In this session we will discuss how procurement organizations pursuing innovation and operational excellence are using Ariba Network to manage complex services and are drastically improving compliance, reducing execution management, and collaborating with their suppliers to climb the maturity curve.

1. PUBLIC
Complex Services Made Simple
with Ariba Network
Alex Lente
Vice President, Product Management, SAP Ariba P&I

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3. Overview of Complex Services

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Ever hear this?
Buyer Field service engineer
A/RField service contractorOffice manager
“I clearly indicated what I wanted the
contractor to provide…”
“I can’t match this deliverable against
the agreement. What now?”
“We should be able to provide project completion
in 18 months without an issue.”
“This weather is out of control, we will
never finish this project without added
water abatement materials.”
“If the buyer approved this, why are
we waiting on the field rep to confirm.”

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 Parties involved in delivery rarely know
specifics of contractual arrangement
 Resources in the field know what is
actually being delivered/performed
 Tracking of delivery and product
consumption challenging
 Services projects are typically unique in
scope and duration
 Work environment not always conducive
to electronic tracking/engagement
Services management challenges

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Complex Services suited process types and spend categories
Estimate
based
Logistics
Variable
Contracted
services
Construction, maintenance, advertising, field services, equipment
repair services
Logistics – freight, international shipping
Telecoms, utility
Facilities, landscaping, emergency maintenance, cleaning services, IT
Process Type Spend categories
Recurring,
Scheduled
Lease, rent
Investment CAPEX, OPEX

7. Use Case Scenarios Complex Services

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Complex services/service invoicing business processes in Ariba
Process Complexity How it works Benefit Considerations
Service sheet with
evaluated receipt
settlement (ERS) in
ERP
High Buyers indicate on PO that invoicing is not allowed by the
supplier.
Transaction flag specifies whether the Ariba Network
allows suppliers to create PO-flip invoices. Indicates that
all line items expect evaluated receipt settlement (ERS)
self-billing invoices, not supplier-submitted invoices.
Supplier needs to create only a service sheet listing what
happened in field.
Simplest process from supplier perspective.
Field information can come directly from the field without
complexities of tax or finance.
Buyer is responsible for invoice generation and any tax
implications.
Ability of ERP to calculate tax appropriately.
Ability to put contracts in place with shared understand of
pricing and underlying rate card.
Ability to meet country-specific self-billing requirements with
ERP.
Supports planned and unplanned spend.
Service sheet with
service sheet flip
Medium Supplier creates service sheet.
Supplier flips service sheet data into invoice after service
sheet approved.
Clear separation between business responsibilities
(agreeing on what work was done in the field) and finance
responsibilities (booking liability and paying on time).
Alternative when ERS or self-billing processes are affected by
country-specific regulations that prohibit adoption.
Supports planned and unplanned spend.
Auto-generation of
service sheet
Medium Supplier creates invoice and Ariba Network automatically
creates service sheet on supplier’s behalf.
Invoice released to buyer after service sheet approved.
Minimal work by supplier: the supplier’s billing process pulls
together service sheet details.
Supplier's choice depending on business rules combination. If
the manual generation is turned off then auto-generation is
the only way to create service entry sheet (SES).
Supports planned and unplanned spend.
Multi-level PO flip Medium Supplier creates invoice.
Buyer auto-generates service sheet in ERP or
middleware, or creates service sheet through another
process.
Aligns to buyer process for which an investment has
already been made to generate service sheets using
invoice data.
Buyer’s ability to match invoice and service sheet data in
ERP process must be evaluated.
Liability is recognized before there’s agreement on what was
delivered.
Supports planned and unplanned spend.
BPO-related contract
invoice
Medium Buyer issues blanket purchase order from ERP or from
SAP Ariba Buying.
Supplier creates invoice and can select items from
contract or catalog.
Simple process available to SAP Ariba Buying only
customers to address unplanned spend.
Liability is recognized before there’s agreement on what was
delivered.
Doesn’t support planned spend where PO includes items
known in ERP.
Multilevel PO flip is stronger alternative with more
functionality; however, PO must be issued from ERP.
Contract invoice Medium Supplier creates invoice and can select items from
contracts or catalogs.
Simple process supporting maintenance activities where
supplier self-dispatches.
Doesn’t support planned spend, because there’s no PO.
Non-PO invoice Low Supplier creates invoice from blank form Simple process Spend not managed
No price compliance
No contract compliance
Ariba Network Community posting by Chris Chase

