Sap-srm Ref Manual

SUPPLIER RELATIONSHIP MANAGEMENT

SAP Supplier Relationship Management Product Information Product

SAP Supplier Relationship Management

Release

7.0

SAP Enhancement

3, SP 02 for SAP SRM 7.0

Package 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

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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 )

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For more information about SAP SRM configuration information, see SAP Solution Manager

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 2. Processing Purchase Requisitions in ERP

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

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

■ In a Supplier Relationship Management (SRM) classic scenario

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■ 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. 4. Check account assignment data

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.

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¡ 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

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 industryspecific, 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).

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). 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.

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¡ 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.

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¡ 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.

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¡ 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.

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¡ 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.

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¡ 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.

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¡ 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.

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¡ 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.

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

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¡ Triggering of follow-up activities

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¡ 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

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¡ Advanced shipping notification

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¡ Goods receipt

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¡ ERS/invoice

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¡ Payment

Furthermore, some unexpected events may be posted: 

¡ Shipment delayed

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¡ Quantity change

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¡ Delivery quantity change

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¡ Due date change

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¡ Delivery date change

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¡ Deletion indicator set

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 SAP Solution Extensions -> SAP Invoice Management by Open Text -> Version 5.2

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.

Process

The following business process runs in SAP Business Intelligence (SAP BI): 1. System collects data 2. View reports 3. Work with reports

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

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 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.

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 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 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.

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

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). You can also use SAP Workflow to set up a release procedure workflow for releasing a purchase order.

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 7. Compare purchase order response with purchase order

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.

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.



¡ 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 userdefined 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



¡ Analyzing the business process in the SAP Business Information Warehouse (SAP BW)

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.

Process

1. Create confirmation 2. Approve confirmation 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. 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.

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 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. 6. Create credit memo 7. Create subsequent debit or credit 8. Cancel invoice

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 SAP Solution Extensions -> SAP Invoice Management by Open Text -> Version 5.2

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.

Process

The following business process runs in SAP Business Intelligence (SAP BI): 1. System collects data 2. View reports 3. Work with reports

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. Alternatively, you can select services from:

· 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

3. Monitor/view list display of purchase requisitions

1.3.1.2 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. 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 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.

1.3.1.3 Processing Bidding Events You use this business process to create, publish, and change an RFx. You create an RFx as follows: 

By copying an existing RFx



By creating a follow-on RFx (in the next round) after a first RFx



From existing purchase requisitions



From templates of a saved or published RFx



From externally uploaded files

After you have completed an RFx, you can approve it and publish it. You can also set up a workflow to approve publication of the RFx. After you have published the RFx, the invited bidders submit their RFx responses. Bidders can indicate their participation prior to submitting an RFx response. To facilitate communication, a chat functionality is offered. As purchaser, you can allow bidders to change their RFx responses, thereby allowing bidders to update their RFx responses until the submission deadline. You can also bid on behalf of bidders. If you change the RFx after it has been published, bidders are informed of the change and can update their RFx responses accordingly. Changes made to RFxs and RFx responses result in the creation of a new version. You can use version comparison functionality to display the differences between versions. In addition, RFx response modification allows bidders to offer different products and services other than those requested by you. Bidders can withdraw a submitted RFx response if they are no longer able to participate. You can assign RFx to different purchasing groups manually or automatically. This enables you to react to temporary absences among persons responsible for RFx, or organizational changes to the structure of your purchasing groups.

You can also enable tender fees and earnest money deposit (EMD) payment by the bidder.

Process In Strategic Sourcing without bid decoupling, the following business process runs in SRM Server: 1. Create RFx This process step is modified if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function. If you have activated this business function, you can configure the RFx to support limit items so that limit items are available in RFx in the Service Procurement scenario during sourcing. 2. Upload RFx from file 3. Complete and save RFx This process step is modified if you have activated the SRM, Continuous Innovations (SRM_CONT_IMPR_1) business function and the Template from RFx and Contract (SRM_701_TEMPLATE) Customizing switch. If you have activated this switch, you can save an RFx template after you have saved or published the RFx. 4. Approve publication of RFx 5. Publish RFx 6. Change RFx 7. Process workload reassignment 8. Confirm participation 9. Create and submit RFx response online. Alternatively, you can also create and submit the RFx response offline. This process step is modified if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function and the Tender Fees (SRM_701_TENDER_FEE) and Earnest Money Deposit (SRM_701_EARNEST_MONEY_DEP) Customizing switches. If you have activated this business function, and the purchaser has specified the requirements in the RFx, then the bidder has to provide the tender fees, before creating the RFx response, and pay the earnest money deposit. 10. Change RFx response 11. Withdraw RFx response In Strategic Sourcing with bid decoupling, the following business process runs in SRM server: 1. Create RFx 2. Upload RFx from file 3. Complete and save RFx This process step is modified if you have activated the SRM, Continuous Innovations (SRM_CONT_IMPR_1) business function and the Template from RFx and Contract (SRM_701_TEMPLATE) Customizing switch. If you have activated this switch, you can save an RFx template after you have saved or published the RFx. 4. Approve publication of RFx. 5. Publish RFx 6. Change RFx 7. Process workload reassignment In Strategic Sourcing with bid decoupling, the following business process runs in the supplier system: 1. Replicate RFx

2. Confirm participation 3. Create and submit RFx response online

Note You can also create and submit the RFx response offline. 4. Change RFx response 5. Withdraw RFx response

1.3.1.4 Evaluating Bids or RFx Responses You use this business process to evaluate bids received in response to an auction, or RFx responses received in response to an RFx, and to decide and award the winning bid or RFx response. You can integrate the award of a winning bid or RFx response in an approval workflow.

Process

The following business process runs in the SRM Server system: 1. Open Bid or RFx Response Open the bid or RFx document and choose Responses and Awards to display all bids or RFx responses from all bidders. Select the bid or RFx response and open the bid or RFx response document to view the complete details. 2. Evaluate Bid or RFx Response You can open the responses from all bidders in the Bid Comparison view. In this view, the purchaser can compare the responses of all bidders. For each item, the submitted quantity, price, alternative and supplementary items added by the bidder, and the answers submitted in response to the qualification questionnaire are available. 3. Award Bid or RFx Response You can award bids or RFx responses in the Responses and Awards or the RFx Response Comparison views. You can accept some or all of the items from a bidder. You can also accept responses from multiple bidders.

4. Approve Bid or RFx Response After accepting the RFx response documents, they are sent to the responsible purchasing manager for approval. A work item appears in the approving manager’s inbox.

1.3.1.5 Processing Follow-On Documents When creating an RFx or a live auction, you can decide if a purchase order and/or purchasing contract can be created as a follow-on document. After the submission deadline for the RFx or auction, you decide whether to reject or accept a bid. After the accepted bid has run through an approval workflow, you can use this business process to create the follow-on documents. In Customizing, you can determine whether the follow-on documents are generated locally or in a back-end system.

Process

1. Create purchase order in SAP SRM (SRM Server) 2. Create purchase order in SAP ERP (SAP ERP) 3. Create contract in SAP SRM (SRM Server). This process step is modified if you have activated the SRM, Service Procurement Innovations (SRM_SERVICE_PROC_1) business function and the Central Contract Management (SRM_701_SERV_PROC_CCM) Customizing switch. 4. Create contract in SAP ERP (SAP ERP)

1.3.1.6 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. 4. Check account assignment data 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 7. Monitor or view list display of purchase orders

1.3.1.7 Processing Sales Orders in SUS You can use this business process to perform principle steps of the procurement process in a supplier system such as supplier self-services (SUS) using sales orders. Sales orders are created automatically in the supplier system after purchase orders have been created in the procurement system and have been sent to the supplier system. Your procurement system can be SAP SRM, Materials Management, or a non-SAP procurement system, depending on which business scenario you have implemented. With SAP SRM, you can receive purchase order responses using XML. This can be a notification that the supplier accepts all purchase order items and can deliver them as ordered; or the supplier notifies of variances from the purchase order because he can only partly confirm it. This process is modified if you have activated the SRM, Service Procurement Innovations (SRM_SERVICE_PROC_1) business function in SAP SRM and the Procurement - SRM Integration 2 (LOG_MM_P2PSE_2) business function in SAP ERP. With these business functions, you can use informatory lines and contract limits.

Process

The following business process runs in SUS: 1. Process sales order 2. Create and send purchase order response (SUS)

1.3.1.8 Entering Services in SRM You can use this business process to allow supplier to enter services performed, either planned or unplanned, as well as expenses and overtime hours. If external staff has access to a supplier system such as SAP Supplier Self-Services (SUS), they can enter their services themselves and send this data to the purchaser as an XML message. Alternatively, external staff can send service entry sheets to purchasers by e-mail, fax, or regular mail. Purchasing assistants then enter the data in the service entry sheets in SAP SRM or SAP ERP. As a supplier or service provider, your service entry sheets must be approved by an internal employee. If a request for external staff has come from a cProjects system, the confirmation information in SAP Product Lifecycle Management (SAP PLM) is updated accordingly.

Process

1. Create service entry sheet in SRM 2. Create service entry sheet in SUS 3. Send confirmation (SUS) 4. Approve confirmation (SAP SRM Server) 5. Update fulfillment information in SAP PLM using cProjects (SAP cProject Suite)

1.3.1.9 Entering Services in ERP Purpose You can use this business process to enter services in ERP. The services actually performed (work actually done) by a service provider are recorded in a service entry sheet. You can enter both planned and unplanned services performed. As an alternative, Cross-Application Time Sheets (CATS) can be used for time recording by internal or external staff. After the services have been recorded, one or more responsible persons must check that the work is satisfactory and formally accept the service entry sheet. This acceptance constitutes the basis for invoice verification and triggers the update of accounting information.

Process Flow

The following business process runs in SAP R/3 Enterprise: 1. Process service entry sheets 2. Print and transmit service entry sheets 3. Release collective service entry sheets 4. Import CATS data

1.3.1.10 Processing Invoices by Supplier You can use this business process to display and process invoices in Supplier Self-Services (SUS). As supplier or service provider, all invoices or processes must be approved by an internal employee. In SUS, invoices can be entered with reference to a purchase order, confirmation, shipping notification, or contact person before they are sent to the customer. If, following a purchase order, the goods supplied or the service provided 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.

Process

1. Enter invoice in SUS 2. Send Invoice (SUS) 3. Create credit memo (SUS)

1.3.1.11 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 SAP Solution Extensions -> SAP Invoice Management by Open Text -> Version 5.2 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

1.3.1.12 Processing Evaluated Receipt Settlements (ERS) in ERP Purpose You can use this business process to settle goods receipts automatically. When you use evaluated receipt settlement (ERS), the vendor creates no invoice for an ordering transaction, instead you post it on the vendor’s behalf based on information contained in purchase orders and goods receipts. ERS has the following advantages: · Purchasing transactions are closed more quickly. · Communication errors are avoided. · There are no price or quantity variances in Invoice Verification.

Process Flow

The following business process runs in SAP R/3 Enterprise: 1. Perform evaluated receipt settlements 2. Monitor evaluated receipt settlements 3. Transmit invoices

1.3.1.13 Analyzing Service Procurement You can use this business process to analyze service procurement from different aspects. SAP SRM delivers a number of reports focusing especially on this area. Based on best business practice, the

reports can be immediately deployed, or they can be used as a starting point to define customer designed reports. The user can monitor service procurement through the entire process requisitioning or creation of shopping cart, the issue of purchase orders, confirmation and invoicing. The system provides you with, for example, status reports for procurement, showing the status for each individual procurement document. You can also choose to work with exception reports, focusing only on items which need special attention.

Process

The following business process runs in SAP BI: 1. System collects data 2. View reports 3. Work with reports

1.4 STRATEGIC SOURCING

1.4.1 Strategic Sourcing with RFx You can use this business scenario to source goods using RFx (request for information, request for proposal, and/or request for quotation). You can use this business scenario with or without integration of the sourcing application. The sourcing application helps you, as a professional purchaser, to process your requirements and to determine the best source of supply. You can also integrate document storage functionality – maintained in cFolders – in the RFx. After you have received bids from suppliers, you can create a purchase order or contract (local or global outline agreement) directly from the sourcing application or in SAP Bidding Engine as a result of the RFx.

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 http://service.sap.com/instguides 

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

Process 1. Processing Shopping Carts 2. Processing Purchase Requisitions in ERP 3. Searching for Sources of Supply Centrally 4. Negotiating Contracts 5. Processing Bidding Events 6. Processing Collaborative Bidding Events Using cFolders 7. Evaluating Bids or RFx Responses 8. Processing Bids and RFx Responses in Supplier Self-Services 9. Analyzing Sourcing with RFx

1.4.1.1 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

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 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.

1.4.1.2 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: 

■ In a Supplier Relationship Management (SRM) classic scenario



■ 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.

1.4.1.3 External Sourcing for Purchase Requisitions In order to generate follow-on documents for purchase requisitions created in the SAP ERP system, you must assign a valid source of supply. If there are no valid sources of supply in SAP ERP, the purchaser can carry out external sourcing using the SAP SRM system. There are two processing modes available for transferring purchase requisitions to the SAP SRM system: 

Background mode Purchase requisitions are transferred to SAP SRM automatically, and are created as external requirement documents in the SAP SRM system. Subsequently, the purchaser can process and convert the external requirement document into a follow-on document (for example, a purchase order, contract, RFx or auction) directly in the SAP SRM sourcing application.



Online mode Purchasers transfer purchase requisitions manually using the Collaborative Processing of Purchase Requisition (CPPR) application. In online mode, purchasers can choose to either transfer purchase requisitions to SAP SRM by creating an external requirement document in SAP SRM, as in background mode, or create an RFx for the purchase requisition directly in SAP SRM. If the purchaser chooses to create an RFx directly in SAP SRM, no external requirement is generated for the purchase requisition.

Note Before you configure this process, you must first configure the basic settings for the Plan-Driven Procurement with Plant Maintenance business scenario. You do this in SAP Solution Manager under

SAP SRM

Basic Settings for Plan-Driven Procurement Basic Settings for Plan-

Driven Procurement with Plant Maintenance .

Process The following business process runs in SAP SRM: 1. Start Collaborative Processing of Purchase Requisitions (CPPR) application 2. Create RFx from CPPR 3. Transfer purchase requisition to SAP SRM sourcing application

More Information

For more information on Collaborative Processing of Purchase Requisitions, see Collaborative Processing of Purchase Requisition CPPR.

1.4.1.4 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. 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 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.

1.4.1.5 Negotiating Contracts You use this business process to negotiate contracts in SAP Bidding Engine. You can: 

Negotiate a new contract



Renew an existing contract that has been released already To renew a contract that has been released already, you trigger the renewal process in the contract application of SAP SRM and the system transfers the data to SAP Bidding Engine automatically. The supplier then submits new contract details or updates existing ones, such as target value or conditions. If you accept the updated data from the supplier, the data is transferred to the existing contract.

This business process is modified if you have activated the SRM Service Procurement Innovations (SRM_SERVICE_PROC_1) business function. See process steps Negotiate contract and Renew contract below.

Process

The following business process runs in SRM Server: 1. Search for contracts 2. Negotiate 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 create a new contract with service hierarchies out of a winning bid. 3. Renew 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 update an existing contract with service hierarchies out of a winning bid. 4. Update contracts via mass update

1.4.1.6 Processing Bidding Events You use this business process to create, publish, and change an RFx. You create an RFx as follows: 

By copying an existing RFx



By creating a follow-on RFx (in the next round) after a first RFx



From existing purchase requisitions



From templates of a saved or published RFx



From externally uploaded files

After you have completed an RFx, you can approve it and publish it. You can also set up a workflow to approve publication of the RFx. After you have published the RFx, the invited bidders submit their RFx responses. Bidders can indicate their participation prior to submitting an RFx response. To facilitate communication, a chat functionality is offered.

As purchaser, you can allow bidders to change their RFx responses, thereby allowing bidders to update their RFx responses until the submission deadline. You can also bid on behalf of bidders. If you change the RFx after it has been published, bidders are informed of the change and can update their RFx responses accordingly. Changes made to RFxs and RFx responses result in the creation of a new version. You can use version comparison functionality to display the differences between versions. In addition, RFx response modification allows bidders to offer different products and services other than those requested by you. Bidders can withdraw a submitted RFx response if they are no longer able to participate. You can assign RFx to different purchasing groups manually or automatically. This enables you to react to temporary absences among persons responsible for RFx, or organizational changes to the structure of your purchasing groups. You can also enable tender fees and earnest money deposit (EMD) payment by the bidder.

Process In Strategic Sourcing without bid decoupling, the following business process runs in SRM Server: 1. Create RFx This process step is modified if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function. If you have activated this business function, you can configure the RFx to support limit items so that limit items are available in RFx in the Service Procurement scenario during sourcing. 2. Upload RFx from file 3. Complete and save RFx This process step is modified if you have activated the SRM, Continuous Innovations (SRM_CONT_IMPR_1) business function and the Template from RFx and Contract (SRM_701_TEMPLATE) Customizing switch. If you have activated this switch, you can save an RFx template after you have saved or published the RFx. 4. Approve publication of RFx 5. Publish RFx 6. Change RFx 7. Process workload reassignment 8. Confirm participation 9. Create and submit RFx response online. Alternatively, you can also create and submit the RFx response offline. This process step is modified if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function and the Tender Fees (SRM_701_TENDER_FEE) and Earnest Money Deposit (SRM_701_EARNEST_MONEY_DEP) Customizing switches. If you have activated this business function, and the purchaser has specified the requirements in the RFx, then the bidder has to provide the tender fees, before creating the RFx response, and pay the earnest money deposit. 10. Change RFx response 11. Withdraw RFx response In Strategic Sourcing with bid decoupling, the following business process runs in SRM server: 1. Create RFx 2. Upload RFx from file

3. Complete and save RFx This process step is modified if you have activated the SRM, Continuous Innovations (SRM_CONT_IMPR_1) business function and the Template from RFx and Contract (SRM_701_TEMPLATE) Customizing switch. If you have activated this switch, you can save an RFx template after you have saved or published the RFx. 4. Approve publication of RFx. 5. Publish RFx 6. Change RFx 7. Process workload reassignment In Strategic Sourcing with bid decoupling, the following business process runs in the supplier system: 1. Replicate RFx 2. Confirm participation 3. Create and submit RFx response online

Note You can also create and submit the RFx response offline. 4. Change RFx response 5. Withdraw RFx response

1.4.1.7 Processing Collaborative Bidding Events Using cFolders You can use this business process to create RFx and to integrate them in a document storage functionality that is managed in cFolders. This document storage functionality supports RFx for complex technical products requiring specifications and plans. As a purchaser, you create an area in cFolders, which is accessible to all your bidders. In this area, you store your documents and specifications. When bidders submit RFx responses, a separate area of cFolders is created, which is accessible only to you and to the respective bidder. In these areas, bidders store the plans and documents that they have produced in response to the RFx.

Process

1. Create collaborative RFx (SRM Server)

This process step is modified if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function. If you have activated this business function, the bidder can bid offline and modify the RFx response they submit. 2. Update collaborative documents in SAP Product Lifecycle Management (SAP PLM) using cFolders (SAP cProject Suite) 3. Approve publication of collaborative RFx (SRM Server) 4. Publish collaborative RFx (SRM Server) 5. Create and submit RFx response for collaborative RFx (SRM Server) This process step is modified if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function. If you have activated this business function, the bidder can bid offline and modify the RFx response at line item level. 6. Update collaborative documents in SAP PLM using cFolders (SAP cProject Suite)

1.4.1.8 Evaluating Bids or RFx Responses You use this business process to evaluate bids received in response to an auction, or RFx responses received in response to an RFx, and to decide and award the winning bid or RFx response. You can integrate the award of a winning bid or RFx response in an approval workflow.

Process

The following business process runs in the SRM Server system: 1. Open Bid or RFx Response Open the bid or RFx document and choose Responses and Awards to display all bids or RFx responses from all bidders. Select the bid or RFx response and open the bid or RFx response document to view the complete details. 2. Evaluate Bid or RFx Response You can open the responses from all bidders in the Bid Comparison view. In this view, the purchaser can compare the responses of all bidders. For each item, the submitted quantity, price, alternative

and supplementary items added by the bidder, and the answers submitted in response to the qualification questionnaire are available. 3. Award Bid or RFx Response You can award bids or RFx responses in the Responses and Awards or the RFx Response Comparison views. You can accept some or all of the items from a bidder. You can also accept responses from multiple bidders. 4. Approve Bid or RFx Response After accepting the RFx response documents, they are sent to the responsible purchasing manager for approval. A work item appears in the approving manager’s inbox.

1.4.1.9 Processing Bids and RFx Responses in the Supplier System You use this business process to create, publish, and change a bid or an RFx response in the supplier system. This enhances the security of the system by allowing the bidder to submit their bids or RFx responses from outside the SAP Supplier Relationship Management (SAP SRM) firewall. After the RFx has been published by the strategic purchaser in SAP SRM, the invited bidders can create bids or RFx responses in the supplier system. You can also submit a bid or an RFx response on behalf of a supplier outside the firewall in the supplier system, through surrogate bidding. In the case of an auction and during RFx response submission outside the firewall in the supplier system, bidders can indicate their participation prior to submitting a bid. The chat functionality is not available during RFx response submission outside the firewall in the supplier system. Bidders are allowed to change their bids or RFx responses, and can make updates to their responses until the submission deadline. If the RFx is changed after it has been published, bidders are informed of the change by e-mail, and can make updates to their RFx response accordingly. Changes made to an RFx, bid, or RFx response result in the creation of a new version. You can use version comparison functionality to display the differences between versions. RFx response modification allows bidders to offer different products and services than those requested by the purchaser. The bidder (Bidder Company) master data object can be created in the SAP SRM system and replicated to the supplier system. A default logon and password is then automatically created. This password is emailed to the registered address of the bidder company. A representative from the bidder company can use this logon and password to create contact persons. When RFx response submission outside the firewall is switched on, bidders and purchasers can only create contact persons in the supplier system, not in the SAP SRM system.

Prerequisites 

You have activated the SRM, Supplier Collaboration (SRM_SUCO_1) and the SRM, Supplier Collaboration 2(SRM_SUCO_2) business functions. You have also activated the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) and the RFx Response Submission Outside Firewall Improvements (SRM_702_BID_DECOUPLING_IMPR) Customizing switches.



You have completed the basic settings for SAP SRM in SAP Solution Manager under

Configuration SAP SRM Basic Settings for SAP SRM . 

You have completed the basic settings for Strategic Sourcing in SAP Solution Manager under Configuration SAP SRM Basic Settings for Strategic Sourcing .

Note When initializing the system, suppliers and bidders are replicated from the SAP SRM system to the supplier system in bulk using RFC modules.

Process The following business process runs in the supplier system: 1. Create and submit bid or RFx response 2. Change bid or RFx response 3. Withdraw bid or RFx response 4.

1.4.1.10 Analyzing Sourcing with RFx Purpose You can use this business process to analyze sourcing with RFx from different aspects. SRM delivers a number of reports focusing especially on this area. Based on best business practice, the reports can be immediately deployed, or they can be used as a starting point to define customer designed reports. A complete list of all queries available in the standard for NetWeaver 2004s is provided under service.sap.com/srminst. Choose Sourcing with RFx in the column Area.

Process Flow

The following business process runs in SAP BI: 1. System collects data 2. View reports 3. Work with reports

1.4.1.11 Extended RFx Processing You use this business process to assess technical and price-based RFx responses. This is part of a specialized process called tendering and includes two-envelope RFx response processing with the following optional steps: 

Tender fee payment



Earnest money deposit payment



Multiparty verification of RFx responses

Two-envelope RFx response processing is used when purchasing organizations want to evaluate RFx responses from bidders on not only price information, but also technical or other qualitative information.

This allows the purchasing organization to assess the RFx response by looking at the technical information first, before viewing the price information. Then, the purchasing organization decides whether or not to accept the RFx response. In this situation, the bidder must submit an RFx response containing technical information and price information. This differs from the standard RFx response, which contains price information only.

Prerequisites You have activated the business functionSRM, Supplier Collaboration (SRM_SUCO_1). You do not have to activate the business function SAP SRM Procurement for Public Sector Functions(/SAPPSSRM/SRM_PPS). If you have previously activated this business function, it remains active. You have performed the following activities in Customizing for SAP Supplier Relationship Management (SAP SRM) under:  SRM Server RFx

Extended RFx Process Two-Envelope RFx Response Activate/Deactivate Two-

Envelope RFx . 

SRM Server RFx

Extended RFx Process Two-Envelope RFx Response Define Basic Data for Two-

Envelope RFx Response . 

SRM Server RFx

Extended RFx Process Two-Envelope RFx Response Define Basic Data for

Technical RFx Response Folders 

SRM Server RFx

.

Extended RFx Process Simultaneous Logon Activate/Deactivate Simultaneous Logon

at RFx Response Opening . 

SRM Server RFx

Extended RFx Process Simultaneous Logon Define Basic Data for Simultaneous

Logon . You have also done the following: 

Activated two-envelope RFx response for the required transaction and publication type in transaction Maintain Table Views (SM30), view /SAPPSSRM/V_TNDR.



Activated the simultaneous logon function for the required transaction and publication type in transaction Maintain Table Views (SM30), view /SAPPSSRM/V_TNDR.

Process

The following business process runs in SAP SRM and SAP Product Lifecycle Management (SAP PLM) cFolders systems. You can navigate from one system to the other using the SAP NetWeaver portal or the SAP NetWeaver Business Client (NWBC). Purchaser Creates New RFx Document for Two-Envelope RFx Response 1. The purchaser creates an RFx document of a transaction type that is customized for two-envelope response. 2. The purchaser enters the submission deadline for the RFx document, and also sets two opening dates - one for the technical RFx response and another for the price response. 3. The purchaser adds bidder contacts who respond with the RFx response.

4. The purchaser adds items using product search or retrieves details from a catalog. 5. The purchaser can add and weight questions for the bidders to respond. 6. The purchaser chooses Technical RFx to create a cFolders collaboration room area for the RFx document, and to create the necessary subfolders. For example, the purchaser can create an external folder, where public documents are uploaded. 7. The purchaser can additionally add new users and assign read, write, or administrator authorizations to the users. Purchaser Defines Tender Fee Payment Details (Optional) If a tender fee is required from bidders before submitting their two-envelope RFx responses, the following steps must be performed before publishing the RFx document:. 1. The purchaser specifies whether or not the tender fee is required. 2. The purchaser specifies the tender fee amount. 3. The purchaser sets a submission deadline for tender fee payment. Purchaser Defines Earnest Money Deposit Details (Optional) If earnest money deposit must be paid by winning bidders, the following steps must be performed before publishing the RFx document: 1. The purchaser specifies whether or not the earnest money deposit is required. 2. The purchaser specifies the earnest money deposit amount. 3. The purchaser sets the submission deadline for earnest money deposit payment. Purchaser Defines Multiparty Verification Settings (Optional) If multiparty verification (simultaneous logon) is required to open the two-envelope RFx responses, the following steps must be performed before publishing the RFx document: 1. The purchaser chooses Permissions in the identification area to set the multiparty verification authorization. 2. The purchaser also sets his or her own user ID or that of an authorized purchasing officer and defines the user ID as Bid Floor Admin. 3. The purchaser can set the user ID of an authorized technical officer, from the purchasing company, to technical opener. 4. The purchaser can set the user ID of an authorized purchasing officer or manager, from the purchasing company, to price opener. 5. The purchaser can add one or more users as technical evaluators to evaluate technical RFx responses. 6. The purchaser can add additional users as stakeholders of the RFx document and they can participate in the multiparty verification process. Purchaser Publishes the Two- Envelope RFx Document 1. The purchaser publishes the RFx document. 2. The bidders who were invited to participate, are notified by e-mail or fax according to the settings for the bidder. Bidder Pays Tender Fee (Optional) The bidder must pay the tender fee before being allowed to submit the two-envelope RFx response. 1. The bidder opens the RFx document. 2. If tender fee payment is required, the bidder cannot create a response document until the tender fee is paid.

3. The bidder navigates to the payment gateway from the RFx document and pays the tender fee. 4. The bidder can then create a new RFx response. Bidder submits Two-Envelope RFx Response 1. The bidder receives a notification for the RFx document. 2. The bidder logs on to the SRM system to view the RFx document. 3. The bidder creates a new RFx response. 4. The system creates a unique folder for the bidder in the cFolders collaboration room and assigns write authorization for the bidder. 5. The bidder chooses Technical RFx Response, navigates to the cFolders collaboration room, and uploads the documents to the assigned folder. 6. The bidder enters the submitted quantity and price details in the Item Overview section. 7. The bidder then submits both the technical and price RFx responses. Bidder Makes Earnest Money Deposit (Optional) The bidder pays the earnest money deposit where required. 1. The bidder opens the RFx document. 2. If the earnest money deposit payment is required, then the bidder navigates to the payment gateway from the RFx document and pays the deposit amount. 3. Alternatively, the bidder can send payment by check or bank draft to the purchaser. 4. The purchaser updates the earnest money deposit payment in the system at a later stage. Two Envelope RFx Response Opening and Evaluation The following steps are required when multiparty verification is not enabled: 1. The purchaser initiates the technical RFx response opening. 2. The technical evaluation panel evaluates the technical RFx responses. 3. The technical evaluators navigate to the cFolders collaboration room and submit their feedback in the Evaluationfolder. 4. The purchaser then navigates to the technical RFx response overview and accepts or rejects each technical RFx response according to the decision of the evaluation panel. 5. Depending on the settings made in Customizing, an e-mail notification is sent to all bidders notifying them of the decision of the evaluation panel. And, if configured, the price RFx responses of bidders whose technical RFx responses were rejected by the evaluation panel are automatically rejected. 6. The purchaser then initiates price RFx response opening. 7. The price evaluation panel evaluates the price RFx responses of the bidders who were shortlisted by the technical evaluation panel. 8. An award is made. Two-Envelope Response Opening with Multiparty Verification (Optional) The following steps are required when multiparty verification is enabled. The verification happens before the actual response opening. 1. When the purchaser opens the technical RFx response, the system sends an e-mail notification to all users with the technical opener role informing them that they need to approve the process. They have a defined period of time to complete the approval process 2. The technical RFx response opener navigates to the Simultaneous Logon application and approves the process by entering his or her system password.

3. This step is repeated by all users who have been assigned the technical opener role by the purchaser. 4. The system updates the process overview with the users’ approval status. 5. When all RFx response openers have approved the opening process, the system gives the process the status successful and makes the RFx response available for the evaluation process.

Note If the process has not been approved by all RFx response openers by the end of the approval period, the purchaser can either extend the process or the process fails and all users taking part in the process are informed of the failed opening. In this case, the process must be initiated again by the purchaser. 6. The technical RFx responses are evaluated by the evaluation panel and the above steps are repeated for the price RFx responses.

Note After the technical and price RFx responses have been opened, you must complete steps 2–8 of the previous process Two Envelope RFx Response Opening and Evaluation. 7. An award is made.

1.4.2 Strategic Sourcing with Live Auction You can use this business scenario to source goods using auctions. With auctions, you can, for example, define bidding rules. Bidders can submit bids in real time in a separate live auction application. You can use this business scenario with or without integration of the sourcing application. The sourcing application helps you, as a professional purchaser, to process your requirements and to determine the best source of supply. After you have received bids from suppliers, you can create a purchase order or contract (local or global outline agreement) directly from the sourcing application or in SAP Bidding Engine as a result of the auction.

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 http://service.sap.com/instguides 

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

Process 1. Processing Shopping Carts 2. Processing Purchase Requisitions in ERP 3. External Sourcing for Purchase Requisitions 4. Searching for Sources of Supply Centrally 5. Conducting Live Auctions 6. Evaluating Bids or RFx Responses 7. Processing Follow-On Documents 8. Analyzing Sourcing with Live Auction

1.4.2.1 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.

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 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

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.

1.4.2.2 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: 

■ In a Supplier Relationship Management (SRM) classic scenario



■ 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.

1.4.2.3 External Sourcing for Purchase Requisitions In order to generate follow-on documents for purchase requisitions created in the SAP ERP system, you must assign a valid source of supply. If there are no valid sources of supply in SAP ERP, the purchaser can carry out external sourcing using the SAP SRM system. There are two processing modes available for transferring purchase requisitions to the SAP SRM system: 

Background mode Purchase requisitions are transferred to SAP SRM automatically, and are created as external requirement documents in the SAP SRM system. Subsequently, the purchaser can process and convert the external requirement document into a follow-on document (for example, a purchase order, contract, RFx or auction) directly in the SAP SRM sourcing application.



Online mode Purchasers transfer purchase requisitions manually using the Collaborative Processing of Purchase Requisition (CPPR) application. In online mode, purchasers can choose to either transfer purchase requisitions to SAP SRM by creating an external requirement document in SAP SRM, as in background mode, or create an RFx for the purchase requisition directly in SAP SRM. If the purchaser chooses to create an RFx directly in SAP SRM, no external requirement is generated for the purchase requisition.

Note Before you configure this process, you must first configure the basic settings for the Plan-Driven Procurement with Plant Maintenance business scenario. You do this in SAP Solution Manager under

SAP SRM

Basic Settings for Plan-Driven Procurement Basic Settings for Plan-

Driven Procurement with Plant Maintenance .

Process The following business process runs in SAP SRM: 1. Start Collaborative Processing of Purchase Requisitions (CPPR) application 2. Create RFx from CPPR 3. Transfer purchase requisition to SAP SRM sourcing application

More Information For more information on Collaborative Processing of Purchase Requisitions, see Collaborative Processing of Purchase Requisition CPPR.

1.4.2.4 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. 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 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.

1.4.2.5 Conducting Live Auctions You can use this business process to host and manage online auctions in a real-time environment. Auctions can drive bottom-line results significantly by putting suppliers into direct competition with each other. You can generate an auction automatically, for example, via the sourcing application, add any information needed to start the bidding process, and notify all selected suppliers. You can also create auctions directly from an RFx, which enables you to include existing bids in the auction. You can also copy an existing auction or use a template to create a new auction, and download an auction for offline editing. You can set the following auction parameters: 

The level of bid decrement for each new bid submitted



Whether items should end on a cascading basis



Group together certain items as a lot



Allow bidders to submit a minimum bid, which is used by the system to bid on their behalf



Auction profiles, such as English Auction, Blind Bidding Auction, Rank Only Auction, Company Best Bid Auction, and Dutch Auction

After you have activated the auction, the invited bidders can submit their bids. Based on the parameters you set when creating the auction, bidders can view the current best bid and how their bids rank in comparison with other bidders. The bid history is updated as new bids are received. The bid information, to which bidders also have access, is displayed graphically. Bidders can communicate with you via a chat message panel. You can use the chat message panel to communicate with individual bidders or to send a broadcast message to all bidders.

At the end of the auction, all bid information is copied to the SAP SRM back-end system. You can reject or accept bids, then create a purchase order or contract using a one-step approval workflow. The Live Auction Cockpit is available in both Java and ABAP. The following deployment options are available: 

Live Auction Cockpit on Java Web Server



Live Auction Cockpit on ABAP Web Server



Live Auction Cockpit on Java Web Server in supplier self-services



Live Auction Cockpit on ABAP Web Server in supplier self-services

Note Implementing Live Auction Cockpit on ABAP Web Server reduces Total Costs of Ownership (TCO) for customers who do not want to install and configure the Live Auction Web Presentation Server (WPS) separately.

Process 1. Convert RFx to auction 2. Create auction

3. Upload auction from file 4. Complete and save auction 5. Publish auction 6. Activate auction 7. Moderate auction 8. Access auction 9. Submit bid 10. End auction 11. Create RFx Responses 12. Evaluate and award Bid and RFx Responses 13. Create and submit bid for auction in supplier self-services

Note This step is only available if you have activated the SRM, Strategic Sourcing Innovations(SRM_SOURCING_1) business function and the Live Auction on ABAP Server(SRM_701_LIVE_AUCTION_ABAP) Customizing switch.

Note If you want to process bids outside the SAP SRM firewall, you must activate the SRM, Supplier Collaboration(SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall(SRM_701_SUCO_BIDDER_DECOUP) Customizing switch.

1.4.2.6 Evaluating Bids or RFx Responses You use this business process to evaluate bids received in response to an auction, or RFx responses received in response to an RFx, and to decide and award the winning bid or RFx response. You can integrate the award of a winning bid or RFx response in an approval workflow.

Process

The following business process runs in the SRM Server system: 1. Open Bid or RFx Response Open the bid or RFx document and choose Responses and Awards to display all bids or RFx responses from all bidders. Select the bid or RFx response and open the bid or RFx response document to view the complete details. 2. Evaluate Bid or RFx Response You can open the responses from all bidders in the Bid Comparison view. In this view, the purchaser can compare the responses of all bidders. For each item, the submitted quantity, price, alternative and supplementary items added by the bidder, and the answers submitted in response to the qualification questionnaire are available. 3. Award Bid or RFx Response You can award bids or RFx responses in the Responses and Awards or the RFx Response Comparison views. You can accept some or all of the items from a bidder. You can also accept responses from multiple bidders. 4. Approve Bid or RFx Response After accepting the RFx response documents, they are sent to the responsible purchasing manager for approval. A work item appears in the approving manager’s inbox.

1.4.2.7 Processing Follow-On Documents When creating an RFx or a live auction, you can decide if a purchase order and/or purchasing contract can be created as a follow-on document. After the submission deadline for the RFx or auction, you decide whether to reject or accept a bid. After the accepted bid has run through an approval workflow, you can use this business process to create the follow-on documents. In Customizing, you can determine whether the follow-on documents are generated locally or in a back-end system.

Process

1. Create purchase order in SAP SRM (SRM Server) 2. Create purchase order in SAP ERP (SAP ERP) 3. Create contract in SAP SRM (SRM Server). This process step is modified if you have activated the SRM, Service Procurement Innovations (SRM_SERVICE_PROC_1) business function and the Central Contract Management (SRM_701_SERV_PROC_CCM) Customizing switch. 4. Create contract in SAP ERP (SAP ERP)

1.4.2.8 Analyzing Sourcing with Live Auction Purpose You can use this business process to analyze sourcing with live auction from different aspects. SRM delivers a number of reports focusing especially on this area. Based on best business practice, the reports can be immediately deployed, or they can be used as a starting point to define customer designed reports. A complete list of all queries available in the standard for NetWeaver 2004s is provided under service.sap.com/srminst. Choose Sourcing with Live Auction in the column Area.

Process Flow

The following business process runs in SAP BI: 1. System collects data 2. View reports 3. Work with reports

1.5 Operational Contract Management You use this business scenario to access SAP SRM contract features, such as contract hierarchies, discount across contract hierarchies, contract negotiation, and contract monitoring and analysis. Contract management enables purchasers from various parts of a company — at different locations — to take advantage of the terms of globally-negotiated contracts for specific product categories. If a contract is categorized as confidential, you can provide users with specific levels of authorization. You create a central contract in SAP SRM, and from there it can be used as a source of supply in both SAP SRM and SAP ERP. Either the relevant data is sent to SAP ERP for source of supply determination, or a specific type of contract or scheduling agreement is sent to SAP ERP directly.

Note The price is determined in SAP SRM before the SAP ERP purchase order is sent to the supplier. Central contracts are distributed to SAP ERP by release-authorized purchasing organizations, and these organizations can then use the corresponding contract and scheduling agreement documents as sources of supply in the appropriate SAP ERP system. Contract hierarchies can be used to organize, structure, display, and search for contracts. If you use SAP NetWeaver Business Intelligence (SAP BI), you can view various consolidated reports of contract management. For example, you can view aggregated value released against all contracts in a specific contract hierarchy. In addition, the new analytics functions of SAP SRM provide analysis of contract information, enabling purchasers to make strategic decisions.

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. Define Usage of Central Contracts 2. Developing Contracts 3. Processing Contracts and Sourcing Rules in ERP 4. Negotiating Contracts 5. Process Delivery Schedules 6. Searching for Sources of Supply Centrally 7. Monitoring Contracts

1.5.1 Define Usage of Central Contracts You use this business process to further process central contracts that you have created in the business processDeveloping Contracts. This process allows you to use hierarchies to structure and organize your contracts, and use quota arrangement to determine the distribution of your contracts. Contract hierarchies consist of multiple levels; for example, contracts can be categorized into global, regional, or local contracts. A purchaser can use contract hierarchies — or parts of hierarchies — to make multiple changes to contracts. Contract hierarchies can also be used to define discounts based on the aggregated release values for contracts within a hierarchy.

Note The discount provided within a contract hierarchy is in addition to any preexisting discounts defined in individual contracts in the hierarchy. Purchasers use quota arrangements to determine if a particular requirement is expected from a supplier in a product or product category, and to determine which contract to use as a source of supply. A contract with the highest priority according to the quote arrangement rules will always be selected first; that is, a contract with the greatest difference between target percentage and current percentage. If the sourcing result is ambiguous (for example, because there are several relevant quota arrangements), all of the possible sources of supply are displayed. The purchaser can then choose which of these is to be used to fulfill the purchase order, and can create a purchase order based on the relevant contract.

Process Define Usage of Contracts

The business processes run in SAP SRM Server: 1. Define contract hierarchies 2. Define quota arrangements

1.5.2 Developing Contracts You use this business process to create contracts, trigger the approval process, inform purchasing organizations about released contracts and output contracts, change existing contracts, and reassign the workload of employees involved in contract management. Purchasers can create contracts in a number of different ways: 

Copy an existing contract



Use an existing template



Upload an external file



Upload a contract from the catalog



Convert the result of an RFx response or auction

 Use data from the Sourcing application Before implementing the Contract Management business scenario, the purchasing organization determines which purchasers should receive authorization to create and use contracts. It is also possible to categorize contracts as "confidential", which means that users need special authorization to access these contracts. In the contract itself, the purchaser can then decide whether or not other users should receive authorization to display or change certain parts of the contract. Users are therefore provided with different levels of authorization. You can use this business process to distribute the data of an approved central contract to authorized purchasing organizations in the back-end SAP ERP or SAP SRM system. You can send them an e-mail about the approved contract. The purchasing organizations can register themselves to use this central contract for their requisitions, purchase orders, limit confirmations, and invoices. After you have approved the contract, the system creates a purchasing contract or scheduling agreement that serves as a source of supply either in Sourcing or in business objects such as requisitions or purchase orders in the back-end SAP ERP system. You select the contract to create a requisition, purchase order, limit confirmation, and invoice. The system then updates the contract in the SAP SRM system with the released value. You can configure whether you would like to group items that belong to the same release-authorized purchasing organization together into a single back-end contract or purchasing agreement, even if they belong to different locations. This requires you to create a contract with a ternary relationship between item, release-authorized purchasing organization, and location. Once the contract is complete, a workflow is triggered and the contract is sent to the responsible manager for approval if applicable. Once approval has been granted, the authorized purchasers can use the contracts to process purchase orders or invoices. In addition, you can upload the approved contract to SRM-MDM Catalog. You can also use this process to reassign the responsibility for a contract to another purchasing organization. This is necessary, for example, if an employee is on holiday or due to organizational changes. Apart from the generic search function, you can use a full text search supported by TREX that includes text fragments in documents attached to the contract. You can either make individual changes to contracts, or use the mass change function to make multiple changes to more than one contract at a time.

Process The following business process runs in SRM Server: 1. Assign general contract authorizations 2. Upload contracts from another system 3. Create contract 4. Use complex service hierarchies in contracts You can only use this step if you have activated the SRM, Service Procurement Innovations(SRM_SERVICE_PROC_1) business function and the Central Contract Management(SRM_701_Serv_Proc_CCM) Customizing switch. 5. Define discounts based on released values 6. Activate contract upload to catalog You can upload contracts with service hierarchies to SRM-MDM Catalog if you have activated the SRM, Catalog Innovations (SRM_CATALOG_1) business function and the Service Procurement Enhancements for SRM-MDM Catalog (CAT_701_CTR_UPLOAD) Customizing switch.

Note The Customizing switch can only be accessed as a standalone application, which you run using the following URL: http://(IP of the J2EE which catalog is Deployed on): HTTP Port/webdynpro/dispatcher/sap.com/tc~mdm~srmcat~enabler/MDM_SRM_SWITCH_APP ? To log on to this application and check the switch status, the user must have the following authorization on the J2EE server: 

Administrator role



Catalog Configurator Action assigned to this role. This is assigned using UME.

7. Complete contract 8. Release contract 9. Approve contract 10. Distribute contract to SAP ERP 11. Distribute scheduling agreement to SAP ERP 12. Group back-end contract 13. Output contract 14. Process workload distribution 15. Mass change for contract

1.5.2 Creating Central Contracts from SAP Sourcing Master Agreements You can use this business process to create a central contract from an SAP Sourcing master agreement. Purchasers use the SAP Sourcing application to carry out sourcing using auctions or RFxs. When an award is made to a supplier, an SAP Sourcing master agreement is created. Purchasers can then publish an SAP Sourcing master agreement to SAP Supplier Relationship Management (SAP SRM) as a central contract and distribute this contract document to one or more SAP

ERP backends in the form of outline agreements. Purchasers can use an outline agreement as a source of supply when processing purchase orders. Alternatively, purchasers can enter into an agreement with the supplier and the terms of this agreement can be captured in the SAP Sourcing master agreement and sent to SAP SRM to create a central contract. Purchasers can then extend this central contract with line items (material line items or service line items) in SAP SRM. They can then make the central contract operational and refer to it as a source of supply in open purchase orders.

Prerequisites You have installed the Network Solutions add-on for SAP Sourcing (software component ESOSRMIN) on the purchasing system (SAP SRM). SAP Sourcing master agreement replication is supported on SAP SRM 7.0 as of Support Package (SP) 02, on SAP enhancement package 1 for SAP SRM 7.0 as of SP03, on SAP enhancement package 2 for SAP SRM 7.0 as of SP01, and on SAP Sourcing Wave 9.

Process

1. Create master agreement from SAP Sourcing You can create a new master agreement by logging on to the SAP Sourcing application and choosing Contract Management Agreements Create Master Agreement . Select the SRM Integrated Master Agreement agreement type and add or edit basic and control information, such as the effective date and expiration date, and assign a supplier name. You can also create material or service line items and assign pricing conditions if applicable. If sub agreements exist, you create these sub agreements below the master agreements. It is particularly important to add the following data:  On the Integration tab, enter the purchasing organization and purchasing group (ensuring that the purchase organization and purchasing group are present in the SAP SRM system).



Select the transaction type of the central contract to be created, for example, Purchasing Contracts (PCTR).

2. Publish master agreement to SAP SRM as central contract You can trigger the publication of the master agreement to SAP SRM by choosing Agreement

Documents

Master

Publish to SRM . A service-oriented architecture (SOA) message creates a

new SAP SRM central contract. The replicated central contract ID number is attached in the header section of the master agreement. The newly created SAP SRM central contract is created in the SAVED status. Purchasers can now logon to the SAP SRM system to release the central contract. 3. Add line items to central contract in SAP SRM created from master agreement You can customize a master agreement document type to allow purchasers to maintain line items on the central contract that is created when the master agreement is published to SAP SRM. You carry out these customizing steps in the SAP Sourcing application under Setup Document Setup Agreements Master Agreement Types . On the Integration Details tab of the Master Agreement Type ensure that the following is selected: 1.

