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Recap

It’s been a while now that we have had a pause on the sequels for the SAP SRM 7.0 Ehp2 series of Innovations carved into blogs that you can relate to

This one is specifically the one that catches my attention around Direct Materials procurement with SAP SRM, as it has been a pain area for me / many in the projects that we have executed with challenging clients

If you have read my blog on Plan Driven Procurement with Plant Maintenance with SAP SRM 7.0, you would have got the breadth of the complexity of getting the process working as desired for the customer end to end.

With innovations with the SAP SRM 7.0 Ehp2, such complexities are ought to be addressed more product driven than actually going ahead and developing it.

1.0 Topic Overview

Direct Material Procurement Innovations with SAP SRM EhP2

What’s coming: Direct Material procurement has been enabled for the Classic Scenario. In the Classic Scenario Purchase orders will be created in the ERP/ECC backend system

  1. Use of direct materials would create backend documents in the following scenarios:
    1. Ordering a shopping cart
    2. Carrying out sourcing for the shopping cart
    3. Carrying out sourcing for a purchase requisition transferred from the backend SAP ERP system

In a previous project, we had the issue of not being able to close the loop of the Purchase requisition when we create a PO to fulfill the request of a PR that has been treated from the SRM side, the design in the old way was that the system automatically treats the request as an Extended Classic scenario, we had to work our way using BADI’s to help close the loop b/w PR->SOCO->Sourcing->PO.

This very clearly resonates with the customer business challenges that exist with the process that we talked about in the above paragraph

  1. Direct materials scenarios limited to the extended classic deployment.
  2. This forced organizations to deploy extended classic for direct materials even when they want to deploy classic scenario

2.0 How did we do it before the EhP2? – A consultants approach

Used BADI, guess we have a great way out

BADI Name: BBP_PO_Inbound_BADI

Method: BBP_MAP_BEFORE_BAPI


Why did we use this?

This BADI is used to create a back-end Purchase Order from a BBP SRM EC Purchase Order, further the method BBP_MAP_BEFORE_BAPI is called before calling the PO create BAPI BBP_PO_CREATE1. We call this BADI to:

  1. Change the status from K to I generated by RFC default K coming in from SRM cannot be changed in ECC, this is done to overcome the Extended Classic PO to be changeable in ECC in ME22N, if this is not done the PO goes into ECC as a BBP Purchase Order and cannot be changed

The process in the old approach looked like this

PDP1.png

The new process with the Innovation would look like this

New Picture.png



Before the innovation, we had to tweak the process with some more BADI’s to help achieve what the Innovation kicks-in, so I am all excited as an SAP Procurement consultant to help reduce the development time for future projects for Direct Material Procurement with SAP SRM 7.0.

3.0 What business value does the Innovation bring in?

3.1   Flexibility with respect to deployment options.

Now you won’t have any constraints, if your process is heavily ECC or SRM driven, from both platforms, you would achieve what you need

3.2   Classic Deployment enabled for all categories of procurement including direct materials.

Direct Material procurement or in the traditional language as we call it BOM procurement constitutes to 60-70% of the spend, now you can source manage and honor those ECC sent requisitions and have a very tight closed loop process

Summary

  1. Thanks for tuning into these sequels, am sure that with SAP SRM 7.0 EhP2, you will have more power in your hands as an SAP Procurement consultant to help deliver those go-to customer implementations. In our next blog, we will discuss more about the RFx creation from shopping cart before approval (Quick quotes) and some more innovations from the Streamlined sourcing processes Innovation bundle…so stay tuned. Before you head-out, please be aware about the various outreach channels for SAP Procurement

4.0 How do I achieve it?

  1. Activate Switch: SRM_702_DIRECT_MATERIAL


5.0) SAP Procurement social_media outreach channels

Hope to see you sign-up and follow our via all our Social Media Outreach channels

SN3.png

6.0) SAP Procurement handles & Hash-tags to follow

SN2.jpg

Happy Reading….

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18 Comments

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  1. Ramakrishna Potluri

    Direct material procurement in classic deployment has been a demand of many customers. It is standard now in SRM 7.0 EhP2.

    Thanks Tridip for sharing the BADI workaround in use by many customers and now customers do not need this additional development anymore.

    As PO is created in ERP, it also paves the way for using of SUS for direct materials sourced through SRM.

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    1. Tridip Chakraborthy Post author

      Hey Ramki Ramakrishna Potluri,

      thanks for chipping in and emphasizing on the old v/s new, I am a strong believer in change, I think this new innovation is going to help the 60-70% spend that’s Direct Materials & this gives a great opportunity for greater spend to be managed via the SRM engine that people kept away from in the past, as it had to be done with significant workaround..

