Sap-srm Ref Manual

(1)

SUPPLIER RELATIONSHIP MANAGEMENT

SAP Supplier Relationship Management

Product Information

Product SAP Supplier Relationship Management

Release 7.0

SAP Enhancement Package

3, SP 02 for SAP SRM 7.0

Based On SAP enhancement package 4 for SAP NetWeaver 7.0 Support Package Stack 06

BI Content Release BI Content 7.47 Documentation Published November, 2013

Use

SAP Supplier Relationship Management (SAP SRM) provides you with innovative methods to coordinate your business processes with your key suppliers and make them more effective. SAP SRM enables you to optimize your procurement strategy, to work more effectively with your supplier pool, and thus to gain long-term benefits from all your supplier relationships.

With SAP SRM you can examine and forecast purchasing behavior, shorten procurement cycles, and work with your partners in real time. This allows you to develop long-term relationships with all those suppliers that have proven themselves to be reliable partners.

The efficient processes in SAP SRM enable you to cut down your procurement expenses and to work more intensively with more suppliers than ever before.

SAP SRM is part of SAP Business Suite.

The SAP SRM documentation offers a comprehensive description of the functional scope of SAP SRM, and highlights the relationship between the application and the underlying technologies.

More Information

 For more information about SAP NetWeaver, see the SAP NetWeaver Getting Started Guide at

http://help.sap.com SAP NetWeaver SAP NetWeaver Library Getting Started- Using SAP

Software

 For more information about the implementation of an SAP SRM solution and associated business scenarios, see the SAP SRM Master Guide ( http://service.sap.com/srm-inst SAP SRM

Server 7.13 )

(2)

1. Business Scenarios

Purpose

SAP Supplier Relationship Management (SAP SRM) offers the following business scenarios:

· Self-Service Procurement · Plan-Driven Procurement · Service Procurement · Strategic Sourcing

· Operational Contract Management · Supplier Qualification

· Catalog Content Management · Analytics

1.1 Self-Service Procurement

1.1.1 Self-Service Procurement -- Classic

Your employees can use this business scenario to create and manage their own requisitions. This relieves your purchasing department of a huge administrative burden while making the procurement process faster and more responsive.

In this scenario, only the shopping cart is created in the SAP Supplier Relationship Management (SAP SRM) system. All other procurement documents, such as purchase orders, goods receipts, and invoices, are located in the back-end system.

This business scenario is modified if you have activated the SRM, PI-Independent Enterprise Services (SRM_WSRM_1) business function. This business function allows you to run the entire scenario without the need for the SAP NetWeaver Portal.

Prerequisites

You can implement this business scenario with different releases of the relevant application components. However, only certain combinations are valid. For more information, see:

· SAP SRM Master Guide on SAP Service Marketplace at service.sap.com/instguides

· Scenario & Process Component List on SAP Service Marketplace at service.sap.com/scl

Process

The business processes run as follows: 1. Processing Shopping Carts

(3)

3. Processing Purchase Orders in ERP

4. Inbound Processing and Receipt Confirmation with Warehouse Management

5. Verifying Logistics Invoices Online/In Background

6. Analyzing Self-Service Procurement

1.1.1.1 Processing Shopping Carts

You can use this business process to create a shopping cart and add items to it. For recurring orders, you can also use previous shopping carts and templates provided by the purchasing department. Account assignment is then checked in the back-end system. You can order the shopping cart now or later, and check the status of the shopping cart at any time. If the shopping cart contains incomplete data, you can run a completion workflow to check and complete the necessary delivery data. Once the delivery data is complete, the approval workflow starts.

You can also assign responsibility for requirements from a shopping cart to a different purchasing group. You can do this manually or automatically. You might want to do this, for example, if the person who was originally responsible is absent, or if changes have been made to the purchasing group structure.

Note

You can create a shopping cart using the Shopping Cart Wizard or the one-screen shopping cart with limited functionality.

Process

1.1.1.2 Processing Purchase Requisition in ERP

Prerequisite

The manual creation or processing of purchase requisitions can be achieved in two ways: using the relevant backend transactions, or using the SPPR (Single Processing of Purchase Requisition) Web Dynpro application.

You can only use the Web Dynpro application, if you have activated the Materials Management - Enhancements in

Procurement (LOG_MM_CI_3) business function.

Purpose

You can use this business process to process purchase requisitions in ERP. A purchase requisition is a demand that is released to the purchasing department. The demand can be created as follows:

● Automatically, for example as result of a material requirement planning (MRP) run, or by assigning components or services to a maintenance or production order

● Alternatively, the purchase requisition may be:

 ○ Entered manually

 ○ Transferred from another system, for example from a shopping cart that has been approved:

(4)

 ■ From Supply Network Planning (SNP) or Production Planning and Detailed Scheduling (PP/DS) of a Supply Chain Management (SCM) module

The accounting data is assigned and checked during processing of the purchase requisition. Sourcing, including initiating a request for quotation (RFQ) process, can be executed based on a purchase requisition as well as assignment of documents.

It is possible to establish approval processes for purchase requisitions. For purchase requisitions with long life cycles, a change management differs between several versions.

