A comprehensive knowledge portfolio demonstrating end-to-end expertise in SAP S/4HANA Public Cloud Sourcing & Procurement — covering business processes, system configuration, flexible workflows, and cross-module integration.
- About This Portfolio
- Certification
- Core Domains
- Business Process Flows
- System Configuration
- Flexible Workflows & Approval Processes
- Strategic Sourcing Deep Dive
- Contract Management
- Integration Knowledge
- SAP Fiori Apps Reference
- Key Terminology
- Portfolio Website
This repository showcases my functional and technical knowledge of SAP S/4HANA Public Cloud with a focus on the Sourcing and Procurement module. It is designed to demonstrate:
- Business Process Understanding — How procurement and sourcing cycles work end-to-end
- System Configuration Knowledge — How SAP is configured to support those processes
- Workflow Design Competency — How flexible approval workflows are set up and managed
- Integration Awareness — How procurement connects to Finance, Sales, and external networks
This portfolio is intended for recruiters, hiring managers, and SAP project teams looking for a certified Sourcing & Procurement professional.
| Certification | Status |
|---|---|
| SAP S/4HANA Public Cloud — Sourcing & Procurement | ✅ Certified |
| Focus Areas | MM , Sourcing, Flexible Workflow |
| Domain | Key Capabilities |
|---|---|
| 🎯 Strategic Sourcing | RFI, RFP, RFQ, Auctions, Award Decisions, Sourcing Projects |
| 📦 Operational Procurement | PR, PO, GR, Service Entry, Invoice Verification, SSP |
| 📋 Contract Management | Outline Agreements, Release Orders, Compliance Monitoring |
| ⚙️ System Configuration | Org Structures, Master Data, Document Types, Account Determination |
| 🔀 Flexible Workflows | Condition-based Routing, Multi-level Approvals, Escalation |
| 🔗 Integration & Analytics | MM–FI, MM–SD, Ariba Network, SAP Analytics Cloud |
The core operational procurement cycle from need identification through vendor payment.
Purchase Requisition (PR)
│
▼
PR Approval (Flexible Workflow)
│
▼
Source of Supply Determination
(Info Record / Source List / Contract)
│
▼
Purchase Order (PO)
│
▼
PO Approval (Flexible Workflow)
│
▼
Goods Receipt (GR) / Service Entry Sheet
│
▼
Invoice Verification (3-Way Match: PO + GR + Invoice)
│
▼
Invoice Approval (if blocked/parked)
│
▼
Payment Run (FI)
Key Process Points:
- The PR captures the business need: material, quantity, required delivery date, cost centre, and plant
- Source of supply is determined from source list, purchasing info record, or existing contract — in that priority order
- 3-way match ensures PO price, GR quantity, and invoice amount are within tolerance
- GR/IR clearing account reconciles goods received vs. invoiced amounts
Strategic sourcing lifecycle from spend identification through contract establishment.
Spend Analysis & Category Strategy
│
▼
Sourcing Project Creation
(Define scope, team, milestones)
│
▼
RFx Publication
(RFI → RFP → RFQ)
│
▼
Supplier Bid Collection
(via SAP Business Network / Supplier Portal)
│
▼
Bid Evaluation & Scoring
(Price + Technical + Compliance criteria)
│
▼
Negotiation Rounds / Auction
│
▼
Award Decision
(Per lot, per item, or split award)
│
▼
Contract Creation
(Auto-created or manually from award)
│
▼
Contract Release Orders / Call-offs
Detailed flow for managing competitive bidding events.
| Step | Action | Actor |
|---|---|---|
| 1 | Create RFx (RFI/RFP/RFQ) with line items, questionnaires, T&Cs | Buyer |
| 2 | Select and invite suppliers | Buyer |
| 3 | Publish event and notify suppliers | System |
| 4 | Q&A collaboration during open period | Buyer + Supplier |
| 5 | Supplier bid submission via portal | Supplier |
| 6 | Bid comparison (price, technical, compliance) | Buyer |
| 7 | Negotiation rounds (if needed) | Buyer + Supplier |
| 8 | Award decision + acceptance letters | Buyer |
| 9 | Contract / PO creation from award | System / Buyer |
RFx Types:
- RFI — Request for Information: Market research, no commitment
- RFP — Request for Proposal: Solution + pricing, qualitative evaluation
- RFQ — Request for Quotation: Pricing-focused, quantitative comparison
Three-way matching and exception handling in Logistics Invoice Verification.
