Note - What Are the Different SAP Ariba Solutions Part 3 is the 3rd part of this series In this blog, I hae explained What is SAP Ariba Buying and Invoicing - its purpose, need, key features, uses, and much more.
Before diving into this topic, please refer to “What Are the Different SAP Ariba Solutions? Part 2” for better clarity and understanding, as each Ariba solution is closely connected to the others.

What is Ariba Buying and Invoicing (B&I)

Ariba Buying and Invoicing Flagship Solution of SAP Ariba Comes under downstream and mainly user for Indirect Procurment. Indirect procurment means the process of purchasing goods and services that support a company’s daily operations but are not directly used in the final product or core service e.g Office supplies,IT-related services,Facilities management etc. With the help of this solution we can move our whole end to end indirect procurment to cloud.

What is SAP Business Network ?

SAP Business Network’s Buyer and Supplier portals play a crucial role in Ariba Buying and Invoicing, as well as in overall procurement.
SAP Business Network is a digital platform where buyers and suppliers connect, collaborate, and conduct business online. The Buyer Network allows organizations to manage procurement, sourcing, orders, and invoices efficiently. The Supplier Network enables suppliers to receive orders, submit invoices, participate in auctions, and manage catalogs. Both networks streamline communication, reduce manual work, and improve transparency between trading partners. Together, they create a seamless, end-to-end procurement ecosystem.

Ariba Buying and Invoicing Architecture

Note – Yellow Block means Starting Point

• The starting point of Ariba Buying and Invoicing is Ariba itself. First, we create a Purchase Requisition. When you click on Submit, Ariba B&I will check whether the budget is available in S/4HANA. At this point, the RequisitionBudgetCheckExportRequest service is triggered in CIG. It will validate whether sufficient budget is available. If the budget is sufficient, then the RequisitionReal-TimeBudgetExportRequest service is triggered from S/4HANA to CIG, and then to Ariba, after which your PR will be successfully submitted. A copy of the PR is also sent to S/4HANA.

• After submitting the PR, it must go through the approval flow. Once the PR is approved, the PurchaseOrderExport service is automatically triggered in CIG from Ariba. It then reaches S/4HANA, and the PO is created in S/4.The same PO is then sent back to Ariba, and the PurchaseOrderAsyncImportPullRequest service is triggered in CIG. When PO is created, it is also sent to the Buyer and Supplier Network

• Once the PO is received on the Supplier Portal, the supplier confirms the Purchase Order. After the confirmation, the buyer receives the Order Confirmation on the Buyer Network as well as in Ariba B&I. This Order Confirmation is also sent to S/4HANA. In this process, the OrderConfirmationApprovalRequest service is triggered in CIG, and then the Order Confirmation is sent to S/4HANA.

• Next step will also be performed by the supplier. After confirming the order, the supplier will create a Ship Notice in the Supplier Portal. This Ship Notice will be sent to the Buyer Network and Ariba B&I. This Ship Notice data must also be available in S/4HANA, which is why the ShipNoticeRequest service is triggered in CIG, and then the Ship Notice is sent to S/4HANA.

• Now in Ariba B&I, the buyer receives the Ship Notice, which means the goods have been delivered. The buyer will then create a Goods Receipt against the Ship Notice. This Goods Receipt will be sent to the Supplier and the Buyer Network respectively. The ReceiptExportRequest service is also triggered in CIG and the Goods Receipt is sent to S/4HANA.

• Now the supplier will create an Invoice against the Goods Receipt, and the Invoice will be sent to Ariba B&I for approval. The InvoiceDetailRequest service is triggered in CIG, and the Invoice is then sent to S/4HANA for posting.

• Once the Invoice is approved and posted in S/4HANA, the buyer is ready to settle the payment against the invoice. The payment is executed from S/4HANA, and the PaymentExportRequest service is triggered in CIG. After that, the supplier receives the payment. Note: In the Ariba B&I solution, payments can only be processed from the ERP system. Ariba does not have this payment execution capability as of now.