Introducing Procurement Transactions Integration

• Requisition; Change & Cancel Requisition (for SAP only)
• Purchase Orders; Change, Cancel & Close Purchase Orders
• Goods Receipts
• Invoice / Payment Requests
• Service Procurement
• Advance Payment
• Asset Management
• Stock Availability & Reservation
• Purchase Order Header Status
• Close Purchase Orders
• Contract / Outline Agreement (for SAP only)
• Advance Payment Remittance
• Payment Remittance
• ERP-initiated Service Entry Sheet
• ERP-initiated Purchase Requisition

• File Channel transactional data integration for SAP Ariba Procurement solutions
• Expense Report

• In Ariba Procurement solution, users create Purchase Requisition & upon approving it fully, Purchase Order will be generated in Ariba Procurement to send it to SAP System.
• SAP System will validate the Purchase Order data & sends back SAP Purchase Order ID to SAP Ariba Procurement.
• User can then change or cancel the Purchase Order as required which will be again sent to SAP System for affecting the changes as done. SAP System sends back the confirmation of such changes either by modifying the existing Purchase Order data or canceling the complete Purchase Order as the case may be.
• User can then create Receipts of such Purchase Order in SAP Ariba Procurement upon receiving the ordered goods. Goods Receipts can be created for partial or full quantity of the Purchase Order.
• All the Receipts created in SAP Ariba Procurement will be sent to SAP System for record & SAP System sends back its Receipt ID to SAP Ariba Procurement.
• User can then create Invoice against such Purchase Orders. Invoice also can be created either for partial or full quantity of the Purchase Order.
• All the invoices created in Ariba Procurement solution will be sent to SAP System for record & SAP System sends back its Invoice ID to Ariba Procurement.
• Upon reaching the due date of the invoice, user can create Remittance / Payment of such eligible invoices in SAP System & the Remittance information will be sent to SAP Ariba Procurement. Remittances can be created either for partial or full amount of the Invoice.

Types of budget check:

• Budget check on Internal order and WBS
• Budget check on Funds Management

For this, you need to configure the budget/spend amounts for the fiscal year for each expense category.

The transaction flow:

• Budget is allocated via the Purchase Requisition (PR).
• The PR is simulated in SAP during budget check.
• Then, once the Purchase Order (PO) is sent to SAP, the budget is allocated and once invoice is posted to SAP, the budget is consumed.

Buyers create a Purchase Order to request for product or services from suppliers. The Purchase Order is sent from SAP Ariba Procurement solution to SAP System. Upon approval the SAP Ariba Procurement solution would send it to Ariba Network.

The following types of Purchase Order are supported:

• Standard Purchase Orders (New; Change; Cancel & Close)
• Service Purchase Orders (New; Change; Cancel & Close)

For Amount-Based Purchase Orders, the Ariba Procurement solutions map the amount to the quantity in SAP System & sets the unit price to 1.

Buyers using SAP Ariba Procurement solutions integrated with SAP System can also send Purchase Order closure information from SAP Ariba Procurement solutions to SAP System.

• Buyers need to ensure that the purchase order information in SAP Ariba Procurement solutions and SAP System are in sync to improve the fund allocation and utilization.
• Upon receiving the Purchase Order closure information, SAP System releases any unused funds that were allocated for the Purchase Order and sets any open quantity to zero.
• Buyers can specify a status while closing the Purchase Order.

Buyers can send attachments & comments from Ariba Procurement solutions to SAP System.

In SAP System, the attachments and comments are processed as follows:

• Header level using the SAP Generic Object Services (GOS) for purchase orders.
• Line level using the SAP Document Management System (DMS) for purchase orders.

The limit for the number of attachments per line item is 20 & the limit for combined attachment size is 100 MB.

Comments are supported for purchase orders at both the header and the line level to enter free form text that can be associated with a purchase order.

Pre-requisites:

• Required asynchronous & synchronous integration events are enabled in your SAP Ariba Procurement realm.
• Required parameters are enabled in your SAP Ariba Procurement realm.
• Required Cross-Reference parameters are maintained in SAP Ariba Cloud Integration Gateway (CIG).

List of asynchronous & synchronous integration events to be enabled:

• Export Purchase Orders Asynchronously
• Import Purchase Order Status Asynchronously
• Export Change Purchase Orders Asynchronously
• Import Change Purchase Orders Status Asynchronously
• Export Cancel Purchase Orders Asynchronously
• Import Cancel Purchase Order Status Asynchronously
• Import Purchase Order ERP Header Status Asynchronously
• Export Purchase Order Close Status synchronously

List of parameters to be enabled:

• Application.Procure.EnableTaxesChargesAndDiscount
• Application.Purchasing.RenumberReqLineItemSplits
• Application.Purchasing.PullCloseOrderStatusAckFromERP
• Application.Purchasing.PushCloseOrderStatusToERP
• Application.Purchasing.AllowPurchaseOrderLineClose
• Application.Procure.UseCancelOrderIntegration
• Application.Procure.EnableServiceItemFieldInRequisition
• Application.Procure.AllowAttachmentToERP
• Application.Ordering.AllowOrderAttachmentToERP
• Application.Approvable.AllowedAttachmentExtensions

Limitations:

• SAP System supports file name of attachments up to 50 characters including extension.
• SAP Ariba Procurement solutions do not support exporting zero value amount for line items in amount-based purchase orders.
• SAP System supports maximum 40 characters in line item text for create & change purchase orders.
• Attachments for service line items in purchase orders are supported only at the parent line level & not at the child line level.
• Service hierarchy support is only up to two levels.

2.1 SAP Ariba Cloud Integration Specific Configuration in SAP Ariba Procurement

2.2 SAP Ariba Cloud Integration Specific Configuration in CIG

2.3 SAP Ariba Cloud Integration Configuration in SAP System

There are 4 sub-activities in this section:

• 2.1.1 Enablement – In order to access the CIG portal, the Buyer user needs to enable the following in their SAP Ariba Procurement solutions realm: Feature Toggles, Parameters, CIG Access, Integration Events.
  • 2.1.1: To know more about these activities, please refer to the CIG Project Configuration unit of the AR822 SAP Ariba Cloud Integration Gateway Administration course on SAP Learning Hub.
• 2.1.2 Set the Order Method.
• 2.1.3 Review & Accept Changes to the Data Definition.
• 2.1.4 Update WS Namespace.

The Buyer user needs to set the "Ordering Method" to send the Purchase Order data to SAP System.

For this you need to raise a Service Request with SAP Ariba Customer Support.

• Ordering Method "ariba.sap.server.SAPPOERP" is meant for sending the Purchase Order data to SAP System ONLY.
• Ordering Method "ariba.sap.server.SAPPOERPCC" is meant for sending the Purchase Order data to your connected Ariba Network Buyer account & CC (Carbon Copy) to SAP System.

The Buyer must review (and accept) any changes in Data Definitions in order to avail new functionalities or enhancements done to the existing functionalities as appropriate to your requirements.

To Review & Accept the Data Definition Changes:

1. Login to your SAP Ariba Procurement as Buyer Administrator & under

   Manage menu, select Core Administration.

   
2. Expand Integration Manager menu, click Data Definition.
   Note

   In this section an example is shown in the screenshots for Export Purchase Order Asynchronously. You need to review & accept the changes to the data definition for the transactions as per your specific requirements.

3. Search for Purchase Order task by selecting Web Services format. All the tasks will be listed for the selection criteria. If there are any such changes to Data Definition, you can see the "Status" column is indicating "Changed" remark else it will be "Unchanged".
4. Upon receiving search results, look for Export Purchase Orders Asynchronously task. Select Review from the Actions dropdown list located on the right side of the displayed task.
5. The element which has changed will have Needs Review status & the details of changes will reflect in green color under New Field column of that element. Review the changes done to the structure & click on Accept Field Changes button.
6. Once changes done to all the elements are reviewed & accepted, click Publish All Changes to make them available for integration.

