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:

When opening the scope activity, you are prompted to choose the country/region(s) in which the development system content should be activated. 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 55 standard local versions in 33 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 Practice 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 Toolkit (CLT) 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 CLT 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 if the Configuration Localization Toolkit (CLT) is enabled. Select this button to choose a source country/region (where business content is inherited from) and a target country/region.

Watch the video below to learn how the Configuration Localization Toolkit works in SAP Central Business Configuration, and further extensions that can be made in SAP S/4HANA Cloud.

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. There are two scenarios for the different bundles:

• Baseline Accelerator bundle - the customer needs some business processes across a few lines of business (LoBs). This bundle preselects a set of approximately 60 business processes that are absolutely necessary for the core Administrative ERP processes between Finance, Sales, and Sourcing and Procurement to function correctly. From there, you can add additional processes in other LoBs ad-hoc to align with the finalized scope documented in SAP Cloud ALM.
• Enterprise Management bundle - the customer needs many business processes across most LoBs. Keep in mind, business processes that are part of the bundle cannot be removed because there are technical interdependencies between many of these processes.

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

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.

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 case in SAP for Me → Services and Support dashboard to request activation.