Process Flow

The following business process runs in SAP ERP:

1. Create/process purchase requisitions 2. Release purchase requisitions

3. Assign source to purchase requisitions

4. Generate/manage versions of purchase requisitions 5. Monitor/view list display of purchase requisitions

The manual creation or processing of purchase requisitions can be achieved in two ways: using the relevant backend transactions, or using the SPPR (Single Processing of Purchase Requisition) Web Dynpro application.

1.1.1.3 Processing Purchase Orders in ERP

Purpose

You can use this business process to process purchase orders. The purchase order processing is part of the (operational) procurement of materials and services. Its primary purpose is to convert demands (purchase

requisitions, shopping carts) to purchase orders (with or without reference to a contract) or delivery schedules for a scheduling agreement and to monitor the fulfillment of these documents.

Typical process steps for converting a demand to a purchase order are:

1. Assign/check a source of supply

The source of supply defines the supplier or another plant that will deliver the requested item. If a source of supply is unknown, search for a possible source of supply, for example using a request for quotation (RFQ)with comparison of the incoming quotations. If multiple suppliers are assigned to the procurement process, you can arrange quotas and administrate them using the source list. The conversion process can also be fully automated if you have maintained all necessary master data.

2. Determine price and conditions

Negotiate with a supplier, if necessary. 3. Check description of the demand

Change description of the demand, if necessary, for example by creating attachments, adding long texts, drawings, and so forth.

(5)

5. Define incoterms and delivery instructions 6. Check release process for purchasing documents 7. Manage the versions of the purchasing documents

8. Monitor message output of the purchasing documents to the supplier

The required process steps for creating one concrete purchase order may vary, depending on the following factors:

· Category of the procured products:

 ○ Products selected from a vendor’s catalog are clearly specified.

 ¡ Products procured once without material master are roughly defined. A description in long texts may be useful in this case.

Procuring office supplies requires different process steps than procuring direct materials or services, for example, services for valuation or inventory management.

· Process variants:

 A subcontracting process needs additional steps compared to a standard contract-based procurement process.

· Industry-specific variants

In retail companies, assortments are maintained and replenishment planning is typically integrated into Purchase Order processing. The Goods Receipt Capacity Check is especially relevant for retail companies. With this check, the buyer is informed while creating the purchase order if the capacity at the warehouse is not sufficient for that particular date for the amount of merchandise on the goods receipt. In automotive companies, special message handling of delivery schedules for scheduling agreements is known.

Prerequisites

You can only use the industry-specific variants if you have activated the Goods Receipt Capacity Check function. To do this, you must have activated both the Retail, Buying (ISR_RETAIL_BUYING) business function, and theMaterials Management (LOG_MM_CI_1) business function.

The activation of the LOG_MM_CI_1 business function is a prerequisite for the activation of the

ISR_RETAIL_BUYING business function. If both business functions are activated, the relevant customizing activities will be visible.

Process Flow

The business process runs in SAP ERP as follows:

1. Create or process purchase orders 2. Release purchasing documents 3. Find a new source of supply 4. Compare quotations

5. Generate or mmanage versions of purchase orders 6. Monitor output of messages

(6)

7. Monitor or view list display of purchase orders

1.1.1.4 Inbound Processing and Receipt

Confirmation with WM

Purpose

You can use this business process for your inbound processing and receipt confirmation in conjunction with Warehouse Management (WM). Whenever a company requires a product to be procured from an external source of supply, whether for use in production (raw materials) or for direct consumption (C-materials), the product will be delivered according to the official procurement document (a PO) agreed between two business partners. The arrival of the goods could be announced by a message of the supplier (ASN). It will be delivered in a certain quantity at a defined date and time at a defined company location. For the delivered product an inbound delivery is selected and processed for putaway. Once the goods are taken into stock, a goods receipt must be posted.

The actual physical receipt of materials at the warehouse or the receiving locations can be controlled on different levels of detail. From controlling the process on a document level only using purchase orders and stock transports orders to inbound deliveries and shipments and even to the pallet and material level, the receiving process is supported in different ways. Depending on specific customer needs, it is optional to use inbound deliveries and advanced material flow and process control capabilities.

Inbound processing and goods receipts are key steps in any procurement or replenishment process. It is not industry-specific, but common practice for any company procuring products, whether for production of its own or direct consumption.

Inbound processing reflects the receipt of materials that are delivered to a receiving location. This receipt can be processed based on purchase orders, stock transport orders, or even a returns order. It includes the notification of goods to be received, the putaway, goods receipt posting, and the proof-of-delivery message to the supplier. By viewing the goods receipt from two perspectives, it is possible to follow the purchase order process and the physical material movements separately.

The processes described are good receipt against a purchase order (MIGO) using Warehouse Management and inbound processing using the inbound delivery, the ASN message and the POD of the customer. The good receipt posting can be processed prior to or after putaway of the materials. Both possibilities are described as alternatives in the business process procedure:

· Goods Receipt for Purchase Order

· Goods Receipt Posting for Inbound Delivery after Putaway

If Handling Unit Management is used for packing, you must use in inbound delivery to pack against. An inbound delivery is also required if the warehouse is implemented in a decentralized environment (BAPI connection between Warehouse Management and the ERP System).

