Enhancing Supplier Relationship Management Using SAP SRM ®
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Contents at a Glance PART I How SRM Fits Within an Organization 1 Introduction to Supplier Relationship Management ...................................
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PART II What Is SAP SRM? 2 SAP SRM — An Introduction .......................................... ..................................................................... ........................... 3 Operational Procurement ....................................... .......................................................................... ................................... 4 Strategic Sourcing and Contract Management ...................................... ............................................ ...... 5 Supplier Enablement ...................................... ................................................................................. ...........................................
41 55 139 197
PART III SAP SRM Implementation, Integration, Integration, and Upgrades 6 Catalog and Content Management — Crafting Your Catalog Strategy ......... 7 Choosing Implementation Scenarios ........................................... .......................................................... ............... 8 Organizational Structure ....................................... ............................................................................ ..................................... 9 Integration with SAP ERP Financials and SAP Project System ..................... ............. ........ 10 The Role of Workow in SAP SRM ..................................... ............................................................ ....................... 11 Managing Security in SAP SRM .......................................... ................................................................. ....................... 12 Dependency of Master Data in SAP SRM and SAP ERP .............................. ...... ........................ 13 Architecture and Technology of SAP SRM .................................................. ........................................ .......... 14 Upgrade — A HowHow-T To Approach ....................................... ................................................................ ......................... 15 Performance Reporting via SAP NetWeaver BW ..................................... ......................................... .... 16 SAP NetWeaver Portal and SAP SRM ......................................................... 17 Customer Case Studies ..................................... .............................................................................. ......................................... 18 SAP E-Sourcing ......................................... .................................................................................... ................................................. ...... 19 SAP Solution Manager and SAP SRM .........................................................
PART IV Industry Solutions 20 Procurement for Public Sector ...................................... .................................................................. ............................
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PART V Selected Confguration in SAP SRM 21 Selected Conguration in SAP SRM ........................................................... ...................................... .....................
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Appendices A SRM Functionality Matrix ...................................... .......................................................................... .................................... B Jobs that Require Scheduling ....................................... ..................................................................... .............................. C Using Different Browsers with SAP SRM .................................................... D Using Business Add-Ins with SAP SRM .................................................... ......... ............................................. .. E Customer Fields in SAP SRM ..................................................................... ..................................................... ................ F Business Objects in SAP SRM .................................................................... ................................................................. ... G Authorization Objects ........................................ ............................................................................... ....................................... H Quiz for Testing your SAP SRM Knowledge ........................................... ............................................... .... I System Refresh Procedures ....................................... ........................................................................ ................................. J Organization Structure Attributes ........................................... .............................................................. ................... K Useful Tr Transactions ansactions and Function Modules ................................................ L The Author ........................................ ................................................................................... ........................................................ .............
Introduction to Supplier Relationship Management ............... 1.1 1.2 1.3 1.4
e-Procurement and SRM ................................................................... The SRM Vendor Landscape .............................................................. Why SAP SRM? ................................................................................. Summary ..........................................................................................
29 30 34 34 37
PART II What Is SAP SRM? 2
SAP SRM — An Introduction ....................................................
Evolution of SAP SRM ....................................................................... SAP SRM and SAP Enterprise Applications ........................................ Benets of SAP SRM ......................................................................... 2.3.1 Opportunities and Business Benets Within SAP SRM ......... 2.3.2 Process Benets ................................................................... 2.3.3 Technology Benets ............................................................. 2.3.4 People Benets .................................................................... Dissecting SAP SRM .......................................................................... 2.4.1 Core Supply Processes ......................................................... 2.4.2 Operational Procurement .................................................... 2.4.3 Strategic Sourcing ................................................................ 2.4.4 Supplier Enablement ............................................................ SAP Components .............................................................................. 2.5.1 SAP Enterprise Buyer (SAP EB) ............................................. 2.5.2 SAP Bidding Engine ............................................................. 2.5.3 Supplier Self-Services ........................................................... 2.5.4 SAP Catalog Content Management (SRM-MDM Catalog) .... 2.5.5 SAP NetWeaver BW ............................................................ 2.5.6 SAP NetWeaver Process Integration ..................................... 2.5.7 SAP NetWeaver Portal ......................................................... Summary ..........................................................................................
Supplier Enablement Using SAP SRM ................................................
