Solution Design Document

Contract Processing

Document Control:

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 Solution Design Document

Title Contract Processing

Process Name Contract Processing
Sub Process Name  Work Order Issue
 Work order approval
 Goods Receipt / Service Receipt
 Invoice Verification

Version:

Version Date Created by Notes

V0 04.02.2020 ABM Knowledgeware in
consortium with itelligence India
Software Solutions Pvt Ltd

Table of Contents

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1. Business Process Description and Objectives............................................................................5

2. Current Scenario As Is Process (BPD).......................................................................................5
3. Process Flow Chart.................................................................................................................... 6
4. SAP Process Steps.................................................................................................................... 7
5. Gap Analysis.............................................................................................................................. 8
6. Master Data Details.................................................................................................................... 9
7. Key Data Structure (KDS)..........................................................................................................9
8. Data Migration requirements....................................................................................................10
9. Development Objects (RICEFW)..............................................................................................11
10. Roles and Authorizations..........................................................................................................12
11. Reports..................................................................................................................................... 12
12. Assumptions............................................................................................................................. 16

Process ID MM02_Contract Processing

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Process Description Contract Processing

Abbreviations:

Initials Description
PO Purchase Order – Work Order

PR Purchase Requisition – Indent

SES Service entry sheet – Work activity completion confirmation

GRN Goods Receipt note

MSS Model service specification (BOQ)

1. Business Process Description and Objectives

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This document describes the proposed (TO-BE) Contract Processing of MSRDC. The process
flow described in this document is based on ‘AS-IS’ document. The detailed workflow of the TO-
BE process is mentioned in ‘Process Flow’ Section of this document.

The content of this document forms the basis for system configuration and testing phase.

After a detailed department wise process evaluation viz Finance, Engineering & Legal, it is
observed that VBSL will have the procurement for various activities including Construction
Service, Consultant’s Service, Legal Service, Consumables and Asset materials for the respective
MSRDC-VBSL departments.

The Contract processing will be mapped in SAP to facilitate the procurement activity of VBSL to
record and process the following important steps.
 Work order issue, approval and issue to Selected Contractor
 Acceptance of Services, Materials or Assets
 Contractor’s Invoice verification with reference to Issued Work order.

2. Current Scenario As Is Process (BPD)

Refer BPD Document Number :

MM-03_BPD_VBSL_LOA-Work order-Contract Agreement_V0

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3. Process Flow Chart

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4. SAP Process Steps

Step As is Process Step To Be Process Step To Be Transactio

1 LOA, BG acceptance &
Contract Agreement
2 Create Work Order
System n Code
On Finalization of EPC or OpenText
Contractor, all relevant Documents
(like LOA, BG & Contract
Agreement) will be uploaded in
SAP system.
For Project construction, after SAP ME21N,
Creation of Project Structure in
Workflow
SAP system, OSO team will create
the required Work Order, as per
Schedule-H and workflow will be
triggered through SAP for Work
order Approval.

Other supporting documents

scanned copies will be uploaded in OpenText
DMS system.
3 Activity completion On approval of IPC letter in RA bill SAP ML81N
confirmation where processing from Authority
services are involved. Engineer, Service entry sheet
(SES) will be posted in SAP for
Service acceptance.
4 Receipt of consumable or If the given Purchase order is for SAP MIGO
Asset materials any Material then Goods receipt
note (GRN) will be performed in
SAP
5 Invoice verification and On getting approval of RA bill from SAP MIRO
approval. CAFO, the Invoice will be parked in
SAP.
VBSL Finance Team will Post the
same Invoice in SAP system for
Payment processing.
6 Payment to the Contractor Payment to the Contractor SAP F-53, F-57

Note : For VBSL Construction project the above step nos - 1 & 2 has already been executed by
MSRDC manually. Hence already prepared documents for these process will be uploaded in
OpenText for future referance.

