Preface – This post is part of the SAP Ariba series.

Introduction

Ariba Network is a digital platform where buyers and suppliers connect for business transactions and to explore new business opportunities. Integration of Ariba Network with S/4 HANA on-premise and cloud follows two different methodologies. In this article we will explore more about SAP Ariba Integration with S/4 Hana.

Types of Integration

On-premise Integration

On-premise S/4 HANA integration follows the same connectivity method which is followed for ECC system connectivity (by using BAPI or Intermediate Document).

Cloud Integration

For cloud integration of S/4 HANA with SAP Ariba the communication arrangement is set up in Communication Management of HANA system. Services like oData and SOAP must be configured in communication arrangements of the S/4 HANA system.

The integration with SAP S/4 HANA cloud allows process:

• Discount Management
• Invoice Collaboration
• Payment
• Purchase Order Collaboration
• Service Procurement

Ways to connect SAP S/4 HANA with SAP Ariba system

There are three ways to connect SAP S/4 HANA with SAP Ariba system:

• Direct Connectivity: Ariba provides direct connectivity option under account settings. The Direct Connectivity method does not use any middleware for the integration of the SAP Ariba Network system and HANA.
• Mediated connectivity using HCL: For the integration using HCL. a system connection is established between Ariba Network and S/4 HANA using SAP HANA Cloud Integration
• Mediate connectivity using PI: For the integration using PI, middleware is used to establish a connection between SAP Ariba and SAP S/4 HANA.

Advantages

By digitalizing and integrating the end-to-end process, promotes the organization to achieve some objectives. The benefits are:

• Lower total cost of ownership: You can avoid third party integration, maintenance and also the middle-ware cost.
• Rapid ROI: An organization can achieve a fast return of investment compared to capital invested.
• Quick and smooth deployment: SAP Ariba native, pre-built integration provides easy deployment with fewer risks.
• Compliance: The ease to use of software’s increases the service quality provided by users which results in higher compliance.
• Efficiency: The use of a standard interface across all the applications will eventually result in higher efficiency by adapting the changes quickly and resulting in fewer errors.
• Effectiveness: The integration produces optimized data providing transparent and complete visibility, stronger collaboration and reliable KPI.