SAP Enhancement Package 3 for SAP SRM 7.0 Release Notes
SRM_SOC_OPT: Business Function SRM, Sourcing Optimization
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP04, the business function SRM, Sourcing Optimization is available.This business function contains the Sourcing Search Optimization feature.
You can use Sourcing Search Optimization to optimize the search during sourcing of documents on HANA database or a non-HANA database. You can also experience improved performance.
Effects on Customizing
To use SRM, Continuous Innovations, you must first activate the business function in Customizing for SAP Supplier Relationship Management under SRM Server --> Activate Business Functions
You define the Customizing settings for the function, Sourcing Search Optimization, in Customizing for SAP Supplier Relationship Management under SRM Server Cross Application Basic Settings Sourcing Activate/Deactive Sourcing Search Optimization.
Optimization for POWL
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP03, you can use the optimization in Personal Object Worklist (POWL) to ensure a faster display of shopping carts in POWL.
Effects on Existing Data
There is no change in the existing data.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under:
SRM Server> Business Add-Ins --> Control POWL Optimization--> BAdI: Enhance Search Criteria and Result Set for Faster POWL
SRM_CONT_IMPR: Business Function SRM, Continuous Improvement
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.0), the business function SRM, Continuous Innovations is available. This business function contains the enhancements described in the following release notes:
o Mandatory Fields
o Central Substitution
o Workload Redistribution
o Automatic Enlargement of Long Text Boxes
o System Messages
o Purchase Order Header Condition
Effects on Customizing
To use SRM, Continuous Innovations, you must first activate the business function in Customizing for SAP Supplier Relationship Management under SRM Server --> Activate Business Functions
SRM_CONT_IMPR: Mandatory Fields
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP02, if you activate this function, the system displays an asterisk in all the fields that are marked as mandatory in the metadata.
If any of the mandatory fields are empty, the system displays an error message and the corresponding field is highlighted with a red frame. When you click the link in the error message, it indicates to the corresponding empty field.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under
SRM Server --> Cross-Application Basic Settings--> User Experience --> Activate/Deactivate Mandatory Field
See also
Release Note SRM_CONT_IMPR: Business Function SRM, Continuous Innovations
.
SRM_CONT_IMPR: Central Substitution
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP02, You can use Central Substitution to specify another colleague as a substitute who can take over specific tasks assigned to you if you are absent from the office. You can create substitution rules for planned or unexpected absences
Previously it was possible to specify a substitute for team purchasing tasks as part of SRM user settings. Workflow substitutions were maintained in UWL or SRM Inbox. There was no substitution function for sourcing application. The substitution function has been centralized so that you can now use a single screen to create substitutes for team purchasing, sourcing and workflow.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under
SRM Server --> Cross-Application Basic Settings--> User Experience --> Activate/Deactivate Mandatory Field
See also
Release Note SRM_CONT_IMPR: Business Function SRM, Continuous Innovations
.
SRM_CONT_IMPR: Workload Redistribution
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP02, You can use Workload Redistribution for individual shopping cart items to change the purchasing group or purchasing organization, designate shopping cart items to be assigned automatically, and redistribute shopping carts that are relevant for the sourcing application only.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under SRM Server --> Cross-Application Basic Settings-->Sourcing --> Activate/Deactivate Workload Redistribution in Sourcing Application
See also
Release Note SRM_CONT_IMPR: Business Function SRM, Continuous Innovations
SRM_CONT_IMPR: Automatic Enlargement of Long Text Boxes
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP02, you can get enlarged long text boxes for shopping carts and purchase orders. This improves the readability of the long text, as you can view all of the text on the screen. You can also enter new text or modify existing text on the same screen. In earlier releases you use the scroll bar to view the text in the long text boxes.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under SRM Server --> Cross-Application Basic Settings --> Activate/Deactivate Automatic Enlargement of Long Text Boxes
See also
Release Note SRM_CONT_IMPR: Business Function SRM, Continuous Innovations
SRM_CONT_IMPR: Display of System Messages (TA SM02) in Portal and NWBC
Use
As of SAP Supplier Relationship Management 7.0 (SAP SRM 7.0) and higher you can view the system messages (created in TA SM02 in the backend system) in Netweaver Portal and NWBC.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under SRM Server --> Technical Basic Settings --> Activate or Deactivate System Messages.
See also
Release Note SRM_CONT_IMPR: Business Function SRM, Continuous Innovations
SRM_CONT_IMPR: Purchase Order Header Condition
Use
As of SAP enhancement package 3 for SAP Supplier Relationship Management 7.0 (SAP SRM 7.03) SP02, you can enable purchasers to set a condition at the header level on the total amount of the order. For example, the purchaser can set a condition for a supplier who grants a discount if the total amount exceeds a certain value or include additional charges.
Effects on Customizing
You define the Customizing settings for this function in Customizing for SAP Supplier Relationship Management under
SRM Server --> Cross-Application Basic Settings--> Activate Purchase Order Header Condition
See also
Release Note SRM_CONT_IMPR: Business Function SRM, Continuous Innovations
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SCM Overview
Basics of Procurement
Procure to Pay
Types of POs
Accounts Payable
Vendor Maintenance E-Procurement
Procurement is an industrial term, otherwise known as Buying or purchasing.
