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You can use this business process to send out purchase orders (POs) to the supplier using the web-based application SAP Supply Network Collaboration (SAP SNC). POs are typically generated as part of the customer's MRP run or are manually created by the customer. With SAP SNC, customers and suppliers can collaborate not only on purchase order items and component information (in the case of a subcontracting purchase order), but also the customer batch number for the product at item level or for a product at component level can now be transmitted in the SAP SNC PO. This includes characteristic values for a classified batch-managed product as well as the product configuration at item level and component level.

The suppliers can view the POs by status, enter free text notes, and also print or download. The supplier can enter confirmations or order responses indicating which date and quantity that can be committed to. At time of shipment, the supplier can create ASN messages as well, which together with the confirmations update the customer's ERP/MRP system.

Suppliers and customers can create quality notifications at any point of production or delivery to document problems or deviations from the expected product and to define a structured data flow between supplier and customer to communicate these quality issues.

The main business value is derived from the fact that the customer can communicate requirements accurately and in real-time, replacing older methods, such as phone, fax, or e-mail. Suppliers can find their requirements through a web browser only and are proactively alerted to exception situations, such a new or changed PO, on-screen or per e-mail. Suppliers can respond to the requirements quickly and accurately via confirmations and ASNs.

Prerequisites

The end-to end business process includes SAP ERP (MM Module) and SAP SNC where the purchase orders are exchanged via messages (using SAP XI as the EAI tool). As such the POs exist in both SAP ERP and SAP SNC, whereby SAP SNC is the collaborative view of the PO.

A general requirement for the Purchase Order Processing business process is the added use of the Inbound Processing and Receipt Confirmation business process in SAP ERP. This business process deals with the goods receiving process in SAP ERP, containing receipt of the ASN message from SAP SNC, the put away and goods receiving steps in SAP ERP, and sending the Proof of Delivery message to SAP SNC.

To enable SAP SNC to process characteristics of a classified batch-managed product or of a configurable product (for example, to display the characteristics description depending on language), the characteristics and classes to which the characteristics belong must exist in SAP SNC (class type 300 for a configurable product, class type 232 for a batch-classified product). In addition, you have assigned the class to the product. You can create classes and characteristics manually in SAP SNC in the classification system.

If you are using an SAP ERP system as a back-end system, you can also transfer the SAP ERP master data – in particular, classified materials, classes, and characteristics – to SAP SNC using Core Interface (CIF).

You are using the ReplenishmentOrderNotification XML message to transmit characteristic values for the customer batch or product configuration to SAP SNC for a product at item level or for a subcontracting component.

You are using PurchaseOrderERPReplenishmentOrderCollaborationNotification XML message to transmit fields at item level for batch and for characteristic values to SAP SNC.

Note Note

This business process and its configuration focus mainly on the activities in SAP SNC, as opposed to the activities in SAP ERP or SAP XI. This document refers to other documents such as the Industry Scenario Configuration Guide for Release Processing for Automotive. The scenario Configuration Guides referred to explain the detailed configuration and master data needed in SAP ERP and SAP XI as well as the SAP SNC specific information found in this guide.

End of the note.

Process

This graphic is explained in the accompanying text.

  1. Create and send new purchase order (SAP ERP)

    The customer creates purchase orders (POs) in the ERP system for procurement of required components or raw materials (direct materials). The POs can be automatically generated via MRP or manually created or converted from Purchase Requisitions. The POs are communicated to the respective suppliers via outbound messaging using standard IDocs (or the respective XML messages for transmission of POs with batch and characteristics values at item or component level) and sent to and stored in the SAP SNC application.

