Business Blue Print Document

TP-SVC-005-01

Document Name Business Process Document

Document Location Project Repository
Project Name UPMPL
Project ID NA
Client Name Unitech Property Management Pvt. Ltd.
Prepared By Sameer Vaidya
Prepared On 14/04/2012

Document Version History

Reviewed
Version Document Name Date Author Change Control
By
V1.0 Procurement of 14/04/2012 Mr. Mr. Manish
Services - Sameer Sawant
UPMPL_BPD_MM2D Vaidya

Document Approvals

Name Responsibility Signature Date

Highbar technologies
22/04/2012
Consultant Mr. Sameer Vaidya
22/04/2012
Project Manager Mr. Manish Sawant

Reviewed By

Unitech Property Management Pvt. Ltd.

Core Team Mr. Ankur Tiwari

Core Team

Process Owner Mr. Sukhbir Singh

Process Owner

Project Manager Mr. Gaurav Balhara

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Table of Contents
1. Executive Summary ................................................................................................ 3
1.1. Background ........................................................................................................ 3
1.2. Business Blueprint Overview......................................................................... 3
2. ORGANIZATION STRUCTURE ................................................................................. 9
3. Master Data .............................................................................................................. 9
4. BUSINESS PROCESS................................................................................................ 10
5. MODULE INTEGRATION......................................................................................... 14
6. STANDARD INFORMATION SYSTEM .................................................................... 15
7. DESCRIPTION OF FUNCTIONAL DEFICIT ........................................................... 15
8. DEVELOPMENT CONSIDERATIONS ...................................................................... 16
8.1. Data Conversion Considerations ................................................................. 16
8.2. Interface Considerations .............................................................................. 16
8.3. Reporting Considerations ............................................................................. 16
8.4. Form Considerations ..................................................................................... 16
8.5. Enhancement Considerations...................................................................... 17
9. CHANGE MANAGEMENT ........................................................................................ 17
10. ANNEXURE............................................................................................................ 17
11. CHECKS & VALIDATIONS ................................................................................... 17

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1. Executive Summary

This document is prepared to give a fair idea to core team members, support team
members and process owners of UPMPL about the TO BE processes mapping with
current AS IS processes based on industry and SAP best practices.

1.1. Background

Different services are being procured currently. Services include AMCs of

equipment like DG Set for repair and maintenance, Manpower services,
Environmental Testing & Inspection Services etc. Requirement is generated by
respective department. After requirement analysis, if required request for
quotations are asked from vendors. After quotation comparison, vendor will be
finalized. AMC or other services Work order issued contains information like scope
of work, terms and conditions, rates & taxes and date of completion etc.

Work or services executed by service provider will be verified as per the work
order by concerned department and acceptance will be given on the bills. Services
work order copy and accepted bills are forwarded to accounts at HO (UPMPL) for
bill verification and payments.

1.2. Business Blueprint Overview

This Blueprint document is concerned with the Service procurement flow which
starts with Service Requisition till Work Order.

Even though the different types of services are involved but the process from the
Service requisition to issue of work order remains the same for all categories.

In SAP different document types will be created for different service requisitions
and Work Orders.

Service Requisition should be created by user departments and approved by the

approving authorities as per the approval matrix.

Purchase department will create RFQ and send enquires to the vendors. Maintain
commercial quotations in system. Technical evaluation should be done outside the
system. Commercial comparison will happen in SAP. Once the final vendor is
identified all other quotations will be mark for rejection.

Work Order for different services like AMC for DG Set, Elevator, Chiller or all types
of equipment will be raised to the vendor for the selected quotation. Work order
will be released in system as per the release procedure matrix in KDS.

Validity period i.e. start date and end date can be captured in PO header level
which controls the posting date of service entry sheet by information message.

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After completing release procedure work order will be sent to the vendor.

For explanation purpose, AMC services for DG Set order is considered in this
document.

