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Procurement Visibility PDF
Procurement Visibility PDF
Scenario
Applies to:
SCM 5.0.
Supply Chain Event Management (SCEM) – Procurement Visibility using Web Communication Layer.
For more information, visit the Supply Chain Management homepage.
Summary
Supply Chain Event Management – Procurement Visibiltiy scenario enables the buyer and vendor
communication faster through web Inteface. Delays (or) Opportunities for improvement can be identified over
a period of time to improvise the procurement processes. We can meausre Supply Chain KPIs for business
partners (in this case, vendor) with SCEM in integration with Business Intelligence (BI). Planned and Actual
events and Unexpected events like delivery date change and/or Delivery Quantity change can be notified
due to short-supplies etc. Creation of Event Handlres can be controlled for different parameters from Source
ERP System. In this example, it is SAP.
Author Bio
Janakiram Katakam has over 13 years of experience in Supply Chain Management. He is a Senior Business
Consultant with 7+ years of experience in PP/PP-PI/WM/SNP Implementations / Upgrades and technical
Support. He has delivered on many complex projects in Energy Sector, Pharmaceuticals and Consumer
Products Industies.
Gopala Turaga has over 20+ years of experience in Supply Chain Management and is SAP Certified
Associate in MM, SD and CRM. He is a Senior Principal Consultant and Competency Lead for SAP Supply
Chain Event Management at Intelligroup with 12+ years of experience in functional MM/SD/PP/PP-
PI/WM/CRM implementations / upgrades. He has delivered many complex full cycle implementations and
rollouts at various capacities in manufacturing, public sector, petrochemicals, semi conductor and beverage
industries.
Table of Contents
Introduction to Supply Chain Event Management (SCEM) ................................................................................3
Procurement Visibility .........................................................................................................................................3
Expected Events.................................................................................................................................................4
Procurement Visibility
The Objective of Procurement Visibility scenario is to identify the events (activities) and notify the expected
(planned) dates for all activities when purchase order is created. Supplier and Vendor are able to access the
Events and improvise the process time to time.
The below schematic diagram briefly explains about the current example for ‘Procurement Visibility’ scenario
and importance of Expected / Actual / Unexpected Events.
Note: Standard SAP SCEM provides integration to Web Communication Layer (WCL) and necessary web components
to be activated. Basis consultant and Java expert would be helpful in this area.
Expected Events
Menu Path: SPROÆ Event Management Æ Event Handlers and Event Handler data Æ Expected Events Æ
Define Profiles for Expected Events
An Expected Event can be defined as an Event that describes the normal flow of the business process.
The expected events Receive Acknowledgement, Receive Advanced Shipping Notification, Receive Goods,
Receive Invoice and Payment are configured to display in the Event Handler for the Purchase Order (PO).
The duration of events are also configured in this transaction. For example, if Payment expected event
expected date need to be displayed after 30 days (720 Hours) from Receive Invoice expected date can be
configured here.
Note: During execution of expected events, actual dates are reported either through SAP or Web Communication Layer
(WCL).
Unexpected Events ( )
Unexpected Event can be defined as an Event which occurs unplanned in the flow of Business Process.
Below screenshot displays the unexpected events ‘Delivery Quantity Change’ and ‘Delivery Date Change’.
Statuses of Events
Status changes for Events can be traced in ‘Status Detail ’ tab.
Statuses Attribute Profiles and Status Attributes are configured in SCEM. Status Attribute Profiles are
assigned to Event Handlers.
Note: Event Handler is identified with Application Object Type (PCM10_ITEM), Purchase Order Number (4500018287)
Item number of purchasing document (00010).
Configuration Setup:
Default statuses assigned under ‘Define Status Attribute Profiles’ are displayed in Event Handler.
Menu Path: SPRO --> Event Management --> Event Handlers and Event Handler data --> Status
Menu Path: SPRO --> Integration with Other mySAP.com Components --> Event Management Interface -->
Define Application Interface --> Define SAP EM Interface Functions
Function Module /SAPTRX/XRA_MM_ITEM_PCM10 will ensure that Event Handlers get created only for
POs which satisfies defined Filter criteria (as highlighted in below screenshot).
Note: Custom Function Module can be built to create the Event Handlers for different parameters as per Business
requirements.
How the expected event dates and times are derived for Events?
PO Creation (document) date: 08/13/2009
1st Event: Event ‘Receive Acknowledgment’
Event ‘Receive Acknowledgment’ expected date = PO Creation Date + 5 days, 17:00:00
= 08/18/2009, 17:00:00
Note:
(1) Standard SAP has provided the Event, ‘Receive Acknowledgment’ with expected date as 5 days after ‘PO
Creation Date’. Based on business requirements, this number of days can be varied (or) different condition may be
maintained.
