SAP for Engineering, Construction & Operations

Bill of Services
Overview
SAP AG
IBU Machinery, Engineering & Construction
 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 2

 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 3

 Introduction - Construction Process Criteria

Construction projects . . .

. . . typically provide complex services to construct a

structure or facility
. . . are highly unique since they are based on individual
customer requirements and designs
. . . are usually long-term, up to several years in duration
. . . are subject to numerous significant changes during
execution
. . . are carried out decentralized away from a permanent
office with limited telecommunication infrastructure

 SAP AG 2002, Title of Presentation, Speaker Name 4

 Introduction - How Services are described ?

Bill of Service . . .
. . . a Bill of Services (BOS) services to be performed
(construction work or project services).

. . . Bill of Services are also referred to as Bill of Quantities,

Service Specification or Service Schedule.

. . . SAP delivers a fully integrated solution of Bill of Services in

Sales and Purchasing Processes:
ƒ Interface for creating and changing Bill of Services

ƒ Costing of Bill of Services

ƒ Sales order processing as unit price contract and lump sum contract

ƒ Decentralized creation of quantity take off on the construction site

also via Web

ƒ Integration in Billing Process

 SAP AG 2002, Title of Presentation, Speaker Name 5

 Roles in Construction Industry Scenario

Project Project Collobaration of Contract

Development Bids/Proposal/Contacts Project Planning Management

Customer
Customer The customer will
order a construction
of a building.

Contractor
Project
Estimator Manager The contractor will
calculate and bid for
Sales this order, plan the
Representant Accountant construction project
and execute the
Controller construction.
Purchaser

Subcontractor Sub- Services for the

contractor construction project will
be assigned to a
subcontractor.

 SAP AG 2002, Title of Presentation, Speaker Name 6

 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 7

 Bill of Services Structure

BOS
01
01.1.1.70 Service Index
01.1
100 Quantity
01.1.1
m2 Unit of Measure
01.1.2
Laying cables Description
01.1.3
15.20 Unit Price
01.2
01.2.1
01.3
01.3.1 Estimator Subcontractor
01.3.2
02
02.1

 SAP AG 2002, Title of Presentation, Speaker Name 8

 Bill of Services - Example

 SAP AG 2002, Title of Presentation, Speaker Name 9

 Bill of Services – Service Description (I)

„Basic Data
BOS
„qualitative and 01
quantitative description Line Description
01.1
70 Laying cables
01.1.1
„Detail Data Service No. Quantity Unit
„ line types C1000040100 100 m2
„ alternatives
Basic Data Statistic User-def. Formula Line Types
„ user-defined fields
Line Types Alternatives

„Service Master Normal line No alternatives

Basic line
Blanket line
Alternative line
„master data for services Contingency line
For line
„ description Open quantity
Informatory line Line Categories
„ long text
Internal line No line category
„ price ... Bidder‘s line
Supplementary line

 SAP AG 2002, Title of Presentation, Speaker Name 10

 Bill of Services – Service Description (II)

BOS
„ Line Long Text
01
„ detailed communication
with the customer 01.1
„ available in print forms 01.1.1
and interfaces

Line Description
„ Service Long Text 70 Laying cables
„ inherited from the Service No. Quantity Unit
service master
C1000040100 100 m2
„ internal communication
purposes

 SAP AG 2002, Title of Presentation, Speaker Name 11

 Bill of Services – Creation and Data Exchange

Within SAP R/3 System BOS

BOS 01
01 01.1
Copy from model specification
01.1 01.1.1
Copy from other sales document
01.1.1 01.1.2
Create manually
01.1.2 01.1.3
01.2
From external systems 01.2.1
01.3
...other local UK
standards standard Converter 01.3.1
Austrian GAEB
(third party) 01.3.2
standard
BAPIs 02
External Internet 02.1
Software Interface
Integration
Marketplaces
 SAP AG 2002, Title of Presentation, Speaker Name 12
 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 13

 Business Example

Bid Invitation Quotat.

Customer Check/
Negotiation
Order Placement

Inquiry Quotat. Order

Sales
Represen-
tant

Quotat.
Cost Estimation Price Determination
Estimator

PR Quotat
Quotat. .
Price Inquiry for Price
Purchaser Subcontractors/
SC- SC-
BOS BOS Comparison
Suppliers

Inquiry Quotat.
Sub- RFQSC- Quotat.
contractor SC- BOS SC-
BOS BOS

 SAP AG 2002, Title of Presentation, Speaker Name 14

 Cost Estimation

Hide/Display Item View

Estimator
BOS Costing Structure
Planning Form
Outline level (Costing Model)
Task Service Line 1
Costing node 1.1
Determine the
planned costs for the Costing node 1.2
BOS Service line 2
Solution Costing Item View
Work List
Using the costing tool Planning forms
Easy Cost Planning
Benefit Service Line
Enter costing items 01.1.1.70 100 m2 Laying cables
by using planning
forms Costing Items Costs
Set additions and
Qty BUn Resource Base A/D A/D Basic
deductions
100 m2 10 A Cable 300 € -2% -3% 285 €
18 Hour Lay Work 50 € -10% 45 €

