All About SAP S/4 HANA | SAP S/4 HANA Training Course

SAP has stated that once they have delivered both SAP Finance and SAP Simple Logistics, they would have covered most of the functions of an ERP system.  In other words, they would have essentially simplified processes at the core.  

What is the business value of SAP S/4 HANA for customers? What’s the payback period? And who is likely to benefit most?

Written natively for the SAP HANA platform, SAP S/4 HANA is an entirely new generation of SAP Business Suite that is characterized by simplifications, massively increased efficiency, and compelling features such as planning and simulation options in many conventional transactions.SAP S/4 HANA signals a move away from the transaction system that merely records data toward giving end users active decision support in real time that is based on data from both internal and external sources.We are currently in the process of developing a business value calculator for SAP S/4 HANA that will drill down to quantify the benefits at the level of individual solutions. In SAP Business Suite on SAP HANA, customers already have the option of calculating business cases enabled by TCO savings and optimizations. These calculations are equally valid for SAP S/4 HANA. But the simplifications created by SAP S/4 HANA bring other benefits too – which the business value calculator will take into account – such as the use of new user interfaces, reduced data volume, greater flexibility, and higher throughput. Finance departments, for example, will profit from more efficient shared services and accelerated financial closing.

How long does an SAP S/4 HANA implementation take?

It’s obviously very hard to generalize, but we do have reliable empirical values to go on: 75% of customers that have migrated their existing SAP Business Suite on HANA as the first major step in moving to SAP S/4 HANA have done so within six months. That’s a very good result for a migration to a new platform.Some large enterprises are opting for greenfield projects – seeing the technological innovations as an opportunity to completely rebuild their ERP landscapes from the ground up. Brownfield projects are also an option: In this approach, the customer leaves its IT landscape intact but adopts the new technology to enrich and enhance it. Greenfield and brownfield projects naturally take longer – sometimes even several years. And migrating to SAP S/4 HANA is only one part of such a project.

Does SAP offer programs that simplify the move to SAP S/4 HANA?

Yes, and we attach great importance to providing comprehensive support for our customers in this respect. Specifically, we offer SAP Rapid Deployment solutions that enable a fast migration to the SAP HANA platform and thus also to SAP Simple Finance. These pre-defined implementation packages are delivered by SAP or by our partners and even enable fixed-price implementations in some cases.

How much experience do potential integration partners have?

Over 60% of implementations are performed by partners and integration partners, not by SAP. We operate roll out programs to inform and educate our partners about all of our new solutions. And our Global Partner Organization (GPO) holds regular “enablement sessions” at which it brings partners up to speed on the new technologies and explains to them in detail how SAP S/4HANA will impact their work.

Which skillets are required?

In most cases, it’s the implementation partner that handles the project, so customers don’t really need to get bogged down in the details.

Is it possible to migrate company-specific customization?

In principle, yes. When we developed our solutions, we took particular care to ensure that they would be “backwards-compatible.” In other words, the customer can keep customization and continue to use them after the migration. However, this does not always apply to modifications. Take the analogy of a house and imagine that the customer has not only added a balcony but has also modified the building too. In this case, the function of the house may be affected, whereas the “balconies” will be fine.

What are the requirements for moving to SAP S/4 HANA?

The initial path is to move to SAP Business Suite on SAP HANA and then to implement packages that contain the simplifications. Currently, these come in the form of SAP Simple Finance, though SAP Simple Logistics.

What is a “system-driven” implementation?

We want to radically simplify the implementation of SAP S/4 HANA so that customers enjoy rapid success and payback. This is particularly relevant in the cloud, of course, where customers expect to deploy a reconfigured system. SAP therefore provides “guided configuration.” This means that customers no longer define parameters in tables in the way that they are used to doing in ERP systems. Customizing is therefore no longer a manual task. Instead, all customers will need to do in the future is answer a series of questions: The system will then configure itself.

SAP Fiori is mentioned a great deal, but SAP Screen Personas doesn’t feature in the context of SAP S/4 HANA. Why is that?

