Demo Script. Procure-to-Pay - Stock Classification: Internal and for Partners. SAP Business ByDesign Reference Systems.

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Emerald Phillips
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1 Demo Script Procure-to-Pay - Stock Classification: Internal and for Partners SAP Business ByDesign Reference Systems

2 Table of Content 1 Demo Script Overview Demo Overview Intended Audience Protagonists Business Pain Points Key Messages and Value Proposition Story Flow Summary Technical Requirements Prerequisites System Access Information System Landscape System Access Users Demo Steps Sourcing and Contracts Sourcing and Contracts - Overview Request for Quote (RFQ) Document Flow Document Flow Tab Purchase Request Request for Quotation Purchasing Contracts Purchase Order Supplier Delivery Supplier Invoice Scenario Quick Guide and Key Master Data Sourcing and Contracting Document Flow Appendix Document Flow Data Document Flow Screenshot October 23,

3 1 Demo Script Overview 1.1 Demo Overview Today we are going to look at the Procure-to-Pay process inside SAP s Business ByDesign. For companies seeking greater sourcing effectiveness and procurement efficiency, this process provides complete transparency in order to keep customer commitments while balancing stock levels with demand. You can grow profits by building an integrated, demand-driven supply chain. Business ByDesign is an integrated ERP solution that is delivered in the cloud through a single interface and supports core business processes for your organization. SAP ByDesign is extremely powerful and allows your employees to efficiently manage the entire procure-to-pay business process: Procure equipment, materials and supplies Route Purchase Orders for Approval Streamline Order Processing Award and Confirm Purchases and Manage the payment of Invoices This will enable you to save time and reduce the burden on the purchasing and accounts payable departments. It will also ensure that purchases are made from the correct suppliers and follow your own personalized configured workflow. SAP ByDesign s procure-to-pay process stands above the competition by tailoring and automating the end-to-end process from sourcing, purchase order creation, through invoicing, while providing complete transparency. The use of one common platform for all activities, postings, and analytics enable companies to more efficiently manage the business and eliminate redundant data entry and other issues associated with disparate systems. 1.2 Intended Audience SAP internal: Pre-Sales Executive, Pre-Sales Solution Advisors, New hires SAP external: CEO, CIO 1.3 Protagonists Supplyplanner01P KPI for Supplyplanner01P: Forecast accuracy, inventory optimization, fill rate Purchase02 KPI for Purchase02: On-time delivery, purchase quantity compliance, unit cost variance Financial02 KPI for Financial02: Invoice cycle time, days payable outstanding, discounts lost October 23,

4 1.4 Business Pain Points The business pain points addressed are: Manual and time-consuming routine processes Inhibited collaboration with internal and external partners Unable to monitor all operational and strategic purchasing processes Incapable of optimizing the purchasing and accounts payable work environment to drive compliance 1.5 Key Messages and Value Proposition Overview The scenario enables you to purchase stock products, including those based on product specifications, based on a requirement that can be generated from a planning system, such as a Materials Requirements Planning (MRP) system. It covers all stages of the procurement process, from demand planning and creation of a purchase order, through automatic or manual assignment of sources of supply, sending the purchase order to a supplier, to goods and services receipt, invoice verification, and payment. Key Features and Associated Benefits Purchase Request o Automated purchasing process to reduce errors and process time, which can be adapted to your business o Increase process efficiency to reduce transaction cost to process orders and provide transparency through the entire process Strategic Sourcing o Enforce contract compliance by defining source of supply o Integrated SAP Interactive Forms software (by Adobe ) promotes collaboration and efficiency in the RFQ process. o Leverage standard sourcing best practices to increase negotiated savings Invoice Processing o Automated Invoice verification where user interaction is only for exception handling o Payments to suppliers are highly automated to achieve the highest possible payment discounts taking the current liquidity situation into consideration Analytics o Built-in analytics enable the purchasing department to bring more spend under management and supervise the full supplier life cycle by monitoring the supplier base 1.6 Story Flow Summary In this demonstration we are going to show you an example of the end-to-end procure-to-pay process as it relates to a material. Richard Stone is a supply planner responsible for planning materials. The supply planning run identifies a stock shortage for a particular item and automatically kicks off a purchase proposal. Richard releases the Purchase Proposal which sends the Purchase Request to Bill Warner, who is responsible for procurement; he processes the purchase request by sourcing the product. The product is then ordered and received. The supplier invoice is administered, by Iris Greene in accounts payable, and posted. Note that the entire procurement process can be fully automated, based on configuration, once the Purchase Proposal is released. October 23,

