SAP AI Glossary
Plain-language definitions of AI terms — with real SAP examples. No coding background required.
Agent / AI Agent
AI that takes a sequence of actions — not just answers questions.
An invoice-processing agent calls SAP APIs to check POs, GRs, and tolerances — then releases or escalates automatically.
A2A (Agent-to-Agent)
Multiple specialised AI agents collaborating on a complex task.
A coordinator agent delegates to a Finance agent and an MM agent, then combines their findings into a procure-to-pay analysis. SAP's BTP AI architecture supports A2A natively.
API (Application Programming Interface)
How software systems talk to each other.
SAP's BAPIs, OData services, and RFCs are all APIs. When AI connects to SAP data, it does so through an API.
Context Window
How much text an LLM can hold in mind at once — your entire conversation plus any documents shared.
Pasting a large ABAP dump or a long transport log can exceed the context window. The AI may truncate or miss earlier parts of the conversation.
Embeddings
Text converted into numbers (vectors) that represent its meaning — enabling semantic search.
Your SAP procedures document gets split into chunks, each chunk gets an embedding, and those embeddings are stored in a vector database. The AI retrieves relevant chunks by meaning, not just keyword match.
Fine-tuning
Training an LLM further on your specific data to make it better at specific tasks.
A fine-tuned SAP model trained on thousands of SAP Notes would know SAP terminology more deeply. Less common than RAG — fine-tuning is expensive and requires stable, high-quality training data.
Hook
A function that runs before or after an event to add custom logic — intercept, validate, enrich.
A pre-execution hook on an invoice-release agent checks: is the variance within auto-release tolerance? If not, the hook blocks the action and forces human approval. Analogous to BAdIs in ABAP.
LLM (Large Language Model)
The AI system that understands and generates text.
SAP Joule is a product layer built on top of LLMs. Claude (Anthropic) and GPT-4 (OpenAI) are the underlying models. SAP AI Core can host and run LLMs inside your BTP landscape.
MCP Server (Model Context Protocol)
A universal connector that exposes your SAP system's data and actions to any AI agent via a standard protocol.
An ABAP MCP server exposes SAP function modules as AI-callable tools. A CAP MCP server exposes BTP services. Any MCP-compatible AI agent (Claude, Joule, etc.) can then call your SAP system through these tools.
Prompt
Your instruction or question to an AI.
"Explain document splitting in SAP FI" — that's a prompt. The quality of your prompt directly affects the quality of the AI's answer.
RAG (Retrieval-Augmented Generation)
AI that retrieves relevant documents before generating an answer — grounding responses in your actual data.
Before answering "What is our intercompany invoicing process?", a RAG system retrieves your internal SOP from the document store, then generates an answer based on your actual procedure — not generic SAP theory.
System Prompt
Hidden instructions that define how an AI behaves — its role, rules, and constraints.
Joule's behaviour is shaped by a system prompt written by SAP engineers. The AI Assistant on this platform has a system prompt that tells it to be an SAP expert and stay on topic.
Token
The AI's unit of text — roughly ¾ of a word. LLMs process and generate tokens, not characters or words.
AI APIs are priced per token. A long SAP ABAP error trace is thousands of tokens — understanding this helps you use AI tools cost-effectively.
Tool Use / Function Calling
The mechanism that lets AI agents call external systems — defined functions with names, descriptions, and parameters.
An agent with a tool called `post_fi_document` can call BAPI_ACC_DOCUMENT_POST in SAP. The tool definition tells the AI what the function does, what parameters it needs, and what it returns.
Client
The top-level, self-contained unit in an SAP system with its own data.
You log on to a specific SAP client (a 3-digit number); master and transactional data are separated by client.
Company Code
The smallest org unit for which a full set of accounts can be produced for external reporting.
Each legal entity is usually one SAP FI company code, identified by a 4-character key.
Controlling Area
The org unit that structures internal management accounting.
One SAP controlling area can span multiple company codes that share a chart of accounts for CO.
Plant
An operational unit that makes goods or provides services within a company.
A plant in SAP represents a factory, warehouse, or branch, keyed by 4 characters.
Storage Location
A place where stock is physically kept within a plant.
Inventory in SAP MM is tracked by plant and storage location.
Purchasing Organization
The unit responsible for procurement and purchasing terms.
An SAP MM purchasing organization is assigned to company codes and plants to procure materials.
Sales Organization
The top unit responsible for selling and distributing products.
An SAP SD sales organization is responsible for sales, returns, and liability.
Distribution Channel
The route through which products reach customers, such as wholesale or retail.
SAP SD combines distribution channel with sales org and division to form a sales area.
Division
A product line or grouping of related products and services.
SAP SD uses division as part of the sales area to organize products.
Sales Area
The combination of sales organization, distribution channel, and division.
Every SAP SD sales order is processed within one sales area.
Business Area
An org unit for internal segment reporting across company codes.
SAP FI business areas allow segment statements, though many now use profit centers.
Profit Center
An area of responsibility for which profit is measured.
SAP profit center accounting reports internal profit and loss for segments.
Cost Center
A unit where costs are incurred and collected.
A department such as IT or HR is set up as a cost center in SAP CO.
Credit Control Area
The org unit that manages customer credit limits.
SAP checks the customer credit limit against the credit control area during order entry.
Shipping Point
The physical location from which deliveries are sent.
SAP SD determines a shipping point to process outbound deliveries.
Valuation Area
The level at which material stock is valued, usually the plant.
SAP MM material valuation is set at plant or company-code level by configuration.
Master Data
Core, relatively static business data reused across many transactions.
Material, vendor, and customer masters are SAP master data, distinct from documents.
Transactional Data
Data created by day-to-day business documents and events.
Purchase orders and invoices are SAP transactional data posted against master data.
Material Master
The central record holding all information about a material.
The SAP material master has views for accounting, purchasing, sales, MRP, and more.
Vendor Master
The record holding all information about a supplier.
In SAP S/4HANA the vendor master is represented by the business partner.
Customer Master
The record holding all information about a customer.
In SAP S/4HANA the customer master is represented by the business partner.
Business Partner
The single master-data object for customers and vendors in S/4HANA.
SAP S/4HANA replaces separate customer and vendor masters with one business partner using roles.
G/L Account
An account in the general ledger used to record financial postings.
Every SAP FI posting hits at least one G/L account from the chart of accounts.
Reconciliation Account
A G/L account that mirrors sub-ledger postings automatically.
SAP FI updates the reconciliation account whenever you post to a vendor or customer.
Cost Element
A classification of costs and revenues in Controlling.
SAP CO primary cost elements link to G/L accounts; secondary ones are used only in CO.
Activity Type
A measurable service a cost center provides, used to allocate cost.
SAP CO uses activity types such as machine hours to charge costs to receivers.
Bill of Material
A structured list of the components needed to make a product.
SAP PP uses a BOM with a routing to plan and cost production.
Routing
The sequence of operations and work centers to manufacture a product.
An SAP PP routing defines operations, times, and work centers.
Work Center
A place where production operations are carried out.
SAP PP routings reference work centers that hold capacity and costing data.
Purchasing Info Record
A record linking a material to a vendor with price and terms.
SAP MM uses the info record to default price and lead time into purchase orders.
Condition Record
Stored data that drives pricing, discounts, taxes, or freight.
SAP SD and MM read condition records during pricing to determine amounts.
Pricing Procedure
The ordered set of condition types that calculates a price.
SAP SD pricing procedures combine base price, discounts, surcharges, and taxes in sequence.
General Ledger
The central record of all financial postings for external reporting.
The SAP FI general ledger consolidates sub-ledger activity into financial statements.
Sub-ledger
A detailed ledger for a specific area such as AP, AR, or assets.
SAP FI sub-ledgers post in real time to reconciliation accounts in the general ledger.
Accounts Payable
The function that manages what a company owes its vendors.
SAP FI-AP records vendor invoices and payments against vendor accounts.
Accounts Receivable
The function that manages what customers owe the company.
SAP FI-AR records customer invoices, payments, and dunning.
Asset Accounting
The sub-ledger that manages fixed assets and their depreciation.
SAP FI-AA tracks acquisition, depreciation, and retirement of fixed assets.
Document Type
A two-character key that classifies an accounting document.
SAP FI document types such as KR (vendor invoice) control number ranges and allowed accounts.
Posting Key
A two-digit key that controls how a line item is posted.
SAP FI posting keys set debit or credit and the account type for each line.
Special G/L Indicator
A flag that posts items like down payments separately from normal items.
SAP FI uses special G/L indicators to show advances on alternative reconciliation accounts.
Document Splitting
A new G/L feature that splits postings by dimension such as profit center.
SAP new G/L document splitting produces balanced statements at segment level.
Open Item Management
Tracking individual items until they are cleared.
SAP FI marks vendor, customer, and some G/L accounts for open item management so items can be matched.
