Introducing Subsidiary as Production Unit and Internal Supplier to Headquarters (21T)

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce subsidiary as production unit and internal supplier to headquarters (21T)

Introduction to Subsidiary as Production Unit and Internal Supplier to Headquarters (21T)

How to Access SAP S/4HANA Cloud, public edition Scope Item Process Flows and Test Scripts

  1. Navigate to SAP Best Practices for SAP S/4HANA Cloud, public edition for Enterprise Management.
  2. Select a country localization from the Version dropdown list.
  3. If necessary, select the Login icon in the upper left corner to log in.
  4. Go to the Accelerators section and, under General Documents, choose the link SAP Best Practices content library.
  5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.
Ignore the BPMN2 version of process flows.


  • This scope item runs a make-to-order scenario at a subsidiary. A sales order is automatically uploaded to the subsidiary system when a purchase order is created in the headquarters system.
  • The receipt of the sales order is electronically confirmed back to headquarters. After the ordered goods are produced by the manufacturing subsidiary, the delivery process happens.
  • The process includes the electronic sending of an advance shipping notification to the headquarters. Afterwards, the billing process runs at the subsidiary, and an electronic invoice is sent to the headquarters.

Key Process Steps

  • Create sales orders from external source, such as headquarters, and send order confirmations
  • Plan production at subsidiary for finished goods ordered by headquarters
  • Execute production of ordered goods
  • Process deliveries including picking, goods issue, and sending advanced shipping notifications
  • Process billing documents including sending electronic invoices to headquarters


  • Align sales data for production at subsidiary with procurement application at headquarters
  • Resolve manual errors, integration failures, and inconsistent data between headquarters and subsidiary
  • Plan production with a make-to-order scenario at subsidiary
  • Execute production specific to headquarters' needs
  • Notify headquarters electronically from the subsidiary about delivery and billing of ordered goods

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