442_bpp_en_in

Business Process Procedures

EHP4 for SAP ERP 6.0September 2010EnglishEnglish

RFQ for Project-based Procurement (442)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermanyBusiness Process Documentation

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Business Process Alternative/Decision Choice

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Contents51Purpose

52Prerequisites

52.1Master Data and Organizational Data

62.2Business Conditions

62.3Roles

72.4Preliminary Steps

72.4.1Rolling MM Period to Current Period (Optional)

83Process Overview Table

94Process Steps

94.1Project Setup for Engineering and Construction

94.2Project Budgeting for Engineering and Construction

104.3Project Planning for Engineering and Construction

104.4Displaying Project Oriented Purchase Requisitions

114.5Creating Request for Quotation

124.5.1Finding Appropriate Vendors Based on Their Trade

134.6Maintaining Quotation

144.7Price Comparison

154.8Generating Rejection Notice

154.9Converting Quotation into Purchase Order

165Follow-up Processes

175.1Executing the Purchase Order from Creation to Payment

176Appendix

176.1Reversal of Process Steps

186.2SAP ERP Reports

186.3Used Forms

RFQ for Project-based Procurement1 Purpose

This scenario describes the typical processes used in the Construction Industry to solicit, obtain, and compare supplier pricing information to select the appropriate supplier for the material or subcontracted service to be procured.

The process starts with the definition of the required materials and subcontracted services for a specific project. The definition of the quotation criteria and the bidding packages are the next steps, followed by a selection of suppliers for the relevant quotation utilizing price comparison report. The quotations are then compared. After the decision is made for the relevant suppliers, the purchase orders / subcontractor orders are defined. The RFQ process is a semi-optional process. You can purchase materials and subcontractor services Ad hoc by converting a purchase requisition into a PO directly without the RFQ process (example: purchasing of low value materials or equipment from a shop).2 Prerequisites

2.1 Master Data and Organizational DataSAP Best Practices Standard Values

Essential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits its operational focus, for example, master data for materials, vendors, and customers.This master data usually consists of standardized SAP Best Practices default values, and enables you to go through the process steps of this scenario.

Additional Master Data (Default Values)

You can test the scenario with other SAP Best Practices default values that have the same characteristics.

Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master Data

You can also use customized values for any material or organizational data for which you have created master data. For more information on how to create master data, see the Master Data Procedures documentation (155_BPD_xx).

You can use any of the following sample master data in the process steps described in this document if you do not want to use your own data:Master / org. dataValueMaster / Org. data detailsComments

MaterialEC-R03012500 PSI Concrete Mix - 24-33784

MaterialEC-R06012 x 4 - 12' Spruce MSR

Use the following Org Structure in the process steps described in this document: Org. StructureValueComments

Controlling area1000Controlling Area 1000

Company Code1000Company Code 1000

Plant1000Production Plant 1000

Purchase organization1000Purchasing Org. 1000

Purchase Group100Purchase Group 100

VendorE72548Cement Mill City

VendorE73249Simms Concrete & Rebar

2.2 Business ConditionsThe business process described in this Business Process Documentation is part of a bigger chain of integrated business processes or scenarios. As a result, you must have completed the following processes and fulfilled the following business conditions before you can start any activities in this scenario:Business ConditionScenario

You have completed all steps described in the Business Process Documentation Prerequisite Process Steps (154). These process steps include the step Roll MM Period to Current Period. Perform this activity if the MM period in the system is not set to the current period. This activity is generally done once a month.Prerequisite Process Steps (154)

You have completed all steps described in the Business Process Documentation Project Structure Setup (439)Project Structure Setup (439)

You have completed all steps described in the Business Process Documentation Project Budgeting for Engineering and Construction (440)Project Budgeting for Engineering and Construction (440)

You have completed all steps described in the Business Process Documentation Project Planning for Engineering and Construction (441)Project Planning for Engineering and Construction (441)

2.3 Roles

Use

The following roles must have already been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites

The business roles are assigned to the user who is testing this scenario.