Allow SAP SRM to maintain line items for Master Agreements

2.

Allow SAP SRM to maintain line items for Sub Agreements

When you create a master agreement and customize it in this way, purchasers can add and maintain line items in the SAP SRM central contract replicated from that master agreement. Update master agreement in SAP Sourcing A central contract is created when you logon to the SAP Sourcing application, choose Contract Management, and open a master agreement that has been published to SAP SRM. Purchasers can modify header and control info data, for example, extend the expiration date. Purchasers can also add new line items, modify existing line item details, add or change pricing and condition scales, and add or change sub agreements.

Note Changes to the supplier name on the Supplier tab and changes to the transaction type of the central contract on the Integration tab are not supported during replication to an SAP SRM central contract. Publish master agreement updates to SAP SRM central contract You can trigger the publication of the master agreement to SAP SRM by choosing Agreement

Documents

Master

Publish to SRM . A SOA message then updates the already replicated SAP

SRM central contract. If the replicated central contract has been released, the update from the SAP Sourcing master agreement creates a new version of the SAP SRM central contract updated with these changes. The central contract is placed in the Saved status. The purchaser must then proceed to the central contract and set it to theReleased status. Cancel master agreement in SAP Sourcing and close SAP SRM central contract Logon to the SAP Sourcing application and go to Contract Management. When you open a master agreement that is already published to SAP SRM, a central contract is automatically created. Purchasers can cancel this master agreement by choosing Cancel under Documents. The purchaser is prompted to confirm the cancellation activity and proceed. The canceled master agreement becomes a read-only document and is removed from the list of active master agreements. A cancellation message is then sent by the system to SAP SRM, which closes the SAP SRM central contract.

Result The master agreement data is replicated to SAP SRM and appears as a central contract. Modifications or updates to the master agreement can be sent to the SAP SRM application.

1.5.3 Processing Contracts and Sourcing Rules in ERP Purpose You can use this business process to process contracts and sourcing rules. In the Materials Management Purchasing component, a contract is a type of purchase agreement. Release orders (releases) are issued for materials or services as required during a certain overall timeframe. Contracts can take the following forms: · Quantity contracts Use quantity contracts if the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders totaling a given quantity have been issued. · Value contracts Use value contracts if the total value of all release orders issued against the contract does not exceed a certain predefined value. The contract is regarded as fulfilled when release orders totaling a given value have been issued. You can also set up corporate buying contracts with your vendors. These are valid for all plants and company codes within a client. Info records are master data that you use to store information about a vendor and a material at purchasing organization or plant level. You can create purchasing info records for different procurement types (standard, subcontracting, pipeline, or consignment). The source list is used in the administration of sources of supply. It specifies the allowed (and disallowed) sources of a material for a certain plant within a predefined period – for example a fixed vendor. A quota arrangement divides the total requirement of a material over a period among certain sources of supply by assigning a quota to each source. You can use source lists and quota arrangements to control which source will be assigned to a demand in the manual or automated source determination processes. Pricing is used to describe the calculation of prices for external use (by customers or vendors) and costs for internal use, such as cost accounting. In this surrounding conditions represent a set of circumstances that apply when a price is calculated. This master data is stored in the form of condition records. The system always carries out the message determination process when an RFQ, a purchase order, a contract, an outline agreement, a scheduling agreement release, or a standard delivery schedule is created. It means that the system searches a message record whose key combination matches up with the values from the relevant purchasing document. Vendor master records contain important data about your vendors. You can also store data in the vendor master record that applies to certain specific organizational level (for example, company code, purchasing organization, plant) within your enterprise.

Process Flow

The following business process runs in SAP R/3 Enterprise: 1. Process vendor master data 2. Process message conditions 3. Process contracts in ERP 4. Process purchasing info records 5. Process source list 6. Process quota arrangement 7. Process conditions for procurement

1.5.4 Negotiating Contracts You use this business process to negotiate contracts in SAP Bidding Engine. You can: 

Negotiate a new contract



Renew an existing contract that has been released already To renew a contract that has been released already, you trigger the renewal process in the contract application of SAP SRM and the system transfers the data to SAP Bidding Engine automatically. The supplier then submits new contract details or updates existing ones, such as target value or conditions. If you accept the updated data from the supplier, the data is transferred to the existing contract.

This business process is modified if you have activated the SRM Service Procurement Innovations (SRM_SERVICE_PROC_1) business function. See process steps Negotiate contract and Renew contract below.

Process

The following business process runs in SRM Server: 1. Search for contracts 2. Negotiate 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 create a new contract with service hierarchies out of a winning bid. 3. Renew 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 update an existing contract with service hierarchies out of a winning bid.

4. Update contracts via mass update

1.5.5 Processing Delivery Schedules Purpose You can use this business process to process delivery schedules. Scheduling agreements are a form of purchase agreement for which the delivery of the total quantity is spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates. Scheduling agreements support the following procurement forms: · Standard · Subcontracting · Consignment · Stock transfer Scheduling agreement releases are issued to the vendor, instructing the latter to effect deliveries of the relevant material on the dates shown. A creation profile determines which event triggers the creation of a scheduling agreement release, how the delivery dates are displayed (aggregation and release horizon), and whether backlogs and immediate requirements are determined. A tolerance check can be carried out for releases that are created due to changes to the overall delivery schedule in the system. Scheduling agreement processing is heavily integrated with planning functions: The scheduling agreement releases can result directly from a planning run without requiring further involvement of a purchaser. Before you can use scheduling agreements, you must maintain the source list, including the MRP indicator for relevant items. Vendors can issue confirmations (order responses) to the relevant purchasing organization indicating their compliance or non-compliance with the scheduled delivery dates. You can work with or without release documentation for scheduling agreements. · With release documentation The schedule lines in the system have internal character and are not transmitted to the vendor until you explicitly create a scheduling agreement release. This may take one of two forms: 

¡ Forecast (FRC) delivery schedule



¡ Just-in-time (JIT) delivery schedule

All scheduling agreement releases are stored in the system. Thus you can monitor the scheduling agreement releases, or compare selected scheduling agreement releases with each other. · Without release documentation The schedule lines are immediately transmitted to the vendor.

Process Flow

The following business process runs in SAP R/3 Enterprise: 1. Create/process scheduling agreements 2. Release scheduling agreements 3. Transmit and monitor scheduling agreements 4. Process delivery schedules and releases 5. Transmit and monitor delivery schedules 6. Administrate scheduling agreements 7. Monitor/view list display of scheduling agreements

1.5.6 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. 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 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.

1.5.7 Monitoring Contracts You use this business process to monitor contracts by using: 

Different types of alerts or e-mail messages concerning particular events in SAP SRM



Reports in SAP NetWeaver Business Intelligence (SAP NetWeaver BI)



Context-sensitive graphical reports in SAP SRM

Alerts and Messages Examples of predefined, configurable events are: 

The validity period of a contract is about to expire



The greatest possible release quantity will soon be reached



A new contract has been released



A purchaser has moved within the organization



The processing time for a contract has been exceeded

You can determine: 

The type of alert or message the system should generate when a particular event happens, with an appropriate text and deadline for the event

 Who in your organization should receive that alert or message For more information, see SAP Help Portal at http://help.sap.com Supplier Relationship Management

SAP Business Suite

Functions Administrative Functions SRM Alert Management

SAP .

Reporting Consolidated reports allow you to view the following in a hierarchical form: 

All the purchase orders and invoices created against all the contracts in SAP SRM and SAP ERP systems



All the purchase orders and invoices created with all the suppliers in SAP SRM and SAP ERP



The product categories created in SAP SRM and SAP ERP

There is also a report where you can view the volume of spend released from purchase orders that were created with no reference to a contract. For more information, see SAP Help Portal at Supplier Relationship Management

http://help.sap.com

SAP Business Suite

SAP

Functions Central Contract Management .

Context-Sensitive Graphical Reports If you have activated the SRM, Analytics (SRM_ANALYTICS_1) business function and the Embedded Analytics for Purchasers (SRM_701_EMB_ANALYTICS) Customizing switch, a list of context-sensitive reports is available on a side panel. From there, you can drag a report into your work area whenever you want to perform an analysis on one or more contracts. The following graphical reports are available for the Contract Management work center: 

Contract Compliance (SAP NetWeaver BI)



Contract Condition Compliance (SAP NetWeaver BI)



Contract Spend (SAP NetWeaver BI)



Maverick Buying (SAP NetWeaver BI)



Contract Essentials (SAP SRM)



Expiring Contracts (SAP SRM)



Contract Lifecycle (SAP SRM)



Alternative Sources of Supply (SAP SRM)



Upcoming Activities (SAP SRM)

1.6 Supplier Qualification You can use this business scenario to allow suppliers to register themselves using a link on your company’s homepage. The suppliers assign themselves to one or more product categories upon registration. As a purchaser, you can define questionnaires pertaining to product categories, as well as questionnaires that are independent of product categories, to collect more general information. Once suppliers have registered, the registration system sends them one or more questionnaires. This way, you as a purchaser have additional detailed information available on potential suppliers. For you as a purchaser, the suppliers that register by means of this qualification process are all potential new business partners. Once you have accepted the suppliers as potential business partners, the suppliers can be transferred to SAP Supplier Relationship Management using a defined interface (as a desired participant in an RFx, or as part of a supplier list, for example). Suppliers can be locked either temporarily or completely because they have supplied goods or services of inferior quality, or because of a poor business relationship. The purchaser can also decide whether suppliers should be authorized to change their own data, and create follow-on documents such as invoices in supplier self-services. Any changes made to a supplier master record can then be transferred to the relevant back-end system using SAP NetWeaver Process Integration. This business scenario is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function, and the Customizing switch Supplier Self-Registration (SRM_701_SUCO_SUP_REG). If you have done so, you have the following additional options: 1. You can also transfer suppliers from the registration system to Materials Management. 2. You can use supplier self-services as the registration client for potential suppliers and do not need another system – in addition to SRM Server – to run this scenario.

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: 

Registering Suppliers



Managing Supplier Relationship

1.6.1

Registering Suppliers

You can use this business process to make it easier for you as a purchasing professional to identify and select qualified suppliers. Questionnaires that can be sent to potential suppliers enable you to gather relevant information on their qualification.

Suppliers get in contact with your company by registering themselves, using a link on your company’s homepage. At the same time, they can assign themselves to specific product categories. The questionnaires can be customized to include information such as compliance with required standards, support for relevant business practices, or logistical capabilities for the on-time delivery of quality products or services. The questionnaires are typically used to make initial contact, but can also be an invaluable source of information throughout the course of the relationship. Answers can be evaluated, stored, and used throughout the entire sourcing cycle to support additional supplier selection needs as they arise. After reviewing the questionnaires, you can accept the suppliers to integrate them into further processes, such as RFxs, or order processing. When you are searching for new suppliers for RFxs or order collaboration, you can access the supplier registration system and transfer suppliers into SAP Supplier Relationship Management (SAP SRM) using a standardized interface, the Open Partner Interface (OPI). In addition, external content providers, such as Hoppenstedt or Dun & Bradstreet, can also be connected using OPI. Currently, the business partners created using the OPI can be used in SRM business partner maintenance, in the Sourcing application, in SAP Bidding Engine, and in Live Auctions. This business process is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch Supplier Self-Registration (SRM_701_SUCO_SUP_REG). If you have activated the business function and the Customizing switch, you can also transfer suppliers from the supplier registration client (supplier self-services) to one or more ERP back-end systems. You can use the RFx process in SAP SRM as an optional qualification step, which you can integrate into the process. If you do so, you have a three-step qualification process, including supplier self-services, SAP SRM and Materials Management (MM). If you do not use RFx, you can also transfer suppliers directly from supplier self-services to MM. The transfer occurs using an ALE / IDOC interface (CREMAS). Since this is a standard technology for the transfer of business partners, it is also possible to use this interface for transfers to third party systems.

Note After the transfer to ERP, the leading supplier master record is the one in the ERP system.

Process

1. Carry out self-registration Depending on whether you activate the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch Supplier Self-Registration ( SRM_701_SUCO_SUP_REG), you have the following options to carry out self-registration: 

Carry out self-registration (supplier self-services) If you have activated the business function and the Customizing switch, suppliers can register themselves using supplier self-services.



Carry out self-registration (separate supplier registration system) If you have not activated the business function, suppliers have to register using a separate supplier registration system (ROS).

2. Answer questionnaires When you activate the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch Supplier Self-Registration (SRM_701_SUCO_SUP_REG), the questionnaires are sent with higher security. A link to the questionnaire URL is used instead of an html attachment. 3. Approve suppliers Depending on whether you activate the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch Supplier Self-Registration ( SRM_701_SUCO_SUP_REG), you have the following options to approve suppliers: 

Approve suppliers (supplier self-services) If you have activated the business function and the Customizing switch, you can log on to the supplier self-services client to approve the newly registered suppliers after you have checked their data and questionnaires in SAP SRM.



Approve suppliers (separate supplier registration system) If you have not activated the business function, you approve newly registered suppliers in a separate supplier registration system (ROS).

4. Create business partner Depending on whether you activate the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch Supplier Self-Registration (SRM_701_SUCO_SUP_REG), you have the following options to create a business partner: 

Create business partner in SRM or MM (supplier self-services) If you have activated the business function, the supplier self-services client can still create the business partner in SAP SRM as described below, or additionally in Materials Management (MM). The strategic purchaser can replicate approved potential suppliers to MM from his or her worklist in supplier self-services. Depending on the system setup the supplier is now automatically transferred to MM using SAP NetWeaver Process Integration. Additionally, an e-mail to the account payable clerk is sent out. To enable the supplier to log on to supplier self-services, the supplier master data and user have to be transferred to supplier self-services. For more information, see SAP Help Portal at http://help.sap.com SAP Supplier Relationship Management Functions

Supplier Self-Services . 

Create business partner in SRM (separate supplier registration system) If you have not activated the business function, the strategic purchaser can transfer approved potential suppliers from the supplier directory (in the supplier registration system, ROS) to the SAP SRM system using OPI. The business partner in the SAP SRM system is created automatically. To enable the supplier to log on to supplier self-services, a contact person has to be created in SAP SRM. The contact person generates both a user and a password for supplier self-services.

1.6.2 Managing Supplier Relationship In this business process, suppliers can change their own data and send it to the purchaser for approval. If suppliers have sufficient authorization, they can log on to supplier self-services and make changes to their own data. These changes are passed on automatically to SAP Supplier Relationship Management (SAP SRM), where the purchaser has to approve the changes before they take effect. From SAP SRM, the changed data can be sent to the back-end system that is assigned to the supplier in question using SAP NetWeaver Process integration. Subsequently, the supplier's master data is updated with these changes automatically. A purchaser can lock suppliers in Materials Management or SAP SRM. When suppliers are locked, it is no longer possible to create documents for them. Suppliers might be locked because they provide poor quality, or because the purchaser has decided to use a different supplier. When suppliers are locked, the purchaser can still view the documents that already exist for this supplier. A purchaser can also change suppliers’ data. These changes are automatically transferred to supplier self-services. It is also possible to group together different suppliers to compile a supplier list. This list is based either on a product category, or on a specific product within a product category. The purchaser can prioritize the suppliers in the supplier list. This information is then made available to purchasers during sourcing.

Process

1. Assign supplier role (SRM Server) 2. Enable editing of own data (SRM Server) 3. Change own data (SRM Server) 4. Accept changes in supplier data (SRM Server) If you activate the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch Supplier Self-Registration (SRM_701_SUCO_SUP_REG), the purchaser can also monitor the changes done by the supplier in a change monitor in supplier self-services. After the purchaser accepts the changes, the accounts payable clerk is notified by an e-mail containing the data for a manual SAP ERP vendor update. New master data values in supplier self-services are valid only after the SAP ERP changes are replicated back to supplier self-services. 5. Change supplier data (SRM Server) 6. Lock supplier (SRM Server) 7. Create approved supplier list (SRM Server)

1.7 Catalog Content Management You can use this business scenario to import and manage product content, make this content available in an MDM data repository, and access it via the Web browser in your SAP Supplier Relationship Management (SAP SRM) procurement processes.

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 7.01 Master Guide on SAP Service Marketplace at http://service.sap.com/instguides



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

Process The business processes run as follows: 1. Managing Content in SRM-MDM Catalog 2. Searching in Catalog Data 3. Managing Service Content in SRM-MDM Catalog 4. Transferring Service Hierarchy from SAP ERP 5. Transferring Service Hierarchy and Non Hierarchical Items from RFx Response in SAP SRM 6. Displaying Flat Services 7. Storing and Displaying Sustainability Information

1.7.1 Managing Product Content in SRM-MDM Catalog As a Catalog Manager, you use this business process to manage product information such as: 

Catalog files (classification data)



Product content from suppliers



Product content from procurement systems (SAP ERP, SAP SRM)

This data can originate from MS Excel, XML, and TXT files for example, or directly from running database systems such as MS Access, Oracle, and MS SQL Server. In this process, you import classification structures and product data to the predefined repository structure of the SRM-MDM Catalog. Using this process, you can also upload contracts. You can match and merge product data from backend systems with product data from suppliers. You can check and enrich the product data, for example, check whether new data has been assigned to the correct category in the taxonomy, and enrich data with additional information such as images and attachments. Moreover, you can use workflow rules for the approval of catalog content. Finally, by means of search patterns, you maintain masks (views) and assign them to certain user groups. Using validations, you can define complex tests for all types of conditions and then run those tests against one or more records.

As an administrator, you can use this process to enable Web content. You configure the search screens of the SRM-MDM Catalog and provide the environment for catalog users to search the content of an SRMMDM Catalog repository via Web browser.

Process

1. Import product hierarchy (SRM-MDM Catalog) 2. Upload supplier product data (SRM-MDM Catalog) 3. Map imported hierarchy and products to repository (SRM-MDM Catalog) 4. Transfer info records and contracts from ERP (SAP ERP) 5. Transfer product data from SRM (SAP SRM Server) 6. Transfer contract data from SRM (SAP SRM Server) 7. Enrich product data (SRM-MDM Catalog) 8. Approve product data (SRM-MDM Catalog) 9. Define masks (SRM-MDM Catalog) 10. Define validations (SRM-MDM Catalog) 11. Enable web content (SRM-MDM Catalog)

1.7.2 Searching in Catalog Data As a catalog user, you use this business process to search for and select items in the data repository of the SRM-MDM Catalog. Once you have selected items, you transfer them to your procurement system, for example, to the shopping cart in SAP Supplier Relationship Management. This business process is modified if you have activated the SRM, MDM Catalog Innovations (SRM_CATALOG_1) business function. This business function allows you to customize the UI by adding, for example, a global search pane, and gives you greater flexibility in comparing search results.

Prerequisites The system administrator has configured the users in SAP MDM Console and the UI configuration manager has configured the search environment (Web Dynpro for Java) for the catalog users.

Process

The following business processes run in the SRM-MDM Catalog 1. Search for items. 2. Transfer data to procurement system.

Note If you are a catalog user with a Display Only role, you can only search for items, and cannot transfer data to the procurement system.

1.7.3 Managing Service Content in SRM-MDM Catalog As a Catalog Manager, you use this business process to manage service information such as: 

Catalog files (classification data)



Service content from suppliers



Service content from procurement systems (SAP ERP, SAP SRM)

This data can originate from MS Excel, XML, and TXT files for example, or directly from running database systems such as MS Access, Oracle, and MS SQL Server. In this process, an auto-import is available for: 

Service hierarchies from SAP ERP



Service hierarchies and non hierarchical items (from RFx Responses) from SAP SRM

You import classification structures and service data to the predefined repository structure of the SRMMDM Catalog. Using this process, you can also upload contracts. You can match and merge product data from back-end systems with service data from suppliers. You can check and enrich the service data, for example, check whether new data has been assigned to the correct category in the taxonomy, and enrich data with additional information such as images and attachments. Moreover, you can use workflow rules for the approval of catalog content. Finally, by means of search patterns, you maintain masks (views) and assign them to certain user groups. Using validations, you can define complex tests for all types of conditions and then run those tests against one or more records. As an administrator, you can use this process to enable Web content. You configure the search screens of the SRM-MDM Catalog and provide the environment for catalog users to search the content of an SRMMDM Catalog repository via Web browser.

Process

1. Transfer service hierarchy from SAP ERP with transaction MECCM (SAP ERP) You can only use this step if you have activated the SRM, MDM Catalog Innovations (SRM_CATALOG_1) and SRM, Service Procurement Innovations (SRM_SERVICE_PROC_1) business

functions. In particular, the Customizing switches CAT_701_CTR_UPLOAD and SRM_701_Serv_Proc_CCM are relevant. 2. Transfer Service Hierarchy and Non-Hierarchical Items from Central Contracts (SAP SRM) You can only use this step if you have activated the SRM, MDM Catalog Innovations (SRM_CATALOG_1) and SRM, Service Procurement Innovations (SRM_SERVICE_PROC_1) business functions. In particular, the Customizing switches CAT_701_CTR_UPLOAD and SRM_701_Serv_Proc_CCM are relevant. 3. Import supplier service data from supplier (SRM-MDM Catalog) 4. Map imported service hierarchy and services from SAP ERP to repository (SRM-MDM Catalog) 5. Transfer service hierarchy from SAP ERP (SAP ERP) 6. Transfer service hierarchy and nonhierarchical items from RFx from SAP SRM (SAP SRM ) 7. Transfer contract data from SAP SRM (SAP SRM ) 8. Enrich service data (SRM-MDM Catalog) 9. Approve service data (SRM-MDM Catalog) 10. Define masks (SRM-MDM Catalog) 11. Define validations (SRM-MDM Catalog) 12. Enable web content (SRM-MDM Catalog)

1.7.4 Transferring Service Hierarchy from SAP ERP Prerequisites 

The Model Service Specification (MSS) to be uploaded exists in the SAP ERP system and does not have the status Blocked or Configurable MSS.



The transaction MECCM is available in the SAP ERP system for uploading the MSS into the SRMMDM Catalog.

Procedure 1. Run MECCM in the SAP ERP system you are using for testing. 2. Enter the catalog name in the Catalog Designation sub-screen. This is a mandatory field. 3. Enter the date on which the price of the service master items is to be calculated. 4. Deselect the Test Run checkbox, and choose Execute. 5. Check the Log for any errors.

Result The service hierarchy has been transferred from SAP ERP to SAP SRM. Use transaction sxmb_moni to check that the XML containing the hierarchical structure and the XML containing the service items have been passed. To check that the service hierarchy has been transferred to the catalog, you can check the catalog UI to see ifCategories displays the header that was imported into the repository. When you select the header, the entire hierarchy (outlines and services) is displayed in the services table. Check if the outlines, service items, and their prices correspond to the ones uploaded from SAP ERP.

1.7.5 Transferring Service Hierarchy and Non Hierarchical Items from RFx Response in SRM Procedure 1. Log on as Purchaser. 2. Create a new RFx with hierarchical and non hierarchical items. 3. Publish the RFx. 4. Log on as Bidder. 5. Create an RFx Response. 6. Log on as Purchaser. 7. Accept the RFx Response. 8. Choose Responses and Awards and choose the RFx response from the bidder. 9. Choose Items tab. 10. Choose Publish to Catalog in the item table to transfer the items to the catalog.

Result Items are transferred and published to the catalog. To check this: 1. Run transaction SXMB_MONI, and check that three XMLs have been passed from SAP SRM to SAP Process Integration (SAP PI). 2. Check that the transferred hierarchy has been passed to the catalog and is visible in the catalog UI.

1.7.6 Displaying Flat Services You use this business function to display flat services in the service hierarchy catalog. You can quickly identify the service that is listed under various service structures and enable a one-click shopping. You can also view the structure details of the service line item in the service details view. You also have the flexibility to order a complete set of services in a service hierarchy or quick—order individual services. The flat service view enables the display of only the service line item associated with various service hierarchy structures. This view focuses on displaying the service line item to the user, unlike the Hierarchy view that focuses more on the hierarchical structures.

Prerequisites 

You have implemented SAP enhancement package 2 for SAP SRM 7.0



You have activated the switch CAT_702_UI_IMP.



You have activated the Business function, SRM Catalog Innovations 2 (SRM_CATALOG_2).

1.7.7 Storing and Displaying Sustainability Information You use this business process to store and display sustainability information in the SRM MDM catalog. You can upload or maintain sustainability data for the items stored in the catalog. This feature allows you to search and shop for sustainable items and transfer them to the procurement system, for example, to

the shopping cart in SAP SRM. You can also compare various products based on sustainability parameters. A new Sustainability Details tab page has been introduced on the Product Details screen that groups all the sustainability attributes for the items. This tab page displays the impact of these sustainability attributes by color coding them according to the rules defined in customization. The List view, Grid view and Thumbnail view have been enhanced to include columns for displaying images for sustainability indicator and certificates associated with the items. Additionally, on the Search Result screen, you can configure the sustainability indicators for better selection of products based on company sustainability policy.

Prerequisites 

You have implemented SAP enhancement package 2 for SAP SRM 7.0.



You have activated the Business Function, SRM, Catalog Innovations 2 (SRM_CATALOG_2) and the Customizing Switch Sustainability Enhancements for Catalog (SRM_702_CATALOG_SUSTAIN_ENH).

Process 

Add the standard sustainability fields to the catalog.



Configure the sustainability indicators in the catalog repository.



Assign the rules of sustainability indicators to the catalog items.



Configure the sustainability certificate



Add the new sustainability fields

1.8 ANALYTICS

1.8.1 Spend Analysis You can use this business scenario to analyze the expenditure of your company incorporating data from a wide range of heterogeneous systems as well as from all relevant business units and areas. SAP Supplier Relationship Management (SAP SRM) uses the business intelligence features of SAP NetWeaver to access connected systems and extract the information needed to gain insight into spending practices across the entire corporate group. The reports cover spending for direct and indirect material as well as for services. You can also configure your system to provide the following: 1. Capture of spend for procurement documents without any purchase order (PO) reference or other detailed information about the procurement 2. Harmonization of master data for reporting purposes, allowing for identification of duplicate suppliers and assignment of product to standard classification schemas such as the United Nations Standard Products and Services Code (UNSPSC) and eCl@ss. The harmonization can be done by using SAP NetWeaver Business Intelligence (SAP NetWeaver BI) Local Master Data Alignment (for limited data volumes). With these features, SAP SRM provides you with a clear view of procurement costs and supply-base data by highlighting consolidated spend volume, supplier redundancies, and demand aggregation opportunities.

Prerequisites You can implement this business scenario with different releases of the relevant application components. However, only certain combinations are valid. For more informations, see  SAP SRM Master Guide on SAP Service Marketplace at http://service.sap.com/instguides 

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

The SAP SRM-specific content is described in the SAP NetWeaver documentation at http://help.sap.com SAP NetWeaver SAP NetWeaver Library SAP Library NetWeaver Library

BI Content

Supplier Relationship Management Spend Analysis

.

Process 1. Consolidating Master Data Using BI Master Data Alignment

SAP

2. Analyzing Spend

1.8.1.1 Consolidating Master Data Using BI Local Master Data Alignment You can use this business process to consolidate and harmonize master data to support global spend analysis and other reporting. With SAP NetWeaver Business Intelligence (SAP NetWeaver BI) Local Master Data Alignment (LMDA) you can do the following: 

Identify and group duplicate suppliers providing visibility to spend volumes for the enterprise business partners using advanced matching strategies and automatic grouping



Group similar products for reporting purposes



Classify products and product categories to United Nations Standard Products and Services Code (UNSPSC) and eCl@ss, providing standardization of products across the enterprise

The rules for the classification and cleansing need to be built into the LMDA functionality. The functionality resides entirely in SAP NetWeaver BI and can be used instantly for master data already extracted to SAP NetWeaver BI, regardless of the source system. The use of the solution is limited to cases where the data volumes are not very high.

Prerequisites Procurement data must have already been extracted to SAP NetWeaver BI.

Process

The following business process runs in SAP NetWeaver BI: 1. Group suppliers 2. Group products 3. Assign products and product categories to UNSPSC and eCl@ss

1.8.1.2 Analyzing Spend You use this business process to analyze your spend volume from multiple dimensions using a number of reports delivered out-of-the-box with SAP Supplier Relationship Management (SAP SRM). Based on best

business practice, the reports can be immediately deployed, or they can be used as a starting point to define customized reports suitable for the business processes within each customer's organization. The user can track business volume with different partners, product categories, and contracts. Analysis can be done across the entire enterprise as well as on a detailed level, for example, for specific regions or business areas.

Process

The following business process runs in SAP NetWeaver Business Intelligence: 1. System collects data 2. View reports 3. Work with reports

1.8.2 Supplier Evaluation You can use this business scenario to evaluate your suppliers on the basis of Web-based surveys. To meet your specific requirements, you can configure individual surveys and questionnaires, select the criteria that you want to evaluate, and stipulate when the evaluation is to take place. After the data has been transferred to SAP NetWeaver Business Intelligence (SAP NetWeaver BI), several reports are available to help you to analyze the result, select suitable suppliers and negotiate best conditions. With the Supplier Survey Cockpit, you can create and distribute surveys. You can monitor incoming responses and send reminders to those who did not reply. SAP Supplier Evaluation is also integrated into the following SAP Supplier Relationship Management (SAP SRM) applications: 

Confirmation



Invoice



Supplier list

SAP Supplier Evaluation is used with the confirmation and invoice applications to evaluate day-to-day activities on the basis of operational documents. It is also applicable with the supplier list to improve the strategic and long-term supplier relationships.

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 http://service.sap.com/instguides 

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

Information about supplier evaluation and associated reports in BI is described in the NetWeaver Documentation at http://help.sap.com SAP NetWeaver BI Content SAP NetWeaver 7.0 BI Content

Supplier Relationship Management

Supplier Evaluation

Process The following business process runs in SAP BI: Evaluating and Monitoring of Supplier Performance

1.8.2.1 Evaluating and Monitoring of Supplier Performance

Purpose You can use this business process to evaluate suppliers using questionnaire-based surveys. In the Supplier Survey Cockpit you can easily create surveys and distribute them via e-mail. You define which suppliers should be evaluated, who should participate in the evaluation and which questionnaire should be sent out. You can monitor incoming responses and send out reminders to those who have not responded. Supplier Evaluation is also used with the confirmation and invoice applications to evaluate day-to-day activities on the basis of operational documents: · Triggered when entering a confirmation in SAP Supplier Relationship Management (SAP SRM) · Triggered when entering an invoice in SAP SRM It is also applicable in conjunction with the supplier list in SAP SRM.

Prerequisites A questionnaire has been created using the SAP WebSurvey tool. Data has been extracted to SAP NetWeaver Business Intelligence (SAP NetWeaver BI) for reporting.

Process Flow

1. Create questionnaire (SRM Server) 2. Define Evaluation process (SRMServer) 3. Capture and consolidate internal data (SAP NetWeaver BI) 4. Capture evaluation data from external sources (SAP NetWeaver BI) 5. Analyze supplier performance (SAP NetWeaver BI)

2 Business Functions and Customizing Switches You can selectively implement new functions or enhance existing ones by activating business functions. SAP Supplier Relationship Management (SAP SRM) favors a two-step activation process and a flexible approach for the implementation of new functions and the enhancement of existing functions. This approach uses business functions and Customizing switches. You use business functions to display Customizing activities and Customizing switches. Once the Customizing switches are visible, you use them to activate new fields or execute new code.

Business Functions For general information about business functions, see Introduction: Enhancement Packages and Business Functions For information about individual business functions, see the related documentation that is linked from the Switch Framework: Change Business Function Status screen. The documentation describes the business value, possible limitations, and dependencies.

Activation of Business Functions When you activate business functions, you activate Switch Framework switches (SFW switches). SFW switches directly control whether new Customizing activities and Customizing switches are visible. You can activate SAP SRM business functions in Customizing for SAP Supplier Relationship Management under SRM Server Activate Business Functions .

Deactivation of Business Functions In SAP SRM, you can deactivate a business function if the following applies: 

The business function only activates Customizing switches and does not directly activate any code or fields.



The Customizing switches corresponding to the business functions can be deactivated.

For more information, see the documentation of the individual business functions. To deactivate a business function, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Customizing Switches Customizing switches are Customizing activities that allow you to execute new code and display the related user interface elements, such as new fields, buttons, or columns. Customizing switches affect the user interface and the business logic as follows: 

They call soft switch methods in the code, so that some sections of the code are only executed if the Customizing switch is active.



The Customizing switch framework provides table columns where Customizing switches can be entered. This has the following effect:

o

If the Customizing switch is active, the table entries assigned to the Customizing switch are taken into account at runtime.

o

If the Customizing switch is inactive, the table entries assigned to the Customizing switch are ignored at runtime.

Activation of Customizing Switches You can find a list of all Customizing switches in Customizing for SAP Supplier Relationship Management under SRM Server Display Status of Customizing Switches . From here, you can also navigate to the Customizing activities where you activate or deactivate the Customizing switches. The documentation available with the Customizing activities provides further information, such as the initial status and the revertibility of the Customizing switch.

Deactivation of Customizing Switches Most of the Customizing switches are revertible and can be deactivated. A Customizing switch is revertible if the following applies: 

The function switched on using the Customizing switch only affects the business process or user interface, but not the data that is written to the database.



The function switched on using the Customizing switch does affect data written to the database, but you have not yet created a document with this function, so no data has yet been written to the database.

To find out whether a Customizing switch is revertible, see the documentation of the Customizing activity that you use to activate or deactivate the Customizing switch.

Note Some Customizing switches are active by default. You only have to deactivate them if you do not want to use the related function. Deactivating a Customizing switch can be useful, for example, to ensure that unused fields are not displayed unnecessarily. It also ensures that code sections are not executed unnecessarily, which can have a positive effect on system performance. In case of a one-to-one relationship of business function and Customizing switch, the Customizing switch is automatically activated when the business function is activated.

2.1 SRM, Strategic Sourcing Innovations Technical Data Technical Name of Business Function

SRM_SOURCING_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

RFx (SRM-EBP-BID)

Directly Dependent Business Function Requiring Activation in

Not relevant

Addition This business function enables you to speed up your sourcing cycle times: Suppliers can create RFx responses by entering data using an electronic form that closely resembles a paper form. This form is intuitive to use, thus minimizing supplier training. For more information, see the Offline Bidding section. You can grant higher flexibility to your suppliers when submitting RFx responses by enabling them to modify the RFx response at line item level. For more information, see the Bid and RFx Response Modification at Line-Item Level section. For purchasers, the comparison of bids and RFx responses has been enhanced. For more information, see theComparison of Bids and RFx Responses section. The Live Auction Cockpit, the user interface component for live auctions, can be implemented on an ABAP server. This allows you to avoid installing a Java server for this purpose. For more information, see the Live Auction on ABAP Server section.

Note We strongly recommend that you use the Live Auction on ABAP server. As part of the extended RFx process, you can use functions for collecting tender fees and earnest money deposits (EMD) from the interested bidders. The extended RFx process also allows for two-envelope RFx responses that include technical and price RFx responses. It also provides a simultaneous logon feature, enabling multiple stakeholders to log on to SAP SRM and provide their consent for technical RFx response opening or the price RFx response opening. For more information, see the corresponding sections below.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Software Component

SRM_SERVER 701

Features

Is Needed Only for the Following Features

Offline Bidding You can use an offline bidding form to allow your suppliers to respond to an RFx without having to log on to the SAP SRM application. When a purchaser publishes an RFx, an SAP Interactive Form by Adobe is sent as an e-mail attachment to all suppliers who are authorized for offline bidding. This document supports the following: 

Data entry for fields such as quantity, price, and price unit



Possibility to ask and respond to questions

If the suppliers decide to bid offline, they complete and submit the form using e-mail. The purchaser's SAP SRM system receives the e-mail, reads the attachment, and creates the RFx response. The offline bidding form is a simplified alternative to, but not a general replacement for, the existing online creation of RFx responses. If the RFx and the supplier are enabled for offline bidding, suppliers can choose to submit an RFx response online or use the offline bidding form. To implement this function, activate the Customizing switch Offline Bidding (SRM_701_OFFLINE_BIDDING) under SRM Server RFx Offline Bidding

Activate/Deactivate

Offline Bidding . For more information, see: 

Offline Bidding



Enabling Offline Bidding

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted under certain conditions. For more information about reverting the Customizing switch, see the related Customizing documentation.

Bid and RFx Response Modification at Line-Item Level You can allow your suppliers to modify their bids or RFx responses at line-item level. This provides them with greater flexibility when submitting their bids or RFx responses. To enhance this function, activate the Customizing switch Adaptable RFx Response Handling(SRM_701_RFX_RESP_FLEXIBILITY) under SRM Server RFx Extended RFx Process RFx Response

Activate/Deactivate Adaptable RFx Response Handling .

For more information, see Bid or RFx Response Processing.

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted.

Limits in Bidding Documents Limit items in procurement documents represent unplanned services, which play an indispensable role in service industries. To enhance this function, activate the Customizing switch Limit Items in Bidding Documents(SRM_701_LIMITS_IN_BIDDING) under SRM Server RFx Activate/Deactivate Limit Items in Bidding Documents . For more information, see RFx.

Note

This Customizing switch can be reverted.

Tender Fee Processing Tender fees are paid by prospective suppliers to access RFx documents and submit an RFx response. To implement this function, activate the Customizing switch Tender Fee (SRM_701_TENDER_FEE) under SRM Server RFx Tender Fee

Extended RFx Process Tender Fee and Earnest Money Deposit (EMD)

Activate/Deactivate

.

For more information, see Tender Fee Processing.

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted.

Earnest Money Deposit Handling Earnest money deposits are paid by prospective suppliers as a guarantee of fulfillment of contract. To implement this function, activate the Customizing switch Earnest Money Deposit(SRM_701_EARNEST_MONEY_DEP) under SRM Server RFx Extended RFx Process Tender Fee and Earnest Money Deposit (EMD)

Activate/Deactivate Earnest Money Deposit .

For more information, see Earnest Money Deposit Processing.

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted.

Two-Envelope RFx Response Two-envelope RFx responses allow suppliers to submit technical RFx response information separately from price information. To implement this function, activate the Customizing switch Two-Envelope RFx Response(SRM_701_TWO_ENVELOPE) under SRM Server RFx Extended RFx Process RFx Response Activate/Deactivate Two-Envelope RFx Response

Two-Envelope

.

For more information, see Two-Envelope RFx Response Processing.

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted.

Multi-Party Verification at RFx Response Opening Multi-party verification uses the simultaneous logon process to allow multiple users to approve RFx response opening by logging on to the system. To implement this function, activate the Customizing switch Simultaneous Logon at RFx Response Opening(SRM_701_SIMULTANEOUS_LOGON) under SRM Server RFx Extended RFx Process Simultaneous Logon Activate/Deactivate Simultaneous Logon at RFx Response Opening . For more information, see Simultaneous Logon at RFx Response Opening.

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted.

Live Auction on ABAP Server Live Auction on ABAP server provides you with an alternative to the Java-server-based live auction component and enables you to use the live auction functionality without installing and configuring the Live

Auction Web Presentation Server separately. For business users, working with live auctions on the ABAP server is identical to working on the Java server.

Note We strongly recommend that you use the Live Auction on ABAP server. For more information, see Live Auction Cockpit.

Note This Customizing switch is compatible with Procurement for Public Sector (PPS) and can be reverted.

2.2 SRM, Strategic Sourcing Innovations 2 Technical Data Technical Name of

SRM_SOURCING_2

Business Function Type of Business

Enterprise Business Function

Function Available From

SAP enhancement package 2 for SAP SRM 7.0

Technical Usage

SRM, Enterprise Portal, SAP NetWeaver Process Integration (SAP NetWeaver PI), SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

Application Component

SRM_SERVER

Required Business

SRM, Strategic Sourcing Innovations (SRM_SOURCING_1)

Function You can use this business function to do the following: 

Update purchasing info records and source list data automatically in SAP ERP



Create an RFx from a shopping cart with the statuses awaiting approval or saved



Change a purchase order for a direct material in SAP ERP



Display, compare, and evaluate bidders based on certain criteria including price



Review RFx responses from suppliers You can rank bidders and compile data into PDF files. This allows you to compare bidders and data.



Filter and search external requirements and visual the results in pie-chart form



Select fields in a shopping cart that trigger an approval workflow when they are edited

For more information, see the Features section.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for

SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites 

You have installed the following components as of the version mentioned: Type of Component

Component

Required for the Following Features Only

Software Component

SRM_SERVER 702

Not relevant

Features Info Record Update When you create or update a central contract, you can specify the purchasing info record update type on theDistribution tab page at item level. This allows the info record to be updated automatically in SAP ERP when the contract is released and distributed from SAP SRM. This feature is useful for purchasing departments involved in centralized sourcing and contract management. It automates the update of info records in SAP ERP, which ensures compliance with the prices negotiated in a central contract. To implement this function, activate the Customizing switch Info Record Update(SRM_702_UPDATE_INFO_RECORD) under

SRM Server Sourcing Activate/Deactivate Info

Record Update

Note The Customizing switch Info Record Update (SRM_702_UPDATE_INFO_RECORD) is not compatible with Procurement for Public Sector (PPS) and cannot be reverted.

Source List Update You can also specify the source list update type on the Distribution tab page. Similar to the info record update, this allows you to choose to update the source list record automatically in SAP ERP when the contract is distributed. This ensures compliance with new prices that are negotiated in the central contract. You can create or update a new source list record and decide if it should be fixed or blocked. A fixed source list consists of preferred sources that are valid over a certain period of time. A blocked source should not be used as a source of supply. To implement this function, activate the Customizing switch Source List (SRM_702_UPDATE_SOURCE_LIST) under Update

Note

SRM Server

Sourcing Activate/Deactivate Source List

The Customizing switch Source List Update (SRM_702_UPDATE_SOURCE_LIST) is not compatible with Procurement for Public Sector (PPS) and cannot be reverted. For more information about info records and source lists, see Central

Contract Distribution.

RFx Creation Before Shopping Cart Approval You can create an RFx from a shopping cart that has not yet been approved, that is, it has the status of Awaiting Approval or Saved. This allows you to start the shopping cart approval process and the RFx creation process simultaneously, which reduces the procurement time. By creating an RFx directly from the shopping cart before accessing the Sourcing application, purchasers can get a good estimate of the true value of a shopping cart before it is approved or rejected. To implement this function, activate the Customizing switch RFx Creation Before Shopping Cart Approval(SRM_702_RFX_FROM_SC) under

SRM Server

Sourcing Activate/Deactivate RFx Creation

Before Shopping Cart Approval

Note The Customizing switch RFx Creation Before Shopping Cart Approval (SRM_702_RFX_FROM_SC) is not compatible with Procurement for Public Sector (PPS) and cannot be reverted.

Direct Material This feature is enhanced to allow you to create purchase orders for direct materials in SAP ERP when performing the following actions: 

Ordering a shopping cart



Carrying out sourcing for the shopping cart



Carrying out sourcing for a purchase requisition transferred from the SAP ERP system

The user can create back-end documents such as, purchase requisitions or purchase orders in the relevant SAP ERP system, not just in the SAP SRM system. For a shopping cart with indirect or direct material, there is no longer any difference in creation of the follow-on documents. Features for direct materials are enabled or disabled in the follow-on documents, including in the documents created in SAP ERP. To implement this function, activate the Customizing switch Direct Material (SRM_702_DIRECT_MATERIAL) under

SRM Server Sourcing Activate/Deactivate Direct

Materials

Note The Customizing switch Direct Materials (SRM_702_DIRECT_MATERIAL) is compatible with Procurement for Public Sector (PPS) and cannot be reverted.

Active Bidders You can use the active bidders function to display, compare, and evaluate bidders based on certain criteria including price. By creating a prioritized list of bidders based on a specific parameter, you can tailor this list to reflect your current requirements. This information supports your decision making processes and lets you select and invite the appropriate bidder when you are creating an RFx. To implement this function, activate the Customizing switch Active Bidders (SRM_702_ACTIVE_BIDDERS) under Bidders

SRM Server

Analytics

Activate/Deactivate Active

Note The Customizing switch Active Bidders (SRM_702_ACTIVE_BIDDERS) is not compatible with Procurement for Public Sector (PPS) and can be reverted. For more information about this topic, see RFx.

RFx Response Simulation This feature allows purchasers to do the following when comparing responses from suppliers in the SAP Bidding Engine: 

Create a ranked list of bidders, presented in descending order. This ranks the best bidder at number one. The purchaser can also create a ranked list of bidders for a particular item.



Download the RFx response comparison results in PDF for traceability.



Customize the RFx response comparison results screen by adding or removing user interface (UI) fields to suit their requirements.



Avoid horizontal scrolling due to the reduced number of table columns on the RFx response comparison results screen.

These enhancements give the purchaser a comprehensive overview of bidders so that they can decide which RFx response best suits their requirements. To implement this function, activate the Customizing switch RFx Response Simulation(SRM_702_BID_SIMULATION) under

SRM Server RFx

RFx Response Comparison

Activate/Deactivate RFx Response Simulation

Note The Customizing switch RFx Response Simulation (SRM_702_BID_SIMULATION) is not compatible with Procurement for Public Sector (PPS) and can be reverted. For more information about this topic, see Comparison of

Bids or RFx Responses.

Sourcing Graphical Search You can use the sourcing graphical search to filter and search external requirements, based on various grouping categories, and to visualize the results in the form of a pie-chart. By graphically representing information about RFx documents in the SAP SRM system, sourcing graphical search provides a clearer view of sourcing events that lets you shortlist requisitions quickly and easily. The sourcing graphical search function allows you to list, search, and assign sources of supply for external requirements based on the following grouping categories: 

Priority



Delivery time range



Product category



Document value



Preferred Supplier



Purchasing group



Purchasing organization

You can click a pie-chart segment to search the requisitions in that category and to process the documents accordingly. You can then personalize these searches by saving groupings, filters, and default criteria for future use.

To implement this function, activate the Customizing switch Sourcing Graphical Search(SRM_702_SOURCING_GRAPH_SEARCH) under

SRM Server Analytics

Activate/Deactivate

Sourcing Graphical Search

Note The Customizing switch Sourcing Graphical Search (SRM_702_SOURCING_GRAPH_SEARCH) is not compatible with Procurement for Public Sector (PPS) and can be reverted. For more information about this topic, see Sourcing.

Approval Workflow for Changed Shopping Cart Fields You can select which fields in a shopping cart should trigger an approval workflow when they are edited. When assigning sources of supply to shopping carts in the Sourcing application, operational purchasers are able to make changes to the shopping carts. In some business scenarios, approval for these changes is required before a follow-on document can be created.

Note The default workflow is determined based on who creates the shopping cart. However, you can configure a separate workflow for this process. To implement this function, activate the Customizing switch Approval Workflow for Changed Shopping Cart Fields(SRM_702_SOURCING_SC_CHANGE) under

SRM Server Sourcing Activate/Deactivate

Approval Workflow for Changed Shopping Cart Fields

Note The Customizing switch Approval Workflow for Changed Shopping Cart Fields(SRM_702_SOURCING_SC_CHANGE) is not compatible with Procurement for Public Sector (PPS) and can be reverted.

