Business Processes in SAP S/4HANA
SAP S/4HANA is SAP’s next-generation ERP system designed to run business operations in real time. It integrates all core business functions—Finance, Sales, Procurement, Manufacturing, HR, and more—into one intelligent platform.
To understand S/4HANA, you must know its core business processes. These processes represent how a company runs its day-to-day operations using SAP.
Below is a detailed breakdown of all major processes in SAP S/4HANA.
1. Order-to-Cash Process (O2C) – Sales Cycle
This process manages how a customer places an order and how the company receives payment.
Steps in O2C:
- Pre-Sales Activity – Inquiry/Quotation
- Sales Order Creation
- Availability Check (ATP)
- Outbound Delivery
- Picking & Packing
- Goods Issue
- Billing
- Incoming Payment
Modules Involved:
- SAP SD
- SAP MM
- SAP FICO
- SAP WM/EWM
2. Procure-to-Pay Process (P2P) – Procurement Cycle
This is the process companies use to buy materials, goods, and services.
Steps in P2P:
- Purchase Requisition
- Source of Supply / RFQ
- Purchase Order Creation
- Goods Receipt
- Invoice Verification
- Vendor Payment
Modules Involved:
- SAP MM
- SAP FI
- SAP WM/EWM
3. Plan-to-Produce Process (P2P) – Manufacturing Cycle
This covers planning and execution of production activities.
Steps in Plan-to-Produce:
- Demand Planning
- Material Requirements Planning (MRP)
- Production Order Creation
- Production Execution
- Goods Issue to Production
- Confirmation
- Goods Receipt from Production
Modules Involved:
- SAP PP
- SAP MM
- SAP QM
4. Record-to-Report Process (R2R) – Finance Cycle
This process manages financial data, reporting, and compliance.
Steps in R2R:
- General Ledger Posting
- Accounts Payable/Receivable
- Asset Accounting
- Period-End Closing
- Financial Reporting
Modules Involved:
- SAP FI
- SAP CO
- SAP BPC
- SAP Group Reporting
5. Hire-to-Retire Process (H2R) – HR Cycle
Covers the entire lifecycle of employees.
Steps in H2R:
- Employee Hiring
- Payroll & Time Management
- Training & Development
- Performance Management
- Exit / Retire
Modules Involved:
- SAP HCM
- SAP SuccessFactors
6. Forecast-to-Fulfill Process – Supply Chain Cycle
S/4HANA integrates planning and logistics in real time.
Steps:
- Demand Forecasting
- Supply Planning
- Inventory Planning
- Fulfillment Execution
Modules Involved:
- SAP IBP
- SAP EWM
- SAP TM
7. Acquire-to-Retire (A2R) – Asset Management
This process handles the complete management of fixed assets.
Steps:
- Asset Acquisition
- Depreciation Run
- Maintenance Scheduling
- Asset Retirement/Disposal
Modules Involved:
- SAP FI-AA
- SAP PM
8. Project-to-Delivery (P2D) – Project Management
Used for companies delivering projects or services.
Steps:
- Project Planning
- Budgeting & Costing
- Project Execution
- Billing
- Project Closure
Modules Involved:
- SAP PS
- SAP CO
- SAP SD
How SAP S/4HANA Makes These Processes Faster
SAP S/4HANA improves all business processes using:
In-Memory HANA Database
Faster processing and real-time reporting.
Fiori Applications
User-friendly and mobile-ready apps for every business role.
Simplified Data Models
Reduces data redundancy and accelerates operations.
Embedded Analytics
Live dashboards and KPIs within transactions.
Why These Processes Matter
Understanding SAP processes helps:
- Students learn modules faster
- Businesses map real workflows
- Consultants design blueprints
- Trainers create structured learning programs
- Candidates prepare for interviews
Processes are the backbone of every SAP implementation.