IISc SAP S4HANA S&P Overall Concept Presentation V 1.0

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Disclaimer
 Core and End User Training sessions are mainly focused on IISc specific
configured and customized SAP Applications. Request all the participants to
concentrate on the training sessions and learn how to operate SAP Business
Functions.
 The purpose of this training is to enable Users to perform User Acceptance
Testing and day-to-day activities on SAP System.
 This training is not designed for any Business Scenarios discussion and
demonstration.
Kindly keep your mobile phones in silent mode and maintain moderate discussion
Indian Institute of Science
SAP S/4 HANA Implementation Project
Project : ISTAR
SAP Core User Training

Sourcing & Procurement
Wipro Team
Oct 23, 2018
Course Overview
1 Course Goals
2 Course Objectives
3 Course Contents
4 Main Business Scenario
5 Introduction of Source to Procure Process for IISc
Course Goals
This Course will prepare you to :

 Understand how “Source to Procure Process” supports different business
processes in IISc (Domestic, Import and Work Order)
 Adopt and apply the customized S/4 HANA application on day to day
operations.
Course Objective
After Completing this Course, you will be able to :
 Understand the IISc specific Source to Procure business processes

(Domestic, Import and Work Order)
 Apply this software to manage your day to day operations
 Generate real time operational report to have better control
 Prepare Business Users to conduct User Acceptance Test and End user
Training
Course Content
Preface:
 Course Overview  Vendor Selection

 Organization Structure  Purchase Contract
 Master Data  Purchase Order
 Purchase Requisition  Invoice Verification
 Request for Quotation  Information Systems
Main Business Scenario
 IISc procures material for their research and internal consumption purpose.
All the procurement has own funds/grant from many different sponsors. Each
procurement types has unique Approval Matrix (Purchase Powers) based on
value and the nature of procurements.
 The Institute wants to fulfill the requirements and pain points captured during
the Business Blueprint.
 It could be best, if approval process could remains unchanged and automated.
Introduction of Source to Procure
General Concepts: Apply Procurement Rule
Master Data : Material, Services and

What kind of Material / Services will IISc Procure?
Business Partner; Purchase Requisition
Request for Quotation; Vendor

What stage will the decision takes place for Procurement? Quotation Comparison
Purchase Order; Approvals, Automatic

What and which budget IISc consume for Procurement? Commitment; Issues Purchase Order
Local/Foreign
How and where to receive and Issues the Material? Goods Receipt; Goods Issues
Quality Inspection ; Invoice

How to check Quality and process for Vendor Payment?
Verification
Which Reports are to control the inventory and due date? Reporting
Day - 1
ORGANIZATION STRUCTURE
Organizational Structure
Company code is a Legal Entity which
generates the Financial Statements of the
Company
Organization.
Code
Purchasing organization is responsible (IISC)
for all procurement activities within the
organization.
Purchasing An operating area within a company.
Org
Purchasing Plant
Groups (IISC)
A group of people who are (IISC Depts.)
responsible for Procurement.
Storage Location is a place where you

can store physical material.
Stor. Loc. Stor. Loc. Stor. Loc. Stor. Loc

(Bio-chemistry Lab) (Raw materials) (Library 1) (Library 2)
IISc Purchase Organizational Structure
Company Code
(1000-IISC)
Purchasing
Org
1000 – IISc
Plant
(IISC Department)
Purchasing
Groups
(IISC Depts.)
Stor. Loc.
Main Storage Location
IISc Source to Procure
Vendor Purchase
Payment Requisition
Sourcing Request for

Invoice and Quotation
Verification Procurement
Goods Receipt &

Vendor
Inventory  Local Procurement
Selection
Management
 Import Procurement
Purchase  Work Order