2.3 SRM, Catalog Innovations Technical Data Technical Name of Business Function

SRM_CATALOG_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP Supplier Relationship Management 7.0

Technical Usage

SRM

Application Component

SRM-CAT-MDM

Directly Dependent Business Function Requiring

Not relevant

Activation in Addition You can use this business function to activate the following features:



Enhancements in the SRM-MDM Catalog provided for Service Procurement, such as uploading service hierarchies to the catalog from central contracts in SAP ERP or SAP SRM.



Functions enhancing the usability and flexibility of the SRM-MDM Catalog.



Integrating the SRM-MDM catalog with SAP SRM, using ABAP FTP function modules.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Software Component

SRM_SERVER 701

Java Software Component

SRM-MDM Catalog 7.01

Is Needed Only for the Following Features

Features Service Procurement In the area of Service Procurement, you can do the following: 

Upload service hierarchies to SRM-MDM Catalog from SAP ERP contracts and SAP SRM contracts.



Transfer service hierarchies, together with the associated contract information, from SRM-MDM Catalog to SAP ERP and SAP SRM. For more information, see Transferring Service

Hierarchies from SRM-MDM Catalog to SAP SRM 

Upload service hierarchies from Microsoft Excel files, using an MDM import manager function. For more information, see Transferring Service Hierarchies from Microsoft Excel.

To implement these functions, activate the Customizing switch Service Procurement Enhancements for SRMMDM Catalog (CAT_701_CTR_UPLOAD) in the MDM Catalog Enhancement Administration tool.

Caution This Customizing switch is compatible with Procurement for Public Sector (PPS). It is not revertible.

Enhanced Flexibility and Usability The following functions improve the usability and flexibility of the SRM-MDM Catalog:  As a new entry point to the catalog, the Home screen is available, providing different options to browse the catalog.



Easier navigation, due to a navigation pane that provides search options and displays the state of the



cart. It is available on every catalog screen. The comparison functions on the Item Details screen have been enhanced.



New customizing allows you to expand sales packages on the cart preview screen by default.

 A new screen allows you to display service item details. To use these functions, activate the Customizing switch SRM-MDM Catalog UI Redesign (CAT_701_UI_IMP) in theMDM Catalog Enhancement Administration tool.

Caution This Customizing switch is compatible with Procurement for Public Sector (PPS). It is not revertible.

Catalog Integration Using ABAP FTP Function Modules You can upload data available in the SAP Supplier Relationship Management (SAP SRM) system to a third-party catalog using APAP FTP function modules instead of SAP NetWeaver PI runtime settings. The system reads the file and FTP information you have defined in Customizing, not the information available in the Integration Directory. To implement this function, activate the Customizing switch Catalog Integration Using ABAP FTP(SRM_701_CAT_FTP_INTEGRATION) in Customizing for SAP Supplier Relationship Management under

SRM Server Cross-Application Basic Settings Integration with Other SAP Components

Integration Activate/Deactivate Catalog Integration Using ABAP FTP . For more information, see Catalog Integration Using ABAP FTP

Catalog

Function Modules.

Note The Customizing switch Catalog Integration Using ABAP FTP (SRM_701_CAT_FTP_INTEGRATION) is compatible with Procurement for Public Sector (PPS) and can be reverted.

2.3.1 Configuring Catalog Configurator Action with a User in User Management Engine To access the MDM Catalog Enhancement Administration tool, you must be either the J2EE administrator or you must have a role in the J2EE server to which the Catalog Configurator action has been assigned. You can use theUser Management Engine (UME) to make the assignment of the Catalog Configurator action to a role.

Prerequisites The J2EE server is running.

Procedure 1. Start the URL for accessing the User Management: http://J2EEServer:J2EEPort/index.html. The system opens a logon screen. 2. Log on as Administrator. 3. In Get, choose the option Role from the list. 4. Click Create Role or choose a role from the list. To create a new role, specify Unique Name and Description.

5. Navigate to Assigned Actions tab. In Available Actions, search for Catalog Configurator action. The Catalog Configurator service displays. 6. Select the row containing Catalog Configurator service and click Add. The Catalog Configurator service is added in Assigned Actions. 7. In Get, select the option User from the list. 8. Click Create User or choose a user from the list. To create a new user, specify Logon ID, Password, and Last Name. 9. Navigate to Assigned Roles. In Available Roles, search for the role that you specified in step 4 and select it. 10. Click Add. The role is added in Assigned Roles. 11. Click Save.

2.3.2 Activating Business Function and Customizing Switches in the MDM Catalog Enhancement Administration Tool You cannot activate the Java-based parts of the business function SRM, Catalog Innovations (SRM_CATALOG_1) and the related Customizing switches directly in the SAP SRM system. Instead, you do this in the MDM Catalog Enhancement Administration tool.

Prerequisites To log on to the MDM Catalog Enhancement Administration tool in the SRM-MDM Catalog system, you must be either the J2EE administrator or you must have a role on the J2EE server to which the Catalog Configurator action has been assigned. You can use the user management engine (UME) to make the assignment. For more information, see Configuring Catalog Configurator Action with a User in User Management Engine.

Procedure 1. To call up the MDM Catalog Enhancement Administration tool, enter the following URL in your Web browser:http://:/webdynpro/dispatcher/sap.com/tc~mdm~s rmcat~enabler/MDM_SRM_SWITCH_APP? 2. Specify the User Name and Password. The business function, the corresponding Customizing switches, and their statuses are displayed. Note the following: 

Green indicates that the switch is enabled

 Red indicates that the switch is disabled 3. Activate the SRM, Catalog Innovations business function by activating the following Customizing switches:  Service Procurement Enhancements for SRM-MDM Catalog (CAT_701_CTR_UPLOAD) As a prerequisite, you must have activated the business function SRM, Service Procurement Innovations(SRM_SERVICE_PROC_1) in the SAP SRM system. 

SRM-MDM Catalog UI Redesign (CAT_701_UI_IMP)

4. To enable the switch, click Activate in the Activation column.

2.4 SRM, Approval Process Technical Data Technical Name of Business Function

SRM_APF_IMPR_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

Workflow (SRM-EBP-WFL)

Directly Dependent Business Function Requiring Activation in

Not relevant

Addition You can use this business function to accelerate your approval processes and optimize them when you use theprocess-controlled workflow.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Software Component

SRM_SERVER 701

Is Needed Only for the Following Features

Features Asynchronous Processing of Workflow in Final Step The system can process the final step of a workflow template asynchronously. You can use this function to process documents with a very large number of items more efficiently.

To enhance this function, activate the Customizing switch Asynchronous Processing of Workflow in Final Step(SRM_701_APF_ASYNC_PRC_FINISH) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Business Workflow

Processing of Workflow

Activate Asynchronous

.

Note The Customizing switch Asynchronous Processing of Workflow in Final Step(SRM_701_APF_ASYNC_PRC_FINISH) is compatible with Procurement for Public Sector (PPS) and can be reverted.

Parallel Approval with Overlapping Responsibility Two or more agents approving a particular item can now receive the workflow work items in parallel at the same process level. This new function optimizes the approval process, as each agent receives a work item and can process it at any time. If all agents approve a work item, the document moves to the next approval level. If an agent rejects the work item, the approval process is reset and has to be restarted.

Note You can use this function for all purchasing documents. To enhance this function, activate the Customizing switch Parallel Approval with Overlapping Responsibility(SRM_701_APF_IN_PARALLEL) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Business Workflow

Overlapping Responsibility

Activate Parallel Approval with

.

For more information, see Agent Determination.

Note The Customizing switch Parallel Approval with Overlapping Responsibility (SRM_701_APF_IN_PARALLEL) is compatible with Procurement for Public Sector (PPS) and can be reverted.

2.5 SRM, Continuous Improvement CC Technical Data Technical Name of Business Function

SRM_CONT_IMPR

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 3 for SAP Supplier Relationship Management 7.0, SP02

Technical Usage

SRM

Application Component

Shopping Cart (SRM-EBP-SHP) Purchase Order (SRM-EBP-POR) Workflow (SRM-EBP-WFL) Notes and Attachments (SRM-EBP-CA-NA)

Sourcing Application (SRM-EBP-SOC) RFx (SRM-EBP-BID) Workload Redistribution(SRM-EBP-WKL) SRM-EBP-CA-UI Directly Dependent Business Function Requiring

Not relevant

Activation in Addition You can use this business function to enhance certain features of shopping cart and purchase order in SAP Supplier Relationship Management (SAP SRM) functions, and to implement new functions.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Software Component

SRM_SERVER_700

Features Automatic Enlargement of Long Text Boxes You can use Automatic Enlargement of Long Text Boxes to get enlarged long text boxes for overview screen of shopping carts and purchase orders, approval note in approval set of all objects and note set. This improves the readability of the long text, as you can view all of the text on the screen. You can also enter new text or modify existing text on the same screen. In earlier releases you use the scroll bar to view the text in the long text boxes.

Note If the text entered exceeds the screen size, a vertical scrollbar will appear on the screen. To implement this function, activate the Customizing switch Automatic Enlargement of Long Text boxes (SRM_700_LONG_TEXT_POPUP) under SRM Server Cross Application Basic Setting Activate/Deactivate Automatic Enlargement of Long Text boxes.

Purchase Order Header Pricing You can use Purchase Order Header Pricing, as a purchaser, to set a condition at the header level on the total amount of the order. In the Extended Classic Scenario, conditions from purchase orders in SAP SRM are not replicated in purchase requisitions in SAP ERP. Similarly, conditions that are set at header level in purchase orders in SAP SRM are not replicated when purchase orders are transferred to the Supplier Self-Service system. To implement this function, activate the Customizing switch Purchase Order Header Condition (SRM_700_PO_HEADER_PRICING) under SRM Server Cross Application Basic Setting Activate Purchase Order Header Pricing.

Workload Redistribution You can use this function to redistribute workload for the shopping cart in the sourcing application. For individual shopping cart items, you can change the purchasing group or purchasing organization, designate shopping cart items to be assigned automatically, and redistribute shopping carts that are relevant for the sourcing application only. To implement this function, activate the Customizing switch Workload Redistribution (SRM_700_WKL_SOCO) under SRM Server Sourcing Activate/Deactivate Workload Redistribution in Sourcing Application.

Mandatory Fields You can use this function to create and edit shopping cart or an RFx. When you activate this function the system displays an asterisk in all the fields that are marked as mandatory in the metadata. If any of the mandatory fields are empty, the system displays an error message and the corresponding field is highlighted with a red frame. When you click the link in the error message, the system redirects you to the corresponding empty field.

Note Note that the error message is displayed when the user performs certain header level actions in shopping cart and RFx. The header level actions in shopping cart are as follows: 

Order



Save



Check

The header level actions in RFx are as follows: 

Check



Save



Publish

To implement this function, activate the Customizing switch Mandatory Fields (SRM_700_MAND_FIELDS) under SRM Server Cross Application Basic Settings

User Experience

Activate/Deactivate Workload Redistribution in Sourcing Application.

Central Substitution You can use this function to specify another colleague as a substitute who can take over specific tasks assigned to you if you are absent from the office. You can create substitution rules for planned or unexpected absences. You can use substitution rules to specify another user as a substitute, to specify

what type of tasks a substitute can take over from you, and to specify a time period during which that user can act as a substitute. The substitution function has been centralized so that you can now use a single screen to create substitutes for: 

Team Purchasing



Sourcing Application



Workflow

To implement this function, activate the Customizing switch Central Substitution(SRM_700_SUBSTITUTION) under SRM Server Cross Application Basic Setting Activate/Deactivate Central Substitution.

System Messages You can use this function to view the system messages (created in using transaction SM02 in the backend system) in Netweaver Portal and SAP NetWeaver Business Client (NWBC). To implement this function, activate the Customizing switch Display of System Messages (SRM_700_SYSTEM_MSG) under SRM Server Technical Basic Settings Activate/Deactivate System Messages.

2.6 SRM, Continuous Innovations Technical Data Technical Name of Business Function

SRM_CONT_IMPR_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

RFx (SRM-EBP-BID) RFx Response (SRM-EBP-QUO) Local Purchase Order (SRM-EBP-POR) Contract Management ( SRM-EBP-CON) Sourcing (SRM-EBP-SOC) User Interface/Templates (SRM-EBP-CA-UI) Document Output / Forms (SRM-EBP-CAPRT) Purchase Document Methods (SRM-EBPPD)

Directly Dependent Business Function Requiring Activation in

Not relevant

Addition You can use this business function to enhance the usability and the performance of specific SAP Supplier Relationship Management (SAP SRM) functions, and to implement new state-of-the-art functions.

Note

You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of

Component

Is Needed Only for the Following Features

Component Software

SRM_SERVER 701

Component Enhancement

SAP enhancement package 3 or

Package

higher for SAP ERP 6.0

Customizing switch Link to SAP ERP Documents(SRM_701_LINK_TO_ERP)

Features Keyboard Navigation Redesign You can navigate through the SAP SRM user interface (UI) by exclusively using the keyboard, as it has been redesigned to conform to the Web Content Accessibility Guidelines (WCAG) 2.0 published by the World Wide Web Consortium (W3C). To implement this function, activate the Customizing switch Keyboard Navigation Redesign(SRM_701_KEYBOARD_NAVIGATION) in Customizing for SAP Supplier Relationship Management under:

SRM Server

Cross-Application Basic Settings User Experience

Activate Keyboard

Navigation Redesign .

Caution 

The keyboard innovations apply to SAP Supplier Relationship Management (SAP SRM) and are not



compatible with Procurement for Public Sector (PPS). The Customizing switch Keyboard Navigation Redesign (SRM_701_KEYBOARD_NAVIGATION) is revertible.

Additional Dialog for Catalog Selection You can access a list of catalogs in an additional dialog box when you choose to add an item from an internal catalog. The catalog itself is then opened in a separate window when you select it. To enhance the catalog selection function, activate the Customizing switch Additional Dialog for Catalog Selection(SRM_701_CAT_SEL_POPUP) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Extensions and Field Control (Personalization)

Activate/Deactivate Additional Dialog for Catalog Selection .

Note The Customizing switch Additional Dialog for Catalog Selection (SRM_701_CAT_SEL_POPUP) is compatible with Procurement for Public Sector (PPS) and is revertible.

Error Handling for Sourcing Requests Error handling has been enhanced for the grouping of purchase orders or RFxs. An error message is issued when a follow-on document cannot be created after a shopping cart has been processed. The error message is sent to the Alert monitor and the shopping cart items are sent to the Sourcing application. To enhance error handling, activate the Customizing switch Error Handling for Sourcing Requests((SRM_701_EXTREQ_ERR_HANDLING) in Customizing for SAP Supplier Relationship Management under:

SRM Server

Sourcing Activate/Deactivate Error Handling f. Sourcing Requests .

Note The Customizing switch Error Handling for Sourcing Requests (SRM_701_EXTREQ_ERR_HANDLING) is compatible with Procurement for Public Sector (PPS) and is revertible.

Advanced Background Processing Features This function allows you to process purchasing documents with a large number of line items. You are prompted to confirm whether you want to start a background job when the threshold specified in Customizing is exceeded. Additionally, a warning is issued when users try to edit purchasing documents when a background job is scheduled or is running. To enhance this function, activate the Customizing switch Advanced Background Processing Features(SRM_701_BACKGROUND_PROC) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Background Processing Activate/Deactivate Advanced

Background Processing . For more information, see Background Processing.

Note The Customizing switch Advanced Background Processing Features (SRM_701_BACKGROUND_PROC) is compatible with Procurement for Public Sector (PPS) and is revertible.

Link to SAP ERP Documents You can directly access back-end documents that are referenced in SAP SRM purchasing documents. By clicking the corresponding link, the back-end document is displayed in a separate window. To implement this function, activate the Customizing switch Link to SAP ERP Documents(SRM_701_LINK_TO_ERP) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Integration with Other SAP Components

Integration

with SAP ERP Activate Linking to SAP ERP Documents . For more information, see Links to SAP ERP Documents.

Note The Customizing switch Link to SAP ERP Documents (SRM_701_LINK_TO_ERP) is compatible with Procurement for Public Sector (PPS) and is revertible.

Smart Forms You can use Smart Forms instead of SAP Interactive Forms by Adobe to preview, print, send by e-mail, or fax the following documents: 

RFxs



RFx responses



Shopping carts

 Contracts with hierarchical items To use Smart Forms instead of SAP Interactive Forms by Adobe, activate the Customizing switch Smart Forms(SRM_701_SMARTFORMS) in Customizing for SAP Supplier Relationship Management under: SRM Server Cross-Application Basic Settings Set Output Actions and Output Format Activate / Deactivate Smart Form Innovations . For more information, see Output of Purchasing Documents.

Note 

The Customizing switch Smart Forms (SRM_701_SMARTFORMS) does not have any impact on Procurement for Public Sector (PPS), as PPS has its own set of forms.



This Customizing switch is revertible.

Dropdown Box for Transaction Type Selection You can select the transaction type from a dropdown box when you create the following documents in your personal object worklist (POWL): 

Purchase order



RFx



Auction



Central contract

 Invoice To enhance this function, activate the Customizing switch Dropdown Box for Transaction Type Selection(SRM_701_DOC_TYPE_DROPDOWN) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings User Experience

Activate/Deactivate Dropdown for

Transaction Type Selection .

Note The Customizing switch Dropdown Box for Transaction Type Selection (SRM_701_DOC_TYPE_DROPDOWN) is compatible with Procurement for Public Sector (PPS) and is revertible.

Progress Bar As a system administrator, you can choose to display a progress bar when a user performs a timeconsuming activity on a large document, such as a purchase order, contract, RFx, or RFx response. The progress bar informs the user about the progress of this activity. For each business object, you can define the number of items above which the document is handled as a large document. Above this threshold, the progress bar is displayed. To implement this function, activate the Customizing switch Progress Bar (SRM_701_PROGRESS_BAR) in Customizing for SAP Supplier Relationship Management under: Settings User Experience

Activate/Deactivate Progress Bar

.

SRM Server Cross-Application Basic

For more information, see Features Available for Large Documents.

Note The Customizing switch Progress Bar (SRM_701_PROGRESS_BAR) is compatible with Procurement for Public Sector (PPS) and is revertible.

Optimistic Lock You can use optimistic locking to improve system response time when you switch from display mode to edit mode. To implement this function, activate the Customizing switch Optimistic Lock (SRM_701_OPTIMISTIC_LOCK) in Customizing for SAP Supplier Relationship Management under:

SRM Server Technical Basic Settings Activate/Deactivate Optimistic Lock

.

For more information, see Features Available for Large Documents.

Note The Customizing switch Optimistic Lock (SRM_701_OPTIMISTIC_LOCK) is compatible with Procurement for Public Sector (PPS) and is revertible.

Browse Mode You can use a browse mode for large contracts, RFxs, RFx responses, and purchase orders. You can customize the number of items above which the document should be handled as a large document. Above this threshold, the browse mode is then used instead of the display mode. To implement this function, activate the Customizing switch Browse Mode (SRM_701_DOCUMENT_BROWSING) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings User Experience

Activate/Deactivate Browse Mode

. For more information, see Features Available for Large Documents.

Note The Customizing switch Browse Mode (SRM_701_DOCUMENT_BROWSING) is compatible with Procurement for Public Sector (PPS) and is revertible.

Contract and RFx Templates You can create templates based on saved or released central contracts or saved or published RFxs. The saved template can then be used by all purchasers in your company as the basis for new contracts or RFxs. When you create a template from a central contract, line items and price information are copied, for example. Authorizations, discounts, and conditions, for example, are not copied, as this information can vary from contract to contract. To implement this function, activate the Customizing switch Template from RFx and Contract(SRM_701_TEMPLATE) in Customizing for SAP Supplier Relationship Management under:

SRM

Server Cross-Application Basic Settings Templates Activate/Deactivate Creation of Templates from RFxs and Contracts

.

Note

The Customizing switch Template from RFx and Contract (SRM_701_TEMPLATE) is compatible with Procurement for Public Sector (PPS) and is revertible.

Additional Functions in Sourcing You can do the following in Sourcing: 

Search for requirements by range.



Search for sources of supply and assign them to requirements in your worklist.



Define a contract as a source of supply in the work area by entering a contract number; the contract number is then validated to prevent errors when follow-on documents are processed.



Enhance customer fields in search screens and item tables.



Additionally, a warning message is issued when you have exceeded a customizable number of shopping cart items in Sourcing. The message informs you that you may experience increased

processing time. To implement these functions, activate the Customizing switches Search by Range in Sourcing(SRM_701_MULTI_VALUE_SEARCH) and Progress Bar (SRM_701_PROGRESS_BAR) in Customizing for SAP Supplier Relationship Management under:  SRM Server Sourcing Activate/Deactivate Search by Range in Sourcing

Note The Customizing switch Search by Range in Sourcing (SRM_701_MULTI_VALUE_SEARCH) is compatible 

with Procurement for Public Sector (PPS) and is revertible. SRM Server Cross-Application Basic Settings User Experience Activate/Deactivate Progress Bar

Note The Customizing switch Progress Bar (SRM_701_PROGRESS_BAR) is compatible with Procurement for Public Sector (PPS) and is revertible. Additionally, you must perform the activity in Customizing for SAP Supplier Relationship Management under: SRM Server Cross-Application Basic Settings User Experience Define Threshold Values for Large Documents .

Contract Item Insertion into Purchase Orders You can search for contract items in a purchase order and add them to the purchase order. To implement this function, activate the Customizing switch Contract Item Insertion into Purchaser Order(SRM_701_PO_ADD_CTR_ITEM) in Customizing for SAP Supplier Relationship Management under:

SRM Server Purchase Order Activate/Deactivate Contract Item Insertion into Purchase Order .

Note The Customizing switch Contract Item Insertion into Purchaser Order (SRM_701_PO_ADD_CTR_ITEM) is compatible with Procurement for Public Sector (PPS) and is revertible.

Default Values for Purchase Order Items You can use default values for the delivery address and account assignment of purchase order items. Initially, the values are filled automatically by the system settings defined in organizational management. However, if required, you can set your own default values for delivery address and account assignment

directly on the purchase order details screen.When you then add a new item to the purchase order, the defined values are copied to the new item. To implement this function, activate the Customizing switch Default Settings for Purchase Order Items(SRM_701_PO_ITEM_DEFAULTS) in Customizing for SAP Supplier Relationship Management under:

SRM Server Purchase Order Activate/Deactivate Default Values for Purchase Order Items

.

For more information, see Purchase Orders.

Note The Customizing switch Default Values for Purchase Order Items (SRM_701_PO_ITEM_DEFAULTS) is compatible with Procurement for Public Sector (PPS) and is revertible. When you deactivate this Customizing switch, the report Reset Personalized PO Item Default Values to System Default Values (/SAPSRM/CUSTMZ_SW_PO_DEFAULT) is automatically run to reset the user-specific default settings.

POWL User Interface Optimization You can choose to display only the most important fields on the personal object worklist (POWL) user interface and restrict sorting to sorting-relevant fields. These changes apply to shopping carts and confirmations. By doing so, you optimize the available space on the user interface. You can unhide fields that are hidden by default by changing the POWL personalization settings. To implement this function, activate the Customizing switch POWL User Interface Optimization(SRM_701_POWL_UI_OPTIMIZATION) in Customizing for SAP Supplier Relationship Management under:

SRM Server

Cross-Application Basic Settings POWL and Advanced Search

Activate/Deactivate POWL Optimization . For more information, see Personal Object Worklist.

2.7 SRM, Continuous Innovations Technical Data Technical Name of Business Function

SRM_CONT_IMPR_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

RFx (SRM-EBP-BID) RFx Response (SRM-EBP-QUO) Local Purchase Order (SRM-EBP-POR) Contract Management ( SRM-EBP-CON) Sourcing (SRM-EBP-SOC) User Interface/Templates (SRM-EBP-CA-UI) Document Output / Forms (SRM-EBP-CAPRT) Purchase Document Methods (SRM-EBP-

PD) Directly Dependent Business Function Requiring Activation in

Not relevant

Addition You can use this business function to enhance the usability and the performance of specific SAP Supplier Relationship Management (SAP SRM) functions, and to implement new state-of-the-art functions.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of

Component

Is Needed Only for the Following Features

Component Software

SRM_SERVER 701

Component Enhancement

SAP enhancement package 3 or

Package

higher for SAP ERP 6.0

Customizing switch Link to SAP ERP Documents(SRM_701_LINK_TO_ERP)

Features Keyboard Navigation Redesign You can navigate through the SAP SRM user interface (UI) by exclusively using the keyboard, as it has been redesigned to conform to the Web Content Accessibility Guidelines (WCAG) 2.0 published by the World Wide Web Consortium (W3C). To implement this function, activate the Customizing switch Keyboard Navigation Redesign(SRM_701_KEYBOARD_NAVIGATION) in Customizing for SAP Supplier Relationship Management under:

SRM Server

Cross-Application Basic Settings User Experience

Activate Keyboard

Navigation Redesign .

Caution 

The keyboard innovations apply to SAP Supplier Relationship Management (SAP SRM) and are not compatible with Procurement for Public Sector (PPS).



The Customizing switch Keyboard Navigation Redesign (SRM_701_KEYBOARD_NAVIGATION) is revertible.

Additional Dialog for Catalog Selection You can access a list of catalogs in an additional dialog box when you choose to add an item from an internal catalog. The catalog itself is then opened in a separate window when you select it. To enhance the catalog selection function, activate the Customizing switch Additional Dialog for Catalog Selection(SRM_701_CAT_SEL_POPUP) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Extensions and Field Control (Personalization)

Activate/Deactivate Additional Dialog for Catalog Selection .

Note The Customizing switch Additional Dialog for Catalog Selection (SRM_701_CAT_SEL_POPUP) is compatible with Procurement for Public Sector (PPS) and is revertible.

Error Handling for Sourcing Requests Error handling has been enhanced for the grouping of purchase orders or RFxs. An error message is issued when a follow-on document cannot be created after a shopping cart has been processed. The error message is sent to the Alert monitor and the shopping cart items are sent to the Sourcing application. To enhance error handling, activate the Customizing switch Error Handling for Sourcing Requests((SRM_701_EXTREQ_ERR_HANDLING) in Customizing for SAP Supplier Relationship Management under:

SRM Server

Sourcing Activate/Deactivate Error Handling f. Sourcing Requests .

Note The Customizing switch Error Handling for Sourcing Requests (SRM_701_EXTREQ_ERR_HANDLING) is compatible with Procurement for Public Sector (PPS) and is revertible.

Advanced Background Processing Features This function allows you to process purchasing documents with a large number of line items. You are prompted to confirm whether you want to start a background job when the threshold specified in Customizing is exceeded. Additionally, a warning is issued when users try to edit purchasing documents when a background job is scheduled or is running. To enhance this function, activate the Customizing switch Advanced Background Processing Features(SRM_701_BACKGROUND_PROC) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Background Processing Activate/Deactivate Advanced

Background Processing . For more information, see Background Processing.

Note The Customizing switch Advanced Background Processing Features (SRM_701_BACKGROUND_PROC) is compatible with Procurement for Public Sector (PPS) and is revertible.

Link to SAP ERP Documents You can directly access back-end documents that are referenced in SAP SRM purchasing documents. By clicking the corresponding link, the back-end document is displayed in a separate window.

To implement this function, activate the Customizing switch Link to SAP ERP Documents(SRM_701_LINK_TO_ERP) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Integration with Other SAP Components

Integration

with SAP ERP Activate Linking to SAP ERP Documents . For more information, see Links to SAP ERP Documents.

Note The Customizing switch Link to SAP ERP Documents (SRM_701_LINK_TO_ERP) is compatible with Procurement for Public Sector (PPS) and is revertible.

Smart Forms You can use Smart Forms instead of SAP Interactive Forms by Adobe to preview, print, send by e-mail, or fax the following documents: 

RFxs



RFx responses



Shopping carts

 Contracts with hierarchical items To use Smart Forms instead of SAP Interactive Forms by Adobe, activate the Customizing switch Smart Forms(SRM_701_SMARTFORMS) in Customizing for SAP Supplier Relationship Management under: SRM Server Cross-Application Basic Settings Set Output Actions and Output Format Activate / Deactivate Smart Form Innovations . For more information, see Output of Purchasing Documents.

Note 

The Customizing switch Smart Forms (SRM_701_SMARTFORMS) does not have any impact on Procurement for Public Sector (PPS), as PPS has its own set of forms.



This Customizing switch is revertible.

Dropdown Box for Transaction Type Selection You can select the transaction type from a dropdown box when you create the following documents in your personal object worklist (POWL): 

Purchase order



RFx



Auction



Central contract

 Invoice To enhance this function, activate the Customizing switch Dropdown Box for Transaction Type Selection(SRM_701_DOC_TYPE_DROPDOWN) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings User Experience

Activate/Deactivate Dropdown for

Transaction Type Selection .

Note The Customizing switch Dropdown Box for Transaction Type Selection (SRM_701_DOC_TYPE_DROPDOWN) is compatible with Procurement for Public Sector (PPS) and is revertible.

Progress Bar As a system administrator, you can choose to display a progress bar when a user performs a timeconsuming activity on a large document, such as a purchase order, contract, RFx, or RFx response. The progress bar informs the user about the progress of this activity. For each business object, you can define the number of items above which the document is handled as a large document. Above this threshold, the progress bar is displayed. To implement this function, activate the Customizing switch Progress Bar (SRM_701_PROGRESS_BAR) in Customizing for SAP Supplier Relationship Management under: Settings User Experience

Activate/Deactivate Progress Bar

SRM Server Cross-Application Basic

.

For more information, see Features Available for Large Documents.

Note The Customizing switch Progress Bar (SRM_701_PROGRESS_BAR) is compatible with Procurement for Public Sector (PPS) and is revertible.

Optimistic Lock You can use optimistic locking to improve system response time when you switch from display mode to edit mode. To implement this function, activate the Customizing switch Optimistic Lock (SRM_701_OPTIMISTIC_LOCK) in Customizing for SAP Supplier Relationship Management under:

SRM Server Technical Basic Settings Activate/Deactivate Optimistic Lock

.

For more information, see Features Available for Large Documents.

Note The Customizing switch Optimistic Lock (SRM_701_OPTIMISTIC_LOCK) is compatible with Procurement for Public Sector (PPS) and is revertible.

Browse Mode You can use a browse mode for large contracts, RFxs, RFx responses, and purchase orders. You can customize the number of items above which the document should be handled as a large document. Above this threshold, the browse mode is then used instead of the display mode. To implement this function, activate the Customizing switch Browse Mode (SRM_701_DOCUMENT_BROWSING) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings User Experience

Activate/Deactivate Browse Mode

. For more information, see Features Available for Large Documents.

Note The Customizing switch Browse Mode (SRM_701_DOCUMENT_BROWSING) is compatible with Procurement for Public Sector (PPS) and is revertible.

Contract and RFx Templates You can create templates based on saved or released central contracts or saved or published RFxs. The saved template can then be used by all purchasers in your company as the basis for new contracts or RFxs.

When you create a template from a central contract, line items and price information are copied, for example. Authorizations, discounts, and conditions, for example, are not copied, as this information can vary from contract to contract. To implement this function, activate the Customizing switch Template from RFx and Contract(SRM_701_TEMPLATE) in Customizing for SAP Supplier Relationship Management under:

SRM

Server Cross-Application Basic Settings Templates Activate/Deactivate Creation of Templates from RFxs and Contracts

.

Note The Customizing switch Template from RFx and Contract (SRM_701_TEMPLATE) is compatible with Procurement for Public Sector (PPS) and is revertible.

Additional Functions in Sourcing You can do the following in Sourcing: 

Search for requirements by range.



Search for sources of supply and assign them to requirements in your worklist.



Define a contract as a source of supply in the work area by entering a contract number; the contract number is then validated to prevent errors when follow-on documents are processed.



Enhance customer fields in search screens and item tables.



Additionally, a warning message is issued when you have exceeded a customizable number of shopping cart items in Sourcing. The message informs you that you may experience increased

processing time. To implement these functions, activate the Customizing switches Search by Range in Sourcing(SRM_701_MULTI_VALUE_SEARCH) and Progress Bar (SRM_701_PROGRESS_BAR) in Customizing for SAP Supplier Relationship Management under:  SRM Server Sourcing Activate/Deactivate Search by Range in Sourcing

Note The Customizing switch Search by Range in Sourcing (SRM_701_MULTI_VALUE_SEARCH) is compatible 

with Procurement for Public Sector (PPS) and is revertible. SRM Server Cross-Application Basic Settings User Experience Activate/Deactivate Progress Bar

Note The Customizing switch Progress Bar (SRM_701_PROGRESS_BAR) is compatible with Procurement for Public Sector (PPS) and is revertible. Additionally, you must perform the activity in Customizing for SAP Supplier Relationship Management under: SRM Server Cross-Application Basic Settings User Experience Define Threshold Values for Large Documents .

Contract Item Insertion into Purchase Orders You can search for contract items in a purchase order and add them to the purchase order. To implement this function, activate the Customizing switch Contract Item Insertion into Purchaser Order(SRM_701_PO_ADD_CTR_ITEM) in Customizing for SAP Supplier Relationship Management under:

SRM Server Purchase Order Activate/Deactivate Contract Item Insertion into Purchase Order .

Note The Customizing switch Contract Item Insertion into Purchaser Order (SRM_701_PO_ADD_CTR_ITEM) is compatible with Procurement for Public Sector (PPS) and is revertible.

Default Values for Purchase Order Items You can use default values for the delivery address and account assignment of purchase order items. Initially, the values are filled automatically by the system settings defined in organizational management. However, if required, you can set your own default values for delivery address and account assignment directly on the purchase order details screen.When you then add a new item to the purchase order, the defined values are copied to the new item. To implement this function, activate the Customizing switch Default Settings for Purchase Order Items(SRM_701_PO_ITEM_DEFAULTS) in Customizing for SAP Supplier Relationship Management under:

SRM Server Purchase Order Activate/Deactivate Default Values for Purchase Order Items

.

For more information, see Purchase Orders.

Note The Customizing switch Default Values for Purchase Order Items (SRM_701_PO_ITEM_DEFAULTS) is compatible with Procurement for Public Sector (PPS) and is revertible. When you deactivate this Customizing switch, the report Reset Personalized PO Item Default Values to System Default Values (/SAPSRM/CUSTMZ_SW_PO_DEFAULT) is automatically run to reset the user-specific default settings.

POWL User Interface Optimization You can choose to display only the most important fields on the personal object worklist (POWL) user interface and restrict sorting to sorting-relevant fields. These changes apply to shopping carts and confirmations. By doing so, you optimize the available space on the user interface. You can unhide fields that are hidden by default by changing the POWL personalization settings. To implement this function, activate the Customizing switch POWL User Interface Optimization(SRM_701_POWL_UI_OPTIMIZATION) in Customizing for SAP Supplier Relationship Management under:

SRM Server

Cross-Application Basic Settings POWL and Advanced Search

Activate/Deactivate POWL Optimization . For more information, see Personal Object Worklist.

2.8 SRM, Implementation Simplification Technical Data Technical Name of Business Function

SRM_IMPLEM_ACCEL_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

Not relevant

Directly Dependent Business Function Requiring Activation in

Not relevant

Addition You can use this business function to access the documentation of various tools that help you reduce implementation costs. You do not have to activate this business function, as it does not contain any functions.

Integration Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Is Needed Only for the Following Features

Software Component

SRM_SERVER

Technical component or business content, e.g.

Java Application

Automated Configuration Templates

Portal Content

Server

(ACTs)

SAP Solution

Customizing synchronization

Manager .

Features Automated Configuration Templates (ACTs) Automated Configuration Templates (ACTs) are XML-based scripts that allow you to automatically configure technical system settings, for example, RFC connections and users. To run ACTs, a Java Application Server is required. For more information, see Automated Configuration of the Portal Systems and Automated Configuration Templates.

Customizing Synchronization Customizing Synchronization allows you to synchronize Customizing settings between SAP SRM and SAP ERP, for example, units of measure, currencies, and Incoterms. To use this function, you need SAP Solution Manager. For more information, see SAP Solution Manager for SAP Supplier Relationship Management under Configuration SAP SRM 7.0 EHP1 Basic Settings for SAP SRM Customizing Synchronization Synchronize Customizing

.

2.9 SRM, Service Procurement Innovations Technical Data Technical Name of Business

SRM_SERVICE_PROC_1

Function Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

Enterprise Buyer (SRM-EBP)

Directly Dependent Business

To use the contract handling for invoices functions, you must have activated the business function Procurement - SRM Integration 2 (LOG_MM_P2PSE_2).

Function Requiring Activation in Addition

You can use this business function to implement new functions or enhance existing ones in Service Procurement and Central Contract Management. This business function supports further integration with SAP ERP.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of

Component

Is Needed Only for the Following Features

Component Software

SRM_SERVER 701

Component Enhancement

SAP enhancement package 5 

Package

for SAP ERP 6.0 

Customizing switch Service Procurement(SRM_701_SERV_PROC_GE) Customizing switch Central Contract Management(SRM_701_SERV_PROC_CCM)

Features Service Procurement You can enhance the Service Procurement function by activating the Customizing switch Service Procurement(SRM_701_SERV_PROC_GE) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Service Procurement

Innovations .

Activate Service Procurement

Note You must activate the Customizing switch Service Procurement (SRM_701_SERV_PROC_GE) in the SAP Supplier Relationship Management (SAP SRM) and supplier self-services (SUS) systems.

Caution The Customizing switch Service Procurement (SRM_701_SERV_PROC_GE) is not compatible with Procurement for Public Sector (PPS), as PPS runs in extended classic mode and the Service Procurement business scenario in classic mode. This Customizing switch is revertible with the following limitations: 

You cannot revert it when you create documents with informatory lines.



You cannot revert it when you use an RFx as a starting point.

The following features are available: 

Park and hold for back-end purchase orders This function allows purchase orders to be created in parked or held status in the SAP ERP back-end system. The purchase orders can be created based on sourcing requests, RFx responses, or shopping carts in SAP SRM. For more information, see Park and Hold.



Contract Handling for Invoices You can create invoices with reference to contracts in the following ways: o

Invoice with a direct reference to an SAP ERP contract or SAP SRM central contract

o

Invoice with reference to a limit PO item containing a reference to a contract

o

Invoice with a reference to a limit PO item without a contract reference with the option to reference a contract during invoice verification

For more information, see Contract Handling for Invoices. 

Transfer of informatory lines You can transfer informatory lines, which provide more detailed information in a service structure, from SAP ERP to SAP SRM, including supplier self-services. For more information, see Hierarchies.



RFx as starting point You can create RFxs with hierarchical structures directly in SAP SRM without a preceding purchase requisition in SAP ERP. The service hierarchy then correctly fills the contract or back-end purchase order. For more information, see Hierarchies.



Contract Limits You can transfer an SRM central contract available as a source of supply in SAP ERP from SAP ERP to supplier self-services to allow services to be entered against a contract limit using SRM-MDM Catalog. For more information, see Confirmation Processing.

Central Contract Management You can enhance the Central Contract Management function by activating the Customizing switch Central Contract Management (SRM_701_SERV_PROC_CCM) in Customizing for SAP Supplier Relationship

Management under:

SRM Server

Contract Management Innovations

Cross-Application Basic Settings Service Procurement

Activate Central

.

Caution The Customizing switch Central Contract Management (SRM_701_SERV_PROC_CCM) is not compatible with Procurement for Public Sector (PPS), as PPS runs in extended classic mode and the Service Procurementbusiness scenario in classic mode. It is revertible as long as you have not created central contracts using the HIER_SE template, as described in the Customizing for SAP Supplier Relationship Management under: Application Basic Settings Service Procurement

Activate Service Procurement

SRM Server Cross-

.

You can do the following: 

Use central contracts as follow-on documents for requirements with external services. For more information, see Sourcing.



Negotiate central contracts with service hierarchies through the SAP Bidding Engine.



Upload central contracts with service hierarchies to SRM-MDM Catalog. For more information, see Uploading of Central Contracts to the SRM-MDM Catalog.



Use SAP SRM central contracts as a source of supply for external services. For more information, see Central Contract Distribution.



Create central contracts from scratch in the system, or as follow-on documents of an RFx and distribute them to the back-end systems. For more information, see Central Contract Distribution.

2.10 SRM, PI-Independent Enterprise Services Technical Data Technical Name of Business Function

SRM_WSRM_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

SRM Enterprise Services (SRM-EBP-ESA)

Directly Dependent Business Function Requiring

Improvements for SOA reuse functions(FND_SOA_REUSE_1)

Activation in Addition

You can use this business function to exchange asynchronous enterprise services between SAP SRM and SAP ERP by means of the Web Service Reliable Messaging (WSRM) protocol. In this case, an integration server, for example, SAP NetWeaver Process Integration (SAP NetWeaver PI) is no longer required and you reduce installation costs.

Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Is Needed Only for the Following Features

Software Component

SRM_SERVER 701

You have activated the business function Improvements for SOA reuse functions (FND_SOA_REUSE_1) in the SAP Business Suite Foundation system and defined settings in Customizing under Components Processes and Tools for Enterprise Applications for Asynchronous Enterprise Services

Enterprise Services

Cross Application

Point-to-Point Enablement

.

Features For more information, see: 

Enterprise Services for Cross-System Data Exchange



PI-Independent Enterprise Services

2.11 SRM, Supplier Collaboration Technical Data Technical Name of Business Function

SRM_SUCO_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

RFx (SRM-EBP-BID) RFx Response (SRM-EBP-QUO) Supplier Self-Services (SRM-SUS) Registration of Suppliers (SRM-ROS)

Directly Dependent Business Function Requiring Activation in Addition You can use this business function to do the following: 

As a purchaser, you can allow bidders to submit RFx responses and bids outside the SAP SRM system firewall.



As a purchaser and as a supplier, you can use the enhanced features of supplier self-services (SUS).



As a supplier, you can register directly in supplier self-services (SUS).

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of

Component

Is Needed Only for the Following Features

Component Software

SRM_SERVER 701

Component Enhancement

SAP enhancement package

Package

4 or higher for SAP ERP 6.0

Customizing switch Final Entry Checkbox in Confirmation(SRM_701_SUCO_FINAL_ENTRY)

Features RFx Submission Outside SAP SRM Firewall You can prevent bidders from accessing sensitive information in the SAP SRM system and reduce security risks by separating the bidding process from SAP SRM core processes. To implement this function, activate the Customizing switch RFx Response Submission Outside Firewall(SRM_701_SUCO_BIDDER_DECOUP) in Customizing for SAP Supplier Relationship Management under:

Supplier Collaboration

Activate/Deactivate RFx Response Submission Outside Firewall

.

Note The Customizing switch RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) is compatible with Procurement for Public Sector (PPS) and cannot be reverted.

Supplier Registration in Supplier Self-Services (SUS) Suppliers can access the self-registration screen with its new harmonized Web Dynpro user interface (UI), for example, on a purchasing company’s home page or by clicking a URL you received electronically from a purchaser. Once suppliers have registered, the system does the following:  A business partner with the Potential Supplier role is created in supplier self-services (SUS). Strategic purchasers can also create potential suppliers directly in SUS. 

Questionnaires are sent out to the contact person of the potential supplier. The questionnaires are created using the Web Survey tool provided by SAP NetWeaver.



Additionally, strategic purchasers can access a work center for supplier preselection in SAP NetWeaver Portal. The work center contains a personal object worklist (POWL) from which strategic

purchasers can, for example, display, edit, accept, or reject potential suppliers. To implement this function, activate the Customizing switch Supplier SelfRegistration (SRM_701_SUCO_SUP_REG) in Customizing for SAP Supplier Relationship Management under: Registration

Note

.

Supplier Collaboration Supplier Self-Registration

Activate/Deactivate Supplier Self-

The Customizing switch Supplier Self-Registration (SRM_701_SUCO_SUP_REG) is compatible with Procurement for Public Sector (PPS) and can be reverted.

Note The following roles are available:  SAP SRM: Supplier Preselection (/SAPSRM/SUCO_PROCESSOR) This role is required for strategic purchasers in the supplier self-services (SUS) system to access data 

of registered potential suppliers. SAP SRM: Anonymous User for Potential Supplier Registration Page (/SAPSRM/SUCO_ANON_REG) This role is required for users who want to access the registration page for potential suppliers.

For more information, see: Business Partner Monitor Supplier Preselection Supplier Qualification Supplier Registration

SUS Innovations You can improve communication between suppliers and purchasers, and enable suppliers to have greater control over follow-on documents such as purchase order responses and confirmations. In supplier self-services, you enable suppliers to do the following: 

Send long text replies and memos with purchase order responses.



Subscribe and unsubscribe to e-mail notifications regarding changes to a business document.



Specify that a confirmation or service entry sheet is final.



Specify a reason for rejection when rejecting an item in a purchase order.

Supplier registration (ROS) is now connected to SAP ERP, allowing a user with the Purchasing Administrator role to monitor changes to supplier master data, accept or reject them, and transfer these changes to the back-end system. These enhancements increase the level of information available to both suppliers and purchasers, and improve the ability of suppliers and purchasers to fulfill their requirements through the procurement process. To implement the above functions, activate the Customizing switches Final Entry Checkbox in Confirmation(SRM_701_SUCO_FINAL_ENTRY), Transfer of Texts to SAP ERP (SRM_701_SUCO_TEXT_TRANSFER), andSupplier Notification (SRM_701_SUCO_NOTIF_FILTER) in Customizing for SAP Supplier Relationship Management under: 

Supplier Collaboration

Activate/Deactivate Final Entry Checkbox in Confirmation

Note The Customizing switch Final Entry Checkbox in Confirmation (SRM_701_SUCO_FINAL_ENTRY) is compatible with Procurement for Public Sector (PPS) and cannot be reverted. Additionally, it requires 

the installation of enhancement package 4 for SAP ERP 6.0. Supplier Collaboration Activate/Deactivate Text Transfer to SAP ERP

Note

The Customizing switch Transfer of Texts to SAP ERP (SRM_701_SUCO_TEXT_TRANSFER) is 

compatible with Procurement for Public Sector (PPS) and can be reverted. Supplier Collaboration Activate/Deactivate Supplier Notification

Note The Customizing switch Supplier Notification (SRM_701_SUCO_NOTIF_FILTER) is compatible with Procurement for Public Sector (PPS) and can be reverted. For more information, see Supplier Master Data Self-Maintenance.

2.12 SRM, Self-Service Procurement Technical Data Technical Name of Business Function

SRM_SELF_SERVICE_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP enhancement package 1 for SAP SRM 7.0

Technical Usage

SRM

Application Component

Shopping Cart (SRM-EBP-SHP)

Directly Dependent Business Function Requiring Activation in Addition You can use this business function to benefit from the new shopping cart features and to allow occasional users to order products or free-text items with a few clicks.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites You have installed the following components as of the version mentioned: Type of Component

Component

Is Needed Only for the Following Features

Software Component

SRM_SERVER 701

To use the new user interface, you must have assigned the role SAP SRM: Employee(/SAPSRM/EMPLOYEE_EHP1) to your employees.

