Understanding SAP Simplification Manuals (2023)—Spotlight on SAP MM

As SAP continues its innovation journey with each new release of S/4HANA, the Simplification Manual remains a vital compass for customers and consultants navigating system upgrades and transformation projects.

The SAP Simplification Manual for 2023 outlines all the technical and functional changes introduced in the latest release, helping businesses understand the impact on their current landscape. For consultants like us, it’s not just a reference—it’s our blueprint for driving clean core strategies and ensuring upgrade readiness.

In this article, I’m focusing on some of the key Simplification Items in SAP Materials Management (MM) that are relevant for clients planning upgrades or greenfield implementations.

What is the SAP Simplification Manual?

The Simplification Manual is SAP’s comprehensive guide that details

• Functional deprecations
• Obsolete transactions and replaced functionality
• Innovations and mandatory changes
• Business impact and adaptation strategies

For each simplification item, it explains the technical impact and business impact and provides SAP Notes and adaptation steps.

Key SAP MM Simplification Items in 2023

Here are some noteworthy simplification items related to MM:

1. Material Ledger Activation is Mandatory

• Item ID: S4CORE-424
• Impact: Material Ledger (ML) is now mandatory in S/4HANA for actual costing and inventory valuation.
• Adaptation: Businesses still using standard costing must review their costing approach. All inventory-relevant materials will now be valuated using ML.

2. Vendor Master and Customer Master Merge (BP Concept)

• Item ID: CA-master data (Business Partner Approach)
• Impact: The classical vendor master (XK01/XK02/XK03) is deprecated. Business Partner (BP) is now the single point of entry for master data.
• Adaptation: All MM processes need to work with BP. Synchronization between BP and vendor roles is critical.

3. Removal of Inventory Transactions—MB Transactions Deprecated

• Item ID: MM-IM Simplifications
• Impact: Transactions like MB01, MB1A, MB1B, MB1C, etc., are replaced with MIGO and Fiori apps.
• Adaptation: User training and custom developments using old MB* TCodes need to be remediated.

4. GR/IR Clearing Enhancements

• Item ID: FI-GL Improvements
• Impact: Enhanced handling of GR/IR accounts with better transparency and reconciliation capabilities.
• Adaptation: Custom logic around GR/IR must be reviewed; Fiori apps are recommended for improved visibility.

5. Purchase Info Record and Source List Management in Fiori

• Item ID: MM-PUR
• Impact: Info Record and Source List management has shifted to Fiori apps with new fields and improved integration.
• Adaptation: Ensure alignment of custom reports and roles with the new apps.

6. Quota Arrangement Replaced by Fiori-Based Source Assignment

• Item ID: MM-PUR Simplifications
• Impact: Classic Quota Arrangement functionality is now supported through a simplified Fiori interface.
• Adaptation: Evaluate if you can move to the new model for streamlined source determination.

How to Use the Simplification Manual Effectively

• Access it via the SAP Launchpad using the Simplification Item Catalog
• Filter by Module (e.g., MM) and Release (e.g., 2023)
• Analyze the impact based on your current version (e.g., from 1709 to 2023)
• Download and study the associated SAP Notes for each item

Final Thoughts

If you’re planning an S/4HANA upgrade or a greenfield implementation, reviewing the Simplification Manual should be your first step. For MM consultants and business stakeholders, these changes are not just technical—they influence procurement strategy, costing, inventory management, and reporting.

Let’s embrace simplification as a chance to clean up legacy configurations, streamline business processes, and future-proof our SAP environments.

If you’re working on a migration or need help interpreting the simplification items specific to your landscape, feel free to connect. Let’s decode it together.

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