S2P in Depth 2022-12-18

Source To Pay – Deep Dive
From process, to application, to persona …

Jimmy Wei, Phil Loewen
19.12.2022
R2R L2C D2O S2P
© 2022 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences. | Public | 1
Agenda
01. – E2E Source To Pay Overview
02. – Source & Contract
03. – Plan & Forecast
04. – Buy & Deliver
05. – Invoice & Pay
06. – Solution Landscape
07. – Personas Flow
S2P
Integrated Source To Pay Process
Source & Contract

• Define and create the category strategy
• Identify and source material and service needs
• Negotiate & manage contracts with trading
partners
Source & Contract Plan & Forecast Buy & Deliver Invoice & Pay
Plan & Forecast

BUSINESS APPLICATIONS • Plan and forecast demand for goods, services
and resources
SAP Business Network
SAP Ariba solutions

Buy & Deliver
• Initiate a request for purchasing goods &
SAP S/4HANA services
• Execute orders for goods & services
SAP Fieldglass solutions Partner Third Party • Deliver & receive goods & services
Invoice & Pay

• Create/manage the invoices and credit memos
• Apply early payment options
SAP One Domain Model: Supplier | Product • Pay trading partners for goods delivered and
services rendered
SAP API
SAP BUSINESS TECHNOLOGY PLATFORM Business Hub
Unified Services Offering and Operations
Source To Pay: Source & Contract – Applications and Personas
Sourcing Contracting
Identify material and service needs Negotiate & manage agreements
and discover market capable suppliers with partners and suppliers
• SAP Ariba Contract

• SAP Ariba Sourcing
• SAP S/4HANA
• SAP S/4HANA
• SAP Enterprise Contract Management
Business Value
1 Structure sourcing processes as appropriate for 2 Leverage the digital collaboration capabilities with your 3 Get visibility and transparency of all planned and
simple or complex projects. Specify key deliverables suppliers and stakeholders to establish competitive executed sourcing events or savings initiatives. Apply
while centralizing content and communications using bidding. Evaluate digital offers with questionnaires and best practices across your organization and leverage
a single solution for all spend categories – services, smart templates to drive a collaborative, purposeful, category templates to standardize processes,
indirect materials, and direct materials. transparent, and compliant sourcing process. increase efficiency, and manage knowledge.
Stay on top of deadlines, renewal dates, and modifications

4 Collaboration with internal stakeholders during the 5 6 Front-end compliance with internal requisitioning
with automated notifications and alerts.
contract authoring process and externally with policies built into the solutions to minimize maverick
The template and legal clause library helps streamline
suppliers through negotiation to signature and buying. E-signature capabilities provide the same
contract creation, while stored information such as bids
publication. Paperless workflows create a digital level of audit and regulatory compliance as pen and
and negotiated pricing and terms further aid the process.
audit trail and provide complete transparency to ink – without the need for paper. Tamper-proof
Dashboards and configurable reports provide users with
everyone involved in the contracting process. master contracts are stored in secure data centers.
pertinent information based on role.
Source To Pay: Source & Contract - Applications and Personas
Sourcing Contracting
Identify material and service needs Negotiate & manage agreements
and discover market capable suppliers with partners and suppliers
Personas
Head of Sourcing Head of IT Head of Finance Head of Sourcing Head of IT Head of Finance
Source To Pay: Plan & Forecast - Applications and Personas
Forecast
Plan and forecast demand for goods,
services and resources
• SAP Business Network

• SAP Integrated Business Planning*
• SAP S/4HANA
*Part of SAP D2O, but plays critical role in S2P
Business Value
1 2 3 Achieve complete supply chain visibility and equip
A common view for buyers and Supplier-managed inventory takes the guess work
your organization to work with multiple tiers of
suppliers makes optimization of out of inventory management. Using replenishment
contract manufacturers and suppliers across key
supply chain stock levels simpler and orders or scheduling agreements, optimal inventory
supply chain planning and execution processes.
more efficient. Custom alerts deliver levels are maintained with a minimum of
Suppliers can report the stock on-hand quantities
vital information on any under- or intervention and time spent monitoring in- and out-
in their inventory so buyers can use this
over-commitment of components so flow in warehouses. By sharing data over the
information to better manage strategic
actions can be taken quickly to keep network, all stakeholders can gain instant access to
components/ parts and proactively detect supply
manufacturing processes going. the status of materials needed for manufacturing.
disruptions.
Source To Pay: Plan & Forecast - Applications and Personas
Forecast
Plan and forecast demand for goods,
services and resources
Personas
Head of Supply Head of Sourcing Head of

Chain Procurement
Source To Pay: Buy & Deliver - Applications and Personas
Request Order Deliver

