asug session 4709 web based t&m invoice processing using sap mm esm, integrated with plant...

ASUG Session 4709

Web Based T&M invoice processing using SAP MM ESM, integrated with Plant Maintenance

Reliant Resources, Inc.:

- Provides electricity and energy services to Retail and Wholesale customers

- Markets its Retail and Wholesale services under the Reliant Energy brand

- Provides energy products and services to 1.7 million Customers in Texas

- Has 22,000 MW of Power Generation capacity in operation, under construction or under contract in CA, AZ, NV, PA, NY, OH, FL, IL, WV, NJ, MD and MS

- Went live on SAP R/3 version 4.0b in January 1999 with FI, CO, HR, MM, PS, PM, ESS and IS-U/CCS . Upgraded SAP R/3 to version 4.6c in November 2001

- Added more SAP functionality with EBP version 2.0c in June 2002 and BW version 3.0b in April 2003

Web Based T&M invoice processing

Reliant Resources’:


Contractoranagement

nterpriseool

M

ET

Contractor Management Enterprise Tool (CMET) - Was designed to replace two (2) different legacy systems that were used to track the details (man-hours and costs) associated with Contractor Services performed on-site

- Enables the Contractor to electronically create and submit invoices (Service Entry Sheets) for payment via the Internet

- Has four different types of invoice areas (web pages), which are Labor, Equipment & Material, 3rd Party and Miscellaneous

- Utilizes Service Entry Sheets at the Work Order level and when final Approvals occur, “actuals” (including applicable taxes) are posted to the Work Order

- Pays Contractors, based on previously negotiated Payment Terms when the Service Entry Sheets have been approved

- Most of CMET functionality is standard SAP


CMET utilizes the following SAP functionality:


• Service Catalogs• Valuation Class• Service Masters• Classification• ESM Service

Contracts• Service Conditions

• Work Orders• AutoPO for Services• Service Entry Sheets• ERS (Evaluated

Receipt Settlement)• Custom “Z” Tables• Custom Reports

Reliant Resources’ CMET Process Diagram


Create ESMContract, ServiceConditions, etc.

Create SM03Work Order

Select appropriateWork Order

Release WorkOrder

Enter data intoweb-based

Service EntrySheet

Service EntrySheet

Approved?

NO

Perform Work YES

SAP R/3 4.6c

SAP GRgenerates (realtime) based on

Final Entry SheetApproval

SAP generates anIR through nightly

ERS batch job

Supplier Paymentoccurs based onPayment Terms

Purchase Ordercreated via

AutoPO

Access Reliant'sContractor

Website to enterTime, Material

cost, etc.

Submit to ReliantEnergy

Review ServiceEntry Sheets

SAP R/3 4.6cReliant Energy's Contractor Website

Purchasing

WorkManagement

Contractor

SAP R/3System

Automation

Four (4) Roles:


• Purchasing• Work Management• Contractor• SAP R/3 Automation

What do they do?

Role: Purchasing


• Negotiates with the Contractor, e.g Rates, Terms & Conditions, etc.

• Identifies the Services for an ESM Contract

• Updates the Service Catalog with any new Services

• Creates any new Hierarchical Service Masters

• Creates any new Service, Service Masters

• Creates the ESM Contract with– One “service” line item– Outline Folders– Service Masters; and

without– Plant or Pricing

• Creates the Service Conditions for Pricing

• Updates custom “Z” tables– Vendor– Approver– Messages

Role: Work Management


PLANNING• Create Work Orders• Plan Contractor

Resources by Operation– One Contractor per

Operation• Plan with Estimated

Rates– Labor– Material– Equipment– Other

• Plan in detail using specific Services, e.g. Craft Code

EXECUTION• Review and Approve

Service Entry Sheets (SEnt)

• Manage Contractor activity and cost

Role: Contractor

From within the website a Contractor can:


• Create/Edit Employees• Create/Edit Equipment• Submit Invoicing (SEnt)

– Labor– Material & Equipment– 3rd Party– Miscellaneous

• Approve, Review and/or Submit SEnt Sheets– Contractor Release– Rejected; pending re-

Approval

• Update Work Order– % Complete– Completion Date

• Reports– Contractor Daily Time

Sheets– Daily Recap– Weekly Recap– Work Order List– Invoices

• Payment Status, etc.