5 This demo covers the business processes depicted in the dark oranges boxes: Supply Planning Purchase Proposal Purchase Request Sourcing Request Request for Quotation Supplier Quote Purchase Order Inbound Delivery Supplier Invoice Processing Payables and Payments Managing Cash October 23,

6 2 Technical Requirements 2.1 Prerequisites None 2.2 System Access Information System Landscape Software Component Release Support Pack SAP Business By Design System Access Access your local demo system. The access details and demo features described here are available in all standard reference systems Users Predefined User ID User Name Password Component Supplyplanner01P Richard Stone (US) Welcome1 SAP Business ByDesign Purchase02 Bill Warner (US) Welcome1 SAP Business ByDesign Financial02 Iris Greene (US) Welcome1 SAP Business ByDesign October 23,

7 3 Demo Steps 3.1 Sourcing and Contracts Sourcing and Contracts - Overview What to Say Introduction First of all, let s take a look at the Sourcing and Contracts Module in Business ByDesign. The Sourcing and Contracts module allows you to manage all aspects of the Sourcing process. From this overview screen you can view your own customized analytics. I m logged in as Bill Warner who is a purchasing manager and Bill is interested in keeping track of Contract Spend, Purchase Order Spend, Maverick Spend and see how that relates to the total spend of the organization. Bill has easily configured his overview screen to include this analytic because it s important to him. I can drill into this analytic, modify it and look at it in different ways. From this screen I can also look at all my sourcing requests, manage my tasks and look at any RFQ s that I have in process. Key Features and Advantages Analytics and KPIs Adaptability of the system through embedded analytics to meet the specific business requirements of the procurement professional. Value Statement Relevant and actionable information is surfaced through easy to understand analytics to help the procurement professional make better informed decisions. This improves profitability. What to Do Log on with Purchase02 (Bill Warner) WoC: Sourcing and Contract -> Overview Have a look at Report: Total Spend per Spend Category Actions -> Analyze Data Select View: Total Spend per Spend Category October 23,

8 What you Should See Request for Quote (RFQ) What to Say Introduction Let s first take a look at the RFQ and Quotes work center. Here I can see all of my published RFQ s and you ll notice there is one for Cylinders, let s drill into this one. This is an RFQ for some Cylinders that the company needed, and we can see the overview details on this screen. Let s take a closer look at this quote. When we look deeper into the RFQ we can see all of the details of this document, but before we get into the detail here, let s look at how this RFQ got started. We are going to do this by looking at the DOCUMENT FLOW tab. Key Features and Advantages Viewing an RFQ The system has a built-in two level information concept for providing information on central business data, specifically for the RFQ, with the ability to view more detailed information. Detailed information can be easily accessed with the View All function, which also covers very specific details that are not frequently needed. Value Statement This two-tier layout structure helps you quickly access the information you need when you need it. What to Do In Sourcing and Contracting work center - > RFQs and Quotes -> Requests for Quotation Show Published RFQ s and click on RFQ ID with RFW Description GD_P2P Click on View All Click on Quotes for required Product P (Cylinder). October 23,

9 3.1.2 Request for Quote (RFQ) What you Should See 3.2 Document Flow Document Flow Tab What to Say Introduction The Document Flow tab shows me the end-to-end process for this purchase and if we drill into the extended view we can see that this RFQ started with a Purchase Planning Request which became a Purchase Request. The Purchase Request then became a Sourcing Request. In this instance, we didn t have a contract for this item, so the Purchasing Department decided to send out a Request for Quotation. You can see that the purchasing Department Received two Supplier Quotes and one of these quotes was Awarded and a Purchase Order created. The goods arrived and they were marked as delivered and finally the Supplier Invoice was input into the application. From this Document Flow screen I can drill into any of these documents to look at the detail. Key Features and Advantages Document Flow Ease of access and transparency to related business information and a best practice business flow. Value Statement Transparency and rapid access to information related to business transactions allow efficient processing of business document related data. October 23,

10 3.2.1 Document Flow Tab What to Do Click on Document Flow Drill into the Extended View and change the zoom What you Should See Purchase Request What to Say Introduction Let s start with the Purchase Request, which was created when Richard Stone released the Purchase Proposal generated from the Supply Planning run. Back in the document flow tab we can click on the Purchase Request which was handled by Bill Warner, it will open and we can drill from the header down into the details screen by clicking on VIEW ALL button. The Purchase Request document shows me all of the details I need. I can switch between different tabs to look at pricing details, source of supply, delivery details etc. In this instance, a source of supply was not identified, and a sourcing request has been created. Key Features and Advantages Purchase Request Purchase requests contain products that are to be purchased in a specified quantity within a specified time. The system tries to assign a source of supply and depending on settings can automatically create a purchase order; if this is not possible, the buyer can either assign a source of supply manually or trigger the system to create a sourcing request in the Sourcing and Contracting work center to initiate the request for quotation (RFQ) process. October 23,