Manpower Service related procurement procedure

1.2.1 AMC Work Order / Agreement

This process describes how AMC services procurement process will be handled in
the SAP. In SAP, different document types for service procurement can be
configured for Service Requisition and Work Order (Please refer KDS document).

Service Requisition will be created by user departments and approved by the

approving authorities as per the approval matrix.

Proposed scenario

AMC Services will be mapped as service master under a separate category of „AMC
Service‟.

Service masters will be created incorporating the Service AMC details e.g.

Service Number Description

100000 – “AMC Service for DG Set”

Step 1: Creation of PR

AMC Service cost is handled by creating a separate “AMC Service” requisition.

In this case process flow is as under:

All the AMC service requisitions will be approved by single or multiple release
authorities before it comes to purchasing department for further action.

Step 2: Creation of RFQ

RFQs are created for selected vendors. Request for Quotation will be used to
float enquiries in market to obtain quotations from prospective vendors/
service providers.

Step 3: Maintaining Quotations

This step involves maintaining prices, payment terms, taxes and other things in
the system as mentioned in vendor‟s quote.

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Step 4: Price comparison of different quotations

On the basis of quotations submitted by different vendors, Price comparison

can be carried out in the system.

System gives option of comparing Basic Price / Effective price i.e. Price along
with Taxes etc.

After selection of one of the vendors after comparison, rest can be rejected in
the system from the navigating through comparison screen itself.

Step 5: Creating Work Order / Agreement

AMC Service, Work Order shall be created using selected quotation, system
copies all the things mentioned in the quotation which includes price, tax
code, terms and conditions etc.

AMC service Work order can be created through following routes depending
upon urgency / nature of item being procured:

 PRRFQQuotation ComparisonAMC Service Work Order

 PR AMC Service Work Order

 AMC Service Work Order

In Work Order there is a provision to mention Advance Payment and Retention

(Please refer UPMPL_BPD_FI3B - Vendor Payments).

Service Tax/Education CESS will be captured while creating AMC service Work
order by selecting appropriate tax code (which will be expensed or of SET OFF
type)

Terms & conditions which are specific to an order type, will be maintained as
standard text & same can be referred & further modified / edited while
creating transport service order / RFQ/ contract.

Discount on Services which can be added in Item overview level and on Service
line item level. If Discount is added on item overview level then discount
cannot be seen in service entry sheet. However it will be reflected in material
document accounting entries. If discount is added on service line item then it
will be seen in service entry sheet.

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Step 6: Approval of Service Work Order as per release strategy

AMC service Order will be approved by single/multiple authorities as per

Release Strategy (Please refer KDS document).

Service entry sheet can be created against approved Work Orders.

Step 7: Service Entry Sheet

After receipt of AMC Service at desired location, service entry sheet shall be
created by the concerned department to acknowledge the services rendered by
Vendor. If unplanned cost is mentioned in the AMC Work Order, then extra
charges can be included in the service entry sheet. If unplanned cost is not
included in the AMC Work Order then extra charges have to be taken care of
during invoice verification.

Any delay and /or damages happened during AMC Services or any discrepancies
will be informed to accounts (outside SAP through email etc.) and on the basis
of which accounts will create subsequent debit note referencing the AMC
service Work Order.

Step 8: Invoice Verification

Invoice verification will be done after the bills are received from the AMC
Vendor for the services rendered during the period.

Net value of service entry sheet will be defaulted in the screen of MIRO i.e.
invoice verification.

TDS: Withholding tax code(s) will be defaulted from in the vendor master, user
needs to select the applicable withholding tax code for the transaction during
invoice verification.

 Invoice verification will be done by FI and the process document for the
same is UPMPL_BPD_FI3A-Vendor Bill Verification.

NOTE:-

In SAP, same process should be adopted for the procurement of all type of
services i.e. erection & commissioning, repair & maintenance, AMC & any other
miscellaneous services.

If Work Order quantity is more than Service requisition quantity then Work
Order should not be created for exceeding quantity.