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5.2
5.3
5.4
5.5 5.6
5.7
5.1.1 Direct Access of SUS Application via BSP URL ...................... 5.1.2 Business Package or iView in the SAP NetWeaver Portal ...... Supplier Registration ......................................................................... 5.2.1 Buyer Organization Registers the Supplier ............................ 5.2.2 Supplier Self-Registration ..................................................... Supplier Collaboration: Order Collaboration ...................................... 5.3.1 Service Procurement with Supplier Integration (EB-SUS) ...... 5.3.2 Plan-Driven Procurement Scenario with Supplier Integration (MM-SUS) ............................................ 5.3.3 Payment Status .................................................................... Supplier Collaboration: Inventory and Replenishment ....................... 5.4.1 SAP NetWeaver Portal Business Package for Supplier Collaboration ......................................................... 5.4.2 Supply Network Planning .................................................... Design Collaboration Using SAP PLM ................................................ Design Collaboration Using SAP SRM ................................................ 5.6.1 Design Collaboration via Bidding Engine by Purchasing Professional ....................................................... 5.6.2 Design Collaboration via a cFolders Project by an Engineering Professional ...................................................... Summary ..........................................................................................
PART III SAP SRM Implementation, Integration, and Upgrades 6
Catalog and Content Management — Crafting Your Catalog Strategy ....................................................................... 239 6.1
6.2
Building a Robust Catalog Strategy ................................................... 6.1.1 Types of Catalogs ................................................................. 6.1.2 What are RoundTrip and Punch-Out? .................................. 6.1.3 A Single Catalog Solution Might Not be Enough .................. 6.1.4 Connect with Your Suppliers for Onboarding ....................... 6.1.5 Standardize Commodities .................................................... Catalog and Content Management Using SAP SRM ........................... 6.2.1 The SRM-MDM Catalog 3.0 ................................................ 6.2.2 The MDM Console, Data Manager, and Import Manager ..... 6.2.3 SAP NetWeaver MDM — Organize Content Import ............. 6.2.4 SAP NetWeaver MDM — Manage Content ......................... 6.2.5 SAP CCM — Search ............................................................. 6.2.6 Integration Scenarios for SRM and ERP ................................ 6.2.7 Conguration of the SRM-MDM Catalog Scenarios ..............
Use of SAP NetWeaver PI .................................................... Set up the Open Catalog Interface (OCI) for SRM ................ Customizing the Web Service Call Structure in SAP SRM to Access Supplier Catalogs and SRM-MDM Catalog ........... Relevant URL Links ........................................................................... Relevant OSS Notes .......................................................................... Summary ..........................................................................................
Overview — SAP SRM Implementation Scenarios ............................. The Classic Scenario .......................................................................... 7.2.1 Which Organizations Should Look at This Scenario? ............. 7.2.2 Restrictions of the Classic Scenario ...................................... 7.2.3 Impact on the SAP SRM Organizational Structure ................ 7.2.4 Impact of Classic Scenario When Integrating Enterprise Buyer with Supplier Self-Services ......................................... 7.2.5 Technical Extras ................................................................... The Extended Classic Scenario ........................................................... 7.3.1 Which Organizations Should Consider This Scenario? ........... 7.3.2 Restrictions of the Extended Classic Scenario ....................... 7.3.3 Impact on the SRM Organizational Structure ....................... 7.3.4 Impact of Extended Classic Scenario When Integrating Enterprise Buyer with SUS ................................................... 7.3.5 Purchase Order Consistency Check ...................................... 7.3.6 Technical Extras ................................................................... The Standalone Scenario ................................................................... 7.4.1 Which Organizations Should Consider this Scenario? ........... 7.4.2 Restrictions of the Standalone Scenario ............................... 7.4.3 Impact on the SRM Organizational Structure ....................... 7.4.4 Impact of Standalone Scenario When Integrating Enterprise Buyer with SUS ................................................... 7.4.5 Technical Extras ................................................................... Decoupled Scenario .......................................................................... 7.5.1 Running Scenarios in Parallel ............................................... 7.5.2 Technical Extras ................................................................... Things to Remember and to Watch Out For ...................................... Relevant OSS Notes .......................................................................... Summary ..........................................................................................
Overview of the Organizational Structure in SAP SRM ...................... The Details Area of the Organizational Structure ............................... 8.2.1 Basic Data Tab ..................................................................... 8.2.2 Address Tab ......................................................................... 8.2.3 Function Tab ........................................................................ 8.2.4 Responsibility Tab ................................................................ 8.2.5 Attributes Tab ...................................................................... 8.2.6 Extended Attributes Tab ...................................................... 8.2.7 Check Tab ............................................................................ Uploading Attributes via a Function Module ..................................... Customizing Attribute Maintenance .................................................. 8.4.1 Customizing Delivered Standard Attributes .......................... 8.4.2 Create a New Attribute in the Organizational Structure ....... 8.4.3 Maintaining Attribute Rights by Role ................................... Deleting Organizational Objects in SRM ........................................... Best Practices for Creating and Managing the Organizational Structure ................................................................... 8.6.1 Key Organizational Structure Challenges .............................. 8.6.2 Transport the Organizational Structure ................................. Integration with SAP ERP HCM — A Key Decision ............................ 8.7.1 Need for SAP SRM Integration with the SAP ERP HCM Organizational Structure ...................................................... 8.7.2 SAP ERP HCM Integration Scenarios — When to Integrate .... 8.7.3 Distributing the SAP ERP HCM Organizational Plan ............. 8.7.4 Maintenance of Organizational Structure After HR Integration ..................................................................... 8.7.5 Responsibility Matrix for Setting Up the Organizational Structure During an Implementation .................................... Pros and Cons of Creating an Organizational Structure in SAP EB or Distributing from SAP ERP HCM ....................................................... 8.8.1 Creating an Organizational Structure in SAP SRM ................ 8.8.2 Integrating and Using the SAP ERP HCM Organizational Structure ...................................................... Impact of the Extended Classic Scenario on SAP SRM Organizational Structure ................................................................... System Refresh Procedure Steps ........................................................ Things to Remember ......................................................................... What’s New in the Organizational Structure? .................................... Summary ..........................................................................................
Integration with SAP ERP Financials and SAP Project System 9.1 9.2
9.3
9.4 9.5 9.6
9.7 9.8 9.9
Financial Accounting in SAP .............................................................. Integration of SAP ERP Financials with SAP SRM .............................. 9.2.1 Integration at the Master Data Level ................................... 9.2.2 Transaction Level Integration ............................................... 9.2.3 Account Determination Based on Expense vs. Stocked Items ...................................................................... Overview of the Purchase-to-Pay Cycle ............................................. 9.3.1 Classic Scenario: SAP SRM and Backend System is SAP ERP .............................................................................. 9.3.2 Extended Classic Scenario: SAP SRM and Backend System in SAP ERP .......................................................................... 9.3.3 Standalone Scenario: SAP SRM with Non-SAP Backend System ................................................................... Budget Check in SAP SRM ................................................................ Integration with Project System ....................................................... Limitation of Extended Classic Scenario for SAP Public Sector Solution ............................................................................................ 9.6.1 Identied Gap ..................................................................... 9.6.2 Solution Approach ............................................................... Integration with cProjects ................................................................ Relevant OSS Notes .......................................................................... Summary ..........................................................................................
10 The Role of Workow in SAP SRM ........................................... 367 10.1 Workow in SAP SRM ...................................................................... 10.2 Standard Delivered Workows in SAP SRM ....................................... 10.2.1 Shopping Cart Workows .................................................... 10.2.2 Purchase Order Approval Workows ................................... 10.2.3 Conrmation Approval Workows ....................................... 10.2.4 Invoice Entry Approval Workows ....................................... 10.2.5 Purchase Order Response (POR) Approval Workows .......... 10.2.6 Contracts and Contract Changes (Version) Workows .......... 10.2.7 Bid Invitations and Bid Workows ....................................... 10.2.8 Procurement Card Workows .............................................. 10.2.9 User Master and Vendor Master Workows ......................... 10.3 Online and Ofine Approvals ............................................................ 10.3.1 Approval in SAP SRM Inbox ................................................. 10.3.2 Approval via URL Link from Email ........................................ 10.3.3 Approval Directly in Email Client (Ofine Approval) ............. 14
Implementation Best Practices .......................................................... Security and Authorizations in Workow .......................................... Responsibility Rules vs. Custom Z tables ........................................... What’s New in SAP SRM 7.0 Workow ............................................. Relevant OSS Notes .......................................................................... Summary ..........................................................................................
401 404 408 409 412 412
11 Managing Security in SAP SRM ............................................... 413 11.1 Overview of Security in SAP .............................................................. 11.2 Security in SAP SRM ......................................................................... 11.2.1 Common Questions About SRM Implementations ............... 11.2.2 Similarities Between SAP ERP Enterprise and SAP SRM ........ 11.2.3 Security Related Differences in SAP ERP vs. SAP SRM .......... 11.3 User Creation in SAP SRM for SAP EB (Internal) ................................ 11.3.1 Using SAP SRM as a Standalone System ............................... 11.3.2 Using SAP ERP HCM Integration Scenario ............................ 11.3.3 Using CUA Within SAP SRM ................................................ 11.4 User Creation in SRM for SAP EB (External) ....................................... 11.5 Deleting Users in SAP SRM ............................................................... 11.6 Checking Users in SAP SRM .............................................................. 11.7 Roles and Authorizations in SAP SRM ............................................... 11.7.1 Authorization Objects in SAP SRM ...................................... 11.8 Impact of Organizational Structure in SAP SRM on Security .............. 11.8.1 Organizational Structure as a Security Mechanism ............... 11.8.2 Securing the Organizational Structure in a Decentralized Environment .................................................. 11.9 Position-Based Security in SAP SRM .................................................. 11.10 Relevant OSS Notes .......................................................................... 11.11 Summary ..........................................................................................
12 Dependency of Master Data in SAP SRM and SAP ERP .......... 455 12.1 Middleware ...................................................................................... 12.2 Locations, Payment Terms, and Pricing Conditions ............................ 12.2.1 Locations ............................................................................. 12.2.2 Payment Terms .................................................................... 12.2.3 Pricing Conditions ............................................................... 12.3 Interlinkages ..................................................................................... 12.3.1 Interlinkages and Info Records ............................................. 12.4 Vendor Lists, Contracts, and Catalogs ................................................ 12.4.1 Vendor Lists .........................................................................
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12.5 12.6
12.7 12.8
12.4.2 Contracts ............................................................................. 12.4.3 Catalogs .............................................................................. Delivery Addresses ............................................................................ 12.5.1 Addresses for Business Partners ........................................... External Business Partners in SAP SRM .............................................. 12.6.1 Vendors ............................................................................... 12.6.2 Bidders ................................................................................ 12.6.3 Portal Vendor ...................................................................... Relevant OSS Notes .......................................................................... Summary ..........................................................................................
467 467 467 468 470 470 478 480 480 480
13 Architecture and Technology of SAP SRM ................................ 481 13.1 SAP SRM Functionalities and Matrix ................................................. 13.1.1 Denition of Functionalities ................................................. 13.1.2 SAP SRM Server Components — Overview .......................... 13.1.3 Business Scenario-Based Component Matrix ........................ 13.2 SAP SRM Architecture Based on Business Scenario ............................ 13.2.1 Self-Service Procurement Business Scenario ......................... 13.2.2 Plan-Driven Procurement Business Scenario ......................... 13.2.3 Service Procurement Business Scenario ................................ 13.2.4 SRM-MDM Business Scenario .............................................. 13.2.5 Strategic Sourcing Business Scenario .................................... 13.2.6 Spend Analysis Business Scenario ......................................... 13.3 SAP SRM Business Scenarios Using SAP NetWeaver PI ...................... 13.4 User Interface ITS to WebDynpro in SAP SRM .................................. 13.5 SRM Sizing ........................................................................................ 13.6 Summary ..........................................................................................
14 Upgrade — A How-To Approach ............................................... 499 14.1 Why Upgrade? .................................................................................. 14.1.1 Decision Methodology ........................................................ 14.1.2 Working with a Decision Methodology ................................ 14.2 Answer the Question: Technical or Functional? ................................. 14.3 Understand Your Current Environment .............................................. 14.4 Expected Changes in New SRM Release ............................................ 14.5 Upgrade — Tools and Resources ....................................................... 14.5.1 SAP Documentation ............................................................ 14.5.2 Modied Objects ................................................................. 14.6 Best Practices — Upgrade Impact ......................................................
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14.6.1
14.7 14.8 14.9 14.10 14.11
Upgrade Assessment — Process-Based Impact to User Community .................................................................. 14.6.2 Upgrade Assessment — Technical and Development Impact ... 14.6.3 Upgrade Assessment — Impact on End User Training ........... SAP SRM 7.0 – Major Changes .......................................................... SAP SRM Upgrade — Lessons Learned .............................................. Upgrade Assessment — via a Questionnaire ...................................... Relevant OSS Notes .......................................................................... Summary ..........................................................................................
515 516 519 520 524 525 528 528
15 Performance Reporting via SAP NetWeaver BW ..................... 529 15.1 SAP NetWeaver BW with SAP SRM ................................................... 15.1.1 Business Intelligence Within SAP NetWeaver BW ................ 15.1.2 Basic Reporting Concepts .................................................... 15.1.3 SAP SRM Integration with SAP NetWeaver BW ................... 15.1.4 Source System ..................................................................... 15.1.5 Accessing Reports from SAP NetWeaver BW in SAP SRM .... 15.2 Standard SAP NetWeaver BW Business Content for SAP SRM ........... 15.2.1 Key Benets for Standard SAP NetWeaver BW Content ....... 15.2.2 Release Compatibility for SAP SRM and SAP NetWeaver BW ............................................................ 15.2.3 Business Intelligence Content Delivered for SAP SRM .......... 15.2.4 Operational Procurement Scenario ...................................... 15.2.5 Some Standard SAP NetWeaver BW Reports for SAP SRM .... 15.3 SAP SRM Implementation Scenario Impact on SAP NetWeaver BW Reporting ................................................................................... 15.3.1 The Classic Scenario ............................................................. 15.3.2 The Extended Classic Scenario ............................................. 15.3.3 The Standalone (Lean) Scenario ........................................... 15.3.4 The Decoupled Scenario ...................................................... 15.4 Delivered Reports in SRM 7.0 ........................................................... 15.5 Things to Remember ......................................................................... 15.6 Relevant OSS Notes .......................................................................... 15.7 Summary ..........................................................................................
16 SAP NetWeaver Portal and SAP SRM ...................................... 561 16.1 SRM Business Packages for SAP NetWeaver Portal ............................ 563 16.1.1 Download the Business Package .......................................... 564 16.2 Portal Security ................................................................................... 567
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16.2.1 User Authentication and SSO ............................................... 16.2.2 Provide Roles and Authorizations for Accessing Content in Portal Environment .......................................................... 16.3 What’s New in SAP SRM 7.0 ............................................................. 16.3.1 WebDynpro ......................................................................... 16.3.2 Personal Object Worklist ..................................................... 16.3.3 Universal Worklist ............................................................... 16.4 Relevant OSS Notes and Links ........................................................... 16.5 Summary ..........................................................................................
567 568 570 570 571 572 574 574
17 Customer Case Studies ............................................................. 575 17.1
Case Study #1: New SAP ERP and SAP SRM Implementation ............ 17.1.1 Project Scope: SAP ERP and SAP SRM ................................. 17.1.2 Key Challenges Prior to Implementing SAP SRM .................. 17.1.3 SAP SRM Application Design and Implementation Scenario 17.1.4 SAP Landscape and Environment ......................................... 17.2 Case Study #2: Existing SAP Customer with New SAP SRM and E-Sourcing Implementation ............................................................... 17.2.1 Project Scope: SAP ERP and SAP SRM ................................. 17.2.2 Key Challenges Prior to Implementing SAP SRM .................. 17.2.3 SAP SRM Application Design and Implementation Scenario ... 17.2.4 SAP Landscape and Environment ......................................... 17.3 Summary ..........................................................................................
575 576 577 577 579 580 580 581 581 584 584
18 SAP E-Sourcing ......................................................................... 585 18.1 SAP E-Sourcing ................................................................................. 18.1.1 On-Demand ........................................................................ 18.1.2 Hosted ................................................................................ 18.1.3 On-Premise ......................................................................... 18.2 SAP E-Sourcing 5.1 Architecture ........................................................ 18.3 SAP E-Sourcing Integration with SAP ERP and SAP SRM ................... 18.3.1 SAP E-Sourcing Integration Package ..................................... 18.4 Relevant OSS Notes and Links ........................................................... 18.5 Summary ..........................................................................................