(7)

Process Flow

1. Receive advanced shipping notification (ASN) (SAP ECC)

The arrival of goods procured and received is announced by a message of the supplier to the goods recipient. This message is called Advanced Shipping Notification (ASN) and it contains logistically relevant data, such as date and time of delivery, material, quantities, and packing information. The ASN is typically sent by the shipper of the goods. This can be the supplier (external or internal) or a third-party logistics service provider (3PL). The message is received by the ship-to-party and mapped into an inbound delivery in the SAP R/3 system.

Alternatively, an inbound delivery can be created by the receiving party to reflect the planning and coordination of the inbound delivery processing.

2. Create inbound delivery (optional) (SAP ECC)

When the actual shipment arrives, the inbound delivery is selected and processed for putaway. The putaway can be processed with or without Warehouse Management (see process Inbound Processing and Receipt Confirmation).

(8)

When a required product is delivered to a company from an external source of supply according to a purchase order, it must be integrated into the company’s stock and a goods receipt must be posted.

With this process description, you can also execute a goods receipt with reference to a production order. When a goods receipt is effected, the system supports:

 ¡ Message determination

Depending on the settings in Customizing, the system initiates the printing of a material document and labels, for example for pallets or packages.

 ¡ Missing parts check

For example, if a given product is identified as a missing part in production, the MRP controller is automatically informed by mail that a goods receipt for this critical product has been posted.

 ¡ Purchase order history

The system updates the purchase order history, so that the purchasing department can monitor that the goods receipt to the PO has been posted and may check delivery date, time, and quantity. This information may also be relevant for Vendor Evaluation.

 ¡ Final delivery indicator

If information about final delivery is desired, the system sets the final delivery indicator to inform the purchasing department that the last partial delivery has been effected.

 ¡ Material valuation

A goods receipt posting triggers an update of stock balance and stock value. After a goods receipt, the system creates a material document serving as proof of the goods movement and an accounting document to initiate the update of the relevant G/L accounts. From goods receipt you can display the material document and from there the accounting document. When the product is valuated with moving average price, the material price is updated according to the price in the most recent PO.

 ¡ SAP APO update

If you work with SAP APO, the new SAP R/3 stock balance data updates the SAP APO stocks, relevant for planning.

 ¡ SAP BW update

If you work with SAP Business Warehouse, new SAP R/3 stock balance data updates user-defined figures in SAP BW, relevant for reporting.

Depending on special procurement processes (identified by specific PO item categories), the consequences of posting a goods receipt are the following:

 ¡ Consignment

The goods receipt is posted, but material valuation is not affected, because the supplier still is the material owner.

 ¡ Subcontracting

The goods receipt is posted and effects the withdrawal of material components from special stock, necessary for the subcontractor to assemble the final product.

For this business process, we will assume that all steps are carried out manually. Many of these steps can be processed in the background for more efficient processing, but it is important to understand which steps are required within the entire process before you can automate it. The Goods Receipt Posting can be processed before or after putaway of the materials.

Following the Goods Receipt posting for an external purchase order, materials are located in the warehouse in an interim storage type of 902.

(9)

If Cross-Docking functionality is desired, see Cross Docking.

For further information on Warehouse Management, see Warehousing and Storage. 4. Create WM transfer order (SAP ECC)

The transfer order is required to move the materials to their final storage destination. It consists of items that contain the quantity of the material to move and specifies the source and destination storage bins. The transfer order logic finds an appropriate bin for storage based on configuration settings in the warehouse customizing. The transfer order will list the source (902) location as well as the destination location for the materials. 5. Confirm WM transfer order (SAP ECC)

The transfer order must be confirmed for inbound delivery items using the Warehouse Management System (WMS). Upon confirmation of the transfer order, the materials are available at their final destination. If the placement logic is used, it searches for the Next Empty Bin, progressing through the storage type search sequence as configured to find the next available place appropriate to store this material.

6. Send proof of delivery (POD) (SAP ECC)

To report the actual received quantities, times, and dates of delivery back to the supplier for invoicing, the message Proof-of-Delivery (POD) is sent.

7. Track and evaluate procurement process with SCEM (optional) (SAP SCM)

Optionally, the process Inbound Processing/Receipt Confirmation can be monitored with the help of SAP EM. Since the visibility process Procurement describes the procurement process for production materials, it spreads Purchase Order Processing as well as Inbound Processing and Invoice Verification. A detailed description on the visibility steps as well as the configuration can be found in Procurement Visibility.

Procurement visibility covers

 ¡ Events from purchase requisition to payment, including order acknowledgement, shipping notifications, goods receipt, and invoice functions

 ¡ Triggering of follow-up activities

 ¡ Analyzing the business process in the SAP Business Information Warehouse (SAP BW) The application process step relevant for this is: Monitor the fulfillment of purchase orders.

