PRO-10 Procurement Workflow (Approvals) SC, PO, Contract, RFx, External Entity

26 January 2012
Department of Finance and Administration
Office of the Mississippi Management and Reporting System

AGENDA
1. 2. 3. 4. 5. 6. 7.

Workshop Ground Rules Workshop Guiding Principles Workshop Objectives Workshop Agenda in Detail Workshop Roles Workshop Content Workshop Wrap-up

Workshop Ground Rules

All participants should be familiar with the requirements and the topics to be covered; The workshop scribe is responsible for documenting the parking lot issues and follow up questions; The workshop facilitators are responsible for keeping the discussion centered on the topic being discussed. If an issue is determined that cannot be resolved during the workshop, the facilitator will note the issue for future resolution and enter it into the workshop output document; and Parking of discussion item if the required knowledge is not in the room.

Workshop Guiding Principles

Workshop
Demonstrate how requirements are met using Standard SAP functionality Utilize standard SAP functionality (80/20 rule) Avoid the what wont work mindset

Participant
Be attentive and open minded Explore questions and answers Encourage input from other participants Refrain from absolutes and mandates Focus on current issue being discussed Avoid war stories Manage cell phone, pagers & interruptions Keep the conversations to one at a time

Essential to dos:

Review Business Process Model Update/Create process Flow Diagrams WS Output Documents Identify RICEFW Objects Solution Manager: Create Business Blueprint documents Identify Issues and Risks

Workshop Objectives
Define SRM Process Controlled Workflow (BRFBusiness Rules Framework) Describe features of SRM Process Controlled Workflow Define Shopping Cart (SC) Approvals Changes within the Approval Process Rejection / Change Process Requirements / Flows / Options Define Purchase Order (PO) Approvals Define Contract Approvals Define RFx Approvals Describe Security / Portal Roles related to SRM Process Controlled Workflow (BRF- Business Rules Framework)

Workshop Key Decisions

Determine Shopping Cart Workflow Approval Schema Determine Purchase Order Workflow Approval Schema Determine RFx Workflow Approval Schema Determine Contract Workflow Approval Schema Determine External Entity Workflow Approval Schema

Workshop Agenda
Team Date Logistics 1/26/2012
Definition of SRM Process Controlled Workflow Features of SRM Process Controlled Workflow Shopping Cart (SC) Approvals Changes within the Approval Process

Topics

Rejection / Change Process Requirements / Flows / Options Purchase Order (PO) Approvals Contract Approvals Security / Portal Roles Workshop Minutes

Deliverables

Blueprint Workshop - Roles

SAP Facilitator Customer Facilitator Scribe Jon Sanford Tammy Rankin, Leah Chittom Aaron Stein

A successful workshop is the result of interaction and participation!

Business Area, Fund, Functional Area

Business Area The Business Area will be used for the Agency Number The field is 4 digits and new numbers will be assigned Fund The Fund has the same meaning as the SAAS Fund New fund numbers will be assigned by funding sources The field is 10 digits and the appropriation number will be linked Functional Area The Functional Area may be used for program budgeting The field length is a maximum of 16 digits

11/03/2011

General Ledger Account, Cost Center

General Ledger Account General Ledger (G/L) accounts will include Assets, Liabilities, Fund Balance, Revenue and Expenditure The field is 8 digits and the Major Object Code will be built into the number Cost Center The Cost Center represents a division or area within an agency for recording and reporting budgets, revenues and expenditures
The field is 10 digits and may be set up as Agency/Bureau/Location/Agency Discretion

11/03/2011

Project & WBS Element, Internal Order

Projects
Projects are made up of Work Breakdown Structure (WBS) Elements- 24 digits Funded Program Could be used to control budget at the project or WBS level WBS Elements will be used for: Capital Projects ITS Services MDOT Projects State Aid Road Maintenance

Internal Order
A flexible cost collector that can be defined by the agency to meet a variety of agency needs 10 digits Internal Orders may be used for: Internal Services Events Activities Locations
11/03/2011

Grants

Grants Grant Used to maintain the terms and conditions of the funding and administration of a sponsors award Sponsored Class Used with grants to summarize expenses based on the sponsors cost categories Sponsored Program Used with grants to track expenses based on the sponsors programs.