 SAP AG 2002, Title of Presentation, Speaker Name 15

 Bill of Services: Costing Process (I)

„ … Based on manual Estimation

„ ... Based on Costing Models

Customer / User specific Templates

Generates the cost estimation

Language of the Industry

Transportable

Supports different Languages

URL‘s

Complete Browser Functionality

Insert Drawings and Documentation

 SAP AG 2002, Title of Presentation, Speaker Name 16

 Bill of Services: Costing Process (III)

Estimator

 SAP AG 2002, Title of Presentation, Speaker Name 17

 Price Determination

Sales
Represen-
BOS
tant Pricing Procedure
01
Task
01.1
Determine the sales
prices in sales 01.1.1 Pricing
quotation and sales Procedure
order Service Line Wage costs
Solution 01.1.1.70 100 m2 Laying cables
Material costs
Cost component split UP: 3.60 €
Price determination Conditions
by using the condition
Unit price
technique
Costing Items
Benefit
Qty Unit Resource Basic Costs Cost
Set price surcharge component
and discounts for 100 m2 10 A Cable 285 €
split
individually service 18 Hour Lay Work 45 €
lines or outline levels

 SAP AG 2002, Title of Presentation, Speaker Name 18

 Inquiry for Subcontractor Services

Estimator Sales Quotation

BOS
Task
01 Line Description Quantity Unit
Ask for prices for
01.1 70 Drainage layer 100 m2
external services
Subcontractor Group
Solution 01.1.1
003 (Earthworks)
Mark service lines as
external services by
using SC groups in Purchase Requisition
sales quotation Editor (Reconciliation tool)
Service Selection to Quotation Purchase Requisition
purchase requisition
Benefit 70 003 70 003
Relation between the
80 004 90 003
services in sales and
purchasing documents 90 003

Service Selection
 SAP AG 2002, Title of Presentation, Speaker Name 19
 Bid Estimation: Purchase Requisition

Purchaser

Task
Create request for
quotation for several
subcontructors
Solution
Copy external
activities to a
subcontractor BOS
via reconciliation tool
Benefit
Control the complete
process of bid
invitation, award, and
acceptance

 SAP AG 2002, Title of Presentation, Speaker Name 20

 Compare Subcontractor Quotations

Purchaser
RFQ
SUB
PR BOS

Task
SUB
BOS
RFQ
SUB
Subcontractors
BOS
RFQ
Compare prices in SUB
BOS

different
subcontractor
quotations
Solution
Quotation
Use price comparison SUB
BOS
Quotation
SUB
BOS
Benefit Quotation
SUB
Quotation
BOS SUB
BOS
Control the Quotation Quotation
SUB
SUB
purchasing process in BOS
BOS

order to award the

external services

 SAP AG 2002, Title of Presentation, Speaker Name 21

 Transfer Prices from Subcontractor Services

Estimator
Purchase Quotation
Quotation SUB
BOS

Task
Transfer prices from Drainage layer 70 €
subcontractor Potential runner 80 €
quotations to sales
quotation or order Sales Quotation
Solution BOS
Use price transfer via 01
copying rules for
01.1
conditions
Benefit
01.1.1

Overall integration Line Description SC Group Price

70 Drainage layer 003 70 €
80 Concrete flooring 004
90 Potential runner 003 80 €

 SAP AG 2002, Title of Presentation, Speaker Name 22

 Cost Transfer to Project Planning

Estimator
BOS Project
01
Ground floor
Task 01.1
01.1.1 ... Electrical Work ...
Control the actual
costs 70 Laying cables ...
Solution
Transfer the planned
costs for services to a
Navigation Area BOS Costing Structure Project Costing Structure
project
Project Outline Level WBS-Element 1
Benefit WBS element Service line 1 WBS-Element 1
Project version Costing item 1.1 Costing item 1.1
Forward costing items Costing item 1.2 WBS-Element 2
from Easy Cost Service line 2 Costing item 2.1
Costing item 2.2
Planning to purchase Service line 3
Costing item 3.1

Selection Area Costing Item View for Quantity Transfer

Selection variants

 SAP AG 2002, Title of Presentation, Speaker Name 23

 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 24

 Process Flow: Unit Price Contract

Site Planning & Project Management & Punch List & Commisioning, Startup &
Scheduling Execution Warranty Handover

DP Payment Debit Payment

Customer Request Check/ Memo
for DP request Check/ for Debit Memo
BOS Approve BOS
Approve

$ $

DP Incoming Settlement of Debit Incoming

Accountant Request down payment Memo
payment for payment for
BOS against claim BOS
DP request Debit Memo

Project S. Entry
Periodic recording
S. Entry
of progress for customer
Manager Sheet Sheet

Controller
$ $ $ $

Site Execution / Settlement

 SAP AG 2002, Title of Presentation, Speaker Name 25

 Process Flow: Lump-sum contract

Site Planning & Project Management & Punch List & Commisioning, Startup &
Scheduling Execution Warranty Handover