588 591 591 592 592 593 593 595 596
19 SAP Solution Manager and SAP SRM ...................................... 597 19.1 Solution Manager Relevance to SAP SRM ......................................... 599 19.1.1 Installation and Maintenance of the SAP SRM Application ..... 600 19.1.2 Standard Implementation Content for SAP SRM ................. 601
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19.2 Conguring the Solution Manager for SAP SRM ................................ 19.2.1 Step 1: Upload Content for SAP SRM 7.0 ............................. 19.2.2 Step 2: Set Up All Systems in Landscape Using SMSY .......... 19.2.3 Step 3: Create a Project (SOLAR_PROJECT_ADMIN) ............ 19.2.4 Step 4: Document Your Core Business Processes (SOLAR01) .......................................................................... 19.2.5 Step 5: Congure Your Project (SOLAR 02) .......................... 19.2.6 Step 6: Evaluate and Report on the Project (SOLAR_EVAL) .. 19.3 Relevant OSS Notes and Links ........................................................... 19.4 Summary ..........................................................................................
604 604 604 605 606 607 609 610 610
PART IV Industry Solutions 20 Procurement for Public Sector ................................................. 613 20.1 SAP SRM and SAP Procurement for Public Sector ............................. 613 20.2 What Is Different in SAP PPS? ........................................................... 616 20.3 Summary .......................................................................................... 620
PART V Selected Conguration in SAP SRM 21 Selected Conguration in SAP SRM ......................................... 623 21.1
21.2
21.3 21.4 21.5 21.6
Integrate Organizational Structure with SAP ERP HCM ...................... 21.1.1 Prerequisites for Integration ................................................. 21.1.2 Filtering of Objects to be Distributed from SAP ERP into SAP SRM ............................................................................. 21.1.3 Activating Change Pointers .................................................. 21.1.4 Distribute the SAP ERP HCM Organizational Model (Initial Distribution) ............................................................. 21.1.5 Synchronizing Data Distributed from SAP ERP HCM to SAP SRM ............................................................................. Workow: Restriction for Changing and Adding Approvers in the Shopping Cart ............................................................................. 21.2.1 Changing the Approver Determined by the System .............. 21.2.2 Adding an Ad-Hoc Approver ............................................... MRP Integration with SAP SRM ........................................................ Other Conguration with SAP SRM ................................................... Summary .......................................................................................... Book Conclusion ...............................................................................
SRM Functionality Matrix ........................................................................... Jobs that Require Scheduling ...................................................................... B.1 Jobs Required in SAP SRM ................................................................ B.2 Jobs Required in SAP ERP ................................................................. C Using Different Browsers with SAP SRM ..................................................... D Using Business Add-Ins with SAP SRM ........................................................ D.1 Implementing a BAdI ........................................................................ D.1.1 Multiple Use ........................................................................ D.1.2 Filter Dependent ................................................................. D.2 Examples of BAdIs in SAP SRM ......................................................... D.2.1 BAdI: Change Display in Shopping Cart (BBP_SC_MODIFY_UI) ........................................................ D.2.2 BAdI: Dene Target Objects (BBP_TARGET_OBJECTS) ..................................................... D.2.3 BAdI: Change Purchasing Document Data (BBP_DOC_CHANGE_BAdI) ................................................. D.2.4 BAdI: Check Purchasing Document (BBP_DOC_CHECK_BAdI) .................................................... D.3 List of BAdIs in SAP SRM .................................................................. D.3.1 Obsolete BAdIs for Organizations Implementing SAP SRM 7.0 ....................................................................... E Customer Fields in SAP SRM ....................................................................... E.1 Customer-Specic Fields in SAP SRM Document Types ..................... E.1.1 Procedure for Creating a User-Dened Field ........................ E.2 Related OSS NOTES .......................................................................... F Business Objects in SAP SRM ...................................................................... G Authorization Objects ................................................................................. H Quiz for Testing your SAP SRM Knowledge ................................................. H.1 Questions ......................................................................................... H.2 Answers ............................................................................................ H.3 Explanations for the Answers ............................................................ I System Refresh Procedures ......................................................................... J Organization Structure Attributes ................................................................ K Useful Transactions and Function Modules .................................................. L The Author .................................................................................................
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