The same purchase requisition gets converted to purchase order automatically in the backend systems.Ĭentral Purchase Contracts: It is a global agreement between parent organization and its supplier. Let us see the overview of the different scenarios,Ĭentral Requisitioning: The valid purchase requisitions get replicated to the relevant connected systems, SAP ERP or SAP S/4HANA. IMG>Materials management>Purchasing>Central Procurement-Settings in Hub System>Activate SAP S/4HANA Procurement Hub and Scenarios Procurement hub activation is the prerequisite for hub scenario activation. Note: These settings cannot be changed after activation scenario setup.

It enables SAP S/4HANA as a procurement hub system as well activate hub scenarios.

The following customization settings are relevant to S/4HANA on-premise edition starting 1709.Īctivate SAP S/4HANA Procurement Hub and Scenarios: Minimum system requirement for the connected SAP ERP is 6.0 EHP 6.0. With S/4HANA central procurement, S/4HANA on-premise system acts as a central hub, connect to the regional SAP ERP, S/4HANA cloud as well as S/4HANA on-premise. The following diagram shows the distribution model between SRM and S/4HANA central procurement. Customers with large scale SRM setup can still use SRM as central hub until 2025. The transformation starts with S/4HANA 1709 on-premise edition. It is a transformation from Sophisticated SRM to S/4HANA central procurement. Consultants who works on ECC platform gets more insight in to central hub process. It also explains associated benefits for the difference scenario.

This article helps SAP Procurement consultants to understand the S/4 HANA central procurement component and related functional customization setup needed to start central procurement process.

Sap central procurement