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This blog provides you with the latest innovations that our SAP S/4HANA Cloud 2005 release has in store for you in the area Hybrid Cloud Deployment.

1. Advanced Payment Management (APM)

Advanced Payment Management (APM) is like a centralized payment factory that supports the monitoring and approval of payments for an entire corporate group consisting of SAP and non-SAP systems. Payments are typically initiated in local systems of the affiliates, subsidiaries or lines of business. These local systems can be SAP or non-SAP and can be on-premise or cloud solutions. These systems can handle payments in a flexible way but for sure they are not providing a centralized view on global cash positions or status monitoring or handle exceptions nor do they help in optimizing payment execution. In such heterogenous landscapes, it is important to have a centralized payment, where the subsidiaries can submit their payments to a centralized payment factory.

Within advanced payment management the payments are converted to an internal format and are processed based on the configured rules, potentially resulting in updates to SAP Cash Management, postings to GL or even SAP In-House Cash. During processing the solution leverages the bank account management information to determine the bank to be used and triggers the final approval via Bank Communication Management. Once approved the external payment format is generated leveraging DMEEX and gets passed via the standard integration to SAP Multi-Bank Connectivity.

Value Proposition

  • APM provides a single source of truth for payments and the related cash position by a seamless integration with cash management and bank account management.

  • Streamlines the end to end payment process across corporate group.

  • Payments can be submitted either using API’s or physical files.


  • Integration of SAP and non-SAP systems (such as finance contract accounting) into a central payment factory

  • Handling of many, varied kinds of input and output formats (XML, CSV, MT101, and such)

  • Flexibility in processing rules (validations, exception handling, and more)

  • Ability to handle high volumes of transactions

  • Capabilities for advanced, comprehensive monitoring and reporting

2. Supplier Financing

In a two-tier scenario, where in the Headquarters acts as a supplier for the subsidiaries running S4/HANA Cloud, supplier financing helps buyers i.e., the subsidiaries have an uninterrupted supply by providing liquidity to the Headquarters.

In supplier financing, the subsidiary shares the invoices from the Headquarters to the Bank. The Bank takes over the subsidiaries’ payables and finances these in advance. The Bank offers the Headquarters with various payment options, such as early payment. This helps to improve the cash flow throughout the corporate group.

Value Proposition

  • Improve cash flow and operations of companies

  • Lowering financing costs and Improve business efficiency

  • Strengthen relationship with important suppliers and secure the supply chain

  • Optimize working capital

    • Extend days payables outstanding for the buyer (Purchase-2-Pay)

    • Decrease days sales outstanding for the supplier (Order-2-Cash)

  • With Supplier Financing, buyers and suppliers can get access to financing conditions which they might not be able to receive directly.


  • Links the various parties in a transaction - buyer, supplier, and factor (bank)

  • Give buyers and suppliers access to financing conditions that they may not be able to receive directly

  • Invoice payment via supplier financing

3. Centralized pricing

Centralized Pricing required for companies who would like to have faster decision-making, have strict policy and compliance requirements in managing their prices centrally at their Headquarters for all their subsidiaries. This accelerator helps organization in reducing their implementation timeline.

Value Proposition

  • Increase process effectiveness and operational excellence

  • Helps managing the price centrally there by avoiding redundant and manual work

  • Helps in better control by restricting their subsidiaries in modifying the prices

  • Better control on the negotiation with the customer as pricing is managed centrally


  • Replication of Pricing Master from SAP S/4HANA On-premise system to S/4HANA Cloud

  • Trouble shooting based on AIF (Application Integration Framework) Monitor

  • The accelerator can be extended to include discounts, commissions, surcharges etc.


For more information on SAP S/4HANA Cloud, check out the following links: