Integration with Logistic

  • By Priyanka Jubre
  • December 26, 2023
  • SAP
Integration with Logistic

Integration with Logistic

SAP is a highly integrated system, which is where its main strength lies. To define efficient processes that meet the business requirements of all departments, you must have many integration meetings in which both the financial and logistic teams discuss the end-to-end (E2E) processes,  not only separate processes within a process area. Typical requirements definition areas that should be a joint effort between finance and logistics are inventory valuation, account determination, and tax code determination. Indeed, the configuration transactions for those areas can be found in both the finance and logistics areas of the SAP Reference! MG. For example, tax codes are defined by the finance department. However, the automatic determination of the proper tax code in the different purchase and sales processes comes from what are called condition records and condition tables, which are typically maintained by the sales and purchasing consultants. In this blog, we will discuss Integration with Logistics.

Integration with Logistic

 Many functions are integration points between finance and logistics


The requirements definition in these areas should be a joint effort of both the financial and logistic teams. 


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The discussion of these logistic processes should involve users from both finance and logistics to determine the proper tax treatment for each process.

Integration with Logistic

  •  Requirements Analysis.

 Account determination is typically a finance task, but many logistic processes post auto· matically in financial accounting and thus must have corrected the accounts assigned to work properly. Normally, the requirements definition document for this topic should be owned by finance, but the document should be worked on in conjunction with the logistics team. Similarly, inventory valuation usually is owned by finance, but its nature requires development in close integration with logistics. Also, many requirements definition documents are typically owned by logistics but may also require consultation with finance. Just to name a few, these areas include material master data, credit management, and pricing. As you can see, requirements analysis is a complex stage of the project that must be conducted in a highly integrated manner between financial and logistic consultants and subject matter experts.


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  • Localization Fit/Gap Analysis.

 The system template is the foundation of the SAP S/4HANA implementation, but the real deployments are done at a country level. Typically, once the template is tested, and signed off on, country-level deployments start in earnest.  and then over the next couple of years, all the other countries are deployed in carefully selected waves. In large companies operating in many markets, these deployments can last for 5 or 10 years, or even longer (in rare cases). 

  • Other Local Requirements 

Other local requirements may not fall neatly into the category of local accounting standards or local tax codes. These requirements stem from local business practices or local ways of accounting for certain transactions.


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Priyanka Jubre

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