SAP S/4HANA Business Process Integration Certification Guide: Application Associate Exam (2021)

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SAP PRESS is a joint initiative of SAP and Rheinwerk Publishing. The know-how offeredby SAP specialists combined with the expertise of Rheinwerk Publishing offers thereader expert books in the field. SAP PRESS features first-hand information and expertadvice, and provides useful skills for professional decision-making.SAP PRESS offers a variety of books on technical and business-related topics for the SAPuser. For further information, please visit our website:http://www.sap-press.com.Bardhan, Baumgartl, Choi, Dudgeon, Górecki, Lahiri, Meijerink, Worsley-TonksSAP S/4HANA: An Introduction (4thEdition)2021, 648 pages, hardcover and e-bookwww.sap-press.com/5232Darío Franco, Jon SimmondsSAP S/4HANA Sales Certification Guide: Application Associate Exam2021, approx. 550 pp., paperback and e-bookwww.sap-press.com/5308Aditya LalSAP Activate Project Management Certification Guide:Certified Associate Exam2021, 530 pages, paperback and e-bookwww.sap-press.com/5194Stefanos PougkasSAP S/4HANA Financial Accounting Certification Guide:Application Associate Exam (3rdEdition)2021, 450 pages, paperback and e-bookwww.sap-press.com/5310Fabienne BourdelleSAP S/4HANA Sourcing and Procurement Certification Guide:Application Associate Exam2021, 452 pages, paperback and e-bookwww.sap-press.com/5124

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Murat AdivarSAP S/4HANA®Business ProcessIntegration Certification GuideApplication Associate Exam

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Dear Reader,In college, an upcoming exam meant three things: little sleep, lots of stress, and a veryheavy bookbag.As an English major, I often found that the books I needed to study exceeded the spaceon my desk. Between the stacks of novels, compendiums of literary theory, and collec-tions of short stories and poetry, the reading material felt endless. It was often difficultto know exactly what would appear on a test—I remember one particular late-nightstudy session spent agonizing over Shakespeare’s 154 sonnets—and the test formatitself could often be a mystery.Luckily, when it comes to your SAP S/4HANA business process integration exam, thisbook is your one-stop shop. Instead of Dickens, Twain, and Tolstoy on your test, you’llreview financial accounting, procurement, plant maintenance, and so on—all of whichare covered within these pages. Plus, you’ll find no better instructor than Murat Adivar,who will expertly prepare you for what to expect on exam day, teach you the core topics,and reinforce your knowledge with practice questions and answers. You’ll be ready tomake the grade with less stress, more sleep, and a much lighter bookbag!What did you think aboutSAP S/4HANA Business Process Integration Certification Guide:Application Associate Exam? Your comments and suggestions are the most useful toolsto help us make our books the best they can be. Please feel free to contact me and shareany praise or criticism you may have.Thank you for purchasing a book from SAP PRESS!Megan FuerstEditor, SAP PRESSmeganf@rheinwerk-publishing.comwww.sap-press.comRheinwerk Publishing • Boston, MA

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Notes on UsageThis e-book isprotected by copyright. By purchasing this e-book, you have agreed toaccept and adhere to the copyrights. You are entitled to use this e-book for personal pur-poses. You may print and copy it, too, but also only for personal use. Sharing an electronicor printed copy with others, however, is not permitted, neither as a whole nor in parts. Ofcourse, making them available on the Internet or in a company network is illegal as well.For detailed and legally binding usage conditions, please refer to the sectionLegal Notes.This e-book copy contains adigital watermark, a signature that indicates which personmay use this copy:

