Demo Script: Procure-to-Pay - Stock Classification: Internal and For Partners

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

Table of Content
1 Demo Script Overview ..........................................................................................................................................3

1.1 Demo Overview .............................................................................................................................................3
1.2 Intended Audience ........................................................................................................................................3
1.3 Protagonists ..................................................................................................................................................3
1.4 Business Pain Points.....................................................................................................................................4
1.5 Key Messages and Value Proposition ...........................................................................................................4
1.6 Story Flow Summary .....................................................................................................................................4
2 Technical Requirements .......................................................................................................................................6
2.1 Prerequisites .................................................................................................................................................6
2.2 System Access Information ...........................................................................................................................6
2.2.1 System Landscape ..........................................................................................................................6
2.2.2 System Access ................................................................................................................................ 6
2.2.3 Users ...............................................................................................................................................6
3 Demo Steps ............................................................................................................................................................7
3.1 Sourcing and Contracts .................................................................................................................................7
3.1.1 Sourcing and Contracts - Overview .................................................................................................7
3.1.2 Request for Quote (RFQ).................................................................................................................8
3.2 Document Flow .............................................................................................................................................9
3.2.1 Document Flow Tab .........................................................................................................................9
3.2.2 Purchase Request ......................................................................................................................... 10
3.2.3 Request for Quotation .................................................................................................................... 12
3.2.4 Purchasing Contracts..................................................................................................................... 14
3.2.5 Purchase Order ............................................................................................................................. 15
3.2.6 Supplier Delivery ............................................................................................................................ 17
3.2.7 Supplier Invoice ............................................................................................................................. 18
4 Scenario Quick Guide and Key Master Data ..................................................................................................... 19
4.1 Sourcing and Contracting ............................................................................................................................ 19
4.2 Document Flow ........................................................................................................................................... 20
5 Appendix .............................................................................................................................................................. 21
5.1 Document Flow Data ................................................................................................................................... 21
5.2 Document Flow Screenshot ........................................................................................................................ 22
August 1, 2017 2
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
August 1, 2017 3
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.
August 1, 2017 4
This demo covers the business processes depicted in the dark oranges boxes:
Supply Purchase Purchase Sourcing Request for Supplier

Planning Proposal Request Request Quotation Quote
Processing
Purchase Inbound Supplier Payables Managing
Order Delivery Invoice and Cash
Payments
August 1, 2017 5
2 Technical Requirements
2.1 Prerequisites
None
2.2 System Access Information
2.2.1 System Landscape

Software Component Release Support Pack
SAP Business By Design 1708
2.2.2 System Access

Access your local demo system. The access details and demo features described here are available in all standard reference
systems.
2.2.3 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
August 1, 2017 6
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
August 1, 2017 7
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).
August 1, 2017 8
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.
August 1, 2017 9
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.
August 1, 2017 10
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
August 1, 2017 11
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
August 1, 2017 12
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
August 1, 2017 13
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 General
 Click on Items
August 1, 2017 14
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
August 1, 2017 15
3.2.5 Purchase Order

 Click on Purchase Order ID
 Click on Items Tab, then click on Prices
What you Should See
August 1, 2017 16
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
What you Should See
August 1, 2017 17
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
August 1, 2017 18
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, Report: Spend per Spend Category

Overview Screen
August 1, 2017 19
4.2 Document Flow
Steps Summary
Path Data to Use/Enter Activity
Document Flow
WoC Sourcing and Your created RFQ  View All

Contracting
 Document Flow
RFQ’s and Quotes, Published  extend view and click on
Quotes
- Purchase Planning Request
- Purchase Request
- Sourcing Request
- RFQ
- Supplier Quote
- Purchase Order
- Inbound Delivery
- Supplier Invoice
Contracts Show All Contracts, select Contract of  View All and click on
Supplier 100400
- Tab Items
August 1, 2017 20
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 Purchase Sourcing Request for Quotation Supplier Purchase Inbound Supplier
Planning Request Request Quote Order Delivery Invoice
Request
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
August 1, 2017 21
5.2 Document Flow Screenshot
August 1, 2017 22
Copyright
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August 1, 2017 23

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Golden Demo Procure-to-Pay (Stock)

SAP Business ByDesign Reference Systems

1 Demo Script Overview ..........................................................................................................................................3

1 Demo Script Overview

1.1 Demo Overview

 Procure equipment, materials and supplies

1.2 Intended Audience

1.4 Business Pain Points

1.5 Key Messages and Value Proposition

Key Features and Associated Benefits

1.6 Story Flow Summary

Supply Purchase Purchase Sourcing Request for Supplier

2.2 System Access Information

2.2.1 System Landscape

SAP Business By Design 1708

2.2.2 System Access

Supplyplanner01P Richard Stone (US) Welcome1 SAP Business ByDesign

Purchase02 Bill Warner (US) Welcome1 SAP Business ByDesign

Financial02 Iris Greene (US) Welcome1 SAP Business ByDesign

3.1 Sourcing and Contracts

3.1.1 Sourcing and Contracts - Overview

Key Features and Advantages

What you Should See

3.1.2 Request for Quote (RFQ)

Key Features and Advantages

3.1.2 Request for Quote (RFQ)

What you Should See

3.2 Document Flow

3.2.1 Document Flow Tab

Key Features and Advantages

3.2.1 Document Flow Tab

What you Should See

3.2.2 Purchase Request

Key Features and Advantages

3.2.2 Purchase Request

 Return to the RFQ Document Flow

What you Should See

3.2.3 Request for Quotation

Key Features and Advantages

3.2.3 Request for Quotation

 Click on RFQ ID with Description “GD_P2P”

What you Should See

Please note that this is not available in HTML5 yet

3.2.4 Purchasing Contracts

Key Features and Advantages

What you Should See

3.2.5 Purchase Order

Key Features and Advantages

3.2.5 Purchase Order

What you Should See

3.2.6 Supplier Delivery

Key Features and Advantages

What you Should See

3.2.6 Supplier Delivery

3.2.7 Supplier Invoice

Key Features and Advantages

What you Should See

4 Scenario Quick Guide and Key Master Data

4.1 Sourcing and Contracting