    Usually, a purchase order is created to procure a product from a single supplier. However, there are cases where multiple suppliers are used to procure the final product. For example, the first supplier may provide components, a second supplier may assemble the component into the finished good, and a third supplier may perform test services. In such a case, the purchase orders can be grouped to provide a single view of all the activities necessary to fulfill a single demand. As each supplier completes the processing of their purchase order, the material is shipped to the next supplier for processing. All features and capabilities of purchase order collaboration are available with the added function of indicating that a purchase order is part of a group and therefore dependent on another purchase order. The purchase orders are grouped at the purchase order item level. This means that one purchase order with multiple items could be part of multiple groups. For more information about grouping purchase orders , see SAP Library for SAP Supply Network Collaboration at http://help.sap.com under   Purchase Order Collaboration   Special Topics in Purchase Order Collaboration   Purchase Order Item Group  . You can only use this purchase order item grouping, if you have activated the Supply Network Collaboration 1 (SCM_SNC_GEN_1) business function in SAP SNC.

  2. Check for new purchase order in Alert Monitor (SAP SNC)

    The supplier is alerted to the new PO from the customer, for instance through an e-mail notification or by logging in to the SAP SNC system to view the PO alerts in the alert monitor screen. SAP SNC has a web user interface for the suppliers, allowing them to log on using only a web browser. The supplier can search for PO alerts via search criteria, such as product, location, or type of alert (show all New PO alerts for example). Once the new PO alert has been found, the supplier can display the details of the alert, including date, time, location, PO number, and product of the new PO. In the case of purchase order items that belong to a group, the successor supplier will have the goods recipient view of the preceding purchase order item so that they are aware of when the preceding order is processed, which supplier is processing it, and if it is on time. The successor supplier does not have detailed views of preceding purchase order items.

    Exceptions can be created for purchase order items that inform the customer or supplier about a delivery-relevant issue for a purchase order item. For more information about purchase order item exception, see SAP Library for SAP Supply Network Collaboration at http://help.sap.com under   Purchase Order Collaboration   Special Topics in Purchase Order Collaboration   Purchase Order Item Exception  . You can only use this purchase order item execptions, if you have activated the Supply Network Collaboration 1 (SCM_SNC_GEN_1) business function in SAP SNC.

  3. Display details of new purchase order (SAP SNC)

    The supplier can navigate to the PO screen in SAP SNC directly from the alert monitor screen itself or via the regular menu tree. Using the regular menu, the supplier can either go to the PO Overview screen where several POs can be displayed in a list format and select one PO and go to the PO Details screen, or go to the PO Details screen directly. Once the supplier navigates to the PO Details screen, the entire PO is visible, including the header and the different line items with product numbers, aggregated quantities, price, and shipping information. SAP SNC also displays the schedule lines of each item in the PO. These are sub-line items that contain information on delivery and shipping dates. One PO item can have several underlying schedule lines, each with different dates and quantities. The customer batch number for the product at item level or for a product at component level (in the case of a subcontracting PO) including characteristic values for a classified batch-managed product can be displayed in the PO. The product configuration can be displayed at item level and component level.

  4. Create and send purchase order confirmation (SAP SNC)

    The supplier can create order confirmations for the POs sent by the customer. The confirmations are a reflection of the supplier's capability to deliver the requested product, meaning changes to the dates or quantities requested by the customer in the POs. The supplier can create these confirmations via the following web user interfaces of SAP SNC:

    • PO Worklist

    • PO Details

    • Supplier Confirmation

    Note Note

    When the supplier creates a purchase order confirmation in SAP SNC, he or she can specify a different customer batch number for a subcontracting component in the case of a subcontracting PO.

    End of the note.

    The confirmations are sent back to the customer's ERP system using standard IDocs, this indicates to the customer and the ERP system which dates and quantities the supplier is confirming. Only if confirmations are MRP relevant do subsequent MRP and planning functions in SAP ERP use this information accordingly. The confirmation can be done on item or schedule line level on the PO in SAP SNC. The results are copies of the request schedule lines, called confirmed schedule lines. Only the confirmed schedule lines can be changed by the supplier. Only date and quantity fields are changeable. The supplier can create a number of confirmed schedule lines against one request schedule line, sometimes referred to as line item split. Once the supplier has completed the confirmation step for PO items or schedule lines, the confirmation can be published from SAP SNC to the customer's SAP ERP system.

