1. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Scenario Overview Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Scenario Explorer Business Value Business Areas Scenario/Processes Open Legend Scenario Flow Operational Buyer Scenario Description The following business roles are involved in this scenario: Supply Planner Strategic Buyer Warehouse Manager Accounts Payable/ Accountant The Procure-to-Pay (Stock) scenario enables you to purchase stock products, including those based on product specifications, based on a requirement that can be generated from a planning system, such as a Materials Requirements Planning (MRP) system. It covers all stages of the procurement process, from demand planning and creation of a purchase order, through automatic or manual assignment of sources of supply, sending the purchase order to a supplier, to goods and services receipt, invoice verification, and payment. Click process chevrons for details Processing Payables and Payments Planning Supply

2. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Scenario Overview Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Scenario Explorer Business Value Business Areas Scenario/Processes Open Legend Scenario Flow Operational Buyer Scenario Description The following business roles are involved in this scenario: Supply Planner Strategic Buyer Warehouse Manager Accounts Payable/ Accountant The Procure-to-Pay (Stock) scenario enables you to purchase stock products, including those based on product specifications, based on a requirement that can be generated from a planning system, such as a Materials Requirements Planning (MRP) system. It covers all stages of the procurement process, from demand planning and creation of a purchase order, through automatic or manual assignment of sources of supply, sending the purchase order to a supplier, to goods and services receipt, invoice verification, and payment. Click process chevrons for details Processing Payables and Payments Planning Supply Legend Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third- party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Close Legend i

3. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Planning Supply Scenario Explorer Business Value Business Areas Scenario/Processes Scenario Flow Process Description The Planning Supply business process enables your company to effectively carry out material and capacity planning. You are provided with an up-to-date overview of the demand and supply situation for either a product and supply planning area combination, or a product, product specification, and supply planning area combination. The multi-level planning run calculates the required supply and then creates the supply and demand pegging network accordingly, also taking into consideration the selected product specification. If planned order is created manually product specification must be provided for specified products. If there are planning issues, the system raises exceptions to alert you to them. You can then decide what action to take, for example, you can manually create or update planning proposals. The load leveling function is also available to verify the feasibility of the supply plan and level out the load if it is not possible to increase capacity. Performed by Supply Planner In the Work Center Supply Planning Further Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Planning Supply Plan material Plan capacity Check and resolve an exception i i i X Processing Supplier Invoices …

4. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Initiating Purchasing Scenario Explorer Process Description Performed by Supply Planner In the Work Centers Supply Control/ Production Control Further Information Click process chevrons for details Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments Planning Supply Initiating Purchasing Initiate purchasing i X Business Value Business Areas Scenario/Processes Scenario Flow The Initiating Purchasing business process enables you to create purchase requests based on purchase proposals, including product specifications, and forward these purchase requests to the purchasing department.

5. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Purchase Requests – Bundle and Order Scenario Explorer Process Description Performed by Operational Buyer In the Work Center Purchase Requests and Orders Further Information Click process chevrons for details Processing Supplier Invoices Processing Requests for Quotation Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Planning Supply Processing Purchase Requests – Bundle and Order … Assign a source of supply Initiate RFQ processing Bundle and create a purchase order i ii X Click hereClick here to display process variants Business Value Business Areas Scenario/Processes Scenario Flow The Processing Purchase Requests - Bundle and Order business process enables you to transfer purchase requests into purchase orders. You can assign missing sources of supply and then bundle multiple assigned purchase requests into purchase orders.

6. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Purchase Requests – Bundle and Order Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Processing Supplier Invoices Processing Requests for Quotation Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Planning Supply Processing Purchase Requests – Bundle and Order … Assign a source of supply Initiate RFQ processing Bundle and create a purchase order i ii X Click hereClick here to hide process variants Processing Purchase Requests - Order i Business Value Business Areas Scenario/Processes Scenario Flow The Processing Purchase Requests - Bundle and Order business process enables you to transfer purchase requests into purchase orders. You can assign missing sources of supply and then bundle multiple assigned purchase requests into purchase orders. Performed by Operational Buyer In the Work Center Purchase Requests and Orders

7. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Requests for Quotation Scenario Explorer Process Description Performed by Strategic Buyer In the Work Center Sourcing and Contracting Further Information Click process chevrons for details Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Planning Supply Processing Requests for Quotation … Group sourcing request items Create a request for quotation Enter quotes Compare quotes and create follow-up documents i ii i X Business Value Business Areas Scenario/Processes Scenario Flow The Processing Requests for Quotation business process enables your purchasing department to bundle your company's purchasing requirements and to find appropriate sources of supply for the materials and services required. This includes finding sources of supply for purchase requests, for example, and for the negotiation of new or expiring purchasing contracts. You can invite new or existing suppliers to participate in requests for quotation and compare the quotes received easily in the system to determine most suitable supplier for your requirements. Once you have determined the winning quote, the bidders are notified about the outcome of the request for quotation process, and follow-up documents, such as purchase orders or contracts, can be created.

8. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Purchase Orders Scenario Explorer Process Description … Performed by Operational Buyer In the Work Center Purchase Request and Orders Further Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Inbound Delivery Notifications Planning Supply Processing Purchase Orders Monitor a purchase order Create and maintain a purchase order Send a purchase order Approve a purchase order Acknowledge a purchase order i i i i i X Business Value Business Areas Scenario/Processes Scenario Flow The Processing Purchase Orders business process enables you to work on automatically created purchase orders or to manually create a purchase order with or without reference to a contract or a list price. You can also search in a supplier catalog for the products to be ordered. The purchase order can contain stock material with or without product specification, services, or non-stock material that can be ordered for different purposes (for example, for cost centers, projects, or as an individual material within an asset procurement process). You can also create third-party purchase orders for materials and services manually, which can be assigned to sales orders, service orders, or customer projects. If all relevant data is maintained, the purchase order is sent to the supplier, which can also be an affiliated company that uses either SAP Business ByDesign or SAP ERP. It is also possible that an approval procedure depending on the purchase order value is in place. Optionally, a purchase order acknowledgment can be used. The process can have multiple degrees of automation.

9. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Delivery Notifications - Supplier Delivery Notifications Scenario Explorer Process Description Performed by Warehouse Manager In the Work Center Inbound Logistics Further Information Click process chevrons for details Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Deliveries Processing Inspections Planning Supply Processing Delivery Notifications Supplier Delivery Notifications Create a Supplier Inbound Delivery Notification i X … Click here Click here to display process variants Business Value Business Areas Scenario/Processes Scenario Flow The Processing Delivery Notifications - Supplier Delivery Notification business process allows you to create delivery notifications manually or via B2B communication from your supplier, which can also be an affiliated company using SAP ERP. You can process your supplier deliveries with or without warehouse tasks.

10. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Delivery Notifications - Supplier Delivery Notifications Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Deliveries Processing Inspections Planning Supply Processing Delivery Notifications Supplier Delivery Notifications Create a Supplier Inbound Delivery Notification i X … Click here Click here to hide process variants Processing Delivery Notifications/ Supplier Delivery Notifications for Externally-Managed Locations i Business Value Business Areas Scenario/Processes Scenario Flow The Processing Delivery Notifications - Supplier Delivery Notification business process allows you to create delivery notifications manually or via B2B communication from your supplier, which can also be an affiliated company using SAP ERP. You can process your supplier deliveries with or without warehouse tasks. Performed by Warehouse Manager In the Work Center Inbound Logistics

11. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Inbound Deliveries - Based on Purchase Orders Without Task Control Scenario Explorer Process Description … Further Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inspections Planning Supply Processing Inbound Deliveries – Based on Purchase Orders Without Task Control Post a goods receipt based on a purchase order i Processing Supplier Invoices X Click here Click here to display process variants Business Value Business Areas Scenario/Processes Scenario Flow The Processing Inbound Deliveries - Based on Purchase Orders Without Task Control business process allows you to post received products to stock based on a purchase order. You directly post the goods receipt and the system records the products as delivered and confirms the supplier delivery. A quality inspection can be created automatically. The incoming goods can be stored in a quality logistics area. Performed by Warehouse Manager In the Work Center Inbound Logistics

12. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Inbound Deliveries - Based on Purchase Orders Without Task Control Scenario Explorer Process Description … Further Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inspections Planning Supply Processing Inbound Deliveries – Based on Purchase Orders Without Task Control Post a goods receipt based on a purchase order i Processing Supplier Invoices Click here Click here to hide process variants Processing Inbound Deliveries - Based on ASN with Task Control Processing Inbound Deliveries - Based on ASN Without Task Control Processing Inbound Deliveries for Externally-Managed Location i i i X Business Value Business Areas Scenario/Processes Scenario Flow The Processing Inbound Deliveries - Based on Purchase Orders Without Task Control business process allows you to post received products to stock based on a purchase order. You directly post the goods receipt and the system records the products as delivered and confirms the supplier delivery. A quality inspection can be created automatically. The incoming goods can be stored in a quality logistics area. Performed by Warehouse Manager In the Work Center Inbound Logistics

13. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Inspections Scenario Explorer Process Description Performed by Inspector Quality Engineer Quality Manager In the Work Center Quality Control Further Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries … X Processing Supplier Invoices Processing Payables and Payments Processing Inspections Decide about quality Record inspection results Inspect samples iii X Business Value Business Areas Scenario/Processes Scenario Flow The Processing Inspections business process allows you to process, monitor, and analyze inspections of products : Inspections at goods receipt Receiving inspections for supplier deliveries, first articles, customer returns, and stock transfers Inspections in production In-process control and final inspections for production Inspections in shipping Final inspections for customer shipments As part of this process, you inspect the samples taken for inspection, record results, make a decision about the quality of the inspected goods, and, if necessary, trigger corrective or preventive actions. Planned inspections are triggered automatically based on a suitable logistics or production model. Unplanned inspections are triggered manually by the user.

14. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Supplier Invoices Scenario Explorer Process Description Performed by Accounts Payable Accountant In the Work Center Supplier Invoicing Further Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments … Processing Supplier Invoices Create a supplier invoice Resolve a supplier invoice exception Approve a supplier invoice i i i X Click here Click here to display process variants Business Value Business Areas Scenario/Processes Scenario Flow The Processing Supplier Invoices business process enables you as an accountant to enter, verify, and post invoices, credit memos, and down payment requests that you received from your supplier by fax or by mail. Alternatively, your supplier, which can also be an affiliated company, can send you these documents electronically as XML messages. An automated invoice-verification process compares all supplier invoices with their corresponding purchase documents, if available. You can also charge supplier invoice items to partner companies, and you can distribute additional costs, such as freight, among all other supplier invoice items. When the supplier invoice is complete and correct, you post it. The supplier invoice is then used to pay your suppliers. If relevant, the system also creates new fixed assets automatically.

15. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Supplier Invoices Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Processing Requests for Quotation Processing Purchase Requests Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments … Processing Supplier Invoices Create a supplier invoice Resolve a supplier invoice exception Approve a supplier invoice i i i X Click here Click here to hide process variants Processing Supplier Invoices Using ERS i Business Value Business Areas Scenario/Processes Scenario Flow The Processing Supplier Invoices business process enables you as an accountant to enter, verify, and post invoices, credit memos, and down payment requests that you received from your supplier by fax or by mail. Alternatively, your supplier, which can also be an affiliated company, can send you these documents electronically as XML messages. An automated invoice-verification process compares all supplier invoices with their corresponding purchase documents, if available. You can also charge supplier invoice items to partner companies, and you can distribute additional costs, such as freight, among all other supplier invoice items. When the supplier invoice is complete and correct, you post it. The supplier invoice is then used to pay your suppliers. If relevant, the system also creates new fixed assets automatically. Performed by Accounts Payable Accountant In the Work Center Supplier Invoicing

16. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Payables and Payments Scenario Explorer Process Description Performed by Accounts Payable Accountant In the Work Centers Payables Payment Management Liquidity Management Further Information Click process chevrons for details Processing Supplier Invoices Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections … Processing Payables and Payments - Processing Payments Automatically Check and release a payment proposal Approve a payment Create a payment medium and send to bank or payee Process a bank statement Allocate a payment i i i i i X Click here Click here to display process variants Business Value Business Areas Scenario/Processes Scenario Flow The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared.

17. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Payables and Payments Scenario Explorer Process Description The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared. Performed by Accounts Payable Accountant In the Work Centers Payables Payment Management Liquidity Management Further Information Click process chevrons for details Processing Supplier Invoices Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections … Processing Payables and Payments - Processing Payments Automatically Check and release a payment proposal Approve a payment Create a payment medium and send to bank or payee Process a bank statement Allocate a payment i i i i i X Click here Click here to hide process variants Processing Externally-Initiated Payments of Credit Memos by Incoming Bank Transfer Processing Externally-Initiated Payments of Credit Memos by Incoming Check Processing Externally-Initiated Payments of Credit Memos by Incoming Check with Lockbox Processing Externally-Initiated Payments of External Credit Memos by Bill of Exchange Processing Payments Manually with Bills of Exchange Processing Payments Manually with Open Item Clearing Processing Payments with Petty Cash Processing Payables and Payments with Accounts Maintenance - Standard < i i i i i i i i Business Value Business Areas Scenario/Processes Scenario Flow

18. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Payables and Payments Scenario Explorer Process Description Performed by Accounts Payable Accountant In the Work Centers Payables Payment Management Liquidity Management Further Information Click process chevrons for details Processing Supplier Invoices Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections … Processing Payables and Payments - Processing Payments Automatically Check and release a payment proposal Approve a payment Create a payment medium and send to bank or payee Process a bank statement Allocate a payment i i i i i X Click here Click here to display process variants The accountant releases the payment that the manager may previously have approved. The system creates the payment medium in an automatic run or the accountant creates it manually. The system provides checks and outgoing bank transfers and the option of remittance advices. The accountant prints checks and sends them by mail to the payee. Bank transfers stored in a file are sent by the accountant to the bank or uploaded to the banking software. X Business Value Business Areas Scenario/Processes Scenario Flow The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared.

19. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Process Details: Processing Payables and Payments Scenario Explorer Process Description Performed by Accounts Payable Accountant In the Work Centers Payables Payment Management Liquidity Management Further Information Click process chevrons for details Processing Supplier Invoices Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections … Processing Payables and Payments - Processing Payments Automatically Check and release a payment proposal Approve a payment Create a payment medium and send to bank or payee Process a bank statement Allocate a payment i i i i i X Click here Click here to display process variants The system receives information about the processed payments in a bank statement, lockbox, or bank advice, and allocates them to the appropriate process or matches them against the payments created in the system. If allocation is not possible, the accountant has to process it manually in a system-generated task. X Business Value Business Areas Scenario/Processes Scenario Flow The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared.

20. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Business Areas Scenario Explorer Business Value Business Areas Scenario/Processes Scenario Flow Business Areas Supply Chain Planning and Control Purchasing Sourcing Cash Flow Management Manufacturing, Warehousing and Logistics Business Area Description Manage your supply and demand planning, and control the material flow. On the basis of an exception-driven approach, plan and consolidate your procurement requirements, create feasible production plans, and determine and confirm realistic delivery dates. The SAP Business ByDesign solution enables you to easily define and maintain individual customer requirements and product variants. You can also use the software to: Check product availability and confirm delivery dates by checking customer requirements against stock on hand and product supply Combine automated operations with manual planning, and manage your resource capacity to meet production demand Specify your processes for third-party order processing and stock transfers in order to save storage and transport costs by delivering directly from your supplier Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments Planning Supply

21. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Business Areas Scenario Explorer Business Areas Supply Chain Planning and Control Purchasing Sourcing Cash Flow Management Manufacturing, Warehousing and Logistics Business Area Description Streamline your company’s purchasing activities by automatically creating purchase orders, verifying invoices, and identifying duplicates and variances in invoices. The SAP Business ByDesign solution makes purchasing information instantly available to your buyers, enabling them to make the best possible purchasing decisions for your company. You can also use the software to: Gain insight into the status of purchases throughout the company by using functionality to monitor and manage all purchasing activities Streamline and accelerate purchasing through the use of self-service procurement and reduce the volume of routine purchasing tasks Create invoices with or without reference to a purchase order and automatically create invoices on behalf of your suppliers based on existing goods and services receipts Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments Planning Supply Business Value Business Areas Scenario/Processes Scenario Flow

22. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Business Areas Scenario Explorer Business Areas Supply Chain Planning and Control Purchasing Sourcing Cash Flow Management Manufacturing, Warehousing and Logistics Business Area Description Build and maintain a comprehensive portfolio of supplier and product information, which serves as a central base for all your supplier-related information. The SAP Business ByDesign solution enables you to automate many of your sourcing activities, so employees can concentrate on finding the best suppliers – and the best prices. You can also use the software to: Find, negotiate, and document the best sources of supply and manage the complete contract lifecycle Track and monitor the performance of your suppliers and leverage the solution’s reporting functionality to identify the top performers Gain pricing advantages through quantity discounts by bundling several purchase request automatically into a single order Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments Planning Supply Business Value Business Areas Scenario/Processes Scenario Flow

23. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Business Areas Scenario Explorer Business Areas Supply Chain Planning and Control Purchasing Sourcing Cash Flow Management Manufacturing, Warehousing and Logistics Business Area Description Produce products that meet your customers’ requirements and high expectations of quality while maximizing your manufacturing and logistics efficiency. The SAP Business ByDesign solution enables you to manage production, deliveries and returns, physical inventory, and stock transfers. It synchronizes supply execution data, such as work in process and inventory postings, with financials. You can also use the software to: Enhance tracking and tracing procedures by using identified stock, such as batches or lots, as well as labeling, and logistics units Integrate quality assurance tasks, such as final inspections, with production to determine whether a product meets predefined quality requirements Automate processes for inbound logistics, outbound logistics, and production and decide where to use bar-code or RF readers, mobile devices, or electronic instructions Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments Planning Supply Business Value Business Areas Scenario/Processes Scenario Flow

24. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Business Areas Scenario Explorer Business Areas Supply Chain Planning and Control Purchasing Sourcing Cash Flow Management Manufacturing, Warehousing and Logistics Business Area Description Nearly every business process involves the flow of cash within your company and between your company and its external business partners and customers. The SAP Business ByDesign solution integrates and takes into consideration the financial aspect of each step of your business processes, enabling you to gain control over your cash inflow and outflow. You can also use the software to: Centrally manage and control your payables and receivables, automate payment and clearing processes, and valuate payables and receivables in multiple foreign currencies Quickly create tax returns using centrally managed corporate data and report declarations – and pay taxes if required Set up expense and reimbursement policies, monitor employee expenses, and reimburse approved expenses Processing Supplier Invoices Processing Requests for Quotation Processing Purchase Requests Initiating Purchasing Processing Purchase Orders Processing Inbound Delivery Notifications Processing Inbound Deliveries Processing Inspections Processing Payables and Payments Planning Supply Business Value Business Areas Scenario/Processes Scenario Flow

