---
document_type: "SAP Product Overview"
product: "SAP S/4HANA Cloud Public Edition"
version: "2602"
fsd_version: "2.0 (2026-03-12)"
purpose: "Master knowledge base for consultants — product overview, packaging, licensing, release highlights, roadmap, and industry references"
sources:
  - "Cloud ERP FSD_CE2602.pdf (Feature Scope Description v2.0)"
  - "2602_SAP_Cloud_ERP_Release_Highlights.pdf"
  - "Business_Suite_Product_Briefing_Book.pdf"
  - "SAP_Business_Suite_Licensing_11-2025.pdf"
  - "SAP-Road-Map-Explorer-20260121143641.xlsx (Current–Latest filter)"
  - "Business_Suite_Deck_for_Automotive.pptx"
---

# SAP S/4HANA Cloud Public Edition 2602 — Product Overview

---

## 1. Product Positioning

SAP S/4HANA Cloud Public Edition is SAP's **next-generation SaaS ERP** — a fully managed, multi-tenant cloud application built natively on the SAP HANA in-memory platform. It is the core of the **SAP Business Suite**, delivering integrated enterprise management across Finance, Procurement, Supply Chain, Manufacturing, Sales, Service, HR, and more.

**Key differentiators:**
- Built entirely on SAP HANA — single source of truth, real-time processing, embedded analytics
- SAP Fiori UX — role-based, responsive, consistent across all business processes
- Software-as-a-Service (SaaS) — SAP manages infrastructure, upgrades, and security
- Pre-configured best practices (scope items) — accelerated implementation via Fit-to-Standard methodology
- AI-embedded — Joule AI copilot, AI agents, and predictive analytics embedded in business processes
- Clean core principle — extensibility via BTP without modifying core, protecting upgrade continuity
- Connected to SAP Business Network (Ariba, Fieldglass, Concur) and SAP BTP ecosystem

**FSD Reference:** Document Version 2.0 – 2026-03-12 | 322 pages | 672 scope items across 13 LOBs

---

## 2. Architecture & Technology Platform

### 2.1 System Landscape

SAP S/4HANA Cloud Public Edition operates on a **3-system landscape**:

| System | Purpose |
|--------|---------|
| Development (D) | Configuration, extensibility, custom development on BTP |
| Quality / Test (Q) | Testing, key user testing, data refresh from Production |
| Production (P) | Live business operations |

- **Test Data Refresh**: Production data can be copied to Q system (personal data depersonalized) — enables realistic testing
- Some features require the 3-system landscape (noted in FSD per feature)

### 2.2 Technical Foundation

| Component | Details |
|-----------|---------|
| Database | SAP HANA (in-memory, columnar) |
| UX Framework | SAP Fiori (Launchpad + Apps) |
| Integration | SAP Integration Suite (iFlows, APIs), SAP Business Data Cloud |
| Extensibility | SAP BTP — Side-by-side and in-app via Cloud BAdIs, key user tools |
| AI Platform | SAP Business AI — Joule copilot, AI agents, predictive analytics (PAi) |
| Analytics | Embedded analytics, SAP Analytics Cloud integration, Analysis Path Framework |
| Identity | SAP Identity Authentication Service (IAS), SAP Identity Provisioning |
| Security | ISO 27001 certified data centers, end-to-end encryption, SOC 2 compliance |

### 2.3 Application Platform Features (FSD Section 3.2)

- **Identity and Access Management**: Business roles, business catalogs, restriction types, authorization trace, custom catalog extensions
- **Output Management**: Forms, print, email output via SAP Forms by Adobe
- **Document Management**: DMS integration, attachments, versioning
- **Process Management**: Workflow, SAP Signavio integration, process intelligence
- **Data Management**: Data migration (LTMC), data integration, staging tables (2602)
- **Master Data Maintenance**: Central master data governance, notes for master data (2602 new)
- **Extensibility**: Key user in-app extensibility, Cloud BAdIs, partner/customer extensions via BTP
- **Integration**: Pre-built iFlows, Open APIs (REST/OData), EDI, event-driven integration
- **APIs**: SAP API Business Hub — published OData and REST APIs for all business objects