You need to update the WS Namespace. Users need to contact Ariba Customer Support for updating the namespace.

• This is required to match with the namespace defined in the standard mappings of CIG.
• In the XML file from SAP Ariba Procurement, the target namespace will appear as (for example): "xmlns="urn:Ariba:Buyer:vrealm_1234".
• User need to have the target namespace as "xmlns="urn:Ariba:Buyer:vsap". Our standard mappings in CIG work with this namespace only.

In this section you need to define lookup values which you want to map. Users need to maintain certain fields that Ariba requires for document types per transaction. Ariba recommends that you maintain fields that support more than one value in the Cross Reference Lookup table of the CIG.

Follow these steps to maintain Lookup Table:

1. Select the Document Type = PurchaseOrderExportRequest & PurchaseOrderChangeExportRequest in "Lookup Table" tab.
2. Edit the Lookup Value field: ProcurementConditionType.
3. Enter values for the fields in the TEST Environment and PROD Environment & click Save.
4. Enter Lookup Values for another Document Type as needed or click Next.

Please refer to the details & example screenshots on the next 2 pages.

Cross Reference – Lookup Table for PurchaseOrderExportRequest (with sample values):

Cross Reference – Lookup Table for PurchaseOrderChangeExportRequest (with sample values):

PurchaseOrderExportRequest & PurchaseOrderChangeExportRequest –

Procurement Condition Type:

This is applicable if you have enabled "Total Landed Cost (TLC)" feature on your Ariba Procurement site. In Ariba Procurement, you can upload additional pricing elements such as freight, insurance, custom duty, installation, discount, surcharge, etc. to ascertain total cost of acquisition of the goods. This is typically needed when you are procuring high-value items / capital goods.

When TLC feature is enabled in Ariba Procurement, you will get all the pricing elements in payload.

In CIG, you need to provide mappings between such additional pricing elements added in Ariba Procurement with the corresponding Pricing Conditions maintained in SAP system.

Ensure that following configurations of Global Settings section are in place:

• Define Authorizations: Make sure that users working on CIG AddOn configurations have necessary authorizations / roles assigned.
• Enable Integration through Middleware: This is an optional activity. Maintain a parameter if you are integrating via any of the supported middleware.
• Maintain Certificates: This is a mandatory activity to establish SSL handshake / connectivity between SAP system & CIG. Upload Loadbalancer certificate of CIG in the Trust Manager.
• Send SAP Information to CIG: Run this (SAP Data Sync) report to send specific set f information from SAP system to CIG. This information will be used during project creation & for applying accurate mapping set to your documents.
• Maintain Parameters for Attachments Support: This is an optional activity. You can maintain certain parameters to send or receive attachments for the documents where SAP standard UI doesn’t support it by default.
• Map Variants & Partitions: Applicable only for Ariba Sourcing & Ariba Procurement integration. Define unique values of variant & partition for your Ariba realms. This is required by our various export programs to apply filters & parameters while exporting data for a specific Ariba solution.
• Maintain BAdIs as per your requirements to further massage the data for filters & parameters before storing it in Ariba specific tables.

To navigate to general settings in SAP ERP and SAP S/4 HANA for SAP Ariba Procurement Transactions

• Run the transaction code SPRO – The Customizing: Execute Project screen appears.
• Click SAP Reference IMG – The Display IMG screen appears.
• Navigate to –

  Integration with Other SAP Components → SAP Ariba Cloud Integration Gateway → SAP Ariba Procurement Integration → General Settings

Ensure that following configurations of General Settings section are in place:

Setup the Interface: This program helps you to automatically create Inbound & Outbound parameters in Partner Profile for IDocs and Logical Ports & Service Names in SOAMANAGER for Web Services / Proxies.

BAdIs for Setting Up Interface: When setting up the interface, you can optionally implement the BAdI to modify any parameters.

