Name: Understanding Source to Pay with SAP Business Suite – PET 2026
Uploaded: 2026-3-13
Duration: 1245 s
Description: SAP Business Suite Product Expert Training (PET) H1 2026 / Source to Pay / SAP Cloud ERP / SAP S/4HANA Cloud Public / Sourcing and ProcurementThis is an overview video for the "Source to Pay" end-to-end process.Ask your questions in our community using the PET_Enablement tag under “Question User Tags.”Here's the slide deck.Please note that captions have not been edited.

Share feedback

<p>We are aware of intermittent issues in accessing the learning content</p>

We are aware of intermittent issues in accessing the learning content

Personalize your learning.

Why create an SAP account?

Enhance your learning experience

SAP Learning

Choose your subscription

Manage your subscription

Activate your subscription

Live Sessions

Hands-on Practice

Certification

My Learning

Ready to start learning?

This browser is not supported

Show more

Ooops, something went wrong!

Oh no! Tell us how we can improve.

Great! We value your feedback

Thank you!

Browse by capability

Please wait

Please try again later

Sorry, we encountered an error

Try again or reset results to continue browsing

We didn't find what you're looking for

To continue, please log in

Your session has timed out

Validate your skills and learning by completing the certification exam and gain a highly recognised accreditation.

Book your certification exam

Complete the assessment to validate your SAP PartnerEdge competency qualifications.

Ready to take your assessment?

Learn about the key features and essentials in the latest release to help you prepare for the Stay Certified assessment.

Prepare for assessment

Learn new skills you need at your own pace with our bite-sized lessons.

Prepare for certification

In your My Learning account you can view your certification and learn how to take your Stay Certified assessment.

Ready to take your Stay Certified assessment?

Get tailored answers, tune into podcasts, and dive deeper with interactive study guides, mind maps, FAQs and more.

Upskill faster with AI-powered assistance

Upgrade to AI-powered learning

Enroll to Google NotebookLM to flexibly interact with SAP Learning content. It's free and activates instantly.

You are all set. Google NotebookLM is now active. You will have access to AI powered learning for all our eligible courses.

Enrollment successful!

Get started with AI-powered learning

Explore {title} at SAP Learning. Find out more!

Assessment

Course Completion

Knowledge Badge

Overview

Support Resource

Certification Exam

Theoretical Exam

Schedule

External Course

Practical Exercise

Practical Test

External Hands-On

External Resource

Learning Journey

Learning Journey Assessment

Lesson

Live Session

Practice System

Hands-on Practice for {title}

Quiz

Scenario Based Assessment

Course Assessment

Course

SAP Expert Lectures

Stay Certified

Subscription

System Based Assessment

Unit

Video

Video Playlist

Week

Want to remove this from your Learning List?

You have until July 30, 2026 to complete your Stay certified assessment.

Your SAP Certification extension is now active!

Your exclusive access to the SAP Learning Hub, Event Edition is ready. <link>Start learning now.</link>

Access activated

You can now register for free Live Sessions.

<div><div><div><div><div><div>SAP Business Suite Product Expert Training (PET) H1 2026 / Source to Pay / SAP Cloud ERP / SAP S/4HANA Cloud Public / Sourcing and Procurement<br><br>This is an overview video for the "Source to Pay" end-to-end process.<br><p>Ask your questions in our <a target="_blank" rel="nofollow noopener noreferrer" href="https://community.sap.com/t5/enterprise-resource-planning-q-a/qa-p/erp-questions">community</a> using the PET_Enablement tag under “Question User Tags.”</p><p>Here's the <a target="_blank" rel="nofollow noopener noreferrer" href="https://d.dam.sap.com/a/gq4VNQy/Understanding-source-to-pay-with-SAP-Business-Suite.pdf?rc=10&inline=true&doi=SAP1286385">slide deck</a>.</p><p></p>Please note that captions have not been edited. </div></div></div></div></div></div>