---

## 3. SAP Business Suite — Packaging & Licensing

### 3.1 Deployment Journeys

SAP offers two entry paths to SAP Business Suite:

| Journey | Target Customer | Description |
|---------|----------------|-------------|
| **RISE with SAP** | Existing SAP ERP customers | Managed transformation — includes tools (SAP Signavio, LeanIX, WalkMe), Enterprise Architect service, clean core adherence |
| **GROW with SAP** | New SAP ERP customers | Start fresh — pre-packaged, pre-integrated modules with simple per-user pricing, SaaS Suite Expansion Benefit |

Both journeys lead to the same destination: SAP Business Suite on SAP S/4HANA Cloud Public Edition.

### 3.2 Suite Packages (Module Bundles)

SAP Business Suite is organized in **nested package tiers** — higher packages include all lower-tier capabilities:

#### Finance Packages

| Package | Target Buyer | Core Capabilities |
|---------|-------------|-------------------|
| **Finance Base** | CFO | Core financial accounting (GL, AP, AR, Asset Accounting), financial close, management reporting, basic treasury |
| **Finance Premium** | CFO | All Finance Base + advanced treasury, contract accounting, advanced financial operations, GRC for Finance |

#### Supply Chain / Operations Packages

| Package | Target Buyer | Core Capabilities |
|---------|-------------|-------------------|
| **SCM Base** | COO / CPO | Core procurement (PO, GR, invoice), inventory management, basic production, quality management |
| **SCM Premium** | COO | All SCM Base + advanced manufacturing, warehouse management, advanced ATP, demand-driven replenishment |
| **Operational** | COO | Extended operations — project management, professional services, plant maintenance, field service |

#### User Type SKUs

| User Type | Description |
|-----------|-------------|
| **Self-Service** | Employee self-service — time recording, leave requests, expense reports, simple procurement (shopping cart) |
| **Developer** | BTP extensibility access — custom app development, integration configuration |
| **Combo Base** | Bundled Finance Base + SCM Base for mid-market full-suite deployment |

**Pricing model**: Per-user-per-month subscription (SaaS), with SaaS Suite Expansion Benefit providing structured discounts as the customer's SAP footprint grows.

**Buying centers**: CFO (Finance), CPO (Procurement), COO (Operations/Manufacturing/Supply Chain), CHRO (HR), CRO (Sales/Revenue), CIO (Platform/Integration)

### 3.3 Licensing Notes (v1.3, January 2026)

- Certain features require **separate subscription licenses** (noted in FSD)
- Integration with non-SAP products may require additional licenses
- Contact SAP Account Executive for country-specific availability and pricing
- SAP does not publicly disclose list prices in standard documentation

---

## 4. Release Cycle

SAP S/4HANA Cloud Public Edition follows a **semi-annual major release cycle**:

| Release | Period | Status |
|---------|--------|--------|
| 2408 | August 2024 | Generally Available |
| 2502 | February 2025 | Generally Available |
| **2602** | **February 2026** | **Current (as of Q1 2026)** |
| 2608 | August 2026 | Planned |

- Major releases include new scope items, LOB feature enhancements, localization expansions, AI innovations
- Minor patch releases (e.g., 2602.1) address corrections; FSD v2.0 covers 2602.1 (2026-03-12)
- **Clean core upgrades**: SAP manages all upgrades automatically — customers do not control upgrade timing
- Customers receive advance notification of changes; regression testing recommended in Q system

---

## 5. Version 2602 Highlights by Business Area

### 5.1 Finance

- **Accounting Accruals AI Agent** — automated accrual entries using AI, reducing month-end manual work
- New collections & dispute automation (Accounts Receivable) — AI-driven collections management
- Automated return handling and disbursement reference reconciliation (AR)
- Allowing dynamic discount credit memo document type determination (SAP Taulia integration)
- Cloud BAdI for purchasing info records (AP/Procurement boundary)
- Payment formats and bank statements for convergent accounting (Czech Republic localization)
- New finance scope items for Qatar (service entry sheet–based accruals)
- Budget execution: 5 new delivered items including enhanced public sector management for new countries
- Grants management expanded to additional country localizations