Vendor Invoice Received
(Manual entry / EDI / Email / PDF)
│
▼
Reference PO in MIRO or Fiori App
│
▼
┌─────────────────────────────────┐
│ 3-Way Match Check │
│ PO Price vs Invoice Price │
│ PO Quantity vs GR Quantity │
│ PO Conditions vs Invoice │
└─────────────────────────────────┘
│
┌────┴────┐
│ │
Within Variance
Tolerance Detected
│ │
▼ ▼
Post Block / Park Invoice
Invoice ──────────────────────
→ Buyer Reviews
→ Vendor Queries
→ Approve or Reject
│
▼
Release & Post to FI
Tolerance Types:
- Price Variance — Invoice unit price vs PO price
- Quantity Variance — Invoiced qty vs GR qty
- Date Variance — Delivery date vs billing date
SAP S/4HANA Public Cloud uses a layered organizational hierarchy that controls where and how procurement happens.
CLIENT (SAP System)
└── COMPANY CODE (Legal Entity / Financial Books)
└── PLANT (Operational Unit — Production / Warehouse / Office)
├── STORAGE LOCATION (Physical bin/area within a plant)
└── PURCHASING ORGANIZATION (Negotiates contracts and pricing)
└── PURCHASING GROUP (Buyer team managing day-to-day POs)
| Object | Description | Example |
|---|---|---|
| Client | Entire SAP system | 100 |
| Company Code | Legal entity with own balance sheet | CA01 — Canada Ltd. |
| Plant | Operational unit for manufacturing/storage | 1000 — Toronto Plant |
| Storage Location | Physical stock area within plant | 0001 — Raw Materials |
| Purchasing Org | Contract & price negotiating entity | 1000 — Central Purch. |
| Purchasing Group | Individual buyer or buyer team | 001 — Indirect Goods |
The central object describing what is being procured. Key views:
| View | Key Fields |
|---|---|
| Basic Data | Material number, description, material group, base UoM |
| Purchasing | Purchasing group, planned delivery time, overdelivery tolerance |
| MRP | MRP type, reorder point, lot size, safety stock |
| Accounting | Valuation class, standard price / moving average price |
| Plant Data | Plant, storage location, batch management |
Supplier data managed as Business Partner (BP) with procurement-specific views:
- General Data — Name, address, tax number, bank details
- Purchasing Data — Currency, payment terms, incoterms, GR-based IV indicator
- Partner Functions — Ordering address, goods supplier, invoicing party
Links a specific material to a specific vendor with pricing and delivery conditions:
Material XYZ + Vendor ABC → Info Record
├── Net Price: $45.00/EA
├── Delivery Time: 5 days
├── Minimum Order Qty: 10
└── Validity: 01.01.2024 – 31.12.2024
Defines approved sources of supply for a material at a plant level. Can:
- Block unauthorized vendors
- Mark fixed sources (MRP will always use this vendor)
- Set validity periods
Splits procurement volume across multiple vendors by percentage:
Material: Steel Rods — Plant: 1000
├── Vendor A: 60% of requirements
├── Vendor B: 30% of requirements
└── Vendor C: 10% of requirements (backup)
| Doc Type | Description | Use Case |
|---|---|---|
NB |
Standard PO | Default PO for external procurement |
FO |
Framework Order | Blanket PO with open value / quantity |
UB |
Stock Transport Order | Inter-plant / inter-company stock movement |
ZNB |
Custom Standard PO | Client-specific enhancements |
| Category | Code | Usage |
|---|---|---|
| Cost Centre | K |
Operating expenses charged to a department |
| Asset | A |
Capital expenditure for fixed assets |
| Project (WBS) | P |
Project-based procurement |
| Sales Order | C |
Customer-specific procurement (MTO) |
| Unknown | U |
Used when assignment not yet known |
| Category | Description |
|---|---|
| Standard | Physical goods with GR requirement |
| Consignment | Goods owned by vendor until consumption |
| Subcontracting | Vendor processes your material, returns finished goods |
| Limit / Blanket | Service with overall value limit, no fixed qty |
| Third Party | Vendor ships directly to end customer |
SAP S/4HANA Public Cloud uses Flexible Workflow (replacing classical release strategies) to route procurement documents for approval based on configurable business rules.