All relevant intermediate steps are reported by the buyer (or supplier) so that you get a complete picture of the application process:

 ¡ Order acknowledgement

 ¡ Advanced shipping notification

 ¡ Goods receipt

 ¡ ERS/invoice

 ¡ Payment

Furthermore, some unexpected events may be posted:

 ¡ Shipment delayed

 ¡ Quantity change

 ¡ Delivery quantity change

 ¡ Due date change

 ¡ Delivery date change

(10)

1.1.1.5 Verifying Logistics Invoices (Online/In

Background)

Purpose

You can use this business process to verify incoming invoices in terms of their content, prices, and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management (MM) and Financial Accounting (FI). If you use the prepayment functions, the first FI document is created when the invoice is saved in the system.

An invoice can be processed in Logistics invoice verification in online modus or in the background.

● Invoice Verification online

You enter the contained information of an invoice into the system, comparing the data (such as quantities and values) suggested by the system with those in the invoice. You make necessary corrections and post the invoice.

· Document parking (online only)

You receive an invoice. You enter the data in the system and save the invoice. The system does not yet create an FI document. You can change the parked document. When you have finished changing the document, you post the parked document.

· Invoice Verification in the background

You receive an invoice, enter the total amount of the invoice and match the invoice with another system document. The system then checks the invoice in the background. If no errors occur, the system also saves the invoice in the background. If errors occur, the system saves the invoice and you process it in a separate step. The business process Verifying Logistics Invoice Online can be enhanced in terms of invoice validation,

verification, and exception handling by the solution SAP Invoice Management by Open Text.

Companies must process supplier invoices in a timely, accurate, and efficient manner to have a well-run business. The SAP Invoice Management application by Open Text helps you manage and control invoice processing, meet critical payment and compliance deadlines, and avoid risks resulting from inaccurate business information.

SAP Invoice Management helps accounts payable personnel and suppliers to optimize the creation, management, monitoring, and routing of purchase orders and invoices. You can use SAP Invoice Management to improve the timeliness of payments, optimize productivity and cash flow, and limit fiscal and noncompliance risks.

SAP Invoice Management is integrated with SAP ERP and the SAP NetWeaver technology platform, allowing you to streamline accounts payable operations across and beyond the enterprise.

The integration available using SAP Invoice Management ensures the visibility of purchase orders, invoices, and payments. It also provides you with a central view of invoices instead of the disparate solutions you are left with without such integration.

For more information, see SAP Service Marketplace at http://service.sap.com/instguides

(11)

You can post invoices with reference to purchase orders or to goods receipts. You can post invoices without reference to a purchase order as well.

You can also create invoices with reference to contracts, if you have activated the Materials Management - Enhancements in Procurement (LOG_MM_CI_3) business function.

The following cases are supported:

· Invoices received via EDI or XML

You can process invoices via Electronic Data Interchange (EDI) or eXtensible Markup Language (XML). An invoice reaches you via EDI, and SAP ERP posts the invoice automatically.

● Prepayment (only relevant for background processing)

If you decide to prepay invoices for special vendors and company codes, the process is slightly different. You receive an invoice (as a hardcopy, via EDI, or via XML) that is verified in the background. As soon as the invoice is saved, an FI document is created. This posts an open item in the vendor account. The posting is not dependent on matching or verifying the invoice. Verification can be carried out at a later date. If errors occur, you might have to delete the invoice and create a credit memo.

Process Flow

The following business process runs in SAP ERP

1. Park invoice (online only)

2. Create or process invoices online or in background 3. Release invoice

4. System triggers prepayment in background (in the background only) 5. Cancel invoice

6. Transmit invoice

7. View list display of invoices 8. Perform revaluation

1.1.1.6 Analyzing Self-Service Procurement

You can use this business process to analyze the various aspects of self-service procurement. SAP Supplier Relationship Management (SAP SRM) delivers a number of reports focusing on this area, which can be published immediately, or used as a starting point for the creation of customer-designed reports. The user can monitor self-service procurement throughout the entire procurement process, and focus on analyzing shopping carts from different users and organizational areas.

(12)

The following business process runs in SAP Business Intelligence (SAP BI): 1. System collects data

2. View reports 3. Work with reports

(13)

The following business process runs in SAP SRM Server: 1. Create shopping cart

2. Search for products or services

You can select products and services (for example, external staffing) from catalogs, or enter a description or a product ID from the product master.

3. Select items and add to shopping cart 4. Display overview

For example, you can display item details and add documents to the shopping cart. 5. Display account assignment

6. Order shopping cart 7. Check shopping cart status 8. Approve shopping cart

(14)

This process step is modified if you have activated the SRM, Approval Process (SRM_APF_IMPR_1) business function. You can use this business function to accelerate your approval processes, and use them more efficiently when you use the process-controlled workflow.

(15)

1.1.2 Self-Service Procurement -- Extended

Classic

Your employees can use this business scenario to create and manage their own requisitions. This relieves your purchasing department of a huge administrative burden, while making the procurement process faster and more responsive.

In this scenario, shopping carts and purchase orders are created in the SAP Supplier Relationship Management (SAP SRM) system and are then replicated to the back-end system. The purchase order in SAP SRM is the leading purchase order. It cannot be changed in the back-end system. Goods receipts and invoices can be pre-entered in SAP SRM or entered directly in the back-end system. Sourcing, pricing, and tax determination take place in SAP SRM.