Features Simplified Shopping Cart The simplified shopping cart is a one-screen shopping cart with a new, easy-to-use user interface that allows you to search for products in catalogs, compare the search results, and add items from the catalogs to the shopping cart. To implement this function, activate the Customizing switch Simplified Shopping Cart (SRM_701_SIMPLIFIED_SC) in Customizing for SAP Supplier Relationship Management under: SRM Server Cross-Application Basic Settings Self-Service Procurement

Activate/Deactivate Simplified

Shopping Cart .

Note The Customizing switch Simplified Shopping Cart (SRM_701_SIMPLIFIED_SC) is compatible with Procurement for Public Sector (PPS) with the following restriction: hierarchies are not supported. It can be reverted. For more information, see Simplified Shopping Cart.

Budget Check in Shopping Cart You immediately receive an error or warning message when the budget for a newly created shopping cart is exceeded. To implement this function, activate the Customizing switch Budget Check for Shopping Cart(SRM_701_BUDGET_CHECK_SC) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Self-Service Procurement

Activate/Deactivate Budget

Check for Shopping Cart .

Note The Customizing switch Budget Check for Shopping Cart (SRM_701_BUDGET_CHECK_SC) is compatible with Procurement for Public Sector (PPS) and can be reverted.

Automatic Assignment of Sources of Supply You can automatically assign sources of supply in shopping carts. To implement this function, deactivate the Customizing switch Disable Auto Assignment of Source of Supply in SC(SRM_701_AUTO_SOS_ASSIGN_OFF) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Self-Service Procurement

Assignment of Sources of Supply

Disable/Enable Automatic

.

Note The Customizing switch Disable Auto Assignment of Source of Supply in SC(SRM_701_AUTO_SOS_ASSIGN_OFF) is compatible with Procurement for Public Sector (PPS) and can be reverted.

Ship-To Address for Shopping Cart You can create individual ship-to addresses for multiple employees and use them as alternate addresses To implement this function, activate the Customizing switch Individual Ship-to Address in Shopping Cart(SRM_701_SHIP_TO_ADDRESS_SC) in Customizing for SAP Supplier Relationship Management under:

SRM Server Cross-Application Basic Settings Individual Employee Address Activate/Deactivate

Individual Ship-To Address in Shopping Cart .

2.13 SRM, Analytics Technical Data Technical Name of Business Function

SRM_ANALYTICS_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP Enhancement Package 1 for SAP SRM 7.0

Technical Usage

SRM_SERVER

Application Component

SRM-EBP-REP

Directly Dependent Business Function Requiring Activation in

Not relevant

Addition You can use this business function to use a variety of reports and analyses that are available in the Contract Management and Business Partner work centers. The reports provide detailed information, helping you to make strategic decisions and take subsequent action, such as the following: 

Creating new contracts and renegotiating existing contracts



Consolidating contracts



Phasing out contracts and non-compliant suppliers



Taking measures for risk mitigation

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites

You have installed the following components as of the version mentioned: Type of Component

Component

Is Needed Only for the Following Features

Software

SRM_SERVER 701

Component Technical

SAP NetWeaver Business

Component

Warehouse

Contract-Related Analyses 

Contract Compliance



Contract Condition Compliance



Contract Spend



Maverick Buying

Supplier-Related Analyses 

ABC Analysis of Suppliers



Pareto Analysis According to Purchase Order Volume



Top Suppliers

Features Contract Management The following reports are available for the Contract Management work center: 

Contract Compliance



Contract Information (for example, expiring contracts)



Lifecycle Events



Sources of Supply



Worklist for Upcoming Activities

Business Partner The following reports are available for the Business Partner work center: 

Supplier Analyses (for example, ABC Analysis and top suppliers)



Compliance of suppliers (for example, regarding conditions and delivery times)



Procurement Analyses (for example, procurement value per supplier or alternative sources of supply)

 Maverick Buying The Customizing switch related to this business function is Embedded Analytics for Purchasers(SRM_701_EMB_ANALYTICS). It is immediately active once you have activated the business function. You can deactivate the Customizing switch in Customizing for SAP Supplier Relationship Management under SRM Server Analytics Deactivate/Activate Embedded Analytics for Purchasers .

2.14 SRM, Analytics 2 Technical Data Technical Name of Business

SRM_ANALYTICS_2

Function Type of Business Function

Enterprise Business Function

SAP enhancement package 2 for SAP Supplier Relationship Management

Available From

7.0 Technical Usage

SRM_SERVER

Application Component

SRM-EBP-REP

Required Business Function

Not relevant

You can use this business function to use a variety of reports and analyses that are now available in the Strategic Sourcing work center. The reports provide detailed information about RFxs against various parameters such as product category, average cycle time, and number of bidders. This information helps you to make strategic decisions and take subsequent action. You can also use a new feature in the Contract Management, Business Partner, and Strategic Sourcing work centers that lets you add your own reports to existing catalogs.

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites 

You have installed the following components as of the version mentioned: Type of

Component

Component

Required for the Following Features Only

Software

SRM_SERVER

Component

SRM_EXT_FUNC

Technical

SAP NetWeaver Business Warehouse (SAP

Strategic Sourcing-Related

Component

NetWeaver BW)

Analyses

Features Strategic Sourcing The following reports are available in the Strategic Sourcing work center:

Not applicable

o

Average Cycle Time

o

Number of RFx

o

Bidder Participation

o

Spend from RFx



Average Cycle Time



Number of RFx



Bidder Participation

 Spend from RFx The Customizing switch related to this business function is POWL-Based Reports (SRM_702_POWL_COCKPIT). You can activate this customizing switch in Customizing for SAP Supplier Relationship Management under

SRM Server

Analytics

Reports Activate/Deactivate POWL-

Based Reports .

More Information Analytics for Contract Management and Business Partner Work Centers Analytics for Strategic Sourcing Work Center

2.15 SRM, Leasing Technical Data Technical Name of Business

SRM_LEASING_1

Function Type of Business Function

Enterprise Business Function

Available From

SAP enhancement package 2 for SAP Supplier Relationship Management (SAP SRM) 7.0 SRM_SERVER

Technical Usage

SAP NetWeaver Process Integration (SAP NetWeaver PI) SRM-EBP-ESA

Application Component

SRM-EBP-CA-XML or SRM-XI (for SAP NetWeaver PI content relevant issues) Required Business Function

Not relevant

You can use this business function to use the cross-application component Leasing and Asset Management (LAM).

Prerequisites 

You have installed the following components as of the version mentioned: Type of

Component

Component Software

Required for the Following Features Only

SRM_SERVER

Not applicable

Technical

SAP NetWeaver Process Integration (SAP

Not applicable

Component

NetWeaver PI)

Component

o

Software component version: SRM SERVER IC 7.02

Type of

Component

Required for the Following

Component

Features Only o

Namespace: http://sap.com/xi/SRM/Leasing/IC

You have carried out the following Customizing activities:

Define Target Settings for Product Categories You have set SAP SRM as the target system for product categories (for which lease quotations are sent from SAP Customer Relationship Management (SAP CRM)) in Customizing for SAP Supplier Relationship Management (SAP SRM) under SRM Server Technical Basic Settings Define back-end system for product category

.

Note You can perform optional enhancements using the following Business Add-Ins (BAdIs) or enhancement spots:  You can use enhancement spot Mapping for XML (BBP_BDI_MAPPING_SAPXML1) to map from XML  

to SAP SRM documents. You can select the External Approval checkbox through BAdI Internal BAdI for Changing Invoice Data Before Update (BBP_BDI_PD_IV_CHANGE) to select XML invoice output in SAP CRM. You can set the sk_scenario1 field in the document header to LAM using BAdI BBP_CUF_GENERAL_SSF.

Features Leasing and Asset Management Leasing and Asset Management (LAM) is a cross-application component that enables users to create purchase orders in SAP Supplier Relationship Management (SAP SRM), from lease quotations that originate in SAP Customer Relationship Management (CRM), and to generate invoices for the lease purchase. The Customizing switch related to this business function is Leasing and Asset Management (SRM_702_LEASING). It is immediately active once you have activated the business function.

More Information For more information, see the following: 

SAP Library for SAP Customer Relationship Management on SAP Help Portal at http://help.sap.com under SAP Customer Relationship Management SAP CRM for Industries Financial Services SAP Leasing



SAP Library for SAP Customer Relationship Management on SAP Help Portal at http://help.sap.com under SAP Customer Relationship Management SAP CRM for Industries Financial Services SAP Leasing



Leasing Document Creation of a Purchase Order .

Leasing Document Entering and Checking of Vendor Invoices .

SAP Solution Manager under Maintenance Business Processes

SAP SRM Scenarios

Plan-Driven Procurement with Plant

Processing Leasing Invoices in SRM

.

2.16 SRM, Supplier Collaboration 2

Technical Data Technical Name of Business

SRM_SUCO_2

Function Type of Business Function

Enterprise Business Function

Available From

SAP enhancement package 2 for SAP Supplier Relationship Management 7.0

Technical Usage

SRM_SERVER

Application Component

SRM-EBP-REP SRM-EBP-BID

Required Business Function

SRM, Supplier Collaboration (SRM_SUCO_1)

You can use this business function to implement the improvements to RFx response submission outside the firewall. The improvements are the addition of bidder intent and surrogate bidding facilities.

Prerequisites 

You have installed the following components as of the version mentioned: Type of

Component

Component Software

Required for the Following Features Only

SRM_SERVER

Not applicable

Technical

Supplier self-services (SUS)

Not applicable

Component

SAP NetWeaver Business Warehouse (SAP

Component

NetWeaver BW) SAP NetWeaver Process Integration (SAP NetWeaver PI)

Features RFx Response Submission Outside Firewall Improvements The following improvements have been made to RFx response submission outside the firewall: Bidder Intent Bidders can now indicate whether they intend to participate in a bidding event outside the firewall by using the bidder intent facility. They can choose from the following available statuses:  Participate 

Do Not Participate



Tentative

Surrogate Bidding Purchasers can submit RFx responses outside the firewall on behalf of bidders by using the new surrogate bidding feature. To implement these improvements, activate the Customizing switch RFx Response Submission Outside Firewall Improvements (SRM_702_BID_DECOUPLING_IMPR) in Customizing for SAP Supplier Relationship

Supplier Collaboration Activate/Deactivate RFx Response Submission Outside Firewall Improvements . Management under

Note The Customizing switch RFx Response Submission Outside Firewall Improvements(SRM_702_BID_DECOUPLING_IMPR) cannot be reverted.

More Information SAP SRM Scenarios Strategic Sourcing with RFx Business Processes Processing Bids and RFx Responses in the Supplier System . For more information, see SAP Solution Manager under

2.17 SRM, Catalog Innovations 2 Technical Data Technical Name of Business

SRM_CATALOG_2

Function Type of Business Function

Enterprise Business Function

Available From

SAP enhancement package 2 for SAP Supplier Relationship Management 7.0

Technical Usage

SRM

Application Component

SRM-CAT-MDM

Required Business Function

Not relevant

You can use this business function to activate the following features: 

Sustainability enhancements



Flat view for items in service catalogs

Note You can revert this business function. To do so, perform the following steps: 1. Check whether there are limitations at Customizing switch level. You can find this information in the business function description and in the documentation of the Customizing switch in Customizing for SAP Supplier Relationship Management. If there are no limitations, deactivate the Customizing switch or switches in Customizing for SAP Supplier Relationship Management. 2. Run transaction Switch Framework Customizing (SFW5), select the business function, and deselect theRevertible checkbox. To do this, you need special authorizations. 3. Save and activate your changes.

Note If you do not deactivate all the Customizing switches assigned to a business function, a warning is issued.

Prerequisites



You have installed the following components as of the version mentioned: Type of Component

Component

Software Component

SRM_SERVER 702

Java Software Component

SRM-CAT-ENABLER

Required for the Following Features Only

Features Sustainability Enhancements You can search for and compare catalog items based on sustainability criteria such as their carbon footprint, compliance with environmental standards, and energy consumption. To implement this function, activate the Customizing switch Sustainability Enhancements for Catalog(SRM_702_CATALOG_SUSTAIN_ENH) in the MDM Catalog Enhancement Administration tool.

Flat View for Items in Service Catalog This view displays the service line items only. The hierarchy view is still viewable on the Details screen. To implement this function, activate the Customizing switch Flat View for Items in Service Catalog(CAT_702_UI_IMP) in the MDM Catalog Enhancement Administration tool.

More Information Activating Business Function and Customizing Switches in the MDM Catalog Enhancement Administration tool

4. Overview SAP Supplier Relationship Management (SAP SRM) is part of the SAP Business Suite. SAP SRM covers the full procurement cycle, from strategic sourcing to operational procurement and supplier enablement by making use of consolidating core business content and master data. SAP SRM is a purchasing application that offers sustainable savings and value generation through enterprise-wide supply management. With SAP SRM, you collaborate with suppliers in the process of purchasing goods and services. This means you can optimize supplier selection and devise focused sourcing and procurement strategies. The SAP SRM user interface is based on the SAP NetWeaver Portal and Web Dynpro technologies. It provides a clear and effective means of managing the divergent information required by the different users within an organization. The SAP NetWeaver Portal design features transparent and seamless integration by displaying information from many SAP SRM application sources in a single portal browser window. This means that from your SAP SRM Control Center (the starting point in the application), you have access to all SAP SRM applications that apply to your current work tasks. You can also use SAP SRM applications without the SAP NetWeaver Portal and its navigation frame (see Portal-Independent Navigation Frame). This overview provides you with an introduction to SAP SRM, including: 

An introduction to the SAP SRM concepts



An overview of the SAP SRM user interface including basic navigation tips



Information on getting started

3.1 Automated Configuration 3.1.1 Automated Configuration Templates You can run automated configuration templates (ACTs) to automate the mandatory configuration steps necessary to connect the SAP Supplier Relationship Management (SAP SRM) system with other SAP systems.

Integration ACTs run in SAP NetWeaver Application Server (SAP NetWeaver AS) Java. SAP NetWeaver AS Java can be either a standalone component of an SAP NetWeaver installation or part of the SAP NetWeaver component of an SAP Solution Manager installation.

More Information For more information about automated configuration, see SAP Library for SAP NetWeaver on SAP Help Portal at http://help.sap.com Technology Consultant’s Guide Configuration Wizard Business Suite Connectivity Configuration - Overview . The following table lists the individual scenarios for which automated configuration is supported and where to find their corresponding connectivity guides. System Configuration SAP SRM on One Client in SAP ERP

Path to Documentation on SAP Service Marketplace http://service.sap.com/instguides SAP SRM SAP SRM Server 7.01

SAP Business Suite Applications

Connectivity Guide for Automated Configuration: SAP

SRM on One Client in SAP ERP Connecting SAP SRM to SAP ERP

http://service.sap.com/instguides

SAP Business Suite Applications

SAP SRM SAP SRM Server 7.01 Connectivity Guide for Automated Configuration: Connectivity Guide for Automated Configuration: SAP ERP to SAP Supplier Relationship Management

Connecting SAP SRM to

http://service.sap.com/instguides

SAP Business Suite Applications

SAP NetWeaver

SAP SRM SAP SRM Server 7.01

Business Warehouse

NetWeaver Business Warehouse to SAP Supplier Relationship Management

Connectivity Guide for Automated Configuration: SAP

(SAP NetWeaver BW)

3.1.2 Automated Configuration of the Portal Systems You can automate the configuration of the basic settings of SAP NetWeaver Portal used in SAP Supplier Relationship Management (SAP SRM). To integrate SAP SRM with SAP NetWeaver Portal, you must configure both the SAP SRM and SAP NetWeaver Portal systems, and you can use a wizard-based configuration tool to perform the mandatory configuration necessary in both systems for this integration.

More Information

For more information about automated configuration, see SAP Library for SAP NetWeaver on SAP Help Portal at http://help.sap.com Technology Consultant’s Guide Configuration Wizard Business Suite Connectivity Configuration - Overview . For more information about the automated configuration of SAP NetWeaver Portal used in SAP SRM, see SAP Service Marketplace at http://service.sap.com/instguides SAP Business Suite Applications SAP SRM SAP SRM Server 7.0

Guide for Automated Configuration: SAP SRM Portal

.

3.2 Portal Concepts This section explains the concepts of the SAP NetWeaver Portal that you need to understand when using the SAP Supplier Relationship Management (SAP SRM) application running in the portal. For information about the functions of the SAP SRM applications that are available in the SAP NetWeaver Portal for SAP SRM, see Functions. For information about the Portal content, that is, the roles, worksets, and iViews available for SAP SRM, seeBusiness Packages.

3.2.1 Control Center The control center is available to all users, irrespective of the role they have been assigned. You access it by chossing Home Overview Today in the navigation of the SAP NetWeaver Portal. The control center provides clear organization of content. In the Universal Worklist available in the control center, you receive messages, alerts, or workflow work items prompting you to take appropriate action. The control center then provides direct navigation to the necessary pages, employee self-services, or SAP SRM applications. The Home Overview Today page provides an overview of company broadcast news, alerts, task items, and notifications.

Control Center and Work Centers in SAP SRM

3.2.2 Work Center The work center is an area in the SAP NetWeaver Portal browser window that allows you to access the different work areas specific to your role(s). Each work center is represented by one or more tabs and is the place to start or resume work in a certain area. In SAP Supplier Relationship Management (SAP SRM), there are predefined user roles. Each user role has a tailored work center.

Example The Strategic Purchaser role has many tasks that are handled in different work centers, such as Strategic Purchasing, and Purchasing. The following graphic shows where you can access work centers in the SAP NetWeaver portal browser window.

Control Center and Work Centers in SAP SRM

3.2.3 Universal Worklist The Universal Worklist (UWL) is a list of work items and provides quick access to your critical work items and the relevant information within the context of the work center. Overview information is provided, but the main focus is on the list of work items. From the list, you can immediately complete the task or navigate directly to the SAP Supplier Relationship Management (SAP SRM) application where the task can be completed.

Features The Universal Worklist (UWL) supports you in the following ways: 

It aggregates workflow task items from multiple systems in one universal list



It displays additional information, as required, from document and object repositories, including attachments and other details



It helps you to personalize how work items are presented



It enables you to assign another user to your work items as a substitute in case of absence.

The UWL presents work lists resulting from workflows. The work item may be handled in any of the following ways: 

Using a single click, for example, an approval



By starting a self-service application, for example, creating a confirmation



By starting a transaction, for example, modifying a purchase order

The UWL allows you to manage your work by bringing together assignments from different workflow systems, including: 

Workflow



Alerts



Knowledge Management (KM) notifications



Collaboration tasks

3.2.4 Personal Object Worklist The Personal Object Worklist (POWL), which is located in the content area of the SAP NetWeaver Portal, is a query-driven worklist that contains procurement documents (business objects) from your work area. The list of objects is assembled so that you can work on a defined set of items. While adapting and saving queries is possible, the focus is on having predefined queries, which bring your work items to you. Simple, one-step actions are possible, but typically you navigate from the POWL to an application to work on the selected procurement document. The POWL with its flexible queries is particularly useful for users with the following work styles: 

Routine: repetitive work



Calendar-driven: periodic tasks

If you are using the classic or extended classic scenario as well as roles that enable you to access SAP ERP and SAP SRM documents (Strategic Purchaser (ERP/SRM) and Operational Purchaser (ERP/SRM)), the POWLs contain predefined categories, queries, search criteria, and buttons that allow you to work with documents from both SAP ERP and SAP SRM. In this case, when creating a purchasing document from within the POWL, you see a screen that allows you to select the SAP ERP or the SAP SRM system where you want to create the document. The respective application is then started automatically in either SAP SRM or SAP ERP.

Prerequisites To use the automatic refresh function of the POWL, your system must fulfill the following requirements: 

You use SAP NetWeaver 7.01 SPS 05 or higher.



You use SAP NetWeaver Portal 7.0 SPS 17 or higher.

To use the POWL to access purchasing documents in both SAP SRM and SAP ERP, you have done the following in Customizing for SAP Supplier Relationship Management: 

You have defined in which SAP systems you want to search and whether you want to use the Embedded Search. You do this under SRM Server Technical Basic Settings Define System Landscape .



You have specified the RFC destinations for the back-end systems (SAP ERP) where you want to search. You do this under SRM Server Technical Basic Settings Define RFC Destinations to SAP ERP for Input Help .



If you use POWLs that allow you to access SAP ERP and SAP SRM objects, you have scheduled the report Get ERP Customizing Data for Business Suite (/SAPSRM/GET_BS_DATA) to replicate data from SAP ERP to SAP SRM. This data has been defined in Customizing of SAP ERP, and replication makes it available for the input help and dropdown lists of the POWLs.

Note

You must either start the report every time you make changes in Customizing for SAP ERP or schedule a job that runs the report regularly. You can adapt the layout of the worklists to include or exclude columns and actions for purchasing documents. You can also modify the search criteria that are available to users when defining queries for POWLs. You do this in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings

POWL and Advanced Search

Adjust POWL Layout, Search Criteria, and

Pushbuttons . You can choose to display only the most important fields on the user interfaces of the shopping cart and confirmation personal object worklists (POWLs). You can also restrict sorting to sorting-relevant fields by activating the related Customizing switch in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings POWL and Advanced Search Activate/Deactivate POWL Optimization

.

To use this function, you must activate the business function SRM, Continuous Innovations (SRM_CONT_IMPR_1). The following table lists the delivered settings for the shopping cart POWL:

Sorting Sequence

Column ID

Visible Hidden Fixed Column

Filtering Allowed

Sorting Allowed

1

OBJECT_ID

x

x

x

2

DESCRIPTION

x

x

3

ITEM_NO

x

x

4

ITEM_DESCR

x

x

5

ITEM_STATUS

x

x

x

6

CREATED_AT

x

x

x

7

NET_VALUE

x

x

8

ITEM_CURR

x

x

x

CHANGED_AT

x

x

x

CHANGED_BY

x

x

x

CREATED_BY

x

x

x

QUANTITY

x

x

UNIT

x

x

STEXT

x

x

ORDERED_PROD

x

x

POSTING_DATE

x

x

TOTAL_VALUE

x

x

CURRENCY

x

x

EXLIN

x

x

x

x

The following table lists the delivered settings for the confirmation POWL:

Sorting Sequence

Column ID

Visible Hidden Fixed Column

Filtering Allowed

Sorting Allowed

1

OBJECT_ID

x

x

x

2

DESCRIPTION

x

x

3

ORDERED_PROD

x

x

4

ITEM_DESCR

x

x

5

QUAN_CF

x

x

6

UNIT

x

x

7

CREATED_ON

x

x

x

x

REF_DOC_NUM

x

x

x

POSTING_DATE

x

x

x

QUAN_CF_E

x

x

STATUS_DESCR

x

x

ITEM_NO

x

x

CREATED_BY_NAME

x

x

x

x

Features Automatic Refresh By default, the personal object worklist (POWL) is automatically refreshed when you have created, changed, or deleted procurement documents within the POWL: Newly created documents are inserted, changed documents are updated, and deleted documents disappear from the POWL.

Note 

The automatic refresh affects only those procurement documents that are listed in the query that you are currently accessing. This ensures that the list is refreshed with optimal performance. If you want to see the changes in other queries as well, you have to navigate to the query and choose Refresh.



After the automatic refresh, the new or changed document is only displayed in the POWL if it meets the search criteria that you defined for the active query.

You can deactivate the automatic refresh function in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings POWL and Advanced Search Deactivate/Activate Automatic Refresh of POWL

. In this case, users have to choose Refresh manually to

display the changes. You can define the Customizing settings for the automatic refresh in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings POWL and Advanced Search Define Number and Intervals of Iterations for Automatic Refresh of POWL

More Information

.

For more information about the Personal Object Worklist, see SAP Help Portal at http://help.sap.com under SAP ERP SAP ERP Enhancement Packages

SAP ERP Cross-

Application Functions Cross-Application Components General Application Functions Personal Worklist Embedded Search

3.2.5 Portal Desktop The SAP Supplier Relationship Management (SAP SRM) portal desktop refers to the entire portal screen, including any displayed content and its layout. It also contains the tools you need to personalize your portal.

SAP SRM Portal Desktop

The portal desktop is divided into the following areas: 

Header Area: This is the part of the SAP SRM portal that remains static when you navigate from one tab or page to another. This area contains the top-level navigation for getting around SAP SRM.



Navigation Area: The left-hand pane just below the page title bar is reserved for navigation iViews.



Content Area: The part of the desktop that displays content, containing one or more iViews. It changes when you navigate from one page or iView to another.

3.2.6 Navigation Navigation in the SAP Supplier Relationship Management (SAP SRM) application is divided into the four following areas: 

Work Center navigation



Detailed navigation



Application navigation



Service Map navigation

Work Center Navigation The tabs, such as Employee Self-Services or Purchasingin the Header area are the principal work centers for navigation. These are the entry points into the SAP SRM system areas and their sub menus.

Detailed Navigation The content shown in this area depends on which Work Center tab you select. Selecting any of the worksets in theDetailed Navigation area, the corresponding personal object worklist (POWL) is displayed in the portal content area.

Services Area Once you select any of the links in the Services area, a new page displays the corresponding SAP SRM application content for this link.

Application Navigation You can navigate from within the SAP SRM applications by doing one of the following: 

Using the Advanced Search function (search by multiple criteria and open a document from the result list)



Clicking on any link (click the purchase order number)



Selecting a table row in UWL or POWL and clicking on an associated button

Service Map Navigation In all work centers, there is a Service Map, which provides a detailed services site map of the available work options for the selected work area.

3.3 Portal-Independent Navigation Frame You can use this function to work with the applications of SAP Supplier Relationship Management (SAP SRM) if you are not using SAP NetWeaver Portal and therefore cannot use its navigation frame. The look and feel of the Portal-independent navigation frame is similar to the Portal-based navigation frame. The functions available to the individual users depend on the PFCG roles, defined in the Role Maintenance transaction (PFCG), that you assign to the users. The standard PFCG roles delivered by SAP include all work centers, worksets, and service links that you need to perform the same procurement functions that are available in the standard SAP NetWeaver Portal roles for SAP SRM. For more information about the PFCG roles delivered by SAP, see Roles. The Portal-independent navigation frame is based on the SAP NetWeaver Business Client (HTML) and contains the following elements: 

Work centers



Worksets



Service link folders



Service links

Unlike in SAP NetWeaver Portal, the Home work center contains the following entries: 

Work Overview



Displays the content of the Portal-independent inbox. Shopping Area Corresponds to Employee Self-Service in SAP NetWeaver Portal.



Personalization Here, users can change their personal settings, such as time zone or password, as well as their contact information, such as their department address or phone number.

When users enter a work center, the service map for this work center is displayed in the content area, providing quick access to all procurement documents that are available for the role to which a user has been assigned.

Integration If you choose to use the Portal-independent navigation frame, the roles that are delivered as part of the Business Package for SAP SRM cannot be used. Instead, existing authorization roles in SAP SRM are used to define the content of the navigation frame, such as the following screen elements: 

Menu structure, including work centers, worksets, and service link folders.



Service links necessary to start applications. Examples: RFx and Shopping Cart



Applications that are started directly from a business object and not from the menu structure. ObjectBased Navigation (OBN) is used for indirect navigation in the Portal-independent navigation frame. The object model of the OBN provides a definition of all business objects and their operations. The semantic business objects are mapped in the roles to the available Web Dynpro applications. Example: Edit Shopping Cart started from a shopping cart listed in the POWL



Applications displayed in the content area to which users navigate from the navigation frame. Examples: Shopping Area and POWL The authorization roles, defined and maintained in the Role Maintenance transaction (PFCG), correspond to the SAP NetWeaver Portal roles as described in SAP Note 1261825.

Note If you migrate from a system landscape with SAP NetWeaver Portal to a landscape without a Portal and you have customer-specific Portal roles, you cannot migrate these roles automatically. Instead, you can use theRole Maintenance transaction (PFCG) to either adapt the roles delivered by SAP or to model new roles that match the Portal roles you were previously using. Cross-Application Navigation Navigation from SAP SRM to the following applications is supported: 

SAP ERP



cFolders



SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

Features The navigation frame provides many of the same features as the navigation provided by SAP NetWeaver Portal. However, the following functional differences exist between running SAP SRM in SAP NetWeaver Portal and running it in the Portal-independent navigation frame: 

Universal Worklist Instead of the Universal Worklist (UWL) provided by SAP NetWeaver Portal, you can use a Portalindependent inbox. This inbox offers access to work items, alerts, and notifications from the SAP SRM system, but not from other systems.



Mapping of User IDs Between Systems If you work with more than one SAP system, for example, an SAP ERP and an SAP SRM system, we recommend that users have the same ID in all systems. Otherwise, the users have to log on again when navigating between systems.



Personalization Options o

When users are about to leave an application, a confirmation dialog box appears, asking them whether they want to save their work before the application is closed. You cannot deactivate this dialog box.

o

Users who want to work in a language different from the browser language must make this setting every time they log on. There is no option to save this setting.

o

Only one style sheet theme is available; this effects, for example, the color scheme, font type, and size.

The following functions that are available when you run SAP SRM in SAP NetWeaver Portal are not supported: 

Business Package for Supplier Collaboration The roles that are delivered with the Business Package for Supplier Collaboration are not supported.



User-Independent Customizing SAP SRM Administrators cannot make user-independent Customizing settings as described in SAP Library for SAP NetWeaver on SAP Help Portal at http://help.sap.com SAP NetWeaver by Key Capability

Application Platform by Key Capability

Technology Web Dynpro ABAP

ABAP Technology UI Technology Web UI

Web Dynpro ABAP: Development in Detail Advanced Concepts

Adjustments Personalization and Customizing

under the section Customizing: User-Independent, Client-

Wide Modifications. 

User Self-Registration The user self-registration function and the corresponding approval workflow are not supported. User self-registration is only available if you use SAP NetWeaver Portal.



Accessibility Accessibility functions for the blind or visually impaired are neither supported by the navigation frame nor by SAP SRM applications running in the navigation frame. This is due to restrictions in the underlying technology, NetWeaver Business Client for HTML. For more information, see SAP Note 1029940.



NetWeaver Business Client for Desktop To run SAP SRM applications in the Portal-independent navigation frame, you can only use the NetWeaver Business Client for HTML, not the NetWeaver Business Client for Desktop.

More Information For information about the functions that are available when you run SAP SRM in SAP NetWeaver Portal, see SAP Help Portal at http://help.sap.com SAP Supplier Relationship Management Overview Portal Concepts . For more information about the SAP NetWeaver Business Client (HTML), see SAP Library for SAP NetWeaver on SAP Help Portal at http://help.sap.com SAP NetWeaver by Key Capability Application Platform by Key Capability

ABAP Technology UI Technology SAP NetWeaver Business Client

.

3.4 Roles Roles describe the activities that internal employees or external business partners can perform in a business scenario. After logging on to the system, users see all functions that they need to process their tasks. Roles are defined using transaction code PFCG. For more information, see Customizing for SAP Supplier Relationship Management (SAP SRM) under

SRM Server

Cross-Application Basic Settings

Roles

Define Roles . You can find a complete list of all roles available for SAP SRM in SAP Note 1261825.

Implementation Considerations You can access SAP SRM applications using either SAP NetWeaver Portal or the Portal-independent navigation frame. If you choose to use SAP NetWeaver Portal, the roles that are delivered as part of the Business Package for SAP SRM are used to define the content that is visible for each role. In this case, the PFCG roles described here are used as authorization roles only. For each Portal role, there is a corresponding PFCG role. For more information about the Portal roles, see Business Package for SAP Supplier Relationship Management. If you choose to use the Portal-independent navigation frame, the PFCG roles are used to define the content of the navigation frame, for example, the menu structure, service links, and Web Dynpro applications. For more information, see Portal-Independent Navigation Frame.

Integration The Portal-independent navigation frame is based on SAP NetWeaver Business Client (HTML). For more information about how to define the menu structure for SAP NetWeaver Business Client, see SAP Help Portal at http://help.sap.com under SAP NetWeaver Library SAP NetWeaver by Key Capability

Application Platform by Key Capability

Business Client

5 Role Maintenance in PFCG

ABAP Technology UI Technology SAP NetWeaver

.

For more information about how to define the navigation for SAP NetWeaver Business Client, see 5.10 Object-Based Navigation (OBN) under the path above.

3.4.1 Roles for SAP SRM 7.0 The following sections describe the PFCG roles available for SAP Supplier Relationship Management 7.0 (SAP SRM 7.0).

Roles for SAP SRM Name

Technical Name

SAP SRM: Invoice Verification Clerk

/SAPSRM/ACCOUNTANT

SAP SRM: Administrator

/SAPSRM/ADMINISTRATOR

SAP SRM: User Administrator

/SAPSRM/ADMINISTRATOR_USR

SAP SRM: Bidder

/SAPSRM/BIDDER

SAP SRM: Employee

/SAPSRM/EMPLOYEE

Name

Technical Name

SAP SRM: Manager

/SAPSRM/MANAGER

SAP SRM: Operational Purchaser

/SAPSRM/OP_PURCHASER

SAP SRM: Component Planner

/SAPSRM/PLANNER

SAP SRM: Internal Dispatcher

/SAPSRM/RECIPIENT

SAP SRM: Purchasing Assistant

/SAPSRM/SECRETARY

SAP SRM: Strategic Purchaser

/SAPSRM/ST_PURCHASER

SAP SRM: Supplier

/SAPSRM/SUPPLIER

SAP SRM: Survey Owner

/SAPSRM/SURVEY_OWNER

SAP SRM: Survey Reviewer

/SAPSRM/SURVEY_REVIEWER

Authorization for accessing SRM Enterprise Services

/SAPSRM/ENTERPRISE_SERVICES

Roles for SAP SRM, Procurement for Public Sector (PPS) Name

Technical Name

SAP SRM PPS: Manager

/SAPPSSRM/MANAGER

SAP SRM PPS: RFx Respondent

/SAPPSSRM/BIDDER

SAP SRM PPS: Employee

/SAPPSSRM/EMPLOYEE

SAP SRM PPS: Procurement

/SAPPSSRM/PROCUREMENT

SAP SRM PPS: Requisitioning

/SAPPSSRM/REQUISITIONING

Roles for SAP SRM on One Client in SAP ERP Name

Technical Name

SAP SRM One Client: Invoice Verification Clerk

/SAPSRM/1C_INVOICER

SAP SRM One Client: Supplier

/SAPSRM/1C_SUPPLIER

Roles for Supplier Self-Services Name

Technical Name

SAP SRM SUS: Administrator Purchaser

/SAPSRM/SUS_ADMIN_PURCHASER

SAP SRM SUS: Administrator Supplier

/SAPSRM/SUS_ADMIN_SUPPLIER

SAP SRM SUS: Bidder

/SAPSRM/SUS_BIDDER

SAP SRM SUS: Dispatcher

/SAPSRM/SUS_DISPATCHER

SAP SRM SUS: Invoicing Party

/SAPSRM/SUS_INVOICER

SAP SRM SUS: Manager

/SAPSRM/SUS_MANAGER

SAP SRM SUS: Order Processor

/SAPSRM/SUS_ORDER_PROCESSOR

SAP SRM SUS: Supplier Screener

/SAPSRM/SUS_ROS_PROCESSOR

Name

Technical Name

SAP SRM SUS: Scheduling Agreement Release Processor

/SAPSRM/SUS_SAR_PROCESSOR

SAP SRM SUS: Service Agent

/SAPSRM/SUS_SERVICE_AGENT

SAP SRM SUS: Central Service Entry Clerk

/SAPSRM/SUS_SERVICE_MANAGER

3.4.2 Roles for SAP Enhancement Package 2 for SAP SRM 7.0 The following sections describe the PFCG roles that are new in SAP enhancement package 2 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.0). These roles are intended to be used when all business functions are activated. If you do not use all business functions, you must make changes to the content of the roles. For more information, see Important Information About Roles in Enhancement Packages. Roles that are not listed here have not been changed for the enhancement package. You can find the documentation for the unchanged roles under Roles for SAP SRM 7.0. If you do not activate any business functions, you can use the SAP SRM 7.0 roles.

Recommendation We recommend that you do not assign two versions of the same role to one user. For example, do not assign/SAPSRM/OP_PURCHASER_EHP1 and /SAPSRM/OP_PURCHASER_EHP2 to the same user.

Note For roles containing transaction codes for an SAP ERP system, the authorizations are not assigned automatically. Only when you edit a role using transaction PFCG in the SAP ERP system does the system assign default authorizations for these transaction codes. You can then change the authorizations according to your needs.

Roles for SAP SRM Name

Technical Name

SAP SRM: Operational Purchaser

/SAPSRM/OP_PURCHASER_EHP2

SAP SRM: Strategic Purchaser

/SAPSRM/ST_PURCHASER_EHP2

3.5 Enterprise Services for Cross-System Data Exchange You can use either PI-based enterprise services or PI-independent enterprise services for asynchronous communication between SAP Supplier Relationship Management (SAP SRM), SAP ERP, and other systems.

Features PI-Based Enterprise Services PI-based enterprise services require the installation of an SAP NetWeaver Process Integration (SAP NetWeaver PI) server and are used in the following business scenarios:  Service Procurement Classic 

Service Procurement External Staffing



Strategic Sourcing



Operational Contract Management

 Plan-Driven Procurement with Supplier Integration For more information, see SAP Help Portal at http://help.sap.com

SOA

SAP SRM

.

PI-Independent Enterprise Services PI-independent (asynchronous) enterprise services are based on the Web Service Reliable Messaging (WSRM) protocol. They do not require the installation of an SAP NetWeaver Process Integration (SAP NetWeaver PI) server and are used in the following business scenarios:  Service Procurement Classic 

Operational Contract Management

Note The following restriction applies: supplier self-services (SUS) still requires the installation of SAP NetWeaver PI. For more information, see PI-Independent Enterprise Services.

3.5.1 PI-Independent Enterprise Services SAP Supplier Relationship Management (SAP SRM) provides a number of PI-independent enterprise services. These are based on the Web Service Reliable Messaging (WSRM) protocol. WSRM enables point-to-point communication between SAP Business Suite applications for asynchronous enterprise services with compatible signatures. If you use WSRM, communication between the platform components no longer requires the installation of an integration server, such as SAP NetWeaver Process Integration (SAP NetWeaver PI).

Integration All enterprise services listed below support both the WSRM protocol and the SAP NetWeaver PI 3.0 protocol. For more information about the enterprise services, see SAP Help Portal at http://help.sap.com SOA SAP SRM . This function is used in the Service Procurement and Contract Management business scenarios.

Note The following restriction applies: Supplier self-services (SUS) still requires the installation of SAP NetWeaver PI.

Prerequisites You have performed the configuration steps as described in SAP Solution Manager under name> Configuration SAP SRM



next valid bid price. It is possible that when you enter bids for multiple line items, some of those bids will be accepted while others are rejected for being too high.

Auction status changed

Anytime the auction status changes, for example from active to paused or the

from < > to < >

reverse, the system informs you of the change with this message. In addition, the auction status is updated in the header area of the cockpit interface.

Auction end date

Anytime the auction is extended, whether automatically or manually, the system

extended from < > to <

informs you of the new end date and time. This information is also updated in the

>

header area of the cockpit interface along with the time remaining.

The following bid has

This message informs you that the purchaser has deleted a bid, regardless of

been deleted for line

whether or not that bid was yours.

item < >:

Activities Activity

Description

Launching the Live

An auction must be published before you can access the cockpit. 1. Locate the auction of interest in SAP Bidding Engine, for example by following the link

Auction Cockpit

contained in a notification e-mail. 2. In the search results table, you can launch the Live Auction Cockpit directly or go to the auction detail page first.



If the auction is active, you can click

(Display Auction) to go directly to the

cockpit. 

Otherwise, you can choose the auction to view the details. Once the auction is active, you can launch the cockpit from the auction detail page by clicking Live Auction.

The cockpit opens in a new window and is loaded with the data for the live auction you selected. If terms or conditions have been set, you are presented with an agreement page before the cockpit itself loads. To continue, choose Accept. Submitting a bid

1. Select the item for which you wish to enter a bid. 2. Click within the Bid Price entry field. 3. Enter your bid price. If you choose Enter , the system updates the total bid price value without actually submitting your bid. You may enter bids for one or more items before submitting them. 4. To submit your bid or bids, click Submit. 5. Depending on the purchaser's system configuration, a confirmation message may appear. To submit your bid, click OK. If your bid was successfully validated, a system message appears and the relevant auction data is updated. If your bid was not successfully validated, a system message appears and your bid entries remain in the table. In this case, adjust your bid entries before submitting them again.

6.6.8.5 Proxy Bidding Proxy bidding enables the system to automatically bid on a bidder"s behalf, promoting competitive bidding by allowing bidders to more easily monitor the auction, since it is not necessary for them to enter bids manually. 

Proxy bidding can only be enabled for auctions that use the overall best bid validation.



Proxy bidding can only be enabled if bid decrements greater than zero have been defined on all line items.



Proxy bidding is not available in auctions with lots.

When proxy bidding is enabled, bidders submit a minimum bid to indicate the lowest they are willing to submit for a line item. The system then acts as a proxy agent and rapidly bids on line items on the bidder's behalf during the auction, placing bids according to bidding parameters such as next valid bid, bid decrement, and reserve price to maintain the bidder's leading position in an active auction until the auction ends or the minimum bid is reached.

Integration 

Proxy bids are recorded in the bid history and displayed in the chart data, available to both purchasers and bidders. However, a bidder's minimum bid is only visible to the bidder.



If a purchaser is logged on to the system as a bidder to perform surrogate bidding, the bidder's minimum bid is not displayed to the purchaser in order to maintain the bidding confidentiality.



When proxy bidding is enabled, columns are added to the line item table in the bidder's cockpit to distinguish the difference between his minimum bid and current bid as well as the current bid value.



You can inform bidders that proxy bidding is enabled for an auction by adding supplier text on the Documents tab (when defining basic data at header level during auction creation).

Features 

Bidders can submit multiple minimum bids prior to the auction end time but subsequent bids must be less than the previous minimum bid. In addition, subsequent bids take precedence, disabling the previous bid's proxy agent.



If the purchaser deletes a bid in an auction with proxy bidding, the proxy agent for that bid is disabled and the system stops bidding on behalf of that bidder. In order for the system to resume bidding on this bidder's behalf, the bidder must submit a new, valid minimum bid.

Example Following are some examples of how the system submits bids during proxy bidding, based on a bidder's minimum bid and calculations determined by defined bidding parameters. 

If a bidder places a minimum bid that is less than the reserve price, the system automatically places the current bid on the bidder's behalf at the reserve price, even though the amount reduced may be larger than the bid decrement defined in the auction.



If prior to Bidder 1 submitting his minimum bid, the system receives a minimum bid from Bidder 2 that is lower than that of Bidder 1 by less than the bid decrement, the minimum bid of Bidder 1 may be outbid by a bid with a difference less than the bid decrement amount posted. In this case, the system grants the minimum bid of Bidder 2 (by disregarding the bid decrement ) since it was placed before that of Bidder 1 and is lower.



If two minimum bids of the same value are submitted in an auction, the bid that was placed first takes precedence. Even if the minimum bid of Bidder 1 is equal to or less than the next valid bid, it is possible that Bidder 2 entered the same minimum bid price before Bidder 1, and so the system recognizes the bid of Bidder 2 before that of Bidder 1; in this case, Bidder 1 is outbid by a bid with the same value as the minimum bid of Bidder 2.

6.6.8.6 Cascading Line Item Auctions Cascading line item auctions make the bidding process more efficient for bidders and thus promote competitive bidding. In cascaded auctions, lots and line items open to bidding at the same time, but close to bidding one at a time based on parameters set by the purchaser. Therefore, rather than monitoring and bidding on all lots and line items simultaneously, bidders can focus their attention on a single lot or line item at a time.

Integration In order to set an automatic extension in a cascaded auction, the minimum duration and end-time gap must be greater than the auction inactivity period defined. Auction extensions affect active cascading lines only; end times are recalculated while maintaining the defined end-time gap between cascading lines.

Features The bidding period for items in lots is set at lot level; all line items in a lot have the same end time. The next lot or line item to end in an auction is marked in boldface type in the line item table; in addition, time remaining for active lots and line items is displayed in the line item table for easy monitoring.

Note 

You can inform bidders that cascaded bidding is enabled for an auction by adding supplier text on theDocuments tab when defining basic data at header level during auction creation.



You can enable cascading auctions during auction creation by setting the cascading auction indicator as well as defining a minimum duration for bidding on the first line and a minimum end-time gap for each subsequent line to establish different end dates for each lot or line item in the auction. When the auction starts, bidding is open on all lines; but, as the auction progresses and set bidding periods end, bidding ceases in a cascading fashion, making it permissible to bid only on active lots and line items.



You cannot enable the cascading feature for Dutch Auctions

6.6.8.7 Dutch Auction A Dutch Auction is a type of reverse (buy-side) auction with one buyer and multiple suppliers. In Dutch Auction the auctioneer raises the price from a low starting point until a bidder agrees to sell at that price. The purchaser enters a start price, a time increment and a price increment. Bidding begins at the start price. If no supplier is willing to sell at the starting price, the price automatically goes up by the price increment, after the time increment has passed. The first supplier that raises his or her hand is the winner, and the auction line item is closed at that point.

Integration To use Dutch Auctions, you must make customizing settings in the Implementation Guide (IMG) activity Supplier Relationship Management Supplier Self-Services Cross-Application Basic Settings Settings for Documents Define Transaction Types.

Example An airline is overbooked. To resolve the overbooking, an attendant may look for a person willing to give up his or her current seat assignment (sell the seat) and delay his or her travel plans. The attendant may offer to buy the seat for $100. If no one replies in a minute or two, the attendant may raise the offer to $200. This continues until a passenger raises his or her hand. The passenger is paid, leaves, and the auction is over.

6.6.8.8 Savings Calculation If an auction includes reference prices (defined at item level during auction creation), the system uses them to calculate savings at item and auction levels. Savings are calculated both as absolute and percentage values — both of which are displayed to purchasers in the Live Auction Cockpit.

Features As soon as the system receives a new bid, the savings information for the line item as well as for the auction as a whole is updated. If there is no reference price for an item, the savings amount is zero. If

there is no bid for an item, the savings amount is also zero. The calculations to determine the savings amount and percentage are listed below.

Note If factored-cost bidding settings have been defined for bidders, and the cockpit has been set to displayNormalized Prices, the savings information is based on the normalized value of the best bid for each item. If the cockpit is set to display Raw Prices, the savings information is based on the raw value of the best bid for each item. Factored-cost bidding settings may actually affect which bid is considered the best bid. For more information, see Factored-Cost Bidding.