Maintain Timestamp: You can configure the timestamp to determine the data records to be exported to SAP Ariba Procurement solutions for the following extracts:

• Remittance
• PO Close
• Advance Payment Remittance
• Send Invoice Status to P2P

Transaction Specific Settings

To configure purchase order transaction:

1. Run the truncation code SPRO – the Customizing: Execute Project screen appears.
2. Click SAP Reference IMG – the Display IMG screen appears.
3. Navigate to:

• Integration with Other SAP Components
• SAP Ariba Cloud Integration Gateway
• SAP Ariba Procurement Integration
• Application Specific Settings

All the supported transaction for SAP Ariba Procurement Integration are listed under Application Specific Settings.

Details on how to configure each of the supported procurement transaction are available in the SAP Ariba Cloud Integration Gateway Configuration Guide. However, there is no specific configuration required in SAP System to receive purchase order messages from SAP Ariba Procurement.

A receipt is an acknowledgment of the goods that have arrived.

The SAP Ariba provided integration code integrates receipts as goods receipts with Movement Type: 101

Buyers can create a negative receipt in the SAP Ariba Procurement solutions to reverse some received quantity as a result of incorrect shipment or errors. SAP Ariba provided integration code integrates negative receipts as goods receipts with Movement Type as 102.

For amount-based receipts, the SAP Ariba integration code maps the amount to the quantity in SAP System, and sets the price to 1.

In a receipt, if you have both accepted quantity and rejected quantity, only accepted quantity is integrated with the SAP ERP system. All rejected quantities are ignored.

Enable the following Asynchronous Integration events:

• Export Receipts Asynchronously
• Import Receipt Status Asynchronously

There are 2 sub-activities in this section:

• Enablement
• Review & Accept Changes to the Data Definition

3.1: These configurations have been covered in other unit(s) within this course and therefore will not be covered in this lesson.

Buyer users need to perform following activities in this section:

1. Add / update SAP System information or ensure that the information sent from your SAP System is available in CIG.
2. Create the Project for Ariba Procurement product.
3. Add a Connection.
4. Define Cross References Parameters & Lookup Values. (Not required for Receipt Flow.)
5. Define Cross Reference for UOM not required for Ariba Procurement Integration.
6. Ensure that your realm ID is correctly selected.
7. Confirm & Test the project to get ready for deployment to Production.

There are 3 sub-activities in this section:

3.3.1 Global Settings

3.3.2 General Settings

3.3.3 Transaction Specific Settings

Receipt Flow: Activity 3.3.2 SAP Ariba Cloud Integration Specific Configuration in SAP System – General Settings

To navigate to general settings in SAP ERP and SAP S/4 HANA for Ariba Network Transactions.

• Run the transaction code SPRO – The Customizing: Execute Project screen appears.

• Click SAP Reference IMG – The Display IMG screen appears.

• Navigate to –

  Integration with Other SAP Components → SAP Ariba Cloud Integration Gateway → Ariba Procurement Integration → General Settings

Ensure that following configurations of General Settings section are in place:

• Setup the Interface
• BAdIs for Setting Up the Interface
• Maintain Timestamp

Receipt Flow: Activity 3.3.3 SAP Ariba Cloud Integration Specific Configuration in SAP System – Transaction Specific Settings

Users can maintain a parameter to set the timeout in order to prevent it from getting locked in SAP System.

