SAP S/4HANA 2020 Release

In this blog we will be highlighting what new and innovative functionalities have been added or introduced in SAP S/4 HANA 2020 release
The Intelligent ERP with a “Difference”

Thinking of modernizing the ERP system by creation of the mainstay pillars in connecting data, automation of organisations crucial and essential processes and functions, constantly improving the products & delivering services to enhance the customer delight. To ensure success in modernizing the ERP system, keep the following three facets in mind:

  • Digital Age User Experience: digital intelligent support, quick insights and perceptions in delivering value-adding experiences
  • Modern Driven Automation: increased efficiency and automation through roadmap of Machine learning, AI and predictive analytics.
  • Next-Generation Processes: Remodel and redesign business processes with the building innovative application.
Highlights in SAP S/4HANA 2020

With the release of SAP S/4HANA 2020, SAP has further extended the capabilities thereby enabling customers to take advantage of the latest innovations. The following list will showcase the highlights across different lines of business (LOB) industries.


SAP has been working on numerous enrichments for Predictive Material and Resource Planning and introduced the solution in SAP S/4 HANA 2020. MRP has been enhanced by reducing data maintenance efforts. By assigning a default material requirement planning (MRP) area in the material master in the material posting process for storage locations. Furthermore, there has been enhancements in several apps, e.g.

  • The “Schedule pMRP Simulation Creation” app - This app now comes with a new job template in creating simulation data by means of material component data.
  • The “Process pMRP Simulations” app involving several number of simulation views like “the Demand Plan & Capacity Plan Simulation” and the “Multi-Level Material Simulation”.
  • The new issue list displays a ranked and arranged list helping the production planning team to solve the most critical and important issues first.

The new “Capacity Plan Simulation” functionality – production users can shift capacity demands of top-level materials.


In the Finance LOB, the functionality bank relationship-management processes has been simplified by reducing the usage of general ledger (G/L) accounts as bank accounts. This has been done by using the same sets of bank reconciliation and clearing accounts for house bank connectivity; reducing significantly the required number of G/L accounts in the payment processes, thereby improving the chart of accounts maintenance. In the corporate close zone, finance users can now create multiple group currencies in a single closing process, increasing proficiency and mechanization when working with multiple group currencies or multiple currency translations, e.g. for comparison reporting - conversion at constant currency rates.

In a single closing process - accountants can generate multiple group currencies.

Sales & Distribution

SAP in SAP S/4HANA 2020 has made several appreciable modernizations in sales business processes.

  • Sales Order Management and Processing: improved sales force efficiency by enhancing “Intelligent Product and Quantity Proposals”. In this feature, the endorsements for product and quantity based on historical data; similarly for considering product listings and exclusions for the product proposals.
  • The intelligent product proposal allowing the business user to predicting the increase or decrease of products ordered quantity thereby increasing the faster order fulfilment and increases potential profitability.

Improved sales force efficiency with the usage of product and quantity proposals for quicker sales order creation.

Extended Warehouse Management

SAP has enhanced and improved the analytical capabilities thereby enhancing the warehouse operations visibility. Logistics and Transportation (LOB) enterprises having warehouse operations as well, it is imperative to for the business/operations to have the right insights into inbound & outbound activities so as to proactively and timely adjustment of priorities. The new capabilities like:

  • The new core data services (CDS) views and an improved navigation; allows to resolve possible holdups.
  • The newly “integrated “just-in-time supply to production” into extended warehouse management empowers the business user in stock reduction thereby saving inventory cost.

Supply Chain

The next-generation Extended Service Parts Planning solution has been introduced into the SAP S/4HANA system. With the single logical system, it saves the business user efforts and time as maintenance in one single system of all the master data objects and as well as all the planning steps is performed in the same system. This helps in maintenance of a high service level by using functionalities like forecasting, analytics, or distribution requirements planning (DRP), and thereby simultaneously still lowering the inventory costs.

Sourcing and Procurement

Intelligence is also brought to this line of business - Sourcing and Procurement. SAP has enhanced the real-time visibility and transparency with real-time dashboards providing central purchase contracts consumption insights. Leveraging crucial performance indicators helping to analyze and monitor the PO document automation rate example- better insights into the number of documents processed manually instead of automatically.


