Ensuring Chemical Supplier Compliance in the Value Chain

Objectives

After completing this lesson, you will be able to:

  • Discuss the Chemical Supplier Compliance Process

How to Ensure Supplier Compliance

Introduction: Supplier Compliance in the Value Chain

This process supports a check that is carried out in purchasing documents.

For each compliance-relevant product that is added to the purchasing document, the system checks the status of the supplier assessment.

If the supplier of all items is compliant, the document can be processed. If the supplier isn't approved for an item, the item and the business transaction are blocked.

For a blocked item, a compliance request for the product steward specialist is created to check the assessment of the supplier. If the compliance result of the assessment is positive, the block is released.

Task 2: Manage Basic Compliance Data

The Master Data Specialist - Product Compliance Jasmine checks if the compliance view for the raw material exists and assigns a product from the product master. Jasmine also assigns a supplier to the compliance view and requests the assessment of the supplier compliance.

Task 4: Create a purchase order

Purchaser Claire creates a purchase order for a raw material for which the assessment of the supplier compliance is still in progress. The system verifies the supplier compliance status and blocks the purchase order.

Task 5: Check supplier data

locked, a compliance request is generated. The Product Stewardship Specialist - Product Compliance Otto finds the created compliance request and checks the issue. Finally Otto approves the data.

Task 6: Control purchase data

finally Purchaser Claire checks the status of the purchasing order. The document is no longer blocked.

Now you should have an impression of "how to maintain Supplier Compliance in the Value Chain".

Ensure chemical supplier compliance (5OJ)

With this exercise, a check is performed in purchasing documents that considers the status of the supplier assessment of any compliance-relevant product. If the supplier of all items is compliant, the document can be processed. If the supplier is not approved for an item, the item, and consequently the business transaction, is blocked.

For a blocked item, a compliance request for the product steward specialist is created to check the assessment of the supplier. If the compliance result of the assessment is positive, the block is released.

Steps

  1. Log on to the SAP S/4HANA Public Cloud training system with your user credentials and assign the relevant business roles to your user.

    Assign:

    Role IDDescription
    BR_PURCHASERPurchaser
    BR_BPC_EXPERTConfiguration Expert - Business Process Configuration
    BR_MD_SPECIALIST_PCLMaster Data Specialist - Product Compliance
    BR_PRODSTWRD_SPLST_PCLProduct Stewardship Specialist - Product Compliance
    1. Log on to the SAP S/4HANA Public Cloud training system with your user credentials.

    2. Navigate to the Maintain Business Users application.

    3. Scroll through the list of users to locate your business user.

    4. Select your business user.

    5. Choose Add and search for the required business roles.

    6. Add the roles to your user.

    7. Select the checkbox beside the business roles and apply them. Repeat it for every mentioned role.

    8. Choose OK to close the dialog box.

      Result

      You now see the business roles assigned.
    9. Choose Save.

    10. Refresh your screen.

Task 1: Adapt Behavior of Compliance Checks in Value Chain

In the Adapt Behavior of Compliance Checks in Value Chain activity, the configuration expert can specify how the supplier check behaves if the supplier assessment is still in progress. The configuration expert can specify whether the supplier check blocks a document in this case or not. Carry out the described steps to check the configuration.

Steps

  1. Open theManage Your Solution app.

  2. Choose Configure Your Solution

  3. Search for Compliance Checks.

    Select the result for "R&D Engineering" and "Settings for the Integration".

  4. In the Product Compliance Configuration screen, go to the configuration step Adapt Behavior of Compliance Checks in Value Chain and choose Configure.

    Enter the following:

    Adapt behavior of checks

    FieldValue
    Issue:S_CONFIGIP (Supplier Assessment is in Progress)
    Origin:S_PUR  (Purchasing)
    Result:S_BLK_CRQ (Blocked and request triggered)

    Save it.

Task 2: Assign Product and Supplier to the Compliance View and Request

The Master Data Specialist - Product Compliance checks if the compliance view for the raw material exists and assigns a product from the product master. The Master Data Specialist - Product Compliance also assigns a supplier to the compliance view and requests the assessment of the supplier compliance.

Steps

  1. Choose the app Manage Basic Compliance Data - Raw Materials.

    Search for material: RMPC06.

    Open detail screen.

    1. Execute the app and search for material RMPC06.

  2. Check the view for the "Related product in product master " and check whether the product is assigned.

    1. Check the view for the "Related product in product master ".

    2. Related product in product master is assigned.

  3. Open the view "Suppliers of Raw Material".

    Add a Supplier 10300001 with the responsible unit Permitted for all Responsible Units (S_ALL).

    Open the detail screen and chooseSet Compliance Data StatusSet to Requested.

    1. Scroll down to "Suppliers of Raw Material".

    2. Please select the "Create" button inside suppliers area.

      A pop-up appears where you can enter the following data:

      FieldValue
      Supplier:10300001
      Responsible Unit:Permitted for all Responsible Units (S_ALL)
    3. Open the detail screen for the supplier information.

    4. Select the enrty Set Compliance Data StatusSet to Requested inside header area.

      Check the "Compliance Data" and the "Supplier Status for Raw Material" Information.

    5. Close the app.

Task 3: Create Purchase Order

The Purchaser creates a purchase order for a raw material for which the assessment of the supplier compliance is still in progress. The system verifies the supplier compliance status and blocksthe purchase order.

Note that the supplier check needs compliance data for the check and, therefore, does not support the use of one-time suppliers.

