Locate Scope Item in Line of Business
Scope item Automation of Source-to-Pay with Ariba Network (42K) belongs to the business area Operational Procurement, which is part of the Sourcing and Procurement line of business.
Introduction
The scope item Automation of Source-to-Pay with Ariba Network (42K), lets you as a purchasing expert or an accounts payable accountant focus on value-driven activities with SAP Ariba Commerce Automation integration with your suppliers in the Ariba Network, and drive productivity with nearly touchless orders and invoices. Since payment is integrated, you can pay your suppliers automatically.
Automation of purchase order to payment processing in the Ariba Network with SAP Ariba Commerce Automation integration enables you to connect seamlessly from SAP S/4HANA to your suppliers in the Ariba Network. You can send them requests for quotations, asking them for price and quantity information, as well as for shipping costs. You can also send electronic purchase orders and goods receipts to your suppliers using the Ariba Network, and you can receive electronic order confirmations for materials, advanced shipping notifications, and invoices in SAP S/4HANA Cloud from your suppliers. You can use Ariba Network integration in the procurement of direct or indirect materials and in the procurement of project-based services processes. You can also send payment advice in electronic form to your suppliers in Ariba Network. All data is routed through the SAP® Integration Suite, managed gateway for spend management and SAP Business Network (Managed Gateway for Spend&Network)..
Digitized collaboration with your suppliers in the Ariba Network supports you in speeding up procurement to payment processes and in reducing the number of manual process steps, reducing the cost of transactions with your suppliers.
Automation of Source-to-Pay with Ariba Network (42K) uses the Managed Gateway for Spend&Network. The SAP S/4HANA Cloud to Ariba Network integration through the SAP Ariba Cloud Integration Gateway supports the exchange of documents related to standard procurement processes like Request for Quotation, Purchase Order, Advance Ship Notice, Goods Receipt, Invoice, Invoice Status Update, and Payment Advice.
This scope item is not part of SAP S/4HANA shipment and requires additional licenses for Ariba Network.
The figure, Process Overview, shows the process diagram for Automation of Source-to-Pay with Ariba Network (42K).
Business Benefits
The following are the business benefits:
- Reduced transaction costs
- Accelerated procurement processes
- Improved compliance
- Reduced manual process steps and the achievement of 98% touchless invoice processing
- Increased productivity of procurement and accounts payable staff
- Reduced inquiries about payments from suppliers
- Increased productivity in the Accounts Payables department
Key Process Flows
The following are the key process flow:
- Send approved purchase orders electronically to your suppliers using the Ariba Network.
- Receive digital order confirmations automatically from your suppliers.
- Process digital advanced shipping notification sent by your suppliers electronically in the Ariba Network into inbound deliveries in SAP S/4HANA.
- Send goods receipt automatically to suppliers in the Ariba Network.
- Receive invoices from suppliers electronically in the Ariba Network.
- Update suppliers digitally in the Ariba Network on invoice status updates.
- Start payment runs on receiving supplier invoices in SAP S/4HANA Accounts Payable.
- Send payment advice automatically to suppliers using the Ariba Network.