Item Savings Calculations The savings amount for each item is determined by first subtracting the best bid price from the reference price, then multiplying the result by the quantity divided by the price unit: Savings = (reference price – best bid price) * (quantity/price unit) The savings percentage for each item is determined by first subtracting the best bid price from the reference price then dividing the result by the reference price and finally multiplying that result by one hundred: Savings (%) = ((reference price – best bid price) / reference price) * 100

Total Savings Calculations The total savings amount for an auction is simply the sum of all individual item savings amounts: Total savings amount = ∑(savings amounts) The total savings percentage for an auction is determined by first adding across all line items the result of multiplying the reference price by the quantity divided by the price unit. Once that sum is calculated, divide it into the total savings amount. Multiply the resulting figure by one hundred to achieve the total savings percentage: Total savings percentage = (total savings amount / ∑(reference price * (quantity / price unit))) * 100

Example The following table contains savings calculations at item level where no factors exist. Item

Quantity

Item 1

1000

= (500-550) *

= ((500-550) /

(1000/1)

500) * 100

Item 2

1000

= (2000-1800) *

= ((2000-1800)

(1000/10)

/ 2000) * 100

Item 3

1000

= (800-650) *

= ((800-650) /

(1000/1)

800) * 100

Price

Reference

Best

Savings ($) /

Savings (%) /

Unit

Price ($)

Bid ($)

Actual Calculation

Actual Calculation

1

500

550

-50000

-10%

10

2000

1800

20000

10%

1

800

650

150000

18.75%

The corresponding savings at auction level are as follows:

Total Savings

Total Savings

Total Savings

($)

Calculation

(%)

120000

150000 + 20000 -

8%

Total Savings (%) Calculation

= (120000 / ((500*(1000/1)) + (2000*(1000/10)) +

50000

(800*(1000/1))) * 100

6.6.8.9 Factored-Cost Bidding Factored-cost bidding enables the purchaser to assign a competitive advantage or disadvantage to bidders through the use of adders and multipliers defined at auction header level, item level, or both. If factors exist at both header and item

the values assigned at item level have precedence over those at

levels...

header level.

In auctions with lotting, factors cannot be

are instead assigned at lot level and header level; any lot-level

assigned to line items included in lots,

factors take precedence over those defined at the auction header.

but... You can assign factors during auction

after which no further changes to factored-cost bidding settings are

creation and until the auction becomes

allowed.

active... Factors are...

not visible to bidders, nor are the effects of factored-cost bidding.

Bidders only see...

the transformed auction price information in the Live Auction Cockpit and their own raw bid prices (based on the transformed next valid bid price).

Purchasers can choose to view the

raw or normalized values.

auction and bid price information in either... To see the transformed values displayed for a particular bidder, purchasers can log on as that bidder as they would when submitting surrogate bids. For more information, see Conducting Live Auctions.

Integration The settings for factored-cost bidding affect both the bid validation function and savings calculations for live auctions. For more information, see: Live Auction Transaction Types Savings Calculation

Features Adders Adders are positive or negative integer values (expressed in the auction currency) that when assigned to a bidder, get added to that bidder's bids. A positive adder value places the bidder at a competitive disadvantage while a negative adder value lends the bidder a competitive advantage. An adder value of zero is considered neutral. Purchasers assign adders on the Factors tab page at header and/or item level when creating an auction.

Note

If you select a company in the Factors table without maintaining adder or multiplier values, the system automatically applies zero factors. If this occurs at item level, after you have maintained factors at header level, the applied zero factors take precedence over those you set at header level. To remove a company (and any factors set) from the Factors table, choose Delete. Typically, adders should not exceed the positive or negative equivalent of the start price defined for an item.

Example If the start price for an item is 1400, the adder should be limited to a value between -1400 and 1400.

Multipliers Multipliers are positive or negative percentage values that when assigned to a bidder, are multiplied by that bidder's bids. Percentage values above zero place the bidder at a competitive disadvantage while percentage values below zero place the bidder at a competitive advantage. A multiplier value of zero is considered neutral. Purchasers assign multipliers on the Factors tab page at header and/or item level when creating an auction. The allowed value range for entering multipliers is -99 to 100, inclusively. The calculations based on multipliers actually use a positive decimal form of the multiplier value.

Example A multiplier entered as 10 (%) is calculated as a value of 1.1. A multiplier entered as -10 (%) is calculated as a value of 0.9. A multiplier entered as 0 (%) is calculated as a value of 1.

Calculations The system uses factors to calculate auction and bid price information. The foundations of these calculations are the normalized price and transformed price.

Normalized Prices Normalized price = (raw price * multiplier) + adder Normalized prices are the result of applying the defined adder and multiplier values to the raw value of the price being normalized. For example, the normalized bid price is the result of applying the factors assigned to a bidder to the raw bid price submitted by that bidder. Normalized prices are used by the system to validate bids. If normalized prices extend beyond the number of decimal points allowed for a currency, the system rounds up the price and uses the rounded price for bid validation.

Example Before validating the bids submitted by each bidder, the system first normalizes the next valid bid price based on the best bid price used in the validation logic. · If the calculated normalized next valid bid for Bidder A is 990.1298, the system rounds up the value to 990.13. · If the calculated normalized next valid bid for Bidder B is 990.1201, the system still rounds up the value to 990.13.

In the purchaser view of the cockpit, normalized prices are calculated per line item according to the factors defined for the bidder who submitted the best bid for the item. By setting the cockpit to display normalized prices instead of raw prices, purchasers may notice a difference in the following values: 

Best bid price



Savings amount



Savings percentage

Transformed Prices Transformed price = (normalized price - adder ) / multiplier Transformed prices are the result of applying defined adder and multiplier values to the normalized value of the price being transformed. In the case of prices set by the purchaser when creating the auction, that is, start price and reserve price, the normalized price is equal to the raw price since the system uses neutral factors to normalize those price values. If transformed prices extend beyond the number of decimal points allowed for a currency, the system ignores all values beyond the allowed decimal point.

Example Auction A uses a currency limited to two decimal points. Auction B uses a currency limited to three decimal points. If the calculated transformed start price for both auction A and auction B is 1954.45183, the transformed start price displayed in the cockpit for auction A is 1954.45, whereas for auction B it is 1954.451. The bid decrement values are not directly affected by adders but are by multipliers. The decrement value displayed to bidders with multipliers assigned differs depending on whether the purchaser defined an absolute or percentage bid decrement. 

For absolute bid decrement values: Transformed bid decrement = bid decrement / multiplier



For percentage decrement values: Transformed bid decrement = (normalized best bid price * bid decrement %) / multiplier

If there are no bids yet, the decrement value is equal to zero.

Factored-Cost Bidding in Auctions with Multiple Currencies In auctions with multiple currencies, bid prices (including those from proxy bidding) and factors are calculated in auction currency but displayed to bidders in their selected bid currency. Bids are normalized to the auction currency for bid validation and ranking. When a bidder submits a bid in the selected bid currency, the system converts the bid price into the auction currency before factors are applied and the bid price is normalized. The system uses this normalized bid price to rank the bid and then calculates the next valid bid based on the normalized price less the bid decrement. Factors are then applied to the next valid bid before the system converts the resulting transformed price into bid currency and displays the bid rank and next valid bid to the bidder.

Example Transformed Prices The following auction item values are defined by the purchaser: Start

Absolute

Reference

Quantity / Price

Bidder A:

Bidder B:

Bidder C: No

Price

Decrement

Price

Unit

Adder

Multiplier

Factors

1000

5

915

500 / 1

10

10

--

The following transformed values are displayed to the bidders: Bidder

Start Price

Decrement

Bidder A

990

5

990

= 1000 - 10

No change

= start price

909.09

4.54

909.09

= 1000 /* 1.1

= 5 / 1.1

= start price

1000

5

1000

Bidder B

Bidder C

Best Bid

Next Valid Bid

Bidder C submits a bid for 900: Bidder

Start Price

Decrement

Best Bid

Next Valid Bid

Bidder A

990

5

890

885

= 900 – 10

= 890 – 5

818.18

813.64

= 900 / 1.1

= 818.18 – 4.54

900

895

Bidder B

909.09

Bidder C

4.54

1000

5

Normalized Prices In the same auction, with the same settings, Bidder B submits a bid for 800. The purchaser sees the following normalized values: Start Price

Best Bid

Reference Price

Savings

Savings (%)

1000

880

915

17500

3.82%

= (915 – 880) * 500

= ((915-880) / 915) * 100

= 800 * 1.1

Raw Prices In the same auction for the same bid but with the raw prices displayed instead of normalized: Start Price

Best Bid

Reference Price

Savings

Savings (%)

1000

800

915

57500

12.56%

= (915 – 800) * 500

= ((915-800) / 915) * 100

6.6.8.10 Lotting You can create lots via the outline mechanism to group related line items in order to structure complex auctions. Lots give bidders the flexibility to distribute bid price among line items in the lot, thus promoting competitive bidding.

Integration Factored-cost bidding can be used in auctions with lotting; for those line items included in lots, factors are assigned at lot level. Any lot-level factors take precedence over those defined at auction header level.

Note 

When converting a RFx with lots into an auction, bids with conditions are not copied to the auction.



Lots cannot be used with Dutch Auctions

Features 

Bidders must bid on every item in a lot before they can submit their bid; bid prices entered at line item level are aggregated at the lot level where bid validation, comparison, and monitoring occur.



Bid ranking is based on the total bid value of the lot.

Activities During auction creation, purchasers define line item start price, reserve price, and bid decrement at lot level, while the reference price is defined at item level. For more information, see Creating Live Auctions. Purchasers award auctions at lot level only.

6.6.8.11 Multiple Bid Currency Auctions You can define multiple acceptable bid currencies at auction level, per auction, to enable bidders to bid on an auction in a currency other than the auction currency you set. This function makes the bidding process more efficient for bidders by allowing them to bid in their currency of choice.

Integration Bid prices (including those from proxy bidding) and factors are calculated in the auction currency but displayed to bidders in their selected currency. Bids are normalized to the auction currency for bid validation and ranking. 

When converting a RFx with bids in multiple currencies into an auction, the currency exchange rate on the date of auction publication is used to rank any bids copied during conversion unless a currency conversion date is defined prior to publication.



Changes made to the auction prior to publication (such as the start price) may cause the system to rerank bids copied during conversion.



Bids are ranked again during the auction according to the currency exchange rates available on the auction start date or the currency conversion date maintained, if it is earlier than the start date.



Currencies in which no bids have been submitted can be deleted when the RFx is converted into an auction; you can define additional acceptable, alternative bid currencies prior to auction publication.

Prerequisites You have maintained currency exchange rates in SAP Bidding Engine by making the appropriate settings in Customizing: SAP Implementation Guide SAP Web Application Server General Settings Currencies Enter Exchange Rates .

Features 

Once a bidder submits a bid, it is not possible to change the selected currency. The currency selection applies to all lots and line items in the auction; all price fields displayed to the bidder in the cockpit reflect the selected currency.



Currency exchange maintained in SAP Bidding Engine vary by date. You can define a currency conversion date to specify the currency exchange rate used during bid comparison. If the currency conversion date is defined as prior to the auction start date, the currency exchange rate displayed in

the auction reflects that setting as well. If you choose a conversion date that is after the auction start date, the currency exchange rates used during bid comparison may differ from that of the start date that is displayed during the auction. If no conversion date is set, the currency exchange rate used during the auction is that of the auction start date and the currency exchange rate is used during bid comparison is that of the date on which bid comparison is performed. 

Quotes created at the end of the auction process reflect the bidder's selected currency. The currency exchange rate used in the auction is not fixed for follow-on processes.



Multiple currencies can be maintained in auction templates; however, currency conversion dates cannot.



Multiple currencies and the corresponding exchange dates from bid comparison are reflected in auction reporting.

Activities During auction creation, purchasers select an auction currency and acceptable bid currencies at header level. You can define a currency conversion date to specify the currency exchange rate used during bid comparison. The bidder selects a bid currency prior to submitting bids.

6.6.8.12 Conversion of RFx to Auction You can create an auction by converting an RFx into an auction. This enables you to process converted auctions more efficiently and use bids copied from an RFx to drive competitive bidding. You can choose to copy full-quantity bids without attributes from the RFx to the auction; only valid bids created for the current external version of the RFx are transferred during conversion.

Integration Converting an RFx with bids in multiple currencies into an auction affects the currency exchange rate used to rank bids. Changes made to the resulting auction prior to publication may cause the system to rerank bids copied during conversion. For more information, see Multiple Bid Currency Auctions.

Activities 1. You can create a live auction from an RFx by choosing Convert to Auction. 2. You then choose the auction transaction type as well as select which bids, if any, to copy to the auction. 3. After conversion, the RFx is set to the status Completed and no further changes can be made to it.

Recommendation 

You can inform bidders that the bids they submitted on an RFx were copied to an auction during conversion by adding supplier text on the Documents tab when changing basic data at header level



during further processing of the auction. The resulting auction is created in Held status for further processing.



Bids with conditions are not copied to the auction. When converting an RFx that includes line items with attributes, the line item is copied to the auction but its attributes are not. Bids copied during conversion appear in the auction's bid history.



When an RFx with lots or outlines is converted, the resulting auction maintains the lot or outline structure from the original RFx. When this auction is launched in the Live Auction Cockpit, all line items and lots are displayed, but the outline titles are hidden.



If an auction resulting from an RFx conversion includes a bid that is less than the auction start price, that bid amount less the bid decrement becomes the next valid bid.



You can change, add, or delete auction line items or lots once bid details are copied during conversion. Changes made to pricing information, such as the auction start price, will not affect copied bids. Any change to item-related data, such as quantity, results in the removal of bids from the auction.

6.6.8.13 Frequently Asked Questions: Live Auction For Bidders Submitting Your Bid  Where do I enter and submit my bid?  What if I submit an erroneous bid price?  Is it possible to enter bids in a different currency?  The Bid Price entry field has become inoperable but there is still time remaining for the auction. What happened?  Is it possible to enter a Bid Price that is not the lowest price?  I want to place a bid, but the Bid Price field seems does not seem to be enabled for all rows. Why?  Is it possible to have someone other than myself enter bids on my behalf?  Why is the Minimum Bid Price I entered different from My Current Bid?  Can I submit one bid for all items in a lot? Can I submit bids for only some items in a lot?  The auction shows that I have submitted a bid, but the auction has not yet started. Why is this? Calculating Your Bid  How can I tell if there is a reserve price?  What is the Next Valid Bid and how is it calculated?  What is a Price Unit and how does it affect my bid price?  After I enter my minimum bid, how does the system calculate bids on my behalf?  How do I know how much to bid on each item in a lot?  What is the difference between the Total Bid Value and Total Value of My Bids displayed under the line item table? Monitoring Line Items  Can I change the line item table so that I do not have to scroll to see all of the columns?  Can I monitor the charts for more than one line item at a time?  I placed a bid on a line item, so why are the following fields Best Bid, Rank, and Next Valid Bid in the line item table empty?  I cannot view the Bid History for a line item on which I placed a bid. Why not?  Why was my Minimum Bid outbid by a bid with a difference less than the decrement amount posted?  My Minimum Bid was outbid by a bid of the same amount. How is that possible?  Why did My Current Bid drop more than the decrement?  How can I tell which line is the next line to end in a cascading line item auction?  What is the difference between Best Bid and Company Best Bid?  What is the difference between Company Rank and Rank?  How can I tell which bids are my own when looking at the Bid History? Monitoring the Auction

       

Can I chat with other participants? If I use the chat to ask the purchaser a question, can other bidders see my question? Can they see the purchaser's answer? Is the Rule Profile the same for each auction? Is it possible to see any attached files for the auction or line items within the cockpit? Why has the Time Remaining for the auction increased? How am I notified if I win the auction? Can I view the auction data, for example the Bid History and Charts, after the auction has ended? What kind of information is saved and remains accessible in the cockpit after the auction ends?

Technical Issues  Can I change the display language of the cockpit? Icon Legend  Icon Legend

Submitting Your Bid Where do I enter and submit my bid? You enter your bid in the Bid Price column of the line item table. To submit the bid, click Submit. Depending on your system settings, you may have to scroll to the right to see the Bid Price column in the table. If this is the case, you may want to reposition the column further to the left to see and use it without scrolling. For more information, see the section Monitoring Line Items. What if I submit an erroneous bid price? You should contact the purchaser immediately. The chat feature allows you to communicate directly with the purchaser when he is online. The purchaser may then choose from several options to remedy the situation. Among them is that of pausing the auction while he deletes your bid. This action also causes all related auction information to be reset, such as Rank and Best Bid. Any bids that have been deleted, yours or others, are indicated as such in the Bid History table with the

icon. If significant additional

bidding occurred after you submitted your erroneous bid price, the purchaser may also choose to end the auction to start the process over. Is it possible to enter bids in a different currency? If a purchaser allows multiple currencies for an auction, you are prompted to select a bid currency when you first launch the auction cockpit. You can change currencies prior to submitting your first bid; afterwards, all bids are made, and auction information is displayed, in the selected currency. The bid currency is listed in the header information for the auction and is the only currency recognized for your Bid Price entries. The Bid Price entry field has become inoperable but there is still time remaining for the auction. What happened? Check the auction Status in the header information. It is likely that the auction has been Paused by the purchaser. If that is the case, watch the chat area for any messages from the purchaser. A system message appears once the auction is resumed and set back to Active. In cascading line item auctions, lots and line items close to bidding one at a time based on the time parameters set by the purchaser. Check the Time Remaining column; it is likely that the end-time for this item has been reached. Is it possible to enter a Bid Price that is not the lowest price? Your Bid Price must be equal to or less than the Next Valid Bid price to be accepted in the auction. This may or may not be the overall lowest price in the auction, depending on the bid validation rules selected by the purchaser.

I want to place a bid, but the Bid Price field seems does not seem to be enabled for all rows. Why? In auctions with lots, the Bid Price field is open for input only for line items. The Bid Price field for the lot rows display aggregated bid information for all line items in the lot. Is it possible to have someone other than myself enter bids on my behalf? Yes. You can ask the purchaser to log on as your surrogate bidder and place bids on your behalf. You can tell which bids were placed by the purchaser in the Bid History table because they are displayed along with this icon: Why is the Minimum Bid Price I entered different from My Current Bid? When enabled by the purchaser, the system functions as a proxy agent and automatically places bids on your behalf. When you place a bid, the Minimum Bid Price you enter indicates the lowest bid you are willing to submit for a line item. My Current Bid is the most recent actual bid price calculated and submitted by the system on your behalf for that line item; it is always larger than or equal to your minimum bid. For information on how the system calculates bids on your behalf, see the section below. Can I submit one bid for all items in a lot? Can I submit bids for only some items in a lot? No. You have the flexibility to distribute bid price among line items in the lot, but you must enter a bid price for every item before you can submit your bid on the lot. The auction shows that I have submitted a bid, but the auction has not yet started. Why is this? You submitted a bid on an RFx that was converted to an auction. Your bid on the RFx was copied to the auction and is notated in the Bid History table with this icon:

. Your bid remains active unless the

purchaser changes auction item data, at which point your bid is then removed.

Calculating Your Bid How can I tell if there is a reserve price? The following icons are used to indicate reserve price status: 

in the Start Price column indicates that the line item includes a reserve price



in the Best Bid column indicates that the reserve price has not yet been met

 in the Best Bid column indicates that the reserve price has been met What is the Next Valid Bid and how is it calculated? The Next Valid Bid indicates to which amount your bid price must be equal to or less than in order to be considered valid. It is calculated in several ways, based on a calculation or the type of auction the purchaser defined. 

Best Bid less the Decrement



Company Best Bid less the Decrement

 My Bid less the Decrement What is a Price Unit and how does it affect my bid price? The Price Unit is a subdivision of the quantity upon which bid prices are based. This means that the Bid Price you enter is for the quantity listed under Price Unit rather than the full Quantity. So, if the Price Unit is equal to 1, you are entering your price per single unit of that item. If the Price Unit is equal to 10, your Bid Price is for 10 units of that item. After entering prices per line item, you can update the Total Bid Value displayed under the line item table prior to actually submitting your bid, by pressing Enter on your keyboard to see the sum of all line item values. After I enter my minimum bid, how does the system calculate bids on my behalf? After you submit a minimum bid, the system calculates your current bid by considering bidding parameters such as the next valid bid, bid decrement, and reserve price. The system then places bids on

your behalf, using only as much of your bid as is necessary to maintain your lead position (or to meet the reserve price) until the auction ends or your minimum bid price is reached. If another bidder has a lower minimum, you will be outbid. How do I know how much to bid on each item in a lot? Bid prices are entered at the line item level and are aggregated at the lot level. Bid Start Price and Reserve Priceare defined at the lot level, where bid validation, ranking, and monitoring occur. Before submitting a bid, you should consider the Next Valid Bid and Bid Decrement to ensure that the total bid value of the lot complies with these parameters. What is the difference between the Total Bid Value and Total Value of My Bids displayed under the line item table? Bid value is the product of multiplying the bid price by the quantity and dividing by the price unit: Bid value = (price * quantity) / price unit. The Total Bid Value is the sum of all line item values, based on the Bid Price you entered; this value is displayed if you press Enter on your keyboard prior to submitting your bid. After bidding, the value of each bid per line item is displayed in the line item table under My Bid Value. The Total Value of My Bidsdisplayed under the line item table indicates the total value of your bids on all line items.

Monitoring Line Items Can I change the line item table so that I do not have to scroll to see all of the columns? Your browser window may be open to a size that does not allow you to see the entire item table at a glance. You have several options to choose from: 

Resize your browser window



Resize the columns



Rearrange the columns

To resize a column, click on the column's right border and drag it to the desired width. To reposition a column, click on the column header and drag it to the desired location before releasing the mouse button. Layout settings you make are saved locally when the browser is closed; when you subsequently log on to the system, the saved settings are reflected in the user interface. Can I monitor the charts for more than one line item at a time? Yes! Once you have the charts displayed for a line item, double-click anywhere inside the chart area to open it in a separate window. In this way, you can open as many chart windows as you like and arrange them on your desktop to allow continuous monitoring of multiple line items. I placed a bid on a line item, so why are the following fields Best Bid, Rank, and Next Valid Bid in the line item table empty? In auctions with lots, the data associated with those fields are aggregated at the lot level. If relevant for the auction type, you can monitor Best Bid, Rank, and Next Valid Bid at the lot level. I cannot view the Bid History for a line item on which I placed a bid. Why not? In auctions with lots, bid information for line items is aggregated at the lot level. As a result, you can only monitor the Bid History at the lot level. Why was my Minimum Bid outbid by a bid with a difference less than the decrement amount posted? This behavior occurs if, prior to submitting your minimum bid, the system receives a minimum bid from one of your competitors that is lower than yours by less than the bid decrement. In this case, the system grants your competitor's minimum bid (by disregarding the bid decrement) since it was placed before yours and is lower. My Minimum Bid was outbid by a bid of the same amount. How is that possible?

If two minimum bids of the same value are submitted in an auction, the bid that was placed first takes precedence. Even if your minimum bid is equal to or less than the Next Valid Bid, it is possible that a competitor entered the same minimum bid price before you and, so, the system recognizes his bid before yours; in this case, you are outbid by a bid with the same value as your Minimum Bid. Why did My Current Bid drop more than the decrement? This behavior occurs if your Minimum Bid is less than the reserve price for an item. In this case, the system automatically places a bid on your behalf at the reserve price even though it is lower than the decrement set by the purchaser. How can I tell which line is the next line to end in a cascading line item auction? The next lot or line item to end in an auction is marked in boldface type in the line item table. Time remaining for active lots and line items is displayed in the line item table for easy monitoring. What is the difference between Best Bid and Company Best Bid? The Best Bid is the lowest bid submitted by any participating bidder in the auction. The Company Best Bid is the lowest bid submitted so far by your company. What is the difference between Company Rank and Rank? The Rank indicates your position among all bidders participating in the auction. The Company Rank indicates your company's position among all companies participating in the auction. Depending on the rule profile and other settings selected by the purchaser, you may only see one or the other. How can I tell which bids are my own when looking at the Bid History? Depending on the rule profile used for the auction, and customized settings by the purchaser, your own bids may be listed in the Bid History along with your name and/or company name. The other bidders' bids would still be listed without any identifying information however. Also, if the purchaser submitted a bid on your behalf, this surrogate bid is indicated in the Bid History with the icon:

Monitoring the Auction Can I chat with other participants? You can only chat with the purchasers participating in the auction, not with other bidders. To send the purchaser a message, simply type it in the Chat field and click Send. If there are multiple purchasers participating in the auction, they are all able to see your message. The only exception to this is if the purchaser has specifically restricted bidder chat capabilities. This means that you cannot send messages but you can still receive messages from purchasers. If I use the chat to ask the purchaser a question, can other bidders see my question? Can they see the purchaser's answer? No. Only the purchaser can see the messages you send. The purchaser's reply is only visible to you unless the purchaser chooses to reply with a broadcast message, in which case all participants can see the message. This might be the case if, for example, the purchaser believes the answer to your question is relevant to all bidders. Is the Rule Profile the same for each auction? No. There are four basic rule profiles: 

English Auction: the basic auction template in which bids are validated against the overall best bid; no restrictions on price or rank information



Rank-Only: bids are validated against each bidder's own best bid; line item price information is restricted; your rank in the auction per line item is displayed



Blind Bidding: bids are validated against each bidder's own best bid; line item price information is restricted; your rank in the auction per line item is only displayed when it is equal to 1



Company Best Bid: bids are validated against the best bid submitted so far by bidders from the same company; rank per line item is displayed for the company, not for individual bidders, so each bidder from the same company sees the same rank regardless of his or her own bid price

Each of these rule profiles can be customized by the purchaser to display more or less information. The purchaser may also define customized rule profiles. Is it possible to see any attached files for the auction or line items within the cockpit? No, you cannot display attachments within the cockpit itself. You can however, use the Auction Details link in the header area to return to the main system where you can display any attachments. Why has the Time Remaining for the auction increased? The purchaser may have manually extended the auction or defined one or more automatic extensions to occur if late bids are received. The purchaser can set automatic extensions to extend the duration of the auction when last minute bids are received. So if a bid is received during the defined inactivity period, for example 15 minutes before the scheduled end date and time, the auction is automatically extended by the extension duration defined by the purchaser. Typically, the extension duration is longer than the inactivity period. The purchaser also defines how often the automatic extension cycle runs. You can view these automatic extension parameters by moving your cursor over the Extension Details text in the header area (unless the purchaser has specifically restricted that information). How am I notified if I win the auction? The purchaser configures the process for winner notification in the purchaser's system. One example is that you receive an e-mail with all the relevant information and instructions. Can I view the auction data, for example the Bid History and Charts, after the auction has ended? Yes. The cockpit remains accessible after the auction ends until the auction is completed or archived. What kind of information is saved and remains accessible in the cockpit after the auction ends? Everything except the system messages

Technical Issues Can I change the display language of the cockpit? The display language of the cockpit is dependent upon your logon language. If you wish to view the cockpit in a different language, select that language at logon.

Icon Legend Icon Legend Reserve Price Exists Reserve Price Met Reserve Price not Yet Met Bid Submitted by Surrogate Bidder Surrogate Bid Deleted Bid Deleted Extension Details Bid Converted from RFx Bid Converted from RFx Was Deleted

6.6.9 SAP Bidding Engine SAP Bidding Engine is part of SAP Supplier Relationship Management (SAP SRM). Purchasers can use SAP Bidding Engine to create and process an RFx and live auction for products and services. Bidders can use SAP Bidding Engine to participate in auctions and respond to an RFx. You can make SAP Bidding Engine available for the following roles: 

Purchaser



Operational Purchaser



Strategic Purchaser



Purchasing Assistant



Bidder

Caution Role assignment is not delivered. To adjust the roles, see the SAP Solution Manager under Configuration SAP SRM 7.0 Basic Settings for Strategic Sourcing General Settings Organizational Configuration

Adjust Roles .

Integration SAP Bidding Engine is integrated with the purchasing sourcing application and the contract processing function in SAP SRM. It can also be integrated with SAP NetWeaver Portal, Supplier Self-Services, SAP Business Information Warehouse, SAP Product Lifecycle Management, product catalogs, contracts, and external requirements.

6.6.9.1 Integration of SAP Bidding Engine and Sourcing Using SAP Bidding Engine, you can create an RFx directly from Sourcing. This is especially useful if you have open requirements and need to find a source of supply. SAP Bidding Engine supports the Extended Classic Scenario for all RFx documents that are created from Sourcing. For more information, see Technical Scenarios.

Features 

You can create an RFx for any item that is in the Sourcing work area. When you do this, the system automatically copies relevant data from the item in Sourcing to the item in the RFx. Any additional texts and attachments are also transferred to the RFx.

Note You can only add items to the RFx that have been automatically transferred from Sourcing. Outlines are not transferred to the purchase order or contract – any attachments and text at outline level are transferred to the items on that level. The items continue to appear in Sourcing, however, you can no longer select them. There is a link next to the line item that takes you directly to the relevant RFx.

Before you can publish an RFx, you must add information, such as a submission deadline and selected suppliers. Once you have determined a winner for the RFx, you can complete the process by creating a purchase order or a contract. When you do this, data specific to the contract or purchase order that is not already in the RFx is transferred automatically from the item in Sourcing, for example, account assignment data. The system recognizes when it is not possible to create just one purchase order for the items in the RFx. In this case, the system creates several purchase orders automatically. If, for example, the Extended Classic Scenario is set for the items, and the system must create the purchase order in different back-end systems, the system does this. 

You can create contracts in your back-end system from the RFx.



The system can automatically carry out sourcing using RFxs. If you do this, the system automatically creates RFx documents in the background for requirements (including external ones, such as purchase requisitions from Materials Management (MM)) for which no sources of supply have yet been assigned. For more information, see Customizing for SAP Supplier Relationship Managementunder

SRM Server

Sourcing

Define Sourcing for Product Categories.

6.6.9.2 Bidding As a bidder, you can use SAP Bidding Engine to create bids for auctions and RFx responses for RFxs. The RFx can be: 

Public These are made available on the Web and published on portals, for example. You can access the RFx through a hyperlink and enter the RFx responses in the purchaser's SAP Bidding Engine.



Restricted These are made accessible only to known bidders via e-mail. You can access the RFx through a hyperlink provided in the e-mail.

Only auctions are restricted. You can access SAP Bidding Engine through the hyperlink provided in the email, and from there you can go to the live auction.

Prerequisites 

You already have a user master record to submit a bid or RFx response. You do not need a user to receive information about a bid, since registered suppliers receive this information automatically by email.



You have fulfilled the requirements for installing and using the Live Auction Cockpit. For more information, see the SAP SRM Server installation documentation on SAP Service Marketplace athttp://service.sap.com/srm-inst.



To receive e-mails regarding any changes made to a public RFx, you have to be registered for the



RFx. However, you can submit an RFx response without registering. To create RFx modification items, the purchaser has enabled the option RFx respondent can change RFx Responses on the RFx.

Activities In the SAP Bidding Engine you can search for a new RFx or auction, create a bid or RFx response, or search for bids or RFx responses that you have already created. You can bid on items in any of the currencies selected by the purchaser for bidding.

If the RFx or auction contains lots, you must bid on all items in the lot before submitting the bid. For more information, see Lotting. Once the auction has ended, you can view your last bid in SAP Bidding Engine. You can display the history of the auction in the Live Auction Cockpit. Bidding in Response to Auctions You can access the auction through the link provided in the e-mail or by choosing Launch Auction in SAP Bidding Engine. This brings you directly to the Live Auction Cockpit where you can follow the bidding process. For more information, see: 

Live Auction Cockpit



Multiple Bid Currency Auctions

Bidding in Response to RFx You can download the RFx, display documents for the RFx, and save them to your PC. Depending on the information required by the RFx, you can enter the following: 

Details on price and conditions, such as scale prices



Changes to quantity



Comments To provide further information, you can also upload documents from your PC at header and item levels.



Information on any questions For more information, see Create Questions



Further items, if this option has been granted in the RFx



Service providers, in the case of service items, if these have been entered in your SAP Supplier Relationship Management (SAP SRM) or Supplier Self-Services systems

If the purchaser has created a cFolder you can view the information by following the link under Collaboration. For more information, see Integration with SAP PLM cFolders. Once you have entered the correct information in your RFx response you can: 

Save the RFx response for further processing The system saves the RFx response without checking it.



Check that you have completed the RFx response



Delete saved RFx responses



Change the RFx response You can only change the RFx response if you have not yet submitted it. However, if the purchaser changes the RFx and returns your original RFx response, you can revise it.

Caution If the purchaser changes the RFx before the opening date is reached, the purchaser cannot send back the RFx responses. 

Submit the RFx response Submitted RFx responses are binding. The purchaser who created the RFx sees that RFx responses have been received and can display them once the opening date has passed.



Create a print preview of the RFx as a PDF

Surrogate Bidding

The purchaser can enter a bid or RFx response on behalf of a bidder. For example, if you as bidder are not able to access the system, you can contact the purchaser to enter a bid or RFx response as your substitute.

6.6.9.2 .1 Offline Bidding You can use an offline bidding form to allow your suppliers to respond to an RFx without having to log on to the SAP Supplier Relationship Management (SAP SRM) application. When a purchaser publishes an RFx, an SAP Interactive Form is sent as an e-mail attachment to all suppliers who are authorized for offline bidding. This document supports the following:  Data entry for fields such as Quantity, Price, and Price Unit 

Purchaser attachments (attached to the supplier notification e-mail)



Purchaser and supplier notes



Possibility to ask and respond to questions

If the suppliers decide to bid offline, they complete and submit the form using e-mail. The purchaser's SAP SRM system receives the e-mail, reads the attachment, and creates the RFx response. The offline bidding form is a simplified alternative to, but not a general replacement for, the existing method of creating RFx responses. If the RFx and the supplier are enabled for offline bidding, suppliers can choose whether to submit an RFx response using the SAP SRM application or the offline bidding form.

Restrictions The following is not supported in offline bidding:  Intent to bid (Participate, Do not Participate, and Tentative) 

Excel export/import



Response modification (expressive bidding)



Add a new line item or subline



Catalog integration



cFolder integration



Send e-mails or call partners



Check errors



Supplier-added attachments



Complex prices (conditions)

Prerequisites To use this function, you must activate the business function SRM, Strategic Sourcing Innovations(SRM_SOURCING_1). 

You have activated the Customizing switch SRM_701_SUCO_OFFLINE_BIDDING.



For further prerequisites, see Enabling Offline Bidding.

Activities 

The purchaser enables offline bidding when they publish an RFx. For more information, see Enabling Offline Bidding.



The supplier receives the SAP Interactive Form as an e-mail attachment, enters the relevant data, and sends the form back to the purchaser.



The purchaser’s system reads the data from the SAP Interactive Form, and creates an RFx response.

Note If the supplier enters incorrect data, such as a minus quantity or a minus price, the purchaser is informed by an error message along with the form.

6.6.9.2 .2 Enabling Offline Bidding You use this procedure to allow suppliers to respond to an RFx using offline bidding.

Prerequisites To use this function, you must activate the business function SRM, Strategic Sourcing Innovations(SRM_SOURCING_1). 

You have been assigned the Strategic Purchaser role in SAP Supplier Relationship Management (SAP SRM).



You have defined the e-mail ID to be used in the offline bidding process in Customizing for SAP SRM under SRM Server RFx Offline Bidding Proxy Settings Define Offline User .



You have defined the security settings and proxy settings for your third-party encryption tool in Customizing for SAP SRM under SRM Server RFx Offline Bidding Proxy Settings Specify Host and Port Information



andSelect Encryption and Digital Signature Checkboxes.

If you want to configure a customer-specific SAP Interactive Form for the offline bidding process, you have done so in Customizing for SAP SRM under SRM Server Cross-Application Basic Settings Set Define Actions for Document Output .

Output Actions and Output Format

Procedure 1. Log on to SAP SRM, and choose

Strategic Purchasing

Business Partner

Supplier

.

2. Choose the Bidder Data tab, and select the Allow Offline Bidding checkbox. 3. Choose

Strategic Purchasing

Strategic Sourcing .

4. Search for your RFx, and choose Edit. 5. Select the Allow Multiple Bids per Company and Allow Offline Bidding checkboxes. 6. Publish your RFx.

Result An e-mail is sent to suppliers with an SAP Interactive Form as an attachment.

6.6.9.3 Bidder Notification An e-mail created with Smart Form BBP_BIDINV_BID notifies bidders of RFxs, auctions, and bids in the form of an e-mail.

Features You can change the Smart Form delivered by SAP to design the information in your notification exactly the way you want, without having to modify code. For more information, see the Smart Form documentation in SAP Help Portal at http://help.sap.com.

Note If your system runs in multiple languages, you must translate any text changes you make.

Activities In Customizing for SAP Supplier Relationship Management, choose Document Output Change Smart Forms for Document Output

SRM Server Business Add-Ins (BAdIs)

.

Enter the name of the new Smart Form you created in Customizing in the Business Add-In (BAdI) BBP_CHANGE_SF_BID.

Note The import parameters for this BAdI are: 

Business transaction category (BUS2200 for RFx or BUS2202 for bid)



Individual object status



Document's GUID

The export parameter is the name of the Smart Form being used.

6.6.9.4 Customer Fields in SAP Bidding Engine You can use customer fields in SAP Bidding Engine to enhance standard structures, thereby creating your own (customer-specific) solution to display, change, and forward the contents of non-standardized fields. This gives you the flexibility to implement a corporate look and feel across all RFx documents that are produced within your company. While attributes within SAP Bidding Engine are only relevant for the specific RFx in which they are selected, customer fields are displayed in every RFx and cannot be selected or deselected for an individual RFx.

Prerequisites The system administrator has created the following structures in the ABAP Dictionary and defined the required fields: 

CI_BBP_HDR_BID for the header data of the bid invitation



CI_BBP_ITEM_BID for the item data of the bid invitation



CI_BBP_HDR_QUOT for the header data of the bid



CI_BBP_ITEM_QUOT for the item data of the bid

The relevant fields are only displayed in RFx documents and bids once these steps have been performed by the system administrator. To have an identical set of customer fields in the RFx and in the bid, the content set-up must be the same in the relevant structures. In the default setting, the system fills the customer fields in the bid from the RFx and the fields are display-only. You do not have to change the Dynpro template to display the fields. For more information, see 458591.

6.6.9.5 Bid or RFx Response Processing As a purchaser, you can check and process the bids or RFx responses you have received in response to your RFx or auction.

Integration When a bid or RFx response has the status Approved and Accepted, it can be used to create a contract or purchase order. For more information, see Contract Creation and Purchase Order Creation.

Features You can: 

Conduct a search for your RFx or auction to see how many bids or RFx responses have been



received and from which bidders. View bid or RFX response details, grouped according to Header Data, Item Data, and Approval Preview. In live auctions, after the auction has ended, the Live Auction Cockpit transfers the most recent bid to the SAP Bidding Engine, where you can view the bid details.



Display the status of the approval process in the form of a table or a graphic. Depending on the workflow settings, the purchaser's manager may need to approve the bid or RFx response before it can be successfully accepted.



Download RFx documents with all bids and compare them. For more information, see Comparison of Bids or RFx Responses.

 

Create a print preview of the RFx as a PDF. Accept and reject o

Individual items If you do not want to accept certain items of the bid or RFx response, you can reject them accordingly. The bidder then receives acceptance for all other items.

o

Entire bid Bidders are automatically informed via e-mail, generated using Smart Form BBP_BIDINV_BID. For more information, see Bidder Notification.

o

Several bids, for example, if you want to accept items from different bids.



Create a new RFx as a follow-on document. For more information, see RFx



Enable bidders to use RFx response modification (adding substitute or alternative items) on RFx documents based on a preceding SAP ERP purchase requisition, or shopping cart in SAP Supplier Relationship Management (SAP SRM).



Use outlines to organize complex service requirements. To use this feature, you must have an RFx document created from a template that allows hierarchical structures.

In addition, features are also available that provide your purchasers with an improved overview of the best bid or RFx response, and also allow your suppliers greater flexibility when submitting their RFx response.

Note If you want to use the features listed below, the following prerequisite applies:

You have activated the business function SRM, Strategic Sourcing Innovations (SRM_SOURCING_1). 

You can specify if you want your suppliers to modify a bid or RFx response at line-item level.



Additional functions allow you to better compare the bids or RFx responses submitted. For example, you can directly display line items added by the bidder. For more information, see Comparison of Bids or RFx Responses.

6.6.9.5.1 Comparison of Bids or RFx Responses In the SAP Bidding Engine, enhanced features of the function for comparing bids or RFx responses enable you to better compare the bids or RFx responses submitted by bidders in response to your auction or RFx. These features provide you with a more comprehensive overview of which bid or RFx response best suits your requirements and also allows you greater flexibility when accepting their bid or RFx response.

Prerequisites You have activated the business function SRM, Strategic Sourcing Innovations (SRM_SOURCING_1). 

You have activated the business function SRM, Strategic Sourcing Innovations 2 (SRM_SOURCING_2).



You have been assigned the Strategic Purchaser role in SAP Supplier Relationship Management (SAP



SRM). You have activated the Customizing switch Adaptable RFx Response Handling(SRM_701_RFX_RESP_FLEXIBILITY) in Customizing for SAP Supplier Relationship Management under



SRM Server

RFx Extended RFx Process

RFx Response Activate/Deactivate

Adaptable RFx Response Handling . You have activated the Customizing switch RFx Response Simulation (SRM_702_BID_SIMULATION) in Customizing for SAP Supplier Relationship Management under

SRM Server RFx

RFx Response

Comparison Activate/Deactivate RFx Response Simulation .

Activities As a purchaser, you can perform the following activities when reviewing and comparing bids or RFx responses. 

Open a bid or RFx response directly in change mode



Include line items added by bidders You can directly display line items added by the bidder. You can also specify if you want your suppliers to modify a bid or RFx response at line-item level.



Display payment terms and Incoterms



Display tooltips for icons



Adjust the weights, which recalculates the scores automatically

Note When you compare bids or RFx responses, it is possible to adjust the weighting factors you have entered in the corresponding RFx. If you adjust the weighting factors, the system recalculates the weighted scores automatically. To adjust the weighting factors, proceed as follows: 1. Select the RFx responses for comparison and choose the Response Comparison tab. 2. ChooseSimulate Weight.

3. In the Weight Simulation Window, change the values of the weight percentages assigned to the questions as required, and choose Simulate. The system now recalculates the weighted scores. 4. To reset the weight percentages back to their original values, choose Reset Weight Simulation. 

Download the response comparison in an easy-to-read format You can download the comparison information to a Microsoft Excel file and then save this file locally on your computer.



Create a ranked list of bidders, on the new results screen, presented in descending order. You can also create a ranked list of bidders for a particular item.



Download the RFx response comparison results as a PDF for traceability.



Customize the RFx response comparison screen by adding or removing user interface (UI) fields to suit your requirements.



Avoid horizontal scrolling due to the reduced number of table columns on the RFx response comparison screen.

6.6.9.5.2 Contract Creation As a purchaser, you can generate contracts from RFx responses. This RFx itself can be created manually or from a purchase requisition in SAP ERP, or from the shopping cart in SAP Supplier Relationship Management (SAP SRM). The purchase order can also contain RFx response modification items.

Prerequisites The RFx response has the status Accepted and, if required, Approved. In the RFx, the Follow-On Document field must contain the entry Contract, or Purchase Order or Contract.

Features You can create a contract for the supplier of an accepted RFx response from the bid view. Data from the RFx response and the RFx is transferred automatically to the contract, for example: 

Business partner data, for example supplier, goods recipient, and location



Item data, for example product category, quantity, price, and price unit



Purchasing organization of the purchaser



RFx texts (supplier texts), however not internal notes and bid texts



RFx currency



Bid header data

If items are user-defined, you may have to add data, for example product or supplier product number. If the RFx was not created from Sourcing, you may have to add the purchasing group. In the case of an RFx with outline, the supplier text and documents are inherited to lower items. You can create an RFx from a contract. Data from the contract is copied to the RFx. It is created with the statusSaved.

6.6.9.5.3 Purchase Order Creation This function is available to purchasers and generates purchase orders from RFx responses. This RFx itself can be created manually, from a purchase requisition in SAP ERP, or in the shopping cart in SAP Supplier Relationship Management (SAP SRM).

The purchase order can also contain RFx response modification items. For more information, see Purchase Orders.

Prerequisites 

The RFx response has the status Approved and Accepted.



To transfer the purchase order to the contract, the bidder is assigned the role of Supplier



In the RFx, the Follow-On Document field must contain the entry Purchase Order or Contract.

Activities 

When you create an RFx manually, purchase orders are local only (product category is not relevant). Outline levels can be displayed in a local purchase order. The system transfers RFx texts, RFx response texts, RFx response modification items, and documents to the purchase order (not internal notes, however).



With direct material purchase orders, the system creates a copy (that cannot be changed) in the backend system. Regardless of whether it is a direct material, this needs to be stated in the item details in the RFx. You must specify the goods recipient and purchasing group.



When an RFx is created from Sourcing, the system creates purchase orders in the back-end system (direct and extended scenarios). Outline levels are not transferred. Texts and documents for outline levels are inherited to lower items. The system displays ordering party, goods recipient, and issuing point in the RFx and in the RFx response only if these were the same in the preceding documents. If not, they are read from Sourcing to create the purchase order in the background.



When a purchase order is created, the system checks whether the delivery time is realistic based on the date entered by the purchaser in the original RFx and the delivery time as stated by the bidder in the RFx response.

6.6.9.5.4 Two-Envelope RFx Response Processing You use this process to handle two-envelope RFx responses. Two-envelope RFx responses are typically used to collect and evaluate technical RFx response information separately from price RFx response information. This allows the purchasing organization to evaluate RFx responses based on factors such as technical capabilities before viewing the price information. RFx respondents (= bidders) submit a technical RFx response and a price RFx response. You can influence the way in which technical RFx responses are stored, accessed, opened, and evaluated. When the purchaser creates an RFx with two-envelope RFx response, the system automatically creates a collaboration room in SAP Product Lifecycle Management (SAP PLM) cFolders for the RFx. When an RFx respondent creates an RFx response, the system creates a folder in this collaboration room to which the RFx respondent can upload their technical RFx response. RFx respondents can edit or upload new versions of their RFx response until the RFx closing date. For more information about cFolders for technical RFx responses, seecFolders for Technical RFx Responses.

Prerequisites You have activated the business function SRM, Strategic Sourcing Innovations (SRM_SOURCING_1).

You do not have to activate the business function SAP SRM Procurement for Public Sector Functions(/SAPPSSRM/SRM_PPS). If you have previously activated this business function, it remains active. You have done the following: 

You have activated the two-envelope RFx response function in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process Two-Envelope RFx Response) Activate/Deactivate Two-Envelope RFx Response .



You have activated two-envelope RFx response for the required transaction and publication type in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process



You have configured optional two-envelope RFx response settings in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process Two-Envelope RFx Response



Tendering Options Define Tendering Options .

Define Basic Data for Two-Envelope RFx Response

.

You have created folders for storing technical RFx responses in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process Two-Envelope RFx Response

Define Basic Data for Technical RFx Response Folders .

Process Purchaser creates RFx with two-envelope RFx response 1. The purchaser creates an RFx for a transaction type for which the two-envelope RFx response function has been activated. 2. The purchaser enters a submission deadline for RFx responses and specifies a technical RFx response opening date and a price RFx response opening date. 3. On creation of the RFx, the system creates a cFolder collaboration room containing predefined folders. 4. The purchaser navigates to cFolders and uploads documents to the folders. 5. In cFolders, the purchaser assigns read and write authorizations to users who require access to the folders. 6. The purchaser publishes the RFx.

RFx respondent submits two-envelope RFx response 1. In SAP Bidding Engine, the RFx respondent views the RFx and creates an RFx response. 2. The system creates a supplier-specific folder under the technical RFx responses folder in cFolders. 3. The RFx respondent enters price-related information in the RFx response. 4. The RFx respondent navigates to the technical RFx response folder. The system opens the supplier's technical RFx response folder in cFolders. 5. The RFx respondent uploads the technical RFx response. 6. The RFx respondent submits both parts of the RFx response.

