SAP External Services At Sempra Energy

ASUG Session 4705Andy Duran –Sempra Energy

Who is Sempra Energy

Sempra Energy is a Fortune 500 energy services holding company. Its subsidiaries provide electricity, natural gas, and diverse energy solutions around the world.Sempra Energy Utilities

– Southern California Gas Company• Largest Natural Gas Distribution Utility in the United States with over 18 million consumers and over 5.1 million meters 

– San Diego Gas and Electric• Provides service to 3 million consumers through 1.3 million electric meters and 775,000 natural gas meters in San Diego and southern Orange counties

• Sempra Energy Global Enterprises– Sempra Energy International

• Operates and own energy projects in the US, Peru, Mexico, Argentina, Chile– Sempra Energy Resources

• Develops and operates power plants and energy infrastructure for the competitive market. – Sempra Energy Solutions

• Develops and operates power plants and energy infrastructure for the competitive market. I.e. Energy management, facility management, billing management etc.

– Sempra Energy Trading• A leading participant in marketing and trading physical and financial commodity products, including natural gas, power, petroleum products and base

metals. – Revenue $6 billion– Employees – 12,000

–

– Sempra is derived from the Latin word semper, meaning always. We strive to always create a better way through quality services and responsible corporate citizenship.

SAP at Sempra Energy

P a g e P a g e 555 / 1 7 / 2 0 0 35 / 1 7 / 2 0 0 3

F u n c t i o n a l i t y i n u s e a t S e m p r aF u n c t i o n a l i t y i n u s e a t S e m p r a

R / 3R / 3B u s i n e s sB u s i n e s s

W a r e h o u s eW a r e h o u s e

A AA AA s s e t A s s e t

A c c o u n t i n gA c c o u n t i n g

C OC OC o n t r o l l i n gC o n t r o l l i n g

F IF IF i n a n c i a lF i n a n c i a l

A c c o u n t i n gA c c o u n t i n g

P PP PP r o d u c t i o nP r o d u c t i o n

P l a n n i n gP l a n n i n g

M MM MM a t e r i a l sM a t e r i a l s

M g m t .M g m t .

P SP SP r o j e c tP r o j e c t

S y s t e m sS y s t e m s

C C SC C SC u s t o m e rC u s t o m e r

C a r eC a r e

P M / S MP M / S MP l a n t M a i n t /P l a n t M a i n t /

S e r v i c e M a n a g e m e n tS e r v i c e M a n a g e m e n t

I n d u s t r yI n d u s t r yS o l u t i o n :S o l u t i o n :

F E R CF E R C

Business Drivers

• Manual process• A lot of paperwork• Time consuming to report on historical data• Accounting for charging required many corrections• Approval process slow and cumbersome• A lot of money flows thru the process • No enterprise management view• No electronic link to contractors

No. of Transactions

Transactions $

Over 2500 PO’s Over $$,$$$,$$$

Benefits

• Reduced payment cycle time

• On line real time information for better decision making

• Improved accountability

• Decentralized Contractor management for quicker and more timely business decisions

• Less need for manual phone calls and interaction resulting in more timely information sharing

• Improved historical reporting that results in better up front planning and business management

Project Schedule CCMS

Phase 1 – T&E and Hard Money April 14, 2003Phase 1 – T&E and Hard Money April 14, 2003

Phase 2 - Construction Units July, 2003Phase 2 - Construction Units July, 2003

What Modules are used

R/3R/3

FIFIFinancialFinancial

AccountingAccounting

COCOControllingControlling

AAAAAssetAsset

AccountingAccounting

PSPSProjectProjectSystemSystem

WMWMWorkWorkMgmt.Mgmt.ISIS

IndustryIndustrySolutionsSolutions

MMMMMaterialsMaterials

Mgmt.Mgmt.