Business RoleTechnical NameProcess Step

PurchaserSAP_NBPR_PURCHASER-SCreate Request for Quotation

Maintain Quotation

Price Comparison

Generate Rejection Notice

Convert Quotation to Purchase Order

Purchaser (ECO)SAP_NBPR_PURCHASER_ECO-SDisplay Project Oriented Purchase Requisitions

General Ledger AccountantSAP_NBPR_FINACC-SRolling MM Period to Current Period (Optional)

2.4 Preliminary Steps

This Business Process Documentation (BPD) contains process steps that have to be done as prerequisite before you can start to work through the standard Business Process Documentation of selected logistics scenarios.2.4.1 Rolling MM Period to Current Period (Optional)Use

Perform this activity only if the MM period in the system is not set to the current period. Usually, this activity has to be done once a month.

The MM period can only be chosen as next period from the period set in the system.Example: the current period in the client is set to 12/2010. In this case the next current period is 01/2011 which can be set. This procedure has to be repeated until the required period can be selected.

Notice that the fiscal year in India is different from calendar month. Fiscal year starts from Apr. 1 every year. Procedure

1. Access the activity using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menuLogistics ( Materials Management ( Material Master ( Other ( Close Period

Transaction codeMMPV

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business RoleBusiness roleGeneral Ledger Accountant(SAP_NBPR_FINACC-S)

Business role menuGeneral Ledger Periodic Processing Closing Periods Close Period for Material Master

2. On the Close Period for Material Master Records screen, make the following entries:

Field nameDescriptionUser action and valuesComment

From company codeEnter the company code.1000 (for example)

PeriodEnter the current period.For India, current period = current calendar month - 3

Fiscal yearEnter the current fiscal year.

3. Choose Execute.3 Process Overview Table

Process stepExternal process referenceBusiness conditionBusiness role (not technical role for BP)Transaction codeExpected results

All stepsProject Structure Setup for Engineering and Construction (439)Project ManagerProject is created

All stepsProject Budgeting for Engineering and Construction (440)Project ManagerCreate the preliminary project budget and major timelines

All StepsProject Planning for Engineering and Construction (441)Project ManagerDetailed Project planning is taken out on activity level

Display Project Oriented Purchase RequisitionsPurchaser (ECO) CNMMDisplay Project Oriented Purchase Requisitions

Create Request for QuotationPurchaserME41RFQ created for each vendor

Maintain QuotationPurchaserME47RFQ updated with vendor pricing details

Price ComparisonPurchaserME49Vendors identified with lowest price

Generate Rejection NoticePurchaserME47Rejection letter printed and sent to vendors

Convert Quotation to Purchase OrderPurchaserME21NPO created for selected vendor

4 Process Steps4.1 Project Setup for Engineering and Construction Project Setup for Engineering and Construction (439)UseIn this activity, you setup the project for Engineering and Construction company.

Procedure

Using the master data from this document, complete all the activities described in the Business Process Documentation of the scenario: Project Setup for Engineering and Construction (439).ResultThe project is created.

4.2 Project Budgeting for Engineering and Construction

Project Budgeting for Engineering and Construction (440)

UseThe preliminary project budget and major timeline is essential for the project estimation, and it is required to be embedded into the project structure.ProcedureUsing the master data from this document, complete all the activities described in the Business Process Documentation of the scenario: Project Budgeting for Engineering and Construction (440).ResultThe project budget is estimated in project structure.

4.3 Project Planning for Engineering and Construction Project Planning for Engineering and Construction (441)

UseA detailed project plan is put in place to commit resources, funding, and the corporate staff, with the ultimate goal of delivering the project.ProcedureUsing the master data from this document, complete all the activities described in the Business Process Documentation of the scenario: Project Planning for Engineering and Construction (441).ResultThe project planning is estimated in project structure.