11/03/2011

Workflow Solution in SRM 7.01

In SAP SRM 7.01 the Approval Process Framework supports the Process-Controlled Workflow. Process-controlled workflow This refers to the SAP SRM approval workflows, based on SAP Business Workflow, introduced in release SAP SRM 6.0. With this framework, the configured process is in control over the process flow, and not the application itself.

SRM 7.0 Approval Framework - Basic Concept

Application-Controlled Workflow
SAP Business Workflow Multiple Workflow templates Start Conditions N-step BADI SC Saved Start Condition PO Saved Start Condition

Process-Controlled Workflow
SAP Business Workflow Unified template Detached from business documents Process Schema Evaluation Process Level Definition Business Rule Framework BADI Responsible Agent

WF
WF WF

Conf Saved Start Condition

BUS* Saved Start Condition

Process Schema Evaluation Process Level Definition

Result Eval ID

WF

WF

Business Rule Framework

Basics of How it works

B U

Consists of Many

Linked to many

S I N

Schema 1 Schema 2 Schema 3

H A S

Process Step 1 Process Step 2 Process Step 3 Process Step 4

BO

E S S R U L E

Sequence No Process Type Agent(s) Business rule Decision Type Task id

SAP Process Controlled Workflow

For each process schema, you define the necessary process levels. For each process level, you specify the following: Level type: approval, approval with completion, or automatic. Note that completion levels always run before approval levels. (Many customers not using completion step. There are restrictions for this step. Responsibility resolver name and responsibility parameter that you have defined as filter values for the BAdi Define Agents. For information on the values you can use, see the BAdi documentation. Evaluation ID: the BRF event to be used to evaluate the process level. Whether or not the process level is performed depends on the result returned by the BRF expression assigned to this BRF event. Task ID: assign a workflow dialog task to each process level. Tasks contain the text for the work item that the responsible agents receive.

SAP Process Controlled Workflow

For each process schema, you define the necessary process levels. For each process level, you specify the following: Decision type: The system can be configured to use one of the following listed decision types. Not all of the decision types are available for each Business Object, which is defined by a configuration (hard coded or customizing table) that is not changeable by the customer. Decision for Entire Document [Type 1] : Decision for entire document: The document is approved by a single agent as a single, indivisible unit of decision. Item-Based Decisions for Entire Document [Type 2]: Item-based decision for entire document: The document is approved by a single agent. The decision is made individually for each item of the document Overall Decision for Partial Document [Type 3]: Overall decision for partial document: The items of the document are grouped into decision sets. Each decision set is approved by a separate agent. The decision applies to the entire decision set. Item-Based Decision for Partial Document [Type 4]: Item-based decision for partial document: The items of the document are grouped into decision sets. Each decision set is approved by a separate agent. The decision is made individually for each item of the decision set.

SAP Process Controlled Workflow

Additional Features for Process-Controlled Workflow

Team Purchasing Item Level Approval for SC, PO, and Contract Possible changing of document by approver during approval (Completion step only) Rule based Reviewer / Manual add of reviewer Add / Delete / Replace Ad-hoc approver Forward Work Items Creation of Substitution rules Complete approval history even for workflow restart Reviewer Action in Approval Process Overview Workflow process restart in case of change document (BADI = /SAPSRM_IF_EX_WF_PROC_RESTART) Save document during approval (without work item execution)

SOMS Requisition Process To Be

SC Approval Workflow restarts if:

A new line item is added Quantity is changed Price is changed Purchasing Organization is changed Plant is changed Account assignment category is changed Cost Center is changed Order is changed WBS is changed

Shopping Cart Approvals

Shopping Cart PO Shopping Cart RFx Shopping Cart Contract? Restart criteria

PO Approvals

PO PO RFx Contract RFx RFx

SOMS Shopping Cart Process To Be

Initial Approval Steps: Agency Level 1 required when the requisition amount is up to $25,000. Agency Level 2 required when the requisition amount exceeds $25,000. Asset Approver required when the requisition contains an asset, account assignment W is selected. Commodity Approver

Automotive required when the requisition contains material groups AUTOEQUIP; HEAVYEQP; or VEHICLES. ITS required when the requisition contains material groups COMPEQUIP; COMPSOFT; TELEQUIP; TELESERV; TELESUP; COMPSERV

The approval process using the Workflow (WF) module can electronically route new SRM shopping carts to various approvers or review authorities, based on the shopping carts product category, agency authoring the shopping cart, cost objects (Accounting Distribution) identified on the line item, and the total value of the individual line item on the shopping cart.