| Process Step No. | Process Step | Details | SOAP Service |
|---|---|---|---|
| 1 | Create request for quotation | In SAP S/4HANA Cloud, a purchaser creates a request for quotation, asking for price and quantity information for material items, as well as for shipping costs. | N/A |
| 2 | Receive request for quotation | The request for quotation is transferred from SAP S/4HANA Cloud to the Ariba Network. | Request For Quotation S4 Request Outbound A2A (RequestForQuotationS4Request_Out) |
| 3 | Submit price and quantity quote | On the Ariba Network, suppliers can submit their responses. For more information, see How to respond to a Request for Quotation (RFQ) posting | N/A |
| 4 | Close supplier's bidding | On the Ariba Network, buyers can close the suppliers' bidding before the period expires, for example, if they have received a sufficient number of bids (optional step). For more information, see How to close postings | N/A |
| 5 | Send submitted quote(s) | The responses from suppliers are sent to SAP S/4HANA Cloud. | Supplier Quotation Request Inbound (A2A) (SupplierQuotationS4Request_In) |
| 6 | Receive submitted quotes | The corresponding supplier quotations are automatically created in SAP S/4HANA Cloud and can be displayed by purchasers. | N/A |
| 7 | Award supplier quotation | The purchaser awards the supplier quotation in SAP S/4HANA Cloud. | N/A |
| 8 | Approve award of supplier quotation (optional) | The award of the supplier quotation can be approved, for example, by a purchasing manager. | N/A |
| 9 | Create and send purchase order | The purchaser creates a purchase order, which is sent from SAP S/4HANA Cloud to the Ariba Network. The purchase order can contain material items, lean service items, or enhanced limit items. Changes to purchase orders or cancellations can also be transferred to Ariba Network. Note: You can only transfer one text on the purchase order header and one on each item. | Purchase Order - Send, Update, Cancel (OrderRequest_Out) |
| 10 | Receive purchase order | Suppliers receive the purchase orders or purchase order changes or cancellations on the Ariba Network. | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) |
| 11 or 11A | Create and send purchase order confirmation (optional) OR Create and send service entry sheet | In case of material items, suppliers can send purchase order confirmations to the purchasers in SAP S/4HANA Cloud. Or, they can reject the purchase order. Note: Depending on your settings for the Ariba Network, this step can be optional. For more information, see Topics about confirming or rejecting orders In the case of lean service items or enhanced limit items, suppliers can create and send a service entry sheet. For enhanced limit items, they can specify a description of the service, the quantity, unit of measure, price per unit of measure, and the period of performance. For more information, see Topics about sending service sheets to customers | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) |
| 12 + 13 or 13A | Receive and check purchase order confirmation (optional) OR Review and approve service entry sheet | In the case of material items, purchasers can receive purchase order confirmations from their suppliers using the Ariba Network and display them in SAP S/4 HANA Cloud. In the case of lean service items or limit items, purchasers can review and approve or reject the service entry sheet. | Order Confirmation - Receive (OrderConfirmationRequest_In) Service Entry Sheet - Send Status Update Notification (ServiceEntrySheetStsNotif_Out) |
| 14 + 15 | Create and send ship notice | In case of material items, suppliers can send ship notices to purchasers. For more information, see Topics about sending ship notices to customers | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) |
| 16 | Receive ship notice | In SAP S4/HANA Cloud, advanced shipping notifications are created for the ship notices received from their suppliers using the Ariba Network. | Inbound Delivery - Create (DeliveryRequest_In) |
| 17 | Check inbound delivery | The purchaser can check in the purchase order when an inbound delivery document has been created. | N/A |
| 18 | Post and send goods receipt | Once the goods have been received, a warehouse clerk creates a goods receipt. | Material Document Create Notification for async Calls (Outbound) (MaterialDocumentCreateNotification_Async_Out) |
| 19 | Receive goods receipt | The supplier receives the goods receipt using the Ariba Network. | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) |
| 20 | Create and send supplier invoice | The supplier creates an invoice and sends it to SAP/S4HANA Cloud from the Ariba Newtork. For more information, see How to create a PO based invoice | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) |
| Receive supplier invoice (parked or posted) | An accounts payable accountant receives an invoice in SAP S/4HANA Cloud. It gets the status parked or posted, depending on the settings made in the configuration item Ariba Network Integration for Buyers (SOAP). | Supplier Invoice - Create (B2B) (InvoiceRequest_In) | |