4.4 Displaying Project Oriented Purchase Requisitions

Use

Once the project related purchase requisitions have been generated, the Project Manager can review procurement related information such as the requisitions associated with each network.

Procedure

1. Access the transaction choosing one of the following navigation options:Option 1: SAP Graphical User Interface (SAP GUI)SAP ECC menuLogistics ( Project System ( Material ( Execution ( Project Oriented Procurement (ProMan)

Transaction codeCNMM

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business RoleBusiness role Purchaser (ECO)(SAP_NBPR_PURCHASER_ECO-S)

Business role menuPurchasing ( Project System ( Execution ( Project-Oriented Procurement

2. On the Project-Oriented Procurement screen, enter the project definition created in the previous steps then choose Execute.

3. On the next Project-Oriented Procurement screen, on the left side of the screen select the top line in the project structure then choose Expand Subtree to expand the project structure.

4. Then scroll down in the structure and double-click the green button next to the activity Formwork located under WBS element: Concrete.5. Choose the material or activity items mentioned below, and then right click. From the context menu, choose Organizational Areas - Orders/Documents, note the Purchase Requisition numbers in the following table:

Requisition No.Material Description

2500 PSI Concrete Mix - 24-33784 (For material EC-R0301)

6. Choose Back to return to the SAP Easy Access menu.

ResultThe procurement-related information for the project definition has been displayed.4.5 Creating Request for Quotation

Use

Once a purchase requisition is generated, the purchasing agent can then submit the required materials or subcontracted services to various vendors for a price quote. This step describes how to convert the Purchase Requisition into Requests for quotations for multiple suppliers.

Procedure

1. Access the transaction choosing one of the following navigation options:Option 1: SAP Graphical User Interface (SAP GUI)SAP ECC menuLogistics ( Materials Management ( Purchasing ( RFQ/Quotation ( Request for Quotation ( Create

Transaction codeME41

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Purchaser(SAP_NBPR_PURCHASER-S)

Business role menuPurchasing ( RFQ/ Quotation ( RFQ ( Create Request for Quotation

2. On the Create RFQ: Initial Screen, enter the following data:


RFQ TypeAN

Quotation DeadlineToday + 20 days

Purch. Organization1000

Purchasing Group100

3. Choose Reference to PReq.

4. In the Selection of Purchase Requisitions dialog box, in the Purch. req. field, enter the first Purchase Requisition Number for material EC-R0301. Choose Continue.

5. On the Create RFQ: Selection List: Purchase Requisitions screen, select your purchase requisition, then choose Adopt.6. Change the delivery date to 30 days from today.

7. Choose Header to display the Create RFQ: Header Data screen.

8. In the Administrative Fields section, in the Coll. No. field, enter the project number noted in the first section of this document (for tracking number) and choose Enter.

To administer several requests for quotations, a tracking number can be assigned to each request. This makes it possible to list and monitor the requests for quotations. Furthermore, the quotations can be compared and further processed according to the tracking number. The following steps create the tracking number.

9. Choose Vendor Address.

In the next step, you enter the Suppliers from whom you would like to receive a quotation. Here you request quotations from two suppliers.

4.5.1 Finding Appropriate Vendors Based on Their Trade

The next few steps describe how to display a list of suppliers for a specific trade and then you can choose from this list the two suppliers for the RFQ.

1. On the Create RFQ: Vendor Address screen, in the Vendor field, choose F4 Search.2. If the Vendors account number dialog box displays, choose the Vendors by Class tab. Otherwise, continue to the next step.3. On the Find Objects in Classes screen, enter the following data:


ClassTRADE

Class Type010

4. Choose Enter.

5. On the Find Objects in Classes screen, in the Value field for the TRADE characteristic, choose F4 search.

6. In the TRADE dialog box, select 03 00 00 Concrete, then choose Continue.

7. On the Find Objects in Classes screen, choose Find in initial class. A list of suppliers for the concrete trade is displayed.