DP Invoice
Customer Request Payment Payment
Check/
for DP request Check/ for Invoice
BOS Approve BOS
Approve

$ $

DP Incoming Invoice Incoming

Accountant Request Clearing of
payment for down payment payment for
BOS BOS
DP request Invoice

Project Order Order

Manager BOS
Billing BOS
Billing
plan plan

Controller
$ $ $ $

Site Execution / Settlement

 SAP AG 2002, Title of Presentation, Speaker Name 26

 Overview – Unit Price Contract

BOS
01.1.1.20 Service Index
01
200 Quantity
01.1
m2 Unit of Measure
01.1.1
Drainage Layer Description of the Service
01.1.2
$47 Unit Price
01.1.3
$9400 Value

Unit Price
ƒ Determined by a cost estimation: manual or from a subcontractor
ƒ Basis for planning process
ƒ Valuation of the work performed

 SAP AG 2002, Title of Presentation, Speaker Name 27

 Quantity Take-Off

Enter planned and

Quantity
Project
Take Off 2
Manager Order with Quantity Quantity
BOS Take-Off 1 Take-Off 2
Task unplanned services
Enters the services
performed
Line Description Quantity Unit
10 Protection Layer 100 m2
Solution
20 Drainage Layer 200 m2
Quantity take-off -
confirmation of planned
and unplanned services
Benefit / Purpose

ƒ Verification of the services performed

ƒ Basis for the billing process
ƒ Attachment to the down payment request or
invoice document

 SAP AG 2002, Title of Presentation, Speaker Name 28

 Quantity Take Off

Project
Manager

Task
Enter the services
performed and work
with planned and
unplanned services
Solution
Service Entry Sheets,
Combining statistical
information in the sales
order and the service
entry sheet
Benefit
Determine the services
performed to date as
well as their quantity

 SAP AG 2002, Title of Presentation, Speaker Name 29

 Quantity Take Off via Web

 SAP AG 2002, Title of Presentation, Speaker Name 30

 Billing Process

Different projects executed at the same time

Accountant

Take-Off Take-Off
Project 1 Project 3
Task Take-Off
Project 2
Creation of down
payment requests
and invoices from
quantity take-offs
Solution
Billing date from to
Billing due list
Benefit Billing document from to
Handling the billing
of contracts Billing type (FAZS / L2)
according to
construction
industry standards
Data selection and collective billing

 SAP AG 2002, Title of Presentation, Speaker Name 31

 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 32

 Summary

„ SAP delivers a fully integrated solution

for Construction:
ƒ Interfaces for efficient collobaration
ƒ Support for the entire life cycle
ƒ The complete integration of the Bill of
Services in Sales and Purchasing Processes
ƒ Cost Estimation
ƒ Sales order processing as unit price contract
and lump sum contract
ƒ Decentralized creation of quantity take off on
the construction site also via Web
ƒ Integration in Billing Process

 SAP AG 2002, Title of Presentation, Speaker Name 33

 Agenda

Introduction

Master Data and Data Exchange

Quotation Process

Contract Types and Process

Summary

Appendix

 SAP AG 2002, Title of Presentation, Speaker Name 34

 Document Flow

Project Document Status

Manager
Inquiry Completed
Quotation Completed
Order Open
Quantity Take-Off Completed
Task
Down Payment Request Completed
Evaluates the project
Accounting Document Cleared
progress and has an
overview on the Debit Memo Completed
project status Accounting Document Not Cleared
Solution
Document flow
Benefit
Overview of all
subsequent
documents

 SAP AG 2002, Title of Presentation, Speaker Name 35

 Interfaces Bill of Services (I)
Customer /
General
Contractor

Customer / Quotation
General Order Billing doc.
Doc.type OBOS ServEntrSheet
Contractor Billing type L2, F1,
Item 10 Doc.type QBOS Doc.type TBOS Pos 10 HausF2
Item 10 Item 10
BOS Item 10 Building
LV
Inquiry BOS
BOS

Doc.type IBOS
Item 20
Item 10
Quotation BOS
BOS
Doc.type OBLS Order
Billing doc.
Item 10 Doc.type QBLS
Billing type F1,
BOS Item 10 Pos 10 HausF2
Item 10
BOS
LV
BOS

Customer /
General
Contractor

Typical processing of a Sales Order requires Interfaces at various points in time

 SAP AG 2002, Title of Presentation, Speaker Name 36

 Interfaces Bill of Services (II)

Customer
Sales order
inquiry
(electronic)
(electronic)

Inquiry Quotation Order Serv.Entr.Sheet

Billing Doc.
Item 10 Building Item 10 Building Item 10 Building Item 10 Building
Item 10 Building
500.00 500.00
BOS
BOS BOS BOS

Item 20 Building
BOS

External External
costing Internet program
program
Service Entry Sheet

 SAP AG 2002, Title of Presentation, Speaker Name 37