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 There are two other procurement types are listed here, like Consumables and Assets. In this
procurement cycle only MSRDC’s user and OSO team user will make the required enteries.
Consumable Procurement :

Step To Be Process Step To Be System Transaction Code

1 Create Purchase Requisition (PR) SAP ME51N
for Consumable Material
2 Approval of PR SAP ME54N
3 Create Purchase Order/ Work Order (PO) SAP ME21N
4 Approval of Purchase Order SAP ME29N
5 Goods Receipts SAP MIGO
6 Invoice Verification SAP MIRO
7 Vendor Payment SAP F-53/F-57

Asset Procurement : Asset Creation and Depriciation rule will be created before Procurement
cycle.

Step To Be Process Step To Be System Transaction Code

1 Create Purchase Requisition (PR) for SAP ME51N
Asset specified
2 Approval of PR SAP ME54N
3 Create Purchase Order for Asset (PO) SAP ME21N
4 Approval of Purchase Order SAP ME29N
5 Goods Receipts (Asset) SAP MIGO
6 Invoice Verification SAP MIRO
7 Vendor Payment SAP F-53/F-57

5. Gap Analysis

No Gaps identified.

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6. Master Data Details

Sr. Description Codification Codification Pattern Remark

No. Required
1 Service master Yes
2 Model service Yes
specification (BOQ)
3 Material Master Yes
4 Contractor Master Yes

7. Key Data Structure (KDS)

The design of this process is based on the following Critical configuration and master data
structure.

Purchase requisition document types

Number
Sr Data type & PR doc. From To Number
Description Internal (I)/
No Length Type number
External(E)
1 Character - 4 ZPRJ Project 3000000000 3099999999 I
Requisition
2 Character - 4 ZONM Operation and 3100000000 3199999999 I
maintenance
3 Character - 4 ZLEG Legal 3200000000 3299999999 I
Services
4 Character - 4 ZOFC Admin & office 3300000000 3399999999 I
supply
5 Character - 4 NB System 3400000000 3499999999 I
Generated-
PM

Purchase Order document types

Number
Sr. Data type & PO doc. From
Description To Number Internal (I)/
No. Length Type number
External(E)
1 Character – 4 ZPRJ Project Order 4000000000 4099999999 I
2 Character – 4 ZONM Operation and 4100000000 4199999999 I
maintenance
order

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3 Character – 4 ZLEG Legal Order 4200000000 4299999999 I

4 Character – 4 ZOFC Admin & office 4300000000 4399999999 I
Order

Contract Document types (Contract)

Sr. Data type & Contract Description From To Number Number

No Length doc. Type number Max 10 Internal (I)/
Max 10 digits External(E)
digits
1 Character – 2 MK Quantity 5000000000 5099999999 I
contract
2 Character – 2 WK Value 5100000000 5199999999 I
contract

8. Data Migration requirements

Open orders and open Rate contracts will be migrated.
Open Orders = Orders against which the Contractor / Supplier has yet to deliver or has been half
delivered.
Open Rate Contracts = Rate Contracts whose validity still exists.

9. Development Objects (RICEFW)

Sr. Object Object Type Description F/R/I/C/E/W FS Ref.*

No. No. **
1 MM_F_5 Output PO Print out F
2 MM_W_2 Workflow Workflow for approving requisition W
3 MM_W_4 Workflow Workflow for approving Purchasing W
documents

Functional Specification Reference

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** F – Forms, R – Reports, I – Interfaces, C – Conversion, E – Enhancements, W – Workflow

10. Roles and Authorizations

Sr. Role Activity Description SAP Transaction Create/Change/

No Code Display
1 Z_PR_CREATION Creation of Purchase ME51N, ME52N, All
requisition. ME53N
2 Z_PR_APPROVAL Approval of Purchase ME54N All
Requisition.
3 Z_CONTRACT-PO- Creation of Contracts and ME31, ME32, ME33 All
CREATION Purchase Orders ME21N, ME22N,
ME23N
4 Z_CONTRACT-PO- Approval of Contracts and ME34, ME29N, All
APPROVAL Purchase Orders. ME28
5 Z_GRN_SRN Goods Receipt and Service MIGO, ML81N All
Receipt
6 Z_INVOICE_VERIF Invoice verification MIRO All
ICATION