SAP Screen Personas doesn’t play a dominant role because, in the context of SAP S/4 HANA, we regard it as a transitional technology that allows us to make the SAP GUI look like SAP Fiori in terms of its layout and haptic qualities. Users don’t necessarily see the difference.Our strategy direction is based on SAP Fiori because this technology allows us not only to change the layout but also to switch from a functional or transaction operational model to a completely role-oriented one. Bringing all of our transactions over to the new technology is obviously a major undertaking for us. It also means effort for the customer in training users in the new technology, although we anticipate that the training effort for SAP Fiori will be low. That’s why we’re creating a transitional phase.

Which SAP S/4 HANA applications are available right now? Is it just SAP Simple Finance? What’s the difference between the cloud and on-premise offerings?

If I implement SAP S/4 HANA on premise, I’m technically implementing SAP Business Suite on SAP HANA and deploying the “exchange innovation” for SAP Simple Finance. But that’s just the first step.SAP will continue to deliver additional exchange innovations that replace the existing SAP Business Suite code with the new SAP S/4 HANA code. At the moment, the customer receives the code for the new accounting solution. We plan to ship the code for SAP Simple Logistics at the end of the year and further new code in subsequent years. By the time we reach the end of this journey, we will have incrementally switched the customer’s entire system without subjecting it to the upheaval of a big-bang migration.

What does SAP S/4 HANA cost? Is there a charge for customers who already deploy SAP Business Suite?

SAP S/4 HANA is a new product so it is not free of charge for SAP Business Suite users. However, we are running a license promotion until the end of the third quarter of this year. Customers who have licensed the SAP HANA platform for SAP Business Suite – that’s currently more than 2,000 – are eligible to upgrade to SAP S/4 HANA licenses at no charge.

What’s the road map? Which releases will appear next?

SAP S/4 HANA is available today for on-premise customers. The current offering, SAP Simple Finance, gives customer a simplified finance system. The next major group of simplifications we’re addressing and planning to deliver is in logistics. These include simpler inventory management and valuation, along with simplifications in supply chain management, notably demand planning. Logistics involves some of the most complicated ERP processes of all, but this is the area in which customer demand is strongest.

Learn more about SAP S/4 HANA by certified SAP professionals from Learn IT Training which is the global online training platform which trains students from beginner to the advanced level SAP training. We are the team of certified SAP professionals offering training in many countries like India, USA, UK, Canada, Australia, Newzealand, Saudi Arabia.

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SAP S/4 HANA: Benefits and Challenges of a Central Finance Adoption Approach | SAP S/4 HANA Online Course

There are many benefits to SAP S/4 HANA for existing SAP customers. However there is the inevitable challenge of migrating and upgrading existing systems. Especially in a complex legacy landscape this can be a risky and costly Endeavor. In this post I will explore the benefits and challenges of using “Central Finance” as a stepping stone to an S/4 HANA implementation.S/4 HANA in brief

SAP is in the process of releasing components of S/4 HANA for customers. Simple Finance is the first functional component with Simple Logistics expected in the near future. The vision behind this new tool is that SAP has re-engineered their business application suite to take full advantage of the performance benefits of the HANA database. This enables a tool that works more truly in “real time” and integrates operational reporting with business process. The main architectural difference is a radical simplification of the data base structures removing aggregates. This reduces the database footprint; but more importantly allows “HANA Live” reports to function in real-time.