25. ©© 2012 SAP AG. All rights reserved. SettleInitiateProcure Send Purchase Order Acknowledge Purchase Order Source and Bundle Receive / Verify Supplier Invoice Pay InvoicePost to Ledger Create Purchase Order Initiate RFQ Processing Procure-to-Pay (Stock) Business Value Scenario Explorer Business Value Business Areas Scenario/Processes Scenario Flow Overview For midsized companies seeking greater sourcing effectiveness and procurement efficiency, this process provides complete transparency in order to keep customer commitments while balancing stock levels with demand. You can grow profits by building an integrated, demand-driven supply chain. SAP Business ByDesign helps efficiently manage the procure-to-pay process: From assigning the source of supply, procurement management, logistics through to matching shipments with invoices. Automated sourcing and purchase order creation, which can be tailored to your business Automated Invoice verification where user interaction is only for exception handling Workload monitoring and reporting that drives process transparency supported by spend analytics Alerts and exception handling for fast handling of non-standard requests Integrated SAP Interactive Forms software (by Adobe®); collaboration support Payments to suppliers are highly automated to achieve the highest possible payment discounts taking the current liquidity situation into consideration Built-in analytics that enable the purchasing department to supervise the full supplier life cycle by monitoring the supplier base Key Benefits Fulfill Receive Delivery Manage Inventory

26. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Scenario Flow Variant: Procure-to-Pay (Stock) Legend & Variants Work center in which process is performed Business document flow Process related to Financials Related scenarios Variants of the Scenario:  Procure-to-Pay (Stock)  Return to Supplier Return to Supplier Process mainly driven by the user Process variant1 Process variant 2 Scenario Explorer Business Value Business Areas Scenario/Processes Scenario Flow Work Center Additional Application Supply Planning Planning Supply Supply Control Supply Planning Initiating Purchasing Purchase Requests and Orders Processing Purchase Request Sourcing and Contracting Processing Requests for Quotation Purchase Requests and Orders Processing Purchase Orders Inbound Logistics Processing Inbound Delivery Notifications Inbound Logistics Processing Inbound Deliveries Supplier Invoicing Processing Supplier Invoices Payment Management Processing Payables and Payments Supply Control Supply Planning Processing Purchase Requests – Bundle and Order Processing Purchase Requests - Order Supplier Delivery Notification Based on ASN with task control Based on ASN without task control Based on PO without task control Processing Supplier Invoices Using ERS Processing Payments Manually with Open Item Clearing Processing Payments with Petty Cash Demand Planning Make-to-Stock Order-to-Cash (Sell-from -Stock)

27. ©© 2012 SAP AG. All rights reserved. Procure-to-Pay (Stock) Scenario Flow Variant Legend & Variants Work center in which process is performed Business document flow Process related to Financials Related scenarios Variants of the Scenario:  Procure-to-Pay (Stock) Procure-to-Pay (Stock)  Return to Supplier Process mainly driven by the user Process variant1 Process variant 2 Scenario Explorer Business Value Business Areas Scenario/Processes Scenario Flow Work Center Supply Planning Planning Supply Supply Control Supply Planning Initiating Purchasing Purchase Requests and Orders Processing Purchase Request Sourcing and Contracting Processing Requests for Quotation Purchase Requests and Orders Processing Purchase Orders Inbound Logistics Processing Inbound Delivery Notifications Inbound Logistics Processing Inbound Deliveries Supplier Invoicing Processing Supplier Invoices Payment Management Processing Payables and Payments Supply Control Supply Planning Processing Purchase Requests – Bundle and Order Processing Purchase Requests - Order Supplier Delivery Notification Based on ASN with task control Based on ASN without task control Based on PO without task control Processing Supplier Invoices Using ERS Processing Payments Manually with Open Item Clearing Processing Payments with Petty Cash Quality Control Processing Inspections Demand Planning Make-to-Stock Order-to-Cash (Sell-from -Stock)