8. Choose vendor number E72548, and then choose Copy to return to the Create RFQ: Vendor Address screen. The vendor number E72548 is now displayed in the Vendor field.

9. On the Create RFQ: Vendor Address screen, choose Enter and the address for the selected vendor is displayed.

10. Save your entries. Note the RFQ number at the bottom of the screen here: ________________.

11. Repeat steps 1 to 10 for vendor number E73249 and note the second RFQ number here: ________________.

Result

RFQ documents are printed for each supplier and these documents can now be sent to the vendor addresses listed on the documents.4.6 Maintaining Quotation

Use

In this section, the pricing data submitted from the suppliers via a quotation is entered into the system by the Purchasing agent. These quotations reference the request for quotations created in the previous section.

Procedure

1. Access the transaction choosing one of the following navigation options:Option 1: SAP Graphical User Interface (SAP GUI)SAP ECC menuLogistics ( Materials Management ( Purchasing ( RFQ/Quotation ( Quotation ( Maintain




Business role menuPurchasing ( RFQ/ Quotation ( Quotation ( Maintain Quotation

2. On the Maintain Quotation: Initial Screen, replace the RFQ number displayed with first RFQ number noted in the Create Request for Quotation step above.

3. Choose Overview.

4. Double-click item 10.

5. On the Maintain Quotation: Item 00010 screen, enter the following data:


Net Order PriceIn the Quotation Data Section3500

Info UpdateAPrices are tracked to the info record

Tax codeA/P Sales tax, taxable, distributed to line itemsMD

6. Choose Enter.

7. Choose Save.8. Repeat steps 2 to 7 using the second RFQ number noted in the Create Request for Quotation step above. Use a net order price of 3600, tax code NE for this RFQ. All other values stay the same.

4.7 Price Comparison

Use

Now that the pricing information for each supplier has been maintained, the purchasing agent can compare the prices between the quotations received using the price comparison list. The comparison list ranks the quotations by item from lowest to highest price.

Procedure

1. Access the transaction choosing one of the following navigation options:Option 1: SAP Graphical User Interface (SAP GUI)SAP ECC menuLogistics ( Materials Management ( Purchasing ( RFQ/Quotation ( Quotation ( Price Comparison




Business role menuPurchasing ( RFQ/ Quotation ( Quotation ( Price Comparison List

2. On the Price Comparison List screen, enter the following data:


Purchase Organization 1000

Collective RFQTracking NumberEnter the project number noted in the first section of this document

3. Choose Execute.

4. On the Price Comparison List in Currency INR screen, the purchasing agent can review the pricing data for the two suppliers to determine which one would be best. Note the RFQ and vendor number with the lowest price here: RFQ ______________ Vendor:____________

5. Choose Back.

Result

The purchasing agent can compare the material prices quoted by different suppliers. This comparison enables them to purchase materials from the supplier offering the lowest prices.

4.8 Generating Rejection Notice

Use

After the Purchasing agent decides which supplier to purchase the materials or subcontracted services from, the agent then sends rejection notices to the suppliers that were not selected.

Procedure

1. Access the transaction choosing one of the following navigation options:Option 1: SAP Graphical User Interface (SAP GUI)SAP ECC menuLogistics ( Materials Management ( Purchasing ( RFQ/Quotation ( Quotation ( Maintain




Business role menuPurchasing ( RFQ/ Quotation ( Quotation ( Maintain Quotation

2. On the Maintain Quotation: Initial Screen, enter the RFQ number that had the higher price from the Price Comparison section above.3. Choose Overview.

4. On the Maintain Quotation: Item Overview screen, select the check box located in column R (Reject) for item 10.

5. Choose Save.Result

Because the quotation item was selected for rejection and then saved a rejection letter was automatically printed and can then be sent to the supplier.