Clearing
Matching debit and credit items so they offset to zero.
SAP FI clearing links an invoice with its payment to mark both as settled.
Dunning
The process of reminding customers about overdue payments.
SAP FI dunning generates reminder letters based on dunning levels and overdue items.
Payment Terms
The agreed timing and discounts for settling an invoice.
SAP defaults payment terms from the master record to calculate due dates and cash discounts.
House Bank
A bank where the company holds accounts, defined in SAP.
SAP FI links house banks to the payment program for outgoing payments.
Tax Code
A key that determines the tax rate and accounts for a transaction.
SAP FI tax codes drive input and output VAT calculation and posting.
Withholding Tax
Tax deducted at source from a payment to a vendor.
SAP FI calculates and posts withholding tax on vendor payments where required.
Exchange Rate
The conversion factor between two currencies.
SAP stores exchange rates centrally for foreign-currency postings and valuation.
Leading Ledger
The primary ledger that applies group accounting principles.
SAP new G/L uses a leading ledger (often 0L) plus non-leading ledgers for local rules.
Field Status Group
Controls which fields are required, optional, or hidden when posting.
SAP FI field status groups govern data entry on G/L postings.
Recurring Entry
A template that posts the same document on a schedule.
SAP FI recurring entries automate repeated postings such as rent.
Accrual
Recognizing expense or revenue before the cash movement.
SAP FI accrual and deferral postings align costs and revenues to the correct period.
Foreign Currency Valuation
Revaluing open items and balances at period-end rates.
SAP FI foreign currency valuation posts unrealized gains and losses.
Universal Journal
The single S/4HANA table that merges FI and CO line items.
The SAP S/4HANA universal journal (table ACDOCA) unifies the general ledger, CO, and more.
Parked Document
A document saved for review before it is posted.
SAP FI parked documents let one user enter and another approve before posting.
Validation
A rule that checks postings against conditions and blocks errors.
SAP FI validations enforce business rules at document entry.
Substitution
A rule that automatically replaces field values during posting.
SAP FI substitutions derive or correct values such as profit center automatically.
Controlling
Internal management accounting for planning and monitoring costs.
SAP CO covers cost centers, internal orders, product costing, and profitability analysis.
Internal Order
A temporary cost collector for a specific job or event.
SAP CO internal orders gather costs for activities like a campaign, then settle them.
Profitability Analysis
Analyzing profit by market segments such as product or region.
SAP CO-PA reports contribution margins by characteristics like customer and product.
Product Costing
Calculating the cost to produce a material.
SAP CO product costing uses the BOM and routing to build a standard cost estimate.
Assessment
Allocating costs from senders to receivers using secondary cost elements.
SAP CO assessment cycles distribute overhead from cost centers to receivers.
Distribution (CO)
Allocating primary costs while keeping the original cost element.
SAP CO distribution reallocates costs such as rent across cost centers.
Settlement
Transferring collected costs from an order to a final receiver.
SAP CO settles internal or production orders to cost centers, assets, or CO-PA.
Overhead
Indirect costs applied to cost objects via rates.
SAP CO costing sheets apply overhead percentages to materials and orders.
Standard Cost Estimate
The planned cost of a product released as the standard price.
SAP CO marks and releases a standard cost estimate to value inventory.
Variance
The difference between planned and actual cost.
SAP CO calculates production variances such as price and quantity variances at period-end.
Work in Process
The value of unfinished production at period-end.
SAP CO calculates WIP for production orders not yet fully delivered.
Materials Management
The SAP area covering procurement and inventory.
SAP MM handles purchasing, goods movements, and invoice verification.
Procurement
The end-to-end process of acquiring goods and services.
SAP MM procure-to-pay spans requisition, purchase order, goods receipt, and invoice.
Purchase Requisition
An internal request to procure materials or services.
SAP MM purchase requisitions can be converted into purchase orders after release.
Purchase Order
A formal order to a vendor to supply goods or services.
The SAP MM purchase order drives goods receipt and invoice verification.
Outline Agreement
A longer-term purchasing arrangement such as a contract or scheduling agreement.
SAP MM outline agreements set terms that release orders draw against.
Goods Receipt
The posting that records receipt of goods into stock.
SAP MM goods receipt increases inventory and creates material and accounting documents.
Goods Issue
The posting that records goods leaving stock.
SAP MM goods issue reduces inventory for consumption, delivery, or scrapping.
Movement Type
A three-digit key that classifies a goods movement.
SAP MM movement types such as 101 control account determination and stock updates.