Document Created / Changed
│
▼
Workflow Rule Engine
(Evaluates conditions)
│
┌──────┴──────────────────────┐
│ │
No Approval Needed Approval Required
│ │
Auto-Approved Approval Task sent
to Approver Inbox
│
┌───────┴───────┐
│ │
Approved Rejected
│ │
Document Returned to
Proceeds Requester
Purchase Order Approval Rules:
| Rule | Condition | Approver |
|---|---|---|
| 1 | Net Value < $5,000 | Auto-approve |
| 2 | $5,000 – $25,000 | Line Manager |
| 3 | $25,000 – $100,000 | Manager + Department Head |
| 4 | $100,000 – $500,000 | Manager + Head + VP Procurement |
| 5 | > $500,000 | Full chain + CFO |
| 6 | New Vendor (any amount) | Compliance Officer + Manager |
| 7 | CapEx (Account Assignment A) | Finance Controller + Manager |
| Feature | Description |
|---|---|
| Multi-Step | Chain multiple approvers in sequence or parallel |
| Condition-Based | Route based on value, org unit, category, vendor type |
| Escalation | Auto-escalate to next level if not acted upon within deadline |
| Delegation | Approver delegates to substitute during absence |
| Ad-Hoc Approver | Add extra approver on the fly without changing base rules |
| Mobile Approval | Approve/reject via SAP Fiori Launchpad on any device |
| Reminder Notifications | Automated email reminders for pending approvals |
| Audit Trail | Full approval history logged on the document |
- ✅ Purchase Requisition (PR)
- ✅ Purchase Order (PO)
- ✅ Supplier Invoice
- ✅ Contracts / Outline Agreements
- ✅ Sourcing Events (RFx)
- ✅ Goods Receipt (for high-value / sensitive items)
A Sourcing Project is the container for all sourcing activities:
- Define project type (New sourcing, Re-sourcing, Spot buy)
- Assign team members with roles (Lead buyer, approver, observer)
- Set milestones and deadlines
- Create RFx events within the project
- Track project status through to contract award
| Auction Type | Description |
|---|---|
| English (Forward) | Price increases — used for selling |
| Dutch (Reverse) | Price decreases — vendors compete to offer lowest price |
| Japanese | All-or-nothing rounds, participants drop out |
| Ranked | Suppliers see their rank, not competitor prices |
In procurement, Reverse Auctions (Dutch format) are most common — suppliers compete by lowering prices in real time.
