Public Sector Management in SAP S/4HANA Cloud Public Edition 2502

[MaryRamsrud]

The 2502 release of S/4HANA Cloud, Public Edition for public sector is here.

As planned, the Public Sector Management (PSM) Global scope bundle is now available for Austria, Japan, India, Singapore, New Zealand, Belgium, and Switzerland, alongside the existing countries: the US, Germany, Canada, Australia, the Netherlands, and the United Kingdom.  With this release, the US GASB scope is now also available as part of the PSM Global scope.   Moving forward with this streamlined release approach, allows for the continued expansion of the enterprise scope items also available to be deployed with PSM.   75 additional line of business scope items are added for selection with 2502, including the following:

• IFRS – International Financial Reporting Standards
• Intercompany functionality
• Logistics – extended warehouse management
• PO and service entry accruals
• Sales management

With ever increasing demand, we continue the planned expansion to additional countries in 2508.  Check out the roadmap for details.  

With an expanded focus on AI capabilities, including the enhanced functionality of SAP Joule, our AI-powered co-pilot, organizations can leverage smarter, more intuitive tools to navigate a dynamic landscape with agility and confidence. SAP Joule now brings even more powerful insights, and delivers personalized, data-driven recommendations to staff working on projects, grants, budgets, and finance, enabling them to focus on strategic priorities rather than operational complexities.

Cloud ERP core enhancements

As always, there’s a range of new core Cloud ERP feature-based innovations for S/4HANA Cloud Public Edition with the 2502 release. If you are interested in other areas of innovations for SAP’s Cloud ERP, please check out the Release Video from Bert Schulze:

Screenshot + URL: Get the top highlights of the 2502 release in this video by Bert Schulze

AI-Powered UX with SAP Joule

Joule, our Gen AI co-pilot, transforms user experience by simplifying tasks with instant insights and seamless navigation using natural language input. A standout feature is its personalized card creation, allowing users to quickly access critical ERP data like purchase orders and delivery updates, empowering more informed decision-making, and insights.  Joule provides navigational assistance to public sector users.   Where do I go to create a grant?  Show me a budget overview.   Not only does Joule help users quickly access the apps they need, but it also provides easy access to SAP’s available documentation.   What’s a sponsored program?  Tell me about grant billing.

Screenshot/Video URL: AI in Grants and Budget Management. 

As we advance in AI-assisted UX capabilities, the upcoming SAP S/4HANA Cloud Public Edition 2502 release brings exciting innovations in BETA testing, including:

• AI-assisted easy enterprise search
• AI-assisted smart personalization of My Home
• and AI-assisted error explanation

You can sign up through this link to start your BETA testing!

 
PSM Global

The SAP S/4HANA Cloud, Public Edition 2502 release delivers a robust suite of Grants and Budget Management features tailored for public sector entities, including state and local governments, non-profits, cities, K-12 schools, and education & research institutions.

Building upon previous releases, the 2502 update introduces a range of new capabilities designed to support public sector customers. Read on for an overview of the latest advancements.

For more details on this new global PSM scope bundle, visit the SAP Process Navigator to explore the complete list of available scope items. Direct link to the Roadmap Explorer: URL

Screenshot: Process Navigator focused on S/4HANA Public Cloud, and the PSM industry capabilities.

Residual-budget processing for Grants

Easily carry forward residual (unused) budget via the Budget Specialist Role into the next fiscal year:

• Have the ability to reuse a residual budget in line with legislation
• Improve reporting along fiscal years
• Exhibit fiduciary use of taxpayer money through increased compliance and transparency of the budget lifecycle

It’s now possible to move residual budget of grants forward in line with the existing residual budget processing. 

Note: for external budget (Relevant grant/External Fund), it is not possible to change the budget period.

 Overview:

• Enables either lapse or carry forward of unspent grant funds to the next fiscal year.
• Ensures consistency by extending residual budget processing to grants, not just general budgets.
• Maintains clear records of carried-forward amounts for transparency and reporting.

Benefits:

• Prevents loss of unspent funds, optimizing resource allocation.
• Provides better forecasting and control over multi-year grant spending.
• Enable users to restrict future reporting of grant budgets on the current fiscal year vs reporting back into past fiscal years.

Screenshot: set up a residual budget transfer for Grants.

Screenshot: successful run of residual budget transfer process

Output services for Earmarked Funds

Earmarked Funds documents allow for the reservation of expenditure budget in advance of expected procurement activity or direct expenses or to provide visibility for expected revenue.  Output services allow for a preformatted output with options to email or print

Overview:

• Easily create and export earmarked fund documents in a standardized PDF format.
• Ensures earmarked fund records are stored electronically for easy retrieval and audit.
• Generates legally compliant documents with necessary approvals and timestamps.

Benefits:

• Ensures earmarked fund documents meet regulatory and audit requirements.
• Enables quick access, retrieval, and long-term digital archiving of financial records.
• Prevents document tampering and ensures authenticity with standardized PDF outputs.

Screenshot: creation of the Earmarked Fund and the PDF output document.

Screenshot: PDF output from the Earmarked Fund Document

Enhancements – Commitments Based on Due Date

The ability to consume the budget for an expected expense instead of the posting date was previously released.  New enhancements streamline and clarify these options.  When due date is selected the following apply:

• if due date is empty in the document, the posting date acts as budget consumption date 
• for commitment changes before the budget consumption/due date, the existing budget consumption date is used for the updates 
• for changes after the budget consumption date, the logic for posting dates applies (CPU date or update date act as budget consumption date) 

Screenshot: define update date for budget consumption.

AVC activity groups for Travel Requests and Expense Report Obligation

 The availability control check (AVC check) compares the consumable budget with the consumed amounts (commitments and actual postings) for budget control objects.  Flexible, comprehensive AVC allows the customer to determine at what levels budget is checked, for which account assignments, and how the system responds. New AVC activity groups for travel requests and expense report obligations support flexibility for SAP Concur integration.

Note: it is not possible to run PSM AVC in parallel with project or cost center AVC. If PSM is active, only the PSM AVC can be used to control budget consumption.

 

Screenshot: tolerance profile activity groups

 Key Summary

The SAP S/4HANA Cloud Public Edition latest 2502 release brings key enhancements, including AI-driven user experiences, embedded AI features, and improved Grants and Budget Management capabilities.  This release continues to drive efficiency, scalability, and sustainability in ERP operations for public sector organizations. Please join us in the Cloud ERP revolution and explore how these innovations can unlock your organization’s full potential.

Sneak peak into what’s next!

Want to try out S/4HANA Cloud, Public Edition, for public sector?   Get a closer look at budget and grants management scenarios?   Access to the new public trial system will soon be available.   Register for a two-week trial and take it for a spin.   Look for my next blog coming soon with the full announcement and link.

Watch the Replays of Our SAP S/4HANA Cloud Public Edition 2502 Early Release Series!   

Between January 21st and January 24th, we conducted a series of engaging live sessions to showcase the exciting innovations in the SAP S/4HANA Cloud Public Edition 2502 release.

If you missed the live sessions, don't worry! You can still access the whole series or select the sessions that interest you the most. Seize this opportunity to watch them on demand at your convenience–anywhere, anytime.  

 Find All of Our Assets   

The 2502 release showcases 185 innovation highlights across the portfolio. 
Check out our release document for all the details!

Screenshot: Key Highlights of the SAP S/4HANA Cloud Public Edition 2502 release.

Thanks for reading!