Defining Scope and Localizations

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Define the scope and country/region localizations

Scope and Localizations

Select Sector, Country/Region(s), and Languages

When the partner lead configuration expert opens the scope activity, you are prompted to select the customer's sector (private or public sector), then 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.

Note

We recommend activating no more than 5 countries at a time for system performance purposes.

Localization as a Self-Service in SAP S/4HANA Cloud

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.

SAP-Delivered 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 NavigatorSolution ScenarioSAP 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.

Customer Local Versions

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.
    Note
    The Configuration Localization Toolkit is currently only available for early adopters. Learn more about the program here.

Additional Extensibility within SAP S/4HANA Cloud

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

Note

Configuration Localization Toolkit in SAP Central Business Configuration (Early Adopters)

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. Currently, only Germany can be selected as the source country/region. The full list of target countries are documented in SAP Note 3107866.

Note

You cannot change the source/target combination after confirming your selections.

Watch a video

Watch this video 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.

Considerations for Localized Countries/Regions

  • 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?
Note

If you have a specific localization request, submit it in the Customer Influence Portal here.

Common Localization Examples

Choose scope bundle

After selecting the Sector, Country/Region(s), and Languages, the partner lead configuration expert selects 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 to view a list of all the selected processes and compare with the chosen processes in SAP Cloud ALM.

Select group ledger scenario(s) and integration scenarios

Next, select the group ledger scenario(s). If there will be multiple countries/regions, it's possible to select both the Accounting and Financial Close - Group Ledger IFRS (International Financial Reporting Standard) (1GA) and the Accounting and Financial Close - Group Ledger US GAAP (United States Generally Acceptable Accounting Procedures) (2VA) and choose for which countries/regions the different ledgers are used.

Note

After the scoping phase is complete in SAP Central Business Configuration (meaning content has been activated in the target system), ledgers cannot be added or removed.

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.

Try it yourself!

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

Create a Case in SAP for Me for other integration scenarios

Not all integration scenarios can be activated in SAP Central Business Configuration. For scenarios not available in the scoping, create a case in SAP for MeServices and Support dashboard to request activation.

Select the deployment target

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

Note

You can rename assigned deployment targets or change the assignment by removing an assigned deployment target and adding a different deployment target as long as you haven't completed the Confirm Scoping is Completed milestone.

Try it yourself!

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

Confirm Scoping Milestone

Now, the lead configuration expert can confirm the scoping milestone and wait for the business processes to be activated in the development system tenant. This may take some time, depending on how many country/region(s) were selected.

Try it yourself!

Learn how to confirm the scoping is completed milestone in this tutorial:

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