SAP Central Finance

One element of the SAP S/4 HANA story that has been exciting interest amongst clients is “Central Finance” (previously known as central journal).Central Finance is not a new product from SAP; nor does it really provide functionality that was previously unavailable, but it can be seen as an approach to adopting SAP S/4 HANA. The approach, instead of forcing customers to migrate to the SAP HANA Database and the S/4 application, allows finance documents to be replicated into a new Central Finance instance that running on S/4 HANA. This is particularly relevant in an organization where there are multiple older SAP ERP instances or other Finance applications outside of SAP.The story goes like this: “Central Finance” exploits SAP HANA’s real-time capabilities to replicate financial documents into the central instance as they are posted, giving a real time organization-wide finance view. There is minimal impact to the underlying source systems which are Central processing (e.g. cross system allocations and inter company reconciliation) can be immediately moved to the central instance achieving immediate benefits, but further functionality can then be migrated piece by piece into the central instance: credit control, and outgoing payments would be good early candidates, because of the potential financial benefits of consolidating these activities. Eventually all finance functionality can be moved into the central instance and the source financial systems turned off. This presents a lower risk approach to migrating to S/4 HANA at least from older source platforms.

Central Finance Approach – Challenges

From a business perspective there is a challenge around how to justify the additional cost associated with a central finance approach. The additional cost is associated with the fact that there will be two systems running to reflect financial transactions rather than a single one. This means that for a period of time it is necessary to maintain and support both legacy and new central finance system.The central finance system will be running on SAP HANA, so the license uplift will already have been incurred before existing systems and hardware are decommissioned. This cost needs to be weighed against the benefits of the transparency of having financials in a single location and the risk mitigation associated with the gradual upgrade to S/4 HANA functionality. The business case therefore has to be carefully weighed.Many of the IT benefits of moving to SAP S/4 HANA are associated with the smaller footprint that comes from removing aggregate tables. For this reason, the business case associated with a central finance migration should rely more heavily on business benefits rather than cost reductions in IT.

Technical Complexity

As well as continued maintenance on the central finance system and the source systems; a number of other components are necessary; including the SLT server which is best hosted on a separate instance, as well as associated updates to the source systems. These include installing data replication components at the technical level, but also a number of functional level upgrades. Whilst SAP argues that the impact on source systems is “minimal”, a number of SAP notes need to be imported into the source systems in order to allow documents to be replicated from source to target. If all source systems are on recent releases and support packs are up to date then this shouldn’t be a challenge, but if not there are can be a large number of dependencies. This can quickly lead to a situation where source systems will need to be comprehensively regression tested adding cost and risk to the project.

Required Capabilities

There is a need for a capability to be built in the SLT server. This is relatively straightforward and should be absorbed into the existing BASIS provider, but further competence in Master Data Governance (MDG) must also be built, both technical and from a business perspective. This is a great opportunity to address a common weakness in master data in the organization, but it has to be seen as part programme. If the mappings in MDG are tacked on as an afterthought there is a risk that benefits will not be achieved.

Architectural Concern on the Central Finance Approach

It moves away from the ideal of a single source of truth. Financial statements could in theory be drawn up in one of two locations either in the source systems or in the central finance system. If financial statements are drawn up from the source systems potentially the outcome of allocations or reconciliations performed in the central system need to be passed back into the source systems. If statements are derived from the central systems, the system of record may have changed, and in this case integration to consolidation systems may also need to change.Central Finance represents an intriguing route to ERP system consolidation and migration to SAP S/4 HANA at low risk. It delivers benefits throughout the project, however the devil is in the detail and the following items should be clearly addressed

•  Business case clearly balancing the cost of working in multiple systems against th benefits.
• Budget for patching and regression testing source systems.
• Clear Master Data Governance Strategy and capability plan.
• Architectural and integration plan for the consolidated solution.  

The Central Finance route won’t be for everyone, but in cases where an over-complex SAP estate exists on a variety of source versions, it may prove to be the most effective mechanism to generate some of the benefits of SAP S/4 HANA at an early stage, while (eventually) simplifying the overall estate.Want to learn complete details and implementation of SAP S/4 HANA, then join Learn IT Training today. Learn IT Training trains you with live project and assists you throughout the project, from project initiation to operational and technical concept design to integrate and acceptance tests. We provide best online training classes in many technologies in accordance with Industry standards. Our trainings are throughout USA, UK, Australia, UAE, Canada, Saudi Arabia, Newzealand, India and Many other Countries.

