Automotive Consulting Solution

Multi-Level Third-Party Order Processing with Scheduling

Agreements/Single Orders
Agenda

1. Benefit for the Customer

2. Description of the Function
3. The Function in the System
4. Technical Information

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Customer Benefit

Solution
 Proven solutions/services of SAP Automotive Consulting
 Solutions already running productive at several customers
 Solutions and documentation are available in German and English

Cost  Exact calculation of implementation cost. Implementation for fixed price

 6 months of free follow up care operations for bug corrections starting at
the date of installation within the development landscape. Afterwards
chargeable consulting support starts
 No additional ongoing costs (i.e. maintenance cost)

Time
 Prompt implementation possible
 Defined timeframe for implementation

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Agenda

1. Benefit for the Customer

2. Description of the Function
3. The Function in the System
4. Technical Information

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Description of the function - Overview

 Process overview Single-Level Third-Party Order Processing

 Single-Level Third-Party Order Processing with Scheduling Agreements

 Process overview Multi-Level Third-Party Order Processing

 Multi-Level Third-Party Order Processing with Scheduling Agreements

 Multi-Level Third-Party Order Processing with Single Orders

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Process overview Single-Level Third-Party Order
Processing

Third-party
Customer Supplier
vendor

Invoices to
customers

Deliveries
Physical delivery
to
customers

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Single-Level Third-Party Order Processing with
Scheduling Agreements
Third-party
Customer Supplier
vendor
Prel. Forec. del. sched./ SD Sched. Forec. del. sched./ SD Scheduling
JIT del. schedules Agreement JIT del. schedules agreement
planning
MM SA Demand planning
MM Sched. Demand
Agreement planning
Monitor Third- Production
Party Order
Processing
Goods

Inbound delivery
receipt OB-delivery

IB-delivery
Assembly Delivery

Third-Party
Delivery (OB)
ASN
Invoice
Invoice Invoice
verification
Self Billing Invoice Invoice
verification Invoice
Self Billing
ASN Customer

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Process overview Multi-Level Third-Party Order
Processing

Sales Unit/ Third-Party

Customer Headquarter Vendor
Supplier

Bills to the
customer

Orders Forwards the

always order

or

Delivers itself
to the
customer

Delivers to
the
customer

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Process overview Multi-Level Third-Party Order
Processing

In contrast to the Single-Level Third-Party Order Processing so called sales

units, which are the direct contacts for the end customer have to purchase their
material always from the headquarter.
According to the situation:
 a production location is located near the end customer
 certain customers are always supplied by certain locations
 certain materials are produced only in one location

it is decided or maintained if the assignment is forwarded to a Third-Party Vendor

(Multi-Level Third-Party Processing) or if the headquarter itself occurs as Third-
Party Vendor (Single Third-Party Order Processing). This decision is done
automatically via a control table at the creation of the sales order or SD
scheduling agreement.

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Multi-Level Third-Party Order Processing with Scheduling
Agreements

Third-Party
Customer Sales unit/Supplier Headquarter Vendor

MM-
SD-sched. agreement SD-sched. agreement
FDS Demand planning FDS Demand planning FDS SD-sched.
scheduling JIT DS JIT DS JIT DS
MM-sched. MM-sched. agreement
agreement
agreement agreement

Monitor Third- Monitor Third-

Party Order Party Order
Processing Processing

Inbound delivery
Inbound delivery

GR-inbound
GR-inbound

GI-delivery
GI-delivery

Delivery

delivery
Delivery

delivery

Third-Party Third-Party Delivery /

ASN ASN Goods
issue

Invoice Invoice/ Invoice Invoice/ Invoice Invoice/

Invoice Invoice Invoice
verification Self Billing verification Self Billing verification Self Billing

Goods ASN to customer

receipt

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Multi-Level Third-Party Processing with
Single Orders
Third-Party
Customer Sales unit/Supplier Headquarter Vendor

Purchase Purchase Single Order Purchase Single Order Purchase Single

Order order Demand planning order Demand planning order Order
Purchase Order Purchase Order

Monitor Third- Monitor Third-

Party Order Party Order
Processing Processing

Inbound delivery

Inbound delivery
GR-inbound

GR-inbound
GI-delivery

GI-delivery
Delivery

delivery

Delivery

delivery
Third-Party Delivery/
Third-Party
ASN ASN Goods
issue

Invoice Invoice/ Invoice Invoice/ Invoice Invoice/ Invoice

Invoice Invoice
verification Self Billing verification Self Billing verification Self Billing

Goods ASN to customer

receipt

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Motivation

In addition to the topics, which already apply for the Single-Level Third-Party Order
Processing like e.g.:
 Connection of „external Third-Party Vendors“, which shall not work in one‘s own system by using standardized
messages/interfaces
 Automated processing of the third-party process to minimize manual effort („cross-system third-party order
processing“)
 Concentration on alerts at the supplier („Monitor for third-party order processing“), to minimize manual effort
 Support of all SAP standard functions (e.g. Self Billing/Invoice verification in sales and purchase)
 Traceability/Reporting (Creation of documents, „Monitor for Third-Party Order Processing“)
 Usage of synergies through shorter transportation routes, lower transport costs or tax advantages

The following criteria can be the reason for implementing a Multi-Level Third-Party
Order Processing:
 Central management of pricing: By specifying the procurement of all materials via the headquarter, prices for
the sales units can be managed centralized.
 Central buying: Achievement of better conditions in procurement of material through centralization into one
corporation (Headquarter)

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Cross-company selling vs. Multi-Level Third-Party Order
Processing

Decision cross-company selling vs. Multi-level Third-Party Order Processing:

 If suppliers do not work in one‘s own system cross-company selling is not possible.
Mixing of processes, partly cross-company selling, partly Multi-Level Third-Party Order
Processing therefore should not be aimed at.  process harmonization
 With cross-company selling the availability can be checked in the delivering plant during
order creation whereas with scheduling agreements normally no availability check is
executed
 With a classical customer-vendor-relationship, which is reflected by Third-Party Order
Processing, e.g. all CO reports can refer directly to the standard documents. No
enhancements are needed, which would be needed for classification during cross-
company selling
 As part of a corporate group, which consists of many corporations from an IT perspective
it is much easier to „extract“ a company code if it is already bound by a customer-
vendor-relationship
 Partly, a considerable effort emerges to enhance further ACS like e.g. incoming
orders/orders for cross-company selling

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Project relevant topics I

 Creation of master data (customer master, material master, pricing conditions, purchasing
info records, …)
 Timely transmission of changes to the Third-Party Vendors:
 With scheduling agreements mainly through the forecast delivery schedule (change of unloading
point).
 With single orders through a separate change program, which forwards changes to the subsequent
documents.

 Export and foreign trade topics

 Country specific Requirements: e.g. ascending invoice number without gaps, pro forma
invoice
 Value tax determination: Very complex handling/requirements in the Multi-Level Third-Party
order processing
 Consideration in reports/evaluations (double turnover in processes between single
corporations of a corporation group)  Classification possible e.g. through own Third-Party
Plant

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Project relevant topics II

 Handling of returns and return deliveries

 Competencies in the returnable packaging logistics, handling of packaging materials
 Traceability (Batches, handling units)
 Connection of Third-Party Vendors e.g. via EDI / WEB / fax
 Usage/Integration of further ACS possible:
 Usage of the ACS Exit-Control-Framework especially in the EDI inbound and outbound processing
 Usage of the ACS Delivery Service Level
 Usage of the ACS Vendor Evaluation
 Usage of the ACS Orders on hand/Incoming orders

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Project relevant topics III

During creation of the single order or the SD scheduling agreement for the end customer it
should be decided automatically if a single or Multi-Level Third-Party Order Processing is
existing. Two steps are to be taken into consideration here:
 Determination of the right item category so that the forwarding of the demands and the information can
be controlled
 Recording of the information if a Single- or Multi-Level Third-Party Order Process is existing to provide
the tax determination with information (e.g. country codes of the involved business partners: end
customer, sales organization, headquarter, Third-Party Vendor) accordingly
 Consistent prices between purchase and sales of the involved corporations/company codes. Through
customizing it can be adjusted e.g. that the purchasing prices use the price determination of the sales
organization of the supplier if the business partners are in one system and client
 Re-referencing of the item category during creation of orders with reference to the quotation