Role: SAP Functionality & Automation


• Custom “Z” Tables (7)• CMET Contractor SAP

Security Access using “alias” functionality

• Custom Security Roles (7)• Custom JAVA WebPages• Custom Work Order Web

Program• Custom Transactions (6)• Standard ESM and PM

configuration• Custom Reports (currently

12 with 15 more under development)

• Use of Parameter IDs• AutoPO creates Purchase

Orders automatically from “assigned” Requisitions

• Goods Receipt (GR) which post automatically when the SEnt Sheets reach final approval

• Invoice Receipt (IR) posts automatically utilizing ERS (Evaluated Receipt Settlement)

• Payment occurs with an IR once Payment Terms have been met

Four (4) Roles:


•Purchasing• Work Management• Contractor• SAP R/3 Automation

- Service Catalogs

- Service Masters

- Classification

- ESM Contracts

- Service Conditions

How do they do it?

Service Catalogs

- Standard Service Catalogs (SSC) are master data that is stored centrally and helps standardize service descriptions

- Text Module levels T1 through T5, which resemble an “Outline” are used by Reliant as our general standardized collection of text to describe Services

- For CMET we have developed five (5) Service CatalogsEquipmentEstimatesLaborMaterialOther

- Within each Catalog, a Service is assigned a Valuation Class which in turn is tied in configuration to certain G/L accounts



Service Catalog for Labor

Notice how the Service Catalog resembles an “Outline” and uses the text module columns:

- T1 is LBR for the Labor Catalog

- T2 is 03 for the Boilermaker Hierarchy

- T3 is 02 for the Boilermaker Service

- T4 is 02 for the Overtime Boilermaker Service

Service Masters

- Master data used to store frequently procured services centrally as master records so that they can be used on a cross-application basis

- Reliant utilizes two types of Service Masters, Hierarchical to group similar types of services and Service which are the specific services within the group. We also assigned different number ranges for each.

- Hierarchical Service Masters are a high level way to group like Services, e.g. different types of Craft Labor

BoilermakerCarpenterPainter

- Service, Service Masters are the actual Services, e.g. different types of Boilermakers within the Craft

Boilermaker JourneymanBoilermaker ApprenticeBoilermaker Foreman


Service Master for Boilermaker


Notice how the Service, Service Master is associated with the:

-Valuation Class

-Labor Service Catalog; and

- Hierarchical Service Master

Classification - Class Type 038 for Services is used to associate multiple service masters

- Within the Straight Time Service Master numbers for any type of Labor, Classification “links” the associated Overtime and Double Time Service Master numbers

Boilermaker (ST)Boilermaker Overtime (OT)Boilermaker Double Time (DT)

- Classification must be in place so that the Contractors have the ability on the CMET Internet website to enter time (ST, OT and DT) “horizontally” per Contractor employee


Classification for Boilermaker


The Boilermaker Straight Time Service Master is “linked” through Classification with the:

- Boilermaker Overtime Service Master; and

- Boilermaker Double Time Service Master

Service Contracts (ESM)

- An SAP Outline Agreement is created with one line item using Item Category “D” for Service and Account Assignment “U” for Unknown

- The “D” for Service utilizes SAP ESM [External Service Management] functionality - Within the Services area of the Contract line item, Outline folders are set up. This aides Plant Maintenance in the creation of their Work Orders

- Specific Service Masters are added and placed appropriately within the required Outline folder

- Service Contracts are created without Plant and without prices.

- Prices for these Contracts are maintained within Service Conditions



Service Contracts (ESM)

Service Contract (ESM) with:

- Outline Folders; and

- Service Masters added in the appropriate folder

Service Conditions

- Pricing for CMET is maintained within Service Conditions and not within the ESM Contracts

- Service Conditions also contain Validity Start and End Dates and it is recommended that they parallel the ESM Contract Dates - Service Conditions provide greater flexibility for managing pricing

- Four main Service Condition pricing levelsFor Vendor with PlantFor Vendor without PlantFor ServiceOthers

- Pricing history not maintained through “change”, so we use the “add” functionality for updates with a new validity period



Service Conditions

Service Conditions, one at the “Vendor without Plant” level and one at the “Other” level with:

- Rates; and

- Validity Dates

Four (4) Roles:


• Purchasing

•Work Management• Contractor• SAP R/3 Automation

- Create Work Order

- Plan Cost

- Plan Contractor

How do they do it?