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SAP S/4 HANA Cloud: Transforming the Next Generation of Cloud ERP | SAP S4 HANA E-Learning

SAP S/4 HANA – the next generation business suite for digital businesses

In a digital world, information can be measured and made available across the globe instantaneously. Sailing on the backwind of new technologies, this is a key enabler for redefining business processes. Fundamentally, it means that a digital business needs to deliver on the ubiquitous promise to truly serve a segment of one: The end consumer. The whole value chain becomes a highly flexible organism to be run in real time – it becomes a LIVE Business.Since the launch of SAP S/4 HANA two years ago, it has firmly established itself as the next generation business suite to support digital businesses. It has the ability to unite enterprise-wide processes into a synergistic digital core. At the core of the innovation with S/4 HANA is the revolutionary in-memory capabilities of SAP HANA that allows both transaction and analytical data to reside in one system, which in turn provides our customers with the ability to analyze, report, simulate and predict in real time, to make smarter and quicker business decisions. In addition, with SAP FIORI we offer a role based user experience that looks great and really delivers intelligence to the user in an intuitive.Clearly, this has resonated well with the market and S/4 HANA now boasts over 5400 customers, making it the fastest growing product SAP has launched.

SAP S/4 HANA Cloud – the next generation, intelligent ERP in the cloud

This brings me to SAP S/4 HANA Cloud, the Intelligent Cloud ERP offering from SAP and the announcement on Feb 9^th at the SAP Capital Markets Day. At this event customers, partners and SAP executives showcased the new S/4 HANA Cloud solution from the trusted global leader in ERP. S/4 HANA Cloud is our ERP cloud offering that benefits from the same game changing innovations we delivered with S/4 HANA, but now via a SaaS delivery model, all managed and delivered by SAP.  SAP S/4 HANA Cloud is the cloud ERP solutions best suited for organizations with more than 1,500 employees, and for subsidiaries and operational units of larger enterprises.

Why ERP Cloud and Why now?

Moving a company’s core to the Cloud enables a fast deployment and decreases time to value. Additionally, it fosters rapid innovation cycles and reduces TCO and TCI, matching a Fit to standard and enabling agility in consumption. The end to end experience is at the heart of it. But for customers and partners there are new rules of the game to adapt and digitally transform as well. Technology induced innovation to change the Corporate fundamentally goes along with business changing capabilities for each Line of Business. Enterprise customers expect SAP to re-define, renovate and innovate its core asset – ERP, and deliver it as a SaaS deployment model.We have seen for some time clear indicators that the market is shifting to consume ERP in the cloud and that this is set to grow rapidly in the coming years. There is a significant amount of evidence out there that points to the growth of the cloud, but for me there are a number of leading indicators from the analyst firms that show how fast things are moving. Most analyst firms predict up to 20% growth rates in the next 24 months for the Cloud ERP market. According to the analysts, Finance is leading the charge as the next LOB already shifting to a SaaS approach, especially for more service centric companies.We are confident that, using our heritage, knowledge and expertise built up as the ERP market leader over decades, and our leadership with S/4 HANA supporting our customers managing their digital transitions, we can support our customer’s journey to Cloud ERP.

What is different with S/4 HANA Cloud

It’s easy to imagine that a Cloud ERP solution is simply a watered down version of a full blown ERP on premise system, compromised in technology or ability in some way. With S/4 HANA Cloud, this is not the case. With end to end processes supporting finance, plan to product, and order to cash and procure to pay we offer enterprise-ready functionality for digital businesses.However, more importantly S/4 HANA Cloud shares the same in-memory architecture as S/4 HANA and so offers the same benefits.  With analytical and transactional data together in the same system, you have the performance to run a truly “live” business, run on the fly aggregations to slice and dice data to provide immediate insights based on real time data. This provides the trusted information it needs to make fast decisions across the business.S/4 HANA Cloud consists of a modular set of Editions that provide a flexible, extensible ERP platform that will scale up and down according to business needs. New capabilities and users can be added as you need them, quickly and easily.A key design principle that has driven the direction of S/4 HANA Cloud is the need for an easy to use, responsive and consistent consumer-grade ‘business user’ experience. 