Prerequisites

You can implement this business scenario with different releases of the relevant application components. However, only certain combinations are valid. For more information, see:

 SAP SRM Master Guide on SAP Service Marketplace at service.sap.com/instguides

 Scenario & Process Component List on SAP Service Marketplace at service.sap.com/scl

Process

The business processes run as follows: 1. Processing Shopping Carts

2. Searching for Sources of Supply Centrally

3. Processing Purchase Orders in SAP SRM

4. Inbound Processing and Receipt Confirmation without Warehouse Management

5. Confirming Receipt of Inbound Goods in SAP SRM

6. Processing Invoices in SAP SRM

7. Verifying Logistics Invoices (Online/In Background)

8. Analyzing Self-Service Procurement

1.1.2.1 Processing Shopping Carts

You can use this business process to create a shopping cart and add items to it. For recurring orders, you can also use previous shopping carts and templates provided by the purchasing department. Account assignment is then checked in the back-end system. You can order the shopping cart now or later, and check the status of the shopping cart at any time. If the shopping cart contains incomplete data, you can run a completion workflow to check and complete the necessary delivery data. Once the delivery data is complete, the approval workflow starts.

You can also assign responsibility for requirements from a shopping cart to a different purchasing group. You can do this manually or automatically. You might want to do this, for example, if the person who was originally responsible is absent, or if changes have been made to the purchasing group structure.

(16)

Note

You can create a shopping cart using the Shopping Cart Wizard or the one-screen shopping cart with limited functionality.

Process

The following business process runs in SAP SRM Server: 1. Create shopping cart

2. Search for products or services

You can select products and services (for example, external staffing) from catalogs, or enter a description or a product ID from the product master.

3. Select items and add to shopping cart 4. Display overview

(17)

5. Display account assignment 6. Order shopping cart

7. Check shopping cart status 8. Approve shopping cart

This process step is modified if you have activated the SRM, Approval Process (SRM_APF_IMPR_1) business function. You can use this business function to accelerate your approval processes, and use them more efficiently when you use the process-controlled workflow.

1.1.2.2 Searching for Sources of Supply

Centrally

You can use this business process to process your requirements and to improve your source of supply by evaluating the ability of your suppliers to provide materials and services. To prioritize the requirements, you can define and display priority for your requirements in the Sourcing application accordingly. Once a requirement has been created, you can assign requirements to different purchasing groups manually or automatically. This enables you to react to temporary absences among persons responsible for requirements, or organizational changes to the structure of your purchasing groups.

You can assign the sources of supply proposed by the system to items automatically (for example, if there is a single contract for the item being procured) or manually in the case of a quota arrangement, contract, or supplier from a supplier list. You can also assign a source of supply from catalogs that you access in Sourcing.

You can then create an RFx or an auction in the SAP Bidding Engine. In the case of an RFx, you can publish it immediately, or group multiple requirements together for publishing later.

You can also disable the automatic assignment of a source of supply in requirements during sourcing. This enables you to add your preferred supplier as a source of supply in the requirement. The system displays a list of possible sources of supply — defined either locally or in the back-end system — for the products or user-defined texts you add to the requirement. When adding an item from a catalog, however, the system finds a unique source of supply for that item, and assigns the source of supply for the item automatically. If you deactivate the automatic source of supply, you can define your own supplier in the requirement. If no preferred supplier or source of supply is assigned, the system creates an incomplete purchase order locally, or an incomplete purchase requisition in the back-end system, depending on the deployment scenario implemented.

It is also possible to define the threshold for background processing in the Sourcing application so that requirements with a number of items exceeding the threshold will be processed in background mode. To do this, you must activate the Customizing switch Advanced Background Processing

Features (SRM_701_BACKGROUND_PROC), and define the threshold value in a dialog box. Once the value

defined under Number of Items is reached in the application, background processing is started immediately and the dialog box is not displayed to the purchaser.

(18)

This business process is modified if you have activated the SRM Service Procurement Innovations (SRM_SERVICE_PROC_1) business function. It brings additional features, such as enabling of info lines in contracts, central contract as default in the Sourcing application, and enabling of contracts with service hierarchies as source of supply in the Sourcing application.

Process

The following business process runs in SAP SRM Server: 1. Group related purchase requisitions and shopping cart items

(19)

2. Start sourcing application

3. Search for appropriate source of supply 4. Assign contract

This process step is modified if you have activated the SRM Service Procurement Innovations (SRM_SERVICE_PROC_1) business function. In this case, you can also assign contracts with service hierarchies as sources of supply.

5. Assign supplier

6. Create RFx from sourcing application 7. Create auction from sourcing application 8. Process workload reassignment

9. Create purchase order from sourcing application

This process step is modified if you have activated the SRM Service Procurement Innovations (SRM_SERVICE_PROC_1) business function. In this case, you can create SAP ERP purchase orders in statuses park and hold in the Classic scenario. The hold function allows you to temporarily save data — for example, line item information — in purchasing documents, and resume editing at a later time. The park function requires that a document be checked by SAP ERP Materials Management (MM) in order for it to be saved temporarily.

