How to Set Up SAP NetWeaver BW to Extract Data from Third-Party Add-Ons

  • by Gaurav Singhal, Business Intelligence Consultant
  • February 21, 2013
SAP ERP Central Component does not adequately handle certain specialized applications, such as a company’s incentive and rebate programs. Third-party add-ons are available for these special purposes for added fees, which can process data internally in SAP NetWeaver BW. Learn how SAP supports such applications.
Key Concept

Most third-party add-ons use a logistics (LO) extraction mechanism to extract data from the add-on into SAP NetWeaver BW. You can execute an LO extraction using transaction LBWE, which is a standard extraction mechanism used across all supported SAP modules.

SAP ERP Central Component (ECC) does not provide in-built functionality to handle certain specialist applications — for example, a company’s sales incentives, rebates, and bill-back and charge-back claims processing operations. Customizing such specialist apps is complex and expensive.

However, third party add-ons are available for handling special scenarios in different modules, which take care of the complexities in a simple manner. A company can integrate these solutions with SAP ECC and then extract data using a standard logistics (LO) extraction mechanism in SAP NetWeaver BW.

Here’s a scenario to consider: A wholesale distributor struggles to track earned revenue and reimbursements from manufacturers. Much of the distributor’s operating income comes from back-end supplier rebates and chargeback-claims-based cost recoveries, which forces them to develop their own pricing and incentive programs.

In this case, third-party solutions can provide a distributor with the tools to effectively track and analyze purchasing agreements and incentives in conjunction with contract pricing, sales rebates, and sales commission programs, all of which ensure adequate buy- and sell-side margins.

These third-party apps process data outside the SAP system, but the data generated by the add-ons can be extracted to SAP NetWeaver BW via the DataSources provided by the add-ons.

Gaurav Singhal

Gaurav Singhal is a business intelligence consultant with seven years of industry experience. He works for a large consulting firm and provides his expertise in SAP NetWeaver BW, SAP BI-BW integration, and SAP HANA to industry implementations. In addition, he has also presented on advanced BI topics at international conferences, including SAP TechEd.

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