Through SAP FIORI 2.0 and embedded analytics we have realized this requirement and helped to release the intelligence and data within the system to the user in a meaningful way that drives productivity and smarter decision-making regardless of device. Key innovations such as Enterprise search, Overview pages and the Fiori Launchpad help to navigate and push key information to the users, which in turn changes the way software is traditionally used and drive changes in the way business is done in a digital world. Differentiating is also the inclusion of an digital assistant, leveraging machine learning capabilities to make decisions more intuitively and based on all available internal and external data – learning as you go. More about this later.SAP S/4 HANA Cloud has been developed to co-exist in a heterogeneous system landscape with native integrations to other SAP solutions and open interfaces for further integrations and extensions via the SAP Cloud Platform to anything out there.And one more – With a shared data and semantic model with S/4 HANA on premise and S/4HANA Cloud, we are offering a naturally  best in class two-tier ERP landscape (2Tier). This is a huge advantage and reduction of error prone and heavy effort consolidations and integrations between headquarters and subsidiaries, during set-up and even more important during the lifecycle of your operations and the changes you want to apply.

Finally, S/4 HANA Cloud uses SAP Activate proven best practices content and methodologies to enable customers to deploy and go live with an ERP cloud solution.Want to learn more about SAP S/4 HANA then join with world’s leading online training platform IT Training. Learn IT Training is a trusted and preferred online training partner for corporate and professionals, a premium online classes provider which imparts online training in different IT specializations like all SAP training courses, Android ,Oracle training and other technologies. We are the epitomize leader in different IT training online courses across India, USA, Canada, Australia, UAE, UK. We maintain the best online training team with industry standards.

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Learn SAP S/4 HANA – Best Practices Delivered With SAP Activate

It can be known that SAP Best Practices for SAP S/4 HANA provide ready-to-run digitized analytical and operational business processes that cover the fundamental business processes of an enterprise, delivered through SAP Activate. SAP Activate Best Practices also cover migration to SAP S/4 HANA and integration with other cloud solutions.

SAP Best Practices for SAP S/4 HANA

With SAP Best Practices for the on-premise version of SAP S/4 HANA, you have full flexibility over how quickly you adopt innovation and how you make changes to your processes.No matter if you want to streamline your procure to pay processes, optimize your order to cash flow or take advantage of simple finance, we provide a pre-configuration for many of your business needs.

Let’s take the example of a new financial implementation – you can leverage parallel accounting to address multi-national reporting requirements, use a standard chart of accounts or best practice for closing books, remaining IFRS compliant, tracking debits and credits, calculating taxes – all reconfigured in your solution.These business processes are easily integrated with other cloud solutions, such as Success Factors Employee Central or the Ariba Network. SAP Best Practices also guide customers through the migration process to SAP S/4 HANA, whether they migrate existing SAP ERP solutions from a non-SAP database or legacy systems. Also included are details on sensibility, for example how to extend SAP FIORI to your needs.

SAP Best Practices for SAP S/4 HANA, cloud edition allow you to benefit from the latest innovations by automatically getting quarterly updates provisioned in your solution. Currently, SAP offers best practices for all deployment options (listed below) of SAP S/4 HANA, cloud edition

•          SAP S/4 HANA, cloud enterprise edition
•          SAP S/4 HANA, cloud project services edition
•          SAP S/4 HANA, cloud marketing edition

For example, the Project Services business scenario shows you how to manage the complete end-to-end process of selling project-based services to customers. The SAP Best Practices for this scenario outline how to integrate sales orders with project management, allowing you to create invoices for time and expenses recorded against a customer project. The key process steps covered include managing customer projects during the planning and execution phase, maintaining work package staffing, procuring external services, recording times, maintaining customer project billing, creating customer invoices, and analyzing customer projects. This scenario is just one of many included in detail as part of SAP Activate Best Practices.Just like with the on-premise version of SAP S/4 HANA, the SAP Best Practices included with SAP Activate, walk you through how to configure and integrate SAP S/4 HANA, cloud edition with your other systems and cloud services.