11 3.2.2 Purchase Request Value Statement The purchase request is highly adaptable fit the unique purchasing needs of the business. What to Do In Purchase Request Return to the RFQ Document Flow Click on Purchase Request ID Click on the View All Button Point out the Items section Click on Price Tab Click on the Delivery Tab What you Should See October 23,

12 3.2.3 Request for Quotation What to Say Introduction As previously stated, we didn t have a contracted supplier for this item, and the purchasing department decided to send out a request for quote, let s take a look at the RFQ. In Business ByDesign the RFQ is quick and easy to create. You can see from the General Tab all basic details and rules of the request. For example, you can see that I have a rule that dictates whether a supplier can add items to the quote. I can drill into the items, look at the bidders and compare the quotes that I received side-by-side. The system will even propose bidders based on purchase history. You will notice that Omego was awarded the business on this particular occasion. Business ByDesign makes it quick and simple for you to enter the supplier quotes when you receive them. In fact, when you send the RFQ to the suppliers, it can be an interactive Adobe Form that the supplier can easily fill out and submit back to you, directly from the form. There are no web sites for the supplier to log into, no registration required and certainly no supplier registration fees. Just a quick and simple process. They receive an with a form in it, they open the form, complete the quote, click on SEND and they are done. The benefit of this it that it s easy for suppliers to respond and there are no bottlenecks in the process. Going back to our document flow screen, let s continue along the process. You ve seen how a, RFQ was created and the bids received. The next step in the process is to create a Purchase Order. Before we go there, let s take a look at a Contract, so you can see an example of another path we could ve taken in the strategic sourcing process. Key Features and Advantages Request for Quotation Request-for-Quote (RFQ) processing enables organizations to easily find and negotiate new sources of supply. After publishing a request for quotation, buyers can efficiently process the quotes they receive, making sure that they always choose the best quotes by comparing them in a well-arranged manner. The winning quote can then be converted to a purchase order or a purchasing contract. SAP Business ByDesign includes a streamlined communication process that uses interactive forms to exchange RFQ and quote data with suppliers or bidders. Value Statement The automated electronic RFQ process removes the latency associated with a typical paper laden RFQ process. The use of interactive forms ensures structure and drives efficiency through send, receive, and load process. A side-by-side view of all quotes ensures transparency and makes it easy to compare supplier price and non-price factors to arrive at the total best value supplier. What to Do In Sourcing and Contracting Workcenter, View RFQs and Quotes, Subview Request for Quotation Show All RFQs October 23,

13 3.2.3 Request for Quotation Click on RFQ ID with Description GD_P2P Back in Subview Quotes click on Compare Quotes What you Should See Please note that this is not available in HTML5 yet October 23,

14 3.2.4 Purchasing Contracts What to Say Introduction As mentioned, we could ve created a Contract before creating the Purchase Order from the awarded quote, and then released Purchase Orders against the Purchasing Contract, but in this case we chose to go directly to the PO. Before we take a look at a Purchase Order, let s take a look at what it may have looked like if we had created a contract. The Contract Option is a very powerful way to keep track of all your contact related details, such as the purchase orders associated with this contact, as well as tracking changes that were made on the contract. Key Features and Advantages Purchasing Contract Management ByDesign supports the management of purchasing contracts throughout their complete life cycle. Monitoring capabilities ensure that suppliers, business units, and individual buyers comply with agreed terms and conditions to close the loop between sourcing and procurement. A purchasing contract can be referred to by purchase orders, goods and service acknowledgements (in the case of a limit purchase order) and supplier invoices. Value Statement Purchasing contracts can be created directly from an RFQ to drive efficiency and transparency through the quote-tocontract process. Release made against the purchasing contract reduce maverick spend and ensure purchasing compliance. What to Do In Sourcing and Contracting Work center Click on Contracts - > Show All Contracts Click on Contract of Supplier S with Contract ID 15 Click on View All Click on General Click on Items October 23,

What you Should See 3.2.5 Purchase Order What to Say Introduction Let s now move back to the workflow at hand by looking at the Purchase Order.

