Defining Localizations and Scope

The deployment target is where SAP Central Business Configuration will activate the business processes and country/regions. Each workspace should be connected to one of the two SAP S/4HANA Cloud development system tenants.

Learn how to assign a deployment target in SAP Central Business Configuration in this tutorial:

The customer completed the digital discovery assessment during the Discover phase (sales phase) of the SAP Activate Methodology, which included a list of business processes. After the Fit-to-Standard workshops, this list of business processes was likely adjusted by removing some processes that were deemed unnecessary, or adding additional processes that weren't originally scoped on the assessment.

The digital discovery assessment still remains editable, therefore a user with permission can add/remove processes in alignment with the finalized list of business processes after Fit-to-Standard workshops have completed. The finalized list of the business processes should be documented in the Scope app of SAP Cloud ALM. This list of processes can then be exported in a JSON file, which can then be imported to SAP Central Business Configuration.

To export the JSON file from the digital discovery assessment, follow these steps:

1. A user with permission to the tool (e.g. the customer who signed the contract with SAP or the customer IT Contact) navigates to the digital discovery assessment.
2. Select the Supply Chain of Selling app.
3. Select the customer assessment.
4. Select the tab titled Import & Export.
5. Select the button Export to JSON for CBC.

Alternatively, you can upload the scope from the digital discovery assessment without adding/removing business processes and manually add/remove processes directly in SAP Central Business Configuration. After exporting the JSON file from the digital discovery assessment, navigate to the relevant SAP Central Business Configuration workspace and instead of manually entering the Country/Region data, select the option to Import Scope from JSON File. Upload your file here, and add/remove any business process scenarios as needed.

Learn how to import scope from a JSON file in SAP Central Business Configuration in this tutorial:

If the scope has not already been imported from the Digital Discovery Assessment, you will be prompted to choose the country/region(s) in which the development system content should be activated in the Define Scope activity. You can also select any languages besides the default associations.

For example, German is the default language for the country, Germany, but you could also turn on additional languages. Please note that English is a default language for all countries (in addition to that country's primary language), and cannot be de-selected.

Localization is the process of adapting business processes and languages to fit different countries and regions. SAP S/4HANA Cloud Public Edition covers approximately 60 standard local versions in 30+ languages, with additional local versions and languages being continuously added each release. We differentiate localizations into two main categories: SAP-delivered local versions and customer local versions.

This refers to our SAP Best Practices business processes, which are already designed to comply with a wide range of local financial reporting standards, legal frameworks, tax calculations, and regulations.

• Business process documentation is in SAP Signavio Process Navigator → Solution Scenario → SAP Best Practices for SAP S/4HANA Cloud Public Edition → Select the Country/Region drop-down menu to change the local version.
• SAP is responsible for delivering legal changes for SAP Best Practices business process content.

This refers to using the Configuration Localization Tool in SAP Central Business Configuration to deploy business process content for a country/region not supported by SAP Best Practices. First, you select a source country that IS covered by SAP Best Practices (e.g. Germany), then you choose a target country that IS NOT covered by SAP Best Practices (e.g. Albania, Anguilla, Bermuda, Iceland). The target country inherits the business processes supported for the source country, and you can then build the organizational structure with entities specific to the target country.

• Functional restrictions and full list of target countries and business processes supported by Configuration Localization Tool are documented in SAP Note 3107866.
• Customer is responsible for maintaining compliance with the legal, financial, and other reporting requirements of the target country.

In the scope activity in SAP Central Business Configuration, you will see a button called More Countries/Regions. Select this button to choose a source country/region (where business content is inherited from) and a target country/region.

Learn how to create a target country/region based on a source country/region with the Configuration Localization Tool.

Further localizations can be made using extensibility described in the SAP Help Portal here.