Order confirmations of Third-Party Vendors have to be forwarded to the customer: e.g. by

creating the outgoing message to the end customer as soon as the confirmed date receives a
correct date value

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Agenda

1. Benefit for the Customer

2. Description of the Function
3. The Function in the System
4. Technical Information

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The function in the system - Overview

 Cockpit

 Change Monitor for Single Orders

 Document Flow Monitor

 Monitor for Incoming Third-party Shipping Notifications

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Cockpit – Overview Third-Party transactions

For a better overview, the relevant Third-Party transactions are consolidated in a cockpit.

The transactions listed in the cockpit also contain parts of the additional ACS for an automatic
master data check and master data creation.

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Change Monitor for Single Orders – Selection

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Change Monitor for Single Orders – Output list

Output list before the changes were forwarded:

Output list after the changes were forwarded:

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Change Monitor for Single Orders – Selection of functions I

After an order was created in the sales organization and forwarded automatically to the
Headquarter and the Third-Party Vendor it can happen that nevertheless changes have to be
made which therefore have to be forwarded to the corresponding documents (purchasing
order and sales order).
The program can be scheduled in a job in the background to forward changes automatically.
The following changes are currently taken into consideration:
 Shipping conditions on header level
 Delivery block on header level
 Address changes or changes of the partner number of the ship-to party on header or item level
 Change of the order quantity on item level
 Change of the rejection code on header or item level
 Change of the delivery date in the schedule line

These changes can be done when the order of the Third-Party Vendor is still open. Otherwise
the change cannot be saved.

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Change Monitor for Single Orders – Selection of functions II

The following functions can be executed in the monitor:

If a change has already been done manually in the subsequent documents
the registered change record can be marked as completed via this button.

Via this button the selected changes are executed in the subsequent
documents.

If a change is obsolete and the no longer relevant for the subsequent

documents the registered change record can be deleted via this button.

Duplicate changes to an order can be compressed by this button.

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Document Flow Monitor - Selection

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Document Flow Monitor – Output list

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Document Flow Monitor – Selection of functions

Colorful characterization of the content of the columns according to the belonging of the data
to the respective role in the process:
 Yellow columns: data content of the Sales Unit/Supplier
 Blue columns: data content of the Headquarter
 Green columns: data content of the Third-Party Vendor

Starting point in the selection is only possible with the sales view of the sales organization.
+ Possibility to jump into the scheduling lines of individual orders and into the
view of forecast delivery schedules of scheduling agreements.
Print order confirmation: for the message type selected on the selection
screen e.g. BA00 – order confirmation the primary processing is triggered.
This function is only intended for orders not for scheduling agreements.
Refresh document flow: the output list is refreshed and the data selection
is triggered again.

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Monitor Third-Party Shipping Notifications – Selection

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Monitor Third-Party Shipping Notifications – Output list

A detailed description of the monitor‘s functions are available in the separate ACS presentation
„Third-Party Order Processing with Scheduling Agreements“.

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Agenda

1. Benefit for the Customer

2. Description of the Function
3. The Function in the System
4. Technical Information

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Technical Information

Available for SAP ERP ECC 6.0

Activation of automotive industrialized solution in SAP ERP System not

necessary

Technical installation is possible remotely

Modification-free

Delivery in Z-namespace

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Source of Information

Internet
Overview-, Detail- and Customer presentations
 http://www.sap.com/acs

Email - distribution list

Signing up through mario.rebitzer@sap.com

OSS-System
Notes (Search term: Automotive Consulting Solutions)
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Thank you!
Mario Rebitzer
Platinum Consultant
Industry Area Automotive

SAP Deutschland SE & Co. KG

Hasso-Plattner-Ring 7
69190 Walldorf, Germany

M +49/ 170 22 00 287

S +49/ 6227 7 44674
E mario.rebitzer@sap.com
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