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ImprintThis e-book is a publication many contributed to, specifically:EditorMegan FuerstAcquisitions EditorEmily NichollsCopyeditorYvette ChinCover DesignGraham GearyPhoto CreditiStockphoto.com: 1156318617/© GovindanmarudhaiProduction E-BookGraham GearyTypesetting E-BookSatzPro, Krefeld (Germany)We hope that you liked this e-book. Please share your feedback withus and read theService Pagesto find out how to contact us.The Library of Congress has cataloged the printed edition as follows:Names: Adivar, Murat, author.Title: SAP S/4HANA business process integration certification guide :application associate exam / by Murat Adivar.Description: 1st edition. | Bonn ; Boston : SAP Press ; RheinwerkPublishing, 2021. | Includes index.Identifiers: LCCN 2021014604 | ISBN 9781493220670 (hardcover) | ISBN9781493220687 (ebook)Subjects: LCSH: SAP HANA (Electronic resource)--Examinations--Study guides.| Management information systems--Examinations--Study guides. |Business--Data processing--Management. | Enterprise resource planning. |Database management--Certification--Study guides. | Databasemanagement--Examinations--Study guides.Classification: LCC HD30.213 .A27 2021 | DDC 650.0285/53--dc23LC record available at https://lccn.loc.gov/2021014604ISBN 978-1-4932-2067-0 (print)ISBN 978-1-4932-2068-7 (e-book)ISBN 978-1-4932-2069-4 (print and e-book)© 2021 by Rheinwerk Publishing, Inc., Boston (MA)1stedition 2021

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7ContentsPreface .....................................................................................................................................................15Introduction: The Path to Certification ........................................................................................191SAP S/4HANA Basics351.1Objectives of This Portion of the Test........................................................................361.2SAP S/4HANA Suite............................................................................................................371.2.1Motivators and Technology Enablers ............................................................371.2.2Components ...........................................................................................................391.2.3Key Characteristics ...............................................................................................431.3The Intelligent Enterprise................................................................................................461.3.1The Intelligent Suite and Enhanced Business Processes .........................461.3.2Intelligent Technologies .....................................................................................481.3.3Industry Cloud .......................................................................................................481.3.4SAP Business Technology Platform ................................................................481.4SAP Fiori...................................................................................................................................501.4.1Design and Dimensions .....................................................................................501.4.2SAP Fiori Launchpad ............................................................................................521.4.3Application Types .................................................................................................541.5System-Wide Concepts.....................................................................................................541.5.1Data ...........................................................................................................................551.5.2Client .........................................................................................................................571.5.3Transactions ...........................................................................................................571.5.4Documents .............................................................................................................591.5.5Outputs ....................................................................................................................601.6Business Process Integration..........................................................................................611.7Important Terminology....................................................................................................611.8Practice Questions...............................................................................................................641.9Practice Question Answers and Explanations........................................................671.10Test Takeaway......................................................................................................................70

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Contents82Core Finance: Financial Accounting712.1Objectives of This Portion of the Test........................................................................732.2Data Structures for Financial Accounting.................................................................732.2.1Organizational Data ............................................................................................732.2.2Master Data ............................................................................................................752.2.3Data Assignments ................................................................................................802.3Key Processes of Financial Accounting......................................................................812.3.1General Ledger Accounting ...............................................................................812.3.2Accounts Payable ..................................................................................................982.3.3Accounts Receivable ............................................................................................992.3.4Asset Accounting ..................................................................................................992.4Integration with Other Modules..................................................................................1082.4.1Integration via Cross-Module Data Assignments .....................................1082.4.2Integration via Transactions .............................................................................1092.5Important Terminology....................................................................................................1112.6Practice Questions...............................................................................................................1142.7Practice Question Answers and Explanations........................................................1192.8Test Takeaway......................................................................................................................1243Core Finance: Management Accounting1253.1Objectives of This Portion of the Test........................................................................1273.2Data Structures for Management Accounting.......................................................1273.2.1Organizational Data ............................................................................................1283.2.2Master Data ............................................................................................................1303.2.3Data Assignments ................................................................................................1333.3Key Processes of Management Accounting.............................................................1333.3.1Cost Element Accounting ..................................................................................1343.3.2Cost Center Accounting .....................................................................................1363.3.3Activity-Based Costing ........................................................................................1463.3.4Internal Orders ......................................................................................................1473.3.5Profitability Analysis and Sales Controlling .................................................1513.3.6Product Cost Accounting ...................................................................................1553.3.7Profit Center Accounting ...................................................................................1583.4Integration with Other Modules..................................................................................1613.4.1Integration via Cross-Module Data Assignments .....................................1613.4.2Integration via Transactions .............................................................................163