11. Reports

Sr. Report Description Format Standard SAP Transaction Code

No. Available Report
Available
1. Purchase Requisition list Yes ME5A
2. Contractor Master List Yes MKVZ
3. Purchase Order list Yes ME2N
4. Service Activity wise report Yes MSRV6

Report Formats

1) Purchase Requisition List – ME5A

Column Field Description

Purchase Requisition Requisition Number

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Item of requisition Item number in Requisition

Document Type Code denoting requesting department
Material Material code in case of material being requested
Short Text Short description of material / service been ordered for
Quantity requested Quantity being requested
Unit of Measure Unit of measurement for material / Service being requested
Delivery Date Desired date when the material /service is to be delivered
Quantity ordered Quantity being requested
Valuation Price Estimated cost for procurement
Release Date Date on which requisition was approved
Material Group Grouping of Service / Material
Requisitioner Field for updating the requesting personnel
Field for updating the desired vendor to source the material / service to be
Desired Vendor
provided
Field for updating the fixed vendor to source the material / service to be
Fixed vendor
provided
Outline agreement Rate Contract reference if any
Price agreement item Rate Contract item reference if any
Purchase order Work order created with reference to the requisition item
Purchase order item Work order item created with reference to the requisition item
Purchase Order Date Date on which work order was created.

2) Contractor Master List – MKVZ

Column Field Description

Vendor Contractor / Supplier – Code
Supplier Name Contractor / Supplier – Name
Street Address of Contractor / Supplier
Country Country
Postal Code Postal Code
City City
Account group Grouping of Contractor / supplier
Search term Search term
Payment terms Payment terms
Incoterms Terms of delivery

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Incoterms (Part 2) Place of delivery

Order currency Currency for Ordering
Salesperson Salesperson of Contractor / Supplier
Telephone Telephone of salesperson of Contractor / Supplier

3) Purchase Order List – ME2N

Column Field Description

Purchasing Document Work Order Number
Item Work Order Item Number
Purchasing Doc. Type Code denoting type of order
Supplier/Supplying Plant Contractor Code and Number
Purchasing Group Buyer Group
Document Date Date of work Order
Material Material code in case of material being procured
Short Text Short description of material / service been ordered for
Material Group Grouping of Service / Material
Order Quantity Quantity being ordered
Order Unit Unit of measurement for material / Service being ordered
Net Price Unit Price
Currency Currency
Net Order Value Total work order value
Outline agreement Referenced Rate Contract
Price agreement item Referenced Rate Contract Item
Still to be delivered (qty) Pending quantity to be delivered in quantity
Still to be delivered (value) Pending value to be delivered
Still to be invoiced (qty) Pending quantity to be invoiced in quantity
Still to be invoiced (val.) Pending value to be invoiced for quantity delivered
Release indicator Approval status code
Tax Code GST tax code
4) Service Activity wise report – MSRV6

Column Field Description

Service Number Service Number
Service Text Service Description
Service Group Service Group Name
Purchasing Group Buyer Group
Document Number Service Entry Sheet Number
Document Date SES Creation Date
Net Price Unit Price
Currency Currency
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Net Value Total value
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12. Assumptions

Following are the assumptions on which this document has been prepared

 Any requirement for Service or material will be initiated through requisition by the respective
department and will have to be approved by respective department head.

 An estimated cost will be maintained in the Requisition.

If the estimated value meets or exceeds the Threshold value, Tendering process for selection
of contractor /supplier will be done else direct procurement from approved contractor/
supplier will be done.
 On approval of Requisition and finalization of Contractor / Supplier, work order will be created
centrally by “General Administration” Department issued for delivery of Services / Materials
post approval by authorized heads as per hierarchy.

 Services / Materials will be received and entered into system by the department who has
requested for the Services / Materials.

 Invoice will be verified and entered into system by Finance Department.

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