Exploring System Integrational Aspects

Objective

After completing this lesson, you will be able to explain the necessity of system integration.

Need for Integration

To integrate SAP Ariba Contracts and SAP S/4HANA Public Cloud, the following systems are necessary:​

  • SAP Ariba Contracts: This is the contract management system that allows organizations to manage their contracts, agreements, and related processes.​
  • SAP S/4HANA Public Cloud: This is the cloud-based version of SAP's S/4HANA ERP system, which provides core business processes such as finance, procurement, inventory management, and sales.​
  • Integration Middleware: A middleware solution is necessary to facilitate the integration between SAP Ariba Contracts and SAP S/4HANA Public Cloud. Middleware helps in transferring data and messages between different systems and ensures data synchronization. All SAP S/4HANA to SAP Ariba integrations require using the SAP Integration Suite, Managed Gateway for Spend Management and SAP Business Network Solution. ​
  • API or Web Services: Both SAP Ariba and SAP S/4HANA provide APIs or web services that allow for communication and data exchange between the two systems, or third party systems. These APIs and web services can be used to build integrations and automate processes.​
  • Data Mapping and Transformation: As part of the integration, data mapping and transformation tools may be required to ensure that data from SAP Ariba Contracts is correctly transformed and mapped to the data structures of SAP S/4HANA Public Cloud.​
  • Security and Authentication: Integration between the two systems will require security measures such as authentication and authorization to ensure that only authorized users and systems can access and manipulate data.​
  • Monitoring and Logging: It's important to have a system in place for monitoring and logging the integration processes, to ensure that data is flowing correctly and to troubleshoot any issues that may arise.

Possible System Integration

SAP Ariba is a cloud-based solution, that can be connected by Managed Gateway to SAP S/4HANA. This connection is necessary to exchange the documents between two systems depending on business process. Additionally, via the connection to BTP the master data integration can take place..

A flowchart illustrating a process involving SAP products. The top block is labeled ‘SAP Ariba,’ followed by ‘Managed Gateway,’ ‘BTP,’ and ‘SAP S/4HANA,’ which leads to ‘HANA DB.’ Arrows indicate the workflow from SAP Ariba through Managed Gateway and BTP, finally reaching SAP S/4HANA and HANA DB

Need for Master Data Integration

While using two systems there will be requirements to consider that master data and organizational data will be necessary in both systems. Hence, there is a need for master data integration. ​

When integrating SAP Ariba Contracts and SAP S/4HANA Cloud, the following master data needs to be synchronized:​

  1. Vendor Master Data: This includes supplier information such as vendor name, address, contact information, payment terms, and other relevant details.​
  2. Material Master Data: This includes information about the materials or products that are being procured, such as material description, pricing, units of measure, and other relevant details.​
  3. Contract Master Data: This includes information about the contracts that have been created and managed in SAP Ariba Contracts, such as contract terms, conditions, validity dates, and other relevant details.​
  4. Financial Master Data: This includes information about financial accounts, cost centers, profit centers, and other financial-related data that is used for procurement and contract management.​
  5. Organizational Master Data: This includes information about the organizational structure, such as business units, departments, and other organizational entities that are relevant for procurement and contract management.​

By synchronizing these master data elements between SAP Ariba Contracts and SAP S/4HANA Cloud, organizations can ensure seamless and accurate procurement and contract management processes.

SAP Integration Suite, Managed Gateway for Spend Management and SAP Business Network Solution

The SAP Integration Suite, managed gateway for spend management and SAP Business Network simplifies and accelerates the integration between SAP S/4HANA, SAP Ariba applications and the SAP Business Network. It provides a simple and efficient Integration-as-a-Service (IaaS) solution for both buyers and suppliers. .​

As a buyer, you need to install an add-on for SAP S/4HANA system, which would allow your SAP system to communicate with SAP Business Network and SAP Ariba.

Note

All interactions with suppliers in the SAP Ariba landscape go through the SAP Business Network. Once onboarded by the buyer, suppliers will use their Business Network account to, undergo registrations and qualifications, respond to quotations and invoice customer purchase orders.

Note

All integration between S/4HANA to SAP Ariba application requires using the SAP Integration Suite, managed gateway for spend management and SAP Business Network.

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