Negotiation Functions

Use

On the Work Order Details screen, the customer and supplier negotiate the quantities and dates/times of the deliveries (transportation PIOs) and of the production PIOs. There are various functions available for the negotiation. The customer or supplier can use these negotiation functions to do the following:

Propose a delivery with a different quantity or different date/time
Propose production PIOs with a different quantity or different date/time
Propose production PIOs for components that are newly-added to the work order
Accept a PIO of the other business partner
Reject a PIO of the other business partner
Cancel his or her own PIO

The goal of the negotiation is to agree in the work order upon the plan PIOs with which the supplier is to comply. After the customer and supplier have reached an agreement for the work order, all the other PIOs that the business partners proposed during the negotiation and which are no longer relevant are canceled by mutual agreement.

The business partners use the negotiation functions primarily during the negotiation phase. However, the customer and supplier can still negotiate changes for the PIOs even if they have already agreed on a work order and the supplier might have already begun with production.

Note Note

You cannot change the phases of the work order. For example, you cannot do the following:

End of the note.

Change the sequence of the phases
Add new phases
Delete phases

Functions

Principle of the Negotiation and the Negotiation Phases

In the work order, a customer creates request PIOs, while a supplier creates confirmation PIOs. The customer is the owner of the request PIOs, the supplier owns the confirmation PIOs. In the case of a PIO that is still in negotiation between customer and supplier, only the owner of the PIO can make changes to quantity and dates/times. As well, only the owner can recall (cancel) a PIO. In the case of a foreign PIO, a business partner has the following options:

He or she can accept the PIO. Thus the PIO becomes a plan PIO upon which both business partners have agreed.
He or she can reject the PIO directly.
He or she can create a PIO with a different quantity and different date/time as counterproposal to the PIO and thus at the same time reject the PIO upon which the counterproposal is based.

A counterproposal PIO and the rejected PIO from which it was created remain connected. Negotiation actions for a PIO (for example, to the request PIO) automatically affect the other PIO (the confirmation PIO). This supports the consistent maintenance of the PIOs.

Negotiation of Changes Following an Agreement

If the customer and supplier have already reached an agreement for a PIO and then one of the business partners wants to make a change to this PIO, the business partners must agree to cancel this PIO and agree on replacement PIOs. If the business partner seeking the change executes the desired negotiation function on the PIO, the system creates a cancellation request for this PIO as well as a replacement PIO as counterproposal (in the case of splitting, multiple PIOs). If the other business partner accepts the cancelation request, the system cancels the PIO. If the other business partner rejects the cancelation request, the PIO remains unchanged and the system cancels the replacement PIO.

Negotiation-Relevant Statuses and PIO Types

Special PIO statuses and PIO types display the results of the negotiation actions. The following statuses are relevant for the negotiation of a PIO:

A PIO still in negotiation between the customer and supplier has the status INEG ( In Negotiation ).
A PIO that the customer and supplier have agreed upon has the status IAGR ( In Agreement ).
The statuses REJE and CNCL indicate that the PIO is rejected or canceled.
As long as a business partner has not yet published the work order, a processed INEG PIO has the status DRFT ( Draft ).
If a business partner creates a counterproposal to a production PIO created by the other business partner, the original production PIO receives the status EFAD ( Excluded from Adaptation ). The Adapt Work Order function does not adapt the status, the quantity, or the date/time of PIOs that have the status EFAD to changed deliveries. For more information, see Adaptation of the Work Order .

The following PIO types correspond to the statuses:

Request
Rejected request
Accepted request
Confirmation
Rejected confirmation
Accepted confirmation

Accepted request PIOs and confirmation PIOs are the plan PIOs with which the supplier must comply. For more information, see Work Order and Statuses in the Work Order .

Negotiation of Deliveries (Transportation PIOs)

On the Tracking tab page, in the delivery overview, the business partners negotiate the quantities, shipping dates/times, and delivery dates/times for the deliveries.

Note Note

Once a business partner has changed or created deliveries, the production PIOs have to be adapted to the changed deliveries and production PIOs have to be created for the new deliveries. SAP SNC can automatically adapt the production PIOs when saving the work order. If automatic adaptation is not configured, the business partner must call the adaptation function before he or she publishes the work order. For more information, see Adaptation of the Work Order .

End of the note.

Negotiation of Production PIOs

On the Instructions tab page, the business partners negotiate the quantities and dates/times of the production PIOs that belong to the deliveries (production runs) in the delivery overview.

A change in the quantity or date/time of a production PIO is "local", as is the change in status through acceptance, rejection, or cancelation of the PIO. A change does not influence the quantities and dates/times of the other PIOs that belong to the production run.