### 5.2 Manufacturing

- **AI-assisted production routing proposal** — AI recommends routing based on BOM/material, copy routing support
- Enablement of manufacturing scope items for Argentina (public cloud expansion)
- New scope items for manufacturing: make-to-stock production with variants (Egypt)
- Production order combination enablement (planned Q1 2026)
- Quality inspection: incoming quality certificate process for materials with warehouse management

### 5.3 Supply Chain

- Warehouse automation interface improvements
- Supply protection indicator in Display Product Availability app (ATP)
- Demand-driven replenishment expansion to additional countries
- Extended Warehouse Management (EWM) scope items for Argentina
- BAdI for ATP confirmation acceptance rule (planned Q1 2026)
- Adjusting scheduling per customer calendar (planned Q3 2026)
- Inventory analytics and control expanded to Argentina

### 5.4 Sourcing & Procurement

- **Conversational search for central procurement documents** — Joule AI integration (planned Q1 2026)
- Central sourcing: notes in Manage Purchasing Info Records app
- SAP Master Data Governance integration for material searches in contracts (planned Q1 2026)
- Collective purchase order processing expanded to additional countries (retail)
- New purchase order scenarios for advanced procurement (planned roadmap)

### 5.5 Sales

- BAdI for customer-specific checks in preliminary billing documents
- Enabling graduated scales in condition contracts (Royalties Settlement)
- Optimized billing solution
- AI-assisted project services with Joule for real-time insights (planned Q1 2026)
- Collaborative draft for project billing requests (planned)

### 5.6 Platform & Master Data

- Staging tables as intermediate storage for "Migration Cockpit" data migration approach
- Notes for master data processes (both Master Data Maintenance and Master Data Management)
- AI-assisted error resolution for data integration (planned Q1 2026)
- Enabling direct app launch using app ID or transaction code in Business Application Entry Point

### 5.7 Analytics & Compliance

- Embedded analytics for VAT adjustment (Document and Reporting Compliance)
- New Fiori app for Brazil Electronic Fiscal Documents job scheduling
- Integrating convergent accounting into DRC VAT reporting (Czech Republic)
- Joule AI in central governance for master data quality assurance (planned Q1 2026)

---

## 6. LOB Capability Overview (FSD Structure)

The FSD describes 672 scope items organized into the following Lines of Business. Each LOB contains multiple business areas with detailed feature descriptions.

### 6.1 Application Platform & Infrastructure (FSD 3.2)
Cross-cutting platform capabilities: IAM, extensibility, integration, APIs, output management, process management, data management, master data maintenance, UX (Fiori Launchpad), virtual data model (CDS Views), analytics framework.

### 6.2 Finance (FSD 3.9) — 268 scope items
Sub-areas: Management Accounting & Margin Analysis, Accounting & Financial Close, Advanced Accounting & Financial Close, Treasury Management, Advanced Treasury Management, Financial Operations, Advanced Financial Operations, Contract Accounting & Invoicing, Governance/Risk/Compliance for Finance, Carbon Accounting integration.

Key capabilities: Universal Journal (single accounting ledger), real-time profitability analysis, group reporting and consolidation, cash & liquidity management, electronic bank statement processing, document splitting, parallel accounting, intercompany reconciliation.

### 6.3 Human Resources (FSD 3.10) — ~30 scope items
Sub-areas: Core HR and Time Recording, Integration with External HR Systems.

Key capabilities: Employee master data, organizational management, time recording, absence management, integration with SAP SuccessFactors for full HCM.

### 6.4 Manufacturing (FSD 3.11) — ~80 scope items
Sub-areas: Production Engineering (BOM, routing), Production Planning (MRP, demand management), Production Operations (shop floor, discrete/process/repetitive), Quality Management, Environment/Health & Safety.

Key capabilities: Make-to-stock / make-to-order, process orders, production orders, kanban, serialization, batch management, quality inspection lots, SPC/control charts, EHS incident management.

### 6.5 Professional Services (FSD 3.12) — ~20 scope items
Sub-areas: Customer Project Management, Integration with External Resource Management.

Key capabilities: Project-based billing, resource management, time & expense, revenue recognition (event-based and percentage-of-completion).