Initiate a Request for purchasing Execute Orders for goods & Deliver & Receive goods &
goods & services services services
• SAP Fieldglass
• SAP Fieldglass
• SAP Ariba Procurement • SAP Business Network
• SAP Ariba Procurement
• SAP S/4HANA • SAP Ariba Procurement
• SAP S/4HANA
• SAP S/4HANA
Business Value
1 Create and maintain the type of 2 Customizable forms guide users through the 3 Buyers can access requisition status at any point
buyer/supplier relationships that best purchasing process for a simple, streamlined during the process. Online dialog options allow for
suit your business – whether experience. A single order can include both easy and instantaneous communication between
transacting only with preferred products and services, items from internal or buyers and suppliers. For RFQs and POs,
suppliers or purchasing the same external catalogs, or even non-catalog items. Your suppliers receive notifications and simply log into
products from multiple sources. The internal policies determine how the approval their accounts to submit responses and
policies and parameters you choose workflows are structured within the system, whether confirmations. When shipments go out, all
become part of the solution you need upfront enforcement of contract and necessary stakeholders can view courier, tracking
workflows, making user compliance budget checks or a specific approval routing based ID, and bill of lading ID information to stay on top
part of the process. on order value. of the delivery.
Source To Pay: Buy & Deliver - Applications and Personas

Personas
Head of Head of Head of
Head of IT Head of IT Head of IT
Procurement Procurement Procurement
Head of HR Head of HR Head of HR Head of Finance

Source To Pay: Invoice & Pay - Applications and Personas
Invoice Pay
Early Payment
Create & Manage the invoices Pay suppliers for contract
Apply early payment options
and related payments performance/delivery
• SAP Business Network • SAP Business Network • SAP Business Network
• SAP Central Invoice Management • SAP S/4HANA • SAP S/4HANA
• SAP S/4HANA
Business Value
1 A smart invoicing approach simplifies invoice 2 3

Smart business rules automatically validate Transform your payables into
processing to help you achieve new levels
every invoice submitted, so your accounts strategic assets that deliver
processing performance and improve
team can spend less time processing invoices. significant benefits for your company.
compliance while also helping your suppliers to
Exceptions and errors are captured at the Increase your days payable
get paid on time. By eliminating paper and
point of supplier submission – before they outstanding (DPO), earn more on
manual entry through the use of electronic
reach your payables or procurement team. your short-term cash, deliver benefits
invoicing, your organization can greatly reduce
Your suppliers also gain complete visibility to to your suppliers, and close the loop
or eliminate errors and missed or delayed
invoice status and cash forecasting. on your procure-to-pay process.
payments.
Source To Pay: Invoice & Pay - Applications and Personas

Personas
Head of
Head of IT0 Head of Head of IT
Procurement
Procurement
Head of Finance Head of IT
Head of Finance Head of Finance

Source To Pay Solution Landscape: Solution Capabilities
SAP Procurement Suite
 Spend category management  Self-service requisitioning  Process supplier invoice

 Supplier RFx management  Procurement analysis  Guided Buying  Manage financial settlement
 Supplier management  Spend classification and enrichment  Operational quote management  Process accounts payable
 Supplier negotiation management  Spend visibility  Manage purchase order  Process payments
 Procurement contract collaboration  Procurement planning  Receive services  Manage payments and bank
 Contract management  Supplier ship/return management communications
SAP Business Network

 Supply Chain Collaboration Solutions
 SAP Logistics Business Network
 SAP Asset Intelligence Network
SAP S/4HANA
 Operational quote management
 Purchase order processing
 Sources of supply
 Purchase requirements processing
 Source determination  Evaluated receipt settlement
 Purchasing source assignment
 Source list  Supplier invoice processing
 Procurement analytics  Scheduling agreement release
 Operational contract management  Supplier invoice receipt
 Self-service requisitioning
 Outline agreement maintenance management
 Service entry processing
 Purchase info Record maintenance
 Supplier claims/returns
management
Source To Pay Solutions and Processes: Product Master Data Product Master Data Link
Ariba Sourcing BTP Master Data Ariba Procurement
Procurement Data Foundation Data Business Partner Data
Supplier Procurement Data Finance Data Foundation Data Business Partner Data
Plant Product Commodity Supplier Plant Company Incoterms Material

Supplier
Master Code Ariba Network Foundation Data Code Groups
Plant to Commodity Code to Plant to Item
Incoterms Commodity Finance Data Material Group Payment Category Purchasing
Purchasing Purchasing
Code to Terms Document Project Data
Org Bill of Company Org
Material Unit of Item WBS
Materials Group Code Measure Category
Purchase Purchase Cost Elements
Org Item Org Centers
Payment Currency Controlling
Category Terms Area
Purchase Purchase
Tax Codes Regions
Group Currency Group
Conversion Currency
Assignment Conversion
Material G/L Account
Account
Group Categories Network
Payment Orders
Method
Fieldglass Site Procurement Unit Legal Entity Cost Centers G/L Account
SAP S/4HANA Cloud
Procurement Data Plant Plant to Purchasing Org Purchase Org Purchase Group Account Assignment Categories
Finance Data Company Code Payment Terms Cost Centers Tax Codes G/L Account Payment Method
Foundation Data Product Master Incoterms Bill of Materials Item Category Unit of Measure Currency Regions Currency Conversion Network Orders
Purchasing Document Item
Material Group Commodity Code Controlling Area
Category
Business Partner Data Supplier Project Data WBS Elements