| Send status updates for invoices | Status updates for supplier invoices are sent to your suppliers on the Ariba Network when an invoice is posted or parked. | Supplier Invoice – Send Status Update Notifications (InvoiceStatusUpdateNotification_Out) | |
| Receive supplier invoice status update | Your supplier sees the changed invoice status on the Ariba Network. For more information, see Invoice status levels | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) | |
| 21 | Release blocked invoice / pay / reverse | Your accounts payable accountant processes the invoice. The invoice can be paid, canceled, reconciled, or a blocked invoice can be released. These actions change the status of an invoice. | N/A |
| 22 | Receive supplier invoice status update | Your supplier sees the changed invoice status on the Ariba Network. For more information, see Invoice status levels | Supplier Invoice – Send Status Update Notifications (InvoiceStatusUpdateNotification_Out) |
| 23 | Payment | You can send a payment advice to your suppliers using the Ariba Network. (Payment advices can be canceled, if necessary.) | Creditor Payment Advice Out (PaymentAdviceNotification_Out) Payment Advice Cancelation Notification Outbound (PaymentAdviceCancellationNotification_Out) |
| 24 | Check invoice and payment status | Your supplier sees the changed invoice status on the Ariba Network. The status changes to paid. For more information, see Invoice status levels | (internal communication between Managed Gateway for Spend&Network and the Ariba Network) |
General Notes and Restrictions
The scope item, Automation of Source-to-Pay with Ariba Network (42K), is intended to cover the same business processes as its predecessor Automated Purchase-to-Pay with SAP Ariba Commerce Automation (J82). Since Automation of Source-to-Pay with Ariba Network (42K) leverages the advantages of the Managed Gateway for Spend&Network, please do not implement Automated Purchase-to-Pay with SAP Ariba Commerce Automation (J82) as of now. Existing implementations of Automated Purchase-to-Pay with SAP Ariba Commerce Automation (J82) can still be used until further notice.
Within Automation of Source-to-Pay with Ariba Network (42K), the process Automated Purchase-to-Pay is currently different from its predecessor Automated Purchase-to-Pay with SAP Ariba Commerce Automation (J82) in the following aspects:
Only standard items, including lean service items, and enhanced limit items of product type group service are supported.
NoteEnhanced limits for material items are currently not supported.
Currently, you must not create purchase orders that contain both enhanced limit items and material items or lean service items. Some follow-on documents, such as purchase order confirmations, do not support this and will fail.
Currently, you cannot create purchase order confirmations for enhanced limits.
Lean service items and enhanced limit items require a service entry sheet as a follow-on document. This document is necessary to enable invoicing of the service or limit items. This means that purchasers must not clear theGR Indicator (goods receipt indicator) checkbox when creating a purchase order item for a lean service or for an enhanced limit.
Cancellation of service entry sheets is not supported. This also applies to service entry sheets for enhanced limit items.
Partial confirmations are not supported. You can only send confirmations for the entire purchase order, that is, for all material items.
Return items are not supported.
Attachments on item level are not supported. For inbound deliveries, no attachments are supported.
Integration with more than one buyer account on the Ariba Network is not supported.
Document status updates from the Ariba Network to SAP S/4HANA Cloud are not supported.
Customer-created fields cannot be mapped using the mapping tool in the Managed Gateway for Spend&Network.
For all functions, there are dependencies on your configuration settings in SAP S/4HANA Cloud and on your settings for the transaction rules on your buyer account on the Ariba Network. The transaction rule settings required for this scope item refine the restrictions further and may cause some additional restrictions. The transaction rules are described in the Setup Instructions. (You can find the guide in the Best Practices Explorer 42K).
- Streamline the process of service procurement in the Ariba Network.
- Create service PO in SAP S/4HANA Cloud and send it to suppliers in the Ariba Network.
- The service entry sheet is created by the supplier in the Ariba Network.
- Receive the service entry sheet and approve it in SAP S/4HANA Cloud.
Quick Enablement of Suppliers on the SAP Ariba Network
If quick enablement for suppliers is enabled in the Ariba Network, purchasers can now initiate trading relationships with new suppliers by adding them to a purchase order. When a purchase order for a new supplier is transferred, the Ariba Network automatically creates an account and sends an invitation e-mail to the supplier. When supplier registration is completed, the new supplier can access the Ariba Network and process the purchase order.