10. Create contract from sourcing application

This process step is modified if you have activated the SRM Service Procurement Innovations

(SRM_SERVICE_PROC_1) business function. In this case, the SAP SRM central contract is the default contract. Otherwise, the SAP ERP contract is defaulted. If you want to modify the default settings, and create a contract directly in SAP ERP, you must implement the BAdI BBP_DETERMINE_LOGSYS.

1.1.2.3 Processing Purchase Orders in SAP SRM

You use this business process to process purchase orders.

In the Self-Service Procurement Extended Classic and Service Procurement External Staffing business

scenarios, when a shopping cart has been approved the system creates one or more purchase orders. If the purchase order is not complete, you must specify a supplier. You can do this either manually or by searching for a source of supply.

In the Plan-Driven Procurement with Plant Maintenance business scenario, purchase requisitions are created either from material requirements planning (MRP) systems for production planning, project systems (PS) for project planning, or plant maintenance (PM) systems for maintenance and repair planning. Purchase requisitions are transferred to SAP SRM, and you can search for a source of supply centrally.

If the purchase order is complete, you send it to the supplier, who enters it and issues a purchase order response.

As a purchaser, you can redistribute your workload (that is, you can change the purchasing group assignments).

(20)

Process

The following business process runs in SAP SRM Server: 1. Select source of supply

2. Create or update purchase order 3. Process workload reassignment 4. Approve purchase order

This process step is modified if you have activated the SRM, Approval Process (SRM_APF_IMPR_1) business function. You can use this business function to accelerate your approval processes and use them more efficiently when you use the process-controlled workflow.

5. Send purchase order to supplier 6. Create purchase order response

(21)

1.1.2.4 Inbound Processing and Receipt

Confirmation Without WM

Purpose

You can use this business process for your inbound processing and receipt confirmation. Whenever a company requires a product to be procured from an external source of supply, whether for use in production (raw materials) or for direct consumption (C-materials), the product will be delivered according to the official procurement document (a PO) agreed between two business partners. The arrival of the goods could be announced by an advanced shipping notification (ASN) from the supplier. This states that the goods are to be delivered in a certain quantity at a defined date and time at a defined company location. For the delivered product, an inbound delivery is selected and processed for putaway. Once the goods are taken into stock, a goods receipt must be posted.

The actual physical receipt of materials at the warehouse or the receiving locations can be controlled in different levels of detail. For example, you can control the process only at a document level using purchase orders and stock transports orders for inbound deliveries and shipments, or you can go up to the pallet and material level.

The receiving process is supported in different ways depending on your needs. Optionally, you can use inbound deliveries, advanced material flow, and process control functions. These options include yard management, and warehouse management with task and resource management controlling the process down to pallet and package level using advanced strategies (see also Inbound Processing and Receipt Confirmation with WM). Inbound processing and goods receipts are key steps in any procurement or replenishment process. They are industry-specific, but common practice for any company procuring products, whether for production of its own goods or direct consumption.

Inbound processing reflects the receipt of materials that are delivered to a receiving location. This receipt can be processed based on purchase orders, stock transport orders, or even a returns order. It includes the notification of goods to be received, the putaway, goods receipt posting, and the proof-of-delivery (POD) message to the supplier. By viewing the goods receipt from two perspectives, it is possible to follow the purchase order process and the physical material movements separately.

The processes described are goods receipt against a purchase order (in good movement transaction MIGO) without using Warehouse Management and inbound processing using the inbound delivery, the ASN message and the POD of the customer.

The goods receipt posting can be processed prior to or after putaway of the materials.

If Handling Unit Management is used for packing, you need to use an inbound delivery to pack against. An inbound delivery is also required if the warehouse is implemented in a decentralized environment.

(22)

Process Flow

1. Receive advanced shipping notification (ASN) (SAP ECC)

The arrival of goods procured and received is announced by an advanced shipping notification (ASN) from the supplier to the goods recipient. The ASN contains logistically relevant data, such as date and time of delivery, material, quantities, and packing information. The ASN is typically sent by the shipper of the goods. This can be the supplier (external or internal) or a third-party logistics service provider (3PL). The message is received by the ship-to-party and mapped into an inbound delivery in SAP ECC.

Alternatively, an inbound delivery can be created by the receiving party to reflect the planning and coordination of the inbound delivery processing.

2. Create inbound delivery (SAP ECC) (optional)

When the actual shipment arrives, the inbound delivery is selected and processed for putaway. The putaway can be processed with or without Warehouse Management (see Inbound Processing and Receipt Confirmation with WM).

3. Post goods receipt (SAP ECC)

When a required product is delivered to a company from an external source of supply according to a purchase order, it must be integrated into the company’s stock and a goods receipt must be posted.

With this process description, you can also execute a goods receipt with reference to a production order. When a goods receipt is effected, the system supports:

 ○ Message determination

Depending on the settings in Customizing, the system initiates the printing of a material document and labels, for example, for pallets or packages.

(23)

 ¡ Missing parts check

For example, if a given product is identified as a missing part in production, the MRP controller is automatically informed by e-mail that a goods receipt for this critical product has been posted.

 ¡ Purchase order history

The system updates the purchase order history, so that the purchasing department can monitor that the goods receipt to the PO has been posted and check delivery date, time, and quantity. This information may also be relevant for vendor evaluation.