(2) Time is configured across all events as constant as 17:00:00 Hours. Based on business requirements, this Time
can be defined accordingly.
Event ‘Receive Advance Shipping Notification’ = Delivery date – Plnd delivery days, 17:00:00
= 08/30/2009 – 1, 17:00:00
= 08/29/2009, 17:00:00
rd
3 Event: Receive Goods
Receive Goods = Delivery date, 17:00:00
= 08/30/2009, 17:00:00
Configuration Setup:
Menu Path: SPRO --> Integration with Other mySAP.com Components --> Event Management Interface -->
Define Application Interface --> Define SAP EM Interface Functions
Function Module /SAPTRX/XEE_MM_ITEM_PCM10 has derived the Expected Events dates and times for
1st, 2nd and 3rd Events.
4th Event: Receive Invoice
Receive Invoice = Delivery date + 720 Hours, 17:00:00
= 08/30/2009 + 30 Days, 17:00:00
= 09/29/2009, 17:00:00
Configuration Setup:
Menu Path: SPROÆ Event Management Æ Event Handlers and Event Handler data Æ Expected Events Æ
Define Profiles for Expected Events
In the below screenshot, event duration is displayed as 720 hours for Event Code ‘RECEIVE_INVOICE’ from
Event Code ’RECEIVE_GOODS’.
Note: If ‘Receive Invoice’ occurs within the Event Duration 720 hours(30 days) after ‘Receive Goods’ Event, then, the
Event is treated as Regular Event.
All the Events are displayed with their descriptions and planned (expected) date and time.
Execute ‘Define Rule sets’ and select ‘PCM10_ITEM’ Rule set and display the SET_ACK rule.
Actual Date and time are displayed for event ‘Receive Acknowledgement’.
Configuration Setup: How the Actual date and time are derived:
Menu Path: SPRO --> Integration with Other mySAP.com Components --> Event Management Interface -->
Define Application Interface --> Define SAP EM Interface Functions
Function Module /SAPTRX/XET_MM_ACKNOWL_PCM10 will derive the Actual dates and times at Real
time for Event ‘Receive Acknowledgement’. Actual dates and times for events are extracted from 'Event Data
Extractors' from source system and transferred to SCEM
Event ‘Receive Advanced Shipping Notification’ is reported with date 08/11/2009 and time: 10:30:00. This is
the Delivery Date / Time entered in Inbound Delivery.
Configuration Setup: How reported date and time are derived as Delivery date and time for Event
‘Receive Advanced Shipping Notification’.
Menu Path: SPRO --> Integration with Other mySAP.com Components --> Event Management Interface -->
Define Application Interface --> Define SAP EM Interface Functions
Function Module /SAPTRX/XET_MM_ASN_PCM10 will derive the Actual dates and times as Delivery Date
and Time for Event ‘Receive Advanced Shipping Notification’.
Event ‘Receive Advanced Shipping Notification’ is reported with Actual Date and time as delivery date and
time of ASN.
Configuration Setup: How the Procurement status changed from ‘In Transit’ to ‘Completely Arrived’:
Execute ‘Define Rule sets’ and select ‘PCM10_ITEM’ Rule set and display the SET_PROC_ARRIVED rule.
Configuration Setup: How reported date and time are derived as Real date and time for Event
‘Receive Goods’.
Menu Path: SPRO --> Integration with Other mySAP.com Components --> Event Management Interface -->
Define Application Interface --> Define SAP EM Interface Functions
Function Module /SAPTRX/XET_MM_GR_PCM10 will derive the Actual dates and times as Real-time Date
and Time for Event ‘Receive Goods’.
Conclusion:
Similarly Step 5 (Receive Invoice) and Step 6 (Payment) could be executed with MIRO and F110
transactions respectively and reported events dates and times & Status Changes get displayed in SCEM and
WCL and config details can be explained about how the Status Changes and Reported Dates and Times are
derived.
Related Content
SAP Help: www.help.sap.com.
http://help.sap.com/saphelp_em70/helpdata/en/6e/b4393c95b04325e10000000a11405a/frameset.htm
for more information on Supply Chain Event Management.
http://help.sap.com/saphelp_em70/helpdata/en/0a/08233d32039017e10000000a114084/frameset.htm
for more information in Procurement scenario.
For more information, visit the Supply Chain Management homepage.