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Contents93.5Important Terminology....................................................................................................1663.6Practice Questions...............................................................................................................1693.7Practice Question Answers and Explanations........................................................1753.8Test Takeaway......................................................................................................................1804Source-to-Pay Processing1834.1Objectives of This Portion of the Test........................................................................1854.2Data Structures for Source-To-Pay..............................................................................1854.2.1Organizational Data ............................................................................................1864.2.2Master Data ............................................................................................................1884.2.3Data Assignments ................................................................................................2014.3Key Processes of Source-to-Pay.....................................................................................2044.3.1Determination of Requirements .....................................................................2054.3.2Source of Supply Determination .....................................................................2094.3.3Vendor Selection ...................................................................................................2114.3.4Purchase Order Handling ...................................................................................2114.3.5Goods Receipt ........................................................................................................2154.3.6Invoice Verification ..............................................................................................2214.3.7Payment ...................................................................................................................2234.4Integration with Other Modules..................................................................................2244.4.1Integration via Cross-Module Data Assignments .....................................2244.4.2Integration via Transactions .............................................................................2254.4.3SAP Ariba Integration ..........................................................................................2264.5Important Terminology....................................................................................................2274.6Practice Questions...............................................................................................................2284.7Practice Question Answers and Explanations........................................................2334.8Test Takeaway......................................................................................................................2365Lead-to-Cash Processing2375.1Objectives of This Portion of the Test........................................................................2395.2Data Structures for Lead-to-Cash.................................................................................2405.2.1Organizational Data ............................................................................................2405.2.2Master Data ............................................................................................................2435.2.3Data Assignments ................................................................................................249

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Contents105.3Key Processes of Lead-to-Cash......................................................................................2515.3.1Order-to-Cash Overview ....................................................................................2525.3.2Sales Order Handling ..........................................................................................2545.3.3Outbound Delivery Handling ...........................................................................2655.3.4Billing ........................................................................................................................2755.4Integration with Other Modules..................................................................................2795.4.1Integration via Cross-Module Data Assignments .....................................2795.4.2Integration via Transactions .............................................................................2795.5Important Terminology....................................................................................................2815.6Practice Questions...............................................................................................................2835.7Practice Question Answers and Explanations........................................................2885.8Test Takeaway......................................................................................................................2926Design-to-Operate Processing2956.1Objectives of This Portion of the Test........................................................................2976.2Data Structures for Design-to-Operate.....................................................................2976.2.1Organizational Data ............................................................................................2986.2.2Master Data ............................................................................................................2986.2.3Data Assignments ................................................................................................3126.3Key Processes of Design-to-Operate...........................................................................3136.3.1Strategic Planning ................................................................................................3146.3.2Demand Management .......................................................................................3166.3.3SAP Integrated Business Planning ..................................................................3166.3.4Detailed Planning .................................................................................................3176.3.5Manufacturing Control and Execution .........................................................3276.4Integration with Other Modules..................................................................................3416.4.1Integration via Cross-Module Data Assignments .....................................3416.4.2Integration via Transactions .............................................................................3426.5Important Terminology....................................................................................................3446.6Practice Questions...............................................................................................................3466.7Practice Question Answers and Explanations........................................................3526.8Test Takeaway......................................................................................................................356

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Contents117Enterprise Asset Management3597.1Objectives of This Portion of the Test........................................................................3607.2Data Structures for Enterprise Asset Management.............................................3617.2.1Organizational Data ............................................................................................3617.2.2Master Data ............................................................................................................3637.2.3Data Assignments ................................................................................................3717.3Key Processes of Enterprise Asset Management...................................................3727.3.1Maintenance Notification .................................................................................3737.3.2Maintenance Planning .......................................................................................3757.3.3Maintenance Control ..........................................................................................3797.3.4Maintenance Execution .....................................................................................3807.3.5Maintenance Completion ..................................................................................3817.4Integration with Other Modules..................................................................................3867.4.1Integration via Cross-Module Data Assignments .....................................3867.4.2Integration via Transactions .............................................................................3877.5Important Terminology....................................................................................................3887.6Practice Questions...............................................................................................................3907.7Practice Question Answers and Explanations........................................................3957.8Test Takeaway......................................................................................................................3988Inventory, Warehouse, and TransportationManagement3998.1Objectives of This Portion of the Test........................................................................4018.2Inventory Management....................................................................................................4028.2.1Organizational Data ............................................................................................4028.2.2Goods Movements ...............................................................................................4038.2.3Documents for Goods Movements ................................................................4108.3Warehouse Management................................................................................................4118.3.1Organizational Data ............................................................................................4128.3.2Centralized Warehouse Management ..........................................................4148.3.3Decentralized Warehouse Management .....................................................4168.4Extended Warehouse Management...........................................................................4178.5Transportation Management........................................................................................419