Understanding Source to Pay with SAP Business Suite – PET 2026

Hello, everyone, and welcome to this product expert training on source-to -pay in SAP Cloud ERP. I'm excited to have you here. Over the next 20 minutes, we're going to dive into one of the most critical business areas for our customers, that is procurement. Procurement isn't just about buying things anymore. It's about strategic sourcing, supplier collaboration, spend visibility, and compliance. And SAP Cloud ERP delivers all of this in one integrated platform. hybris what you'll walk away with at the end of this session. A solid understanding of the source-to -pay capabilities in SAP Cloud ERP. So let's jump right in and explore the solution. Quick introduction before we get started. My name is Ammar Kumar and I'm part of the Business Suite product marketing team here in Waldorf. I work closely with our product sales, partners, and consulting teams for SAP Cloud ERP, especially around procurement and source-to-pay scenarios. In this session, I'll walk you through on how we position these capabilities so that you can use them with your customers. So let's dive straight into the content. hybris what we will cover in this session. Firstly, I'll briefly position the SAP Business Suite from a procurement point of view and explain where procurement fits in the overall SAP Cloud ERP story. We'll touch on how this supports the different key procurement stakeholder requirements. Then we will move into an overview of the source-to-pay capabilities in SAP Cloud ERP. I'll walk you through the main process steps and capabilities, and we'll see major process highlights as we walk through each phase, which are sourcing, buying, and payments. On this slide, I would like you to think of procurement as a bridge that connects different parts of the business. It links your internal demand from plants, projects, and cost centers with external supplier market. Just like a well-constructed bridge ensures smooth and safe passage, a well-designed procurement process ensures materials and services arrive at time, at the right quality, and at the best possible cost. When that bridge is strong, business runs smoothly, risks are managed, and you create a real strategic value, not just cost savings. In this session, we'll look on how Cloud ERP helps customers build and operate that bridge in a consistent, scalable way across their entire source-to-pay processes. Procurement leaders today have very clear objectives, but the environment they operate in is more challenging than ever. They need to manage uncertainty and navigate constant transformation while still controlling spend, ensuring compliance and driving growth. At the same time, they're expected to increase productivity with digitalization and AI, turn classic category management savings into real business value, reduce risk, and improve sustainability, gain better visibility and collaboration across the business, and close a growing skill gap in their teams. This is where the SAP Business Suite helps. It's an integrated foundation for AI-powered procurement. At the core is the SAP Cloud ERP, where spend management sits natively alongside financial management and supply chain management, all running on a common data model. On top of it, customers can extend their spend management core with dedicated solutions like Ariba strategic sourcing or SAP's pent control tower. Business AI then orchestrates across these applications and data, turning insights into immediate meaningful actions in the flow of work. Together, these elements transform how a business senses what's happening, reasons with full context and acts with confidence. hybris SAP Business Suite in action. Every purchase order doesn't just process a transaction, it generates insights across systems. AI automatically spots supply negotiation opportunities, recommends cash flow and supply chain models, and ensures every purchase makes the next one smarter. This is where purchasing and spend management becomes a strategic value creation. This slide shows you how you can transform the end-to-end business across CPO, CFO, and CRO roles with the SAP Business Suite. But notice, it's a finance -led procurement for a reason. Procurement data is financial data. Your cost of goods sold starts with raw material purchases, cash flow depends on supply payment terms, and compliance requires complete audit rails from PO to payment. In other words, procurement just doesn't inform finance, it is also part of finance. hybris how the business suite packaging strategy creates the value procurement stakeholders are striving for. We start simple with SAP Finance Base, the core operational procurement with guided buying, purchase order automation, basic sourcing, and embedded compliance sits in this layer. It's perfect for companies digitalizing for the first time. We then have SAP Finance Premium that scales the strategic impact for procurement stakeholders with service procurement, travel and expense management, and most importantly, supplier collaboration. It's ideal for large companies with complex supply chains. Finally, we have specialized add-ons like strategic sourcing, direct materials, and spend control towers that let our customers customize exactly what they need in the area of source to pay. Now let's Agenda, the source to pay overview. Traditionally, procurement follows a clear cycle across three phases and SAP Cloud ERP drives seamless integration of procurement with finance, sales, and supply chain at every step. In phase one, we have the sourcing and contracting. This phase starts when somebody in the business identifies a need. We document the requirements, engage suppliers with RFI, RFX processes. We evaluate the proposals sent by suppliers. We negotiate contracts with suppliers and then get the right agreements in place. In phase two, we are buying and receiving the products from the suppliers. This covers purchase order creation, approvals, goods receipt and quality checks. All these processors are tightly integrated with inventory management and logistics for optimal stock levels, controls and on-time delivery. In the last phase, We handle invoices and pay the suppliers. This phase handles invoice matching, approvals, payments, and all these are fully integrated with financial accounting for real -time reporting and analytics. In the next slides, we'll drive into each of these phases. So let's drill into the first phase, that's the sourcing and contracting, that covers operational sourcing, direct materials, and strategic sourcing for indirect goods. We start with an RFQ or the request for quotation process. This documents the operational needs, what are needed for procurement. hybris what an RFQ looks like. Creating it is very simple and S/4HANA public cloud offers a guided process for it. You can alternatively create a sourcing project in