Golden Demo Procure-to-Pay (Stock) · PDF fileSAP ByDesign is extremely powerful and allows ... Richard releases the Purchase Proposal which sends the Purchase Request to Bill

Golden Demo Procure-to-Pay (Stock)

SAP Business ByDesign Reference Systems

Demo Script

Procure-to-Pay - Stock

Classification: Internal and for Partners

Version: 20171218


Document Version: 20171218 2

Disclaimer

This demo script is based on the ByD Reference System for the Almika model company. There are several country versions

of the Almika ByD implementation available. The content is similar but deviates especially with respect to language support,

names and object descriptions. Sample data used in this demo script relates to the US country version – for other country

versions different data samples might be relevant.

A prerequisite for being able to fully understand this demo script and run the demo, is a sound system knowledge on SAP

Business ByDesign. General assumption is that you are familiar with the Learning Center content available in your ByD

system at: Home Self-Services – Learning Center.

Although the script has been tested carefully you might nevertheless encounter different system behavior when running a

demo in an actual Almika demo tenant.

Release Statement

This version of the demo script is released for the following country versions of the ByD Reference System for the Almika

model company:

• US – United Stated, as of demo release ByD 1705

• DE – Germany, as of demo release ByD 1705

• UK – United Kingdom, as of demo release ByD 1705

• FR – France, as of demo release ByD 1705

• AT – Austria, as of demo release ByD 1705

• CH – Switzerland, as of demo release ByD 1705

• NL – Netherlands, as of demo release ByD 1705

• CA – Canada, as of demo release ByD 1705

• MX – Mexico, as of demo release ByD 1705

• AU – Australia, as of demo release ByD 1705

• CN – China, as of demo release ByD 1705

• IN – India, as of demo release ByD 1705

The demo release basically is determined by the time when the demo tenant has been provisioned for demo usage, a demo

tenant provided between mid of March and mid of June 2018 is part of the demo release ByD 1802.

As of demo release ByD 1802 the release status of your ByD demo tenant can be identified in the Company-Specific-Help:

You can find a help entry “ByD <nnnn> Demo Guides <CC>” under Help – Company-Specific-Help. <nnnn> specifies the

demo release of your ByD demo tenant, e.g. ‘1802’ – released in February 2018. <CC> specifies the country version of your

demo tenant, e.g. ‘US’ – Almika US country version. The version-controlled demo guides provided in this help entry match to

the demo release and the country version of your ByD demo tenant. Please be aware that the demo guides are not specific

to the country version, only the version of the demo guide is specific to your ByD demo tenant.



Table of Content

1 Demo Script Overview ................................................................................................................................... 4

1.1 Demo Overview ...................................................................................................................................... 4

1.2 Intended Audience.................................................................................................................................. 4

1.3 Protagonists ........................................................................................................................................... 4

1.4 Business Pain Points .............................................................................................................................. 5

1.5 Key Messages and Value Proposition ..................................................................................................... 5

1.6 Story Flow Summary .............................................................................................................................. 5

2 Technical Requirements ................................................................................................................................ 7

2.1 System Access Information ..................................................................................................................... 7

2.2 User Accounts ........................................................................................................................................ 7

3 Demo Steps .................................................................................................................................................... 8

3.1 Sourcing and Contracts .......................................................................................................................... 8

3.1.1 Sourcing and Contracts - Overview ............................................................................................ 8

3.1.2 Request for Quote (RFQ) ........................................................................................................... 9

3.2 Document Flow .................................................................................................................................... 10

3.2.1 Document Flow Tab ................................................................................................................. 10

3.2.2 Purchase Request ................................................................................................................... 11

3.2.3 Request for Quotation .............................................................................................................. 13

3.2.4 Purchasing Contracts............................................................................................................... 15

3.2.5 Purchase Order ....................................................................................................................... 16

3.2.6 Supplier Delivery ..................................................................................................................... 18

3.2.7 Supplier Invoice ....................................................................................................................... 19

4 Scenario Quick Guide and Key Master Data ................................................................................................ 20

4.1 Sourcing and Contracting...................................................................................................................... 20

4.2 Document Flow .................................................................................................................................... 21

5 Appendix ...................................................................................................................................................... 22

5.1 Document Flow Data ............................................................................................................................ 22

5.2 Document Flow Screenshot .................................................................................................................. 23



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



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 Procure-to-Pay (Stock) 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.



This demo covers the business processes depicted in the dark oranges boxes:

Purchase Proposal

Supply Planning

Purchase Request

Sourcing Request

Request for Quotation

Supplier Quote

Purchase Order

Inbound Delivery

Supplier Invoice

Processing Payables and Payments

Managing Cash



2 Technical Requirements

2.1 System Access Information

To run the demo, you need access to a ByD demo tenant for the Almika model company, which is available in different

country versions.

2.2 User Accounts

The following user accounts for ByD Almika implementation are to be used to run the demo:

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



3 Demo Steps

3.1 Sourcing and Contracts

3.1.1 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



What you Should See

3.1.2 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.


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 P100710 (Cylinder).



3.1.2 Request for Quote (RFQ)

What you Should See

3.2 Document Flow

3.2.1 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.


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.



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

3.2.2 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.


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.



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



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 email 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.


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



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



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.


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-to-

contract 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 S100400 with Contract ID 15

Click on View All

Click on General

Click on Items



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. 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 email, fax or even electronically.


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



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



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.


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



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. 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.


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



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



4.2 Document Flow

Steps Summary

Path Data to Use/Enter Activity

Document Flow

WoC Sourcing and

Contracting

RFQ’s and Quotes, Published

Quotes

Your created RFQ

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

Contracts Show All Contracts, select Contract of

Supplier 100400 View All and click on

- Tab Items



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

Supplier Invoice

DE 5774 253 11 11 12 396 413 842

US 8618 251 11 11 12 405 382 716

UK 5254 241 11 21 12 367 361 SIV-773

FR 2687 201 31 22 23 340 321 F111-68-2013

IN 6027 251 11 11 12 321 311 SIV-635

CN 1754 231 11 12 14 334 321 GFP-630

MX 5246 221 21 21 12 303 291 632

AU 5465 251 11 11 12 303 261 SIV-472

AT 5345 291 11 12 14 463 432 883

CA 2005 121 153 11 12 153 181 428

CH 5140 81 11 11 12 103 101 200

NL 494 11 11 11 12 25 31 57



5.2 Document Flow Screenshot



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Documents

Golden Demo Procure-to-Pay (Stock) · PDF fileSAP ByDesign is extremely powerful and allows ... Richard releases the Purchase Proposal which sends the Purchase Request to Bill