New functionality to support subcontractor handling for waste management companies
Many waste and recycling companies have assigned third party companies to perform certain parts of their services such as transport or waste disposal. SAP Waste and Recycling inside SAP S/4HANA supports these subcontracting processes with a newly added functionality. It automatically creates the associated documents (purchase orders and sales documents) as well as posting any goods receipts required. As a response to the feedback from our customers we expanded the industry extension which includes now various processes and functions to achieve full integration of subcontractor processes.
Until now subcontractor handling only worked based on purchasing contracts in SAP Material Management (transaction ME31K/ME32K). For a supplier/transport company such a purchasing contract with transport material was needed while for an external waste management company the purchasing contract needed the respective waste material.
With the new functionality it is now possible to cover the subcontractor handling as well with a contract in SAP S/4HANA Sales and Distribution (transaction VA41/VA42) by setting up a purchasing contract with the according waste or transport material. This enables the maintenance of subcontractor contracts in the waste list of a service product for each waste material. Based on these entries, a purchasing contract will be found automatically in waste disposal order confirmation when posting the weighing record with the waste material. A purchasing order for the subcontractor, based on the information in the purchasing contract, will be created automatically.
This reduces the effort in finding purchasing contracts in order confirmation by maintaining it at the beginning of the process.
In case there is more than one contract found, it needs to be selected manually. To find and select a valid purchase or sales contract and their items in the waste list, a search help has been implemented for the new fields “Purchase Contract” and “Sales Contract”.
A check is provided to determine whether the external waste disposal facility has assigned a valid purchase or sales contract for the selected material in the system. The search help is prefilled with the waste material, the date, the supplier or customer and the external waste disposal facility.
The result list for the search help displays the valid purchase or sales contract items from which the user can select the correct one.
There are two key business scenarios which are covered by this solution:
- Waste disposal
The waste has to be picked up from the business partner and an order will be created (e.g. via the Interaction Center). This waste disposal order gets dispatched to a route which will be executed by a subcontractor. A specific truck with subcontractor plate and a specific supplier is maintained for this route. The order gets executed and the waste disposal order (or waste disposal order item) gets weighed.
With confirmation of the performed order execution through the subcontractor on waste disposal order or waste disposal order item level the respective purchasing contract gets automatically identified if there was none manually assigned before. This automatic search is based on the combination of supplier, configuration of transport material and contract type for subcontractors. In case there is more than one contract found, it needs to be selected manually. You can see the respective data in the tab subcontractor handling.
Based on the information from the contract and the confirmation the purchase order gets created.
The waste has to be picked up from the business partner and an waste disposal order will be created (e.g. via the SAP Waste and Recycling specific Interaction Center on top of SAP S/4HANA Service). The order gets executed and transported to an external facility. For this external facility the subcontractor is maintained as creditor/debtor in the system.
With confirmation of the performed order execution through the subcontractor on waste disposal order or waste disposal order item level the subcontractor sends a weighing record. Based on this information the purchasing contract can be identified automatically. In case there is more than one contract found, it needs to be selected manually. You can see the respective data in the tab subcontractor handling.
Based on the information from the contract and the external weighing record the purchase order gets created.
With this enhancement inside SAP Waste and Recycling and additionally the SAP Solution Extension SAP S/4HANA for waste and recycling by PROLOGA our customers will experience several benefits:
- reduced effort to creating purchasing contracts
- Enhance flexibility by enabling users to select between purchasing contracts or SD contracts for subcontracting processes.
- Increase transparency for employees by providing them with additional purchase order settings and search functionalities
- Reduced efforts to identify the respective purchasing contract in order confirmation by maintaining it at the beginning of the process
More details on how to make use of this new functionality please go to help.sap.com.
You are welcome to ask questions in our community under the tag SAP Waste and Recycling. You will also find questions from other interested parties there later.