KDD one-pager: Automatic PO with contract for Third Party Sales

Title Automatic PO with Contract for 3rd Party sales Decision by CORE Design Authority Global Design Authority Primary:
Contact
Secondary:
Applications CORE Impacts CORE D&T Functions OpCo Date September 1st, 2022
This KDD pertains to the Automatic PO for Third Party Sales Process. As per standard S4 settings, Automatic PO for third party sales will be
General created with document type ‘NB’ (Standard PO). If there is a valid contract/agreement exists for the Third-Party material with the vendor,
then system should create an automatic PO with document type ‘YC’ (Call Off) and to fulfill this requirement, an enhancement is
Background required. We ask the Global Design authority to confirm this enhancement to be included as a part of CORE. Alignment
Decision aligned with STP Team.
& decision efforts

Title Automatic PO with Contract for 3rd Party sales Cost / Efforts $ $$ $$$ Pros/cons recommended option over alternative
Description: : If a valid contracts exists for the 3rd Party material, then system should create an automatic PO with doc. type ‘YC’ (Call Off). Alignmen Third Party Sale Process will be automated with a small
Recommended t enhancement to create a PO with document type YC with contract
Orchestrates / automates thru value chain: Optimized way of working, as system will create an automatic Third-Party PO with reference to and NB without contract.
(Option 1) Automatic Third-Party Purchase Requisition.
Standard processes w/ uniform feature: Process of automatic Third-Party PO is standardized across all OpCos.
E2E visibility and consistency: E2E visibility of Third-Party Sales to Procurement processes in CORE, giving the ability to track efficiency &
effectiveness.
Value over monolithic integration: Not a monolithic option.
Complies with EA principles: Automatic Third-Party Sales process is made simpler.
Continuous improvement: The solution can be incrementally improved if business requirements changes later as enhancement needs to be done within
CORE only.
Title
Standard, secure,Direct Procurement
up-to-date: SAP functionality + Enhancement to create a PO withCost
in Zycus
Uses standard doc. /type
Efforts
YC $ $$ $$$ Pros/cons of alternative option
Description: Whether valid contracts exists or not, system will create an automatic PO with doc. type ‘NB’ (Standard PO) Alignmen Third Party Sale Process will be automated without any
Alternative t enhancement so that all PO’s will be created with doc. type NB
Orchestrates / automates thru value chain: N/A resulting into incorrect reporting in Purchasing.
(Option 2)
Standard processes w/ uniform feature: Standardization of third-party sale processes for all OpCos.

E2E visibility and consistency: E2E visibility of Third-Party Sales to Procurement processes in CORE but it will impact highly on Reporting in
Procurement side.
Value over monolithic integration: Not a monolithic option.
Complies with EA principles: There will be no difference between Third-Party Pos created with and without reference to contract/agreement.
Continuous improvement: Reconciliation of PO’s and reporting will be complicated. 1