Negotiation Functions for the Customer (PIOs in Negotiation)

The following table provides an overview of the negotiation functions for the customer and is followed by an explanation:

Negotiation Functions for the Customer (PIOs with Status INEG)

Function	PIO Type	Use
Split Delivery	Request, Rejected Request	Create, from one request delivery, multiple request deliveries with different dates/times and different quantity (total quantity = original requested quantity) If there is already a confirmation delivery based on the request delivery, reject the confirmation delivery at the same time. Results PIO type Request , status INEG DRFT PIO type Rejected Confirmation , status INEG DRFT
Split Delivery	Confirmation	Reject the confirmation delivery and at the same time, create multiple request deliveries as counterproposal for this confirmation delivery (total quantity = quantity of the confirmation PIO) Results PIO type Request , status INEG DRFT PIO type Rejected Confirmation , status INEG DRFT
Change Quantity and Date/Time	Request, Rejected Request	Change the quantity or date/time of the request PIO If there is already a confirmation based on the request PIO, reject this confirmation PIO at the same time. If you are dealing with a rejected request PIO, reactivate the request PIO. Results PIO type Request , status INEG DRFT PIO type Rejected Confirmation , status INEG REJE DRFT EFAD
Change Quantity and Date/Time	Confirmation	Reject the confirmation PIO and at the same time, create a request PIO with a different quantity or with a different date/time (counterproposal). Results PIO type Rejected Confirmation , status INEG REJE DRFT EFAD PIO type Request , status INEG DRFT
Accept Confirmation	Confirmation	Accept the confirmation PIO If the confirmation PIO is based on a request PIO, cancel the request PIO at the same time. Results PIO type Agreed Confirmation , PIO status IAGR DRFT PIO type Canceled Request , status REJE CNCL DRFT
Reject Confirmation	Confirmation	Reject the confirmation PIO If the confirmation PIO is based on a request PIO that the supplier has rejected, reactivate the original request PIO at the same time. Results PIO type Rejected Confirmation , status INEG REJE DRFT EFAD PIO type Request , status INEG DRFT
Cancel Request	Request	Cancel the request PIO because it is obsolete, such as after the supplier has rejected the request PIO. Results PIO type Canceled Request , status CNCL DRFT

The negotiation functions are in the Function column. The Use column describes what you can achieve if you use the negotiation function for a request PIO or confirmation PIO ( PIO Type column) that is still in negotiation (status INEG ).

Negotiation Functions for the Supplier (PIOs in Negotiation)

The following table provides an overview of the negotiation functions for the supplier and is followed by an explanation:

Negotiation Functions for the Supplier (PIOs with Status INEG)

Function	PIO Type	Use
Split Delivery	Confirmation, Rejected Confirmation	Create, from one confirmation delivery, multiple confirmation deliveries with different dates/times and different quantity (total quantity = original confirmation quantity) If you are dealing with a rejected confirmation delivery, upon which a new request delivery of the customer is already based, reject this request delivery at the same time. Results PIO type Confirmation , status INEG DRFT
Split Delivery	Request	Reject the request delivery and create multiple confirmation deliveries as counterproposal for the request delivery (total quantity = original requested quantity) Results PIO type Confirmation , status INEG DRFT PIO type Rejected Request , status INEG REJE DRFT
Change Quantity and Date/Time	Confirmation, Rejected Confirmation	Change the quantity or date/time of the confirmation PIO. If you are dealing with a rejected confirmation PIO, upon which a new request PIO of the customer is already based, reject this request PIO at the same time. Results PIO type Confirmation , status INEG DRFT PIO type Rejected Request , status INEG REJE DRFT EFAD
Change Quantity and Date/Time	Request	Reject the request PIO and at the same time, create a confirmation PIO with a different quantity or with a different date/time (counterproposal). Results PIO type Rejected Request , status INEG REJE DRFT EFAD PIO type Confirmation , status INEG DRFT
Accept Request	Request	Accept the request PIO. If the request PIO is based on a confirmation PIO, cancel the confirmation PIO at the same time. Results PIO type Agreed Request , PIO status IAGR DRFT PIO type Canceled Confirmation , status REJE CNCL DRFT
Reject Request	Request	Reject the request PIO. If the request PIO is based on a confirmation PIO that the customer has rejected, reactivate the original confirmation PIO at the same time. Results PIO type Rejected Request , status INEG REJE DRFT EFAD PIO type Confirmation , status INEG DRFT
Cancel Confirmation	Confirmation	Cancel the confirmation PIO because it is obsolete, such as after the customer has rejected the confirmation PIO. Results PIO type Canceled Confirmation , status CNCL DRFT or REJE CNCL DRFT

Automatic Approval

When the supplier publishes the work order, the system compares the confirmation PIOs with the request PIOs. If the quantity and date/time of the confirmation PIOs match the request PIOs within the customer-defined quantity tolerances and date/time tolerances, the system automatically accepts the confirmation PIOs and cancels the request PIOs upon which the confirmation PIOs are based. For more information, see Automatic Approval .

Activities

If you want to execute a negotiation action for a PIO, select the PIO and choose the desired negotiation function.
If a business partner has executed negotiation functions in the work order, he or she must first publish the work order so that the other business partner can react to the proposals. (Both business partners can see the changes at all times.) For more information, see Publication of Work Orders .