### 6.6 R&D / Engineering (FSD 3.13) — ~40 scope items
Sub-areas: Enterprise Portfolio & Project Management, Product Lifecycle Management (PLM), Advanced PLM, Product Compliance, Circular Economy.

Key capabilities: Engineering change management, document management, classification, variant configuration, product compliance for regulated industries, material flow analysis.

### 6.7 Sales (FSD 3.14) — ~60 scope items
Sub-areas: Order & Contract Management, Solution Business Management.

Key capabilities: Standard/rush/scheduling agreement orders, quotations, pricing & conditions, credit management, ATP (availability-to-promise), billing/invoicing, rebates, returns management, customer hierarchy.

### 6.8 Service (FSD 3.15) — ~25 scope items
Sub-areas: Service Master Data & Agreement Management, Service Operations & Processes, Customer Service & Support, Workforce Management.

Key capabilities: Service orders, service contracts, field service dispatch, service requests (CRM-lite), warranty management, spare parts management.

### 6.9 Sourcing & Procurement (FSD 3.16) — ~70 scope items
Sub-areas: Procurement Analytics, Sourcing & Contract Management, Operational Procurement, Invoice Management, Supplier Management, Central Procurement, External Procurement System Integration, OCR Integration.

Key capabilities: Purchase requisition (self-service + professional), RFQ/RFP, purchase orders, goods receipt, invoice verification (3-way match), supplier evaluation, central procurement hub, SAP Ariba integration.

### 6.10 Supply Chain (FSD 3.17) — ~50 scope items
Sub-areas: Order Promising (ATP/aATP), Inventory, Logistics Cross Topics, Warehousing (EWM/WM), Delivery & Transportation.

Key capabilities: Advanced ATP with rules-based availability, inventory management, physical inventory, goods movements, extended warehouse management (EWM), transportation management (basic), demand-driven replenishment (DDMRP).

### 6.11 Asset Management (FSD 3.8) — ~30 scope items
Sub-areas: Maintenance Management, Resource Scheduling, Mobile Asset Management.

Key capabilities: Preventive/corrective maintenance, equipment/functional location master data, maintenance orders, work order management, mobile maintenance via SAP Asset Manager.

### 6.12 Analytics (FSD 3.7)
Sub-areas: Analytical Tool, Query Design, Analysis Path Framework, Predictive Analytics Integrator (PAi).

Key capabilities: Embedded Fiori analytics, ad-hoc query via SAP Analytics Cloud integration, predictive models (PAi), smart insights.

### 6.13 Industries (FSD 3.18)
Specific industry capabilities available within the standard cloud:
- **Public Sector**: Grants management, fund accounting, budget execution, public sector procurement
- **Banking**: Financial services-specific accounting
- **Insurance**: Insurance contract accounting
- **Oil & Gas**: Joint venture accounting, production/revenue accounting
- **Retail**: Merchandise management, assortment planning, replenishment, POS integration
- **Consumer Products**: Trade promotion management, demand-driven replenishment

### 6.14 Security (FSD Chapter 4)
- ISO 27001 certified data centers
- End-to-end TLS encryption
- SOC 2 Type II compliance
- Data Protection (GDPR): personal data management, deletion, masking, consent management
- Audit logging, authorization trace, read access logging

---

## 7. Product Roadmap (2602 → 2608)

*Source: SAP Road Map Explorer, filter: SAP S/4HANA Cloud Public Edition, Current–Latest, exported 2026-01-21*

The roadmap covers 930 road map items. Below are the most strategically significant planned capabilities per LOB.

