Sunday, August 13, 2017

WHITEPAPER: Understanding the 10 EDI messages critical to deploying "Best in Class" Procure to Pay (PTP) SAP EDI

I have seen many, many EDI implementations in this space over the years and have yet to come by a single company that has adopted all of the good features available in SAP to bring real value in to the PTP process. In each part of the process, described below, I will highlight exactly what the purpose is for each EDI message or functionality and highlight the benefits for implementing it in the mentioned fashion.

Below, I list the PTP process for a typical replenishment PO where we procure stock via a Purchase Order (PO) to a supplier who delivers the product to our warehouse using one of our 3rd party carriers. The nuances around freight forwarding, drop ship and make to order scenarios are not covered here but are addressed using 90% of these same techniques as well.

Order Process - The Purchase Order

  1. ORDERS IDoc -> 850 (The Purchase Order)
    • 997 -> STATUS IDoc (Outbound PO EDI Status / Error)
  2. 855 -> ORDRSP IDoc -> POSTS: Order Confirmation with changed PO (if applicable and within tolerance)
    • TXTRAW IDoc -> 824 / 864 (Order Confirmation Error)
      • 997 -> STATUS IDoc (Outbound Message Status / Error)

Order Change Process - Changing the PO

  1. ORDCHG IDoc -> 860 (The PO Change)
    • 997 -> STATUS (Outbound PO Change EDI Status / Error)
  2. 865 -> ORDRSP IDoc -> POSTS: Order Confirmation with changed PO (if applicable and within tolerance) 
    • TXTRAW IDoc -> 824 / 864 (Order Change Confirmation Error)
      • 997 -> STATUS IDoc (Outbound Message Status / Error)

Shipment Process - Supplier ships the goods

  1. 856 -> DESADV IDoc -> POSTS: Inbound Delivery - Referenced in Goods Receipt at Warehouse
    • TXTRAW IDoc -> 824 / 864 (Inbound Delivery / ASN Error)
      • 997 -> STATUS IDoc (Outbound Message Status / Error)
  2. Carrier 214 ->. EVMSTA IDoc (Goes to SAP Event Management)

Invoice / Billing Process - Time to receive and pay the bill 

  1. 810 -> INVOIC IDoc -> POSTS: Invoice Receipt to be paid by Accounts Payable (AP)
    • TXTRAW IDoc -> 824 / 864 (Invoice Receipt Error)
      • 997 -> STATUS IDoc (Outbound Message Status / Error)
All of these messages are necessary for a perfect PO process...

No comments:

Post a Comment