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Distinguishing Integrational Tools

Objective

After completing this lesson, you will be able to identify the points in a specific procurement process where integration is necessary.

Need for Integration Related to Processes

Depending on the necessary functions for contract management, a business process scenario (scope item) that requires more than one solution for the procurement process might be necessary.

These processes then will need several systems – depending on the functionality to be used effectively.

Let’s have a look at a business process – scope item 4AZ to use a scenario in which we integrate SAP Ariba Contracts in conjunction with SAP S/4HANA Public or Private cloud.

Integration Points Between S/4HANA and SAP Ariba

Overview

Integrate SAP S/4HANA Cloud with SAP Ariba Contracts to connect value and quantity contracts. These are agreements for a company to order certain quantities of products during a specified period. In SAP Ariba Contracts, users can negotiate prices for goods and lean services to be procured, and they can sign a legally binding contract with a supplier. In source determination in SAP S/4HANA Cloud, contracts can then be assigned in the source list as fixed sources of supply. Pricing details are passed on from SAP Ariba Contracts to the operational system, so that operational purchasers can use these prices to buy goods or services as required. Target groups of Contract Management with SAP Ariba Contracts are purchasing managers as well as strategic buyers and operational purchasers.

Key Process Flow

Create contracts in SAP Ariba Contracts
Set up and review contract terms
Approve contracts
Send contracts to SAP S/4HANA Cloud
Automatically create operational purchase contracts
Automatically approve and release operational purchase contracts
Use operational purchase contracts as source of supply
Create purchase orders against operational purchase contracts

Looking at the business process, you can see that for a business scenario like this, you will need multiple systems.

SAP Ariba Contracts
SAP S/4HANA Public or Private Cloud

Depending on additional processes or functionalities there might be an additional system needed. For example, for exchanging the master data centrally you might add a SAP BTP and use the MDM ((Master Data Management) capabilities provided here.

To learn more about integration, please visit the following link https://help.sap.com/docs/btp#use_task-integration

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