Co-author: Sahil GroverAbhijit Bolakhe

Welcome to the Two-Tier (Hybrid) ERP updates with new features available with SAP S/4HANA Cloud 2105 Release. If you missed the earlier release highlights click here.

With SAP S/4HANA Cloud 2105, we give four scenario innovations in Two Tier ERP.

Service Order Management 

In this scenario, you get direct delivery of service from subsidiary to customer against a purchase order in headquarter in Two-Tier Model, with seamless orchestration of processes between headquarters and subsidiary with below Integration points –

  1. Purchase order at Headquarter will be automatically transformed to service order at Subsidiary.
  2. Subsidiary confirms the service order and subsequently the Purchase order at the Headquarter is updated.
  3. Subsidiary creates billing documents; corresponding supplier invoice will be created at Headquarters.

To understand in detail about the direct delivery of service from subsidiary to customer against a purchase order in headquarter in Two-Tier Model, read the blog post.

Business Partner Replication using Cloud Integration

With SAP S/4HANA Cloud 2105, we release an accelerator for Business Partner integration using cloud integration middleware to replicate Business Partner from SAP S/4HANA on-premise offering to SAP S/4HANA Cloud.

The Integration of SAP S/4HANA on-premise to SAP S/4HANA Cloud supports a direct replication of master data without any middleware, but since a variety of customers need to involve a middleware for their interfaces as per their policy, this accelerator helps to replicate business partners from our SAP S/4HANA on-premise offering to SAP S/4HANA Cloud using cloud integration.

The accelerator reduces the implementation timeline drastically and offers a master data harmonization across the entire enterprise. It is easy to enhance based on your individual requirements and offers trouble shooting based on the AIF Message Monitoring. For more details read the blog post here.

Finance – Enterprise Risk and Compliance:

Central Privacy Governance

The use of personal information is strictly controlled by various regulations and privacy risks exist when this type of data is collected and processed.

Personal data in SAP applications must be protected according to the data protection laws. This is achieved by blocking and deleting data according to residence and retention rules. Residence rules are set to define the time for which data can stay in the database, after which it is archived. Retention rules are defined to store the archive files for a set amount of time, after which they can be destroyed.

As a supplement to manual governance, the scope item 3KX enables the automatic detection of privacy risks for personal information and relevant documents, such as sales order, providing insights on regulatory reporting and proactive auditing.


Central Financial Compliance Management

With SAP Financial Compliance Management, the compliance manager defines controls and procedures to monitor financial operation processes and detect anomalies when connected to the SAP S/4HANA system.

Financial processes generate many documents daily. Aside from manual checking and review, this scope item enables continuous monitoring of transaction information and detects activities that may cause a financial loss. The results from these monitored processes provide insights for the financial process in a company.

Use cases are pre-delivered together with the SAP Financial Compliance Management solution. You can refer the Set-up Instruction of the scope item 3KY for how to set it up. They are used as a quick start of your business as well as for demo and education purpose.

For details on both the above scenarios in Enterprise Risk and Compliance, read the blog post.


Two-Tier ERP Accelerators for above scenarios can be downloaded from best practice explorer and as shown in below screenshot.

Best Practice Explorer


Whitelisted APIs

Apart from the above features SAP has also released several APIs to facilitate Two-Tier ERP deployment. The details of the APIs can be found in API Hub and also in What’s new Viewer.

Stay tuned and updated with the new features in SAP S/4HANA Cloud for Two-Tier ERP in our upcoming blog posts with every release. Follow us, do write to us in the comments section.

For more information, check out the following links:



Randa Khaled

Randa Khaled

Author Since: November 19, 2020

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