 ¡ Final delivery indicator

If information about final delivery is desired, the system sets the final delivery indicator to inform the purchasing department that the last partial delivery has been effected.

 ¡ Material valuation

A goods receipt posting triggers an update of stock balance and stock value. After a goods receipt is posted, the system creates a material document serving as proof of the goods movement and an accounting

document to initiate the update of the relevant G/L accounts. From the goods receipt you can display the material document and then the accounting document. When the product is valuated with moving average price, the material price is updated according to the price in the most recent PO.

 ¡ SAP SCM update

If you work with the Advanced Planner and Optimizer, the new SAP ECC stock balance data updates the SAP SCM stocks, relevant for planning.

 ¡ SAP Business Information Warehouse update

If you work with SAP Business Information Warehouse, new SAP ECC stock balance data updates user-defined figures in SAP BW that are relevant for reporting.

Depending on special procurement processes (identified by specific PO item categories), the consequences of posting a goods receipt are the following:

 ¡ Consignment

The goods receipt is posted, but material valuation is not affected, because the supplier is still the material owner.

 ¡ Subcontracting

The goods receipt is posted and affects the withdrawal of material components from special stock, which is necessary for the subcontractor to assemble the final product.

4. Send proof of delivery (POD) (SAP ECC)

To report the actual received quantities, times, and dates of delivery to the supplier for invoicing, the POD is sent.

5. Track and evaluate procurement process with SCEM (optional) (SAP SCM)

Optionally, the Inbound Processing/Receipt Confirmation process can be monitored with the help of SAP EM. Since the visibility process procurement describes the procurement process for production materials, it includes the purchase order processing process as well as inbound processing and invoice verification. A detailed description of the visibility steps as well as the configuration can be found in Procurement Visibility. Procurement visibility covers:

 ¡ Events from purchase requisition to payment, including order acknowledgement, shipping notifications, goods receipt, and invoice functions

 ¡ Triggering of follow-up activities

(24)

All relevant intermediate steps are reported by the buyer (or supplier) so that you get a complete picture of the application process:

 ¡ Order acknowledgement

 ¡ Advanced shipping notification

 ¡ Goods receipt

 ¡ Evaluated receipt settlement (ERS)/invoice

 ¡ Payment

Furthermore, some unexpected events may be posted:

 ¡ Shipment delayed

 ¡ Quantity change

 ¡ Delivery quantity change

 ¡ Due date change

 ¡ Delivery date change

 ¡ Deletion indicator set

1.1.2.5 Confirming Receipt of Inbound Goods in

SAP SRM

You can use this business process to confirm the receipt of goods. In SAP SRM, purchasers can create confirmations themselves, even if the purchase order is in the back-end system. It is possible to create express confirmations directly in the Check Status application without having to switch to another application.

Alternatively, an internal dispatcher or shipping department can take delivery of goods and confirm centrally. In this case, an additional approval workflow through the supplier is possible. Then, the goods receipt is posted in the back-end system.

You can also cancel an existing confirmation at item level. In addition to all of this, you can return partial quantities of individual items (or of all items) to your suppliers, and state the reasons for these return deliveries. These reasons are also transferred to the back-end system.

(25)

1. Create confirmation 2. Approve confirmation

3. Post goods receipt 4. Cancel goods receipt 5. Create return delivery

1.1.2.6 Processing Invoices in SAP SRM

You can use this business process to display and process invoices in SAP Supplier Relationship Management (SAP SRM) and supplier self-services.

As a supplier or service provider, all invoices that you enter or process in SAP SRM must be approved by a responsible internal employee. For goods and services with a low purchase value, invoices and credit memos can also be created without a purchase order reference. Moreover, it is also possible to create express invoices in thecheck status application.

In supplier self-services, you can enter an invoice with reference to a purchase order, shipping notification, or contact person before they are sent to the customer.

(26)

If, following a purchase order, the goods or services turn out to be defective, or the price charged is too high, you, as an internal employee, supplier, or service provider, can enter and process credit memos or subsequent debits/credits in SAP SRM.

Process

1. Enter invoice in SAP SRM

2. Enter invoice in supplier self-services 3. Simulate invoice

4. Verify invoice 5. Approve invoice

6. Create credit memo

7. Create subsequent debit or credit 8. Cancel invoice

(27)

1.1.2.7 Verifying Logistics Invoices (Online/In

Background)

Purpose

You can use this business process to verify incoming invoices in terms of their content, prices, and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management (MM) and Financial Accounting (FI). If you use the prepayment functions, the first FI document is created when the invoice is saved in the system.

An invoice can be processed in Logistics invoice verification in online modus or in the background.

● Invoice Verification online

You enter the contained information of an invoice into the system, comparing the data (such as quantities and values) suggested by the system with those in the invoice. You make necessary corrections and post the invoice.

· Document parking (online only)

You receive an invoice. You enter the data in the system and save the invoice. The system does not yet create an FI document. You can change the parked document. When you have finished changing the document, you post the parked document.

· Invoice Verification in the background

You receive an invoice, enter the total amount of the invoice and match the invoice with another system document. The system then checks the invoice in the background. If no errors occur, the system also saves the invoice in the background. If errors occur, the system saves the invoice and you process it in a separate step. The business process Verifying Logistics Invoice Online can be enhanced in terms of invoice validation,

verification, and exception handling by the solution SAP Invoice Management by Open Text.