HRHRHumanHuman

ResourcesResources

SDSDSales &Sales &

DistributionDistribution

CCSCCSCustomerCustomer

CareCare

QMQMQualityQuality

Manage-Manage-mentment PPPP

ProductionProductionPlanningPlanning

MMMMMaterialsMaterials

Mgmt.Mgmt.

APAPAccountsAccountsPayablePayable

Types of Transactions Enabled

Fixed Bid Field Extra Work Auth

3rd Party Materials Subsistence

Time and Equipment Construction Units

Travel time Design Completion

Business Design

• A contractor job and payment processing management system.

• It will create a centralized system for managing contractor assigned jobs and resulting payment requests.

• Handles T &E, HM and now Construction Units

Business Design

Contractor accesses system via the internetContractor accesses system via the internet

Combination of customized and standard SAP native Combination of customized and standard SAP native screensscreens

Online submittal and tracking of job and payment requests Online submittal and tracking of job and payment requests for T&E, HM & Construction Unitsfor T&E, HM & Construction Units

Automated accounting distribution and payment processingAutomated accounting distribution and payment processing

Automated\Real-time notification and approval processesAutomated\Real-time notification and approval processes

Real time reporting and data extracts of current and Real time reporting and data extracts of current and historical information historical information

Business Design

Travel time calculationTravel time calculation

Vendor receives rejection notices with textVendor receives rejection notices with text

HIGH LEVEL DESIGN

Data captureThe system will track contractor charges against various projects and jobs. The system will also track the charges against projects/jobs in Time, equipment, direct materials, and percentage completion, design completion, Construction Units. These charges are broken down into seven major areas of data capture. These include:

BUSINESS PROCESS FLOW Business Process-Overview

DPSS(INTERFA

CE)

CSS entersJob into

configurationform

Contractorenters SES for

TE or HMvia

Web(ML81N)

Job given toCA lead for

Review

CS( Multi level)approval of contractor's

service entry sheetSES Mass release

Refer WF-CCMS-001

RunSettlementprogram

Systemgenerated

Invoice

Payment Run(Batch Run)

Checkgenerated with

ref to timeentry doc

Work flow toCA for

approval

Reviewtransaction

logs

Complete Jobcompletion

form(Ifrequired)

JobPackage

(PM,DWPetc)

CSSCompletes

Jobconfiguration

Form

Job Packagegiven to

contractor &CA

CA leaddecidesTE orHard Money &contractor andinforms CSS

BUSINESS DESIGN

Job set-upJob set-up

– Construction Services Staff Configures JobConstruction Services Staff Configures Job System retrieves DPSS information (job and System retrieves DPSS information (job and

accounting information)accounting information)

Contractor creates payment requestContractor creates payment request

– Contractor enters Service Entry Sheet (SES) Contractor enters Service Entry Sheet (SES) for HM, T&E, or TP (Third Party Material), for HM, T&E, or TP (Third Party Material), Construction UnitsConstruction Units

– Accounting DerivationAccounting Derivation

Contractor submits payment requestContractor submits payment request

– Contractor releases Service Entry to SDG&EContractor releases Service Entry to SDG&E

BUSINESS DESIGN

SES approval/rejections processSES approval/rejections process

– Workflow for hierarchy of approvalsWorkflow for hierarchy of approvals

Contract Administrator (CA), CA Team Lead, Supervisor, Contract Administrator (CA), CA Team Lead, Supervisor, Manager, etcManager, etc

Summary/Detail ReportsSummary/Detail Reports

– Crew Summary ReportCrew Summary Report

– SES Summary ReportsSES Summary Reports

– SES Detail ReportsSES Detail Reports

– SES A/P Check ReportSES A/P Check Report

– SES Mass ReleaseSES Mass Release

Payment processingPayment processing

– Daily batch processDaily batch process

– Check informationCheck information

– Payment based on terms of P-OPayment based on terms of P-O

BUSINESS DESIGN

Contract Administrator fills out Job CompletionContract Administrator fills out Job Completion

MORE BUSINESS DETAIL

• The new system will provide a central data input mechanism for labor time, equipment time, direct material, subsistence rate, entering percentage completion, design completion and FEWA work. SAP standard and custom build screens will be are used during the Design and Build phases of the project implementation.