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Major Improvements /Benefits

1. No service Work Orders can be created without approved Service

requisitions.

2. Purchase prices for service can be compared with the purchase prices in
other plants

3. Service Work Orders can be tracked at WBS level. Tracking of service Work
Order & its statuses with reference to service numbers, vendors, material
groups and document creation dates.

4. No acceptance of services without approved service Work Order.

1.2.2 Manpower Work Order / Agreement

This process describes the Manpower Works i.e. hiring of labors for any work.
Manpower Agencies is a firm having a labor force of categories such as highly
skilled and unskilled with knowledge/understanding of nature of work. In this
process all the equipments and materials required for the work is provided by
UPMPL on free of cost basis and manpower of the agency has to bring his tools and
tackles.

Process flow:

Service master will be created for every Manpower type of service. If maintained,
model service specification will be used. (Please refer UPMPL_BPD_MM1C -Service
Master)

Service Requisition will be created for total Manpower service required, on the
basis of which Procurement department at HO shall finalize and maintain the rate
for the Service Requisition line item. PR will be released as per release strategy
(Please refer KDS document).

Work orders will be created referencing to the Service Requisition.

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Manpower Requisition Request for Quotation to

created Approval of Manpower Multiple
through PS or manually Service Requisition as per Manpower contractor
created Release Strategy
This will be
Created by HO

Work Order
w.r.t. Price Consumption Quotation Maintenance
Selected Quotaion

Approval of Manpower Work Printing / Transmission of

Order as per Release WO to Vendor Approval of the Rates for
Strategy
Manpower will be
Obtained from Management

Approval for Service

Service Entry Sheet
Entry Sheet
against WO

Invoice Verification

Manpower Work Order Cycle

Applicable service tax code will be attached to every work order line item.

Work Order document type will be created for Manpower services. Reference of
PR may or may not be mandatory depending on the configuration. WO (work
order) will be released as per release strategy (Please refer KDS document)

Service entry sheet will be created for acknowledging the services performed by
Manpower which will be followed by invoice verification after receipt of bill from
contractor.

Withholding tax i.e. TDS will be deducted during invoice verification by selecting
appropriate withholding tax code.

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2. ORGANIZATION STRUCTURE

For details, kindly refer organization structure document

 Company Code
 Purchasing Group
 Purchase Organization
 Plant
 Storage Location

3. Master Data

 Vendor Master.
 Service Master.
 Terms of Payments.
 Condition Records.
 Info Record.

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4. BUSINESS PROCESS

Procurement for Materials

PR Approval as per Dept. where material is

Start
required

Service Req. from

Service Req. from Service Req. from
Project
Plant Individual Dept.
Planning(PS)
maintenance( PM)

Service Req. is
Matrix

approved as per
the Release
Strategy.
Purchase Department (Optional)

Request for
Quotation for
Selected vendors

Maintain Received
Quotations in SAP

Price Comparision
Outside SAP
Quotation
Approval

Vendor
Rejected
Selected ?

Accepted
Department
Purchase

Vendor is
Work Order is informed about
End
created Rejection of
Quotation.
As per matrix
PO Approval

Work Order is
approved as per
the Release
Strategy.
Department
Purchase

Work Order is sent

to vendor.

End

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Responsibility /
Step Activity T. Code Remarks
Authorization
Project Planning,
Plant Maintenance,
Creating Service Individual
1 Department – who ME51N
Requisition
require Service or
who plan Service
requirement
ME54N-
HOD of the Dept. Individual
Service Requisition where Requisition is Release,
2
Approval created As per the ME55-
matrix. Collective
Release.
ME41- Create
Purchase Department Optional for
3 Create Service RFQ ME42- Change
– Buyer AMC Services
ME43- Display
ME47- Maintain
Maintain Service Purchase Department Quotation. Optional for
4
Quotation. – Buyer ME48- Display AMC Services
Quotation
Technical
comparison will
happen out of
the system. In
ME49- SAP only
Quotation approving Commercial
5 Quote Comparison Quotation
authority comparison will
comparison
take place.