Every Organization has a Sales team and Procurement team ,Sales Team contributes to the revenue generation (Profit centre),Procurement team contributes to the expenses (Cost centre),Buyer - One who purchases products / Services(Procurement),Seller / Vendor / Supplier – Provider of a Product / Services
Strategic Procurement
Acquiring Goods and Services required to complete the finished product, in right quantities, at right time and from right source.These activities are carried out under planning in P2P2P cycle
Tactical Procurement
Spot buying activities performed for those thresholds that are skipped by Strategic Procurement
Operational Procurement
Process of buying or purchasing goods/services for business use. This involves order creation /placement with vendors
Direct Sourcing Procuring goods/materials that directly become a part of a finished product/ commodity.
E.g. plugs, switches, batteries,
Indirect Sourcing Procuring goods/materials that do not become a part of a finished product/ commodity.
E.g. office supplies, tradeshows, furniture, professional services, IT, travel & fleet
Direct Vs Indirect Procurement
Procure to Pay
PURCHASE ORDER CREATION
A Purchase Order is a legal document which is prepared and sent by the procurement team to
the vendor with details of purchase of goods/services.
It is a sequential number assigned to purchase orders by the procurement team.
A PO document is prepared and sent by the procurement team to the vendor with details of
purchase of goods/services:
1. The products or services to be procured
2. Quantity of the goods
3. Total Price and per unit price
4. Unit of measurement
5. Name and address of the supplier and the buyer
6. Quality specifications
7. Payment terms
8. Place and date of delivery
9. Payment method
10. Other contractual agreements between the supplier and buyer
TYPES OF PURCHASE ORDER CREATION
Standard PO: Purchase order created usually for one time commitment to purchase goods or services. It is created when the buyer knows the details of the goods or services, estimated cost, quantity and delivery schedule.
Blanket PO: Details of the goods/services purchased from a specific vendor for a specific period known(1 year). Delivery dates and total amount of the PO are not available. Pre-negotiated pricing applies. Order Quantity can be increased as and when required. Blanket PO is also known as frame workorder.
Contract PO: A long term agreement (>1 year) with the suppliers with specific terms and conditions without indicating the goods/services that will be purchased. Standard POs are then created by the buyers. Negotiation takes place at the time of signing or expiry of the contract.
Catalog PO: Requestors directly place orders with the supplier. There is no buyer intervention. These are the frequently used placed orders.
Retrospective PO: also known as after the fact PO. Po is created in order to pay an Invoice as the goods/services have been already delivered /rendered. Operational Procurement is involved in creating Standard (Free text), Blanket (Frame work ), Retrospective PO.
ACCOUNTS PAYABLE
Accounts payable is one of the series of accounting transactions dealing with paying the
suppliers to whom one owe money for purchase of goods or services.
In day to day life, one performs this task by writing checks each month to suppliers like
the electricity board, telephone department, cable TV operator, the local newspaper
vendor, and so on.It is classified as a liability account and as such normally has a credit balance.
Business organizations which have become too large to perform such tasks by hand
generally use an accounting software/ ERP (Enterprise Resource Planning ) to perform
this task and may outsource these accounting activities to any service provider
TRANSACTIONAL ACCOUNTS PAYABLE
Now that you understand the AP process flow, let's look at How Transactional Accounts
Payable (TAP) fits into it.
Key stages before invoice gets paid:
Vendor Master Creation/Maintenance
Scan Invoice Stage
Indexing and Verification
Post Invoice Stage
Payment Stage
If the payments are not made on time, there would be queries received from the internal
and external customers which are handled by the query handling team or the customer
relations team.
VENDOR MASTER CREATION/MAINTENANCE
The Vendor maintenance team performs the following functions:
Creation of vendor records in the ERP/database after obtaining required documents. This request is received by the procurement team
Without the vendor account purchase order cannot be created.
Modification of Vendor Records: Making changes to the existing vendor records in the ERP.
Kinds of changes could be:
Address change
Payment terms change
Payment method change
Bank Information change
Delete Vendor Records:
When the vendor account is not used for a longer period (inactivity), there would be request from the buyer to delete the vendor record. If there is a duplicate account existing in the record, the duplicate vendor record is also deleted.
Block/Unblock Vendor Records:
Vendor account is blocked whenever there is a request from the buyer or there are payment rejections due to incorrect banking information.
The vendor account is unblocked after the necessary changes are made.
Critical details to ascertain while processing invoices are:
Vendor Name & address
Ship to Address
Invoice Number
Invoice Date
Bill to Address
Total Amount
Purchase Order Number
Vendor Address
Remit to Address
Payment Terms & Payment Method
Quantity & Unit Price
VAT */TAX & Exchange Rate
Stamp Date
Bar Code
*VAT (Value Added Tax) is the Standard Tax applicable for all the Purchases made.
INVOICE PROCESSING
Invoice number and Invoice date
Invoice Number is a sequential number which is assigned to invoices by the vendor
Invoice Number is unique for a given period
Invoice Date is the date on which aninvoice is prepared by the vendor. It is the basis on which the due date for payment is decided
Invoice date is used by the vendor for reference along with the invoice number for any information to be retrieved from the company and by AP team
Bill To address refers to the name and address of the organization that is liable to make a payment for an invoice
Bill To address is the criteria which will be looked into on receipt of invoice to confirm if the document pertains to the business Total Amount is mentioned on every invoice which is equal to the
amount agreed while procuring the goods/services. The total amount would be equal to the gross amount less the taxes equals the net amount.
Amount includes freight and taxes if applicable.
Ship to Address: The address to which the vendors ships the goods to the buyers warehouse. The
delivery details would be in the PO mentioning the ship to details.
Payment Terms: Lists the time duration set by the vendor for theAP team to make the payment.
Description: Contains the details of the product.
Remit to Address: The address at which the vendors request payment advice to be sent to.
Sample Invoice
