Subcontracting with Ariba Network (5I2)

Subcontracting with Ariba Network (5I2)

A subcontract purchase requisition is either generated via the Material Requirements Planning (MRP) process or manually by a requestor. The purchase requisition is converted into a subcontract purchase order. The purchase order is subject to approval based on predefined parameters before being issued to the subcontractor. The outbound delivery is created, and the goods are picked and shipped to the subcontractor. With the supply of the finished material, the goods receipt is created. The consumption of the sent components is recorded upon the receipt of the value-added finished material. Subsequently, the invoicing process is triggered. 

Key Process Steps Covered

  • Send approved purchase orders electronically to your suppliers via Ariba Network
  • Receive digital order confirmations automatically from your suppliers
  • Process digital advanced shipping notification sent by your suppliers electronically in Ariba Network into inbound deliveries in SAP S/4HANA Cloud
  • Send goods receipt automatically to suppliers in Ariba Network
  • Receive invoices from suppliers electronically in Ariba Network
  • Update suppliers digitally in Ariba Network on invoice status updates
  • Start payment runs upon receiving supplier invoices in SAP S/4HANA Cloud Accounts Payable
  • Send payment advice automatically to suppliers via Ariba Network

Benefits

  • Streamline subcontracting processes efficiently and cost effectively
  • Speed up procurement processes
  • Improve compliance
  • Increase productivity of procurement and accounts payable staff
  • Reduce inquiries about payments from suppliers
  • Increase productivity in accounts payables department
  • Ensure highly automated processes
  • Reduce manual effort greatly and transactional costs
  • Monitor the process progress in real time

Software Products

  • SAP S/4HANA Cloud
  • Ariba Network

Where is Subcontracting with Ariba Network(5I2) being used?

This Scope item is used in the following way:

  • As a core function of Operational Procurement within Sourcing and Procurement Scope Item Group
  • As a management function of Invoice Management within Sourcing and Procurement Scope Item Group
  • As a core function of Production Operations within Manufacturing Scope Item Group

Process flow of Subcontracting with Ariba Network (5I2)

Find below the process flow of the scope item Subcontracting with Ariba Network as it is defined for release s4hc-2111.


Download Process Flow of Best Practice scenario Subcontracting with Ariba Network (5I2) - S/4HANA Cloud
Ref: Manufacturing of SAP S4HC-2111
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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