which you can convert the different sourcing requests into a project and provide these to the suppliers on the business network for them to bid for those projects. A supplier can submit quotes directly against an RFQ or on a project. Once the suppliers have submitted their quotes, it's the time to evaluate the different bits and award one or more bits. so here is an award decision screen in Ariba sourcing that provides full transparency of the various bits and also helps you to choose the best bet finally once you have awarded it's time to create an operational purchasing contract or a purchase order if it is a one-time purchase this This screenshot shows you the entire document flow from the RFQ to the purchase contract creation. This end-to-end flow gives your sales and consulting teams everything you need to demo a sourcing and contracting capabilities to their customers. You can also leverage central procurement to create, review, and approve the contracts in a centralized way and then send it to the S/4HANA Cloud Public Edition or the SAP Cloud ERP. Now we will get into phase two. That's the buy and receive phase where procurement becomes the operational heartbeat of your supply chain. Every procurement journey starts here, whether you're buying pencils or turbines. Direct materials like raw materials. You use MRP, materials request planning, which can automatically create purchase requisitions and purchase orders that sync directly with the inventory management system. Suppliers can then submit advance ship notice that trigger the warehouse preparations automatically for indirect materials like office supplies sap cloud erp offers punch out catalogs like amazon business enforcing a spending policy for example ordering a laptop automatically selects the right ESG-compliant vendors. Service procurement handles contingent labor, consulting, or external workforce for maintenance, all with marketplace acceptance and service entry verification. The main flow, however, is the purchase request, purchase order, and invoice settlement flow for all these different periods. Now, let's see this end-to-end through various screenshots. In the first step, what we see here is the creation of the purchase requisition. This can be either created via guided buying for indirect materials or for direct materials through material requires planning, which can then create the purchase requisition. You later have an automated or an approval process triggered process to convert the different purchase requisitions into purchase orders with the right contract terms. Once you have the purchase order in S/4HANA Cloud or SAP Cloud ERP, this can be sent to the SAP Business Network for sharing it with the suppliers with the right purchase order number. There's also a possibility to predict the delivery dates for the purchase orders, which leverages machine learning algorithms. On the SAP business network, the supplier can create an order confirmation directly against the purchase order. The relevant purchase order details are flipped into the order confirmation, so the supplier spends minimal time on data entry. After confirming the purchase order, supplier creates an advance ship notice directly against the purchase order, here again with just a few clicks. Once you have the advance shipment notice in the SAP Cloud ERP, you can receive against this when the goods arrive at your warehouse doors. After receiving the shipment, you can log the goods receipt in S/4HANA cloud. At the end of this process, the supplier can create an invoice directly also in the business network against the purchase order. So this is the end-to -end document flow from purchase acquisition to the supply invoice. Now let's get into the third phase, the invoice and pay phase. Most organizations receive invoices in different formats. It could be paper-based, PDFs, or electronic data interface, EDI-based. With SAP Cloud ERP, you can handle all different types of invoices, inputs. You can also create smart invoices against contracts in SAP Cloud ERP. As mentioned previously, suppliers can communicate the invoices directly via the SAP business network. These are then checked and then processed in SAP Cloud ERP. We solve a few common pain points here. So, first one, the SAP Cloud ERP reduces account payable style by automatically highlighting invoice exceptions. With central invoice management, you can convert the paper-based invoices into system invoices automatically. and you can also reduce goods receipt invoice reconciliation clearing nightmares by automatically matching the errors. Let's look at the process highlights. What you see here is the complete invoice to pay flow overview. You can see that received invoices are automatically validated and blocked for payment which can be further investigated. it. This is a screenshot of the payment block details which are being investigated. Blocking reasons are clearly displayed here. For example, it's the price variance. Screenshot shows you an AI-driven intelligent invoice reconciliation. Purchase order with duplicate invoices can be displayed. From smart facts, you can see the reason for the discrepancy and a detailed comparison of the goods receipt and invoice reconciliation amounts and quantities. Subsequent to this, GL accounts will then process the item. This screenshot shows the journal entries all showing in the T-account view. We also have an Analytics overview app wherein you can monitor different accounts payable indicators and access relevant account payable apps. You can use the filters to limit the data behind the indicators to the information most relevant for you. On the business networks the supplier sees the real-time status of the payment. With this we close the source to pay loop with perfect perfections. So here are the key takeaways for Business Suite from a procurement point of view. SAP Cloud ERP plus the various spend management solutions act as one system for seamless source to pay across contract management, sourcing, and supplier collaboration. They offer AI-ready insights all providing embedded visibility and action-powered intelligence at every step. And finally, the flexible packaging model, starting with finance space, scaling with finance premium, and add -ons as your procurement needs grow, provide the required flexibility for our customers. This comprehensive approach transforms procurement, giving you everything you need to win from a procurement point of view. Before we close, here are the next steps to continue learning and enabling yourself. All links are available in the session description. If you have more questions or want to dive deeper into one of the processes, please reach out via the email on the screen. Thank you very much for your time for joining this session on source to pay in SAP Cloud ERP. We look forward to hearing from you. Have a great day.