Order
MASTER DATA
Master Data
1 Material Master Data (Create, Change & Display)
2 Service Master Data (Create, Change & Display)
3 Business Partner Master Data (Create, Change & Display)
Master Data
Material Master Definition
The material master contains information of all the materials that IISc procures, stores and

uses for internal consumption or projects. It is the company's central source for retrieving material
specific data. This information is stored in individual material master records.
For IISc Specific Configuration
Material Group
Industrial Sector
Code Description
Code Description 001 Stores & Spares
E Research Institute 002 Loose Tools

003 Publications
Material Type 004 Laboratory Chemicals

Consumables & Glass
Ware
Code Description
005 Building Material
ZAWA IISc Goods 006 Electrical Item
ZROH IISc Raw Materials 007 Stationary

008 Water Supply Material
Material Master Structure
Basic / General Storage Location
Information Information
Quality Management
Plant Information Information
Material
Master Material Requirement
Planning Information
Accounting
Information Sales and Distribution
Information
Purchasing
Information Costing Information
Following Fiori Apps are enabled to Create/Change/Display Material Master in IISc
Create Material Master
Demo on SAP System Create/Change/Display Material Master
Demo data
•Industry Sector: Research Institute
•Material Type: IISc Goods
•Select Views: Basic Data1 / Purchasing / International Trade: Import /
General Plant Data / Storage 1 / Accounting 1 / Costing 1
•Plant: 1044
•Stor. Location: MS01
•Description:
•Base Unit of Measure: EA
•Material Group: 007 – Stationary
•Tax Indicator for Material: 1 – Tax Applicable
•Control Code: 998111
•Valuation Class: 3109
•Price Control: V
•Profit Center: AM01
Demo process on SAP System

•Create Service Master
•Change Service Master
•20Display Service Master © 2018 Sensitivity:
Master Data
Service Master Definition
Service in a intangible goods, which can be procured from vendor. Service master contains the
service number, description, characteristics etc. It supports the complete cycle with procurement
as well as invoice verification.
Services are meant for direct consumption instead of keeping them in inventory
Service Category Material/Service Group

Code Description Code Description
ZSER IISc Service 099 Services
Service Master Structure
Service Category
Basic / General information
Information
Internal Work
Accounting
Service information
Information
Master
Purchasing Long text information
Information
Following Fiori Apps are enabled for Service Master in IISc
Create Service Master
Demo on SAP System Create/Change/Display Service Master
Demo data
•Service Short Text: Excavation Service

•Service Category: IISc Service
•Base Unit of Measure: AU
•Mat./Srv Grp: 099
•Valuation Class: 3201
•Tax Tariff Code (SAC Code): 997212
•Long Text:
•Create Service Master

•Change Service Master
•Display Service Master
Master Data
Business Partner Master Definition
Use of the business partner master data is to record and retrieve business partner (customers,

vendors and leads) information and schedule business partner activities. Business
partner information typically includes - Company details, addresses and telephone numbers.

Business Partner Role
Code Description
000000 Business Partner (General Data)

FLVN00 Vendor Co. Code
FLVN01 Vendor Purchase Org.
Following Fiori App enables For Business Partner Master
Business Partner (Vendor) Master
General data Client Level

Valid
Address for the whole group
Communication
Purchase Org Level

Purchasing data
Valid
Order currency for one purchasing
Incoterms organization
Minimum order value
Company Code Level

Accounting data
Valid
Bank data for the whole group or
Payment transactions for one company code
Account management
Create/Change/Display Business Partner
Demo on SAP System Create/Change/Display Business Partner
Demo data
•Click on “Create Organization”