After bid collection, buyers score suppliers using weighted criteria:
Total Score = Σ (Criterion Weight × Supplier Score)
Example:
├── Price: 40% weight × 85 points = 34.0
├── Quality: 25% weight × 90 points = 22.5
├── Delivery: 20% weight × 78 points = 15.6
├── Sustainability: 10% weight × 70 points = 7.0
└── Innovation: 5% weight × 65 points = 3.25
Total Score: 82.35 / 100
| Type | Transaction | Description |
|---|---|---|
| Quantity Contract | MK |
Fixed total quantity to purchase from vendor |
| Value Contract | WK |
Fixed total spend commitment with vendor |
| Scheduling Agreement | LP / LPA |
Delivery schedule with planned dates and quantities |
Award Decision (from RFx)
│
▼
Contract Created
(Manually or auto-generated)
│
▼
Contract Approved
(Flexible Workflow)
│
▼
Contract Active
├── Release Orders issued (call-offs)
├── Compliance monitored (qty / value consumed)
└── Supplier performance tracked
│
▼
Contract Expiry Warning
(Alert X days before end date)
│
▼
Renew / Renegotiate / Close
- Validity period — Start and end date
- Target value / quantity — Total commitment
- Release documentation — Whether POs need to reference this contract
- Item conditions — Negotiated price scales and discounts
- Partner functions — Ordering address, invoicing party, goods supplier
| Procurement Event | Financial Impact |
|---|---|
| Goods Receipt (GR) | Dr. Inventory / Expense Account → Cr. GR/IR Clearing |
| Invoice Verification | Dr. GR/IR Clearing → Cr. Vendor Account (AP) |
| Payment | Dr. Vendor Account → Cr. Bank Account |
| Invoice Variance | Dr./Cr. Price Difference Account |
- Stock Transport Orders (STO) — Move stock between plants, triggers SD delivery
- Third-Party Orders — Customer sales order triggers vendor PO
- Intercompany Procurement — Cross-company code purchasing with automatic billing
- Suppliers access orders and submit invoices via the Ariba Network
- Catalog punchout for guided buying
- Invoice status visibility for supplier self-service
- Automatic invoice status sync between Ariba and SAP S/4HANA
| App ID | App Name | Function |
|---|---|---|
F0842 |
Manage Purchase Requisitions | Create, edit, approve PRs |
F1048 |
Manage Purchase Orders | Create, change, display POs |
F1062 |
Post Goods Receipt for PO | Record GR against PO |
F1068 |
Create Supplier Invoice | Enter vendor invoice (MIRO equivalent) |
F2142 |
Manage Supplier Invoices | Monitor, block, release invoices |
F2173 |
Display Purchasing Documents | View all procurement docs |
F3163 |
My Purchasing Document Worklist | Buyer task list and follow-ups |
F4868 |
Manage Supplier Contracts | Create and monitor contracts |
| — | Sourcing and Contracting | Full sourcing workspace (RFx, auctions) |
| — | Approve Purchase Orders | Mobile-ready approval inbox |
| — | Monitor Purchase Order Items | KPI-based procurement monitoring |
| — | Procurement Overview Page | Role-based analytical cockpit |
| Term | Definition |
|---|---|
| PR | Purchase Requisition — internal request to buy |
| PO | Purchase Order — legal document sent to vendor |
| GR | Goods Receipt — confirmation goods were received |
| GR/IR | Goods Receipt / Invoice Receipt clearing account |
| MIRO | SAP transaction for Logistics Invoice Verification |
| RFx | Generic term for RFI, RFP, and RFQ events |
| Info Record | Vendor-material combination with price and delivery data |
| Source List | Approved vendor list for a material/plant |
| Outline Agreement | Umbrella purchasing agreement (contract or scheduling agreement) |
| Release Order | Call-off order issued against a contract |
| 3-Way Match | Verification of PO, GR, and Invoice alignment |
| Flexible Workflow | SAP's rule-based approval routing engine |
| Business Partner (BP) | Unified master data record for vendors, customers |
| MRP | Material Requirements Planning — auto-generates PRs |
| Account Assignment | Determines cost object charged (cost centre, asset, WBS) |
| Valuation Class | Links material to G/L accounts for automatic posting |
| Incoterms | International delivery terms (EXW, DDP, FOB, CIF, etc.) |
This repository includes a full interactive portfolio website (index.html) that visually showcases all the knowledge areas above, including:
- ✅ Animated domain cards for each expertise area
- ✅ Interactive tabbed process flow diagrams (P2P, S2C, RFx, Invoice)
- ✅ Configuration reference tables (Org structure, Master Data, Fiori Apps)
- ✅ Visual flexible workflow approval diagram
- ✅ Skills inventory with proficiency indicators
To view: Open index.html in any web browser — no server or build step required.
Portfolio created to showcase SAP S/4HANA Public Cloud Sourcing & Procurement certification knowledge.