Two-Envelope RFx response opening and evaluation

Note For more information about using multi-party verification at two-envelope RFx response opening, seeSimultaneous Logon at RFx Response Opening. 1. The purchaser initiates technical RFx response opening.

2. The technical evaluation panel evaluates the technical RFx responses. 3. The purchaser navigates to the technical RFx response overview and accepts or rejects each technical RFx response according to the decision of the evaluation panel. Depending on the settings made in Customizing, an e-mail notification is sent to all RFx respondents notifying them of the decision of the evaluation panel. And, if configured, the price RFx responses of respondents whose technical RFx responses were rejected by the evaluation panel are automatically rejected. 4. The purchaser initiates price RFx response opening. 5. The price evaluation panel evaluates the price RFx responses of the RFx respondents who were shortlisted by the technical evaluation panel. 6. An award is made.

6.6.9.5.5 cFolders for Technical RFx Responses When you create an RFx with two-envelope RFx response, the system creates a collaboration room in SAP Product Lifecycle Management (SAP PLM) cFolders containing the following default folders: 

External Contains documents that are to be shared with the RFx respondents (= bidders).



Internal Contains documents that are only to be viewed by users from the purchasing organization.



Evaluators Contains evaluator comments.



Collaboration Used by RFx respondents and evaluators to exchange information, for example, the RFx respondents can ask questions that are answered by the evaluators.



Technical_Bids When the RFx respondent creates an RFx response, a folder is created under Technical_Bids in which the RFx respondent can store technical RFx response documents.

Note You can rename these folders or create your own folders in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process Two-Envelope RFx Response Define Basic Data for Technical RFx Response Folders

.

You use these folders to store all documents relating to the RFx. Before an RFx is published, the purchaser can upload documents to the folders and assign users read and write authorizations for the folders. For more information about SAP Supplier Relationship Management (SAP SRM) integration with cFolders, see Integration with SAP PLM cFolders. The following default folder authorizations are provided: Purchaser Authorizations — Before the RFx is published Authorization

Internal

External

Collaboration

Evaluators

Technical_Bids

Read

Yes

Yes

Yes

No

No

Authorization

Internal

External

Collaboration

Evaluators

Technical_Bids

Write

Yes

Yes

Yes

No

No

Create Folders

Yes

Yes

Yes

No

No

RFx Respondent Authorizations Authorization

Internal

External

Collaboration

Evaluators

Technical_Bids

Read

No

Yes

Yes

No

Yes

Write

No

No

Yes

No

Yes

Create Folders

No

No

Yes

No

Yes

Purchaser Authorizations — After RFx Response Opening Authorization

Internal

External

Collaboration

Evaluators

Technical_Bids

Read

Yes

Yes

Yes

Yes

Yes

Write

Yes

Yes

Yes

No

No

Create Folders

Yes

Yes

Yes

No

No

For more information about creating additional folder authorizations, see the Business Add-In (BAdI) documentation in Customizing for SAP Supplier Relationship Management under SRM Server Business Add-ins RFx

Extended RFx Process

Two-Envelope RFx Response

Enhance Folder Authorization

.

6.6.9.5.6 Simultaneous Logon at RFx Response Opening You can use this process to allow multiple users to approve the RFx response opening process by simultaneously logging on to the system within a given time period. This allows you to introduce multiparty verification into the RFx response opening process. By default, simultaneous logon is only available for RFxs with two-envelope RFx responses. Before starting the simultaneous logon process, the purchaser must assign participants the necessary permissions for their role in the process. For more information about user roles, see User Roles in the Simultaneous Logon Process. The purchaser then initiates the simultaneous logon process. After initiation, the approvers, in this case, the RFx response openers, must approve the opening process by logging on to the Simultaneous Logon Application. Only after all RFx response openers have verified the process by logging on, is it possible to view and evaluate the RFx responses.

E-Mail Notifications You can adapt the e-mail notifications sent to users during different stages of the simultaneous logon process. For more information about adapting the content of these notification e-mails, see the Business Add-In (BAdI) documentation iin Customizing for SAP Supplier Relationship Management under SRM Server Business Add-Ins RFx Extended RFx Process Simultaneous Logon Enhance Simultaneous Logon .

Prerequisites You have activated the business function SRM, Strategic Sourcing Innovations (SRM_SOURCING_1). You do not have to activate the business function SAP SRM Procurement for Public Sector Functions(/SAPPSSRM/SRM_PPS). If you have previously activated this business function, it remains active. You have done the following: 

You have activated simultaneous logon in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process Simultaneous Logon Activate/Deactivate Simultaneous Logon at RFx Response Opening .



You have activated the simultaneous logon function for the required transaction and publication type in Customizing for SAP Supplier Relationship Management under SRM Server RFx Extended RFx Process



Tendering Options Define Tendering Options .

You have configured the duration of the process and specified when you require an e-mail notification to be sent to participants in Customizing for SAP Supplier Relationship Management under SRM Server RFx

Extended RFx Process

Simultaneous Logon Define Basic Data for Simultaneous Logon .

Process 1. The purchaser creates an RFx using a transaction type for which the two-envelope RFx response has been activated, and in the permissions overview for the RFx, assigns authorizations to all participants in the simultaneous logon process. 2. The purchaser publishes the RFx and receives RFx responses. 3. The purchaser initiates the technical RFx response opening process by choosing the corresponding button on the RFx document. 4. The system sends an e-mail notification to all users with the role technical opener informing them that they need to approve the process. 5. The technical RFx response opener navigates to the Simultaneous Logon Application and approves the process by entering his/her system password. This step is repeated by all users who have been assigned the role technical opener by the purchaser. 6. The system updates the process overview with the users’ approval status. 7. When all RFx response openers have approved the opening process, the system gives the process the status 'successful' and makes the RFx response available for the evaluation process.

Note If the process has not been approved by all RFx response openers by the end of the approval interval, the purchaser can either extend the process or the process fails and all users taking part in the process are informed of the failed opening. In this case, the process must be initiated again by the purchaser. 8. The technical RFx responses are evaluated by the evaluation panel and steps 3 to 7 are repeated for the price RFx responses.

6.6.9.5.7 Users Roles in the Simultaneous Logon Process Before starting the simultaneous logon process, the purchaser must assign the participants a particular role in the process. The purchaser can assign permissions before and after the publication of an RFx. The permissions are only valid for the selected RFx. The purchaser can assign users the following roles for an RFx: 

Technical Opener The user must approve the opening of technical RFx responses.



Price Opener The user must approve the opening of price RFx responses.



Technical Evaluator The user is an evaluator of technical RFx responses.



Bid Floor Administrator By default, this is the purchaser. The bid floor administrator can extend the duration of the simultaneous logon process.

After the purchaser has created or changed the assignment of permissions, the system sends the participants an e-mail notification.

6.7 Confirmations You can use this function in SAP Supplier Relationship Management (SAP SRM) to confirm the delivery of goods, and enter services rendered and hours worked.

Integration This function is used in the following business scenarios:  Self Service Procurement 

Service Procurement



Plan-Driven Procurement

In SAP SRM, the goods receipt and the service entry sheet are represented by a single confirmation document. Confirmations can refer either to purchase orders created in SAP SRM, or to purchase orders created outside SAP SRM in the back-end system.

Prerequisites Roles You must have one of the following roles assigned to you before you can perform any of the confirmation procedures: Role Name

Portal Role

SAP SRM Server Role

Employee

com.sap.pct.srm.ro_employeeselfservice

/SAPSRM/EMPLOYEE

Operational Purchaser

com.sap.pct.srm.ro_operationalpurchaser

/SAPSRM/OP_PURCHASER

Supplier

com.sap.pct.srm.ro_supplier

/SAPSRM/SUPPLIER

Goods Recipient

com.sap.pct.srm.ro_goodsrecipient

/SAPSRM/RECIPIENT

Depending on the roles assigned to you in SAP SRM, different options are available for confirming goods and services, as well as for entering time data for services rendered. If you have been assigned the Employee or Operational Purchaser role, you can enter confirmations for goods receipts and services performed. You can do so for items in your own shopping cart, or for which you are the requester or the goods recipient. If you have been assigned the Supplier role, you can do the following: 

Confirm that goods have been delivered or services have been rendered



Enter times for services rendered

For more information, see Confirmation Processing.

System Requirements To create a confirmation from a back-end service purchase order item, you must have installed SAP R/3 4.0 or a later release.

Confirmations Relating to Purchase Orders for Materials Created in a Back-End System To transfer confirmation documents to the back-end system using the ALE interface, you must have made the ALE settings in Customizing for SAP Supplier Relationship Management under SRM Server Technical Basic Settings

ALE Settings (Logical System)

.

Confirmations Relating to Purchase Orders for Services Created in a Back-End System SAP SRM assigns the confirmation a number from the number range set in Customizing for SAP Supplier Relationship Management under

SRM Server

Cross Application Basic Settings

Number Ranges

SRM

Server Number Ranges

. When you transfer the confirmation to the back-end system and create it there,

the system copies the number from SAP SRM to the communication number field on the service entry sheet. The number range in SAP SRM for the confirmation must not overlap with the number in the communication number field of the service entry sheet that was transferred to the back-end system by data exchange. If the number ranges do overlap, the service entry sheet will not be created.

Features The functions available for confirmations include the following: Function

Description

Revert

Restores items that have been deleted from the purchase order.

Details

Opens the Item Details Basic Data 

Item Data



Account Assignment You can see who bears the costs and, if necessary, you can distribute the cost among several cost centers. In the case of confirmations referring to back-end purchase orders, you cannot change the account assignment unless you are creating an unplanned item for the limit item of a service purchase order.



Notes and Attachments You can attach documents providing additional information for the approver. You can also enter a text that is sent to the supplier, or an internal note to send the approver or purchaser a message.

Final

Indicates whether the confirmation represents the final delivery of the item. SAP SRM transfers this

Delivery

information to the purchase order item and, in the case of unplanned items, to the total limit for the purchase order.

Save

Temporarily saves an incomplete confirmation. It can be reprocessed at any point.

Confirm

Posts the confirmation after you have entered all confirmation information. The approval workflow starts in the background.

Activities You use the goods, services, and time confirmation to confirm, for example, the receipt of goods or services. The outcome of the workflow depends on your technical scenario. A local purchase order is saved in SAP SRM as a confirmation. A purchase order entered outside SAP SRM is copied to the backend system as either a goods receipt or a service entry sheet.

6.7.1 Service Time Entry This function allows a service agent to enter times for services rendered. If the service agent can access a supplier system, they can enter their time data and send it to the purchaser. For services in an SAP ERP purchase order, the supplier self-services component (previously SUS) can also be used to create a service entry sheet directly in the SAP ERP system. For more information, see Confirmation Processing.

Note

If the service agent does not have access to a supplier system, they can send their time recording sheets to the purchaser using e-mail, fax, or regular mail. Purchasing assistants then enter the time recording sheets.

Prerequisites You have been assigned one of the following roles:  Employee (portal role com.sap.pct.srm.ro_employeeselfservice, SAP SRM Server role/SAPSRM/EMPLOYEE) 

Goods Recipient (portal role com.sap.pct.srm.ro_goodsrecipient, SAP SRM Server role/SAPSRM/RECIPIENT)

Defining Default Settings for Time Recording You can enter default values for time recording in Customizing for SAP Supplier Relationship Management under SRM Server Confirmation and Invoice Verification Define Defaults

for

Time Recording Defining Default Settings for Limit Items If you want to create limit items in SAP SRM for unplanned costs such as overtime hours or expenses, you can also define default settings in Customizing. For more information, see Customizing for SAP Supplier Relationship Management under SRM Server Confirmation and Invoice Verification

Define Default Setting for Limit Items

Procedure To enter times for services rendered, proceed as follows: 1. Choose Create Confirmation. 2. Enter a purchase order number in the Search Purchase Order field. 3. Choose the Item Number to display the service item details. 4. Choose the Service Timesheet. 5. Enter a range of dates in the From and To field for which you want to enter service times. 6. Choose Generate Timesheet. 7. Enter a start time and end time for each day. The time format is HH:MM:SS based on the 24 hour clock. 8. Choose Update and then one of the following: 

Save to save the time entries. You can edit the time entry list at a later time.



Confirm to confirm the time entries. The service time entries are sent for confirmation.

6.7.2 Goods Recipient Notification At the unloading point, you can use the Notify Goods Recipient function to identify and notify the recipient that a shipment has arrived.

Prerequisites You have been assigned the Goods Recipient role.

Activities You can search for purchase orders with outstanding quantities to confirm. To e-mail the goods recipient that the goods have arrived, choose Notify Recipient.

The Notify Recipient window includes the requester and e-mail details. If the purchase order comes from a plant, the requester is notified instead.

Note The default text of the e-mail is stored in the general GOODS RECEIVED text. You can individually change this text for each e-mail. However, the system administrator can change the default text by choosing Tools ABAP Workbench Utilities Documentation .

6.7.3 Return Deliveries Once a confirmation has been approved, you can return any part of the purchase order to the supplier if not satisfied with the goods.

Prerequisites You have been assigned one of the following roles:  Operational Purchaser (portal role com.sap.pct.srm.ro_operationalpurchaser, SAP SRM Server role/SAPSRM/OP_PURCHASER) 

Goods Recipient (portal role com.sap.pct.srm.ro_goodsrecipient, SAP SRM Server role/SAPSRM/RECIPIENT)

Activities To return an item from a purchase order, you must create a Return Delivery document, clearly stating the reason for return. Once you return some or all of the items in a purchase order, the Return Delivery document is posted in the system. The quantity that is being returned is once again visible in the purchase order and is available for confirmation. This is because the system now expects a new delivery for this quantity from the supplier.

Note Once an invoice is created, it is no longer possible to use the Return Delivery function.

6.8 Business Workflow SAP Supplier Relationship Management (SAP SRM) provides two frameworks for approval workflows, application-controlled and process-controlled. The application-controlled workflow framework was used in SAP SRM 5.0 and earlier, and the process-controlled workflow framework was introduced in SAP SRM 2007 (SAP SRM 6.0).

Note The application-controlled workflow framework is supported for customers of SAP SRM 5.0 or earlier to maintain their older workflows. New SAP SRM customers must use the process-controlled workflow framework. It is not supported that new customers use application-controlled workflows!

Prerequisites Process-controlled workflows are used by default in new SAP SRM systems. You can switch the workflow framework setting to application-controlled workflows in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings Business Workflow Select Workflow Framework

.

Features Application-Controlled Workflows These are approval workflows based on SAP Business Workflow, in which the application is in control over the SAP Business Workflow templates. Multiple workflow templates can be used, using defined start conditions.

Process-Controlled Workflows These are approval workflows based on SAP Business Workflow, in which the modeled or configured process, and not the application itself, controls the process flow. A unified workflow template is used, and a process is evaluated by way of a process schema containing a set of distinct process levels. The Business Rule Framework can be applied to control further the process flow.

6.8.1 Process-Controlled Workflows In SAP Supplier Relationship Management (SAP SRM), you use process-controlled workflows to model and carry out approval processes for purchasing documents, such as shopping carts. Workflows provide easy and flexible implementation of approval processes. Approval processes typically run on several process levels. Throughout these process levels, a document can require different kinds of checks and can involve agents with different roles, for example: 

A purchaser must complete a document lacking important information.



A specialist must check and approve technical or other product-related information in the document.



A manager must give financial approval, for example, if a shopping cart exceeds an employee's individual spending limit.

Responsibility for approving the items of a document can be distributed among several agents. However, at each process level, all items of the document must be decided upon. Therefore, the next process level cannot start until all agents have processed their respective items.

Users can only make decisions in an approval process if they have received a workflow work item in their Universal Worklist (UWL). If there is more than one responsible agent for the items of a document on one process level, each agent receives a workflow work item. As soon as one of them accesses his or her work item, the document is locked for other users. Process-controlled workflows are available for the following business objects: 

Shopping cart



Purchase order



Contract



RFx



Quote



Invoice



Confirmation

Note Purchase order responses do not use the process-controlled workflow framework. Instead, the process logic is hard-coded. For more information, see Approval Workflow for Purchase Order Responses.

Integration This function is used in the following business scenarios:  Self-Service Procurement 

Plan-Driven Procurement



Service Procurement



Sourcing



Contract Management

The process-controlled workflow uses the following SAP NetWeaver technologies: 

SAP Business Workflow The SAP Business Workflow provides workflow templates that drive and control the approval process. The SAP Business Workflow also creates the work items that are displayed in the responsible agent's UWL. For more information about SAP Business Workflow, see the related documentation for SAP NetWeaver 7.0 on SAP Help Portal at http://help.sap.com SAP NetWeaver Library SAP NetWeaver by Key Capability Workflow



Application Platform by Key Capability

Business Services

SAP Business

.

SAP Business Rule Framework (BRF) You use the BRF to define triggering events and expressions that serve as start conditions for the different process levels. You define expressions in the BRF at design time. Expressions return a result; for example, the shopping cart limit or the total shopping cart amount. At runtime, by using these expressions, the system checks whether or not a predefined process level must be activated. For example, the system checks whether a shopping cart limit has been exceeded. For more information about the BRF, see SAP Help Portal at Central Component

Cross-Application Services

http://help.sap.com

Business Rule Framework (BRF)

.

SAP ERP

Note You define settings for the SAP Business Workflow, BRF, and process-controlled workflows in SAP Solution Manager under Configuration SAP SRM Basic Settings for SAP SRM 

Cross-Application Settings

Business Workflow Process-Controlled Workflow

.

Universal Worklist (UWL) The UWL in the SAP NetWeaver Portal is used for delivering workflow work items to the responsible agents. From the UWL, the responsible agent can navigate directly to the application in which the task can be completed. In addition, you can use the Approve or Reject pushbuttons provided by the UWL to approve or reject a document immediately. Alternatively, users can access their work items directly from the document. When they open a document using the personal object worklist (POWL), the Show My Tasks button is available. Choosing the button opens a popup that displays the user’s current work items for this document.

Features Simple Configuration at Design Time 

Simple options for implementing complex business processes, for example, with the help of the BRF.



Predefined standard process level types:



o

Approval with completion

o

Approval

o

Automatic

Generic set of SAP Business Workflow templates, on which all processes are based: o

Main SRM Approval Process Template (WS40000014)

o

Process Level Control (WS40000015)

o

Completion Subworkflow (WS40000017)

o

Approval Subworkflow (WS40000016)

Flexible Adaptation at Runtime 

Adding ad hoc agents



Adding ad hoc reviewers



Forwarding work items



Assigning substitutes



Using the back-and-forth function

For more information, see Approval Workflow Features.

Approval Process Overview An approval process overview is available for all users involved in the approval process. The process overview gives the following information: 

History of the document: all completed process levels and any restart of the process



Current status of the document: all work items at the current process level



Forecast of further required decision steps

The approval process overview shows all work items that have been created for a process level.

Decision Sets Responsibility for the items of a document can be distributed among several agents. The items are grouped according to the area of responsibility to which they are assigned. Each group of items

represents one decision set. A work item is created for each decision set so that the responsible agents can approve or reject their respective items. For more information, see Decision Sets.

6.8.1.1 Approval Workflow You can use this process to check, approve, or reject items of purchasing documents. You can also discuss any open questions about the items of the document with the requester. This document focuses on the approval of shopping carts, as this is the most sophisticated process in terms of configuration variants. As a document creator, you can approve your own documents if one of the following conditions is met: 

The approval process has been customized accordingly.



The document creator has been specified as substitute.



The approval work item has been forwarded to the document creator.

 The document creator has been added as an ad hoc approver. To use this function, you must activate the Customizing switch Approval by Document Creator(SRM_700_APF_APPR_BY_CREATOR) in Customizing for SAP Supplier Relationship Management under

SRM Server Cross-Application Basic Settings Business Workflow

Activate/Deactivate Approval by

Document Creator .

Prerequisites You have made the appropriate settings in SAP Solution Manager under Configuration SAP SRM Workflow

Basic Settings for SAP SRM

Process-Controlled Workflow



Cross-Application Settings

Business

.

In particular, you have carried out the following configuration steps: 

You have defined at least one process schema containing the whole sequence of all possible completion and approval levels.



You have assigned a Business Rules Framework (BRF) event ID (used for level validation), the subworkflow ID, and the work-item task ID (both used for agent determination) to each process level.

Process The process-controlled workflow framework integrates tightly with the SAP Business Workflow during the workflow process. The SAP Business Workflow drives the process with templates and is responsible for creating work items. The process-controlled workflow provides the process schema containing all possible process levels. 1. The system determines the process schema using the rules defined in the BRF, and starts a new instance of this schema. 2. The SAP Business Workflow starts a new instance of the main workflow template WS40000014, which is responsible for the overall process control. The template works through the process levels defined in the process schema. 3. The subworkflow template WS40000015 is responsible for process level evaluation. It determines whether the process schema contains further process levels to be carried out. The process level evaluation runs in loop cycles and is repeated each time a process level has been finished, provided that no level restart has been requested.

This subworkflow contains only background tasks that communicate with the process-controlled workflow. Based on rules or Business Add-Ins (BAdI), the system checks whether or not a specific process level must be activated. In addition, the items of the shopping cart are assigned to decision sets, if necessary. 4. Depending on the process level type of the activated process level, the system starts one of the following subtemplates: 

WS40000017 (Completion Subworkflow) for process level type approval with completion



WS40000016 (Approval Subworkflow) for process level type approval

Note If there is more than one decision set for the shopping cart, the corresponding number of subworkflow template instances is started. 5. The system determines the agent for the current process level and generates work items, as described in Agent Determination. The agent receives the work item in the Universal Worklist (UWL) in the SAP NetWeaver Portal. 6. To process the work item, the agent can access the appropriate application window directly from the work item and approve or reject the items of the document. As an alternative, the agent can use the shortcut decision function of the UWL. To do this, the UWL provides pushbuttons that can be used to approve or reject the document immediately without checking the items. 7. Steps 3 through 6 are repeated for each process level of the current process schema. 8. Depending on the settings in Customizing, users involved in the approval process, for example, document creators or approvers, receive a notification when the approval process is completed. For more information, see Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings Event and Event Schema for Alert Management Define Recipient of Notifications

.

9. At process end, the system can send a work item for acceptance to the contact person for the document. You can configure the system accordingly in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings Business Workflow Process-Controlled Workflow

Business Process Configuration

Define Process Levels .

The requester can also select Work Item to Requester at Process End in the approval process overview while creating a shopping cart. The system then sends a work item at process end even if this has not been configured in Customizing.

Note In most cases, the contact person for a document is the document creator. This is the case for requesters of shopping carts and purchase orders. However, some documents, such as invoices entered in the Supplier Self-Services application, are sent to the SAP SRM system in XML format and are created there by a technical user. For these documents, the system determines a user to assume responsibility for the document and to serve as contact person. This user can be, for example, the creator of the preceding purchase order. The system also determines an internal contact person if a

supplier, that is, an external business partner, enters a document directly in the SAP SRM application. The contact person is responsible for verifying the document data. 10. The recipient of the work item can now accept the decision, which ends the process. However, as long as the recipient has not yet accepted the decision, it is possible to change the document, even if all items have been rejected. Changing the document results in the system calling back all work items, creating a new work item for the contact person, and possibly restarting the approval process.

6.8.1.1 .1 Process Level Evaluation The subworkflow template WS40000015 is responsible for process level evaluation. This subworkflow contains only background tasks that communicate with the process-controlled workflow. It determines whether or not the process schema contains further process levels to carry out, and whether or not a process level must be activated.

Process Schema and Process Levels You define the process schema at design time, specifying all possible process levels a document has to pass through before it can be released. The process schema distinguishes between the two process level types approval with completion and approval. For each business object, one or more process schemas can be defined. For instance, for purchase orders, contracts, and RFx, you can define separate process schemas for original documents and for change versions of documents. If there is more than one process schema for one business object, the system chooses the appropriate one using the rules defined in the Business Rule Framework (BRF). In the example above, a BRF expression checks whether or not the document is a change version, and triggers the corresponding process schema.

Note You define process schemas and process levels in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Application Basic Settings Business Workflow Process-Controlled Workflow

Business Process Configuration

Define Processes

.

Process Level Activation With the help of the BRF, the system determines whether or not a specific process level needs to be carried out. At design time, BRF events are defined and business rules are assigned to them. The events are assigned to process levels so that, at runtime, the process-controlled workflow can use them as entry points to the BRF. The business rules contain expressions that analyze document data and return a result, for example, the total shopping cart value or the product category of an item. Depending on this result, the corresponding process level is either activated or not activated. The process level evaluation runs in loop cycles and is repeated each time a process level is finished, provided that no level restart has been requested. You can also use the BRF for stochastic document checks, that is, for a random check of documents according to a percentage defined in a BRF expression. You can apply this check for all business object types. For example, you can determine that only 30% of all invoices should be checked. The process

level to which you assign the corresponding expression is then only activated with a probability of 30%. Stochastic document checks can be combined with other BRF rules. For example, you can determine that 30% of all invoices below USD 500 be checked. For more information about the BRF, see SAP Help Portal at

http://help.sap.com

ERP Central Component Cross-Application Services Business Rule Framework (BRF)

SAP ERP SAP

.

Automatic Decision An automatic decision by the system is necessary if the system cannot determine a responsible agent for a process schema. This is the case if one of the following conditions applies:  The process schema contains only a process level of the type automatic. You can configure whether the system approves or rejects the document. 

The process schema contains several process levels, but only the process level of the type automatic is activated at runtime. You can configure whether the system approves or rejects the document.



The process schema contains several process levels, but none of them is activated at runtime. The system then automatically rejects the document.

6.8.1.1.2 Approval with Completion The approval process design takes into account that documents are often incomplete and require completion – or at least a document check – by a specialist. This is especially true for shopping carts. In such cases, the process schema provides process levels of the type approval with completion, subsequently called completion levels. If the process schema contains a completion level, it always precedes the approval levels. For completion levels, the SAP Business Workflow starts template WS40000017 (Completion Subworkflow).

Process 1. The completion level is triggered if one of the start conditions defined in Customizing applies, for example: 

Free text items exist



Items without supplier exist



Items without price exist



Requester of the shopping cart is not a purchaser

2. The system determines the alternative responsible agents for the document and generates work items that the agents can access in the Universal Worklist (UWL). Typically, the responsible agent is a purchaser from a specific purchasing department or a category manager responsible for a specific product category. During the completion level, only decision types 1 and 2 are possible, that is, the document cannot be split into several decision sets. For more information, see Decision Types. 3. One of the responsible agents accesses and processes the work item, which is then locked for the other users. During the completion level, the agent can change the document.

If the agent changes the shopping cart, a work item is sent back to the requester. However, to accelerate the process, the agent can also release the document immediately without involving the requester again. The following table shows the typical actions taken in a completion level and their consequences for the process flow: Agent

Work Item

Action

Consequence

Rejects shopping cart

If configured, work item of type adjust sent

Type Approver

Decide

to requester for acceptance Rejects at least one but not all

Work item of type adjustsent to requester

shopping cart items Completes and approves shopping

Approval process not complete: next

cart

process level determined Approval process complete: if configured, work item of type adjustsent to requester

Requester Adjust

Changes shopping cart and sends back to requester (Inquirefunction)

Work item of type adjustsent to requester

Accepts rejection

Shopping cart not released

Accepts partial rejection

Rejected items deleted; next process level determined

Not

Accepts changes

Next process level determined

Makes further changes

Process level restart

Edits shopping cart using POWL

Open work items called back; work item of typerevise created for requester

Changes shopping cart

Complete restart

applicable Revise

Note In general, changes to a document can only be made if the agent has a work item for this document in his or her UWL. Therefore, if a requester wants to make changes to a shopping cart, the system calls back all generated work items and creates a new work item for the requester.

6.8.1.1.3 Approval A process schema can contain one or more process levels of the type approval. During the approval level, the responsible agents can approve or reject items of a shopping cart. The number of approval process levels depends on the process schema and on whether the start conditions for a given process level apply for the shopping cart. For approval levels, the SAP Business Workflow starts template WS40000017 (Approval Subworkflow).

Process 1. The approval process is triggered if one of the start conditions defined in Customizing applies, for example: 

Total value exceeds defined value



Line item value exceeds defined value (line item approval)

2. The system determines the (alternative) responsible agents for the relevant decision set and creates a work item for them. During the approval level, a number of decision types are possible. For more information, see Decision Types. 3. One of the responsible agents accesses and processes the work item, which is then locked for the other users. The following table shows the typical actions taken in an approval level and their consequences for the process flow: Agent

Work Item

Action

Consequence

Rejects shopping cart

If configured, work item of type adjust sent to

Type Approver

Decide

requester for acceptance Rejects at least one but not

Work item of type adjustsent to requester

all shopping cart items Approves shopping cart

Approval process not complete: next process level determined Approval process complete: if configured, work item of type adjustsent to requester

Requester Adjust

Accepts rejection

Shopping cart not released

Accepts partial rejection

Next process level determined

Not

Edits shopping cart using

applicable

POWL

Open work items called back; work item of typerevise created for requester

Revise

Changes shopping cart

Complete restart

Note By default, document changes are not allowed during the approval process, except for rejecting items, and adding or changing approval notes and attachments. However, the system can be configured in a way to allow single fields of the document to be changed, or actions to be used, even during the approval process. For more information, see SAP Note 1277921 and SAP Solution Manager under Configuration SAP SRM Workflow

Basic Settings for SAP SRM

Process-Controlled Workflow

Process Definition.



Cross-Application Settings

Process-Controlled Workflow Settings

Business

, in the section Approval

6.8.1.1.4 Approval Workflow Features You can use the following features to adapt flexibly the approval workflow process flow at runtime.

Back-and-Forth Processing In a process level of the type approval with completion, this property enables the creator of a purchasing document and the currently responsible agent to communicate with each other, for example, in the case of open questions or changes to the document. By using the Inquire pushbutton provided by the Universal Worklist (UWL), the approver can send the work item back to the creator including, if necessary, a comment or question. The creator can then change the document and send it again. In a process level of the type approval, back-and-forth processing is possible in the case of rejected items: 

In the case of a partial rejection, the requester receives a work item informing him or her about the rejection. The requester can then change the document.



In the case of a complete rejection, the requester receives a work item if the system has been configured accordingly in Customizing for SAP Supplier Relationship Management (SAP SRM) under SRM Server Cross-Application Basic Settings Business Workflow Process-Controlled Workflow

Business Process Configuration Define Process Levels . The requester can then change the

document. The requester can also select Work Item to Requester at Process End in the approval process overview while creating a shopping cart. The system then sends a work item even if this has not been configured in Customizing.

Inserting Ad Hoc Agents Any person participating in a workflow process can insert ad hoc agents in addition to the responsible agents that the system determines based on the process schema. The system creates a work item for the ad hoc agent on any process level after the current one. The decision set and the decision type for the ad hoc agent are identical to the ones in the current process level.

Inserting Reviewers You can add reviewers to the approval process. Reviewers can follow the entire approval process for a procurement document, independent of which decision type applies. In particular, they can do the following: 

Display the document



Display existing attachments or create new ones



Add notes



Insert further reviewers

Reviewers cannot approve or reject the document and they cannot add further approvers. The system records whether the reviewer has accessed the work item or taken any action. The following options are provided to add reviewers: 

User adds ad hoc reviewer Document creators and approvers who are assigned a work item can add ad hoc reviewers to the approval process. The Business Add-In (BAdI) Adjust Search Help for Reviewer (/SAPSRM/BD_WF_REVIEWER_F4) allows you to specify who is authorized to add ad hoc reviewers and who can be added as an ad hoc reviewer.



System adds reviewers based on rules Apart from adding ad hoc reviewers, it is also possible to configure the system such that reviewers are inserted automatically into the approval process, according to rules. The system determines reviewers in the same way that it determines approvers, for instance, by specific document fields, such as product category or accounting type, by business object attributes, or by specific roles or users. The BAdI Define Reviewers (/SAPSRM/BD_WF_REVIEWER_RULE) is supplied to assign documents to groups of agents for review.

Note Document changes during an approval process can have an impact on the reviewer assignment.

Forwarding Work Items Forwarding work items is a feature provided by the UWL. Any recipient of a work item can use the Forwardpushbutton in the UWL to forward the work item to another user. You can search for a certain user in a list and forward the work item to this user. The selected user can then process the work item.

Caution The list of users is not restricted to the possible agents of a work item.

Note Forwarding work items can also be done using the Business Workplace (transaction code SBWP).

Forwarding for Administrators Administrators may want to forward work items that they have not received themselves in their UWL. For instance, forwarding work items might be necessary if the responsible agent assigned to the work item is not available. You can forward work items as an administrator by using transaction SWIA, a feature of the SAP Business Workflow. Enter selection criteria to search for a specific work item. Select the work item and choose theAdministrator Forward pushbutton. Administrators can also process the work item or send it back to the requester.

Assigning Substitutes Assigning substitutes, for example, for periods of absence, is a feature provided by the UWL. Depending on the substitution rules you set, substitutes can receive your work items directly in their UWL, or they can actively take over your work items. For more information, see SAP Help Portal at http://help.sap.com under SAP Library Getting Started – Using SAP Software and Features

Using Universal Worklist

Working with Tools

Features in the UWL Substitution .

Process Restart Restarting an approval process is necessary if the requester or the responsible agent changes the document. Using the BAdI Manage Process Restarts (/SAPSRM/BD_WF_PROCESS_RESTART), the system can override the standard system behavior for process restarts. The process is then restarted at the same active level.

Note

In the case of a complete process restart, ad hoc agents that have previously been added are not taken into account. They must be added again. If you override the standard process, you cannot add an ad hoc approver at the process level that precedes the active process level. If a process restart takes place, all existing work items are called back and deleted. The system does not start a new process instance. Process levels that have already been processed are not removed from the process history.

6.8.1.1.5 Approval Workflow for Purchase Order Responses Approval processes for purchase order responses (POR) do not use the process-controlled workflow framework and consequently do not require the related business process configuration or Business AddIns (BAdIs). Instead, the process logic is hard-coded. The following start conditions are checked:  The data is within the tolerances defined in Customizing for Supplier Relationship Management (SRM) under 

SRM Server Cross-Application Basic Settings Set Tolerance Checks .

No differences exist between purchase order (PO) and POR.

If both start conditions are true, the POR data is transferred to the PO without the need for any further manual data entry. If one of the start conditions is not fulfilled, the purchaser receives a workflow work item. E-mail notifications or alerts are not sent. If you want to modify the logic for agent determination or the start conditions, you can implement the BAdI POR Start Conditions and Agent Determination (BBP_PCO_WFL_BADI). This BAdI contains the following methods:  DETERMINE_AGENT (to determine agents) 

START_WORKFLOW (to define start conditions)

Note If you have switched from application-controlled workflow framework to process-controlled workflow framework, you must deactivate the start conditions for the templates WS14500001 and WS14500019.

6.8.1.1.6 Offline Approval Approvers of shopping carts can process work items without logging on to the SAP Supplier Relationship Management (SAP SRM) system. The system can send work items by e-mail so that users can process them in their Microsoft Outlook mail client.

Note The work items that are selected for offline approval remain in the approver's Universal Worklist (UWL) until the reply e-mails containing the decisions are received and processed by the SAP SRM system. If the work items have since been processed online, the system ignores the reply e-mails.

Prerequisites 

In the Customizing activity Change Organizational Plan (transaction PPOMA_BBP), you have set the attributeFORWARD_WI to 'X' for all users that are to use the offline approval function. Alternatively, users can set the attribute by maintaining their user settings in the SAP SRM application under Personalize SRM User Settings . In the Personal Data area, on the Position tab page, select Flag: Forward Work Item from the Attributes dropdown box. Select the Yes radio button



for Forward Work Item. Using the User Maintenance transaction (SU01), you have entered the following: o

The e-mail address of the system user WF-BATCH

o

The e-mail addresses of all users that are to use the offline approval function

Features E-Mail Settings You can use report /SAPSRM/OFFLINEAPPROVALSEND to define settings for the e-mails that the system sends for offline approval. These settings can be specified for certain tasks, business objects, or work items. You can, for example, set the message frequency to be one e-mail per work item.

Note To ensure that the e-mails are generated with the correct hyperlink, follow the instructions described in SAP note 1502282. You can also do the following: 

Define whether e-mails are sent in HTML or plain text



Choose whether approval pushbuttons should be displayed in the e-mail

Note If you choose Not Available in the report, the recipient cannot approve or reject the document offline but must use a link to log on to the SAP SRM system to process the work item there. 

Choose whether the e-mails contain a short text (work item text) or a full text (task description of the workflow task)



Choose the e-mail language



Select whether a print version of the document and other document attachments is to be attached to the e-mail



Define a standard notification text



Define that only work items created after a certain time or created by a certain user are to be considered

Note This function is only available if you start the report manually. If a periodic run has taken place before you start the report manually, it is possible that e-mails are sent again that had already been sent during the periodic run. 

Enter the return address of the e-mails. The return address must be identical to the recipient address in SAPconnect.



Choose whether you want to encrypt and/or digitally sign e-mails when you send them. For more information, see SAP note 149926. In the method APPEND_TO_SUBJECT of Business Add-In Connect External Security Proxies to SAPconnect (SX_SECURE_EMAIL), you can specify the information that the mail system needs for encryption and digital signatures.

Outbound Processing You use the Business Add-In (BAdI) Customer Enhancement of Offline Approval (BBP_OFFLINE_APP_BADI) for outbound processing. For more information, see the BAdI documentation in Customizing for SAP SRM under Process-Controlled Workflow

SRM Server

Business Add-Ins Business Workflow

Customer Enhancement of Offline Approval .

Offline Approval by the Recipient The approver can use a link to log on to the system directly and process the work item online. Depending on the settings made in report /SAPSRM/OFFLINEAPPROVALSEND, the e-mail can also contain two pushbuttons used to approve or reject offline. The decision then applies to the entire decision set, that is, the approver cannot decide individually for each item. When the approver chooses one of the pushbuttons, the system sends a reply e-mail.

Note If the approver wants to add an approval note, he or she must do so before choosing the Approve or Rejectpushbutton.

Caution It is possible to forward the e-mail to third parties. However, we do not recommend doing so. Provided that they have valid system logon data, other recipients can also use the link contained in the e-mail to log on to the SAP SRM system. For security reasons, the SAP SRM system only accepts reply e-mails from the e-mail address of the original recipient.

Inbound Processing You use SAPconnect for inbound processing. For more information on SAPconnect, see SAP Help Portal at http://help.sap.com SAP NetWeaver Library SAP NetWeaver by Key Capabilities Application Platform by Key Capabilities

Platform-Wide Services

Connectivity

Communication Interfaces for Mail and

Telephony SAPconnect (BC-SRV-COM) . To activate inbound processing, go to transaction SO50 and create an entry with the following data: 

Communication Type: Internet Mail

 

Recipient Address: valid e-mail address to which reply e-mails from approvers are to be delivered Exit Name: /SAPSRM/CL_OFFLINEAPP_INBOUND

Note The following roles must be given to the SAPconnect user for offline approval:  /SAPSRM/EMPLOYEE 

/SAPSRM/OP_PURCHASER

When the system receives a reply e-mail from an approver, the specified class (Exit Name entered in transactionSO50) is used for processing. The work item ID, status, and the decision of the approver are evaluated. The system only processes reply e-mails from a sender that is identical to the recipient of the

corresponding notification e-mail. If the document is locked when the e-mail is received, or if immediate processing fails for any other reason, the reply e-mail is forwarded to the SAP Business Workplace inbox of the user who is assigned to the specified address.

Note The processing parameters in inbound processing can be overridden using the BAdI Customer Enhancement of Offline Approval (BBP_OFFLINE_APP_BADI), method RECIPIENTS_GET CHK_SENDER_IND_SET.

6.8.1.2 Decision Sets Decision sets are groups of items of a purchasing document in an approval process. Purchasing documents, such as shopping carts, can contain items belonging to different areas of responsibility, for example different product categories. Each area can have a different responsible agent. Instead of sending work items to a single agent, or to one after the other until the whole document is approved, the items of the document can be grouped into disjoint decision sets. A work item is created for each decision set. The responsible agents can view all items of the document, but can edit only the ones they have been assigned. All other items are inactive. The next process level can only be activated if all decision sets have been decided upon. The system can determine the number of decision sets in two different ways, depending on your Customizing settings: 

By way of a context function that analyzes item data



By way of the organizational plan

Note In the common line manager approval, the system does not create several decision sets. This is because the entire document is decided upon by the requester's direct line manager.

6.8.1.3Decision Types During an approval process, agents can decide on purchasing documents in different ways, depending on the following criteria: 

Are the items of the document grouped into decision sets?



Is the decision taken per decision set or per item?

There are four decision types:

Decision Type 1: Decision for Entire Document The document is approved by a single agent as a single, indivisible unit of decision.

Decision Type 1

Decision Type 2: Item-Based Decision for Entire Document The document is approved by a single agent. The decision is made individually for each item of the document.

Decision Type 2

Decision Type 3: Overall Decision for Partial Document The items of the document are grouped into decision sets. Each decision set is approved by a separate agent. The decision applies to the entire decision set.

Decision Type 3

Decision Type 4: Item-Based Decision for Partial Document The items of the document are grouped into decision sets. Each decision set is approved by a separate agent. The decision is made individually for each item of the decision set.

Decision Type 4

Decision type 4 is used, for example, for parallel approval with overlapping responsibility. In this case, however, an item of a shopping cart is part of several decision sets because it needs to be approved by several agents on one process level. For more information, see Agent Determination.

Note 

Each process level is assigned one decision type. However, if the decision type chosen provides for an item-based decision (as in decision type 2 and 4), the user can still use the shortcut decision function in the Universal Worklist (UWL) and thus approve or reject all items at one time, just as in decision types 1 and 3.



When choosing decision type 3 or 4, the system creates several decision sets, depending on the areas of responsibility the items of the document belong to. For more information, see Decision Sets.

Note For completion levels, only decision types 1 and 2 are available. 

When choosing decision type 1 or 3, the responsible agent makes a decision for the entire document or decision set, whereas with decision type 2 or 4, each item can be decided upon individually.

6.8.1.4 Agent Determination For each process level, the system determines the agents responsible for completing or approving purchasing documents. Depending on your Customizing settings, more than one person can be responsible for the items in one document (see Decision Types). Agent determination is performed using the Business Add-In (BAdI) Define Agents(/SAPSRM/BD_WF_RESP_RESOLVER), which you can use to make your own process levelspecific implementations. SAP Supplier Relationship Management (SAP SRM) delivers implementations for the following typical scenarios: 

Responsible purchasers for shopping cart completion



Line managers (by evaluating the reporting line)



Users with a specific role



Spending limit approval

 Parallel approval with overlapping responsibility For more information, see the BAdI documentation in Customizing for SAP SRM under Business Add-Ins Business Workflow

Process-Controlled Workflow

SRM Server

Define Agents .

For more information about the strategies on which these implementations are based, see SAP Service Marketplace at http://service.sap.com/instguides SAP Business Suite Applications SAP SRM

SAP SRM Server 7.0 Workflow Guide – SAP SRM 7.0 .

You can also use this BAdI to specify fallback agents. Fallback agents receive a specific work item when the system cannot determine a responsible agent for this work item.

Caution Note that you should use the fallback agents function with caution. Fallback agents are able to forward work items to the appropriate agents, but they can also process work items themselves, that is, they can approve or reject the items in a document.

Parallel Approval with Overlapping Responsibility Instead of configuring a process schema with one process level for each responsible agent, you can also allow several agents to approve a specific item of a shopping cart on one process level. If you do so, all approvers receive a work item in parallel instead of one after the other in a fixed sequence. The approvers can then process their work items independently of each other. However, while a work item is being processed, the document is locked for other users.

The document can only receive the status Approved or enter the next process level after each agent has approved it. As soon as one agent rejects an item, all open work items are called back and the document status is set toRejected. Parallel approval with overlapping responsibility is possible for decision type 4 only. For more information about configuring parallel approval, see SAP Solution Manager under name>

Configuration SAP SRM

Business Workflow Process-Controlled Workflow Approval with Overlapping Responsibility

= Is Null

Operator Type

Operators Is Not Null

Boolean Field

True False Is Null Is Not Null

On the General tab page, the following searches are available: 

Attribute search. This searches for categories and suppliers, and the attribute priority feature is also available.



Contract ID search. This searches for items and their prices.



AllLookupFields search. This searches using all the lookup fields of the lookup table, instead of only the display field.

More Information See SAP Solution Manager



Management Business Processes

Scenarios SAP SRM

Searching in Catalog Data

Catalog Content

Search for Items

7.2.10.2 User-Specific Configuration: Shopping Options You can use this function to configure shopping options for individual users.

Prerequisites You are assigned the role of User-Interface (UI) Configuration Manager in the MDM console.

Features You can configure the following shopping options: 

Catalog type The catalog supports the product procurement and the service procurement scenarios. Product procurement is represented by Product and service procurement by Service (MSS)

Note A catalog is either for product or for service procurement. It is not possible for one catalog to contain both products and services. 

Cart Enables users to transfer items to a procurement application.



Cart Preview Provides: o

A running total with each line item added

o

A recalculate function for updating totals when an item quantity is changed

o

The option of adding selected items to the shopping list

o o

Images for sales package items A Delete All Items button for removing items from the shopping cart

o 

A scale price for each line total

Catalog Exploring Display Only Allows users to browse for items in the catalog. However, user cannot procure items, add items to a shopping list, or access the shopping cart preview.

7.2.10.3 Item Display Options for Product Procurement You can use this function to configure the item display for individual users.

Prerequisites You are assigned the role of User Interface (UI) Configuration Manager in the MDM console.

Features On the General tab page, the following features are available: 

View types A list view provides a URL to item details. A thumbnail view enables navigation up and down. A grid view enables grid mode display All views provide item images.



The system issues a warning message if the user adds an item to the shopping cart with an order quantity less than the minimum order specified with the option Use Minimum Quantity as Default.



The system restricts the number of items in the hit list with the option Number of Results.



The system calculates the scale price of the items for comparison purposes.

Example CDs are available for purchase in packs of 10, costing 10 euros per pack. The scale price displayed is the price per CD of one euro. 

Electronic forms (e-forms) For more information, see Integrating Electronic Forms.

7.2.10.5 Integrating Electronic Forms To order items that require information in a structured manner, such as business cards, electronic forms (e-forms) can be called from the shopping cart preview (SCP).

Prerequisites 

Your electronic forms application must be available and the e-forms application archive (JSP, HTML, or Servelet) file is deployed on the web server on the application pathhttp://Server:MessagePort/Webcontext/ApplicationName

Note If you are not using this application path, check that the path you are using is accessible from the SRM-MDM catalog.

Procedure 1. In the configuration search user interface (UI), choose General. 2. In Shopping Options, choose Cart Preview. 3. In Item Display Criteria, choose Yes for Enable Use of Electronic Forms. 4. In the MDM Data Manager, add the entry Eform to the lookup table Hyperlink Types.

7.2.10.6 Compare Function 5. 6. You use this function for price comparisons between sales packages, accessories, and substitute items.