The following are the Restrictions:
Quick enablement can only be used for suppliers that exist in SAP S/4HANA.
Because invitations from the Ariba Network are always sent to suppliers by e-mail, quick enablement can only be used for suppliers with a valid e-mail address specified in SAP S/4HANA Cloud. No other communication methods are supported.
Additional Features
Automation of Source-to-Pay with Ariba Network (42K) supports the following features.
Support of price tolerance in purchase orders:
Offer purchase-order price-tolerance intervals to which suppliers must adhere in purchase-order confirmations
Enable suppliers to change the price in order confirmations if the price is within the price tolerances allowed
Further enhance collaboration with suppliers: buyers can add specific instructions and information for suppliers in a different header and item texts in purchase orders
Support price-basis quantity factors
Allow onboarding of new suppliers through quote automation by sending central RFQs to suppliers to initiate the onboarding process
You can use this app to create Requests for Quotations (RFQs) in SAP S/4HANA. There are different processes that you can start from within the Manage RFQs app:
You send your created RFQs later to SAP Ariba Sourcing, where the bidders and suppliers can place their bids. After you have decided which bidder or supplier should receive the award, you send the awarded quotation back to SAP S/4HANA. A purchase order or a contract is created automatically in the background. You can display it in the Manage Purchase Orders app or in the Manage Purchase Contracts app.
To request only price and quantity information or shipping costs, you send these RFQs later to the the Ariba Network, where the suppliers can create their bids. These bids are sent back to SAP S/4HANA, where you can award one of them.
You can also create price requests in SAP S/4HANA and send them directly to your supplier over e-mail or as a printed version by mail. You receive the quotations from your suppliers and then create the quotations in SAP S/4HANA manually.
Support of Lean Service Items in Request for Quotations with SAP Ariba Sourcing
Purchasers can now create a Request for Quotations (RFQ) by adding lean services along with goods in SAP S/4HANA Cloud through integration with SAP Ariba Sourcing. Purchasers can set a delivery range with a service start and end date for every service type of item.
- The purchaser can create an RFQ of type external sourcing request by adding lean service items and other items of type material.
- Strategic purchasers in SAP Ariba Sourcing can view the created sourcing request by searching with the reference of the RFQ ID and perform other sourcing-related activities as normal to finalize the bid and award.
- Send the quote to external system. This creates a supplier quotation and follow-on document like purchase order or purchase contract in SAP S/4HANA Cloud for the respective items of lean service and/or material type.
- The sourcing request in SAP Ariba Sourcing will include a delivery range for lean service items, which is visible to suppliers for bidding.
SAP Fiori Apps
The following table lists the SAP Fiori apps that are used in the Automation of Source-to-Pay with Ariba Network Process steps.