SAP Best Practices baseline scope for SAP S/4 HANA

In summary, whether you’re doing a new implementation, a system conversion or landscape transformation, you never start from a blank slate. Instead, SAP Activate gives you ready-to-run business processes and step-by-step directions on how to move from your current landscape to your goal.

Way to SAP S/4 HANA with SAP Activate

•          SAP Best Practices: pre-configured content
•         Safe migration and integration
•         Guided Configuration: assisted implementation and test automation
•          Agile methodology to run your project

Discover a safe path to SAP S/4 HANA with SAP Activate supporting new implementation, system conversion, and landscape transformation scenarios. Use SAP Best Practices for pre-configured content, migration and integration with cloud solutions. Get access to Guided Configuration, trials, automated testing, and agile methodology.

SAP Best Practices – Way to the Cloud

•          Innovate with Rapid Deployment Solutions
•          Inboard to the cloud quickly and securely
•          Create a delightful user experience
•          Migration and integration made simple

Discover a simpler path to SAP’s innovations for the cloud. Explore how to inboard to the cloud quickly and securely with migration and integration made simple, and how to create delightful user experiences using SAP Best Practices and Rapid Deployment Solutions with proven content, tools, and methodology.Want to learn more about SAP S/4 HANA and its offerings, Learn IT Training is the best choice for SAP online training providing with best teaching methodologies in many technologies in accordance with Industry standards. Our training are throughout USA, UK, Australia, UAE, Canada, Saudi Arabia, Zealand, India and Many other Countries

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SAP S/4 HANA Introduction | S/4 HANA Live Demo Class By Experts

             

The launch of SAP S4 HANA is historic moment for SAP. With SAP S4 HANA training it made possible to run simple in a digital, networked yet complex world. To meet this vision, Learn IT Training redefining how enterprise software creates business value with massive simplifications and innovations delivered in the next generation business suite. The new suite is called ‘SAP Business Suite 4 SAP HANA’ or ‘SAP S/4 HANA’. This is a new product and is SAP’s biggest innovation since SAP R/3.SAP S/4 HANA is the next-generation business suite designed to Run Simple in a digital economy. Built for the revolutionary SAP S/4 HANA in-memory computing platform, it fundamentally redefines how enterprise software creates value across industries with instant insight. SAP S/4 HANA also personalizes the user experience on any device and naively connects to Big Data, the Internet of Things, and business and social networks - all in real time. 

SAP S/4 HANA is an entirely new generation of SAP Business Suite that is characterized by simplifications, massively increased efficiency, and compelling features such as planning and simulation options in many conventional transactions.The initial path is to move to SAP Business Suite on SAP S/4 HANA and then to implement packages that contain the simplifications. Currently, these come in the form of SAP Simple Finance, though SAP Simple Logistics concepts is slated for release soon and further simplifications will follow in 2015. (Learn SAP Simple Logistics training by Learn IT Training).With SAP S/4 HANA, SAP is providing the next generation of business applications to help enterprises run simple in the digital economy, leaving customers the choice of deployment: on-premise or in the cloud. SAP S/4 HANA is fully built in-memory, provides real-time processes and analysis, dynamic planning and offers a personalized user experience with SAP Fiori. SAP S/4 HANA is also already connected to business and social networks and prepared for Big Data and the Internet of Things.

Learn IT Training is the global online training platform which trains students from beginner to the advanced level SAP training. We are the team of certified SAP professionals offering training in many countries like India, USA, UK, Canada, Australia, Newzealand, Saudi Arabia.

