SAP S/4HANA is the enterprise backbone for thousands of large organisations worldwide. Its accounts receivable module is powerful but complex — designed for finance professionals, not for creating the kind of frictionless client payment experience that modern B2B buyers expect. TallyArc adds a client-facing billing layer that integrates with SAP's AR, ensuring finance teams maintain their familiar SAP workflows while clients interact with a clean, branded payment experience.
Integration architecture
TallyArc connects to SAP S/4HANA via the SAP Business Technology Platform (BTP) APIs, specifically the SAP S/4HANA Cloud APIs for:
- Business Partner API — sync customer master data
- Customer Invoice API — create and update AR invoices
- Accounts Receivable API — post payment clearing documents
Authentication
SAP S/4HANA Cloud uses OAuth 2.0 for API access. To set this up:
- In your SAP BTP cockpit, create a service instance of the SAP S/4HANA Cloud Extensibility service
- Create a service binding and note the OAuth client credentials (client ID and secret, token URL)
- Assign the service instance to a communication system and communication arrangement covering Customer Invoice Management
- In TallyArc, go to ERP → SAP S/4HANA → Connect
- Enter your client ID, client secret, token URL, and the SAP API base URL
For on-premise SAP S/4HANA (not cloud), the connection uses basic authentication against the SAP NetWeaver Gateway; contact your SAP Basis team to enable the required OData services.
GL and company code mapping
SAP's hierarchical structure requires careful mapping:
- Company code — map each TallyArc company to an SAP company code
- Sales organisation — configure the sales organisation and distribution channel for invoice creation
- GL accounts — map TallyArc revenue categories to SAP GL accounts (typically via account determination in VKOA)
- Profit centre — optionally assign profit centres for segment reporting
What the integration covers
- Customer records sync from SAP Business Partner to TallyArc (one-way by default)
- Invoices created in TallyArc generate SAP billing documents in the SD module
- Payments received in TallyArc post as clearing documents in SAP's open item management
- Credit memos in TallyArc create corresponding SAP credit memo requests
Testing in SAP Sandbox
Always test the integration in your SAP sandbox environment before connecting to production. Use SAP's test customer accounts and verify that invoice documents post to the correct company code and GL accounts before enabling live sync.