edocuments Exchange in Purchasing-Sales Process Between Microsoft Business Solutions-Navision and SAP R/3 Andrej Valjavec, dipl. org.

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1 edocuments Exchange in Purchasing-Sales Process Between Microsoft Business Solutions-Navision and SAP R/3 Andrej Valjavec, dipl. org. Ljubljanske mlekarne d.d. Abstract The graduate work presents possibilities for electronic data exchange in sales and purchasing processes between two different ERP systems, SAP R/3 and Microsoft Business Solutions Navision. The work describes theoretical basis and demands for electronic data exchange and presents possibilities for data exchange in small and mid size companies offered by new technologies, XML based documents and Internet. The developed prototype, which uses Microsoft BizTalk server for interconnection of both systems, forming and validating inbound and outbound documents and documents transformations from IDoc format to XML format, is also described in details. Finally some findings and recommendations are given for practical implementations. Key words: Electronic Commerce, e-document, SAP, Microsoft Business Solutions Navision, Microsoft BizTalk Server, DCOM Connector, Navision Commerce Gateway, XML, prototype Preface Companies today are faced with strong international competition. Therefore they must increase their competitive position all the time. One of the most successful ways to reduce cost is optimization of internal business processes. With optimization, better flow of information between processes and shorter processing time are achieved. The next logical step in cost reduction is connecting business processes between two different companies business partners. Typically, output from a process in one company is in the same time input to the process in the partner s organization. These processes outputs and inputs are usually called business documents which are traditionally in paper form and are exchanged by mail, fax and lately also by . With implementation of electronic document interchange (EDI), paper-based documents are swapped with e-documents and data on these documents are automatically entered in the software program that supports individual business process. The main problem in electronic data interchange is a fact that business partners use different software programs with different data formats. Business partners should therefore first agree for unique format of e-documents. In the past, a few EDI standards (X12, EDIFACT...) were established for electronic data interchange. These old standards are quite complicated and expensive for implementation and usage. These are the reasons why EDI implementations exist mostly in large companies. Due to positive experiences and cost reductions in large companies, smaller companies are also forced into electronic data interchange. A need for a simpler and cheaper standard has arisen. Internet and XML (Extensible Markup Language) have offered new possibilities for simple and more adaptable way of exchanging different e-documents. XML specification was worldwide accepted by all IT companies. XML is simple way to delimit data and present this data in structured format which is easy readable for people and for computers. Standardized programming interface enables developers to easy create different programs that read and write XML documents. These all are the reasons why many connectors for different ERP systems exist today for exporting and importing data in XML format. BizTalk Framework and Microsoft BizTalk Server One of the first bigger software vendors who saw advantage of XML language was Microsoft. In June 1999, Microsoft and Organization for the Advancement of Structured Information Standards OASIS established a web site which was intended as repository for XML information and recommendations. In the same year, Microsoft has announced first draft BizTalk Framework specification. The BizTalk Framework (Enabling software to speak the language of business) is an XML framework for application integration and electronic commerce. It includes a design framework for implementing an XML schema and a set of XML 1

2 tags used in messages sent between applications. The goal of the BizTalk Framework is to accelerate the rapid adoption of XML. Current BizTalk Framework specification 2.0 consists of: BizTalk document structure specification BizTalk document body structure specification BizTalk document header specification BizTalk document structure specification Reliable delivery of BizTalk Documents BizTalk documents with attachments Securing BizTalk documents and messages Transport bindings In 2000, Microsoft has released BizTalk Server 2000 that provides a set of business documents and server management tools for the exchange of business documents. BizTalk Server uses XML language to integrate applications and data across standards and document formats both within- and across organizations. Tools in BizTalk Server enable fast and easy integration almost without manual programming. SAP R/3 SAP R/3 is ERP (Enterprise Resource Planning) solution intended mostly for large enterprises. The solution consists of different modules that cover individual business processes within an organization. SAP offers several different possibilities for connecting and exchanging data between SAP and other software applications within and across organizations. SAP uses an IDoc (intermediate document) document as a SAP standard format for data exchange between different systems. Figure 1: Role of the IDoc document Several connectors exist for SAP system that enable importing and exporting data from and to SAP system. The most used connectors are: SAP DCOM connector that enables SAP integration with software solution based on Microsoft platforms. This connector uses Microsoft Distributed Component Object Model technology. SAP JAVA connector that is intended for communication between SAP system and JAVA based software solutions. SAP.NET connector that is developed for interconnections with new Microsoft technology.net. SAP Business Connector that is intended for integrations with different business processes using internet platform. 2