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Advanced ATP in SAP S/4 HANA | ATP to Advanced ATP | S/4 HANA Online Course

Digitization is tearing down the perceived walls of the supply chain's compartmentalized steps through marketing, product development, manufacturing, distribution, and finally into the hands of the customer. The supply chain is becoming a completely integrated ecosystem to all the stakeholders involved - from the suppliers of raw materials, components, and parts, to the transporters of those supplies and finished goods, and finally to the customers demanding fulfillment S/4 HANA (SAP S/4 HANA training by experts from Learn IT Training) enables the fruition of this ecosystem by incorporating the following key innovations: advanced availability to promise, integrated quality management, embedded extended warehouse management, efficient procurement, etc. The result will enable companies to react to disruptions in the supply chain, and even anticipate them by fully modeling the network, creating “what-if” scenarios, and adjusting the supply chain in real time as conditions change.

Available-to-promise to advanced available-to-promise
In the traditional SAP ECC system, conventional Available-to-Promise (ATP) is the order fulfillment process that is designed to provide a commitment to customer-requested order quantities and dates based on availability of products. The availability check ensures that there are enough components available for planned or production orders in production planning and production control. It is an important function in the supply chain and is easy to use and implement, although it does not always offer customers the depth of functionality they were looking for. Further functionality is obtained by implementing SAP Advanced Planning and Optimization (SAP APO training), but entails much more complexity in use and implementation.
The increased complexity of models in today’s digital world, where more complex mechanisms are necessary for varied production, variable demand and multiple stock localization, led to the fact that SAP conventional ATP has become insufficient. To cope with all these changes and to adhere to the new S/4 HANA value levers (agility, efficiency and effectiveness) SAP has developed a ATP (advanced Available-to-Promise) which addresses the challenge of working in a dynamic and moving environment allowing organizations to thrive (instead of getting caught like a deer in headlights) as a result of this new dynamic and moving business environment. 

 How it effects back order processing
One functionality that was revamped with S/4HANA regarding a ATP was backorder processing. This functionality is used to check material availability when the demand or supply situation in your sales order fulfillment process has changed and you want to check if previously calculated confirmations for sales orders are still realistic. For example: You receive an order from a very strategic customer, "Customer A" for material "Z" but the entire quantity of "Z" is committed to another customer, "Customer B" via an earlier sales order(Learn how sales order process is done from SAP SD training)  Customer B is usually late with payments. Through back order processing the commitments could be changed and stock due shifted from customer "B" to "A"
Enterprises today have a wide portfolio of customers that range from the most strategic and valuable to the least profitable and flaky. When demand exceeds supply, in seasonal products or a very successful product launch, for example, enterprises must priorities their sales orders to ensure that strategic customers always get served. Using conventional ATP in SAP ECC, enterprises needed to execute ATP multiple times and sometimes rely on secondary systems.
SAP S/4 HANA 1610 introduces a new back order processing confirmation strategy that classifies customers in five categories:
WIN
•Confirm as requested
•Shall be fully confirmed in time (the most important customer orders) 
GAIN
•Improve if possible
•Shall keep the confirmations and should gain if possible (orders that cannot lose the  earlier confirmations)
REDISTRIBUTE
•Redistribute and Reconfirm
•Might gain, might lose (orders that can lose confirmations)
FILL
•Delete confirmation, if required
•Shall not gain anything, should keep confirmation, but may also lose (non-priority customer orders)
LOSE
•Delete confirmation
•hall lose all confirmations (orders under credit block)
A rush order is the last-minute customer order after the production plan of a company has been concluded. For these rush orders, appropriate and reasonable response is imperative, as it could put strain on customer relationship and services. A good and positive response could help the company to build and retain its market share in today’s highly competitive markets. The prioritized fulfillment sequence of rush customer demands can be reached with the new a ATP based on the fulfillment ability and the prioritized new confirmation concept. The example below illustrates a rush order that was created for a very strategic customer where the stock of the material orders has already been committed to sales orders of other customers of a lower confirmation strategy hierarchy, leaving no stock available for the rush order. After executing the backorder processing run, stock previously committed to sales orders with customers classified as REDISTRIBUTE, FILL and LOSE has shifted to the rush order containing a customer classified as WIN. 
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