### Finance Roadmap
- Bank Statement Preprocessing: Enrichment with additional data (Q1 2026)
- Business partner certificate handling — cross-country standardization (Q1 2026)
- New localization scope items: Qatar (service entry sheet accruals), Ukraine (VAT reporting)
- Budget execution enhancements (6 planned items for public sector)
- Customer-specific routing parameters for payment card processes (Q1 2026)

### Manufacturing Roadmap
- Production order combination (Q1 2026)
- New manufacturing scope items for Egypt (make-to-stock with variants)
- AI integration for additional manufacturing sub-processes (Joule)

### Supply Chain Roadmap
- BAdI for ATP confirmation acceptance rule (Q1 2026)
- Adjusting scheduling per customer calendar (Q3 2026)
- Retail merchandise management with SAP Business Data Cloud data products (Q1 2026)

### Procurement Roadmap
- Conversational search for central procurement documents — Joule AI (Q1 2026)
- SAP MDG integration for material searches in purchase contracts (Q1 2026)
- Partial goods receipts in document flow of purchase requisitions (Q1 2026)
- Display of approver names within PR approval workflows (Q1 2026)

### Sales Roadmap
- AI-assisted project services with Joule real-time insights (Q1 2026)
- Collaborative draft for project billing requests (planned)
- Event-based revenue recognition data processing upgrades (planned)

### Platform & Data Roadmap
- AI-assisted error resolution for data migration/integration (Q1 2026)
- Application Security: Business role design with IAM Apps (Q1 2026)
- Joule AI in Master Data Governance for central governance (Q1 2026)
- Federation with S/4HANA Cloud PE as application hub in MDG (planned)
- Application-agnostic legal business-partner hierarchy (planned)

### Analytics Roadmap
- Italy VAT registers (Q1 2026)
- Ukraine local version VAT reporting (Q1 2026)
- Electronically supported company audit (euBP) for social insurance data (planned)

---

## 8. AI Capabilities — Joule & Business AI

SAP Business AI is embedded throughout SAP S/4HANA Cloud Public Edition 2602:

| AI Feature | Business Area | Status |
|-----------|--------------|--------|
| Accounting Accruals AI Agent | Finance / Accounting | Delivered 2602 |
| AI-assisted production routing proposal | Manufacturing | Delivered 2602 |
| AI-assisted error resolution (data migration) | Platform / Data Integration | Planned Q1 2026 |
| Joule for central procurement documents (conversational search) | Procurement | Planned Q1 2026 |
| Joule for project services (real-time insights) | Sales / Professional Services | Planned Q1 2026 |
| Joule in Master Data Governance | Master Data / Quality | Planned Q1 2026 |
| Predictive Analytics integrator (PAi) | Cross-LOB analytics | Available |
| Intelligent Support Services | Platform | Available |
| Digital Assistance (in-app help) | Cross-LOB | Available |

**SAP Business AI positioning**: Systems of AI agents embedded in SAP applications, powered by business context data from SAP HANA, enabling cross-function collaboration and AI-driven decisions. Integrates with SAP Business Data Cloud for unified semantic data layer.

---

## 9. Implementation Methodology

### 9.1 SAP Activate Methodology
SAP S/4HANA Cloud Public Edition is implemented using **SAP Activate**, which includes:
- **Fit-to-Standard workshops**: L1 (business capability) → L2 (scope item) requirements mapping
- Best practice content preloaded in the system (scope items auto-activated based on selection)
- Guided configuration via Self-Service Configuration UI (SSCUI) — no traditional Customizing tables
- Accelerated data migration via SAP LTMC (Legacy Transfer Migration Cockpit)

### 9.2 Clean Core Principles
- **No core modifications** — all customer-specific logic via BTP extensions (Cloud BAdIs, side-by-side apps)
- Extensions use SAP-published APIs (OData/REST) from SAP API Business Hub
- Extensibility types: Key user (no-code), Developer (BTP ABAP environment), Partner integration

### 9.3 Scope Item Activation
- 672 scope items available in 2602
- Scope items grouped into Bundles (LOB-level groupings)
- Each scope item has: Required scope items (dependencies), required master data, provisioning type (Included / Add-On / Industry)
- Cross-domain scope items (130 items appear in multiple LOBs) — shared foundational processes

---

## 10. Industry Reference — Automotive

*Source: Business_Suite_Deck_for_Automotive.pptx*

### 10.1 Automotive Industry Challenges
- Supply chain disruption visibility and management
- Drivetrain technology transition (ICE → EV → hybrid) impacting portfolio strategy
- Cost efficiency in low-volume vehicle programs
- Electrification cost-effectiveness for parts/production
- Changing customer demands and delivery performance
- Sustainable operations and carbon footprint reduction