      Kudos to the SRM Solution Management & Development streams for this

      Cheers

      Tridip

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  2. Ritesh Raithatha

    This is excellent with EHP2, I agree with you Tridip as one of the client in past i worked due to this limitation dropped idea of sourcing direct material from SRM instead they opted old fashion route.

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  3. naveen rajan

    Hi Tridip,

    You are absolutely right, I knew I had it wrong. I missed the Direct part in the blog My bad. Excellent blog. Thank you for widening my horizon.

    Regards,

    Naveen

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      1. naveen rajan

        Hi Tridip,

        I worked on the sustainability aspect back in labs wrt to SRM and ECC where in there is a sutainability factor that helps the buyer to decide which bidder to go with, like the way we have Qualtiy and Delievery , smiliarly there is a new factor called sustainaiblity. I was involved in the development in ECC side of it. So it was interesting. Nice to know that you are coming up with the blog on it.

        Regards,

        Naveen

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      2. Indu Singh

        Hi Tridip,

        I gone through this blog and is quite useful.

        However would like to know , do we still need to setup the conventional DP_PROC_TYPE attribute with the RFC user a, entry channel and local pur org/group in the Org Structure

        How and which Pur group it will  identify.

        You input will be very helpful here.

        IS

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  4. Ronan Murray

    Hi Tridip,

    Thanks for putting this out there. I saw from the release materials that external requisitions can now also be used in SRM workflow. Do you know where in the process this will occur in Ehp2? Is it before or after the requisition gets to the sourcing cockpit? I’m currently working with a client who want to enable this and we are building an enhancement but the enhancement only allows the external requisition to go into SRM workflow before it gets to the sourcing cockpit, and not after. Is this feature enable in Ehp2 do you know?

    Thanks for any guidance,

    Ronan Murray

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    1. Tridip Chakraborthy Post author

      Hi Ronan Murray

      thanks for posting your feedback, are you talking about approval workflows ? Then SAP does not support it yet. It was partly done in ERP..where an option was given in EhP6 to trigger external workflow. But SRM side developments are not yet released intended to release in future.

      if you are talking about CPPR approach With eSOA services, this was available to bundle all of these with SAP SRM 7.0 and SAP ECC 6.0 ehp4 onwards

      Let me know, what is the exact doubt, is it an externally triggered workflow for the SHC or the CPPR flow?

      Regards

      Tridip


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      1. Ronan Murray

        Hi Tridip,

        I’m looking to trigger a workflow for the SHC which gets created from the external requisition in the Plan Driven Scenario from Plant Maintenance. My understanding of release documentation was that you could plug these into workflow in SRM as standard in Ehp2. On my current project we are building a complex development to achieve this and I was hoping to be able to say to my client that this will be enabled in Ehp2 but it sounds like fron what you’re saying it’s further on down the road in terms of the SRM development path. Is this right?

        Thanks,

        Ronan

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            1. Ronan Murray

              Hi Tridip,

              I got the below answer from Ramki;

              The PPT attached by you is a pre-release of SRM 702 to explain upcoming features in SRM 702.

              The feature “Workflow for External Requirements” was not released in SRM 702. It is in the roadmap but cannot commit exactly when it will be released.

              I will try to remember this conversation and inform you when it’s getting released.

              Thanks,

              Ronan

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  5. Yang Meng

    Dear Tridip,

    Thanks for your valuable information. We are now using this new function in SRM EHP2 for direct material. But what is troubling us is that since it is direct material, central contract can not be used in sourcing cockpit as a source of supply. So could you pls share any idea on this ?

    Thanks very much and best regards.

    Meng yang

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  6. Yosea Sibero

    Hi Tridip,

    We are using SRM 7.01 and we have tested that we could also overcome the restriction by:

    a. Create new account assignment category = S (stock), where all cost object is optional

    b. Map this account assignment category S to blank in ECC

    The flow process is user create SC and select account assignment category S, but no cost object is needed as all are optional. During sourcing, when we create PO (classic scenario), SRM will allow PO direct creation in ECC as it has account assignment and tick box direct material is not ticked. When it got to ECC, as it is mapped to account assigment blank (stock material), the PO created is stocked PO.

    We have tested and it seems to be working fine, and using this approach we will not have garbage PO in SRM.

    Best regards,

    Yosea

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  7. Dex Conan

    Hello, will this be useful also for extended classic scenario?
    Does this mean that POs for ordered as direct material will no longer have SRM local POs?
    And that these POs are editable in ECC?

    Thanks

    (0) 

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