7. Prerequisites 8. To use Display Product Attributes as part of the comparison, the hierarchy (category) view must also be configured as a visible field. 9. You are assigned the role of UI Configuration Manager in the MDM console. 10. To use attributes and priorities as part of this function, settings must be made in the General tab page of the user-specific configuration.

7.2.11 Catalog Item Types You use this function to model the different flavors of relationships between: 

Sales Packages



Accessories



Substitute Items

Prerequisites Item types are maintained in the MDM Data Manager

Features Item Types

Item Type

Item Type

Code

Name

N

Normal

Use

Default item type for any item. It refers to an item in the catalog that can be purchased individually. Can also be a component of the item type code SK1 (Fixed Sales Package), SK2 (Configurable Sales Package) or BOM (Bill of Materials). This item type can have accessories and substitutes.

SK1

SK2

BOM

Fixed Sales

Header item of a fixed sales package. This item type can have accessories

Package

and substitutes.

Configurable

Header item of configurable sales package. This item type can have

Sales Package

accessories and substitutes and optional components assigned to it.

Bill of Material

Header item of a bill of materials sales package. This item type can have

Item Types

Item Type

Item Type

Code

Name

Use

accessories and substitutes. Component

C

Component of item types SK1, SK2 or BOM. This item type cannot be purchased individually.

7.2.11.1 Sales Packages You use this function to tell customers about special offers, discounts or the opportunity of buying the selected item with related items at a price cheaper than purchasing the items separately.

Features The following sales package types are available 

Fixed Sales Package A group of items in which the header price has a designated price that can be different from the sum of the individual items in the sales package. From a marketing point of view it is expected that the header price would be cheaper than buying the items individually. The user cannot change the quantity of an individual item nor delete any items from this type of sales package.



Configurable Sales Package A group of items in which the header price is the same as the sum of the individual items in sales package. The user can delete items or change the quantity of optional items in this sales package. In contrast to a fixed sales package, the header price is calculated.



Bill of Materials (BOM) A group of items in which the header price is the same as the sum of the individual items in a sales package. The user can delete items or change the quantity of items in this type of sales package.

7.2.11.2 Substitute Items You use this function to tell users about items that for business and technical reasons, and within the boundaries of a given industrial concept are acceptable alternatives to the item initially selected.

Integration Substitute items are defined by the relationship type Substitutes in the MDM Data Manager.

7.2.11.3 Accessories You use this function to upsell products and services.

Integration Accessories are defined by the relationship type Accessories in the MDM Data Manager.

Features An accessory is offered as an optional item and can be ordered individually.

Example Once a camera of a particular make has been selected for procurement, accessories such as a memory card, camera bag and so on are displayed for purchase.

7.3 SRM-MDM Catalog: Service Procurement You use the SRM-MDM Catalog to search and procure services from suppliers. It provides:  

Uploads of service hierarchies from the SAP Supplier Relationship Management (SAP SRM) RFx Uploads of service hierarchies from SAP ERP using the transaction MECCM



Upload of service hierarchies and contract details from SAP SRM central contracts



Service procurement catalogs



Web-enabled catalog search



Fully configurable search user interface (UI)



Cart Preview. For more information, see User-Specific Configuration: Shopping Options.

The SRM-MDM Catalog is based on functions provided by SAP NetWeaver Master Data Management (SAP NetWeaver MDM) and bundles together in one specific application those SAP NetWeaver MDM functions required for the service procurement scenario. The figure below displays an overview of the upload scenario for service procurement and the service procurement scenario for the SRM-MDM Catalog.

Service Procurement

Legend XML 1 = Hierarchy structure (headers and outlines) XML 2 = Service Items (functional location, infolines and free text) XML 3= Non-hierarchical items (not applicable for service data transferred from SAP ERP)

Integration The following table shows the SAP NetWeaver MDM components included in the SRM-MDM Catalog for service procurement: MDM Server

MDM Import Manager

MDM Import Server

MDM Business Content

MDM Console

MDM Java API

MDM Data Manager

Business Scenarios The search in the catalog repository is integrated with the following SAP SRM and SAP ERP business scenarios: 

SAP SRM: Self-Service Procurement



SAP SRM: Service Procurement



SAP SRM: Contract Management

Features 

Import of service hierarchies using the MDM Import Manager with SAP Process Integration (SAP PI) The MDM Import Manager with SAP Process Integration (SAP PI) is used for importing service hierarchies based on the SAP SRM RFx. XML is supported. For more information, see Transferring Service Hierarchies from SAP SRM.



Import of service hierarchies from SAP ERP The transaction MECCM is used for importing service hierarchies from SAP ERP. XML is supported.



Provision of data for a web-enabled catalog search Using the MDM Data Manager, you can determine the necessary parameters for collecting the data for your procurement catalog and making them accessible on the Web. From the procurement application of the supported business scenarios you can open the SRM-MDM Catalog, select catalog items, and transfer the data.



Predefined catalog repository The SRM-MDM Catalog includes a predefined data repository for your catalog data. This standard repository comprises the main table Catalog Items and a number of additional sub-tables, for example, for value lookups or classification. For more information, see Loading Predefined Repositories for Service Procurement.



Fully configurable user-specific search UI All aspects of the Search UI are configurable to meet user-specific requirements. For more information, see User-Specific Configuration for Service Procurement.

Inheritance Levels for Supported Languages The system enables inheritance levels for the supported languages.

Example US is to be used as the primary language. FR as the secondary language in case US is unavailable. DEsubstitutes the secondary language if FR is unavailable. On the other hand, the language of your content (the data language in fields and tables, for example) can be in any language supported by SAP NetWeaver MDM 7.1. The following table shows the supported languages: Chinese (ZH)

Finnish (FI)

Hungarian (HU)

Polish (PL)

Swedish (SV)

Czech (CS)

French (FR)

Italian (IT)

Portuguese (PT)

Thai (TH)

Danish (DA)

German (DE)

Japanese (JA)

Russian (RU)

Turkish (TR)

Dutch (NL)

Greek (EL)

Korean (KO)

Slovakian (SK)

English (US)

Hebrew (HE)

Norwegian (NO)

Spanish (ES)

Constraints The SRM-MDM Catalog component for service procurement uses SAP NetWeaver MDM technology. However, it does not cover the full scope of functions provided by SAP NetWeaver MDM.

Note Service procurement data can only be uploaded from SAP SRM or SAP ERP. For more information, see: Transferring Service Hierarchies from SAP SRM Transferring Service Hierarchies from SAP ERP SAP Note 1250442

7.3.1 Roles The following roles are available for the SRM-MDM Catalog:  User Interface (UI) Configuration Manager Can set up user-specific configuration for users who are assigned the Catalog User role. The owner of this role is authorized to configure the Java-based Web Dynpro search UI and the open catalog interface (OCI) mapping. For more information, see SAP Solution Manager under

Catalog Content Management Business Processes

to Procurement System 



Scenario SAP SRM

Searching in Catalog Data Transfer Data

.

Catalog Manager Responsible for importing, managing, and classifying product and contract data in the MDM Import Manager and MDM Data Manager. The Catalog Manager configures masks and named searches.



Catalog Content Approver



Responsible for approving or rejecting catalog items in the SRM-MDM Catalog workflow. Catalog User



Searches for products in the catalog and adds them to a procurement application such as the cart. Administrator Has full administrative rights to manage the available functions, maintain roles in the MDM Console,



and link them to masks (views). For more information, see Masks. External Integration A technical role that is used for the automatic upload of data via the MDM Import Server. The system user is assigned to this role.

7.3.2 Loading Predefined Repositories for Service Procurement You use this procedure to make a predefined repository available in your SRM-MDM Catalog for the service procurement scenario.

Prerequisites



In the user-specific configuration UI, the shopping option Service (MSS) has been selected as the catalog type. For more information, see User-Specific Configuration: Shopping Options.



The database server, such as the SQL server, has been started.



The MDM server has been installed and started in the MDM Console. For more information, see SAP Service Marketplace at http://service.sap.com/installmdm



The predefined catalog repository is stored in the Archives folder of the MDM server installation directory.

Example The file SRM_MDM_Catalog_.a2a is stored on C:\usr\sap\\MDS\mdm\archives.

Procedure 1. In the MDM Console, select the compressed file containing the predefined repository and, in the context menu, choose Unarchive Repository. 1. Enter your logon data for the DBMS server. 2. Specify a repository name.

Recommendation We recommend using a name without spaces or using underscores, such asSRM_MDM_Catalog_. 3. Select an archive file from the Archives folder.

Note The archive files are displayed without the file extension *.a2a. 2. The system unarchives the file and displays the catalog repository in the console hierarchy. 3. Expand the console hierarchy to view the content of the repository. 4. Select the unarchived catalog repository and, in the context menu, choose Load Repository.

7.3.3 Transferring Service Hierarchies from SAP SRM You use this procedure to transfer a service hierarchy based on an RFx from SAP SRM to the SRM-MDM Catalog in the service procurement scenario. It is possible to transfer hierarchical and non-hierarchical items from an RFx to the SRM-MDM Catalog.

Prerequisites  

You are a purchaser. You are in the Strategic Sourcing navigation area.



The RFx response has been accepted.

Procedure 1. Select the RFx response and choose Responses and Awards. 2. Choose the Items tab page.

3. Choose Publish to Catalog to transfer the items to the catalog.

Result To check that items have been transferred to the catalog, run transaction SXMB_MONI, and check that at least two XMLs have been passed from SAP SRM to SAP Process Integration (SAP PI). An XML containing the hierarchical structure (headers and outlines) and an XML containing service items (functional location and free text) must have been passed. The other XML is passed only if you have transferred non-hierarchical items. For more information about catalog item types, see Catalog Item Types for Service Procurement.

7.3.4 Transferring Service Hierarchies from SAP ERP You use this procedure to transfer service hierarchies from SAP ERP to SRM-MDM Catalog.

Procedure 1. Logon to SAP ERP, and run transaction MECCM. 2. Select the Select Contract Items checkbox. 3. Enter data in the Vendor, Purchasing Organization, Material, and Plant fields. 4. In the Language-Indep. Catalog Name field, enter the catalog name. 5. In the Date of Price Determination field, enter a date on which the price of service items should be calculated. 6. Deselect the Test Run checkbox. 7. Choose Execute.

7.3.5 Restriction of Access to Catalog Items You use this function to hide specified database records from view, restrict catalog access to specific parts of the catalog, or to a limited subset of items for specific users.

Prerequisites You have been assigned the role Catalog Manager or Administrator.

Activities To restrict access to the catalog, you define: 

Masks

 Named Searches For more information, see SAP Solution Manager under Scenarios

Catalog Content Management Business Processes

Catalog Define Masks and Named Searches



SAP SRM

Managing Product Content in the SRM-MDM

7.3.6 Search User Interface for Service Procurement This function provides search strategies for locating services, service item details, and transferring service items to procurement applications such as the cart. The Search User Interface (UI) can be configured to meet individual user requirements.

Prerequisites The User Interface (UI) Configuration Manager is responsible for configuring the search UI. If you cannot access some of the functions and features listed below, check that your user has been correctly configured. For more information, see User-Specific Configuration: Service Procurement.

Features On the Search page: 

Keyword search



Advanced search



MSS Hierarchy/Selection list

 The search results are displayed in a hierarchical list On the Results page, you can do the following: 

Expand the selected headers to display outline items

 

Add items to the cart preview Display the cart preview. This feature displays the services selected on the Preview tab page. The Preview tab page comprises the functions Transfer All Services (to a procurement application), Delete Selected Services,Delete All Services, Back to Search Result, Recalculate Price.



Display the current search parameters on the Search Criteria page.

7.3.7 User-Specific Configuration for Service Procurement You use this function to configure the search user interface (UI) to meet individual user requirements.

Prerequisites You are assigned the role UI Configuration Manager in the MDM console.

Features You can configure the: 

Shopping options, such as the catalog type (product or service procurement). For more information, see User-Specific Configuration: Shopping Options



Open Catalog Interface (OCI) Mapping For more information, see SAP Solution Manager Catalog Content Management

Business Processes

Scenarios

Searching in Catalog Data Transferring Data to

Procurement System 

SAP SRM

Search options, such as the use of field types in advanced search fields. For more information, see Search Options for Service Procurement.

7.3.7.1 Search Options for Service Procurement You can use this function to configure search options for individual users.

Prerequisites You are assigned the role of UI Configuration Manager in the MDM console.

Features In the Customize Search tab page: 

Aspects of search tab such as the list type, hierarchy or selection, availability of advance search and so on can be configured.



The search criteria types, dropdown, ranges, or free text are available for the configuration of advanced search fields



The following operators are available: Operator Type

Operators

Text or Hierarchy Field

Contains Starts with Ends with Equals Excludes Sounds like Is Null Is Not Null

Normalized Text

Contains Starts with Ends with Equals Sounds like Is Null Is Not Null

Integer or Real Field

= < >= Is Null Is Not Null

Boolean Field

True False Is Null Is Not Null

More Information See SAP Solution Manager



Management Business Processes

SAP SRM

Searching in Catalog Data

Scenarios Catalog Content

Search for Items

7.3.7.2 User-Specific Configuration: Shopping Options You can use this function to configure shopping options for individual users.

Prerequisites You are assigned the role of User-Interface (UI) Configuration Manager in the MDM console.

Features You can configure the following shopping options: 

Catalog type The catalog supports the product procurement and the service procurement scenarios. Product procurement is represented by Product and service procurement by Service (MSS)

Note A catalog is either for product or for service procurement. It is not possible for one catalog to contain both products and services. 

Cart Enables users to transfer items to a procurement application.



Cart Preview Provides:



o

A running total with each line item added

o

A recalculate function for updating totals when an item quantity is changed

o

The option of adding selected items to the shopping list

o o

Images for sales package items A Delete All Items button for removing items from the shopping cart

o

A scale price for each line total

Catalog Exploring Display Only Allows users to browse for items in the catalog. However, user cannot procure items, add items to a shopping list, or access the shopping cart preview.

More Information See SAP Solution Manager under Management Business Process



Scenarios

Searching in Catalog Data

SAP SRM

Search for Items

.

7.3.8 Catalog Item Types for Service Procurement Prerequisites Item Types are maintained in the MDM Data Manager.

Catalog Content

Features Item Type

Item Type

Code

Name

R

Header

By default each hierarchy has a header and it acts as a root for the hierarchy.

O

Outlines

Outlines are attached below this header and can exist at different levels

F

Functional

Refers to an item type of service items. Service items of this type are

Location

maintained in the service master data of either SAP ERP or SAP SRM

Free Text

Refers to a service item type but these can be added as needed as no master

L

Use

data is maintained for them in either SAP ERP or SAP SRM. I

Info lines

Refers to a service item type. These are added to provide more information about the hierarchy. These items cannot be shopped.

7.3.9 Transferring Service Hierarchies from Microsoft Excel You use this procedure to transfer service hierarchies from a Microsoft Excel sheet to the SRM-MDM Catalog. The relevant Customizing switch is Service Procurement Enhancements for SRM-MDM Catalog (CAT_701_CTR_UPLOAD),

Prerequisites 

You have prepared the data to be imported using the XML templates.



You have identified the service repository to which the data must be imported, and have been assigned the Administrator role for that repository.

Procedure 1. Using SAP MDM Import Manager, connect to the service repository using the following data:  Type: Excel 

Remote system: SRM

2. In the File name field, select the Microsoft Excel file to be exported, and choose Finish. 3. Choose

File

Open

, and select the map _XLS_Structure.

Note Ensure that the source is XLS1, and the destination table is MSS Hierarchy. 4. Choose the Import Status tab, and ensure that the status is Ready to Import.

Note If the status is Map ‘MSS Hierarchy field Value(s), proceed as follows: 1. On the Map Fields/Values tab, select the corresponding map. 2. Choose

Add Add Branch as Child

.

3. Choose the Import Status tab, and ensure that the status is Ready to Import.

Choose Execute Import. Repeat steps 3-5 for the following maps: 

_XLS_Structure_Price



_XLS_MSS_ITEM



_XLS_MSS_ITEM_PRICE Using SAP MDM Data Manager, logon to the service repository and ensure that the data has

been imported.

7.3.10 Transferring Service Hierarchies from SRM-MDM Catalog to SAP SRM Central Contracts You use this procedure to transfer service hierarchies from SRM-MDM Catalog to a SAP Supplier Relationship Management (SAP SRM) central contract in the service procurement scenario.

Prerequisites You have been assigned the Strategic Purchaser role.

Procedure 1. Logon to SAP SRM, and choose

Strategic Purchasing

Contract Management Contract

.

2. Choose Create Contract. 3. Choose

Overview/Items

Add Line

From Catalog

.

4. Select a service item with a hierarchical structure, and choose services.

.

This transfers the service item from SRM-MDM Catalog. 5. Enter the required data, and save the contract.

Add to Cart

Cart Preview

Transfer

8.

Procurement for Public Sector (PPS)

Procurement for Public Sector (PPS) is tailored to meet the procurement needs of public sector organizations. PPS is based on SAP Supplier Relationship Management (SAP SRM), in many cases extending and augmenting standard SAP SRM functionality to meet the demands of public sector organizations. PPS offers cost savings and improved efficiency through seamless integration between the contract management and financial processes, while complying with international procurement policies and public regulations.

Prerequisites In SAP ERP, you have activated the Enterprise Extension Public Services (EA-PS). Depending on the required functions in PPS, you have activated a selection of the following business functions: Required Function in PPS

Business Function in SAP ERP

Available From

Configurable item hierarchies

PS_GOVPROC_ITEMTYPES

SAP_APPL, SAP ERP 6.0, EHP 3

Shopping cart commitment

PS_GOVPROC_SCCMT

SAP_APPL, SAP ERP 6.0, EHP 3

Pricing arrangements

PSM_GOVPROC_PA

EA-PS in SAP ERP 6.0, EHP 3

Period of performance

PSM_GOVPROC_JFMIP

EA-PS in SAP ERP 6.0, EHP 3

Fast Pay

PSM_GOVPROC_JFMIP

EA-PS in SAP ERP 6.0, EHP 3

Acceptance period

PSM_GOVPROC_JFMIP

EA-PS in SAP ERP 6.0, EHP 3

Earmarked funds

PSM_PPS_INTEGRATION

EA-PS in SAP ERP 6.0, EHP 4

Smart number

PSM_PPS_INTEGRATION

EA-PS in SAP ERP 6.0, EHP 4

Account assignment distribution

PSM_PPS_INTEGRATION

EA-PS in SAP ERP 6.0, EHP 4

Incremental funding

PSM_PPS_INTEGRATION

EA-PS in SAP ERP 6.0, EHP 4

For more information about the individual business functions, see the documentation in the SAP ERP system. In SAP SRM, you have activated the following business functions:  SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1) 

SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1)

Integration Extended Classic Scenario PPS procurement documents are created in SAP SRM, and financial processes, such as goods receipt (GR) and invoice receipt (IR), occur in SAP ERP. Therefore, to be able to take advantage of PPS functionality, you must have SAP ERP installed on your system and activated the extended classic scenario. For more information about the extended classic scenario, see Technical Scenarios.

Note The following technical scenarios are not supported for SAP PPS: 

Classic scenario (prerequisite for the Service Procurement business scenario)



Standalone scenario



SAP SRM in one client in SAP ERP

SAP Document Builder You can use SAP Document Builder to create and manage complex procurement documents that are frequently used in public sector organizations to meet legal requirements. SAP Document Builder is a content-driven, cross-application solution powered by SAP Net Weaver. You can create complex documents, utilizing business content from the procurement application, text clauses based on legal regulations, and definable rules. Within PPS, you can create contracts, RFx documents, and purchase orders with SAP Document Builder. For more information, see the documentation for SAP Document Builder at Builder

SAP xApps

SAP Document

.

SAP Records Management SAP Records Management is a document management system that allows you to store electronic records of purchasing documents, follow-on processes, and of related documentation. It also provides central access to these electronic records at any time. For example, SAP Records Management automatically creates a record for a purchase order. In the course of the procurement process, data from goods receipts and from invoices is added to the record. Moreover, the record also contains documentation complementing the procurement data, such as contractual agreements, e-mails, or correspondence with your supplier. Thus, SAP Records Management supports you in fulfilling your requirements regarding document storage, for example audit requirements. Within PPS, electronic records can be created automatically for purchase requisitions, RFx documents, purchase orders, and contracts. The system provides navigation from procurement documents to the related electronic record, as well as from the record in SAP Records Management to the procurement document in the procurement application. SAP Records Management is part of SAP NetWeaver. To use SAP Records Management for SAP SRM, you must use an SAP ERP system (minimum SAP ERP 6.0). SAP does not support that you use the SAP Records Management that is located in the SAP SRM system. For more information, see the Configuration documentation in SAP Solution Manager under SAP SRM 7.0 EHP1 Basic Settings for SAP SRM Cross-Application Settings Integration with other SAP Components Integration with SAP Records Management

Features For an overview of the functions that are available with Procurement for Public Sector, see the following documents: 

Features of SRM, Cross-Industry Functions



Features of SRM, Procurement for Public Sector

8.1 SRM-PPS: Business Scenario Descriptions 8.1.1 Public Sourcing and Tendering

You use this business scenario to manage complex, highly-regulated, competitive RFx processes. You can create legally-compliant documents within a secure infrastructure that integrates SAP Records Management and procurement processes to fulfill audit requirements. This business scenario is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch RFx Response Submission Outside Firewall(SRM_701_SUCO_BIDDER_DECOUP). In this case, RFx respondents can create and submit their RFx responses in an SAP Supplier Relationship Management (SAP SRM) system outside the firewall of your organization. This further enhances the security of the SAP SRM system, as it prevents RFx respondents from being able to log on directly to the purchaser's instance of the SAP SRM system, which may contain other sensitive information.

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 the Scenario & Process Component List on SAP Service Marketplace at http://service.sap.com/scl. You have activated the SRM, Strategic Sourcing Innovations (SRM_SOURCING_1) business function and the Customizing switches that are mentioned in the documentation of the business processes listed below.

Process The following business processes are available: 

Prequalification of RFx Respondents



Public RFx Publishing



Tender Fee Processing



Earnest Money Deposit Handling



Two-Envelope RFx Response



Multi-Party Verification at RFx Response Opening



RFx Response Evaluation



Electronic Contract File Creation



Analyzing Public Sourcing and Tendering

8.1.1.1 Prequalification of RFx Respondents You use this business process to identify and select qualified suppliers, who are then allowed to submit RFx responses as part of a competitive procurement process. Prequalification questionnaires can be customized to include information such as compliance to required standards, demonstration of financial capability, or proof of past performance. Typically, prequalification questionnaires are used on first contact as a means of evaluating prospective RFx respondents. The suppliers’ answers are evaluated based on predefined criteria, and can be used throughout the entire sourcing cycle to support additional supplier selection needs as they arise.

Note This standard business process is not supported if you have activated the SRM, Supplier Collaboration(SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall(SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. To enable creation and submission of prequalification questionnaires in an SAP Supplier Relationship Management (SAP SRM) system outside

the firewall of your organization, you can establish a remote function call (RFC) connection between the SRM Server system outside the firewall and the purchaser's SRM Server system. Note that this is a customer enhancement.

Prerequisites You have activated the Procurement for Public Sector: Prequalification Questionnaire(PPS_701_PREQUALIF_QUEST) Customizing switch.

Process

The following business process runs in SRM Server: 1. Define prequalification criteria 2. Publish prequalification questionnaire 3. Receive supplier responses 4. Evaluate supplier responses 5. Accept or reject RFx response based on prequalification questionnaire

8.1.1.2 Public RFx Publishing You use this business process to publish public sector business opportunities that are available for response by private companies. You can publish an RFx document containing information about an opportunity according to the publication requirements of the country or region. Public sector RFx documents are usually published on a governmental or organizational Web site, or in a hardcopy format such as a journal or other periodical.

This business process is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. In this case, the published RFx is sent to the RFx respondent's SRM Server system outside the firewall using an SAP NetWeaver Process Integration (SAP NetWeaver PI) system.

Process

1. Create RFx (SRM Server) 2. Define options information (SRM Server) 3. Upload RFx from file (SRM Server) 4. Complete and save RFx (SAP Document Builder) 5. Approve publication of RFx (SRM Server)

8.1.1.3 Tender Fee Processing You use this business process when your organization requires that an RFx respondent pays a tender fee in order to download or receive a print copy of an RFx document. RFx respondents can use an online, electronic payment option to simultaneously pay the tender fee and download the RFx documents. An offline payment of the tender fee is also possible. This business process is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. In this case, RFx respondents can create and submit their RFxs responses in an SAP Supplier Relationship Management (SAP SRM) system outside the firewall of your organization.

Note If you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch, online payment of tender fees is not supported from the SRM Server systems where RFx respondents submit their responses. If you want to implement online payment, you can establish an RFC connection between the SRM Server system outside the firewall and the purchaser's SRM Server system (for recording the payment). Note that this is a customer enhancement.

Prerequisites You have activated the SRM, Strategic Sourcing Innovations (SRM_SOURCING_1) business function and the Tender Fee (SRM_701_TENDER_FEE) Customizing switch. You have created an RFx that requires the potential RFx respondent to pay a tender fee before receiving the RFx document.

Process

1. Submit tender fee (RFx respondent) (Public Sector Accounting) 2. Process tender fee (Public Sector Accounting) 3. Confirm tender fee receipt (Public Sector Accounting) 4. Download RFx (RFx respondent) (SAP SRM)

8.1.1.4 Earnest Money Deposit Handling You use this business process when your organization requires that an RFx respondent pays a deposit in order to submit an RFx response. This earnest money deposit acts as a guarantee of performance if the RFx respondent is awarded the purchase order or contract. After a contract or purchase order has been

awarded, you can refund the earnest money deposits to unsuccessful RFx respondents. The deposit of the successful respondent can be placed in accounts receivable and then returned on completion of the order or contract. This business process is not affected by the activation of the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. This is because earnest money deposits are not made online, but manually. Alternatively, the deposits can be made , for example, as bank guarantees.

Prerequisites You have activated the SRM, Strategic Sourcing Innovations (SRM_SOURCING_1) business function and theEarnest Money Deposit (SRM_701_EARNEST_MONEY_DEP) Customizing switch. You have created an RFx document that requires payment of an earnest money deposit.

Process

1. Submit earnest money deposit payment (RFx respondent) (Public Sector Accounting) 2. Process earnest money deposit (Public Sector Accounting) 3. Confirm earnest money deposit (Public Sector Accounting) 4. Submit RFx response (RFx respondent) (SRM Server) 5. Evaluate RFx responses (SRM Server) 6. Award order or contract to successful respondent (SRM Server) 7. Refund earnest money deposit to unsuccessful respondents (Public Sector Accounting) 8. Place successful respondent's earnest money deposit in accounts receivable (Public Sector Accounting)

9. Return earnest money deposit to successful respondent at end of order or contract (Public Sector Accounting)

8.1.1.5 Two-Envelope RFx Response You use this business process to create and publish RFx documents that require separate price and technical RFx responses. Typically, the technical evaluation panel is denied access to the price RFx response. This prevents the evaluation team of technical and functional reviewers from seeing the pricing and administrative data submitted by the RFx respondent. This supports the public sector practice of negotiated procurements that are conducted to give equal or more weight to non-price factors when choosing a supplier. This business process is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. In this case, RFx respondents can create and submit their technical RFx responses in an instance of cFolders that is located in the SAP Supplier Relationship Management (SAP SRM) system outside the firewall of your organization. As a result, documents are transmitted between the systems using an SAP NetWeaver Process Integration (SAP NetWeaver PI) system. This affects, for example: 

The technical RFx response that is returned to the purchaser's SRM Server system



The documents contained in a technical RFx response folder (or its subfolders) that a purchaser has created within a two-envelope RFx



The documents contained in a technical RFx response folder (or its subfolders) that an RFx respondent has created within a two-envelope RFx response

Prerequisites You have activated the SRM, Strategic Sourcing Innovations (SRM_SOURCING_1) business function and the Two-Envelope RFx Response (SRM_701_TWO_ENVELOPE) Customizing switch.

Process

1. Create RFx (PPS) (SRM Server) 2. Upload RFx from file (PPS) (SRM Server) 3. Complete and save RFx (PPS) (SAP Document Builder) 4. Approve publication of RFx (PPS) (SRM Server) 5. Submit technical RFx response (envelope 1) (SRM Server) The RFx respondent submits a technical response. 6. Submit price RFx response (envelope 2) (SRM Server) The RFx respondent submits a price RFx response.

8.1.1.6 Multi-Party Verification at RFx Response Opening You use this business process to control access to RFx responses. In order to view an RFx response, at least two parties have to log on to the system within a defined time period. These parties could be, for example, two purchasers, or a purchaser and the RFx respondent. Multi-party verification at RFx response opening helps to prevent fraud during the evaluation of RFx responses. This business process is modified if you have activated the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the Customizing switch RFx Response Submission Outside

Firewall(SRM_701_SUCO_BIDDER_DECOUP). In this case, RFx respondents cannot directly participate in the RFx response opening process, since they do not have access to the purchaser's SRM Server system.

Prerequisites You have activated the SRM, Strategic Sourcing Innovations (SRM_SOURCING_1) business function and theSimultaneous Logon at RFx Response Opening (SRM_701_SIMULTANEOUS_LOGON) Customizing switch.

Process

The following business process runs in SRM Server: 1. Simultaneous logon at RFx response opening (supplier and purchaser) 2. Simultaneous logon at RFx response opening (two government officials)

8.1.1.7 RFx Response Evaluation You use this business process to compare RFx responses from different suppliers and to decide on a supplier. The RFx responses can be displayed side-by-side allowing you to easily compare the data contained in each response. The exact evaluation procedure varies depending on the requirements of your organization and the evaluation schema used.

Prerequisites You have created an RFx in SRM Server and have received RFx responses from several RFx respondents. This business process is not affected by the activation of the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. This is because the RFx response evaluation is performed exclusively in the purchaser's SRM Server system.

Process

The following business process runs in SRM Server: 1. Evaluate RFx response 2. Accept RFx response 3. Approve RFx response

8.1.1.8 Electronic Contract File Creation You can use this business process to allow the system to create an electronic file for each contract or purchase order. This file is used as the basis for evaluation and award, the performance of the contract or purchase order, and goods receipts and payments. The file also captures versions (changes) to the contract or purchase order, closeout, and other information required by contracting agency regulations. This business process is not affected by the activation of the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. This is because the information relevant for electronic contract file creation is available in the purchaser's SRM Server system, and access to an RFx respondent's system is not relevant.

Prerequisites You have created a purchase requisition, RFx, RFx response, contract, purchase order, change version, goods receipt, invoice receipt, or closeout.

Process

The following business process runs in Application Server ABAP: 1. Capture purchase request 2. Capture RFx 3. Capture RFx response 4. Capture contract or purchase order 5. Capture contract or purchase order versions 6. Capture goods receipts 7. Capture invoice receipts 8. Capture payment information

9. Capture closeout records

Result As a result of this process, the electronic contract file contains copies of all documents (for example, purchase requisitions, RFxs, successful and unsuccessful RFx responses, contracts or purchase orders, approvals, goods receipts, invoices, and external notifications) created in the procurement process.

8.1.1.9 Analyzing Public Sourcing and Tendering You use this business process to analyze information about the way in which public sourcing and tendering is conducted. The purchasing organization can analyze procurement information and use the information to respond to management queries, ensure compliance with applicable procurement regulations, identify areas for process improvements, such as reducing procurement cycle time, and achieve savings over a large spend volume. This business process is not affected by the activation of the SRM, Supplier Collaboration (SRM_SUCO_1) business function and of the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. This is because the analyses occur exclusively in the purchaser's SRM Server system and not in the supplier's system outside the firewall.

Prerequisites You have created a purchase requisition.

Process

The following business process runs in SAP NetWeaver Business Intelligence 1. System collects data 2. View reports 3. Work with reports

8.1.2 Contract Management and Administration You can use this business scenario to allow a professional purchaser to negotiate a contract or purchase order with a supplier. This negotiation may be based on the outcome of the tendering process as described in the Public Sourcing and Tendering business scenario. Once pricing arrangements, clauses, payment, terms, and delivery conditions have been agreed upon, the contract or purchase order enters an approval workflow. Upon approval, the contract or purchase order is centrally created in SAP Supplier Relationship Management (SAP SRM). Operational purchasers can take advantage of the conditions negotiated. When users seek a specific product or service from a contract or contract-type line item in a mixed-use purchase order, a purchase order is created, which is then sent to the supplier. The supplier ships the required goods or provides the service to the designated recipient. The user then completes a goods receipt or service entry on the basis of which the supplier creates an invoice. The invoice is then paid by the organization in charge of payment. Additionally, the system automatically creates an electronic contract file that contains all procurement documents created. After award, any contract or purchase order modifications, as well as their supporting documentation, are also automatically added to the electronic contract file. The file continues to capture contractual information through closeout.

Prerequisites Process The following business processes are available: 

Complex Contract Creation (SAP Document Builder)



Guaranteed Minimum Definition



Closeout Execution



Contract Tracking and Monitoring



Electronic Contract File Creation



Post-Award Procedure



Options Definition



Incremental Funding

8.1.2.1 Complex Contract Creation with SAP Document Builder You can use this business process to create a contract from a successful bid and solicitation. This process allows the incorporation of clauses required by public sector regulations using SAP Document Builder. You then approve a contract or purchase order. In this process, you fulfill public sector-specific financial obligations, notify unsuccessful bidders, and report award of contracts to external public sector entities.

Prerequisites A complex contract is created in this process to fulfill a requirement identified in the Public Sourcing and Tendering scenario.

Process

1. Create contract (SRM Server) 2. Engage SAP Document Builder (SAP Document Builder) 3. Select terms and conditions (SAP Document Builder)

4. Negotiate contracts (SRM Server) 5. Renew contract (SRM Server) 6. Define contract hierarchies (SRM Server) 7. Define supplier hierarchies (SRM Server) 8. Define product category hierarchies (SRM Server) 9. Define discounts based on released values (SRM Server) 10. Define quota arrangements (SRM Server) 11. Execute contracts (SRM Server)

Result The result of this business process is the creation and execution of a legally compliant contract.

8.1.2.2 Guaranteed Minimum Definition You can use this business process to ensure that a contract-specified minimum order amount is awarded to the supplier during the course of the contract, or to commit, obligate, and pay the supplier the difference between the guaranteed minimum amount and the amount of actual orders at contract completion.

Process

1. Determine account assignment for guaranteed minimum amount (SRM Server) 2. Enter guaranteed minimum amount (SRM Server) 3. Monitor value of release orders against contract or purchase order (SRM Server)

4. Verify whether guaranteed minimum has been met (SRM Server) 5. Process payment for unmet minimum (SAP ECC)

Result The result of this business process is that the supplier receives a contract-specified order amount.

8.1.2.3 Closeout Execution You can use this business process to ensure that all administrative and contractual requirements mandated by the public sector are fulfilled after the goods or services have been received and the supplier has been paid upon completion of a contract or purchase order.

Prerequisites All contractual requirements have been fulfilled, good and services have been received, and the supplier has been paid.

Process

The following business process runs in SRM Server: 1. Identify contract or purchase order eligible for closeout 2. Close out contract or purchase order

Result The result of this business process is to help ensure that appropriate legal requirements for closeout of a contract or purchase order are fulfilled.

8.1.2.4 Contract Tracking and Monitoring You can use this business process to allow the business user and professional purchaser to track the status of a requirement, from requirements description through the award and post-award of a contract.

Process

1. Send and receive alerts (SRM Server) 2. Process reports in Business Warehouse (SAP NetWeaver: Business Intelligence) 3. Analyze procurement data (SAP NetWeaver: Business Intelligence) 4. Perform operational reporting (SAP NetWeaver: Business Intelligence) 5. Perform strategic reporting (SAP NetWeaver: Business Intelligence)

Result The result of this business process is active and timely tracking information about a requirement.

8.1.2.5 Electronic Contract File Creation You can use this business process to allow the system to create an electronic file for each contract or purchase order. This file is used as the basis for evaluation and award, the performance of the contract or purchase order, and goods receipts and payments. The file also captures versions (changes) to the contract or purchase order, closeout, and other information required by contracting agency regulations. This business process is not affected by the activation of the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP) Customizing switch. This is because the information relevant for electronic contract file creation is available in the purchaser's SRM Server system, and access to an RFx respondent's system is not relevant.

Prerequisites

You have created a purchase requisition, RFx, RFx response, contract, purchase order, change version, goods receipt, invoice receipt, or closeout.

Process

The following business process runs in Application Server ABAP: 1. Capture purchase request 2. Capture RFx 3. Capture RFx response 4. Capture contract or purchase order 5. Capture contract or purchase order versions

6. Capture goods receipts 7. Capture invoice receipts 8. Capture payment information 9. Capture closeout records

Result As a result of this process, the electronic contract file contains copies of all documents (for example, purchase requisitions, RFxs, successful and unsuccessful RFx responses, contracts or purchase orders, approvals, goods receipts, invoices, and external notifications) created in the procurement process.

8.1.2.6 Post-Award Procedure You can use this business process to respond to requests for post-award contract and purchase order change versions. Non-transactional information such as e-mails and records of meetings and telephone calls are associated with the contract or purchase order and stored as part of the electronic file. A record of all information about the incident, including reviews, approvals, and modifications, is linked to the original contract or purchase order and accessible as part of the electronic contract file.

Process

1. Receive request for post-award contractual action (Application Server ABAP) 2. Initiate a case referencing appropriate contract or purchase order (Application Server ABAP) 3. Route case as necessary for approval (SAP ECC) 4. Create change version (SRM Server)

5. Release change version (SRM Server)

Result The result of this business process is the creation of a change version of a contract or purchase order.

8.1.2.7 Options Definition You can use this business process to include optional line items in contracts and purchase orders.

Prerequisites You have a requirement that includes optional line items.

Process

The following business process runs in SRM Server: 1. Create contract or purchase order with options information 2. Process contract or purchase order 3. Receive notification of option lines due for exercise

4. Select contract or purchase order 5. Change contract or purchase order 6. Exercise option 7. Approve contract or purchase order version 8. Send contract or purchase order version to supplier

Result The result of this business process is a contract or purchase order version that activates optional line items.

8.1.2.8 Incremental Funding You can use this business process to award a contract or purchase order for an amount greater than the funding that is currently available. This business process supports the public sector practice of awarding contracts for multi-year efforts while providing actual funding as appropriated funds are approved.

Prerequisites You have created a purchase request.

Process

The following business process runs in SRM Server: 1. Create incrementally funded order 2. Issue modification to increase funding

Result The result of this business process is a modification to a contract or purchase order that increases funding.

8.1.3 Operational Procurement You can use this business scenario to process the requirements that have been created and released for procurement (for example, demands for spare parts coming from plant maintenance, demands for raw materials determined in a planning run, or requests for office supplies entered by an employee.) Requirements are transferred to the purchasing department as purchase requisitions. They are presented to the purchaser in work lists that support him in converting the requisitions into contracts or purchase orders. The purchaser can check the source of supply and the price and conditions that have been assigned to a requisition and start a request for quotation or bidding process if necessary. Release procedures are available to control critical procurement processes.

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

Process The following business processes are available: 

Complex Sourcing



Exercise Options



Electronic Contract File Creation



Budget Integration



Order Tracking



Acceptance at Origin for PPS



Acknowledgement and Delivery



Invoice Verification



Selective Release



Workload Prioritization



Workload Redistribution

Result As a result of this scenario, requirements are converted into contracts or purchase orders. Supervisors can prioritize workload or redistribute workload among purchasers, depending upon personnel availability. Purchase orders are acknowledged and invoices are verified, and purchase orders are processed for payment.

8.1.3.1 Complex Sourcing You can use this business process to evaluate business user requirements and automatically create purchase orders against existing long-term contracts, automatically create RFx responses, or route the requirements to the purchaser for manual RFx and contract or purchase order creation.

Process

1. Create shopping cart (SRM Server) or create purchase requisition (SAP ECC) 2. Search for products or services (SRM Server) 3. Select service agent (SRM Server) 4. Select items and add to shopping cart (SRM Server) 5. Display overview (SRM Server) 6. Display account assignment (SRM Server) 7. Order shopping cart (SRM Server) 8. Check shopping cart status (SRM Server) 9. Approve shopping cart (SRM Server) 10. Commit funds (Central Applications) 11. Search for source of supply (SRM Server) 12. Create RFx (SRM Server) 13. Engage Document Builder (SAP Document Builder) 14. Select terms and conditions (SAP Document Builder) 15. Publish RFx (SRM Server) 16. Receive supplier responses (SRM Server) 17. Evaluate supplier responses (SRM Server) 18. Create contract or purchase order document (SRM Server) 19. Engage document builder (SAP Document Builder) 20. Select terms and conditions (SAP Document Builder) 21. Approve contract or purchase order (SRM Server) 22. Send contract or purchase order to supplier (SRM Server)

Result As a result of this business process, requirements are evaluated. Depending on criteria defined by the public sector customers, such as material group, requirement value, or delivery schedule, purchase orders can either be automatically created against existing long-term contracts and RFxs are automatically created, or requirements are routed to the purchaser for manual creation of RFxs and contracts or purchase orders.

8.1.3.2 Exercise Options This business process is used to exercise optional contract or purchase order line items.

Prerequisites You have created a contract or purchase order with optional line items in SAP SRM.

Process

1. Receive notification of optional lines due for exercising (SRM Server) 2. Select purchase order (SRM Server) 3. Change purchase order (SRM Server) 4. Exercise option (SRM Server) 5. Approve purchase order version (SRM Server) 6. Send purchase order version to supplier (SRM Server)

Result Change versions of the optional lines of the purchase orders and contracts are approved and transmitted to the supplier who acknowledges receipt of the change version and delivers the optional items.

8.1.3.3 Electronic Contract File Creation You can use this business process to allow the system to create an electronic file for each contract or purchase order. This file is used as the basis for evaluation and award, the performance of the contract or purchase order, and goods receipts and payments. The file also captures versions (changes) to the contract or purchase order, closeout, and other information required by contracting agency regulations. This business process is not affected by the activation of the SRM, Supplier Collaboration (SRM_SUCO_1) business function and the RFx Response Submission Outside Firewall (SRM_701_SUCO_BIDDER_DECOUP)

Customizing switch. This is because the information relevant for electronic contract file creation is available in the purchaser's SRM Server system, and access to an RFx respondent's system is not relevant.

Prerequisites You have created a purchase requisition, RFx, RFx response, contract, purchase order, change version, goods receipt, invoice receipt, or closeout.

Process

The following business process runs in Application Server ABAP: 1. Capture purchase request

2. Capture RFx 3. Capture RFx response 4. Capture contract or purchase order 5. Capture contract or purchase order versions 6. Capture goods receipts 7. Capture invoice receipts 8. Capture payment information 9. Capture closeout records

Result As a result of this process, the electronic contract file contains copies of all documents (for example, purchase requisitions, RFxs, successful and unsuccessful RFx responses, contracts or purchase orders, approvals, goods receipts, invoices, and external notifications) created in the procurement process.

8.1.3.4 Budget Integration You can use this business process to achieve real-time integration of the procurement process with Funds Management. The Funds Management data is updated automatically.

Prerequisites You have created a purchase requisition in SAP ERP and it has been replicated to SAP SRM, or you have created a shopping cart in SAP SRM.

Process

The following business process runs in SAP ECC: 1. Create commitment of purchase request 2. Create obligation at order release

3. Clear commitment 4. Create expenditure

Result Purchase requisitions, shopping carts, contracts with guaranteed minimum, purchase orders, invoices, and payments automatically update the respective budget.

8.1.3.5 Order Tracking You can use this business process to enable users to track the status of a requirement throughout the procurement process, from requisition to RFx to order, and subsequently through the receipt and invoicing transactions.

Prerequisites You have created a purchase requisition in SAP ECC, and it has been replicated to SAP SRM, or you have created a shopping cart in SAP SRM.

Process

1. Search for purchase requisition (SRM Server) 2. View purchase requisition status (SRM Server) 3. View purchase order status in purchase order history (SRM Server)

8.1.3.6 Acceptance at Origin for PPS You can use this business process to support the procedure in which a public sector entity accepts goods at the supplier's plant prior to their receipt, testing, and final acceptance at the public sector requester's location. The risk of losing goods, usually assumed by the supplier, is assumed by the public sector entity, especially when the risk of loss is expected to be high (for example, in a war zone or disaster area.)

Prerequisites

You have created a purchase order in SAP SRM which specifies acceptance at origin.

Process

The following business process runs in SAP ECC: 1. Post goods receipt at origin 2. Cancel goods receipt at origin

8.1.3.7 Acknowledgement and Delivery You can use this business process to document acknowledgement and delivery of a purchase order.

Prerequisites You have created a purchase order in SAP SRM.

Process

The following business process runs in SAP ECC: 1. Post goods receipt 2. Cancel goods receipt

Result

As a result of this business process, purchase orders are acknowledged by the supplier and delivery is documented. Acknowledgement and delivery form the basis for updating of SAP Financials, the stock situation, and the valuation. Delivery can also invoke follow-on processes in Warehouse Management and Quality Management.

8.1.3.8 Invoice Verification You can use this business process to carry out follow-on activities to purchase order. Invoice verification is the basis for updating of conditions and quantities between purchase order, goods receipt, and invoice.

Prerequisites You have created a purchase order in SAP SRM for which a vendor has submitted an invoice.

Process

The following business process runs in SAP ECC: 1. Receive invoice 2. Enter invoice 3. Verify invoice 4. Approve invoice

Result Invoice verification is the basis for updating accounts payable and is followed by the funds release process and payment.

8.1.3.9 Selective Release You can use this business process to allow a public sector entity to release orders (and obligate funds), based on a number of customer-defined rules which encompass the end of the accounting period, budget availability, the value of the order, and the relative priority of the requirement.

Prerequisites You have created a purchase order in SAP SRM which meets the criteria set in Customizing for selective release.

Process

1. Create purchase order (SRM Server) 2. Block purchase order based on selective release criteria (SRM Server) 3. Release orders via selective release (SRM Server)

8.1.3.10 Workload Prioritization You can use this business process to allow for prioritizing requirements. The prioritization determines the sequence in which requirements will be converted to purchase orders.

Prerequisites You have created a purchase requisition in SAP ECC, and it has been replicated to SAP SRM, or you have created a shopping cart in SAP SRM.

Process

1. Review requirements in sourcing cockpit (supervisor) (SRM Server) 2. Prioritize workload in sourcing cockpit (SRM Server)

8.1.3.11 Workload Redistribution You can use this business process to allow a manager to transfer workload from one purchaser to another, based upon workload or personnel availability.

Prerequisites You have created a purchase requisition in SAP ECC, and it has been replicated to SAP SRM Server, or you have created a shopping cart in SAP SRM Server.

Process

1. Review requirements in sourcing cockpit (supervisor) (SRM Server) 2. Reallocate requirements based upon workload or availability of purchasers (supervisor) (SRM Server)

8.1.4 Procurement Services This business scenario has two variants: 

Procurement Services with Automated Sourcing



Procurement Services with Manual Sourcing

8.1.4.1 Procurement Services (Automated Sourcing) You can use this business scenario to satisfy requirements from external customers. In this scenario the purchasing agency satisfies the requirements either by delivery from stock, by creation of a release order against an existing contract, or by creation of a purchase order.