  5. Update and send change purchase order (SAP ERP)

    The internal planning situation causes the customer to change the existing PO in the ERP system, such as the delivery date, and quantity needed for one or more items. The changes to the PO are sent out from the ERP system as a change PO using standard IDoc communication. The supplier receives the change PO in SAP SNC. The customer can send multiple change POs one after the other, in case the requirement situation changes. A change PO has the same PO number as the original PO.

  6. Check for change purchase order in Alert Monitor (SAP SNC)

    As in the "Check for new purchase order item in alert monitor" step, the supplier can for example be alerted to the changed PO item by an e-mail notification or by using the alert monitor screen in the SAP SNC application. The user can search the alert monitor screen for alerts using multiple search criteria, such as product, location, or alert type. The alert monitor screen also offers a statistical view in which the user can sort and list grouped alerts based on alert group, type, product, and location. Once sorted, the user can select the grouped number of alerts (displayed as a hyperlinked number) which will be listed as individual alerts in the details section. Once a new alert has been found, the supplier can display the details of the alert, including date, time, location, PO number, and product of the change PO.

  7. Use PO Worklist to confirm and publish POs

    As in the "Create and send purchase order confirmation" step, the supplier can create a new confirmation for the change PO, indicating the delivery capabilities for the change PO requirements. You can use the PO Work List screen to list all PO items due for confirmation, such as new POs or change POs as well as published, cancelled or blocked POs. The supplier can confirm and send purchase order items to the customer back-end system in one step (default) or by using two steps described below:

    1. Use PO Worklist to find and confirm changed PO (SAP SNC)

      You can select the To be Confirmedquery to display to the supplier the POs that need confirmation. The supplier can change the delivery date and the quantity for the items and schedule lines and send this back to the customer's ERP system for update of the confirmation data. The supplier can configure the SAP SNC application to allow the creation of multiple confirmation messages which can be sent without having to receive change POs from the customer first. The configuration can be done on a product and location level of granularity.

    2. Use PO Worklist to publish confirmation (SAP SNC)

      After completing "Use PO Work List to find and confirm changed PO" the confirmation has still not been sent to SAP ERP and as such supplier confirmations are not displayed on customer side. You can publish the confirmations by choosing To be Published in the PO Work List screen. Choose the relevant confirmations and choose Publish to publish the POs to SAP SNC. Once published the POs disappear from the PO Work List screen to make it easier for the supplier to have a clear overview of unpublished POs.

  8. Display due list for purchasing documents (SAP SNC)

    The Due List for Purchasing Documents screen in SAP SNC is used to search for the POs due for shipment to be able to create the advance shipping notifications (ASN) and perform the goods issue or delivery on time. In the PO Details screen the supplier can use the create ASN function of the individual POs when shipping or creating ASNs. Alternatively, the supplier can directly access the "Create ASN" screen and manually reference or assign the correct PO and item number to each item. The Due List for Purchasing Documents allows selection of PO items from different POs (also from Releases or POs created as part of the SMI process) when creating an ASN, as long as the ship-from and ship-to locations are the same in the various order documents (POs). The Due List for Purchasing Documents keeps track of already created ASNs so that only the outstanding quantities are displayed here. Generally, partial shipments are possible in SAP SNC. The supplier can search for outstanding purchasing documents via several criteria, such as product, location, and goods recipient. Once the search results are displayed in the list, the supplier can select one or a number of items for inclusion in the ASN.