### 10.2 SAP Strategic Priorities for Automotive

| Priority | Business Focus |
|----------|---------------|
| Enhance Customer Centricity | Omnichannel commerce, sales & service experience, customer engagement |
| Build Supply Chain Resilience | Demand forecasting, inventory optimization, supply chain orchestration |
| Drive Sustainable Performance | Carbon footprint management (SAP Sustainability Footprint Management), circular economy |
| Optimize Data Strategy | Industrial Insights for Automotive, operational efficiency, data-driven decisions |

### 10.3 Key Automotive Business Functions (Value Chain)
- **R&D & PLM**: Portfolio planning, product development, variant configuration & pricing, product compliance
- **Sourcing & Procurement**: Strategic sourcing, contract management, supply chain orchestration, operational procurement, invoicing
- **Manufacturing**: Production control, smart manufacturing, shop floor management
- **Sales & Outbound Logistics**: Sales order management, delivery, billing
- **Sustainability**: Carbon accounting integrated with ERP, SAP Sustainability Footprint Management (>50x faster than manual calculations)

### 10.4 Automotive Coverage
- OEMs (Automotive)
- Suppliers (Automotive / Tier 1, 2, 3)
- Dealers
- Service Centers
- Battery Manufacturers and Suppliers
- Rental and Leasing

### 10.5 SAP Automotive Customer Evidence
- **Martur Fompak** (automotive seating): >50x faster carbon footprint calculations, 34% decrease in carbon emissions per automotive seat, 52% reduction in transportation-related carbon emissions using SAP Sustainability Footprint Management + SAP Business AI

---

## 11. Key Reference Links

| Resource | URL / Location |
|----------|---------------|
| FSD (Feature Scope Description) | https://help.sap.com/s4hanacloud |
| SAP Road Map Explorer | https://roadmaps.sap.com/board?PRODUCT=4DD4E3F7E34E1EEE90E764D92BB906EF |
| SAP Best Practices Explorer | https://rapid.sap.com/bp/ |
| SAP API Business Hub | https://api.sap.com |
| SAP Help Portal — S/4HANA Cloud | https://help.sap.com/docs/SAP_S4HANA_CLOUD |
| SAP Activate Methodology | Available in SAP Activate Roadmap Viewer |

---

## 12. Consultant Quick Reference

### Scope Item Count by LOB (2602)

| LOB | Scope Items | Provisioning |
|-----|------------|-------------|
| Finance | 268 | Mix: Included + Add-On |
| Sourcing & Procurement | ~70 | Mix |
| Manufacturing | ~80 | Mix |
| Sales | ~60 | Mix |
| Supply Chain | ~50 | Mix |
| Asset Management | ~30 | Mix |
| R&D / Engineering | ~40 | Mix |
| Professional Services | ~20 | Add-On / Industry |
| Service | ~25 | Mix |
| Human Resources | ~30 | Mix |
| Industries (Public Sector, Banking, etc.) | ~20 | Industry-specific |
| **Total** | **672** | |

### Common Consulting Questions

**Q: What is the difference between RISE with SAP and GROW with SAP?**
RISE = transformation path for existing SAP customers (S/4HANA On-Prem → Cloud migration), includes Signavio/LeanIX tools and Enterprise Architect service. GROW = fresh start for new SAP customers, simpler per-user pricing, pre-packaged and pre-integrated.

**Q: Can customers modify standard SAP processes?**
Only via clean core extensibility: in-app (key user tools, Cloud BAdIs) or side-by-side on BTP. No direct ABAP modifications to core application code.

**Q: How are upgrades handled?**
SAP manages all upgrades automatically (SaaS model). Customers test in Q system before each major release. Upgrade timing is not customer-controlled.

**Q: What master data is required for basic Finance?**
Company code, chart of accounts, fiscal year variant, posting period variant, G/L accounts, cost centers, profit centers, business partners (customer/vendor).

**Q: How does the 3-tier architecture affect implementation?**
Development = SSCUI configuration + BTP extensions. Q = integration testing, UAT, data migration rehearsal. P = go-live. Transport from D → Q → P is mandatory for configuration changes.