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Contents128.6Integration with Other Modules..................................................................................4228.6.1Integration via Cross-Module Data Assignments .....................................4228.6.2Integration via Transactions .............................................................................4228.7Important Terminology....................................................................................................4248.8Practice Questions...............................................................................................................4268.9Practice Question Answers and Explanations........................................................4328.10Test Takeaway......................................................................................................................4359Project System4379.1Objectives of This Portion of the Test........................................................................4389.2Data Structures for Project System.............................................................................4399.2.1Project Structuring Elements ...........................................................................4399.2.2Data Assignments ................................................................................................4519.3Key Processes of Project System...................................................................................4529.3.1Project Planning ....................................................................................................4539.3.2Project Budgeting .................................................................................................4569.3.3Project Execution ..................................................................................................4579.3.4Period-End Closing ...............................................................................................4619.4Integration with Other Modules..................................................................................4639.4.1Integration via Cross-Module Data Assignments .....................................4639.4.2Integration via Transactions .............................................................................4659.5Important Terminology....................................................................................................4669.6Practice Questions...............................................................................................................4679.7Practice Question Answers and Explanations........................................................4719.8Test Takeaway......................................................................................................................47410Hire-to-Retire Processing47710.1Objectives of This Portion of the Test........................................................................47910.2Data Structures for Hire-to-Retire...............................................................................47910.2.1Organizational Structures .................................................................................47910.2.2Master Data ............................................................................................................48510.2.3Data Assignments ................................................................................................489

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Contents1310.3Key Processes of Hire-to-Retire.....................................................................................49010.3.1Hire-to-Retire Tasks .............................................................................................49010.3.2Human Capital Management versus Human ExperienceManagement .......................................................................................................49110.3.3SAP SuccessFactors Employee Central ..........................................................49510.3.4Self-Service Tools ..................................................................................................49610.4Integration with Other Modules..................................................................................49710.4.1Integration via Cross-Module Data Assignments .....................................49710.4.2Integration via Transactions .............................................................................49810.5Important Terminology....................................................................................................49810.6Practice Questions...............................................................................................................50010.7Practice Question Answers and Explanations........................................................50310.8Test Takeaway......................................................................................................................505The Author.............................................................................................................................................507Index........................................................................................................................................................509Service Pages .....................................................................................................................................ILegal Notes .........................................................................................................................................I

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15PrefaceWelcome to the C_TS410 certification guide. This book is specifically written assupport material for those preparing for the SAP Certified Application Associate –Business Process Integration with SAP S/4HANA (C_TS410_1809, C_TS410_1909, orC_TS410_2020) exam. We’ll mainly focus on business processes and their integra-tions with the SAP S/4HANA intelligent enterprise suite. This book can also helpapplication consultants, business process architects, program/project managers,and enterprise architects by providing a comprehensive overview of all businessprocesses within SAP S/4HANA.Using this book, you’ll gain a thorough understanding of the exam’s structure.You’ll learn to navigate an SAP S/4HANA system, describe how various businesstransactions are performed in SAP S/4HANA, and explain the integration pointsbetween applications within the SAP S/4HANA intelligent enterprise.How This Book Is OrganizedThis book’s content is aligned with the SAP TS410 course syllabus and the C_TS410certification exam structure. All the information provided in this book is relevantto what you’ll need to know for the exam. We’ll introduce you to SAP products andtheirsupportedbusinessprocessesusingreal-worldscenarios,figures,andstraightforward language. Each chapter in this book ends with a section of practicequestions to help test your knowledge of specific topic areas on the certificationexam. We’ll introduce you to several versions of the certification exam, test-takingtechniques, and alternative ways to learn in the Introduction.Now that you have an idea of how this book is structured, let’s briefly look at theparticular topics covered in each chapter:Chapter 1:SAPS/4HANABasicsIn this chapter, we cover all basic certification-related concepts of SAP S/4HANA.We explain the technology enablers of and the motivation behind developing anew business suite that runs natively on SAP HANA. We outline the compo-nents of the intelligent enterprise framework and introduce SAP Fiori, SAP’snext-generation user experience (UX). We conclude the chapter by highlightingsome system-wide concepts (e.g., organizational data, master data, transac-tions, documents, outputs) that are essential for the certification exam.

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