•Grouping: DOMS – IISc Domestic Business Partner / FORE – IISc Foreign Business
Partner
•BP Roles: 000000 – (Business Partner General)
FLVN00 – (Vendor Co. Code)
FLVN01 – (Vendor Purchase Org)
•Name:
•Search Term:
•Street/House number:
•Postal Code/City:
•Country:
•Region:
•Language:
•Telephone:
•Mobile Phone:
•E-mail:
•Tax Number Category: IN3 and enter Vendor GSTIN number
Create/Change/Display Business Partner
Demo on SAP System Create/Change/Display Business Partner
Demo data
•Company Code: 1000
•Reconciliation Account: 100601 –Normal Creditor
•Sort Key: 012 – Vendor Number
•Payment Terms: 0001 - Pay immediately w/o deduction
•Purch. Organization: 1000 - IISc Purchasing Org.
•Order Currency: INR
•GR Based Inv Verification: X
•Service Based Inv. Verification: X
•Schema Grp Supplier: “BLANK” - Standard schema vendor / “03” - IISc foreign schema
vendor
Source to Procure
Purchase Requisition
Source to Procure – Purchase Requisition
Purchase Requisition Definition
Purchase Requisition is a request that is made to purchasing organization to procure certain

list of material. Purchase requisition is an internal document; specifically it remains within the
organization.
Purchase Requisition Types
Code Description
ZDPR IISc Domestic PR

ZFPR IISc Foreign PR
ZWPR IISc WO PR
ZAPR IISc Admin PR
ZMRP IISc MRP PR
Demo on SAP System Create/Change/Display Purchase
Requisition
Demo data
•Document Type: ZDPR – IISc Domestic PR
•Material Number: 1000000080
•Quantity: 10
•Delivery Date:
•Plant: 1044
•Purchase Group: A18
•Valuation Price:
•Header Note:
•Item Texts:

•Create Purchase Requisition
•Change Purchase Requisition
•Display Purchase Requisition
Thank you...!
End of Day 2
Day - 3
Source to Procure
Request for Quotation
Source to Procure– Request for Quotation
Request for Quotation Definition
Request for quotation is a form of invitation that is sent to vendors to

submit quotation indicating pricing and their terms and conditions. RFQ contains details about
goods or services, quantity, date of delivery and date of bid on which it is to be submitted.
Request for Quotation Types
Code Description
ZR IISc RFQ
Create/Change/Display Request for Quotation
Demo on SAP System Create/Change/Display Request for Quotation
Demo data
•Document Type: ZR – IISc RFQ
•Quotation Deadline:
•Purchase Organization: 1000
•Purchase Group: A18
•Purchase Req.: 4000000026
•Collective No.: Put Purchase Requisition number
•Delivery Date: 30.10.2018
•Vendor: Click on Supplier Address and select vendor
•Header Texts: Terms of Delivery
•Item Details:

•Create Request for Quotation
•Change Request for Quotation
•Display Request for Quotation
Source to Procure
Quotation Comparisons
Source to Procure– Quotation Comparisons
Quotation Comparisons Definition
You can compare the prices from all quotations received as a result of a competitive bidding
process using the Price Comparison List . The comparison list ranks the quotations by item from
lowest to highest price.
Display Quotation Comparison
Demo on SAP System Display Quotation Comparison
Source to Procure
Purchase Contract
Source to Procure – Purchase Contract
Purchase Contract Definition
A purchasing contract defines the purchasing and supply of goods or services at agreed prices

and conditions. The quantity and value of the purchase orders, limit confirmations, and invoices
are released against the contract.
Purchase Contract
Code Description
ZQ IISc Qty. Contract
ZV IISc Value Contract
Create/Change/Display Purchase Contract
Demo on SAP System Create/Change/Display Purchase Contract
Day - 4
Source to Procure
Purchase Order
Source to Procure– Purchase Order
Purchase Order Definition
A purchase order is a formal request or instruction from a purchasing organization to a vendor

or a plant to supply or provide a certain quantity of goods or services at or by a certain point in
time.
Purchase Order
Code Description
ZDPO IISc Domestic Procurement

ZFPO IISc Import Procurement
ZWOR IISc Work Order
ZAPO IISc Admin Procurement
Create/Change/Display Purchase Order
Demo on SAP System Create/Change/Display

