Why Extended Classic Scenario

[Former Member]

Hello

I understand the difference between Extended Classic and Classic Scenario with the follow on document creation. But, I need to understand the business benifits of implementing Extended Classic Scenario as opposed to Classic Scenario in SRM. In what business scenario do one suggest Extended Classic.

Appreciate every answer

Thanks

Vijay

[Former Member]

Hi Vijay,

The most important thing to consider when choosing the implementation scenario is to consider which system will support the different steps of the procurement process.

In case of the classic scenario, after creation of the request (shopping cart) in SRM, the remaining process steps will be handled / supported in the back-end system (ECC). Goods receipt can be executed in both systems. This would be a good choice if the organization has already an operational back-end system and the users from the purchasing department are already familiar (and happy) with all the MM functionality. SRM will only function as a support tool for administrating the purchasing needs of the end-users in the organization.

In case of the extended-classic implementation scenario the complete purchasing process will be supported in the SRM system (most organizations prefer to use the back-end system for invoice verification). Thus requesters, purchasers, goods recipients etc. all will use the SRM system to support their respective activities. This would be the preferred scenario in case both MM (ECC) and SRM are new to the organisation and will be implemented together.

SRM offers the different users a nicer user interface as opposed to the R/3 screens. Also the (strategic) sourcing capabilities of SRM can only be used when implementing the extended classic scenario. Same for the Suplier Enablement business scenariou2019s. Most are only supported when extended classic is active.

So depending on the intentions of the organization a choice can be made. SRM only as a tool for administrating the decentralized request from the end users in the organization: Classic scenario will suffice. SRM as a tool to support the complete purchasing process, from sourcing till evaluation - Extended classic will be the correct choice.

Regards,

Skander

[Former Member]

Thanks Skander! Very nice explanation.

As you said strategic sourcing is only possible with extended classic scenario, I am not sure if that is fully true. I think we can still have restricted bidding in classic scenario, please correct me if I am wrong.

Also, could you please tell me as to which scenario would be best suited for direct materials and why?

Thanks Again

Vijay

[Former Member]

Hi,

If you mean the plan-driven procurement scenario for ordering direct materials then Extended classic is the only option. Requirements from the back-end (MRP u2013 PM - PS) are transferred from ECC to the sourcing cockpit in SRM. After processing the request, a PO needs to be created in SRM. Goods receipt can take place in both systems. After GR inventory quantity will be augmented in ECC.

However, you can also order direct materials from the u2018internal goods/servicesu2019 application (by using button on basic data tab: u2018order as direct materialu2019). Also in this case it only makes sense to use this in case of Extended classic implementation scenario. However, you can use it for stock items replicated to SRM in case of Classic scenario.

When not using the ECS, why would u bother handling the requirements for direct materials in SRM?

In case of classic scenario I am not sure of u can use the bidding engine. Winning bids should be transferred into contracts or purchase orders in the SRM systemu2026u2026 Thus this would imply ECS as a implementation scenariou2026. And if you are going to use the Bidding engine, why not completely transfer the tactical purchasing process to SRM. From a business perspective I would like to operate as much as possible in only 1 systemu2026.. Why should the PO be created and send in ECC?

From my perspective when using the strategic sourcing capabilities from SRM use ECS.

For items subjected to inventory management, which are processed in the sourcing cockpit, a reservation can be created in the back-end. You will probably need to implement the designated Badi in order to accomplish thisu2026. But I am not sure of this.

Kind Regards,

Skander

[Former Member]

Hi Skander, Vijay,

I have received information that as of SRM7 Bidding is available in both Classic and Extended Classic. The same goes for transferring external requirements to SRM (Plan-Driven Procurement).

However, I have the same concerns as to whether it is in fact possible to create the leading PO in the backend from a Bid, this does not feel right. My customer has this requirement, the process being project orientated procurement in the backend where bids are required for all requisitions over a certain amount. The resulting PO's must be able to be changed in the backend as they use Expiditing as well.

Just another note regarding Extended Classic and SUS. There is a limitation to this scenario in that SUS only supports the PO in ECS. Follow-on docs such as confirmations and invoices are not possible in SUS with ECS.

Regards,

Monica