PM Work Orders using “SM03” Control Key

- SM03 Control Key is utilized to “trigger” ESM from within the Plant Maintenance Work Order Operation area for External Services

- ESM Contracts are “assigned” within the PM Work Order which will in turn generate an “assigned” Requisition for AutoPO

- Services are selected from ESM Contract and “adopted” into the Work Order Operation

- Services, with Pricing from the Service Conditions are now within the Work Order Operation - Quantities are updated so that Estimates can be calculated for Planning purposes

- Limits are set within the Work Order Operation



PM Work Orders using “SM03” Control Key

PM Work Order using SM03 with:

- ESM Contract “assigned” within the Operation; and

- Service Master with Estimated MHs, Pricing, etc.

Four (4) Roles:


• Purchasing• Work Management• Contractor

•SAP R/3 Automation- AutoPO (evening)

- Web Prg (hourly)

How is it done?

Four (4) Roles:


• Purchasing• Work Management

•Contractor• SAP R/3 Automation

- Administrative

- Invoicing (SEnt Sheet Entry)

- Review, Approve, Submit SEnt Sheets

- Work Management

How do they do it?

CMET Contractor Website - Administration

- Contractor can set up their employees by craft (Service) and designate the Plant location where the employee works

- Contractor employees can be assigned multiple crafts (Services), if applicable, with one set as “default” - Contractors can work at one or many Plants

- Contractor crews can be designated to “group” multiple employees together - Contractors must designate which Shift their employee works, e.g. Day Shift, Night Shift or Graveyard Shift, etc.

- Contractors may also track their Equipment ID, e.g. how many hours they charge per Equipment ID



CMET Contractor Website - AdministrationWithin the Admin. area of the Contractor Website, a Contractor can set up:

- Employees by Craft and Plant

- Select a Default Service

- Designate a Crew

- Designate a Shift

- Add Equipment ID numbers if they desire

CMET Contractor Website - Invoicing

- Work Orders are separated by either Non-Outage or Outage identifiers

- Within the Non-Outage or Outage tab areas, Work Orders are then separated by Plant - Contractors are able to select the Work Order and the Work Order Operation “assigned” to them due to planning done within the Work Order

- Contractors separate their invoicing into four categories which are Labor, Material & Equipment, 3rd Party and Miscellaneous - Contractors enter their quantities for the work performed and the dollars are calculated from the Service Conditions

- Contractors have edit capabilities and the ability to approve their entries prior to submitting their requests to Reliant



CMET Contractor Website - InvoicingWithin the four Invoicing areas of the Contractor Website, a Contractor selects by:

- Non-Outage or Outage

- Selects the appropriate Plant

- Selects the Work Order

- Selects the Work Order Operation


CMET Contractor Website - Invoicing

Within the Labor Invoicing area, a Contractor enters:

- Date worked, Invoice info, Text, Shift & Approver

- Employee and their hours worked

CMET Contractor Website – Approvals/Rejections

- As Service Entry Sheets (SEnt) are created by the Contractors, they can go through Approvals prior to submitting them to Reliant

- Once a Service Entry Sheets (SEnt) is submitted to Reliant, it can be Rejected if a Reliant Approver needs something to be corrected. Rejection text can also be added as to why something is being rejected - Service Entry Sheets (SEnt) that require Contractor Approval or have been Rejected by Reliant are separated and retrievable in a special Approval Status box on the Lobby Page

- The numbers within the Approval Status box are a “hot link” to take the Contractor to those specific Service Entry Sheets



CMET Contractor Website – Approvals/RejectionsWithin the Approval or Rejection area of the Contractor Website, a Contractor can:

- Select Work Orders to Approve and submit to Reliant for payment

- Select Work Orders that have been Rejected and need corrections before approval for payment

- Rejected SEnt are marked as such

CMET Contractor Website – Work Management

- From within the CMET Contractor Website, a Contractor can update the SAP Work Order with respect to their progress of Work

- Percent Complete is entered and updates Reliant’s Work Order upon saving so the responsible Reliant Representative knows what status or progress is being made with respect to the Work being performed under the Scope of the Work Order. The frequency for updating the Completion % area of the Work Order is determined by the Reliant Representative.

