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Product and Topic Expert
Product and Topic Expert
Co-author: anil.kumarkr


This blog post will provide the detailed process on Two-Tier ERP solution for process repair order integration wherein repair order is created in the subsidiary with parts procured from the headquarters.

Business Context:

OEMs or Headquarters employ Resellers/Retailers/Service providers as channel through which product can be delivered to the end customer. The same channel of business is also used for after sales service/repair wherein customer walks into retail stores or contacts the reseller for the product purchased.

Resellers/Retailers help customers in Service/Repair of products through In-House Repair or In-Store Repair. In certain complex scenarios, genuine parts need to be procured from the headquarters/OEM.



Process Flow

Subsidiary is running on SAP S/4HANA Cloud and Headquarters on SAP S/4HANA on-prem. Through Two-Tier ERP solutions, seamless orchestration of process between Subsidiary and Headquarters along with below Integration points.

  1. Inhouse Repair followed by Repair Order is created in the subsidiary which generates Purchase Requisition.

  2. Purchase order created from the requisition at subsidiary will be automatically transformed to Sales Order at headquarters.

  3. Headquarters confirms the Sales order followed by Delivery and subsequently inbound delivery against the Purchase order in the subsidiary.

  4. Repair order is closed through Return confirmation and good issue to the customer.

  5. Intercompany invoicing between subsidiary and headquarters on the part delivered.

  6. Two Best Practices – 3XK and 2EJ are integrated for an end-to-end process flow.



The process starts with customer walking into the Retailer stores or reaching out to Service Provided/Reseller with product complaint. Subsidiary receive the customer material through post good receipt and places it under customer stock. Customer Service Representative creates an In-House Repair to add the repair product and the serial number received from the customer.

Perform Pre-check is performed to assess the repair. As an optional process, additional products are required or out of warranty service, Repair quotation is generated for customer’s approval.

Repair Order is created with addition of part to be procured. Post confirmation of the Repair Order – Purchase requisition is created and automatically converted to Purchase order through background schedule purchase order creation job.

Purchase order is created with vendor as Headquarters. EDI output type in the purchase order send the details to Cloud integration. Integration flow created using standard artefacts help create a Sales order in OEM system with reference document as purchase order.

Similarly, EDI output from Sales Order triggers another Integration Flow for updating the purchase order, in the confirmations tab, with Sales order details. Subsequent Delivery creation – Post Good Issue from headquarters is done. Inbound delivery is created against the purchase order in subsidiary.

Repair confirmation is done against the repair order created. Goods issue is done to the end customer and Invoice created from the subsidiary.

Billing document is created at headquarters and bill to subsidiary, corresponding Supplier invoice will be created automatically at subsidiary.

Business Benefits

  • Experience greater automation for Repair Order in Two-Tier ERP. Seamless Integration of transactional steps like creation of Repair Order at Subsidiary with part procurement from headquarters.

  • Increase customer satisfaction through extended channel of service and genuine parts.

  • Reduction in the data entry points from the business users

  • Save costs for paper, postage, mailing, records management

  • Enable higher degrees of scalability with process efficiency gains


This blog post should help you to understand in detail about the direct delivery of service from subsidiary to customer against a purchase order in headquarter in Two-Tier Model.

Thanks for reading this blog post, hopefully the blog post was informative.

Two-Tier ERP Accelerators can be downloaded from best practice explorer and as shown in below screen

Best Practice Explorer


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