SOMS Requisition Process To Be

Verification of SOMS Shopping Cart / Flow / Options: WF approval triggered at Order Approval at Line Item level SRM places Work Item in UWL (Universal Work List) Email Notifications Approver receives a notification of a work item in their UWL.

Off-Line Approvals?

Shopping Carts Approved or Rejected Note: Specific changes will trigger the WF to restart Approval

Upon 1st approval SC goes to the next approval and next, until final. Approval process must be completed for all items in SC prior to follow-on document. Last step in approval process is Auto Approve Upon approval follow-up document created or SC enters Buyers Work-list. Approval Note available to approver to identify reason for rejection and approval) Rejection notification goes out to the Requestor Resides in the UWL.

Rejection

SOMS Requisition Process To Be

Verification of SOMS Requirements / Flow / Options: Rejection Continued

Requestor logs on to UWL and can review the reason for the rejection. If Requestor accepts the rejection the remaining approved items move on.

Rejected line item deleted. Encumbrance is released

Note: Until this acceptance happens, the other approved line items will not be available for subsequent processing. Note: The requestor can create a new SC for rejected line item then accept the rejected line item on the original SC, to allow it to progress to the next step. If the Requestor changes the SC line item the SC will retrigger WF approval to start at the 1st level.

Note: Changes are allowed in the SC until the point a follow-on document is created. Note: Certain approvers may need to change a shopping cart while in the approval process. WRICEF Requirement: Report to delete SCs awaiting acceptance of rejection.

SOMS Requisition Process To Be

Special Considerations: Sole Source Shopping Carts:

Workflow for Sole Sourced will be the same as the standard workflow. Supplemental doc. Can be added to the SC.

Emergency Shopping Carts:

On-line Approvals not required Potentially add in an Ad-hoc approver. Supplemental doc. Can be added to the SC. If sourced the Shopping Cart would automatically be sourced to a PO. Potential Enhancement:

A custom flag Emergency Only on the SC can drive a change in Workflow.

Ad-hoc Approvers & Reviewers

Is it required for a user to add an Ad-hoc Approver or Reviewer.

SOMS Requisition Process To Be

Special Considerations: Substitution:

An approver can assign another user to be a temporary substitute when the original approver is absent or cannot perform the approval himself. Customization:

Administrator adding a substitute for approval / rejection.

Forwarding Approval Workflow Items:

An approver can also forward a specific workflow item to another user in the system by leveraging the Forwarding functionality.

WRICEF Requirement:

Do we require a validation at time of assignment to a substitute or forward. i.e.: only allow if user has proper role (authority)

RFx Approvals

RFx PO RFx Contract RFx RFx Restart Criteria

Commodity Contract Approvals

Create Contract without reference to RFx Contract PO

Differences for Agency vs. Statewide?

Restart Criteria

RFx Workflow
Ad-hoc approval necessary? What changes will retrigger WF? Approval Steps? Buyer Approval Step - All other approvals will either be obtained offline or built via ad-hoc functionality. Approval Workflow: All other details regarding approval rules, approver change authorization, and who the approvers should be for each agency will be determined and defined in the Realization phase. Approval Notes

Services Contract Approvals

Dollar threshold

PSCRB?

SPAHRS CW Personal Service SPAHRS IC Personal Service District Attorney Contracts for legal services Restart Criteria

External Entity Approvals

Create Contract without reference to RFx Contract PO

Differences for Agency vs. Statewide?

Restart Criteria

Contract Workflow
The two standard delivered Approval Workflows for the Purchase Contracts are: Contract Create Approval Workflow Contract Change Approval Workflow The SRM Contracts Workflow Approvals are the processes by which the system users can review, change, approve, and/or reject contracts. Approvers Can only approve or reject at header level. (No changes during approval) Only buyer can change during approval. Ad-hoc approval necessary? What changes will retrigger WF? Approval Steps? Buyer Approval Step - All other approvals will either be obtained offline or built via ad-hoc functionality. Approval Workflow: All other details regarding approval rules, approver change authorization, and who the approvers should be for each agency will be determined and defined in the Realization phase. Approval Notes After the contract is released for use, the buyer can make changes to the contract in SRM. If changes to the contract are saved in the SRM system, the Change Contract Approval Workflow is triggered. The changes to the document will have to be approved before the updated document is released for processing.