The scope includes the design of SAP standard and custom build screens to support the functionality following forms

• Job configuration for T&E

• Job Configuration Forms for hard money

• Contractor time & equipment sheet entry -T&E

MORE BUSINESS DETAIL

• The scope includes the design of SAP standard and custom build screen to support the functionality following forms

• Contractor time & equipment sheet summary-T&E

• Contractor direct pay request (material) –T&E

• Contractor direct pay request (material) sheet summary –T&E)

• Contractor time & equipment sheet entry -T&E

MORE BUSINESS DETAIL

• Contractor time & equipment sheet approval –T&E

• Contractor time & equipment sheet approval summary –T&E

• Contractor rate setup - T&E and hard money

• Contractor time sheet listing

• Percentage complete payment request form (includes Change Order) - Hard money

• Design complete request-Hard money

• Design complete approval –Hard money

• FEWA request-Hard money

• FEWA approval –Hard money

MORE BUSINESS DETAIL

• FEWA time & equipment sheet approval – Hard money

• FEWA time & equipment sheet –Hard money

• FEWA time & equipment sheet approval summary- Hard money

• Construction Units

• Travel Time Calculation

Users

• Over 100 Sempra users

•Five vendors currently on system

Types of Users

•District Operations Managers

•Planners

•Accounting Management

•Procurement

•Contract Administration

EXTERNAL SERVICES DESIGN

• Frame Work Order

• PO with Item Category “D” for Services

• With Value Limits

• Accounts Assignment “U” Unknown

• Electronic Receipt Settlement

• Service Masters

• Contract Service (T&E)

• Contract Service (FB)

• Contract Service (CU)

• PO Series _59 for T.E.

• Service Entry Sheet

• SESMR

• Custom Job Config. Screens

EXTERNAL SERVICES DESIGNREPORTS• BW Reports

• Most Operational – real time

• Vendor related

• Jobs

• Open SES

• Contract administrator related

• Some reports non - operational

• Accounting related

• Business Control related

• Procurement – rates

• Quick viewers

• Vendor check report

INTERFACE

• Nightly Batch Interface from Work Management System to SAP

• Brings over Job Header information

• Account derivation program identities proper charging accounts based on crew type, job type etc.

• Until Translator Interface that bring over Construction Units

• Data brought over from the interface is used for Job Configuration and eventually during Service Entry Sheet

INFRASTRUCTURE

• SAP R/3 4.6C

• SAP External Services

• SAP Accounts Payable

• SAP Internet Transaction Server 6.1

• Digital Certificates Version XXX SAP

• Internet Explorer 5.0 and above

• Interface to Work Management System

Key Functionality

Functionality SAP

Third Party Materials Yes

Fixed Bid Yes

Time and Equipment Yes

Interface to non SAP planning System

Yes

Purchase Order Creation Yes

Service Catalog Yes

Key Functionality

Functionality SAP

External Services Module

Yes

Service Masters Yes

Model Service Specs Yes

New PO Doc Type Yes Type “D” Service

Service Conditions Yes

Approvals Yes Five Levels

Service Entry Mass Release

Yes

Key Functionality

Functionality SAP

Quick View for reports Yes

Z tables Yes

Custom Screens Yes

Use of colors for type of entry logics

Yes 3rd party materials, labor, Subsistence

Accounting derivation logic

Travel derivation logic

Key Functionality

Functionality SAP

ITS Server Yes

SEMPRA SYSTEM- BUS. TO SYS. MAPPING

SAP Module Business Process ZScreen SAP Functions SAP Transactions Materials Management Maintain Contractor data Vendor master XK01, XK02, XK03 Creation of T&E PO, Fixed bid and Hard