| Process Step | Business Role | SAP Fiori App |
|---|---|---|
| Create Request for Quotation | Purchaser | Manage RFQs |
| Submit Price Quote (as a Supplier in Ariba Discovery) | Supplier in Ariba Discovery | This activity is used to submit price quote in Ariba discovery. |
| Display Supplier Quotation (optional) | Purchaser | Manage RFQs |
| Award Quote | Purchaser | Manage Supplier Quotations |
| Approval of Supplier Quotation (optional) | Purchasing Manager | My Inbox All Items |
| Create Purchase Order | Purchaser | Manage RFQs |
| Display automatically created Info Record from Award | Purchasing Manager | Manage Supplier Quotations |
| Display automatically created Purchase Order | Purchaser | Manage RFQs / Manage Purchase Orders |
| Create Purchase Order using Advanced app (Optional) | Purchaser | Create Purchase Order Advanced |
| Approve Purchase Order | Purchasing Manager | My Inbox All Items |
| Display Purchase Order (as a Supplier in the Ariba Network) | Supplier(!) using supplier.ariba.com | This activity is used to display the purchase order in the Ariba Network. |
| Change Purchase Order (optional) | Purchaser | Manage Purchase Orders |
| Create Confirmation in Ariba Network (Optional) | Supplier(!) using supplier.ariba.com | This activity is used to edit/display a purchase order. |
| Check Purchase Order Confirmation(Optional) | Purchaser | Manage Purchase Orders |
| Create Shipping Notification in Ariba Network (Optional) | Supplier(!) using supplier.ariba.com | This activity is used to edit/display a purchase order. |
| Check Inbound Delivery for Purchase Order (Optional) | Purchaser | Manage Purchase Orders |
| Post Goods Receipt for Purchasing Document | Warehouse Clerk | Post Goods Receipt for Purchasing Document |
| Check Goods Receipt Details (optional) | Warehouse Clerk | Material Documents Overview |
| Display Goods Receipt (as a Supplier in the Ariba Network) | Supplier(!) using supplier.ariba.com | This activity is used to display the goods receipt in the Ariba Network. |
| Create Supplier Invoice with PO/GR relation | Supplier(!) using supplier.ariba.com | This activity is used to create the supplier invoice in the Ariba Network. |
| Release Supplier Invoice for Payment (optional) | Accounts Payable Accountant | Supplier Invoices List |
| Display Invoice Status Change (as a Supplier in the Ariba Network) | Supplier(!) using supplier.ariba.com | This activity is used to display the status of the update of the purchase order in the Ariba Network. |
| Pay Single Invoice | ||
| Schedule Payment Proposals | Accounts Payable Accountant | Manage Automatic Payments |
| Revise Payment Proposal | Accounts Payable Accountant | Revise Payment Proposals |
| Release Payment Proposal | Accounts Payable Accountant | Manage Automatic Payments |
| Approval by First Approver | Accounts Payable Manager | Approve Bank Payments |
| Bank Payment Approval (Optional based on Cash Management) | ||
| Approval by First Approver | Accounts Payable Manager | Approve Bank Payments |
| Approval by Second Approver | Cash Manager | Approve Bank Payments |
| Send Payment Advice to Supplier | Accounts Payable Accountant | Manage Automatic Payments |
| Check Remittance Advice | Supplier(!) using supplier.ariba.com | This activity is used to check the remittance advice in Ariba Network. |
| Create Lean Services Purchase Order using Advanced App (optional) | Purchaser | Create Purchase Order Advanced |
| Approve Purchase Order (Optional) | Purchasing Manager | My Inbox All Items |
| Display Purchase Order (as a Supplier in the Ariba Network) | Supplier(!) using supplier.ariba.com | This activity is used to display the purchase order in Ariba Network. |
| Create Service Entry Sheet (Optional) | Supplier(!) using supplier.ariba.com | This activity is used to create a Service Entry Sheet in Ariba Network. |
| Check Service Entry Sheet (Optional) | Purchaser | Manage Service Entry Sheets Lean Services |
| Release Service Entry Sheet | Purchasing Manager | My Inbox All Items |
| Create Supplier Invoice with SES relation | Supplier(!) using supplier.ariba.com | This activity is used to create the supplier invoice in Ariba Network. |
| Display Invoice | Purchaser | Change Purchase Order Advanced |
| Create Enhanced Limit Purchase Order | Purchaser | Manage Purchase Orders |
| Create Service Entry Sheet | Supplier(!) using supplier.ariba.com | This activity is used to create a Service Entry Sheet in Ariba Network. |
| Create Supplier Invoice | Supplier(!) using supplier.ariba.com | This activity is used to create the supplier invoice in Ariba Network. |
Configuration Apps
In Sourcing and Procurement, several Self-service Configuration UIs (SSCUIs), also referred to as configuration steps, are available in the Manage Your Solution app. The following SSCUIs affect the area of Automation of Source-to-Pay with Ariba Network:
| Integration | |
|---|---|
| Settings for Parking of Supplier Invoices |