1. ASUG Session 4709
Web Based T&M invoice processing using SAP MM ESM, integrated with Plant Maintenance

2. Web Based T&M invoice processing
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 Added more SAP functionality with EBP version 2.0c in June 2002 and BW version 3.0b in April 2003

3. C ontractor M anagement E nterprise T ool
Web Based T&M invoice processing
Reliant Resources’: C
ontractor M
anagement E
nterprise T
ool

4. Web Based T&M invoice processing
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

5. Web Based T&M invoice processing
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

6. Web Based T&M invoice processing
Reliant Resources’ CMET Process Diagram

7. Web Based T&M invoice processing
Four (4) Roles: 
What do they do?
Purchasing
Work Management
Contractor
SAP R/3 Automation

8. Web Based T&M invoice processing
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

9. Web Based T&M invoice processing
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

10. Web Based T&M invoice processing
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.

11. Web Based T&M invoice processing
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

12. Web Based T&M invoice processing
How do they do it?
Four (4) Roles: 
Purchasing
Work Management
Contractor
SAP R/3 Automation
Service Catalogs
Service Masters
Classification
ESM Contracts
Service Conditions

13. Web Based T&M invoice processing
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 Catalogs Equipment Estimates Labor Material Other - Within each Catalog, a Service is assigned a Valuation Class which in turn is tied in configuration to certain G/L accounts

14. Web Based T&M invoice processing
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

15. Web Based T&M invoice processing
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 Boilermaker Carpenter Painter - Service, Service Masters are the actual Services, e.g. different types of Boilermakers within the Craft Boilermaker Journeyman Boilermaker Apprentice Boilermaker Foreman

16. Web Based T&M invoice processing
Service Master for Boilermaker
Notice how the Service, Service Master is associated with the:
Valuation Class
Labor Service Catalog; and
Hierarchical Service Master

17. Web Based T&M invoice processing
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

18. Web Based T&M invoice processing
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

19. Web Based T&M invoice processing
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

20. Web Based T&M invoice processing
Service Contracts (ESM)
Service Contract (ESM) with:
Outline Folders; and
Service Masters added in the appropriate folder

21. Web Based T&M invoice processing
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 levels For Vendor with Plant For Vendor without Plant For Service Others - Pricing history not maintained through “change”, so we use the “add” functionality for updates with a new validity period

22. Web Based T&M invoice processing
Service Conditions
Service Conditions, one at the “Vendor without Plant” level and one at the “Other” level with:
Rates; and
Validity Dates

23. Web Based T&M invoice processing
Four (4) Roles: 
How do they do it?
Purchasing
Work Management
Contractor
SAP R/3 Automation
Create Work Order
Plan Cost
Plan Contractor

24. Web Based T&M invoice processing
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

25. Web Based T&M invoice processing
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.

26. Web Based T&M invoice processing
Four (4) Roles: 
How is it done?
Purchasing
Work Management
Contractor
SAP R/3 Automation
AutoPO (evening)
Web Prg (hourly)

27. Web Based T&M invoice processing
Four (4) Roles: 
How do they do it?
Purchasing
Work Management
Contractor
SAP R/3 Automation
Administrative
Invoicing (SEnt Sheet Entry)
Review, Approve, Submit SEnt Sheets
Work Management

28. Web Based T&M invoice processing

29. Web Based T&M invoice processing
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

30. Web Based T&M invoice processing
CMET Contractor Website - Administration
Within 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

31. Web Based T&M invoice processing
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

32. Web Based T&M invoice processing
CMET Contractor Website - Invoicing
Within 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

33. Web Based T&M invoice processing
CMET Contractor Website - Invoicing
Within the Labor Invoicing area, a Contractor enters:
Date worked, Invoice info, Text, Shift & Approver
Employee and their hours worked

34. Web Based T&M invoice processing
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

35. Web Based T&M invoice processing
CMET Contractor Website – Approvals/Rejections
Within 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

36. Web Based T&M invoice processing
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.

37. Web Based T&M invoice processing
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

38. Web Based T&M invoice processing
How do they do it?
Four (4) Roles: 
Purchasing
Work Management
Contractor
SAP R/3 Automation
Review SEnt Sheets:
for Approval
for Rejection
for Correction

39. Web Based T&M invoice processing
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

40. Web Based T&M invoice processing
Work Management - Approvals
A 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

41. Web Based T&M invoice processing
Four (4) Roles: 
How is it done?
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

42. Web Based T&M invoice processing
Reliant Resources’ CMET Process Diagram

43. Web Based T&M invoice processing
CMET Reports: 
Reliant’s
Contractor’s

44. Web Based T&M invoice processing
Reliant CMET Reports

45. Web Based T&M invoice processing
CMET Reports: 
Reliant’s
Contractor’s

46. Web Based T&M invoice processing
CMET Contractor Website – Reports

47. Web Based T&M invoice processing
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

48. Web Based T&M invoice processing
Future Plans:
Adding More Contractors
Planning for more large Projects
Adding more Reporting

49. Web Based T&M invoice processing
Questions

50. Thank you for attending!
Please remember to complete and return your evaluation form following this session.
Session Code: 4709