  9. Create a quality notification (SAP SNC or SAP ERP)

    A supplier or customer can create a quality notification at any point of the purchase order process. The supplier creates a new quality notification in SAP SNC to inform the customer about a certain defect or deviation that has occurred, for example, during production or for certain subcontracting components, by using the Create Quality Notification screen. The customer creates a quality notification in SAP ERP to inform the supplier about a certain defect or deviation, for example, to record any problems with a delivery. Both parties can use the same defect type codes in order to describe the problem in detail. The quality notification can reference a particular product, purchase order, work order, or ASN to provide information about the context of the problem. In addition the customer and supplier can send notes about the problem using a long-text field. Integration with cFolders is possible if, for example, the customer or supplier want to exchange pictures or documents that are direct linked to the quality notification. When a customer saves the quality notification in SAP ERP (or when the supplier publishes the quality notification in SAP SNC), the system sends the quality notification to the respective system where is it visible to the respective partner.

    You can only use this process step if you have activated the Quality Management: Extensions in FMEA and Q-Notifications (OPS_QM_EXTENSION_2) business function in SAP ERP and the Supply Network Collaboration 1 (SCM_SNC_GEN_1) business function in SAP SNC.

  10. Change quality notification (SAP SNC or SAP ERP)

    After a new quality notification has been updated in the relevant system, the user will get an alert or workflow that a new or changed quality notification has arrived in his or her system. The supplier can view the quality notification in SAP SNC. The customer can view the quality notification in his ERP system. The user investigates the recorded problem or deviation and tries to internally solve this problem. He can react to the reported problem topic by answering the quality notification. By saving (SAP ERP) or publishing (SAP SNC) the quality notification, the changed quality notification is sent back to the other system.

    You can only use this process step if you have activated the Quality Management: Extensions in FMEA and Q-Notifications (OPS_QM_EXTENSION_2) business function in SAP ERP and the Supply Network Collaboration 1 (SCM_SNC_GEN_1) business function in SAP SNC.

  11. Create advanced shipping notification (SAP SNC)

    Once the items for the ASN (in the results list for the Due List for Purchasing Documents) have been selected, the supplier can copy the items to the Create ASN screen in SAP SNC and complete the ASN with additional information as needed. Examples of additional header data are Grouping ID, Bill of Lading ID, Freight Invoice No., Means of Transport, Incoterms, Carrier Party, Weight and Volume ,and Unloading Point data. Examples of additional item data are Batch No., Manufacturing Date, Best Before Date, Country of Origin, and Dangerous Goods Class. Packaging capability is an optional functionality in the ASN. Using this functionality (which requires added configuration and master data setup not covered in this process description), the supplier can organize the ASN items into handling units that describe the hierarchy of how the products are to be packaged for the physical shipment (for example 10 products in a box, 20 boxes in a crate, and 4 crates in a pallet). The functionality includes label printing with bar codes.

    For more information about packaging capability, see the Industry Scenario Configuration Guide for Release Processing (Automotive).

  12. Publish advance shipping notification (SAP SNC)

    The ASN can be created and first saved as a draft, meaning it is not yet sent to the customer. In this status the supplier can change or delete anything in the ASN. To send or publish the ASN message from SAP SNC to the customer's EPR system choose Publish ASN. The ASN is sent to the SAP ERP system where it is stored using standard confirmation functionality (confirmation of type shipping notification on the PO item). For more information about ASN handling and the subsequent goods receipt process in SAP ERP, see Inbound Processing and Receipt Confirmation with Warehouse Management in SCM.

  13. Receive proof of delivery (SAP ERP)

    Once the goods receipt processing has taken place in SAP ERP, the customer sends a message to SAP SNC indicating this fact. The message is called Proof of Delivery and is a standard IDoc in SAP ERP. For more information about ASN handling and the subsequent goods receipt process in SAP ERP, see Inbound Processing and Receipt Confirmation with Warehouse Management in SCM. The Proof of Delivery message changes the status of the ASN from "published" to "goods receipt complete" in SAP SNC, indicating to the supplier that the shipment has arrived at the customer's site.

  14. Update status to goods receipt complete (SAP SNC)

    The customer can alternatively set the goods receipt status on the ASN in SAP SNC manually via the web user interface of SAP SNC, intended for ad hoc situations. This does not update the customer's SAP ERP system, it is a setting in SAP SNC only. Partial goods receipts on ASNs are also possible in SAP SNC.