GOA Contracts Price Validation Functionality

Transcription

1 GOA Contracts Price Validation Functionality Applies to: SAP SRM 5.5. For more information, please visit SCN SRM Home Page. Summary The purpose of this document is to share the solution of maintaining global contracts of an organisation which have implemented SRM solution. The standard excel upload download functionality of Global Outline Agreement can be modified for the price validation due to revision of prices of material over a period of time.the solution discussed here is the implementation of standard SRM Badi (BBP_CTR_M_UPLOAD) and other z programs. I hope this solution would be helpful for both the SRM consultant and as well to the organisation. Author: Ashish Garg Company: Wipro Technologies Created on: 04 July 2009 Author Bio Ashish Garg is certified SAP SRM Consultant. He is presently working with Wipro Technologies. He has nearly 5 years of experience in working with SAP. He has worked in the strategic Components of SRM like Contracts Management, Self Service Procurement, Bidding Engine, Supplier Self Service SAP AG 1

2 Table of Contents Introduction...3 Solution Description...4 Functional Flow of Price Validation Functionality...4 Benefits of This Enhancement...8 Essential Customizing Data or Programs Developed...8 Related Content...9 Disclaimer and Liability Notice SAP AG 2

3 Introduction Global Outline Agreement (GOA) is a umbrella agreement negotiated by a purchasing organization for the entire corporate group. The data contained within the global outline agreement is distributed as purchasing contracts or scheduling agreements to the backend systems of the release-authorized purchasing organizations of the relevant corporate group. Local purchasing organizations can then use these purchasing contracts or scheduling agreements according to the terms agreed centrally within the global outline agreement. The key business drivers for global contracts are: Global spend management reduction in cost and increase in operational efficiency Decrease maverick buying Shift volume into preferred suppliers for better negotiation It Aggregates demand, decreases cycle time and increase in visibility Procurement ensuring compliance & auditing (ex. Sarbanes Oxley act) Effective contract management helps in ensuring the procurement process for good supply chain management implemented over duration of contract period.the global contracts contain large volume of line item per contract and maintenance of such a contract is critical to organization. The major challenges are price revision, terms & condition, follow up required with the vendor etc. In nutshell procurement process for good supply chain management is affected. Standard SAP SRM doesn t supports price validation functionality based on tolerance values in excel upload / download when the price has to be changed by vendor for particular material. So Z- program and badi implementation can be done to cover this process SAP AG 3

4 Solution Description Since the maintenance of the global contract is a major challenge to the organization. The GOA contracts excel upload download functionality of standard SRM can be modified for this price validation. Functional Flow of Price Validation Functionality 1. Download the GOA Contracts Excel File. This file will have one extra column Tolerance% (which is used for calculating %change of gross price of material) by clicking on the download button on GOA and keeping the file on the local PC. This file is SAP macro enabled. Download Contract Excel file (Macro Enabled) 2. Create Simple Excel file which is send to vendor via . This excel file will have all relevant header and item data column including the tolerance % column Simple Excel (Without Macro enabled) 3. The vendor would update the Simple Excel File with new gross price and tolerance % information. This file is saved with.txt extension and can be opened in Excel. The transaction code: ZSRM_DWNL_GOA01 4. The received Simple Excel file ( with.txt extension) will be used to update the original/base GOA excel file for all columns in Header and Item Details (e.g. Price and % Change in Gross Price). The updated Price info at the line item level will be marked as U (Update identifier) in the excel file. The transaction code: ZSRM_UPLD_GOA SAP AG 4

5 5. Finally Buyer will upload the updated Base File through Upload Contracts transaction. The program will do a sanity check for the SRM GOA macro enabled file. For uploading we need to do the comparison of new gross price from excel file with the old gross price of the contract from the system against % Change of Price or tolerance% value from the Excel file. This will be done in Simulation mode with Contract Mass uploads. The logic for the Comparison of the new price and Old Price with respect to % Change of Gross Price is as below. When % Change in Price or tolerance% value is Positive If New Gross Price <= Old Gross price * ((% Change of Price) + 100) / 100 Uploading process should be carried out. If New Gross Price > Old Gross price * ((% Change of Price) + 100) / 100 The system should give the exception message. Ex : Old Gross Price = 100 Eur Tol = 10% (positive) New Gross Price <=110 Eur for the file to be successfully uploaded into the system. When % Change in Price tolerance% value is Negative If New Gross Price <= Old Gross price * ((% Change of Price) + 100) / 100 Uploading process should be carried out. If New Gross Price > Old Gross price * ((% Change of Price) + 100) / SAP AG 5

6 The system should give the exception message: Error message during simulation Ex. Old Gross Price = 100 Eur Tol = 10 % (Negative) New Gross price <= 90 Eur for the file to be successfully uploaded into the system 2009 SAP AG 6

7 Another important thing in this development is that exceptional message related to price not in tolerance for the material is also a custom development. It would list out all the line items which have failed in price tolerance. This would help the buyer in correcting the prices of those materials in that file and then would Upload with the same functionality bypassing the simulation. Here the process should not get any exception messages. The system will give the standard exception messages if it finds any standard exceptions apart from the price change. In this mass upload until and unless user says apply changes, changes will not be carried out. Once the changes are applied contract will have new gross price information. Note: 1. Special "add-in" (see SAP Note: ) in Excel can be used to ease the updating of contract in Excel. This special add-in is SAP example macro and it can be further developed. In downloaded Excel each change (insert, update, delete) can be marked on line level. This add-in needs to be installed into each PC where this Excel would be handled. 2. This development is done for SRM 5.5. There can be additional changes required for different SRM version for achieving this functionality SAP AG 7

8 Benefits of This Enhancement Automation in revision of prices which would help in maintenance of contracts with large volume of line items. This would help in maintaining data integrity (SOX compliance). Reduction in Buyer s manual work as revision of price may happen every year or in six months. Reduction in operational expenses of organisation like telephone calls to vendor, delay by vendor /buyer etc is saved as this excel file can be send over to vendor. This has helped in streamlining the Contract Management process used by the organisation. Essential Customizing Data or Programs Developed Type Description Value/coding Additional information Document type in target system Document type for distribution of Global Outline Agreement New contract type GCTR CONTRACT IDOC BLAORD is changed in BADI in ERP SIDE! ZBBP_CTR_ACC ~MODIFY_IDOC_DATA_CTR please refer to file zbbp_ctr_acc.txt Number range of Global Outline Agreement Badi Implementation Z Program Development Automatic numbering will be used. Badi implementation for GOA Contract Upload download price validation 1. Download Simple excel file which is send to vendor ? Number range for SRM GOA is number range as external in backend ERP. Logic for price validation was maintained BBP_CTR_M_UPLOAD 1.T-Code : ZSRM_DWNL_GOA01 (Portal Path: Buyer-Contracts- Contract File to Supplier ) 2. Updating Macro enabled Excel file with file received from vendor 2. T-Code: ZSRM_UPLD_GOA02 (Portal Path: Buyer-Contracts- Updated Supplier File to Base File ) 2009 SAP AG 8

9 Related Content For more information, visit the Supplier Relationship Management homepage SAP AG 9

10 Disclaimer and Liability Notice This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document SAP AG 10