Inventory Management
Tracking stock quantities and values in real time.
SAP MM inventory management records every movement by material, plant, and storage location.
Invoice Verification
Checking vendor invoices against POs and goods receipts.
SAP MM logistics invoice verification performs three-way matching before posting to AP.
Moving Average Price
A material price that updates with each receipt.
SAP MM updates the moving average price automatically as goods arrive at varying costs.
Standard Price
A fixed material price used for valuation.
SAP MM values stock at standard price and posts differences to variance accounts.
Split Valuation
Valuing the same material differently by criteria such as origin.
SAP MM split valuation separates value by valuation type, for example in-house versus external.
Material Type
A grouping that controls how a material behaves.
SAP material types such as ROH (raw) and FERT (finished) drive views and accounts.
Valuation Class
A key that links materials to G/L accounts for postings.
SAP MM account determination uses the valuation class to find inventory and offset accounts.
Release Strategy
An approval workflow for requisitions and purchase orders.
SAP MM release strategies require sign-off based on value and other characteristics.
Consignment
Vendor-owned stock held at your site until it is used.
SAP MM consignment posts liability only when consignment stock is withdrawn.
Subcontracting
Sending components to a vendor who returns a finished item.
SAP MM subcontracting POs track components provided and the assembly received.
Batch
A quantity of material produced together and managed as a unit.
SAP batch management tracks attributes and shelf life for batch-managed materials.
Safety Stock
A buffer quantity kept to cover demand variability.
SAP MRP plans to keep stock above safety stock to avoid shortages.
Reorder Point
The stock level that triggers replenishment.
SAP reorder-point planning creates a procurement proposal when stock drops below the point.
Stock Transfer
Moving stock between plants or storage locations.
SAP MM stock transfers move inventory within or across plants with the right movement types.
Sales and Distribution
The SAP area covering selling, shipping, and billing.
SAP SD spans order-to-cash from inquiry through invoice.
Sales Order
A customer request to deliver goods or services at agreed terms.
The SAP SD sales order drives delivery, billing, and availability checks.
Inquiry
A customer request for information before ordering.
SAP SD inquiries capture interest and can become quotations.
Quotation
A binding offer of goods or services at stated terms.
SAP SD quotations can be copied into sales orders.
Delivery
The document that controls picking, packing, and goods issue.
SAP SD outbound deliveries trigger goods issue and update inventory.
Billing Document
The invoice or credit memo created from a delivery or order.
SAP SD billing posts revenue and receivables to FI.
Condition Type
A pricing element such as a price, discount, or tax.
SAP SD condition types combine in the pricing procedure to calculate net value.
Item Category
A control key that determines how an order line behaves.
SAP SD item categories decide whether a line is billed, delivered, or free of charge.
Schedule Line
The part of an order line that holds delivery dates and quantities.
SAP SD schedule lines drive availability checks and requirements.
Availability Check
Confirming whether stock can be delivered on the requested date.
SAP SD ATP checks stock and incoming supply to confirm delivery dates.
Credit Management
Controlling customer credit exposure during sales.
SAP blocks or warns on orders that exceed the customer credit limit.
Incoterms
Standard international terms defining delivery responsibilities.
SAP SD stores Incoterms on orders to govern freight and risk transfer.
Returns
Processing goods sent back by a customer.
SAP SD returns orders trigger return deliveries and credit memos.
Output Determination
Deciding which documents are issued and how.
SAP output determination uses condition records to print or send documents.
Partner Function
A role a business partner plays, such as sold-to or ship-to.
SAP SD partner functions separate who orders, pays, and receives goods.
Rebate
A discount paid to a customer based on sales volume over time.
SAP SD rebate agreements accrue and settle volume-based discounts.
Production Planning
The SAP area for planning and executing manufacturing.
SAP PP covers demand management, MRP, and production orders.
Material Requirements Planning
Calculating what to make or buy, how much, and when.
SAP MRP nets demand against stock and supply to create planned and purchase proposals.
Production Order
The document authorizing and tracking a manufacturing job.
SAP PP production orders collect costs and confirm operations in discrete manufacturing.
Planned Order
A preliminary procurement or production proposal from MRP.
SAP planned orders are converted to production orders or purchase requisitions.
Capacity Planning
Comparing required and available capacity at work centers.
SAP PP capacity planning levels load to avoid bottlenecks.
Backflush
Automatically issuing components when production is confirmed.
SAP PP backflushing posts component consumption at confirmation instead of manually.