money purchase order with % completion billing

Job Configuration Form Purchase order ME21N, ME22N

FEWA request & approval Purchase order ME21N

Maintain Labor data Service master AC01 Maintain Equipment data Service master AC01 Service rate setup / change Service conditions ML33, ML34 FEWA time sheet to Confirm labor,

equipment, material Service entry sheet ML81N

Percentage complete request(includes Change Order, direct pay request

Service entry sheet ML81N

Approve FEWA timesheets Service entry sheet release

ML81N

Approve T&E time sheet, Approve percentage complete request, Approve Design Complete

Service entry sheet release

ML81N ZCCMS_SESMR

Financial Accounting & Controlling ERS Evaluated receipt

Settlement MRRL

Transfer of cost to internal orders Order settlement KO8G Business Workflow Via SAP Inbox contractors with job details Workflow for

notification of job SAP inbox

contract administrator to approve T&E, FEWA Time sheet, design completion

Workflow to approve SAP Inbox

Contractor to update the price for direct materials

Work flow for approval

SAP inbox l

C contractor for rejection of time sheet Work flow for approval

SAP inbox

Contract administrator to approve % completion

Workflow for approval

SAP inbox

CSS after price update for direct material.

Workflow for approval of Service entry sheet

SAP Inbox

Reports Job Summary, check report, SESMR,

Approval, job history

SEMPRA SYSTEM

Job Config. Uses the creation of data captured from the Work Management System interface to capture job information

Ability to create a PO that matches expense type for T & E

SEMPRA SYSTEM

Service Entry Sheet has data related to Job Configuration for reference to PO

Service Masters for labor and equipments

SEMPRA SYSTEM

Reports provide information to contractors

SEMPRA SYSTEM

Summary reports for of dollars and vendors

SEMPRA SYSTEM

Labor and Equipment are managed by SES

Third Party materials are handled by first .01cent for requesting Materials, and then submitted later for approval at

actual price

SEMPRA SYSTEM

SEMPRA SYSTEM

Account assignment

SEMPRA SYSTEM

Document and posting dates captured

Street Lights identify status of SES release state – awaiting approval

SEMPRA SYSTEM

Value of SES

Handling of Planned and un planned work activity

SEMPRA SYSTEM

SES had Long Text data capture for reporting on Job Work explanation

Conditions are also being implemented processing discounts

SEMPRA SYSTEM

Tracking of SES changes

SEMPRA SYSTEM

Job information is captured

Vendor can reference and create SES from PO and Job ID data create as part of Job Config.

SEMPRA SYSTEM

Job and Contractor reports are available

SEMPRA SYSTEM

T & E work easily found via seach

SEMPRA SYSTEM

Service Selection for Model Service Specs

Can put into SES data from PO as well

SEMPRA SYSTEM

SESMR is the main stay for approving SES

SEMPRA SYSTEM

SEMPRA SYSTEM

SAP Release Code Strategy CO is used for a hierarchical approval process

SEMPRA SYSTEM

SEMPRA SYSTEM

Release Codes process

Co to C5

CO is contractor

SEMPRA SYSTEM

Release status and release level

SEMPRA SYSTEM

SEMPRA SYSTEM

SEMPRA SYSTEM

Release Status

SEMPRA SYSTEM

Additional data tap with Job Info

SEMPRA SYSTEM

More status on job via SES and PO

SEMPRA SYSTEM

Payment

SEMPRA SYSTEM

Release codes

SEMPRA SYSTEM

SEMPRA SYSTEM

SEMPRA SYSTEM

SEMPRA SYSTEM

SEMPRA SYSTEM

More additional job data

Future

• Use Classifications• More Service Conditions -• Another Business Unit Roll out• More Vendors• More workflow• More Reports

Questions

How to contact me

Andy DuranSempra EnergySAP Project ManagerAduran@semprautilities.com