Recall

Document creator is allowed to change document If approval process was not started by accessing via POWL If approval process was already started by accessing via POWL created workitems takes place

a recall of already

Approval Process Overview

Header and item level approval preview/result are available

Add Approver
Approver can be added manually additional approver via Approval Process Overview

Add Reviewer

Reviewer can be added manually via Approval Process Overview or can be added automatically following configured rules receive a workitem and can add approval notes

Alert
Alerts will be created by Business Logic of corresponding Business Object UWL displays Alerts

Inbox Substitute
User can set inbox substitute by wizard style rule setting

Workshop Objectives
Define SRM Process Controlled Workflow (BRF- Business Rules Framework) Describe features of SRM Process Controlled Workflow Define Shopping Cart (SC) Approvals Changes within the Approval Process Rejection / Change Process Requirements / Flows / Options Define Purchase Order (PO) Approvals Define Contract Approvals Describe Security / Portal Roles related to SRM Process Controlled Workflow (BRF- Business Rules Framework)

Workshop Key Decisions

Determine Shopping Cart Workflow Approval Schema Determine Purchase Order Workflow Approval Schema Determine RFx Workflow Approval Schema Determine Contract Workflow Approval Schema Determine External Entity P1 Workflow Approval Schema

Wrap-up
Lets verify that we are on the same page

Clarify any Strange Jargon Validate Parking Lot Items Record Key Decisions

Questions

Plus/Delta
+s What worked well today?

s
What can we improve for future meetings and project activities?

Thank you!

MAGIC Project WORKSHOP MINUTES/OUTPUT DOCUMENT

PROJECT IDENTIFICATION
Project Name CPI/Project Number Project Type
(CBI, Implementation, CSS, Upgrade, Internal, other)

MAGIC
Customer Name Customer Number

Implementation
Planned Start/Finish

State of Mississippi
SAP Customer Partner

600260
Project Sponsor Program Manager

SAP Project Director

Customer Project Director

Partner Project Manager

Bill Bevil

Becky Thompson

GENERAL INFORMATION
Workshop Title Workshop Facilitators Scribe PRO-10 SRM Workflow Jon Sanford / Tammy Rankin Aaron Stein

ATTENDEES
Name (including Role/Organization) Jeanna Stafford (SAP) Jon Sanford (SAP) Aaron Stein (SAP) Wayne Liu (SAP) Jack Ladhur (STA Consulting) Jeffrey Kurowski (SAP) Brenda Benson (DFA/MMRS) Catherine Gillispie Amanda Michael (Military) Lampton Harry (MS Dept. Rehab) Hewitt Pittman (MS Dept. Agri.) Judy Miller (DFA) Jeanette Crawford (ITS) Charlotte Robinson (MDWFP) Retha Gregory (MDOT) Sarah Ridley (MDOT) Terri Ashley (PSCRB) Sandra Edwards (PSCRB) Julie Ethridge (MDOT) Leah Chittom (DFA/MMRS) Shelley Walker (DFA/MMRS) Tammy Rankin (DFA/MMRS) Terrance Jones (DFA/MMRS) Milo Crabtree (DFA/OPTFM) Lance Fulcher (DFA/OPT) Ross Campbell (DFA/OPTFM) Anthony Hardaway (ITS) Lynn Ainsworth (ITS) Marsha Duncan (MDOT) Carlos Galloway (DFA/MMRS) Margaret Jordan (DFA) Diane Langham (DFA)

KEY DECISIONS ANSWERED KD: Military will always need to go through an approval in the SC. KD: Emergency Approvals will be flagged as sole source and start at the PO level instead of SC LEVEL.

REFERENCE DOCUMENTS
FOR DETAILS REFER TO THE FOLLOWING KEY DECISION DOCUMENT

The following picture depicts the General Workflow with a SC that we discussed during todays workshop: