Business Blueprint

Master Data (Procurement)

CENTRAL PUBLIC WORKS DEPARTMENT,

Redevelopment Project Zone
N. Delhi, India

CPWD-RPZ ERP Implementation Business Blueprint

Document Vesrion Control
Title Business Blueprint Document
Document No CPWD_BBP_MM01_Master data Revision 1.0

Revision History

Revision Date Details Name

1.0 16.03.2020 Draft Bhabani Sankar Pal

CPWD-RPZ ERP Implementation Business Blueprint

 Stakeholder Signoff

Team Project Role Name Signature Date

Sh. Bhabani Sankar

Consultant
Pal

Sh. Raveendra
Project Manager
Kolakaluri

HIGHBAR Sh. Niladari

Team Program Manager
Harichandan

Executive Engineer Sh. Akhelesh Kumar

Asst Executive
Sh. Shieney Singhal
Engineer
CPWD
Team Asst Executive
Sh. Abhay Kumar
Engineer

Officer Sh.A.K. Sen

CPWD-RPZ ERP Implementation Business Blueprint

 Table of Contents
1.Introduction .......................................................................................... 5
2.Organization Structure & Process List: ......................................................... 6
2.1 Organization Structure Flow Chart: ...................................................... 6
2.2 Abbreviations and Acronyms ............................................................... 6
3. AS IS Business Process ............................................................................. 7
4. To Be Business Process and Function Description ........................................... 7
4.1 Creation of Material Master: ............................................................... 7
4.2 Creation and Maintenance of Service Master: .........................................10
4.3 Creation and Maintenance of Vendor Master: .........................................12
4.4 Blocking / Unblocking of Vendors for Purchase transactions: ......................14
4.5 Process Rules: ...............................................................................15
5.FRS Mapped ......................................................................................... 15
6. Document Management System (DMS) ........................................................ 16
7. Description of functional deficits (GAPS) ..................................................... 17
8. RICEFW’s: ........................................................................................... 17
9.Fiori Apps & Dashboard Reports ................................................................ 18
9.1 Fiori Apps .....................................................................................18
9.2 Dashboard Reports ..........................................................................18

CPWD-RPZ ERP Implementation Business Blueprint

1.Introduction

This document is prepared to give a fair idea to core team members, support team members
and process owners of CPWD about the TO BE processes mapping with current AS IS processes
based on industry and best practices.
The material master contains information on the materials that CPWD procures through
GEM. Creation and maintenance of the material master data as per SAP standard
functionality, materials need to be classified based on material types, material groups. It is
recommended to maintain Material master by designated core team members. Only these
core team members will have authorization in SAP to create/change/block/un-block and
extend materials.
This document also describes how the service master will be classified and maintained in
SAP. Service master record contains the details of all the services that can be procured from
an external vendor within an organization. It contains the description of services along with
their unit of measure. Service master record serves as a reference for creating service
purchase order, but it is not necessary. Service purchase order can also be created manually
without reference.
This document is concerned with the creation, maintenance and blocking of vendor master
data. Vendors can be differentiated as domestic suppliers, foreign suppliers & other service
providers by maintaining details like vendor name, address, country, city, postal code,
telephone number, contact person etc.
In SAP, all differentiated vendors will be created in the similar manner. Complete address
with contact details and tax registration details will also be maintained in different views
in vendor master. Vendor master is created for every business partner from whom the CPWD
procure goods and services. All contracts/ bidders of CPWD are treated as a vendor in SAP.

CPWD-RPZ ERP Implementation Business Blueprint

2.Organization Structure & Process List:

 Client
 Plant
 Purchase Organization
 Purchasing group

2.1 Organization Structure Flow Chart:

Client

Company
Code

Plant Plant

Storage Purchase
Location Org

Purchase
Group

All RPD have 4 subdivision & RPED have 2 subdivision

2.2 Abbreviations and Acronyms

Acronyms Description
CPWD Central Public Works Department
RPD Redeployment project division
UOM Unit of Measurement
PR Purchase Requisition
PO Purchase Order
GR Goods Receipt
MAP Moving Average Price
GEM Government E Marketing
KDS Key Data Structure

CPWD-RPZ ERP Implementation Business Blueprint

3. AS IS Business Process

As per current scenario no material, Service & Vendor Master data maintained in any system.
All the data maintained manually.

4. To Be Business Process and Function Description

4.1 Creation of Material Master:

Material Master Views:

Since several departments of a company work with one material and each department uses
different information for the material, the data is structured in a material master record,
according to user departments such as basic data, Accounting, classification, costing,
forecasting, materials planning, production resources and tools, purchasing, Quality
management, Sales and distribution, Plant/Storage location stock, and work scheduling.
In some cases, it is required to change or block material due to some control requirements
on process. E.g. materials can be blocked for all transactions or for procurement. This block
can be set at plant level also & at client level also.
Based on the requirement the view can be change in according to the CPWD business. In SAP
there is a provision for different views based on the type of material.

Material type:
When creating a material master record, you must assign the material to a material required
type. The material type determines certain attributes of the material and has important
following control functions.
 Number ranges (internal/external)
 Field selection groups (making fields optional or mandatory)
 Quantity/Value update
 Internal/external procurement
 Views available (Purchase/Costing/Accounting/MRP etc.)
 Screen sequence and field selection

ROH Raw Material

FERT Finished Goods
VERP Packing Goods
HALB Semi Finish Goods
HIBE Consumable
DIEN Services Material
PIPE Pipeline Material
NLAG Non-Stock Material
UNBW Non-Valuated Material

CPWD-RPZ ERP Implementation Business Blueprint

 Material Number Number Range
Description Company Code
Type Range From To
CPWD Consumables &
ZRCS CPWD 1000000000 1099999999
Office Materials
ZRAT CPWD Asset Materials CPWD 1100000000 1199999999

NOTE: All the data available in KDS Document.

Material group:
Material group do group of Materials from Information/reporting point of view, viz. for
looking at Stocks, Consumption, Price trends, Purchase history etc.
It is advised to classify all the material with the level at which information is required and
policy decisions / analysis is done.
Material Material Group Description Long Description
Group
CHAR CHAR CHAR
9 20 60
110001 Consumables & Office Materials Consumables & Office Materials
110002 IT Assets IT Assets
110003 IT Consumables IT Consumables
110004 Office Equipment & Appliances Office Equipment & Appliances
110005 Office Furniture Office Furniture

NOTE: All the data available in KDS Document.

Unit of Measurements:
Every material created will have a base unit of measure as stock keeping units, standard
SAP provides a comprehensive list of Unit of Measurement (UOM), anything extra can be
added subsequently.
Apart from Base unit, a material can have alternative Unit of Measurement (UOM) for
purchase purpose, in this case the corresponding conversion factor needs to maintain in the
material master. However, it is recommended to have base unit of measurement for
purchase and stock keeping.

CPWD-RPZ ERP Implementation Business Blueprint

Purchasing group:
It is a Key for a buyer or a group of buyers, who is/are responsible for certain purchasing
activities. Various purchasing reports such as pending PR/PO and analysis reports are
available at purchasing Group level. Authorizations are also defined at Purchasing Group
level. More than one user ID can be assigned to Purchasing groups.
Purchasing Purchase Group Description
Group
CHAR CHAR
3 18
R01 Mohamadpura PG
R02 Thyagraj Nagar PG
R03 Kasturba 1 PG
R04 Kasturba 2 PG
R05 Srinivaspuri 1 PG
R06 Srinivaspuri 2 PG

NOTE: All the data available in KDS Document.

Valuation Class:
It is the classification of materials from accounting perspective. A material type can have
one or many possible valuation class(s), but a material number is assigned to only one
valuation class at a time. It is recommended to have material group wise valuation class.
i.e., Materials under one material group will have same valuation class.
Price control:
There are two price controls, one is standard price i.e.” S “& the other one is moving
average price (MAP) i.e. “V”.
 Standard price (S) is used for products that do not fluctuate frequently. It is usually
used for finished or semi-finished products.
 Moving average price (V) is used mainly for materials that are purchased
externally. The advantage of using moving average price is that your inventory costs
will always reflect the current market cost.

Under certain conditions, you can change the type of price control:

From standard price to moving average price:

 You can make this change at any time. The moving average price (which until now
has been updated statistically only) gets replaced with the standard price and is used
for further valuation.

From moving average price to standard price:

You cannot make this change in the following two cases:
 If the material master record is set to split valuation.

CPWD-RPZ ERP Implementation Business Blueprint

  If the standard price comes from costing and is not equal to the
moving average price.

If the change is possible, the moving average price becomes the standard price, which is
then used for valuation. You change the type of price control by overwriting the price
control indicator in the material master record with the new indicator.
Tolerance limits for over delivery and under delivery:
In standard SAP the goods receipts are not allowed beyond the tolerance limit mentioned in
purchase order. If delivery quantity exceeds the tolerance limit, goods receipt cannot be
processed, and purchase order needs to be amended.
In SAP, while creating material code purchasing value keys will be assigned in material
master (purchasing view).
Purchasing value key determines the following things:
 Key defining various values for purchasing functions, such as reminder intervals and
tolerances. The reminder intervals are specified in days and indicate after which
periods the first, second, and third reminders/urging letters are to be sent to a
vendor about outstanding quotations, outstanding order acknowledgments, or
overdue deliveries. The system generates the reminders or urging letters
(expediters).
 Over and under deliveries tolerances
 Order acknowledgement requirements in PO

Purchasing value keys will be configured with the % of over delivery and under delivery
allowed for goods receipt against purchase order.
This tolerance limit can be changed in purchase order. In purchase order overall delivery
tolerance limit cannot exceed the limit maintained in material master.
Profit Centre:
Profit centre is assigned to every material at plant (valuation area level) for updating the
information at Profit centre level.
4.2 Creation and Maintenance of Service Master:

Maintaining Service Master Data is required for codifying the jobs or activities to standardize
them for having better control and avoiding duplication of jobs being carried out by the
Contractor. Sometimes the same job is defined in different manner. To avoid such
anomalies, it is required to codify the activities involved in each job.

New Service master is going to be prepared, as it does not exist currently. It is necessary to
avoid duplication by building some logic to the codes generated for codifying the activities.
New service groups need to be created in the SAP system.

One service master creation excel template will be created and circulated to SAP users.
User must furnish all necessary and relevant information of the services(s) in the excel
template. Same template will be forwarded to core team member (creator of services). The
relevant data in excel sheet will be validated by core team member and if required, then
only new services(s) will be created in SAP to carry out further transaction. It is required to
provide & validate all necessary details in excel template and while creating service master

CPWD-RPZ ERP Implementation Business Blueprint

so that service master search facility will be easy. As the detail
specification of activity are plant specific / job specific, as discussed service master to be
created at broader level.

The Service master is source for retrieving service-specific data. The services must be coded
at the activity level.

All the Subcontracting related Services are classified using Service Category as for example
“Subcontracting Services”, “Hiring services” etc. The Service Category determines number
assignment whether external or internal.

For details please refer KDS (Key Data Structure)

Service category:

All the services are classified using service category as “Subcontracting services”, “IT
Services”, “Admin Services” etc. The service category determines number assignment
whether external or internal. For CPWD internal number range is proposed.
Service Category Description Number Number Ranges
Ranges From To
CHAR CHAR
4 25
ZREP CPWD EPC Services 1000000 1099999

NOTE: All the data available in KDS Document.

Service Group:

Several services of same attributes can be grouped together under a service group. We can
use service group to execute reports, search service master record. In SAP, service group
and material group are defined at the same level but with different coding.
Service Group Service Group Description

CHAR CHAR
9 20
110001 CPWD EPC Services

NOTE: All the data available in KDS Document.

CPWD-RPZ ERP Implementation Business Blueprint

Unit of Measure:

Every service master will have a unit of measurement. Standard SAP provides a
comprehensive unit of measurement, anything extra can be added subsequently. Example:
hours, KM, MT/sec etc.
Valuation Class:

It is the classification of services from accounting perspective. A service number is assigned

to only one valuation class at a time. It is recommended to have service group wise valuation
class i.e. services under one service group will have same valuation class.
While creating new valuation class its code should always be same as that of first 2 digits of
a service group. Creation of valuation class is manual configuration process, which will be
performed by the core team. Therefore, person who is configuring valuation class must
check, that for which service group valuation class is required.
Services cannot be blocked & un-blocked as that of material or vendor master but the
deletion flag can be set for individual service.

Service master will facilitate the following advantages:

 Structured description of service level is possible where repetitive activities are

taking place.
 Price at service level within sectors can be compared with variations if any.
 Service master data can be used across all the locations with common identity.
 Service entry sheet at activity level will give status of completion of activity in a
planned manner and incomplete activities can be measured.
Bill passing can be done based on the completion of activities rather than on judgment.

4.3 Creation and Maintenance of Vendor Master:

The vendor master database contains information about the vendors (contractors & various
types of suppliers) that supply goods & hiring for work. This information is stored in
individual vendor master records.
In CPWD, Sub-contractors & suppliers/vendors are created as like as the vendor master
creation. The vendor master record is maintained by both Accounting and Purchasing. It is
organized in the form of General data, Company Code Data and the Purchasing
Organization Data.
General Data:
It is relevant to all company codes & purchasing organizations within your corporate
enterprise. The general data includes information such as the vendor's address, telephone
number, and language of communication with the vendor.
Company code data:
It has Accounting information and is maintained at company code level. This data includes
payment transaction data, withholding tax rates and the number of the relevant
reconciliation account.

CPWD-RPZ ERP Implementation Business Blueprint

Purchasing organization data:
It has purchasing data and is maintained at purchasing organization level. Such data includes
order currency, payment terms, contact persons, terms of delivery, GR based Invoice
Verification and Service based Invoice Verification etc. A Schema group is attached to the
vendor master. Schema group basically governs the Pricing procedure, which is directly
copied/defaulted while making a purchase order for the said vendor.
Purchase Organisation
Numeric
4
RPO1

NOTE: All the data available in KDS Document.

Vendor account group:
The vendor codes will be internally generated and will be based on the vendor account
group. All the Vendors are classified using Account groups.
The Account Groups will determine the number range within which the Vendor codes are
assigned.
In CPWD, Consultants & Sub-contractors are to be created as Vendors, Vendors who are not
part of the Master and still required to be sent certain documents like RFQ’s and Obtain
Quotations can be done by maintaining them as One-time Vendors (Only the Address will be
captured in this case at transition level).
One account group for the domestic vendor will be created for the following reasons:
 A vendor can supply the material as well as provide services especially in case of
repairs. The vendor will have GST(goods and service tax) in vendor master. The
appropriate tax code has to be selected or deselected during the invoice verification.
 If the vendor is catering to two (i.e. material & services) his balance will be viewed
only at one recon account, which is, attached to him during the creation of master
data.
The overseas vendors, from whom the material is imported, will be grouped under overseas
vendor account group & will be attached to the imported vendor recon account.

All the plants which are vendor for each other will be created under separate account group
for the stock transfer orders & will be attached to the Projects recon account.

Those vendors who are having the multiple ordering addresses such as will be created under
Domestic Vendor account group; different addresses of such vendors will be maintained
under ordering address Account group.

All these addresses maintained under ordering address Account group will be assigned to
the Main Vendor under Partner functions.

After the initial upload of Vendor masters, all new masters should be created centrally by
designated core team member at Head office. Data required for the master should be
provided by the relevant user department and should be approved by the authorized person.

CPWD-RPZ ERP Implementation Business Blueprint

Information regarding sales tax, PAN number will also be maintained.

GST (Goods & Services Tax) relevant master data is also maintained whenever excise
relevant transactions are applicable.

The GST Registration Number to be maintained in the tax number 3 field of control tab
of vendor master record. The field will be enabled for one-time vendor as well.

A new field is provided under CIN details tab (Vendor Master Data) for identification,
whether the vendor is GST registered, GST compounding, non-register, exempted etc.
Users can filter vendors as required by Purchasing Organization, by name, by search term.

Alternative Payee:

Alternate payee is a concept in SAP in accounts payable and account receivables wherein if
the payments are not to be made directly to the party to whom the amount is owed but on
a different name. For example, when making payments one does not need the main vendor
name but a different name to be printed on the cheque.

The alternate payee field must be updated in the corresponding master data. However,
there are two areas where it can be updated (optional), company code data and general
data. If the both the fields are filled, the company code specification has priority.
Partner Function:

Partner Function is a function in SAP where in vendor will act as a various business partner
i.e., they play a different role.
For example, Ordering address, goods supplier and invoicing party.
There could be a scenario where purchase order is placed for a vendor which has many
branches across the country and material could be delivered from any of the branch. In this
case, we have a main vendor and delivery vendor. Separate vendor masters will be created
for every delivery vendor. However, in main vendor master, delivery vendor will be
maintained. Similar process will be followed for vendor and invoicing party. With this
feature purchase order can be raised for main vendor and goods can be receipt from another
vendor or invoice verification can be made against other vendor. This function in SAP is
called as partner function.
The ownership for uploading the vendor master data will be with FI and however MM will
update relevant purchasing data.

4.4 Blocking / Unblocking of Vendors for Purchase transactions:

If there are certain problems with the goods supplied/services rendered by the vendor then
the vendor can be blocked through transaction code defined in SAP standard.

Vendor Master Record is blocked at Company Code as well as Purchasing Organization level
for one or combination of certain functions like:
 Placing of purchase order
 Performing Goods Receipt/Service Entry Sheet
 Accounting posting to the vendor account
 Payments to vendor
 All transactions

CPWD-RPZ ERP Implementation Business Blueprint

 Option is available in SAP to block & unblocked vendors and the same
can be done as and when required.
4.5 Process Rules:

 Materials description should be in upper case only.

 Plant & profit center should be same.
 Duplication of material master must be restricted.
 Valuation Classes would be assigned to Material Type.
 While maintaining valuation class in service master, system will give the list of
valuation classes as per the service category.
 Duplication of Vendor master must be restricted.

NOTE: The BBP document has been proposed to the CPWD process owners, however there
can be changes after the discussions and confirmation from them.

5.FRS Mapped

Page No. Page No. in

Detailed Business Addressed
Sl.No. Category in RFP BBP
Requirement in BBP?
document document

Section B,
Support definition of Annex No
Organization structure as 1.1.2
Master Data
legal entity, its Zonal, Fully
1 Page NO – (Refer KDS
Regional, circles, Addressed
divisional offices etc. 30 Document)
Point No-
20

CPWD-RPZ ERP Implementation Business Blueprint

6. Document Management System (DMS)

Document Management System is a cross application component of SAP that provides robust
document and e-asset management capabilities. It is mainly used to manage business
Documents, which are very important for day to day business. Companies needs to access
these documents and make it available for every authorized person. SAP DMS provides us to
store all important documents need to accessible by everyone in the organization.

SAP DMS enables the capture and management of:

 Electronic documents - Contract, Workorder & RA Bills Scanned Copy for future
reference
 Microsoft Office files
 Scanned images
 Any other electronic files that should be stored and controlled in a secure
environment.

SAP DMS Benefits:

 Central document pool for all document

 Global Access with in second
 Complete search result by indexing- Full text retrieval and search functionality
 Process optimization & transparency through integrated workflow
 Reduce Storage space
 Version and revision control
 Protection against fire & water damage

The file size & type of file will discuss over the implementation phase for better
understanding.

CPWD-RPZ ERP Implementation Business Blueprint

7. Description of functional deficits (GAPS)

Description of Functional Deficits

Ref

1 All the Data maintain Manual

8. RICEFW’s:

Reports (R), Interface (I), Conversion (C), Enhancements (E), Forms (F) and Workflow (W)

Approaches to fulfil
Ref Description of Functional Deficits
functional Deficits
1 Material List Reports
2 Service List Reports
3 Vendor List Reports

CPWD-RPZ ERP Implementation Business Blueprint

9.Fiori Apps & Dashboard Reports

9.1 Fiori Apps

SAP Fiori is a new user experience (UX) for SAP software and applications. It provides a set
of applications that are used in regular business functions like work approvals, financial
apps, calculation apps and various self-service apps.
SAP Fiori enables multiple device applications that allow users to start a process on their
desktop/laptops and to continue that process on a smartphone or on a tablet. SAP has
developed Fiori Apps based on User interface UI5.
SAP Fiori benefits:
 Approval of Requisition (Workflow Based)
 Approval of Workorder (Workflow Based)
 Track Workorder
 Order from Requisition

All the other functionality will be discuss & implement over time.
9.2 Dashboard Reports

SAP Dashboard is an SAP Business Objects Data Visualization Tool that is used to create
interactive dashboards from different data sources. Dashboard allows BI developers to
create custom dashboards from almost any data source to meet the business requirements
in an organization. You can export the dashboard to PDF, PPT, etc.
Dashboard Benefits:
 Build rich, interactive dashboards and visualizations
 All the Plant, Purchase Organization & Purchase group-based report can be seen.

All the other functionality will be discuss & implement over time.

CPWD-RPZ ERP Implementation Business Blueprint