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

Process The following business processes are available: 

Processing of External Requirements (Automated Sourcing)



Third-Party Processing



Inventory Management and Delivery from Stock

Result The result of this Procurement Services scenario is the satisfaction of requirements from external customers.

8.1.4.1.1 Processing of External Requirements (Automated Sourcing) You can use this business process to satisfy material requirements planning (MRP) or sales orders that create purchase requisitions. This MRP can take place in an SAP system or an external planning system. The requisitions are loaded into SAP SRM via an interface. The purchase requisitions are sourced against valid sources of supply. The processing of release orders against existing long-term contracts and the creation of purchase orders are automatic.

Process

1. Process sales orders (SAP ECC) 2. Create or process purchase requisitions (SAP ECC) 3. Release purchase requisitions (SAP ECC)

4. Transfer requisitions to SAP SRM (SAP ECC) 5. Start sourcing (automatic) (SAP SRM Server) 6. Create purchase order (automatic) (SAP SRM Server)

Result The result of this process is the successful sourcing of requirements from external customers.

8.1.4.1.2 Third Party Processing You can use this business process when requirements from external customers are ordered from a supplier, but delivered directly to the customer. This process is used for non-stocked items. A third party purchase requisition is created out of a sales order. The purchase requisition can either be sourced against an existing long term contract or processed via RFx. RFx responses are evaluated to create a purchase order. The goods are delivered directly from the supplier to the external customer. The goods receipt is processed by the external customer and confirmed by the purchasing agency. The invoice is sent from the supplier to the purchasing agency where it is processed for payment.

Process

1. Process sales orders (SAP ECC) 2. Create or process purchase requisitions (SAP ECC) 3. Release purchase requisitions (SAP ECC) 4. Transfer requisitions to SAP SRM (SAP ECC) 5. Start sourcing (SRM Server) 6. Search for source of supply (SRM Server) 7. Create RFx from sourcing (SRM Server) 8. Engage SAP Document Builder (SAP Document Builder) 9. Select clauses, terms and conditions (SAP Document Builder) 10. Publish RFx (SRM Server) 11. Submit RFx response (supplier) (SRM Server) 12. Receive RFx responses (SRM Server) 13. Evaluate RFx responses (SRM Server) 14. Select successful RFx response (SRM Server) 15. Process purchase order (SRM Server) 16. Confirm goods receipt at third party location (SAP ECC) 17. Create invoice (SAP ECC) 18. Process payment (SAP ECC)

8.1.4.1.3 Inventory Management and Delivery from Stock You can use this business process to support management of the inventory and the delivery of goods to customers to fulfill material reservations.

Process

The following business process runs in ECC: 1. Create outbound delivery 2. Issue goods from stock

8.2 Business Function SRM, Cross-Industry Functions Technical Data Technical Name of Business Function

SRM_CROSS_INDUSTRY_1

Type of Business Function

Enterprise Business Function

Available From

SAP enhancement package 2 for SAP SRM 7.0

Technical Usage

SRM

Application Component

SRM-EBP-CRI

Required Business Function

SRM, Procurement for Public Sector(SRM_PUBLIC_SECTOR_1)

Incompatible Business Function You can use this business function to streamline complex procurement processes across all industries. For more information about the individual functions, see Features of SRM, Cross-Industry Functions.

Integration Note You cannot revert this business function.

Note You can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions.

Note The business function SAP SRM Procurement for Public Sector Basis (/SAPSRM/SRM_CROSS_INDUSTRIES), which is used in lower releases, has become obsolete in the current release. You can neither activate it nor deactivate it.

Prerequisites 



You have installed the following components as of the version mentioned: Type of Component

Component

Software Component

SRM_SERVER 702

Required for the Following Features Only

You have implemented the extended classic scenario. Other SAP SRM technical scenarios (classic, standalone, and SAP SRM in one client in SAP ERP) are not supported for PPS.



You are using SAP ERP 6.0 enhancement package 4 or higher.



You have activated the relevant business functions in SAP ERP. For more information, see Procurement for Public Sector (PPS).

8.3 Features of SRM, Cross-Industry Functions The business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1) allows you to use the following functions: 

SAP Document Builder Integration



Sourcing Rules



Smart Numbering



Line Item Hierarchies



Business Partner Grouping for Multiple Suppliers



User-Specified Status and Closeout



Period of Performance



Maximum Quantity per Period



Pricing Arrangements



Delivery Priorities



Reason Codes



Acceptance at Origin



Subcontracting



Supplier-Specific Unit of Measure



Manufacturer Part Number



Phased Deliveries



Options



Order Types and Mixed-Use Purchase Orders



Financial Commitment for Shopping Carts



Retention



Down Payments



Payment Plans



Thresholds



Cancellation of Purchase Orders at Header Level



Prequalification of Suppliers



Mass Change and Novation

More Information For more information, see the release notes on SAP Service Marketplace athttp://service.sap.com/support under Release and Upgrade Info Solutions SAP Supplier Relationship Management (SAP SRM)

Release Notes

SAP

Release Notes SAP Enhancement Package 2 for

SRM 7.0 .

8.3.1SAP Document Builder Integration

You use this function to attach documents created in SAP Document Builder to Procurement for Public Sector (PPS) purchasing documents. These documents are automatically attached when you release the purchasing documents. Additionally, you can import PPS data into SAP Document Builder documents, such as product name, price, name of business partner, and address of business partner. This is done in the background when you save your document.

Asynchronous integration Asynchronous integration consists in mapping PPS and SAP Document Builder messages on the Exchange Infrastructure (XI) server. You can monitor the messages in transaction Integration Engine – Monitoring(SXMB_MONI).

Note This step is optional.

Synchronous integration Synchronous integration consists in generating client proxies in the PPS and SAP Document Builder systems, and a Web Services Description Language (WSDL) file in the SAP Document Builder system in Customizing under Cross-Application Components Document Builder Basic Functions Variables Information Systems Display Output as WSDL

. You use this file, which contains an XML schema

describing the structure of a document, to exchange data between PPS and SAP Document Builder. In case of changes to Customizing, you must generate the WDSL file and the client proxy client again in the PPS system.

Integration This function enables integration with SAP Document Builder.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions.  

You are using SAP Document Builder 2.0 or higher. You have created remote function calls in transaction RFC Destinations (Display/Maintain) (SM59) to connect the PPS and SAP Document Builder systems to each other.



You have performed the following activities in Customizing for SAP Supplier Relationship Management: o SRM Server Cross-Industry Functions Integration with SAP Document Builder Define Uniform Resource Locators for SAP Document Builder o

SRM Server Cross-Industry Functions Integration with SAP Document Builder Define Reference Data

o

SRM Server Cross-Industry Functions Integration with SAP Document Builder Map fields

o

SRM Server Cross-Industry Functions Customer Enhancements (BAdIs) Document Builder Set Up Integration with SAP Document Builder

Integration with SAP

8.3.2 Sourcing Rules You use this function to define customer-specific sourcing rules in addition to the standard ones to determine sources of supply in SAP Supplier Relationship Management (SAP SRM). You implement customer-specific sourcing rules with Business Add-In Implement Sourcing Rules(/SAPPSSRM/SOS_BADI), which you can find in Customizing for SAP Supplier Relationship Management under

SRM Server

Rules Implement Sourcing Rules

Cross-Industry Functions

Customer Enhancements (BAdIs) Sourcing

. You can define sourcing rules either in ABAP or using Formula Builder.

You can implement additional checks using criteria such as delivery priority and contract type and assign a message to be displayed in the Sourcing application. If you decide to use the Formula Builder, the parameters of the interface method are used as the available fields in Formula Builder. To extend Formula Builder with user-defined functions, you must implement Business Add-In Appl. Specific Functions for Formula Builder Method Implem. (METH_FOBU_CONNECTOR) and define a new class. The related implementation is /SAPPSSRM/SOS_FOBU_I, the related implementing class /SAPPSSRM/CL_IM_SOS_FOBU_I.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions.

8.3.3 Smart Numbering This function enables the generation of smart numbers (formerly called ―long procurement numbers‖) as identifiers for SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS) procurement documents. Smart numbers are generated by the system for purchase orders (POs), RFxs, and contracts.

Integration When you create a PO in PPS, the smart number generated on the PO is transferred to the replicated PO in SAP ERP. Smart numbers are also displayed on goods receipts (GRs) and invoice receipts (IRs) in SAP ERP.

Prerequisites In Customizing for SAP ERP, you have done the following:  You have activated the business function PSM, Additional Functions in SAP SRM and PPS(PSM_PPS_INTEGRATION). 

You have activated smart number and extended smart number in Customizing for Public Sector

Managementunder Procurement for Public Sector Activate Functions for Procurement for Public Sector . You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. In Customizing for SAP Supplier Relationship Management, you have done the following:



You have defined a smart numbering scheme under Attributes for Purchasing Documents



Smart Numbering

SRM Server

Cross-Industry Functions

Define Smart Numbering Scheme

You have defined customer-specific organizational IDs under

SRM Server Cross-Industry

Functions Attributes for Purchasing Documents Smart Numbering Define Customer-Specific Settings

Features Smart numbers are highly configurable and can contain organizational, temporal, or factual data that relates to the procurement document. You can define smart numbering schemes by process or by transaction type. If you define a smart numbering scheme for the process of creating procurement documents, a new serial number is generated with each newly created document. If you assign a smart numbering scheme to the change process, a new serial number is generated with each approved document change. If you define a smart numbering scheme based on transaction type, for example, purchase order type or business-to-business (B2B) event type, you first need to create distinct transaction types in Customizing for Supplier Relationship Management under SRM Server Cross-Application Basic Settings Define Transaction Types

8.3.4 Line Item Hierarchies This function provides customizable line item hierarchies for SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS) procurement documents. To customize hierarchies, you first define public sector item types (PS item types), which are attributes at line item level or subline item level that control business and follow-on processes for line items in a procurement document. You then assign item types to a hierarchy template, thereby determining how a hierarchy is structured.

Integration The following features are available in SAP ERP purchase orders: 

External document numbers



External item numbers



Complete hierarchy information



Service lines



Selectable mapping of services, either as individual or packed



Numbering compatible with financial issues

The following features are available in SAP ERP Goods Receipts (GRs), Invoice Verifications, and Service Entry Sheets: 

External document number



External item number



Complete hierarchy information

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. In Customizing for SAP Supplier Relationship Management , you have done the following:



You have defined public sector item types and hierarchy templates and configured data set visibility under SRM Server Cross-Industry Functions Attributes for Purchasing Documents Public Sector Item Type



Define Hierarchy Templates and Assign Transaction Types .

You have defined rollup and rolldown rules for your procurement documents under Cross-Industry Functions Attributes for Purchasing Documents

SRM Server

Public Sector Item Type Define Rollup and

Rolldown Rules . In Customizing for SAP ERP, you have activated the business function PS, Configurable Item Hierarchies in PPS(PS_GOVPROC_ITEMTYPES).

Features Configurable hierarchies make it possible to reflect complex procurement documents the way they were written. The hierarchies are flexible, allowing the control of follow-on functions at line item level. Flexibility in hierarchies is made possible by defining PS item types. PS item types, for example, material, outline, and service item types, can be customized to control business and follow-on processes in a document. You can use different item types in a procurement document depending on the hierarchy template you choose for the document. Item types control the following: 

Field visibility and enablement on item level (for example, accounting fields are visible but not enabled for an outline item)



Activation of sets (for example, partners and attachments)



Position of line items in a hierarchy



Rollup and rolldown of fields



Goods receipt and invoice receipt processes



Mapping of line items to SAP ERP



Whether line items are functional or statistical

Caution If you assign the item type Outline to a line item in a procurement document, the item type becomes static, meaning you can no longer change the item type to Material or Service.

Note Once a procurement document has been approved and follow-on documents have been created, you cannot change an item type.

Statistical Line Items and Subline Items Statistical line and subline items are purely informational and have no relevance for goods receipt or invoice receipt. An outline line item is an example of a statistical line item. It is possible to customize statistical line items so that they provide, for example, information about price and quantity; however, this information has no influence on valuation or back-end processes.

Functional Line and Subline Items Functional line and subline items provide quantity, price, and currency information in a procurement document. Material and service line items are examples of functional line items. Functional line items trigger goods receipts and invoice receipts and pertain to financial processes.

Rollup and Rolldown of Values You can customize hierarchies in procurement documents to adhere to customizable rollup and rolldown rules for values and fields in the hierarchy. Fields and sets can be rolled down from a higher-level statistical line item to a lower-level line item in the hierarchy. Values can also be rolled up from lower-level line items to higher-level statistical line items. Because rolling up involves summing up the information, only values and quantities can be rolled up. The system does not allow you to change any value that has been rolled up. The system ensures that the hierarchies conform to the rollup and rolldown rules that you define for and apply to your procurement documents.

8.3.5 Business Partner Grouping for Multiple Suppliers You can use this function in SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS), to create contracts or purchase orders with more than one supplier. You can include a main supplier or legal representative, whom you always pay directly, and additional suppliers, whom you can pay either directly or via the main supplier. All suppliers are listed as business partners in your document, and you can specify the data at header or at item level, depending on your Customizing settings.

Example In construction projects, it is common practice that you cooperate with a main supplier, also referred to as ―main contractor‖, who works with several additional suppliers, also referred to as ―co-contractors ‖or ―subcontractors‖. For each line item in a contract or purchase order, you can list all suppliers that are involved in delivering the product or service, and you can specify whether they are paid directly or via the main supplier.

Integration You can use this function in the following business scenarios: 

Contract Management and Administration



Operational Procurement



Procurement Services

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. In addition, you have done the following: In Customizing for SAP SRM 

Defined partner functions in SAP SRM for suppliers with and without direct payment, under Server Cross-Application Basic Settings Define Partner Functions



SRM

.

Created one or several partner grouping schemas for these partner functions and mapped the schema(s) to transaction types under SRM Server Cross-Industry Functions Attributes for Purchasing

Documents Partner Grouping for Multiple Suppliers

Define Partner Grouping Schema and Map to

Transaction Types . 

Mapped the SAP SRM partner functions to the SAP ERP partner roles (defined in SAP ERP Customizing, see below) under SRM Server Cross-Industry Functions Attributes for Purchasing

Documents Partner Grouping for Multiple Suppliers In Customizing for SAP ERP 

Created partner roles that correspond to the partner functions in SAP SRM under Management Purchasing

 

Partner Determination

Materials Management

Settings in Vendor Master Record

Define Partner Schemas .

.

Materials

Partner Roles Define Partner Roles

Created partner schemas under

.

Purchasing Partner Determination

Allowed the partner roles in SAP ERP to receive direct payment under Logistics Invoice Verification



Map Partner Function to Partner Role

Partner

Materials Management

Incoming Invoice Define Partner Role as Allowed Payee .

Configured the corresponding error or warning messages (messages 776 and 777) under Management Logistics Invoice Verification

Define Attributes of System Messages

Materials

.

You have also implemented the following BAdIs that enable multi-supplier functions (known as ―multivendor functions‖ in SAP ERP) for SAP ERP purchase orders, goods receipts, and for Logistics Invoice Verification (LIV). BAdIs in SAP SRM  BAdI BBP_ECS_PO_OUT_BADI Exports the purchase order from SAP SRM and hands it over to the BAPI ME_BAPI_PO_CUST. BAdIs in SAP ERP  BAPI ME_BAPI_PO_CUST 

Creates the purchase order in SAP ERP. BAdI ME_BAPI_PO_IBS Enables and checks the multi-vendor functions in the SAP ERP purchase order, creates the BAPI, and



triggers the follow-on processing. BAdI ME_PROCESS_PO_CUST Processes the purchase order in SAP ERP, enables the partner screens at line item level, and



displays the partners. BAdI ME_GUI_PO_CUST



Enables the partner screens at line item level and displays the partners. BAdI MB_MIGO_BADI Reads the partners from header or item and enables the popup for selecting the partner in transaction Goods Movement (MIGO).



BAdI MRM_PARTNER_CHECK Checks if the partners on the line items of purchase orders are the same partners to whom the invoice

is paid. For more information, see SAP Solution Manager under current release>, PPS

Business Partner Grouping

SAP SRM Configuration

SAP SRM 150 Bottles

Purchase Order without Assignment to Central Contract in SAP SRM You can maintain supplier-specific UoM and conversion factors for a purchase order that is not assigned to a central contract in SAP SRM. You do this by creating a purchase requisition in SAP ERP and distributing it to the SAP SRM system as an external requirement. Using the purchase requisition, you then create a purchase order with a line item by selecting a product for which the UoM and conversion factor has already been defined. You can change these values and send the purchase order for approval.

8.3.15 Manufacturer Part Number You can use this function to inform your suppliers, through a purchase order, which manufacturers you wish to use in the procurement of materials. You can also include the manufacturer part number and description in the purchase order to provide the supplier with specific information about the parts that you want to procure. This ensures that you get the quality of materials you want from your preferred source. In SAP Supplier Relationship Management the manufacturer part number information is enabled on the item level for RFxs, contracts, External Requirement documents, sourcing, and purchasing orders.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions.

Features This function contains the following features:

Creating Sales Orders and Purchase Requisitions The system transfers purchase requisition data from SAP ERP to SAP SRM using external requirements based on Manufacturer Part Number (MPN) information. The external requirement contains information about the manufacturer and manufacturer part number which is transferred to SAP SRM.

Maintaining Contracts When maintaining contracts the information about manufacturer and manufacturer part number must be part of contract item data. The SAP SRM system fills in the information about the manufacturer and MPN on the contract item level and search help is available for both manufacturer and MPN fields to make searching easier. Once a manufacturer part number has been entered or selected, the corresponding SAP SRM short text and product number is displayed.

Maintaining Purchase Orders When manually maintaining a purchase order the MPN data has to be correct. The SAP SRM system fills in the data for manufacturer and manufacturer part number on purchase order item level and enables search help for both manufacturer and manufacturer part number fields. Once a manufacturer part number has been entered or selected, the corresponding short text and product number is displayed.

Sourcing The SAP SRM system provides the definition and development of sourcing rules that process manufacturer and manufacturer part number information.

Purchase Order Replication If goods receipt and invoice receipt take place in SAP ERP, the corresponding purchase order is created automatically by replication from the SAP SRM system. The replication takes place when purchase order is released and approved in the SAP SRM system.

Rfx The user can manually start the RFx process if no contract exists for the MPN. The RFx document has to be enabled to copy the information about MPN and manufacturer on line item level. The SAP SRM system fills the data fields for manufacturer and manufacturer part number on RFx item level. The SAP SRM system enables search help for both manufacturer and manufacturer part number fields. Once a manufacturer part number has been entered or selected, the corresponding SAP SRM short text and product number are displayed.

8.3.16 Phased Deliveries You use this function to make delivery schedules for material items. In Procurement for Public Sector, schedule lines are available in purchase orders, RFxs, and RFx responses.

Note The delivery schedule unit must be identical to the line item schedule unit.

Integration In SAP ERP, delivery schedules and good receipts are used. Purchase order delivery schedules are automatically updated in SAP ERP.

Prerequisites

You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions.

Features You can enter, change, and delete delivery dates in Procurement for Public Sector (PPS). You can generate delivery dates using Business Add-In Exit to Change Schedule Line (BBP_PD_SDLN_BADI).

Example You can spread the delivery of 1,000 searchlights as follows: 

Line item 1: 600 searchlights to be delivered on October 1



Line item 2: 300 searchlights to be delivered on November 1



Line item 3: 100 searchlights to be delivered on December 1

8.3.17 Options You can use options, that is, optional line items, to specify purchase details for a product or service when you want to make the final purchase decision at a later date. An optional line item in an SAP SRM, Procurement for Public Sector (PPS) purchasing document allows you to stipulate the details necessary for ordering the item, for example, quantity, price, and conditions. However, you can decide whether or not to exercise the option later, depending on market or business conditions. The prices and conditions specified when creating the line items still apply when you exercise the option. By including optional line items with standard line items in the same procurement document, you can bundle the purchase of goods and services that logically belong together, even if you have not yet made a purchasing decision for all items. You use optional line items in the following cases: 

You want to order a service over a certain period of time and you want to allow for extending the timeline later. However, you want the price and conditions to apply that were agreed on when ordering the first period of the service delivery.

Example You want to order a certain number of language classes for your employees. If necessary, you want to extend the training at a similarly favorable price in the future. 

You want to order some goods or services only if you are satisfied with the delivery of another line item.

Example You want to build a low-energy office building. You order a preliminary design of the building from several specialized construction companies. Your orders include optional lines for the actual construction of the building. After evaluating the preliminary design, you can exercise the options to order from the company who submitted the most suitable preliminary design. As a purchaser, you can use optional line items in the following ways:



If you include options in purchase orders, you can later exercise the options to order the goods or services. The optional line items are ordered as soon as the period of performance starts.



If you include surge options in purchase orders, you can later create release orders against the optional line items.



If you include options in contracts, you can later create release orders against the optional line items.

Note Purchasing documents cannot consist exclusively of optional line items, they must always contain at least onestandard line item that you order definitely.

Integration You can use this function in the following business scenarios:  Public Sourcing and Tendering 

Contract Management and Administration



Operational Procurement



Procurement Services

Replication of Option Data to the SAP ERP Back End Data for optional line items in purchase orders is replicated to the SAP ERP back-end system when an optional line item is activated and ordered in the SAP SRM system. At this stage, the corresponding purchase order in the back end is updated. The system uses the purchase order in the SAP ERP back end to start follow-on processes, such as: 

Transmission of data to the supplier



Funds reservation



Goods receipt



Invoice receipt

Data for optional line items in contracts is not replicated to the SAP ERP back-end system. Only the purchase order that is used as a release order for goods or services is replicated.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. To use optional line items in your purchasing documents, you have done the following in Customizing for SAP Supplier Relationship Management under SRM Server Cross-Industry Functions Application Settings Options : 

You have specified for which transaction types users can create optional line items. You do this under Allow Optional Line Items.



You have scheduled the options handler report to perform automatic status updates for optional line items. You do this under Schedule Options Handler Report.



You have defined whether to include the value of optional line items in the header values of a procurement document. You do this under Include Options in Header Values.



You have considered implementing Business Add-Ins (BAdIs) that allow you to do the following: o Relate Option Data to Other Data of Business Process You use this BAdI to relate certain data of an optional line item to each other, for example, the o

exercise period of a line item to its period of performance. Limit Non-Optional Lines on Purchase Order and Contract

You implement the BAdIs in Customizing for SAP Supplier Relationship Management under Server Cross-Industry Functions

SRM

Customer Enhancements (BAdIs) Options .

Features Options have the following features:

Availability in Procurement Documents You can create optional line items in the following procurement documents: 

RFx



Contract



Purchase order



Shopping cart

Note o

You can define optional line items only in the shopping cart (professional), not in the shopping cart (wizard).

o

For optional line items in a shopping cart, you must specify an option reference item. This is a technical prerequisite for the sourcing process.

Exercise Period By specifying an exercise period for an optional line item that starts before the period of performance of the line item, you can grant suppliers a certain amount of time to prepare before delivering the goods or providing the services you want to order.

Period of Performance By specifying a period of performance for your optional line items that is subsequent to the period of performance of the option reference item, you can extend the validity of the contract or purchase order for the specific line item. The supplier will then provide the additional goods or services during a later period of time than the standard line items.

More Information 

Option Status



Options in Tendering



Exercising of Options



Use of Surge Options



Funds Commitment for Options

8.3.17.1 Options in Tendering As a purchaser, you can use this business process when you receive a shopping cart or purchase requisition containing options, and you do not yet have a purchase order or contract that fulfills the requirement.

Process 1. On the basis of a requirement, you create an RFx with at least one standard and one optional line item. The system transfers both the standard and optional line items from the requirement to the RFx.

Note You cannot select the Bidder Can Add New Items indicator when creating the RFx because the system does not allow the bidder to add items to an RFx response with optional line items. 2. You check the option data and, if necessary, change the exercise period, the period of performance, or theoption reference item. You cannot change the option type. 3. You release the RFx. 4. The bidder creates an RFx response. The bidder can make the following changes to the optional line item: 

Define an exercise period if the purchaser has not done so



Change the period of performance specified by the purchaser

Note 

A bidder cannot change optional items to standard items nor standard items to optional items.



You can add optional line items to an RFx that did not contain any optional line items when it was first published. In the RFx response, the system then automatically removes any item variants that the bidder has created in the initial RFx response. The system informs the bidder about this before the RFx response is submitted.

5. The bidder confirms his ability and willingness to deliver the line items and specifies his bidding prices, or he omits line items that he does not want to bid for, and submits the RFx response. 6. You compare the RFx responses that you receive. You can choose to include or exclude the optional line items during the comparison. 7. You accept an RFx response. 8. Based on the RFx response, you create a purchase order or a contract containing the standard and the optional line items.

Result A purchase order or contract with optional line items has been created. When the exercise period starts, you can exercise the option.

8.3.17.2 Exercising of Options You use this process to definitely order options in purchase orders or to make options in contracts and surge options in purchase orders available as a source of supply in Sourcing.

Prerequisites You have done the following: 

You have created and released a purchase order or a contract with at least one optional line item.



You have scheduled status updates for options and specified the details for sending notifications to purchasers in the options handler report. For more information, see Customizing for SAP Supplier

Relationship Managementunder

SRM Server Cross-Industry Functions Application Settings Options

Schedule Options Handler Report

.

Process The following steps occur: 1. When the exercise period of an option is about to start, the SAP SRM system notifies you that the option can be exercised. Depending on the settings made in the options handler report, you receive either an e-mail or a notification in the Universal Worklist (UWL) of the SAP NetWeaver Procurement Portal, on the Alerts tab. 2. You exercise the option within the exercise period. 3. When the period of performance starts, the SAP SRM system automatically activates the option.

Result What happens after the option has been exercised varies according to procurement document containing the optional line item: 

Options in Purchase Orders The optional line items are replicated to the SAP ERP back-end system and ordered. They undergo the standard follow-on procurement processes for order confirmation, goods receipt, and invoice receipt.



Options in Contracts You can create release orders with reference to the option. In Sourcing, you can assign the option to requirements as a source of supply.

8.3.17.3 Use of Surge Options Surge options are a specific type of optional line items that you can create in shopping carts and in purchase orders to provide for an unforeseen increase in demand. Surge options are identified in Sourcing as potential sources of supply if their period of performance has started.

Note You can create an RFx or a contract to source a surge option that was created in a shopping cart. However, in the RFx and the contract, the option type surge option does not exist. Suppliers only see that the item you want to order is optional. This feature allows you to avoid disclosing any details about the potentially sensitive character of an optional line item to potential suppliers. In Sourcing, you can create releases against purchase orders containing surge options to meet the demand for certain goods or services. You can do the following: 

Order the full quantity of the surge option at once



Order partial quantities over a period of time

Prerequisites You can create release orders against surge options if the following conditions apply: 

You have created a purchase order containing at least one surge option.



You have defined a reference item for the surge option.



You have ordered the purchase order.



The period of performance of the surge option has started.

Process 1. In Sourcing, you search for a source of supply to fulfill the requirement by choosing of Supply

Contract and Info Record

Propose Sources

.

The system displays potential sources of supply, including the surge option. You have the following alternatives:  

If the surge option is active, you can assign the surge option immediately as a source of supply. If the surge option is inactive, it is marked as eligible. To be able to select it as a source of supply, you must do the following: 1. Edit the purchase order that contains the surge option and exercise the option.

Note If you have implemented an approval workflow, the purchase order change must be approved. 2. In Sourcing, search again for a source of supply for the requirement. 2. You assign the surge option as a source of supply, create a draft purchase order, and process the draft. 3. The system adds a new standard line item to the existing purchase order that contains the surge option and replicates the line item to the SAP ERP back-end system. The line item is transferred to the supplier to release the goods or services.

Note 

Both the original surge option line item and the newly created standard line item are listed in the Item Overview of the purchase order.



In the Item Details of the surge option line item, you see the open quantity that can still be ordered against the surge option.

Result The supplier has received the standard line item that has been added to the purchase order. The standard follow-on procurement processes for the goods receipt and invoice receipt apply.

8.3.17.4 Option Status The status of an option indicates how you can use an optional line item and what follow-on activities you or the system can perform. The following table illustrates this: Option

Explanation

Follow-On Activities

The option has not been activated.

If the exercise period has started, you can

Status Inactive

exercise the option. If the period of performance has started, exercising the option activates it immediately. Exercised

The option has been exercised and thus been

The option is automatically activated as soon

Option

Explanation

Follow-On Activities

marked for activation. The period of

as the period of performance starts.

Status

performance has notstarted. Active

The option has been exercised and the period

Depending on the type of purchasing

of performance hasstarted.

document, either of the following happens: 

An option in a purchase order is ordered when you release the document.



An option in a contract or a surge option in a purchase order becomes available for sourcing when you release the document.

Expired

The option has not been exercised and can no

None

longer be exercised because the exercise period has ended. Finished

The option has been active. The period of

None

performance has ended. For surge options, the status inactive is further differentiated in the sourcing process as follows: 

Inactive surge options are not identified as potential sources of supply if their period of performance has not started.



Inactive surge options are identified as potential sources of supply if their period of performance has started . They are marked as eligible. You must exercise the eligible surge option to make it available for sourcing. For more information, see Use of Surge Options.

8.3.17.5 Funds Commitment for Options For optional line items in purchase orders, funds are committed in SAP ERP Funds Management in the following way, depending on the option type of the purchase order line item: 

Normal Option No funds are committed when an inactive option is ordered. You can exercise the option to have it automatically activated and ordered when the period of performance starts. At this point, the line item is replicated to the SAP ERP back-end system where it is processed as a standard line item, and the corresponding funds are committed.



Surge Option No funds are committed when an inactive surge option is released as part of the purchase order in the SAP SRM system. You can exercise the surge option to fulfill a requirement. This creates a new standard line item in the purchase order, which releases goods or services against the surge option. When you order the standard line item, it is replicated to the SAP ERP back-end system, and funds are committed.

8.3.18 Order Types and Mixed-Use Purchase Orders You can use order types if you want to combine line items that you definitely order with line items that you want to realize later by creating follow-on orders, as you would do with items in a contract. The purchasing document that lets you create both order type line items and standard, definite types of line items in a single document is the mixed-use purchase order. In Customizing, you can freely specify order types and their names to suit your business requirements. However, independent of the names of the order types, all line items with the order type attribute have the following characteristics that are typical of contract line items: When creating the order type line item, you can leave certain details unspecified, for example, the delivery address and the account assignment. Instead, you can state a target quantity and possibly a guaranteed minimum value. When concrete requirements for the item arise, you can create new release orders against that line item for the requested quantity and with the designated account assignment.

Integration You can use this function in the following business scenarios:  Public Sourcing and Tendering 

Contract Management and Administration



Operational Procurement



Procurement Services

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. You have done the following in Customizing for SAP Supplier Relationship Management under Server Cross-Industry Functions 

SRM

Application Settings Order Types :

You have created an identifier and a semantic description for each order type that you want to use, for exampleIDIQ for Indefinite Delivery Indefinite Quantity. You do this in the activity Define Order Types. Note that in this activity, you can also deactivate the order type. By doing this, you ensure that the order type can no longer be selected. However, it is still visible in existing procurement documents to reflect the history of the procurement document.



You have specified in which type of procurement document business users can use order types. You have also specified whether the values of the order type line items are included in the total value on the document header. You do this in the activity Define Transact. Types for Order Types and Their Influence on Header Values.



If you want to allow purchasers to specify a guaranteed minimum value, you have activated the related fields and tabs in Customizing for SAP Supplier Relationship Management under SRM Server Procurement for Public Sector Functions Application Settings Fields .

Guaranteed Minimum

Activate Tabs and

If you use guaranteed minimum, you can also implement the following BAdIs in Customizing for SAP Supplier Relationship Management under Order Types

SRM Server Cross-Industry Functions Application Settings

:



Compare Guaranteed Minimum of Contract or PO with Minimum Value



Fill Guaranteed Minimum of Contract or PO with Minimum Value

Features Order type line items have the following features:

Definition of Details in Release Order In order type line items – as in contract line items – you can leave many details undefined when creating the item, for example: 

Delivery address



Delivery date



Account assignment

Only when you create a release order must you make a definite decision and specify these details. This is common to all order type line items. In Customizing, you can create various order types with different names, depending on the semantic meaning that you intend to convey by the name. However, they do not differ in their technical,―contract-like‖ characteristics.

Availability in Procurement Documents Business users can select order types, for example ―Indefinite

Delivery, Definite Quantity‖, in the

following procurement documents: Document

Location Where You Select Order Type

Shopping

Item Overview

Cart RFx

Item Data Note: When you create an RFx, you can select an order type. On their RFx responses, bidders can only create a response using the same order type, they cannot change the order type.

Purchase

Item Overview and

Item Details General Data

Order Contract

Item Details General Data

Order Types in Purchase Orders For order type line items, the following additional UI elements (fields, groups of fields, or tabs) are available: UI Element

Purpose

Location (Item Level)

Minimum Value field

Minimum total amount that you intend to order against this line item

Minimum

Minimum total quantity that you intend to order against this line

Quantity field

item

Maximum Order

Maximum value that you are allowed to order in a single release

Item Details General Data Item Details General Data Item Details

UI Element

Purpose

Location (Item Level)

Value field

order

Maximum Order

Maximum quantity that you are allowed to order in a single

Quantity field

release order

Target Value field

Total value for which you intend to order products in one or several release orders

Target Quantity field

Total quantity that you intend to order in one or several release

General Data Item Details General Data Item Details General Data Item Details

orders

General Data

Guaranteed

Minimum amount for which you intend to create release orders.

Account

Minimum group of

For more information. see Guaranteed Minimum.

Assignment tab

Details of release orders that have been created against this line

Tab is displayed at

item. The information includes, for example, the document

item level.

fields Releases tab

numbers, dates, quantities ordered, and values.

Order Types in Contracts If you select an order type in a contract line item, the following of the above fields are also displayed on the General Data of the line item: 

Minimum Value



Minimum Quantity

If you create an order type line item in a contract, the order type does not change the behavior of the line item since all order type line items are typical of contract line items in that several details can remain undefined. The main benefit of using order types in contracts is that you can use this attribute in sourcing. By implementing the BAdI /SAPPSSRM/SOS_BADI, you can identify contract line items with specific order types and, for example, display them at the top in the list of proposed sources of supply.

Funding and Follow-On Processes Order type line items remain unfunded. This means that you do not have to specify account assignment information until you create the release order. If you use SAP ERP Funds Management, funds are only reserved when you create a release order. Follow-on processes, such as goods receipt and invoice receipt, are triggered by the release order, not by the order type line item.

Considerations Regarding Order Types Note the following aspects of order type line items: 

When creating a mixed-use purchase order, you must include at least one definite line item. If want to create a purchasing document with order type line items only, use a contract instead of a purchase order.



If you use hierarchical line items, note the following: o

Below non-order type line items, you can create subline items with or without order types.

o

Below order type line items, you can only create subline items with order types.



You can create an order type line item and make it optional. However, you cannot use the option type surge option. For more information about options, see Options.



Regarding the availability of order type line items in sourcing, note the following: o

Order type line items in contracts are automatically suggested as sources of supply by the sourcing logic.

o

Order type line items in purchase orders are not automatically suggested as sources of supply by the sourcing logic.

Example You want to order a software solution. You do this by creating the mixed-use purchase order shown below. Your company uses the following order types:  ―Indefinite Delivery Indefinite Quantity (IDIQ)‖ This order type means that a definite quantity and the delivery address are specified in the release order. 

―Requirements‖ This order type represents an exclusive arrangement with a supplier for a particular commodity or service. The line item itself has maximum values regarding quantity and the monetary amount.

Your purchase order includes the following data: Line

Order Type

Description

Quantity Unit Target

No.

Guaranteed Minimum

Value

Amt

0001

n/a

Software Licenses

5000

EA

$ 3000

n/a

0002

n/a

Custom

1

EA

$ 100000

n/a

Development 0003

IDIQ

Software Installation

1

EA

$ 100000

n/a

0004

IDIQ

Additional Licenses

10000

EA

$ 5000

n/a

0005

Requirements Training

n/a

Hrs

n/a

$ 500

8.3.19 Shopping Cart Commitment You can use this function to ensure that a financial commitment be made in SAP ERP Funds Management (FM) and/or Controllling (CO) upon approval of a shopping cart created in SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS). Public sector organizations are required to commit funds when they submit a purchase request. By recording the funds commitment in FM, you have appropriate accounting controls throughout the SAP SRM requisitioning process.

Prerequisites  

In Customizing for SAP ERP, you have activated the business function PS, Shopping Cart Commitment in PPS(PS_GOVPROC_SCCMT). In Customizing for SAP SRM, you have activated the following business functions: o SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1) o

SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1)



In Customizing for SAP SRM, you have activated the use of financial commitment for shopping carts under SRM Server Cross-Industry Functions Application Settings Accounting Activate Shopping Cart Commitment .

8.3.20 Retention This function enables the use of retention (formerly called ―withholds‖) in procurement documents. Retention is available at header and item level on the following SAP Supplier Relationship Management (SAP SRM) Procurement for Public Sector (PPS) document types: 

Purchase order



RFx



RFx Response



Contract

Integration Information about retention is transferred from the originating SAP SRM procurement document to SAP ERP for the invoice and payment processes.

Prerequisites In SAP SRM, you have done the following: You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. You have defined transaction types in Customizing for Supplier Relationship Management under Server Cross-Industry Functions

Application Settings Payments

SRM

Retention Define Transaction Types for

Retention . In SAP ERP, you have done the following:  Activated the business function MM, Integration of Materials Management and Financial Accounting(LOG_MMFI_P2P) in the Customizing activity Activate Business Functions. 

Performed the following Customizing activities for Materials Management under Verification o

Incoming Invoice Retention

Logistics Invoice

:

Define Default Due Date for Retention In this Customizing activity, you define how long security retention is retained for each material

o

group. Define Tax Handling for Retention In this Customizing activity, you define country-specific parameters for tax calculation in the

o

security retention document. Define Control Parameters for Retention In this Customizing activity, you define company-code specific settings for retention.

You can further customize retentions using the following Business Add-Ins (BAdIs):  You can disable retention fields in Customizing for Supplier Relationship Management under Server Cross-Industry Functions

Customer Enhancements (BAdIs) Payments

SRM

Disable Retention Fields .



You can define default values and input parameters for retention in Customizing for Materials Management under

Logistics Invoice Verification Maintain Customer Exits and Business Add-Ins BAdI:

Default Values and Input Parameters for Retention

.

Features Retention refers to the ability to hold back a portion of a requested or planned payment. Terms and conditions are agreed upon in the contract, and as long as the special conditions set out in the contract are not met, the receiving invoices are not completely paid. When the retention period passes, the agreed percentage is paid. You can set a default percentage or a definite amount to hold back from invoices and payment, either on a pre-tax or a post-tax basis, but you can always manually change retention amounts on invoices, purchase orders, or payments. Also, you can apply retention to new line item structures, including cost-reimbursement line item types. When you order the purchase order, two documents are created: the receiving invoice and the retention document. The retention document posts the calculated retention amount from the supplier to a special ledger account. By default, retention amounts appear at header level of the special ledger account. The retention amount is paid at the time of the due date entered in the incoming invoice and can be posted with or without tax. In some cases, the retention amount is not paid out as a lump sum. Under certain circumstances, a partial payout of a retention amount is necessary. For example, under terms of a contract, you retain 5% from each of 12 invoices to a contractor. If the contractor has unplanned expenses after the sixth invoice, a partial payout of the retained funds to the contractor is possible, after which you can return to normal processing. You can choose from the following retention options:  Not Applicable 

Select this option if you do not wish to use retention in your procurement document. Secured by Guarantee Select this option if you want retentions to be covered by bank guarantee and not by money withheld from an invoice. If you secure your retention by guarantee, the retention amount is zero. The supplier submits a ―Bank Guarantee on First Demand‖ that gives the purchaser the right to withdraw money



from the bank in case of incidents that require payments under the retention terms of the contract. Applicable (Header) Select this option if you want to enter a retention percentage at header level of a procurement document. The retention percentages are copied to each line item and cannot be changed at line item level. Use this option if you want to apply the same retention percentage to all line items in a



procurement document. Applicable (Item) Select this option if you want to enter a retention percentage at line item level of a procurement document. Retention percentages are maintained at line item level. Retention percentages can differ from line item to line item depending, for example, on the type of service being rendered.

Example Retention is common practice in certain areas, for example, construction. In construction projects, it is standard to withhold a percentage of the invoices sent by contractors because, at the time of invoice, the quality of the goods cannot be assessed. Typically, about six months after construction projects are

finished, quality issues appear and can be assessed. If no quality problems arise, the money that was withheld is paid to the contractor.

8.3.21 Down Payments This function enables the use of down payments in SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS) purchase orders.

Integration Down payment values are copied to financial accounting in SAP ERP as default values. You can change the values in financial accounting before the down payment is posted. Down payments are posted with reference to the purchase order. Once the invoice is posted, the system issues a warning that one or more down payments have not been cleared. Down payment clearing is posted with reference to the purchase order and to the invoices that have been posted. During the payment run, the system offsets the down payment made against the invoices.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. In Customizing for SAP Supplier Relationship Management, you have also done the following:  Defined down payment types under SRM Server Cross-Industry Functions Application Settings Payments 

Down Payments

Define Down Payment Types .

Activated down payments for transaction types under Application Settings Payments

Down Payments

SRM Server Cross-Industry Functions

Define Transaction Types for Down Payments .

In Customizing for SAP ERP, you have activated the business function MM, Integration of Materials Management and Financial Accounting (LOG_MMFI_P2P) under Activate Business Functions. You can also compile, change, and check down payment information by implementing the Business AddIn (BAdI) in Customizing for Supplier Relationship Management under SRM Server Cross-Industry Functions Customer Enhancements (BAdIs)

Payments

Check Down Payments

.

Features The following four down payment types are available at header and line item level in PPS purchase orders:  Initial Use this down payment type if you choose not to enter any down payment information. The down payment due date, amount, and percentage are left blank in the purchase order, and you cannot edit 

the down payment fields. Not Relevant Use this down payment type if down payments have not been granted to the holder of a contract. The down payment due date, amount, and percentage are left blank in the purchase order, and you cannot edit the down payment fields. By implementing the BAdI Check Down Payments, you can use this down payment type to identify line items for which no default values must be displayed.



Mandatory Use this down payment type if the supplier has been granted a down payment because special conditions have been met. For example, if the value of the contract exceeds a certain monetary amount, many agencies and governments require that a down payment be made. The down payment



due date, amount, and percentage must be specified in the purchase order. Voluntary Use this down payment type if the supplier has been granted a down payment even if a down payment is not mandatory. The down payment due date, amount, and percentage must be specified in the purchase order.

8.3.22 Payment Plans You can use this function to define payment plans (also known as invoicing plans) at functional line item level in SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS) purchase orders. Payment plans support complex procurement processes which extend over long periods of time and involve payment milestones instead of the traditional process, which involves goods receipts and invoice receipts and is based on supplier shipments. Using payment plans, you can better steer and track payments from purchase orders.

Integration PPS uses the same payment plan functions as Materials Management (MM). You can now use payment plans on PPS purchase orders, and all invoice handling is done in SAP ERP. Payment plan functions in SAP ERP purchase orders and in Logistics Invoice Verification (LIV) have remained unchanged.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. To use payment plans in PPS procurement documents, you must perform the Customizing activities in SAP ERP for Materials Management under Purchasing Purchase Order Invoicing Plan . Make sure that the following are customized: 

Type of payment plan



List of possible date descriptions for a planned payment



Assignment of date descriptions to invoice types



List of possible reasons for blocking a planned payment

Features Payment plan data is replicated from SAP SRM to SAP ERP and can be used for invoice verification. Billing documents can be automatically generated in SAP ERP based on the payment plans you specify, reducing manual error and eliminating unintentional delays in payments. This leads in turn to good relationships with your suppliers. Payment plans cannot be used with the following: 

Incremental funding



Order type line items



Pricing arrangement components



Retentions



Down payments

Partial Payment Plans A partial payment plan is made up of a list of scheduled dates on which invoices related to an item are to be entered into the system and subsequently paid. The total value of the item is broken down into amounts or percentages and distributed over the individual dates of the payment plan. Partial payment plans are useful for invoicing high-cost material or for projects involving the procurement of external services that are to be paid in stages, for example, for large construction projects.

Example A purchase order item refers to a construction project with a total value of USD 500,000. Half of the total value (USD 250,000) is due to be invoiced and paid upon completion of the first phase of construction, and the other half (USD 250,000) is due to be invoiced and paid following completion of the project. The system checks that the sum of all partial payments does not exceed the price of the line item. Because you schedule the payment plan dates with your supplier, the system does not propose dates to you when you create a new partial payment plan. However, if you would like to have due dates suggested to you by the system as an entry aid, you can reference an existing payment plan and adapt it to your needs. Periodic Payment Plans Periodic payment plans support recurring payments like rent or lease payments, where one fixed amount, representing the total value of a line item, can be automatically invoiced and paid out for a specific period, for example, monthly or quarterly.

Example A monthly sum of USD 500 is charged for a leased car. The transaction is invoiced and paid on the last day of every month. You can define whether the dates are to be manually defined or whether you want the system to suggest dates according to specific rules.

8.3.23 Thresholds You can use this function to define purchasing thresholds to limit the monetary amount spent, depending on different elements, such as organizational elements, cost accounting objects, or homogenous categories. You can use thresholds to: 

Control maverick buying by limiting the value of purchases that are made without contractual reference



Enforce legally defined maximum budgets for purchases without contractual reference



Ensure that purchases do not exceed the limit below which simplified acquisition procedures apply

The system adds up the total amounts of all purchase order items and contract items to which the threshold applies, and validates the total against the amount defined in the threshold. When a purchase

order or contract is created that exceeds the threshold, the system issues either an error or a warning message, depending on your customizing settings.

Example You can define a threshold amount of USD 5,000 that limits the spending of purchasing organization 0001 on a homogeneous category ―Apparel‖ for calendar year 2009.

Integration You can use this function in the following business scenarios: 

Contract Management and Administration



Operational Procurement



Procurement Services

You can set up a workflow that informs a user, for example the manager of a purchasing team, when a threshold is exceeded. If the user has specific authorizations, he can prevent the threshold from being taken into account for a specific purchase by selecting the Threshold not Relevant checkbox.

Prerequisites You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions. You have done the following: In Customizing for SAP ERP  

Customized the cost accounting objects that you want to use for thresholds. Defined product categories under Logistics – General Material Master Settings for Key Fields Define Material Groups

. You have ensured that the product categories are replicated to the SAP SRM

system. In Customizing for SAP SRM  Activated the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). Created an organizational plan under

SRM Server

Cross-Application Basic Settings

Organizational

Management Create Organizational Plan . 

Performed the activities under Thresholds

SRM Server Cross-Industry Functions Application Settings

.

For more information, see SAP Solution Manager under current release>, PPS

Payment

Thresholds

SAP SRM Configuration

SAP SRM