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Services Collaboration Flow (Leading Practice)
Create Contract Create PO
Order
Confirmation
Create Field
Ticket,
Timesheet
Create SES
Reconcile
SES
Approve SES
Create
Invoice
Reconcile
Invoice
Approve
Invoice
Required for Contract
Compliance
From Outline Agreement with
Services Hierarchy and
reference to Service Master
Planned Service Items
Unplanned Service Items
Overall limit only
Overall limit and limit on services covered by contract item(s)
Overall limit, limit on services covered by contract item(s), and other limit
Overall limit and other limit
Overall limit on services from model specifications or standard service catalog
Expected value
With limits
Against Contract
Unlimited
Service PO (“D”) (*)
Limit (Blanket) PO (“B”)
Mixed PO
Custom:
CAPEX, OPEX, MRO, IT, Lease, Rent…
(*) with Service Hierarchy
Reference Contract or Contract (plus Contract Line)
Single price by contract term
Term base pricing
Historical pricing
Buyer
Supplier
Buyer Field service engineer A/RField service contractorOffice manager

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Services Collaboration Alternative Flows
Create Contract Create PO
Order
Confirmation
Create Field
Ticket,
Timesheet
Create SES
Reconcile
SES
Approve SES
Create
Invoice
Reconcile
Invoice
Approve
Invoice
Alternative flows currently supported
Roadmap
Create Contract Create PO
Order
Confirmation
Create Field
Ticket,
Timesheet
Create SES
Reconcile
SES
Approve SES
Auto-flip into
Invoice
Reconcile
Invoice
Approve
Invoice
Create Contract Create PO
Order
Confirmation
Create
Invoice
Auto-flip into
SES
Reconcile
SES
Approve SES
Auto-
Approve
Invoice
Reconcile
Invoice
Approve
Invoice
Create Contract Create PO
Order
Confirmation
Create Field
Ticket,
Timesheet
Create SES
Reconcile
SES
Approve SES
Create ERS
Invoice
Reconcile
Invoice
Approve
Invoice
Services Collaboration Leading Practice – Ariba Network with ERP or Ariba Buying and Contract Invoicing
Create Contract Create PO
Order
Confirmation
Create Field
Ticket,
Timesheet
SES “on
behalf”
Reconcile
SES
Approve SES
Create
Invoice
Reconcile
Invoice
Approve
Invoice
Buyer
Supplier
Create Contract Create PO
Order
Confirmation
Create Field
Ticket
Create SES
Reconcile
SES
Approve SES
Create
Invoice
Reconcile
Invoice
Approve
Invoice

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Complex services (SES) integrated workflow (no contract compliance)
Complex services process flow – Ariba Network, ERP
AribaNetworkAribaNetworkSAPAribaBuyingERP
Buyer creates
service
PO
Supplier
receives
service
PO
Supplier flips
PO into OC
Buyer receives
OC
Buyer receives
SES
Supplier
receives SES
response
Buyer
reconciles and
sends SES
response
Supplier flips
approved SES
into invoice
Buyer receives
invoice
Supplier
receives
invoice
response
Buyer
reconciles and
sends invoice
response
Supplier enters
ad hoc items
into SES
Fieldservices

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Complex services (SES) integrated workflow (with contract compliance)
Complex services process flow – Ariba Network, ERP, SAP Ariba Contract Invoicing
AribaNetworkAribaNetworkSAPAribaBuyingERP
Buyer creates
service
PO
Supplier
receives
service
PO
Supplier flips
PO into OC
Buyer receives
OC
Buyer receives
SES
Supplier
receives SES
response
Buyer
reconciles -
sends SES
response
Supplier flips
approved SES
into invoice
Buyer receives
invoice
Supplier
receives
invoice
response
Buyer
reconciles -
sends invoice
response
Buyer creates
contract
Supplier flips
PO/OC and/or
adds items from
contract into
SES
Fieldservices

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Complex services (SES) integrated workflow (with contract compliance)
Complex services process flow – Ariba Network, ERP, SAP Ariba Contract Invoicing, SAP Ariba Invoice Management
AribaNetworkAribaNetworkSAPAribaBuyingERP
Buyer creates
service
PO
Supplier
receives
service
PO
Supplier flips
PO into OC
Buyer receives
OC
Supplier flips
PO/OC and/or
adds items from
contract into
SES
Buyer receives
SES
Supplier
receives SES
response
Buyer
reconciles -
sends SES
response
Supplier flips
approved SES
into invoice
Buyer receives
invoice
Supplier
receives
invoice
response
Buyer
reconciles -
sends invoice
response
Buyer creates
contract
ERP receives
reconciled
invoice
ERP receives
reconciled
SES
Fieldservices

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Complex services (SES) integrated workflow (SAP Ariba solutions only)
Complex services process flow – Ariba Network, SAP Ariba Buying, SAP Ariba Contract Invoicing, SAP Ariba Invoice Management
AribaNetworkAribaNetworkSAPAribaBuyingERP
Buyer creates
service
PO
Supplier
receives
service
PO
Supplier flips
PO into OC
Buyer receives
OC
Supplier flips
PO/OC and/or
adds items from
contract into
SES
Buyer receives
SES
Supplier
receives SES
response
Buyer
reconciles -
sends SES
response
Supplier Flips
approved SES
into Invoice
Buyer receives
invoice
Supplier
receives
invoice
response
Buyer
reconciles -
sends invoice
response
Buyer creates
contract
Fieldservices

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Ariba Network business rules behavior
Use case Allow suppliers to create
invoices from service POs
without a service sheet
Allow suppliers to auto-
generate service sheets
Do not allow manually
creation of service entry
sheet for purchase orders
Functional behavior
Manual SES Disabled Disabled Disabled SES is required and shall not be auto-generated. Hence, it
should be manually generated.
Manual or auto-
generation allowed
Disabled Enabled Disabled 1. SES is required and is auto-generated in case SES does not
already exist
2. Manual SES creation is also allowed
Auto-generation
only
Disabled Enabled Enabled 1. SES is auto-generated
2. Manual SES creation is not allowed
Invoice without
SES
Enabled Greyed out N/A 1. No SES required. Direct invoicing allowed
2. Auto-generation of SES or manual SES not allowed (SES
button disabled and inbound SES via cXML and CSV fail)
PO SES INV
PO INV
SES
auto-gen
PO SES INV
PO INV
SES
auto-gen
PO INV

16. Services Collaboration Road Map

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Recent innovations Planned innovations (*)
* This is the current state of planning and may be changed by SAP at any time without notice.
SAP Ariba Services Collaboration
Innovation Roadmap
Services Collaboration
 Ability to maintain original date of the draft invoice when final
invoice is submitted
 Allow buyers to create/submit and approve SES document in SAP
Ariba Buying on behalf of suppliers. Buyer users can add contract
lines, ad hoc lines for unplanned services
 Support modification of zero price items pulled from SAP Ariba
Contract Invoicing into SES (variable price items)
 Support of historical pricing for SAP Ariba Contract Invoicing items
Services Collaboration
• Price/rate validation for integrated supplier SES generation
• Service Claim (SES) integration with Field Ticket System
• Non-PO Service Claims
• Accounting assignment during SES creation for non-contract
items
• Validations for term price, location, quantity
• Mobile app for field service to create SES and add
pictures/attachments, and SES approval/rejection
by buyers

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19. Thank you.
Contact information:
Alex Lente
VP, Product Management, SAP Ariba P&I
E-mail: alexandre.lente@sap.com

20. Services Collaboration Contract Invoice
Demonstration

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Buyer creates PO with reference to a contract
Drag contract to shopping
cart to populate the new PO
Services to be provided by
supplier are NOT specified

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Enter limit values then
save to create the
new PO
Buyer adds limits values to PO

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No exact services were
specified on PO by the buyer
Supplier clicks here to create SES
Supplier opens the new PO (this is a portal supplier’s view)

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Supplier can add contracted items and—
because the business rule was enabled—
the supplier can also add unplanned,
noncontracted items
Supplier adds line items to the SES. This step is controlled by buyer’s
business rules that are configured in SAP Ariba solution

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Items and prices
per the ERP
contract (see next
slide)
When the supplier selects “Add Contract/Catalog Items,” a list of planned items
for ERP contract 4600000173 is displayed for selection and adding to the SES

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ERP contract integration with SES
Contract 4600000173 is integrated with the SAP Ariba cloud to ensure the
SES matches your vendor agreements

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Supplier can’t edit
contracted item’s
price to ensure
compliance with
the contract
For
noncontracted,
unplanned item,
supplier enters all
information
Supplier’s SES now has a contract-based planned item and also an
unplanned item

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Click Submit
Supplier submits SES

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SES to approve
Buyer’s management SES and invoice can take place in SAP Ariba
Collaborative Commerce instead of ERP

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Tracking of invoice and
service amounts against PO
Click
Approve
Buyer can approve/reject the SES in SAP Ariba Collaborative Commerce
instead of ERP. Approval workflow is very configurable.

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SES approval activates the
Create Invoice button
Supplier can now flip the approved SES into an invoice

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Fields can’t be edited
Supplier enters taxes and submits the invoice. In this case, the business rules do not allow a
supplier to change the invoice from what buyer approved on the SES in order to prevent invoice
exceptions

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Each tab in the invoice
reconciliation view
provides visibility to
orders and SES’s.
Invoice has no exceptions and is
auto-approved (“zero touch”)
Buyer approves the invoice in SAP Ariba Collaborative Commerce. Buyer can see all related
documents in SAP Ariba cloud

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SES and invoice
shown in PO History
Note: The Call-Off tab is related to
trading agreements for SAP Agricultural
Contract Management, which is also
enabled in this shared demo system.
Agreement
reference
The ERP’s contract release
documentation view shows
the POs applied to this
contract, including the PO
shown on this slide
SAP Ariba solution sends all documents to ERP through native integration