Purchase Order
Day - 5
Source to Procure
Goods Receipt
Source to Procure – Goods Receipt
Goods Receipt Definition
A goods receipt is the physical inbound movement of goods or materials into the warehouse. It is
a goods movement that is used to post goods received from external vendors.
al Goods receipt blocked stock

o n
d iti nce WBS
o n pta
C ce
Ac Unrestricted-use stock
Storage
Location Stock in quality inspection
Co
Vendor ns Blocked stock
um
pt
ion
Account Assignment object
(Non Stock Materials)
Cost center
Order
Source to Procure
Invoice Verification
Source to Procure – Invoice Verification
Invoice Verification Definition
Invoice Verification is a process which confirms in SAP that an invoice has been received by the
Department. Goods receipt will have to have been entered on SAP prior to invoice
verification unless that process has been by-passed at the raising of the purchase order..
Create/Display/Cancel Invoice Verification
Demo on SAP System Create/Cancel/Display

Invoice Verification
Source to Procure
Create/Change/Display Reservation
Source to Procure – Reservation
Reservation Definition
A Reservation is a document used to make sure that the warehouse keeps a certain amount of a
material or materials ready for transfer at a later date. It contains information on what, quantity,
when, where from and to. (e.g Central Stores to Department)
Create/Change/Display Reservation
Demo on SAP System Create/Change/Display

Reservation
Source to Procure
Goods Issue
Source to Procure – Goods Issues
Goods Issues Definition
A Goods issue is a movement of goods which the materials are issued or drawn. In

the SAP system when store persons do the transaction of goods issue, then systems generates
individual documents and posted in FI.
From Stores
Goods issue
Consumption Issue
Cost center Scrap

Project
Sales Order
Create/Display Goods Issues
Demo on SAP System Create/Display Goods

Issues

IISc SAP S4HANA S&P Overall Concept Presentation V 1.0

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Transformation is a Journey, not a Destination

Discover and Explore SAP

SAP Core User Training

This Course will prepare you to :

After Completing this Course, you will be able to :

 Understand the IISc specific Source to Procure business processes

 Generate real time operational report to have better control

 Course Overview  Vendor Selection

Master Data : Material, Services and

Request for Quotation; Vendor

Purchase Order; Approvals, Automatic

Quality Inspection ; Invoice

Storage Location is a place where you

Stor. Loc. Stor. Loc. Stor. Loc. Stor. Loc

Sourcing Request for

Goods Receipt &

Purchase  Work Order

1 Material Master Data (Create, Change & Display)

2 Service Master Data (Create, Change & Display)

3 Business Partner Master Data (Create, Change & Display)

Material Master Definition

The material master contains information of all the materials that IISc procures, stores and

E Research Institute 002 Loose Tools

Material Type 004 Laboratory Chemicals

ZROH IISc Raw Materials 007 Stationary

Following Fiori Apps are enabled to Create/Change/Display Material Master in IISc

Demo process on SAP System

Service Master Definition

For IISc Specific Configuration

Service Category Material/Service Group

ZSER IISc Service 099 Services

Following Fiori Apps are enabled for Service Master in IISc

•Service Short Text: Excavation Service

Demo process on SAP System

•Create Service Master

Business Partner Master Definition

Use of the business partner master data is to record and retrieve business partner (customers,

For IISc Specific Configuration

000000 Business Partner (General Data)

Following Fiori App enables For Business Partner Master

General data Client Level

Purchase Org Level

Company Code Level

•Click on “Create Organization”

Purchase Requisition Definition

Purchase Requisition is a request that is made to purchasing organization to procure certain

For IISc Specific Configuration

Purchase Requisition Types

ZDPR IISc Domestic PR

Demo process on SAP System

Request for Quotation Definition

Request for quotation is a form of invitation that is sent to vendors to

For IISc Specific Configuration

Request for Quotation Types

Demo process on SAP System

Quotation Comparisons Definition

Purchase Contract Definition

A purchasing contract defines the purchasing and supply of goods or services at agreed prices

For IISc Specific Configuration

ZQ IISc Qty. Contract

ZV IISc Value Contract

Demo on SAP System Create/Change/Display Purchase Contract

Purchase Order Definition