- Work Completion Date is entered and updates Reliant’s Work Order upon saving so the responsible Reliant Representative knows that the Contractor is 100% complete with respect to the Work being performed under the Scope of the Work Order. The frequency for updating the Completion Date area of the Work Order is determined by the Reliant Representative.



CMET Contractor Website – Work Management

The CMET Contractor has the ability from within the Website to update Reliant’s SAP Work Order by:

- Percent Complete (%); and or

- Work Completion Date

Four (4) Roles:


• Purchasing

•Work Management• Contractor• SAP R/3 Automation

- Review SEnt Sheets:

- for Approval

- for Rejection

- for Correction

How do they do it?

Work Management - Approvals

- Reliant has the ability via Release Strategies to do Approvals on SEnt Sheets

- Currently there are two (2) strategies available by Plant. We have a 2 level strategy or a 4 level strategy

- From within Reliant’s CMET Approval Screen, a Reliant Representative can review all the data contained within a SEnt Sheet by “drilling” into the entry sheet

- From within Reliant’s CMET Approval Screen, a Reliant Representative can Reject a SEnt Sheet with Rejection text and it will return to the Contractor’s website for correction or deletion. Any SEnt Sheet previously rejected comes back to Reliant marked with a red “P” for pending new approval

- From within Reliant’s CMET Approval Screen, a Reliant Representative can Approve a SEnt Sheet by Releasing it and if it is the “final” Approval then a GR posts and it is set up to pay



Work Management - ApprovalsA Reliant Representative reviews queue for SEnt Sheets submitted and can:

- Review the detail within by double clicking on the SEnt Sheet number

- Approve the SEnt Sheet by selecting Release

- Reject the SEnt Sheet by adding text & selecting Reject

Four (4) Roles:


• Purchasing• Work Management• Contractor

•SAP R/3 Automation- GR posts if SEnt “final” approval

- IR posts via ERS if GR present

- Contractor paid within Pay Terms

How is it done?

Reliant Resources’ CMET Process Diagram


Create ESMContract, ServiceConditions, etc.

Create SM03Work Order

Select appropriateWork Order

Release WorkOrder

Enter data intoweb-based

Service EntrySheet

Service EntrySheet

Approved?

NO

Perform Work YES

SAP R/3 4.6c

SAP GRgenerates (realtime) based on

Final Entry SheetApproval

SAP generates anIR through nightly

ERS batch job

Supplier Paymentoccurs based onPayment Terms

Purchase Ordercreated via

AutoPO

Access Reliant'sContractor

Website to enterTime, Material

cost, etc.

Submit to ReliantEnergy

Review ServiceEntry Sheets

SAP R/3 4.6cReliant Energy's Contractor Website

Purchasing

WorkManagement

Contractor

SAP R/3System

Automation

CMET Reports:


•Reliant’s• Contractor’s


Reliant CMET Reports

CMET Reports:


• Reliant’s

•Contractor’s


CMET Contractor Website – Reports

CMET Statistics as of April 22, 2003


• 13 Contractor Cos. have been set up and are using CMET

• 265+ Purchase Orders created through AutoPO

• 5,000+ Service Entry Sheets generated through the CMET Website

• Nearly $50 million in Contract values

• Approximately $6 million in Commitment values

• Approximately $6 million in Contractor Payments

Future Plans:


• Adding More Contractors• Planning for more large Projects• Adding more Reporting


Questions

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Session Code: 4709

asug session 4709 web based t&m invoice processing using sap mm esm, integrated with plant...

Documents

tm invoice processingweb

contractor services

invoices service entry

energy services

wholesale services

sap r3 version

operationone contractor

specific services