SAP Ariba purchase to pay, part 1 - SAP ERP Tutorial

- [Instructor] Welcome to back to Ariba's supply chain collaboration, I'm your instructor Matthew Hunt. And now we're going to jump into the purchase to pay process and how it works in Ariba. In this section I'll first give you an overview of the purchase to pay process and then we'll talk about orders and releases, the items to ship screen, how to create ship notices, how to send receipt documents, and how to generate invoices. So first of all the Purchase to Pay Process in Ariba looks something like this. The buyer in their ECC system or whatever their ERP system is will create a PO or a schedule agreement release. So different purchasing document types, Ariba supports both of them. Standard purchase orders or schedule agreement releases. Those are sent to the supplier, the supplier then monitors their orders or releases for shipment. They will then create ship notices. These ship notices get turned into inbound deliveries on the buyer side. The buyer will post goods receipt in his back end ERP system. That then will send a receipt document to the supplier that they can view in Ariba. And then the supplier can create invoicing if they are not doing ERS. So that invoice then will show up in the buyer's ECC system. And then of course if they are doing ERS they can do ERS. And not part of the purchase to pay process, but more into the accounts receivable process is the remittance process. So I'm not showing that specifically in here, but the supply chain collaboration module does support showing the self billing and remittance advices. Okay, so let's start with orders and releases. And this is the actual SAP Ariba Supply Chain Collaboration screen, and so let me just introduce you to this screen if this is the first time you're seeing it. There is a home screen which just kind of is a dashboard. It shows you, you know, any outstanding orders, those types of things. It's got several key figures, key metrics that you can quickly pop up there. As a supplier you're going to want to go to your inbox. To see your orders or releases you'd want to under the inbox go to the orders and releases tab. Now I'm going to show this as a supplier. I'm in the supplier portal. Everything is kind of the mirror opposite in the buyer portal. So instead of going to the inbox to see orders and releases in the buyer portal I would go to the outbox. The sub menu is the same, it still says orders and releases, but for a buyer it's an outbound document. For a supplier it's an inbound document. So based on which portal you are in it does make a difference whether it's in the inbox or the outbox. So the orders and releases screen, top menu I already talked about. As a supplier you'll access the inbox to go to your orders and releases. And then all of your orders and releases would appear underneath this orders and releases tab. There are search filter options that you can search from. So if you wanted to restrict by specific customer, or a part number, or a purchase order number you can do that to shorten the list. Once you find the particular order that you want to view to actually go into that order you'd click on it. And this is, I had to break this up into multiple slides. So first of all there's a header area. And at the header area of the order you've got some buttons up here that says create ship notice and create invoice. So you could automatically flip this purchase order into a ship notice if you wanted to. I'm going to show you a slightly better way, or at least I believe it's a better way of creating ship notices. If you wanted to, you could always flip it to a ship notice from within the order. There's other buttons in here to show you all the changes to this order, to print the order, to download a PDF, to export it into cXML. You can download it into a CSV file, so you can actually export all the order data into a CSV. The sub-menu here, release details are where most of the transactions, most of the data is displayed. Processing History just shows you the history of this particular order or release. And Release History shows you all the versions of it. So if I send schedule agreement releases, like this would show the history of release one, release two, release three, release four, it would show them all. Below the header area is the order line level and the schedule line level. So the order line level on the purchase order or schedule agreement is the area where it shows like the customer part number as well as the supplier part number, revision level, quantity, this is the total quantity for the order line. The need by date. If you have a price for the part it would show the unit price. The cumulative receipt quantity, the cumulative ship quantity, that kind of information. If you're using schedule agreement releases, there is some places here where it can show the firm period as well as the trade off period. The release type and the release number. There's a if you're using a schedule agreement then there's the schedule line area which shows the delivery dates. Or if you're using ship dates it'll show ship dates. The quantity, the cumulative quantity, and then the commitment level. So firm, trade off, planning, those commitment levels in SAP. This shipment status icon tells you where you are in the schedule. So it's showing here that the next thing to ship is the first line on June 19th for 100 units. If I had already sent an ASN for 100 units, first of all, those 100 units would show up here in the order line under the cumulative shipment quantity. And then the shipment status for schedule line one would show as closed. And the shipment status would show that schedule line two is the next line that is due to ship. And you can configure SAP Ariba to not allow over shipment. So if you don't want your supplier to be able to ship more than what's in the firm period then you can set that. Or you can also set tolerances. You know, you can say I may only want my supplier to over ship me 10% of the firm period. And so they could ship you everything in the firm period plus an extra 10%. But anything over that when they create the ASN it will give them an error message. The next screen I'm going to show you is not in the orders and release tab but it's in the tab called items to ship. And this is how I recommend you create ASNs or ship notices. The beauty of this screen is it takes all of that order data and it groups it by ship to location, by need by date, and it really creates, it's comparable to in your SAP ECC system to your delivery due list. So your VF transactions. So I can see, you know, if I'm a supplier and I'm supplying a customer I can see all my orders that are due to that ship location on May 22nd. And I can check them all. As you can see there's a checkbox here. I can check them all and with one button I can say put all of those schedule lines onto one ASN. So this is a good way to create multiple order lines on a ship notice. Okay, I'm going to stop this video here, let you catch up on your notes. Yeah, so when we come back, the next video we're going to talk about creating the ship notice. So when you're ready for that, I will see you there.