Steps

  1. Open the Manage Purchase Orders app and choose Create.

    Enter now only the supplier number. All other required fields are filled in automatically.

    FieldValue
    Supplier:10300001

    Scroll down to Purchase Order Items area and select the Createbutton. Enter the following:

    FieldValue
    Material:RMPC06
    Plant:1010
    Order Quantity:1
    Net Order Price:1

    Confirm these data by pressing the Enter-button on your keyboard.

    Note
    The purchase order item is added and the red marking line turns into orange. Press again the Enter button on your keyboard until the red color changes to orange.

    The color doesn't change to green.

    If necessary Apply these data.

    1. Execute the app. Here you can search for existing purchase orders, or create new one. You decide to create a new one.

    2. Inside the General Information area, a lot of required fields exist. When you enter the supplier, all of them are filled out by supplier data.

    3. Add a purchase item. Use the data, given inside exercise.

      First, the item dynpro gets a red line, but when you finished editing the relevant data, the line color changes to orange, not to green.

  2. Choose the button Order.

    Note
    Note, that you can only process the purchase order, when the color of the line of the purchase order item is orange or green. If the line is red, data is missing that you need to enter.

    Choose the Product Compliance tab and control the data of the compliance status.

    1. Choose the Order button inside footer area. Order number is displayed inside header area. Write down this number: _____________________________

    2. Close the app and open Home screen.

Task 4: Check Compliance Request

After the purchase order is created and blocked, a compliance request is generated. The Product Stewardship Specialist - Product Compliancefinds the created compliance request in the Process Requests from Logistics app and checks the issue. Since the supplier assessment is missing, the Product Stewardship Specialist - Product Compliance informs the Master Data Specialist - Product Complianceto assess the compliance of the supplier.

Steps

  1. Open the Process Requests from Logistics- For Raw Materials app.

    Open the request for product: Raw PMA 06. Take care on the Origin "Purchase Order". Check the detail screen.

    Note
    The Compliance Request from Logistics screen opens, displaying the The supplier assessment is not complete in the header information.
    1. Perform the exercise.

    2. Close the app.

Task 5: Approve Supplier

Note
To complete this exercise, you must have the Master Data Specialist - Product Compliance (BR_MD_SPECIALIST_PCL) business role assigned to your user.

Steps

  1. Open the Manage Basic Compliance Data - Raw Materials app.

    Search for material: RMPC06.

    Open detail screen and then theSuppliers tab page. One entry forSuppliers of Raw Material is displayed.

    Open detail screen for suppliers information.

    1. Execute the app.

    2. Search for material: Raw PMA 06.

    3. Click the result line. Detail screen opens.

    4. Open Supplier tab page. Click on the information to open the detail screen.

  2. Supplier information is displayed. Supplier status is set to "In Progress".

    Choose the menu path Set Supplier StatusApprove.

    Check the Supplier Status for Raw Material.

    1. Choose the path Set Supplier StatusApprove., which can be found inside header area.

    2. Check the Supplier Status. It's set to Approved.

    3. Close the application.

Task 6: Check supplier status inside purchase order

Note
To complete this exercise, you must have the Purchaser (BR_PURCHASER) business role assigned to your user.

Steps

  1. Open the Manage Purchase Orders app.

    In the Purchase Order field, enter the number of the purchase order that you have created and choose Go.

    1. Execute the app and enter your PO number.

      As an alternative search criteria, enter material number RMPC06.

  2. Choose the row with your purchase order.

    Choose the Product Compliance tab and view the compliance status.

    The Product Compliance Supplier Check Statushas changed to OK - Approved.

    Note
    If the status stays on "Blocked by Supplier", please switch to Edit mode. The refresh of data takes place and the status is switched to OK - Approved.
    1. Open the detail screen of your PO.

    2. Open the Compliance view.

      If the Product Compliance Supplier Check Status stays on blocked, switch to Edit mode. A data refresh takes place.

  3. Order your Purchase Order.

    1. Switch to Edit Mode.

    2. Click on Order inside footer line.

    3. Leave the application.

    4. Close the application.

Chemical Supplier Compliance Process

Supplier compliance in the value chain: Overview

This process supports a check that is carried out in purchasing documents. For each compliance-relevant product that is added to the purchasing document, the system checks the status of the supplier assessment.

If the supplier of all items is compliant, the document can be processed.

If the supplier isn't approved for an item, the item and the business transaction are blocked.

For a blocked item, a compliance request for the product steward specialist is created to check the assessment of the supplier. If the compliance result of the assessment is positive, the block is released.

Watch the following video to understand how a possible process could look like. You learn which users and which roles are necessary to work with the supplier compliance in the value chain.

Applicable Process Steps

To sum up the steps you saw in that video, here are the general process steps listed:

  • Master Data Specialist: Defines compliance data and assigns supplier for raw materials
  • Purchaser: Creates Purchase Order and checks supplier status
  • Product Steward Specialist: Checks the compliance request
  • Master Data Specialist: Checks approved compliance information for supplier
  • Purchaser: Processes Purchase Order

Benefits

The benefits of the Chemical Compliance in the value chain are:

  • Mitigate compliance risks with up-to-date information integrated into the value chain
  • Integrate compliance marketability checks in the procurement processes
  • Inform product steward specialists about new suppliers
  • Go through approval process to validate restrictions for purchasing
Note

This process flow is covered in scope Item 5OJ- Supplier Compliance in the Value Chain

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