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User Experience Insights

Rejected Quantity Collaboration with Supplier on Ariba Network

Background

Digital Supplier Network membership (DSN) offered by SAP Ariba helps in establishing an ecosystem where buyer community and supplier network can exchange transactions digitally, such as- Purchase Order, Order confirmation, Advance Ship Notice, Good Receipt notifications and Invoice/Credit submission. Likewise, DSN, SAP Ariba has other solution which offers more advance features of buyer and supplier collaboration, known as Supply Chain Collaboration (SCC) solution.

This blog specifically concentrates on one of the DSN features, i.e. Good Receipt Notification for the rejected goods.

System Details

SAP Ariba: Commerce Automation SNAP version

ERP system: S4 HANA on Premise

Middleware: CIG

Scenario

The standard solution offered by SAP Ariba in DSN offers supplier- the visibility of goods receipt by the buyer in his/her system basis the shipment done by the supplier. Supplier submits the ASN in Ariba system which creates an automatic Inbound delivery in S4 HANA system. Customer then perform Good receipt using t-code: MIGO and then decide the acceptance/rejection of quantity basis the quality and other parameters.

This feature works perfectly fine in case the customer accepts full quantity in the shipment. For example, if my ASN is for 100 KG quantity and buyer on receipt of shipment, accepts full 100 kg. An automatic output message is triggered from S4 HANA to supplier on AN, displaying the details of good receipt done by customers.

However, if in case, there is rejection of some quantity, for example, out of 100 kg, let say 20 kg is being rejected due to bad quality or damage and client only accept 80 kg, no output is triggered from S4 HANA system to supplier notifying him/her for rejected quantity. Supplier only receive notification for 80 quantity. This feature is available in advance solution of collaboration, i.e. Ariba SCC but not in Ariba Commerce Automation or DSN.

The standard out of the box functionality does not provide supplier with complete visibility of the shipment and its goods receipt status. Supplier has to manual connect/collaborate with buyer to check what is the status of shipped goods, especially in case of partial receipt.

Above cited scenario is one of the problem statements faced by our client as their daily delivery volume was very high and return/rejection contribute to 5-6% of the total shipment/delivery done on daily basis. Hence, manual exchange of information was not acceptable solution for them.

Solution Performed

As stated above, the standard SAP Ariba solution in DSN only offers goods receipt for movement type (101), i.e. full accepted quantity. However, whenever there is goods rejection or returned done by the customer against the same shipment/inbound delivery, the system does not trigger output to supplier.

To achieve this solution, we implemented below steps in S4 HANA to trigger output to supplier for goods returned (122) against same shipment/inbound delivery

  1. Configured output type for application: ME (Inventory Management) in t-code: NACE
    1. Output type: WE03
    2. Medium: 8- Special Function
    3. Dispatch time: 4- Send Immediately
    4. Program: ARBCIG_RECEIPT_PUBLISH
    5. Form: SEND_GOODSRECIPT_SAVED
  2. Maintain condition records for output type: WE03
    1. Trans/Event Type: WQ
    2. Print Version: 03

 

  1. After maintaining the above setting, make an enhancement in BADI: ARBCIG_RECEIPT_UPDATE

 

Method: IF_EX_ARBCIG_RECEIPT_UPDATE~UPDATE_RECEIPT_DETAILS

Write below logic, so that program should only include the line item which have movement type: 122 and excludes any other line item such movement type: 321

 

With the above enhancement in place, we were able to provide our client the solution where their suppliers are now able to get notification for returned quantity against same PO/Inbound delivery on their Ariba network using Commerce Automation Solution.

Conclusion

Standard SAP Digital Supplier Network membership offers only offers Good Receipt notification for accepted quantity only. But with above small enhancement on ERP side, we can extend the out of the box solution of Good receipt notification to return goods against same purchase order for which a partial quantity is being accepted.

Above solution will work in addition to Return PO solution offered in DSN. Return PO solution works when client has accepted full quantity and later during usage of material in production line, they find some defects or damage. However, with above enhancement in place, one can send the return notification supplier for the same PO.

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