Demand Management
Defining the planned independent requirements that drive MRP.
SAP PP demand management enters the production plan as PIRs.
Production Version
A valid combination of BOM and routing for making a material.
SAP PP production versions define which BOM and routing apply to a material.
Quality Management
The SAP area for inspections, defects, and quality control.
SAP QM integrates inspection lots into procurement, production, and sales.
Inspection Lot
A request to inspect a quantity of material.
SAP QM creates inspection lots at goods receipt or production for results recording.
Usage Decision
The accept or reject decision that closes an inspection lot.
SAP QM usage decisions move stock to unrestricted, blocked, or returns.
Plant Maintenance
The SAP area for maintaining technical assets.
SAP PM manages notifications, work orders, and preventive maintenance.
Maintenance Order
The document that plans and tracks a maintenance job.
SAP PM maintenance orders collect labor, materials, and costs for repairs.
Functional Location
A place in a plant where a technical task is performed.
SAP PM functional locations structure assets hierarchically.
Equipment
An individual physical asset tracked for maintenance.
SAP PM equipment master records hold history and technical data.
Warehouse Management
The SAP area for managing stock at bin level.
SAP WM and EWM control putaway, picking, and transfers within a warehouse.
Storage Bin
The smallest location where stock is stored in a warehouse.
SAP WM tracks quantities down to the storage bin.
Transfer Order
The document that directs warehouse stock movements.
SAP WM transfer orders execute putaway and picking instructions.
Project System
The SAP area for planning and controlling projects.
SAP PS structures projects with WBS elements and networks.
WBS Element
A node in the work breakdown structure that collects budget and cost.
SAP PS WBS elements organize a project hierarchically for costing and reporting.
Network (PS)
The activities and dependencies that schedule a project.
SAP PS networks model project tasks, durations, and relationships.
Human Capital Management
The SAP area for managing employees and HR processes.
SAP HCM covers personnel administration, payroll, and time management.
Infotype
A structured record that stores a category of employee data.
SAP HCM infotypes such as 0008 (basic pay) hold time-dependent HR data.
Organizational Management
Modeling the company structure of units, positions, and jobs.
SAP HCM organizational management maps reporting lines and staffing.
Payroll
Calculating employee pay, deductions, and taxes.
SAP HCM payroll uses wage types to produce results and postings to FI.
Personnel Number
The unique identifier of an employee in HCM.
SAP HCM keys all employee data by personnel number.
ABAP
The programming language used to build and extend SAP.
SAP applications and custom developments are written in ABAP.
SAP GUI
The classic desktop client for accessing SAP systems.
Users enter transaction codes in the SAP GUI command field to run functions.
SAP Fiori
The modern, role-based web user experience for SAP.
SAP Fiori apps replace many classic transactions with responsive tiles in the launchpad.
S/4HANA
SAP next-generation ERP built on the HANA database.
SAP S/4HANA simplifies the data model and adds real-time analytics and Fiori.
SAP HANA
SAP in-memory database and application platform.
SAP HANA stores data in memory and columns for fast processing and analytics.
SAP ECC
The previous-generation SAP ERP, part of the Business Suite.
Many organizations are migrating from SAP ECC to S/4HANA.
Transport Request
A package of configuration or code changes moved between systems.
SAP transports carry changes from development through QA to production.
Transport Management System
The tool that controls moving transports across the landscape.
SAP TMS manages import queues and transport routes between systems.
Instance
A running SAP application server or system.
An SAP instance provides the work processes that serve users.
Work Process
A server task that executes user requests such as dialog or batch.
SAP dispatches requests to dialog, update, background, and other work processes.
Data Dictionary
The central repository of table, view, and type definitions.
The SAP ABAP Dictionary (DDIC) defines database objects used across programs.
Transparent Table
A database table that maps one-to-one to a physical table.
Most SAP application data lives in transparent tables you can read with SE16.
Data Element
A dictionary object defining the meaning and labels of a field.
SAP fields reference data elements for type, length, and documentation.
Domain
A dictionary object defining the technical attributes and value range of a field.
SAP data elements are based on domains that set type and allowed values.
Internal Table
A runtime table that holds rows in memory during program execution.
ABAP programs read database data into internal tables to process it.
BAPI
A standardized SAP method for external systems to access business objects.
SAP BAPIs such as BAPI_SALESORDER_CREATEFROMDAT2 let other systems create documents.
BAdI
An enhancement point to add custom logic without modifying SAP code.
SAP BAdIs let partners and customers extend standard processes cleanly.