To maintain parameters for Goods Receipt, perform the following steps:

1. Navigate to:
   • Integration with Other SAP Components
   • SAP Ariba Cloud Integration Gateway
   • SAP Ariba Procurement Integration
   • Application Specific Settings
   • Goods Receipt.
2. Expand Goods Receipt & click IMG-Activity for Maintain Parameters for Goods Receipt Create – the Parameters -Receipt Export Request screen appears.
   Note

   This wait time is mainly to check if the PO is locked for any other activity & wait for the PO get released.
3. Maintain the parameter mentioned in the following table:

   Parameter Name	Description	Supported values
   GOODS_RECEIPTS_CREATE	Configure time-out settings (in seconds) for the goods receipt export task to prevent it from being locked in the SAP System.	Variable Name: GOODS_RECEIPTS_CREATE Field Name: Leave it blank Number: 0000 Variant: Provide a variant for SAP Ariba Procurement solutions. VREALM2 (example) Partition: Provide a partition for SAP Ariba Procurement solutions. PREALM2 (example) Low: 5

Invoices can be sent by suppliers on Ariba Network to buyers on SAP Ariba Procurement solutions or can be directly created by buyers within SAP Ariba Procurement solutions. After reconciliation, these invoices are exported / sent to SAP System.

The following types of invoices are supported:

• PO-based Invoice

• Non-PO Invoice

• Service Invoice

• Line Level Credit Memo

• Header Level Credit Memo

Enable the following Asynchronous Integration events:

• Export Payment Requests Asynchronously
• Import Payment Requests Status Asynchronously

Following discount scenarios are supported:

• Discounts entered at the header and line-level on a PO based invoice.
• Discounts entered at header and line-level on a non-PO based invoice.
• Discounts entered at header and line on a line-level credit memo.

Shipping & Handling Charges are sent to SAP System:

• Shipping & handling charges with taxes – as service lines for direct posting to General Ledger (G/L) accounts.
• Shipping & handling charges – as unplanned delivery cost.

Attachments: Processed only at header level using the SAP Generic Object Services (GOS).

Limitations

• Parked invoices are not supported.
• Comments are not supported for invoices.
• Assets as an account assignment category is not supported for non-PO based invoice.
• Attachments at the line level are not supported for invoices.

There are 4 sub-activities in this section:

4.1.1 Enablement

4.1.2 Review & Accept Changes to the Data Definition

4.1.1 & 4.1.2: These configurations have been covered in other unit(s) within this course and therefore will not be covered in this lesson.

4.1.3 Required Exception Rules are configured

4.1.4 Required Tax Configurations are maintained

In this section, user needs to perform following activities. All these are discussed in CIG Configuration session. Here we will focus on only those configurations in CIG which are very specific to Invoice integration:

• Enable CIG for your Ariba Procurement Realm.
• Provide Basic Information in the project in CIG for "Product = Ariba Procurement".
• Define Connection information to establish connectivity between CIG & your SAP system.
• Define Cross Reference for Parameter for Invoice (Doc Type – PaymentExportRequest).
• Define Cross Reference for UOM not required for Ariba Procurement Integration.
• Define Cross Reference for Lookup Table for Invoice (Doc Type – PaymentExportRequest).
• Review project configuration & Confirm the Project.
• Test the Project.
• Deploy the Project.

Cross Reference – Parameters for PaymentExportRequest (with sample values):

In this section you need to define values in the parameter fields which you want to map. The transactions & the related parameters are added by the administrator. You can define the values for both test & production environments.

Follow these steps to define Cross Reference - Parameter:

1. Select the Document Type = PaymentExportRequest in "Parameters" tab & click Add.
2. Edit the entry.
3. Enter values for the parameters in the TEST Environment and PROD Environment & click Save. If you want to have different value in PROD Environment, uncheck the box Use same values.
4. Enter parameter values for another Document Type as needed or click Next.

Please refer to the details & example screenshots in this section.

• SAP Non PO FI Post Indicator: Check the box to post non-PO (FI) invoice.

  SAP FI Document Type: Provide the document type with which you would want the non-PO FI Invoice to be created in SAP system.

• Subsequent Credit Doc Type:
• SAP Document Type: Provide the document type with which you would want the PO-based invoice to be created in your SAP system.
• Subsequent Debit Doc Type:

In this section you need to define lookup values which you want to map. Users need to maintain certain fields that Ariba requires for document types per transaction. Ariba recommends that you maintain fields that support more than one value in the Cross Reference Lookup table of the CIG.