15 What you Should See Purchase Order What to Say Introduction Let s now move back to the workflow at hand by looking at the Purchase Order. On the purchase order screen we can see that it has been assigned to the supplier from one of the bids we received, and this includes all of the information associated with the purchase. You will notice that each of the document screens that we have been looking at have a consistent look and feel, with the same tab structure making it easy for the user to navigate. The purchase order is created and sent to the supplier via , fax or even electronically. Key Features and Advantages Purchase Order Purchase orders (PO) can be created manually in the Purchase Orders view of the Purchase Requests and Orders work center or the system automatically generates purchase orders from awarded supplier quotes or from purchase requests. Value Statement Using automatic creation of purchase orders saves time by reducing manual data entry. You only have to manually create purchase orders in cases where there is no source of supply assigned to the purchase request. What to Do In RFQ Document Flow October 23,

16 3.2.5 Purchase Order Click on Purchase Order ID Click on View All Click on Items Tab, then click on Prices What you Should See October 23,

3.2.6 Supplier Delivery What to Say Introduction Once the goods arrive in the warehouse, Almika warehouse associates can mark the items as received; we can see from the Inbound Delivery Document that

17 3.2.6 Supplier Delivery What to Say Introduction Once the goods arrive in the warehouse, Almika warehouse associates can mark the items as received; we can see from the Inbound Delivery Document that all the delivery details are captured. Key Features and Advantages Supplier Delivery Supplier delivery processing enables you to process incoming deliveries ordered from suppliers. It allows you to process goods receipts by confirming the quantities of the items delivered for the purchase order. The related purchase order and invoicing items are updated when goods are received. At the same time, material inventory and financial accounting are also updated, providing accurate accounting figures and stock levels in real-time. Value Statement Automatically updating all appropriate business documents upon receipt of goods drives efficiency and ensures accurate financial accounting. What to Do In RFQ Document Flow Click on Inbound Delivery ID Click on View All What you Should See October 23,

3.2.6 Supplier Delivery 3.2.7 Supplier Invoice What to Say Introduction The last component of this business scenario is invoice arrival and input into the system.

18 3.2.6 Supplier Delivery Supplier Invoice What to Say Introduction The last component of this business scenario is invoice arrival and input into the system. Invoices can be manually entered into the application or they can flow in electronically. The invoice can automatically undergo a 3-way matching process (based on your configuration) ensuring the Purchase Order, Receipt, and Invoice align. In this case the invoice matched and will be paid on the next payment run. If the invoice didn t match for some reason it would be flagged and a task created for the relevant person to complete the required action. For example, if the invoice amount differed from the purchase order amount, an exception would be created, and the invoice would be flagged for review. If there are no exceptions, then its lights out processing. Once the invoice is accepted, the invoice is posted and will be included in a payment run which can be automatic of manual. This concludes our demonstration of SAP s Business ByDesign Procure-to-Pay stock business scenario. Key Features and Advantages Supplier Invoice SAP Business ByDesign customers benefit from a streamlined supplier invoice verification process supported by a collaborative exception handling concept that delivers cash benefits. Value Statement Automated Invoice verification ensures user interaction is only for exception handling; thus reducing accounts payable processing time and cost. Payments to suppliers are highly automated to achieve the highest possible payment discounts taking the current liquidity situation into consideration October 23,

19 What to Do In Document Flow Click on Supplier Invoice ID What you Should See 4 Scenario Quick Guide and Key Master Data 4.1 Sourcing and Contracting Steps Summary Path Data to Use/Enter Activity Overview Screen Sourcing and Contracting, Overview Screen Report: Spend per Spend Category October 23,

20 4.2 Document Flow Steps Summary Path Data to Use/Enter Activity Document Flow WoC Sourcing and Contracting RFQ s and Quotes, Published Quotes Contracts Your created RFQ Show All Contracts, select Contract of Supplier View All Document Flow extend view and click on - Purchase Planning Request - Purchase Request - Sourcing Request - RFQ - Supplier Quote - Purchase Order - Inbound Delivery - Supplier Invoice View All and click on - Tab Items October 23,

21 5 Appendix 5.1 Document Flow Data The data provided in the script is country specific. Please refer to the table below to find the data which was created in the respective country version. Purchase Order, Inbound Delivery, Supplier Invoice in all systems are tagged with Name: GD- P2P. Purchase Planning Request Purchase Request Sourcing Request Request for Quotation Supplier Quote Purchase Order Inbound Delivery DE Supplier Invoice US UK SIV-773 FR F IN SIV-635 CN GFP-630 MX AU SIV-472 AT CA CH NL October 23,

22 5.2 Document Flow Screenshot October 23,

23 Copyright 2017 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See October 23,

Demo Script. Quality Assurance Classification: Internal and for Partners. SAP Business ByDesign Reference Systems. Version:

Demo Script. Quality Assurance Classification: Internal and for Partners. SAP Business ByDesign Reference Systems. Version: ) Demo Script Classification: Internal and for Partners Version: 20180131 SAP Business ByDesign Reference Systems Disclaimer This demo script is based on the ByD Reference System for the Almika model company.