User Exit
An older enhancement point for adding custom code to SAP programs.
SAP user exits predate BAdIs and are still found in classic modules.
IDoc
A standard SAP document format for exchanging data between systems.
SAP IDocs carry orders, invoices, and master data via EDI and ALE.
ALE
The SAP technology for distributing data between systems.
SAP ALE uses IDocs and message types to keep distributed systems in sync.
RFC
A protocol for calling functions in another SAP or external system.
SAP RFC enables system-to-system communication and underpins many integrations.
OData
A web protocol SAP uses to expose data to apps and the web.
SAP Fiori apps consume OData services to read and write business data.
CDS View
A modern SAP data model defined in code for analytics and apps.
SAP Core Data Services views push logic to HANA and power Fiori and embedded analytics.
ALV
The SAP reusable grid for displaying and manipulating lists.
SAP ALV reports let users sort, filter, and export tabular output.
Smart Forms
A graphical SAP tool for designing print and PDF forms.
SAP Smart Forms generate output such as order confirmations without heavy coding.
SAPscript
The classic SAP tool for designing printed forms.
SAP SAPscript forms produce documents like invoices, often replaced by Smart Forms or Adobe Forms.
Adobe Forms
SAP interactive and print forms based on Adobe technology.
SAP Adobe Forms create high-fidelity PDF output and interactive forms.
Batch Input
A method to load data by simulating user transactions.
SAP batch input sessions post legacy data through standard screens.
Background Job
A task scheduled to run without user interaction.
SAP background jobs run reports and interfaces on a schedule via the batch system.
Spool
The SAP storage for output waiting to print or be viewed.
SAP spool requests hold report and form output for printing or download.
Lock Object
A mechanism that prevents simultaneous conflicting changes.
SAP enqueue locks stop two users from editing the same record at once.
Role
A collection of authorizations assigned to users.
SAP roles built in PFCG grant menu access and authorizations.
Transaction Code
A short code that starts a specific SAP function or screen.
SAP transaction codes such as VA01 jump directly to a task.
Function Module
A reusable, callable block of ABAP logic with a defined interface.
SAP function modules are grouped in function groups and can be remote-enabled as RFCs.
Enhancement
A way to add custom behavior to standard SAP without modification.
SAP enhancement framework includes BAdIs, exits, and implicit enhancement points.
Customizing
Configuring SAP to fit business processes via the IMG.
SAP customizing in transaction SPRO sets up org structures, document types, and rules.
Implementation Guide
The guided tree of all SAP configuration activities.
The SAP IMG (transaction SPRO) organizes customizing by area.
Selection Screen
The input screen where users enter report parameters.
SAP reports present a selection screen to filter data before running.
Short Dump
A runtime error log produced when an ABAP program fails.
SAP short dumps are analyzed in transaction ST22 to diagnose program errors.
Where-Used List
A tool that finds where an object is referenced.
SAP developers use the where-used list to assess the impact of a change.
Business Technology Platform
SAP platform for extensions, integration, data, and AI.
SAP BTP hosts side-by-side apps, integration, and analytics around the core.
Fiori Launchpad
The single entry point that shows a user role-based app tiles.
SAP Fiori launchpad aggregates apps and KPIs for each user role.
Material Ledger
The SAP tool for actual costing and multi-currency valuation.
SAP material ledger is mandatory in S/4HANA and supports actual costing.
SAP Business Warehouse
SAP data warehousing and reporting platform.
SAP BW consolidates data from many sources for enterprise reporting.
Greenfield Implementation
A fresh S/4HANA build that redesigns processes from scratch.
A greenfield SAP project starts clean rather than carrying over old configuration.
Brownfield Conversion
A technical conversion of an existing system to S/4HANA.
A brownfield SAP migration keeps history and configuration while upgrading.
SAP Activate
SAP standard methodology for implementing S/4HANA.
SAP Activate guides projects through prepare, explore, realize, and deploy phases.
Central Finance
An S/4HANA deployment that consolidates postings from multiple systems.
SAP Central Finance replicates financial documents into one S/4HANA ledger.
Month-End Closing
The periodic process of finalizing the accounting period.
SAP month-end closing runs valuations, allocations, and reconciliations before locking the period.
Year-End Closing
The annual process of closing the books and carrying balances forward.
SAP year-end closing carries forward balances and opens the new fiscal year.
Account Determination
Configuration that finds the right G/L accounts automatically.
SAP account determination derives inventory, revenue, and tax accounts during postings.
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