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Two-Tier ERP – Business Use Case
Let’s see a Two-Tier ERP business use case where Tier2 is a subsidiary company with SAP S/4HANA Cloud Public Edition and Tier1 is the headquarter on SAP S/4HANA Cloud Private Edition.
The subsidiary mainly acts a customer Service agency for the original equipment that is being sold to the customer from the Headquarter.
The subsidiary maintaining the end customer warranty information as well as the vendor warranty information for the equipment.
An after sales service performed on an equipment by the subsidiary under warranty registers as a case of customer warranty claim.
Based on the terms with the original equipment manufacturer a subsidiary performing the service can ask for a reimbursement on the cost incurred for the customer service claim prevailed under a warranty.
SAP’s solution
The warranty management in SAP S/4HANA Public cloud allows to maintain the customer warranty and the vendor warranty details for an equipment.
When a claim is created based on the type of the claim the warranty validation is done automatically in the claim. For example, in case a customer claim is created for an equipment and a customer warranty is maintained and applicable at the point of the claim creation range then the claim will be validated against the latest valid warranty. Similarly, a supplier claim created will be validated against the latest vendor warranty maintained for the equipment.
The vendor warranty details can be sent to the headquarters for the reimbursement.
The headquarter then creates a customer claim wherein the requesting service organization itself as the customer and then processing with claim reimbursement process.
The approved claim amount can be sent to the subsidiary manually. Where in subsidiary can maintain the supplier response in the Supplier claim application.
The post to finance action on both the subsidiary and headquarter of the Supplier and vendor claim applications respectively clears out the account postings in either side of the transaction.
Process flow
The figure below provides the overall process flow of the transactions between the subsidiary and the headquarter.
The Subsidiary creating a supplier claim generates the event of claim creation which can be listened to and then an API call from the headquarters to the public cloud fetches the details of the supplier claim.
Based on the details furnished a corresponding customer claim is created in the headquarter using the IDoc.
Further when a claim is validated the output management configured in the system helps to generate different type s of output including pdf and generating emails automatically.
The response from the headquarter must be manually maintained in the subsidiary through the action “Maintain supplier response” in the manage supplier claim application.
The usual process for the Scope items 63Y and 5HR forms the key process steps for this scenario.
Integration detail
SAP S/4HANA Public Cloud edition is integrated with On-premise using SAP Event Mesh which facilitates communication between applications via asynchronous events and captures associated data. When a supplier claim is generated in SAP S/4HANA Public Cloud, an event is triggered and captured by Event Mesh. Upon receiving the webhook, Cloud integration processes the data. Specific data from the supplier warranty is extracted using the Warranty Claim API in cloud CI from SAP S/4HANA Public cloud edition . The data is then transformed and mapped to align with SAP On-premise requirements. The transformed/mapped data is then sent to the On-premise system to create a Customer Warranty claim achieved through an API call for Warranty claim creation or Idoc with message type WNTYCF.
References
Warranty claim management – Customer claim processing (63Y)
Warranty claim management – Supplier Recovery process
Business Event handling and Event Mesh
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