• Are there unique reporting and/or compliance requirements for this country/region?
• In which lines of business are there unique requirements?
• Do we need to change existing reports or create new, custom reports to align with requirements?
• Are the built-in features of Advanced Compliance Reporting enough to align with local requirements? If not, consider SAP Document and Reporting Compliance, which is an end-to-end solution that enables you to create, process, and monitor transactional documents and periodic regulatory reports across countries or regions.
• Do we need to change any process flows, applications, or output documents to align with requirements?

• Taxes
  • Tax ID format validation
  • Calculating indirect taxes
  • Determining tax code automatically in purchase orders
• Payments
  • Create, copy, and extend payment medium formats
• Invoicing
  • Print billing document forms with custom field
  • Extending Electronic Outgoing invoices
• Statutory Reporting
  • Create a new Withholding Tax report using Document and Reporting Compliance
  • Creating a new Cash Flow Report

After selecting the Country/Region(s), and Languages, you select the scope bundle. The bundles include:

• The Baseline Accelerator bundle contains the minimum necessary scenarios required for a well-functioning SAP S/4HANA Cloud Public Edition solution. It contains mainly finance-related scenarios.
• The Enterprise Management bundle is an extensive bundle appropriate for large enterprises. It contains all the content of the Baseline Accelerator bundle and other scenarios, including sales, procurement, and manufacturing scenarios.
• The Retail bundle contains scenarios relevant for the retail industry. This bundle is license-dependent.
• The Public Sector Management bundle contains scenarios which manage the budget of revenue and expenditure at public institutions, such as federal, state, and local authorities. For example, for a government, nonprofit, or educational organization in the United States that needs to comply to funds and budget accounting (including US-GASB), you need this bundle.
  Note

  This bundle cannot be selected together with other bundles.

After choosing a bundle, select the My Selected Scope button in the upper right corner to view a list of all selected processes.

You can quickly identify important scenarios that are only selectable during initial scoping in the Define Scope app. The filter drop-down menu titled Selection Allowed lets you display scenarios that can only be added initially, and cannot be added later. This is important because if you do not select the necessary scenarios during initial scoping (for example, a group ledger scenario), you would need to re-provision the SAP S/4HANA Cloud system and start over with a new workspace in SAP Central Business Configuration. This filter menu provides clarity on the scope decisions you need to make before confirming your business process scope for the first time.

Next, select the group ledger scenario(s). During the initial scope selection, you must decide which (if any) additional valuations are needed for the customer's financial data. By default, the system is delivered with a single, leading ledger (0L) assigned to the local accounting principle. The leading ledger is from the business process J58: Accounting and Financial Close, which is always active.

In SAP S/4HANA Cloud Public Edition, you can choose to add an additional ledger and accounting principle to cover:

• Ledger 2L (non-leading ledger): Accounting and Financial Close - Group Ledger IFRS (International Financial Reporting Standard) (1GA)
• Ledger 3L (non-leading ledger): Accounting and Financial Close - Group Ledger US GAAP (United States Generally Acceptable Accounting Procedures) (2VA)
• Ledger 4G (non-leading ledger): Group Valuation (5W2)

Selecting additional ledgers during scoping is critical because you can’t modify the settings after completing the activity. The SAP S/4HANA Cloud system is fixed with the valuations you chose during this initial scoping.

If there will be multiple countries/regions, it's possible to select both ledgers and choose for which countries/regions the different ledgers are used.

To learn more about a scenario, select the title of the tile and a new browser tab will open with the business process information in SAP Signavio Process Navigator, which is the library of all business process documentation.

Learn more about Ledger Scenarios and Assigning Accounting Principles to Ledgers and Company Codes.

In addition, there are several integration-related business processes that are excluded from the default bundles because they require a license for an additional product. Only add these to the scope if they are relevant for the customer - meaning the customer has a license for the other required product(s). After making these selections, complete the activity.

Learn how to define the scope and localizations in SAP Central Business Configuration in this tutorial:

Not all integration scenarios can be activated in SAP Central Business Configuration. For scenarios not available in the scoping area of SAP Central Business Configuration, create a support case in SAP for Me → Services & Support dashboard to request activation.