Leverage SAP S/4HANA with SAP Ariba

Are you considering moving to SAP S/4HANA, or have you already done so? In that case it is good to know that you can leverage your Procurement processes with SAP Ariba.

How exactly depends on your business processes and your company ambitions, but SAP identified a couple of best practice hybrid S/4HANA-Ariba scenarios. We gladly advice you about the possibilities for your organisation.

These best practices optimize SAP S/4HANA operational procurement processes and related financial processes. This is done by leveraging capabilities that are not available in S/4HANA, such as Ariba Sourcing and the Ariba Network.

The best practices are the following:

 

Collaborative Sourcing (S/4HANA and Ariba Sourcing)

SAP Ariba Sourcing delivers extensive sourcing capabilities. Using the standard integration between Ariba and S/4HANA you can make these capabilities available to your end users. Ariba Sourcing enables you to set up and manage Sourcing events (RfI, RfP, auction), find new suppliers, and support negotiation processes. More information about Ariba Sourcing can be found here.

Purchase Order to Invoice Automation (S/4HANA and Ariba Network)

In this scenario, you connect SAP S/4HANA with the SAP Ariba Network in order to digitalize the purchase order to invoice processing with your suppliers. This standard integration speeds up your procurement processes, enforces compliance, reduces manual steps and lowers the cost of transactions with your suppliers.

This means that if you create a Purchase Order in SAP S/4HANA it will be shared with your suppliers via the SAP Ariba Network. There are various ways for the supplier to receive the PO, and ideally system-to-system. Invoices are also sent back via the SAP Ariba Network, and filtered automatically on mistakes by your own rules, and will land directly into your SAP S/4HANA ERP environment.

Additionally, order updates, goods receipt notices, invoice status updates, electronic order confirmation, advance shipping notices, timesheets and other document types are also communicated over the network between buyer and supplier.

Payment and Discount Management

SAP S/4HANA Finance can be integrated with SAP Ariba Payments and Discount Management to enable advanced options for Payments. One example would be to use the dynamic discounting options from SAP Ariba. This means that a buyer can send a proposal for early payment to the supplier. Effectively this results in a lower purchase price for the buyer and a better cash flow for the supplier due to an earlier payment. If both buyer and supplier agree on the new payments terms they are automatically updated in supplier invoices in SAP S/4HANA.

Please contact us using the contact form if you would like to learn more about what these Ariba integration scenarios could mean for your S/4HANA system.

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