Revising SOWs

Objective

After completing this lesson, you will be able to modify the details of an active statement of work in SAP Fieldglass.

Revising an Active SOW

No matter how detailed the planning, services projects aren't always as smooth as laid out in the statement of work. Deadlines can be missed, buyers may change project scope, costs may need to be adjusted, etc. These types of issues may require an SOW to be revised to reflect new requirements.

Revising an SOW

Substantial changes made to an SOW such as alterations to the project's scope, deliverables, timeline, or budget, can trigger the approval process to restart. These are changes that can have a significant impact on the project, including changes to the agreed-upon work, schedule, or financial terms.

Changes that require revision are such as those to:

The Max Budget*
MSP Service Fee
Rules
Clauses
SOW Time Sheet parameters
SOW Worker Roles
SOW Rates

*Max Budget can be configured to require a formal revision only if it is increased. A decrease can be done with a simple edit. This rule is set on the SOW Template. An SOW Summary page highlighting the Revise option in the Actions dropdown menu. The other options displayed in the menu include Edit Statement of Work, Copy Statement of Work, Close Statement of Work, Change Fee Type Owner, Add Management Event, Add and Complete Management Event, Add Schedule, Add Event, Add Fee, Copy Fee, and Add Attachment.

An SOW Summary page highlighting the Revise option in the Actions dropdown menu. The other options displayed in the menu include Edit Statement of Work, Copy Statement of Work, Close Statement of Work, Change Fee Type Owner, Add Management Event, Add and Complete Management Event, Add Schedule, Add Event, Add Fee, Copy Fee, and Add Attachment.

1	These types of changes require selecting the Revision option from the Actions menu of the SOW.

Editing an SOW

Less significant SOW details can be changed without requiring approvals or the need to route the SOW back to suppliers. Thus functionality, however, depends on the organization’s tenant configuration; requiring approvals is a standard configuration. SOW change processes that do not require approvals are usually considered the exception.

Some changes to an SOW can be made simply by editing the SOW. This means that the changes made to the SOW are minor and do not significantly alter the project's scope, deliverables, timeline, or budget. These can include corrections to typographical errors, updating the name of the SOW, or updates to non-critical information. Such changes typically do not have to go through a formal approval process.

The following fields can be updated without an approval:

SOW owner
Business Unit
Site
Cost Center
Any other fields that don’t affect the project’s budget

An SOW Summary page highlighting the Edit option in the Actions dropdown menu. The other options displayed in the menu include Revision, Copy Statement of Work, Close Statement of Work, Change Fee Type Owner, Add Management Event, Add and Complete Management Event, Add Schedule, Add Event, Add Fee, Copy Fee, and Add Attachment.

2	The changes that do not alter the project scope or budget can be done by selecting the Edit the SOW option from the Actions menu of the SOW.

In addition, the SOW Template setting 'Allow managing of Management Events, Schedules, Events and Fees after Statement of Work is created' will directly impact the ability to edit the characteristics on SOWs created from that template. Enabling this template rule will permit users to add/remove characteristic line items after a SOW is confirmed. Note that it will only affect net new Statements of Work created from the updated SOW Template.

Revise the SOW

WorkingNet Networking, Inc., a global manufacturer of data networking equipment, is building several new distribution centers in several countries, while simultaneously implementing new logistics software and processes.

Darius, the Logistics Manager for WorkingNet, is overseeing the project and has created a statement of work for CarryAll Consulting, the third-party vendor who is implementing the changes.

The project was initially budgeted at 300,000 USD., but Darius recently met with Kiri, the senior logistics implementation specialist with CarryAll, to discuss the status of the project. They've agreed that because of some changes that WorkingNet has made to the logistics processes, the software requires some changes to align to the processes, so additional time is now required in order to complete the implementation of the software.

Based on this project update, Darius will need to increase the budget of the project from 300,000 to 310,000 to account for the extended timeline.

Follow along as Darius makes these necessary revisions to the SOW.

ExerciseStart Exercise

Approval of Revised SOW

Depending on the buyer's approval process, once the supplier responds to the SOW Revision, the SOW may route to approvers within the buyer organization.

The settings that WorkingNet have enabled will determine whether the SOW Revision is picked up by the approval group or not. For example, if the SOW Template Rule 'SOW Revision approval required only when Maximum Budget is increased' is enabled, then any other changes (with the exception of the max budget) will simply bypass that approval group and go straight to the Supplier to Accept the SOW Revision.

In this case, the SOW has gone for approval because there was an increase in the max budget. These changes can be found on the Revisions Tab of the SOW.

The Revisions Tab of an SOW displays a list of revisions made to the SOW. In this case, 2 revisions are listed, with the original SOW starting at number zero. Both of the revisions consist of changes to the maximum budget, both of which are indicated by green text. The first change indicates an increase of $10,000, with that amount in green and the new budget of $710,000 listed in black. The second change indicates an additional increase of $15,000, with that amount in green and the new budget of $725,000 listed in black. A green approve button appears at the top right of the page, along with buttons to Edit, Reject, View Budget, and other Actions.

1	Selecting the Revisions tab will bring up the list of revisions made to the SOW.
2	The Revision column indicates how may revisions have been made to the SOW.
3	The revisions are indicated in green, as illustrated by the increase to the maximum budget.
4	Approving or rejecting (or editing) the revision can be done by selecting either options at the top right.

Summary

Live SOWs can be amended to reflects changes in the project. Minor edits, such as typographical corrections, can be made without triggering the approval process. Significant amendments, such as those to project scope or budget, may trigger a formal approval process.

Key Points:

Formal Revision Requirements: Changes to crucial elements like the Max Budget, MSP Service Fee, Rules, Clauses, SOW Time Sheet parameters, Worker Roles, and Rates generally require formal revision and approvals.
Changes Without Approval: Certain fields, such as SOW owner, Business Unit, Site, and Cost Center, can be updated without needing formal approvals.
Template Configurations: SOW Template settings, like allowing management of events and schedules post-creation, impact the flexibility to edit SOWs without starting the approval process anew.

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