GROW	—
MM (Purchasing / Materials Management)	S/4HANA core	Included as standard in RISE / GROW	—
EWM (Extended Warehouse Management)	S/4HANA core (Embedded EWM)	Included as standard in RISE / GROW	Advanced robotics integration and automated warehouse control may require additional consideration in some cases
TM (Transportation Management)	S/4HANA core (Embedded TM)	Included as standard in RISE / GROW	Large-scale global transportation (standalone TM) may require a separate license check in some cases
aATP (Advanced Available-to-Promise)	S/4HANA core	Included as standard in RISE / GROW	Replaces the legacy ATP; automatically switches to aATP upon migration to S/4HANA
SD (Sales and Distribution)	S/4HANA core	Included as standard in RISE / GROW	—
PP (Production Planning)	S/4HANA core	Included as standard in RISE / GROW	—
LO-VC / AVC (Variant Configuration)	S/4HANA core	Included as standard in RISE / GROW	AVC: standard for Public Cloud; LO-VC: standard for Private Cloud (migrating toward AVC)
QM (Quality Management)	S/4HANA core	Included as standard in RISE / GROW	—
PM (Plant Maintenance)	S/4HANA core	Included as standard in RISE / GROW	—
CS / SAP Service	S/4HANA core	Included as standard in RISE / GROW	SAP FSM (Field Service Management) requires a separate cloud SaaS contract
PS (Project System)	S/4HANA core	Included as standard in RISE / GROW	—
HCM (On-Premise HR / Payroll)	S/4HANA core, or separate	Private Cloud (RISE)	Japan payroll: SAP HCM for Japan (confirm separately); migration to SuccessFactors is recommended for new implementations
SAP IBP	Cloud SaaS, separate contract	Purchased separately	Billed based on the number of planner users + SKU count; not included with S/4HANA
SAP Ariba	Cloud SaaS, separate contract	Purchased separately (the Business Network Starter Pack is included in RISE)	Billed based on managed spend (TVF); a free tier is available (up to a TVF threshold)
SAP SuccessFactors	Cloud SaaS, separate contract	Purchased separately	Billed based on employee count (PEPM); the unit price increases as modules are added
SAP Concur	Cloud SaaS, separate contract	Purchased separately	Based on the number of expense line items, or on active users
SAP Fieldglass	Cloud SaaS, separate contract	Purchased separately	% of managed external-workforce spend
SAP Analytics Cloud	Cloud SaaS, separate contract	Purchased separately	Billed by user role (Viewer/Planner/BI User); no additional fee for a live connection to S/4HANA
SAP BTP	BTP credit model	A base amount is included in RISE / GROW; usage beyond that is purchased separately	Credit consumption rates vary by service (Integration/AI/Data, etc.)

11.2　Types of User Licenses and the FUE Model

User License Type	Access Scope	FUE Conversion Ratio (Approximate)	Typical Users
Professional User	Full access to all modules and all functions	1.0 FUE	Accounting, purchasing, and production management staff, etc. — those who use S/4HANA fully in daily operations
Advanced User (Limited Professional)	Only functions within a specific business domain (e.g., finance-specific, procurement-specific)	0.3-0.5 FUE (depending on role)	Domain-specialized specialists and managers
Employee (Self-Service) User	Only self-service Fiori apps such as leave requests, expense requests, and training enrollment	0.033 FUE (1/30)	Plant workers, sales staff, etc. — users who only submit requests or make inquiries
Developer / Test User	Dedicated to development/test environments (not for production use)	Separate (fixed rate or FUE-converted)	ABAP developers, BASIS administrators

FUE (Full Use Equivalent) Calculation Example

[Example FUE Calculation for RISE with SAP] 50 Professional Users x 1.0 FUE = 50.0 FUE 100 Advanced Users x 0.4 FUE = 40.0 FUE 500 Employee Users x 0.033 FUE = 16.5 FUE ──────────────────────────────────── Total: 106.5 FUE → The annual subscription price is determined based on the total FUE count Pricing is undisclosed and subject to negotiation. Discounts are typically available for 5-year contracts

11.3　Digital Access and Document-Based Licensing

A point requiring particular attention in manufacturing is “Digital Access” licensing. When a third-party system (an MES, an e-commerce site, an IoT gateway, etc.) creates documents in SAP via an API, a Document-based License (DBL) is required.

Target Scenario	Whether Document-Based Billing Applies	Countermeasures / Points to Note
An MES system sends production results to S/4HANA PP (generating a GR document)	Highly likely to be a billable scenario	DBL (billed per GR document); consider designing the integration via BTP Integration Suite
Sales orders are automatically generated in S/4HANA SD from an e-commerce site	Highly likely to be a billable scenario	DBL (billed per sales order); if routed through SAP Ariba, this may be covered on the Ariba side
Vendor purchase orders are automatically received via EDI/B2B integration	Highly likely to be a billable scenario	DBL (billed per purchase order); confirm separately if routed through SAP Business Network
IoT/sensor data collection only (no document generation, read-only)	Generally not billable (pure reference access that does not generate documents)	A data-read design via SAP BTP DataSphere is recommended
Access via SAP-certified connectors or standard Fiori apps	Generally not billable	Access via standard SAP interfaces is often free of charge, but should be confirmed

11.4　Key Licensing Trends for 2026

As of June 2026 — Important SAP Licensing Trends

① Responding to the end of ECC (R/3) maintenance 2027: Mainstream support for SAP ERP 6.0 (ECC) ends → A growing number of companies are being pushed to migrate to S/4HANA → Use RISE with SAP migration incentives (leveraging existing maintenance spend) as a negotiating point ② The Clean Core strategy is reshaping the licensing structure SAP is strongly promoting the migration of custom ABAP development away from the S/4HANA core and onto BTP → Clean Core strengthens S/4HANA’s standard functionality, reducing the scope of custom development → Correspondingly, be aware that this increases BTP Credit consumption ③ AI Unit consumption is becoming mainstream As Joule (SAP AI) functionality expands, understanding and forecasting AI Units consumption is becoming important → A growing number of companies are expected to incur AI Units overage charges starting in the second half of 2026 → In manufacturing, Units consumption is increasing due to AI use in MRP optimization, demand forecasting, and quality-anomaly detection ④ Preparing for license audits (USMM) SAP requires an annual USMM (System Measurement) exercise and declaration Unintended excess use of Digital Access carries the risk of retroactive billing → Quarterly self-review of license usage status is recommended ⑤ Pricing is undisclosed, and there is significant room for negotiation SAP’s list license pricing is entirely undisclosed Multi-year contracts, simultaneous purchase of multiple cloud solutions, and high FUE volumes can enable substantial discounts → Negotiating price through an SI partner is often effective

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