SAP in the most recent SAP S/4HANA release is providing some major important updates in Service Management (LB). The highlights are

  • The capability to plan recurring services with maintenance plan. This functionality is supporting “planned-service business scenarios”, thereby added maintenance plan features in SAP S/4HANA. This enables to proactively plan services and resource deployment plan on regular periods.
  • Systematic assets servicing definitely benefits in evading customer escalations and increase asset uptime.

Increased service efficiency with recurring services via maintenance plans.

Industry to Core – Automotive industry

SAP has released numerous innovations for the Just-In-Time (JIT) Processing.

  • The demand analysis of customer JIT calls in comparison with delivery schedules. The PPC can analyze demand from customer JIT calls compared to the MRP relevant demand from sales scheduling agreements using the MRP demand view.
  • Increased transparency on any deviations in the table-based and chart-based analysis allows classification of deviation profiles criticality ensuring best-possible consumption.

The “Demand Analysis of Customer JIT Calls app” - increased transparency on deviations.

Industry to Core – Consumer Products

Introduction of the complete new component “Last Mile Distribution” for SAP Direct Distribution in this current SAP S/4 HANA release This functionality helps to manage goods distribution directly to stores from a distribution center (secondary and tertiary sales).

  • Customers will be able to proactively plan the distribution routes integrating with SAP Transportation Management and then execute the routes with Last Mile Distribution (LMD).
  • Other feature of the LMD is delivery of goods, empties handling and returns, cash collection and invoice creation.
  • New SAP Fiori app “Settle Route Data” – business user can execute the complete settlement of the driver’s day activities.

New SAP Fiori “Settle Route Data” app - providing transparency on the driver’s daily activities.

The Oil & Gas industry

SAP has been meaningfully and continuously investing in the O&G industry; has added new functionality and value to the solution.

The new SAP S/4HANA 2020 SAP is complementing the innovation for Oil & Gas in the following areas:

  • Scheduling assistant application for SAP Trader’s and Scheduler’s Workbench (TSW): This is a new powerful Fiori app helping schedulers to easily match production demand and supply. The systems generate sources of supply proposals classified on “total logistics costs” which increases the supply chain efficiency. SAP supports elaborated sourcing scenarios on “transshipments” parameter and allowing for up to two modes of transport.
  • Inventory Planning Workbench (IPW) for SAP Trader’s and Scheduler’s Workbench (TSW): Continuous enhancement of the new “heart” transaction of the SAP TSW, the “Inventory Planning Workbench”. Improved the IPW usability - providing direct navigation from IPW to specific applications like the “Volume Mass Reading” app updating the physical inventory details for a location-material combination; helping to increase the ease of use and the end user efficiency.
  • The new SAP S/4HANA 2020 SAP is complementing the innovation for Oil & Gas in the following areas:

  • Integration between SAP Integrated Business Planning (IBP) and SAP TSW-IPW: The new release has expanded the out-of-the-box integration between SAP IBP and SAP TSW-IPW. Bulk forecasts created in SAP IBP can be directly used in the IPW stock projection due to a new consumption log.
  • Integration between SAP Joint Venture Accounting (JVA) and SAP S/4HANA for central finance: S/4HANA 2020 supports the full integration between SAP JVA and SAP S/4HANA allowing to reproduce SAP JVA master data and documents into central finance system.
SAP Activate for SAP S/4HANA

Finally, yet importantly, SAP has released “fit-to-standard” contained within the SAP Activate Methodology; covering all facets of fit-to-standard in the deliverables, tasks and related accelerators guiding the users. Furthermore, SAP has created a new accelerator making it easier for the users to follow the “Fit-to-Standard” approach in the implementation project. As mentioned at the very onset, that this blog is covering only selected innovations for selected LOBs and Industries, one can find the entire overview of innovations in the What’s New Document published on the SAP HELP Portal. To get further insights into SAP S/4HANA 2020 release, watch the deep dive of Release Highlights provided by SAP.