WHITEPAPER: Understanding the 10 EDI messages critical to deploying "Best in Class" Procure to Pay (PTP) SAP EDI

I have seen many, many EDI implementations in this space over the years and have yet to come by a single company that has adopted all of the good features available in SAP to bring real value in to the PTP process. In each part of the process, described below, I will highlight exactly what the purpose is for each EDI message or functionality and highlight the benefits for implementing it in the mentioned fashion.

Below, I list the PTP process for a typical replenishment PO where we procure stock via a Purchase Order (PO) to a supplier who delivers the product to our warehouse using one of our 3rd party carriers. The nuances around freight forwarding, drop ship and make to order scenarios are not covered here but are addressed using 90% of these same techniques as well.

Keeping Track of your Supply Chain - 8 1/2 key points to ponder

When it comes to the Extended Supply Chain, it is critical to ensure that any issue that occurs during the process is uncovered in a timely manner. Once an issue has been uncovered it then becomes critical to take action on it in order to get the process back on track. Without this kind of actionable insight we will simply running less effectively and ultimately end up paying more for the execution of our Supply Chain. Increased buffer stock to account for Supply Chain irregularities, poorly optimized reorder points and optimal order quantities, and so on... We have lived with chaos and exceptions for so long but there is hope; there is light at the end of the tunnel. We need to take charge of the Supply Chain and it all begins with gaining control through visibility in to what is actually happening.

Changing master data in mass

Use transaction MASSD to change attributes of your various master data elements. The following master data objects can be changed using this transaction:

1. BUS0015    Profit center
2. BUS1001    Materials (industry)
3. BUS1001001    Materials (retail)
4. BUS1006    Business Partner
5. BUS1133    Rental units
6. BUS1178001    Mass Maintenance Mat
7. BUS2012    Purchase orders
8. BUS2013    Purch. Sched. Agrmt
9. BUS2014    Purchase Contract
10. BUS2031    Customer Quotation
11. BUS2032    Sales orders
12. BUS2034    Customer Contract
13. BUS2104    Appropriation Req.
14. BUS2105    Purchase Requisition
15. BUS3003    Purchasing Info Rec.
16. BUS3006    G/L Account
17. CA_CONTACC    Contract Account
18. FORCE_LS    ForceEl (Log. Syst.)
19. KNA1    Customers
20. LFA1    Vendors

SAP Event Management Use Cases - Part 3

In my 1st blog on use cases for SAP EM we took you through some of the use case for SAP TM, GTS and SNC as well as the highly popular Track and Trace where folks simply want to know, from their carriers or freight forwarders, that their goods are on time… In my 2nd blog on use case we described the ever popular OTC and PTP processes, being the most asked for processes to monitor...

With that been said below is a list of more processes that are making use of SAP EM to fill certain holes:

1. PO Prompt Payments -
   
2. Production Order Visibility -
   
3. Delivery (Outbound and Inbound)

Just ping me if you want more details on these scenarios 

Real use case: Supply Chain Maturity Whitepaper

Last year I conducted an analysis of a particular business who’s main focus is procuring, storing and supplying general products to large facilities. The focus of my investigation was primarily around the integration of SAP EDI in to the supply chain and in particular the Procure to Pay (PTP) process with a heavy emphasis on the Advanced Ship Notification and the automation thereof.

Explaining the PO confirmation control key

Purchase Order Item Confirmations Tabstrips:
The confirmation control key controls the process subsequent to the creation of the PO. 
E.g. For some important materials with long delivery times, you wish to receive advance information (via the shipping notification or inbound delivery) about the expected GR date so that you can include this information in the availability check.

PO related transactions

MASS MAINTENANCE

- MEMASSPO : Mass maintenance of POs
- MEMASSRQ : Mass maintenance of PRs
- MEMASSCONTRACT : Mass Maintenance of Contracts
- MEMASSSA : Mass Maintenance of Scheduling Agreements
- MEMASSIN : Mass Maintenance of info records
- XK99     : Mass Maintenance of vendors

SAP Ariba powers Al-Futtaim to improve procure-to-pay efficiency

SAP Ariba powers Al-Futtaim to improve procure-to-pay efficiency:

SAP said Al-Futtaim Group has tapped Ariba to improve procure-to-pay efficiency.

On April 8, Al-Futtaim will discuss how it is leveraging Ariba business network to fuel an automated procure-to-pay process that delivers game-changing improvements during an interactive breakout session at Ariba LIVE, the premier business commerce event being held April 7–9 at The Venetian in Las Vegas.

“We needed to gain better visibility into and control over our spend,” said Asad Zaidi, director of Procurement and Performance Improvement, Automotive Division, Al-Futtaim. “And we knew that in order to achieve this, we’d need to automate our operations.”

Purchasing process described with module integration highlighted

• Step-1  Generating Purchase Requisition (PP AND MM involved)
• Step-2  Making Inquiries - (MM)
• Step-3  Raising Purchase Order (MM)
• Step-4  Release of Purchase Order (MM)
• Step-5  Goods received from Vendor (MM & FI)
  Raw material account - dr
  GR/IR clearing ac
• Step-6  Invoice Verification and quality Assurance (FI & MM)
  GR/IR clearing ac
  TO Vendor
• Step-7  Goods issue for consumption (MM FI & PP) 
  Rawmaterial Consumption Dr
  TO Rawmaterial Inventory Account
• Step-8  Production Receipt (FI MM & PP)
  Finished Goods Inventory Account
  to Change in Stock
• Step-9  Finished goods delivered to Customer (MM SD & FI)
  Change in stock ac
  to Finished goods inventory
• Step-10  Raising invoice on customer   (SD & FI)
  Customer ac   -
  to Sales
• Step-11 Receipt of payment from customers  (SD & FI)

SAP Event Management Use Cases – Part 1

I often get asked how we can leverage SAP Event Management functionality. This is a great question because, after all, SAP EM is a tool that is delivered with SAP to provide end-to-end business process visibility and exception management. Much like you would leverage a workflow solution to enforce certain activities to take place at […]


https://qdatausa.wordpress.com/2014/09/23/sap-em-use-cases/

SAP Event Management Use Cases – Part 2

SAP EM providing visibility and status management to the OTC and PTP processes


https://qdatausa.wordpress.com/2014/09/24/sap-event-management-use-cases-part-2/

Five Tips for a Successful Accounts Payable Workflow Implementation

Automating your Accounts Payable (AP) processes such as invoice approval, purchase order matching, and requisitions by implementing a workflow solution is no small undertaking.  While a well-executed workflow implementation can be accomplished in just a few weeks, implementations more commonly become bogged down for weeks, months, or even years by complications in the process itself. […]


https://computersupportservicesinc.wordpress.com/2015/03/26/five-tips-for-a-successful-accounts-payable-workflow-implementation/

6 Strategies to Response Maverick Buying Model

What should be done by all  procurement people in term of facing the maverick buying situation? As a procurement people, you need a comprehensive strategy to response this situation. In this short article, Charles Dominick from The Nextlevel Purchasing shares the six strategy how to stop Maverick Buying. How Can You Stop Maverick Buying? As […]


https://logisticexpert.wordpress.com/2015/03/22/6-strategies-to-response-maverick-buying-model/