Optional for
AMC Services
Sent Information This process
Purchase
6 to the Rejected - will happen out
Department- Buyer
Quotations side of SAP.
ME21N- Create
Purchase
7 Create Work Order ME22N- Change
Department- Buyer
ME23N- Display
Release of Work ME28-
8 As per the matrix
Order Collective
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Release,
ME29N-
Individual
Release.
This process
Send Work Order Purchase Department
9 - will happen out
to Vendor – Buyer
side of SAP.

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Amendment of Work Order

Buyer in Purchase Department Procurement head who is Authorized to Approve WO

Start

Go to Individual Release
Transaction

Un-release WO

Insert Version in WO
And Add reason.

Make changes in WO as
per amendment.
Authorized to Approve WO
Procurement head who is

Release Work Order

Buyer in Purchase

Send Amendment Copy to

Department

Vendor

End

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Responsibility /
Step Activity T. Code Remarks
Authorization
Person who is
Un-release the
1 authorize to Release ME29N
Work Order
and unreleased WO
Person who is
Add version in
2 authorize to Release ME29N
Work Order
and unreleased WO
Amend the Work Buyer – in Purchase
3 ME22N
Order Dept.
ME29N-
Person who is Individual
Release The Work Release
4 authorize to Release
Order
and unreleased WO ME28-
Collective
Send Amended ME23N- Display
Buyer – in Purchase Work Order,
5 Work Order Print
Dept.
to vendor ME9F- Print PO

5. MODULE INTEGRATION

 Project Systems

When Service Requisition is created for Sites it is created with account

assignment P- WBS Element is used as a cost Object.

 Plant Maintenance

When Service Requisition is created for Plant maintenance Account assignment

is entered as A- Asset this will be the equipment for which service is required.

 Finance and Controlling

Service can also be purchased with account assignment category K- Cost Centre
or F – Internal Order.

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6. STANDARD INFORMATION SYSTEM

Standard SAP Transaction codes are available as follows:

 ME5A – List Display of Purchase Requisition.

 ME5K – Purchase Requisition as per Account Assignment.

 ME5J – Purchase Requisition for Projects.

 ME49 – Price Comparison List.

 ME4C – RFQs by Material Group.

 ME4L – RFQs by Vendor.

 ME4N – RFQs by RFQ Number.

 ME4S – RFQs per Collective Number.

 ME2C – Purchase Order by Material Group.

 ME2L- Purchase Order list by Vendor.

 ME2J- Purchase Order List for Project.

 ME2N- Purchase Order by PO Numbers.

 ME2K- Purchase Order list by Account Assignment.

 MSRV2 – Purchase Requisition by Services.

 MSRV3 – Purchase Order List Display by Services.

 ME2S – Planned and Actual Comparison.

7. DESCRIPTION OF FUNCTIONAL DEFICIT

Recommendation to fulfil functional

Ref Description of Functional Deficits
Deficits
NA

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8. DEVELOPMENT CONSIDERATIONS

8.1. Data Conversion Considerations

Description of Objects / Data to be Data Conversion Reference Document

Ref
converted Method Specification Number
1 Open Work Orders BAPI

8.2. Interface Considerations

Reference Document
Ref Description of Interface
Specification Number
NA

8.3. Reporting Considerations

Reference Document
Ref # Description of Report Required
Specification Number
NA

8.4. Form Considerations

Reference Document
Ref # Description of Form Required
Specification Number
1 Work Order Print as per the company code
Work Order Amendment Print as per the company
2
code.

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8.5. Enhancement Considerations

Reference Document
Ref # Description of Enhancement Required
Specification Number
NA

9. CHANGE MANAGEMENT

NA

10. ANNEXURE

AS IS document reference:
UPMPL_MM2D1 - Work Order (Services and AMC)

11. CHECKS & VALIDATIONS

NA

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