Companies must process supplier invoices in a timely, accurate, and efficient manner to have a well-run business. The SAP Invoice Management application by Open Text helps you manage and control invoice processing, meet critical payment and compliance deadlines, and avoid risks resulting from inaccurate business information.

SAP Invoice Management helps accounts payable personnel and suppliers to optimize the creation, management, monitoring, and routing of purchase orders and invoices. You can use SAP Invoice Management to improve the timeliness of payments, optimize productivity and cash flow, and limit fiscal and noncompliance risks.

SAP Invoice Management is integrated with SAP ERP and the SAP NetWeaver technology platform, allowing you to streamline accounts payable operations across and beyond the enterprise.

The integration available using SAP Invoice Management ensures the visibility of purchase orders, invoices, and payments. It also provides you with a central view of invoices instead of the disparate solutions you are left with without such integration.

For more information, see SAP Service Marketplace at http://service.sap.com/instguides

(28)

You can post invoices with reference to purchase orders or to goods receipts. You can post invoices without reference to a purchase order as well.

You can also create invoices with reference to contracts, if you have activated the Materials Management - Enhancements in Procurement (LOG_MM_CI_3) business function.

The following cases are supported:

· Invoices received via EDI or XML

You can process invoices via Electronic Data Interchange (EDI) or eXtensible Markup Language (XML). An invoice reaches you via EDI, and SAP ERP posts the invoice automatically.

● Prepayment (only relevant for background processing)

If you decide to prepay invoices for special vendors and company codes, the process is slightly different. You receive an invoice (as a hardcopy, via EDI, or via XML) that is verified in the background. As soon as the invoice is saved, an FI document is created. This posts an open item in the vendor account. The posting is not dependent on matching or verifying the invoice. Verification can be carried out at a later date. If errors occur, you might have to delete the invoice and create a credit memo.

Process Flow

The following business process runs in SAP ERP

1. Park invoice (online only)

2. Create or process invoices online or in background 3. Release invoice

4. System triggers prepayment in background (in the background only) 5. Cancel invoice

6. Transmit invoice

7. View list display of invoices 8. Perform revaluation

1.1.2.8 Analyzing Self-Service Procurement

You can use this business process to analyze the various aspects of self-service procurement. SAP Supplier Relationship Management (SAP SRM) delivers a number of reports focusing on this area, which can be published immediately, or used as a starting point for the creation of customer-designed reports. The user can monitor self-service procurement throughout the entire procurement process, and focus on analyzing shopping carts from different users and organizational areas.

(29)

The following business process runs in SAP Business Intelligence (SAP BI): 1. System collects data

2. View reports 3. Work with reports

(30)

1.3 Service Procurement

1.3.1 Service Procurement Classic

You can use this business scenario to cover the entire service procurement process using structured service requirements for external procurement. A purchase requisition is created in Materials

Management (MM) in SAP Enterprise Resource Planning (SAP ERP) and sent to Sourcing in SAP Supplier Relationship Management (SAP SRM), where it is converted to an RFx. Response modifications are allowed.

Prerequisites

You can implement this business scenario with different releases of the relevant application components. However, only certain combinations are valid.

For more information, see:

 SAP Supplier Relationship Management Master Guide on SAP Service Marketplace at service.sap.com/instguides

 Scenario & Process Component List on SAP Service Marketplace at service.sap.com/scl

Process

1. Processing Purchase Requisitions with Service Directories in ERP

2. Searching for Sources of Supply Centrally

3. Processing Bidding Events

4. Evaluating RFx Responses

5. Processing Follow-On Documents

6. Processing Purchase Orders in ERP

7. Processing Sales Orders in SUS

8. Entering Services in SRM

9. Entering Services in ERP

10. Processing Invoices by Supplier

11. Verifying Logistics Invoices (Online/In Background)

12. Processing Evaluated Receipt Settlements (ERS) in ERP

13. Analyzing Service Procurement

1.3.1.1 Processing Purchase Requisitions with

Service Directories in ERP

Purpose

You can use this business process to trigger the external procurement of services within ERP. You can describe the services required by:

· Using a service master · Using an individual short text

Additionally, you can add text as an item text or an item note depending on whether you want to print it for the vendor or not.

(31)

· Standard service catalogs · Model service specifications

· Contracts or other purchasing documents

Standard service catalogs are general standardized catalogs of text modules that can be put together in various combinations to describe the services required. You can import standard service catalogs from external data sources into the ERP system.

Model service specifications are collections of services with descriptions as well as pricing and quantity data. It is possible to set value limits if you cannot yet plan the services required in detail when entering the purchase requisition. You can set an overall limit or additional limits per model service specification or contract item.

You can record the performance of rendered services in service entry sheets. For more information, see Entering Services in ERP.

Process Flow

The following business process runs in SAP R/3 Enterprise:

1. Process purchase requisitions 2. Release purchase requisitions

(32)

3. Monitor/view list display of purchase requisitions

1.3.1.2 Searching for Sources of Supply