4.9 Converting Quotation into Purchase Order

Use

This section describes one of the many ways a purchase order can be created by the Purchasing agent. Once the price comparison is completed, the Purchasing agent now knows the quotation and vendor and numbers associated with the materials or subcontracted services that need to be purchased. The agent can reference these numbers to create the Purchase Order. Procedure

1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)SAP ECC menuLogistics ( Materials Management ( Purchasing ( Purchase Order ( Vendor/Supplying Plant Known

Transaction codeME21N



Business role menuPurchasing ( Purchaser Order ( Purchaser Order ( Create Purchase Order

If the help window displays on the left side of the screen, choose Close.

2. If the Document Overview window does not display, choose Document Overview On.

3. In the Document Overview pane, choose Select Variant ( Requests for Quotations.4. On the Purchasing Documents screen, enter the following data:


Purchasing Organization1000

Document typeAN

VendorEnter vendor with lowest price noted in previous step.

5. Choose Execute. On the Create Purchase Order screen, in the Document Overview pane, the quotations are listed.

6. Select the quotation you noted in the previous section and Adopt. All of the values from the Purchase Requisition and Quotation are automatically populated into the Purchase Order window.

7. Choose Account Assignment tab page in Item Detail section, change the G/L Account to 41100130.8. Choose Check and if no messages appear then continue to next step.

9. Choose Save. The PO is printed automatically. Note the Purchase Order number here: ___________________.

Result

The purchase order document has been generated for the vendor that was selected during the RFQ process.5 Follow-up Processes

5.1 Executing the Purchase Order from Creation to Payment External ProcessTo perform this activity, execute the following process steps in the BPD 443 (Purchase Order for Project-based ProcurementAPO), using the master data from the previous step.Process Steps

4.5.1 Approving / Releasing Purchase Orders

4..5.2 Performing Goods Receipt of Materials

4.5.3 Entering Invoice with Material Purchasing Order

4.6.7 Executing the Payment Run

6 Appendix6.1 Reversal of Process StepsIn the following section, you can find the most common reversal steps, which you can take to reverse some of the activities described in this document,

Creating a Request for Quotation

Transaction code (SAP GUI)ME41

Reversal:Delete Request for Quotation


Business rolePurchaser(SAP_NBPR_PURCHASER-S)

Business role menuPurchasing ( RFQ / Quotation ( RFQ ( RFQs by Collective Number

CommentYou must delete the item line in the quotation

Maintain Quotations


Reversal:Delete request for quotation



Business role menuPurchasing ( RFQ / Quotation ( Quotation ( Maintain Quotation

Create Purchase Order from Quotation

Transaction code (SAP GUI)ME21N

Reversal:Delete purchase order

Transaction code (SAP GUI)ME22N


Business role menuPurchasing ( Purchase Order ( Purchase Order ( Query: All Purchase Orders from last month ( Edit Purchase Order

CommentYou need to delete the item line in the purchase order

6.2 SAP ERP ReportsUse

The table below lists the most frequently used reports that help you to obtain additional information on this business process.

You can find detailed descriptions of the individual reports in the following BPD documents, which provide a comprehensive compilation of all important reports:

Financial Accounting: SAP ERP Reports for Accounting (221) Logistics Processes: SAP ERP Reports for Logistics (222)Reports

Report titleTransaction codeComment

Purchase Order by MaterialME2MItems in purchasing documents that contain certain materials.

Purchase Order by VendorME2LListing of purchase orders created for a particular vendor.

Purchase Order by document numberME4NA list of purchase orders

6.3 Used Forms

Use

In some of the activities of this business process, forms are used. The table below provides details on these forms.Common form nameForm typeUsed in process step Output typeTechnical name

RFQSmartFormCreate RFQNEUYBIN_MMRFQ

RFQ-Urging/ReminderSmartFormMAHNYBIN_MMRFQ

RFQ-Quo rejectionSmartFormGenerate Rejection NoticeABSAYBIN_MMRFQ

Purchase orderSmartFormConvert Quotation to PONEUYBIN_MMRFQ

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