• Transactional Data Flow Link
Source To Pay Solutions and Processes: Transaction Data Flows • For other detailed transaction
flow diagram please refer to here
Fieldglass Fieldglass
SOW Fee Payment Notice
Ariba Sourcing Ariba Network Ariba Network
Sourcing Quote Purchase Goods Advanced Ariba Network

Request Event Orders Receipt Shipping
Notification Invoice
Sourcing Order Goods
Quote
Project Confirmation Return
Quote Return
Reversal
Contract
Request Service Entry
Sheet
Contract
Workspace
Ariba Procurement
Requisition
Request for Purchasing Purchase Inbound

Invoice
Quotation Contract Requisition Delivery
Purchase Goods
Quote
Order Receipt
Goods
Return
Service Entry
Sheet
Return
SAP S/4HANA Cloud Reversal
Source To Pay Solutions and Processes: Solution Integration Landscape
Diagram is based on
Solution Components Diagram
Ariba Network
BTP Master Data Integration

SAP Fieldglass
(MDI)
SAP Ariba Master Data

SAP Ariba Sourcing SAP Ariba Procurement
Native Integration
API
SAP Ariba Cloud Integration Gateway
SAP Master Data service for

products
API
SAP S/4HANA Cloud
Source To Pay Solutions and Processes: Product Map Product Map Link
Ariba Network Ariba Network Ariba Network Ariba Network
SAP Ariba Procurement SAP Integrated SAP Ariba Procurement SAP Ariba Sourcing
Business Planning for
SAP Ariba Sourcing SAP Commerce Cloud SAP Commerce Cloud
Supply Chain
SAP Fieldglass SAP Fieldglass SAP Fieldglass
SAP Signature SAP Upscale
SAP Upscale Commerce
Management Commerce
CLOUD
CLOUD (BTP) Ariba Analytics Cloud
SAP Ariba Cloud
SAP Ariba Cloud Integration Gateway SAP Central Invoice
Integration Gateway SAP Procurement Management
SAP Enterprise Intelligence SAP Data Warehouse

Contract Assembly Cloud
SAP Enterprise
Contract Assembly SAP Document & Reporting
Compliance Service
SAP Multi-Bank
Connectivity
SAP Procurement
Intelligence
SAP Variant Configuration
and Pricing
SAP digital payments add-
on
Connector for SAP Multi-
Bank Connectivity
Source To Pay: Process Flow – Personas
Source and Contract Plan and Forecast
Sourcing Contracting Forecast

Identify material and service needs and Negotiate & manage agreements Plan and forecast demand for goods,
discover market capable suppliers with partners and suppliers services and resources
• Head of sourcing • Head of sourcing

• Head of supply chain
• Head of IT • Head of IT
• Head of sourcing
• Head of finance • Head of finance
Buy and Deliver Invoice and Pay
Request Order Deliver Invoice Early Payment Pay

Initiate a Request for Execute Orders for goods Deliver & Receive Create & Manage the invoices Appy early payment Pay suppliers for contract
purchasing goods & services & services goods & services and related payments options performance/delivery
• Head of procurement
• Head of procurement • Head of procurement • Head of procurement • Head of procurement
• Head of IT • Head of IT
• Head of IT • Head of IT • Head of IT • Head of IT
• Head of HR • Head of finance
• Head of HR • Head of HR • Head of finance • Head of finance
• Head of finance
Q&A
Thank
you.

S2P in Depth 2022-12-18

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Source To Pay – Deep Dive

From process, to application, to persona …

R2R L2C D2O S2P

02. – Source & Contract

03. – Plan & Forecast

04. – Buy & Deliver

05. – Invoice & Pay

06. – Solution Landscape

07. – Personas Flow

Source & Contract

Plan & Forecast

SAP Ariba solutions

Invoice & Pay

Unified Services Offering and Operations

• SAP Ariba Contract

Stay on top of deadlines, renewal dates, and modifications

• SAP Business Network

Head of Supply Head of Sourcing Head of

Request Order Deliver

Request Order Deliver

Head of HR Head of HR Head of HR Head of Finance

1 A smart invoicing approach simplifies invoice 2 3

Request Order Deliver

Head of Finance Head of IT

Head of Finance Head of Finance

 Spend category management  Self-service requisitioning  Process supplier invoice

SAP Business Network

Plant Product Commodity Supplier Plant Company Incoterms Material

SAP S/4HANA Cloud

Business Partner Data Supplier Project Data WBS Elements

Ariba Sourcing Ariba Network Ariba Network

Sourcing Quote Purchase Goods Advanced Ariba Network

Request for Purchasing Purchase Inbound

BTP Master Data Integration

SAP Ariba Master Data

SAP Ariba Cloud Integration Gateway

SAP Master Data service for

SAP S/4HANA Cloud

SAP Enterprise Intelligence SAP Data Warehouse

Source and Contract Plan and Forecast

Sourcing Contracting Forecast

• Head of sourcing • Head of sourcing

Buy and Deliver Invoice and Pay

Request Order Deliver Invoice Early Payment Pay

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