Follow these steps to maintain Lookup Table:

1. Select the Document Type = PaymentExportRequest in "Lookup Table" tab.
2. Edit the Lookup Value field: WithholdingTaxMap.
3. Enter values for the fields in the TEST Environment and PROD Environment & click Save.
4. Enter Lookup Values for another Document Type as needed or click Next.

Please refer to the details & example screenshots in this section.

Invoice Flow: Activity 4.2 SAP Ariba Cloud Integration Specific Configuration in CIG

Cross Reference – Lookup Table for PaymentExportRequest (with sample values):

PaymentExportRequest –

Withholding Tax Map:

This is applicable if you have enabled "Withholding Tax" feature on your Ariba Procurement site. In Ariba Procurement, you can either upload Withholding Tax Codes which are different from SAP system or you can export Withholding Tax Codes from SAP system using the standard Master Data extract.

If you choose to upload Withholding Tax Codes which are different from SAP system, then in CIG, you need to provide mappings between such tax codes with tax codes of SAP system.

If you choose to import Withholding Tax Codes from SAP system, you don’t need to maintain this mapping.

Ensure that following configurations of Global Settings section are in place –

• Define Authorizations
• Enable Integration through Middleware
• Maintain Certificates
• Send SAP Information to CIG
• Maintain Parameters for Attachments Support
• Map Variants & Partitions
• Maintain BAdIs as per your requirements

To navigate to General Settings in SAP ERP and SAP S/4 HANA for Ariba Network Transactions:

1. Run the transaction code SPRO – the Customizing: Execute Project screen appears.
2. Click SAP Reference IMG – the Display IMG screen appears.
3. Navigate to – Integration with Other SAP Components → SAP Ariba Cloud Integration Gateway → Ariba Procurement Integration → General Settings

Ensure that following configurations of General Settings section are in place:

• Setup the Interface
• BAdIs for Setting Up the Interface
• Maintain Timestamp

Users can maintain a parameter to set the timeout in order to prevent it from getting locked in SAP System.

To maintain parameters for Invoice, perform the following steps:

1. Navigate to:
   • Integration with Other SAP Components
   • SAP Ariba Cloud Integration Gateway
   • SAP Ariba Procurement Integration
   • Application Specific Settings
   • Invoice
2. Expand Invoice & click IMG-Activity for Maintain Parameters for Invoice – the Parameters - Payment Export Request screen appears.
3. Maintain the parameter mentioned in the table:
   Note

   This wait time is mainly to check if the PO is locked for any other activity & wait for the PO get released.

   

   Parameter Name	Description	Supported values
   INVOICE_PUSH	Configure time-out settings (in seconds) for the invoice export task to prevent it from being locked in the SAP System.	Variable Name: INVOICE_PUSH Field Name: Leave it blank Number: 0000 Variant: Provide a variant for SAP Ariba Procurement solutions. VREALM2 (example) Partition: Provide a partition for SAP Ariba Procurement solutions. PREALM2 (example) Low: 5

This is required to post an invoice in SAP system only when Ariba Procurement solution is integrated with an external tax engine. Maintain one to one relation between external tax jurisdiction code and SAP tax jurisdiction code.

To maintain this relationship, perform the following steps:

1. Navigate to Integration with Other SAP Components → SAP Ariba Cloud Integration Gateway → SAP Ariba Procurement Integration → Application Specific Settings → Invoice.
2. Expand Invoice & click IMG-Activity for Maintain TaxJurisdiction code relation between SAP and External Tax Engine – The Change View "Tax Jurisdiction Mapping-Ext Tax Engine to SAP Jurisdicti" screen appears.
3. Maintain the appropriate values as mentioned in the table on the next slide.

To maintain Tax Jurisdiction Code in SAP system:

1. Login to transaction code FTXP.
2. Select Country Code.
3. Select Tax Code.
4. Define Tax Jurisdiction (Code).
5. Define Valid From date.