3 Microsoft BizTalk Adapter for SAP Microsoft BizTalk Adapter for SAP is a software interface for connecting SAP with Microsoft BizTalk Server. It enables IDoc documents exchange with BizTalk Server and also contains tools for developers and systems administrators that enable converting IDoc document to XML document and inversely. BizTalk Adapter for SAP works together with SAP DCOM connector. Figure 2 represents sending and receiving IDoc using DCOM connector and BizTalk Adapter for SAP. Business process in SAP system creates business document (1) that is represented as IDoc. DCOM connector receives IDoc and sends it to BizTalk Adapter (2), where IDoc is converted to delimited data stream (4) using IDoc handler (3). Delimited data stream is sent to Microsoft Message Queue (MSMQ) that enables asynchronous communication between SAP system and BizTalk Server. BizTalk server receives delimited data flow (6) and converts it to XML document using suitable XML schema. BizTalk Server uses mapping schema to map received input document to requested output document. Receiving IDoc to SAP system uses the inverse process. Figure 2: Sending and receiving e-documents using BizTalk Adapter for SAP Microsoft Business Solutions Navision Microsoft Business Solutions Navision (Navision) is also ERP solution intended for small and mid size companies. The core of Navision solution is strong financials accounting module, different business processes are covered with additional modules that might be added to the core module. Navision has also possibilities for exporting and importing data. Due to a fact that Navision is mostly intended for organizations situated on a single location, data exporting and importing in the past was limited to applications in the local area network. Lately, Navision has also developed possibilities for exporting and importing data using XML standards and internet. Adapter that is intended to integrate Navision with Microsoft BizTalk server is called Commerce 3

4 Gateway. Commerce Gateway allows truly integration of these two products that which enables fast implementation, easy administration and simple usage. Most of the administrative tasks are done within Navision that reduces needs for BizTalk Server expert later, in the production period. The prototype I developed a working prototype with the aim to show practical exchange of e-documents that are used in purchasing and sales processes between organizations. In the prototype, previously described ERP systems and technology are used. The prototype was developed on the servers of the ecommerce center, Faculty of Organizational Sciences University of Maribor. The purchasing process in the prototype solution runs at the organization called IDE Germany that is a part of demo data in the SAP R/3 system. The sales process runs at the organization called DOBAVITELJ (VENDOR) that is a part of demo data in the Microsoft Business Solutions Navision. The prototype solution is reduced to the exchange of two pairs of business documents: sending Purchase Order and receiving Sales Order, and sending Sales Invoice and receiving Purchase Invoice (shown in figure 3). Picture 3: edocuments exchange in the prototype solution Implementation of the prototype solution At the SAP side, I have used DCOM Connector and BizTalk adapter for SAP. After installation of software products, the main setup has to be done within SAP system where the partner profile should be setup. This setup instructs SAP system to create IDoc document when specific business process for specific partner is finished and sends this IDoc to appropriate port where DCOM connector receives it. After Commerce Gateway installation, a setup at Navision is done according to the business partner and documents that are going to be included in the exchange. After completed settings, the user of Navision solution has possibilities to send business documents using Commerce Gateway and BizTalk Server directly to the business partner. The main part of implementation is BizTalk Server setup. On the BizTalk Server several elements should be setup: Documents: for each different inbound and outbound e-document BizTalk server needs to have suitable XML schema that is used for e-document validation. 4

5 Mapping schemas: business software applications use different data formats and one of the most important jobs for BizTalk Server is converting inbound document format to data format which is requested by the receiving application. The conversion is done according to the mapping schemas. Messaging ports instruct BizTalk Server how to receive and how to read inbound document. Channels instruct BizTalk Server how to process e-document inside server and where to send outbound document. Figure 4: Mapping schema creation using BizTalk Mapper Conclusion Electronic data exchange becomes unavoidable in costs reductions. Due to large amounts of business documents, larger organizations can still afford implementations of old EDI standards that are for sure reliable and efficient. On the other hand, the amount of e-documents in smaller organization is too low for such expensive implementations. Smaller organizations also don t have experience and knowledge and they are therefore afraid of new systems. New technologies reduce costs of e-commerce implementation and make e-commerce simpler. The prototype solution shows that implementation of electronic data exchange between two business partners is feasible in a few days using new technologies. When company successfully implements electronic data exchange with one partner the same kind of cooperation with the other partners is only one step away without large additional costs. Literature and sources [1] BizTalk Framework, 2002, [2] BizTalk Framework 2.0: Document and Message Specification, 2000, [3] Blain J.: Using SAP R/3, Que Corporation

6 [4] Brown M., DeBroux R., Deveaux J., Goodwin D., Hallows J., Phillips S., Randall C., Vidican S.: BizTalk Server 2000, Microsoft Press 2001 [5] Center Vlade RS za informatiko: Pravna ureditev elektronskega poslovanja, Organizacija, marec 2000, str [6] Commerce Gateway, Navision a/s 2002 [7] Gricar J., Piskar S.: Sistemski inženiring, Moderna organizacija 1988 [8] Gricar J., Pucihar A.: Izraba informacijske tehnologije za elektronsko poslovanje: ugotovitve direktorjev informatike, Organizacija, marec 2000, str [9] [10] [11] Jordan S., Podlogar M.: Povezovanje programov SAP R/3 in Microsoft BizTalk, Organizacija, september 2002, str [12] Podlogar M., Gricar P.: Uporaba programa SAP v celovitem poslovnem informacijskem sistemu: Proces oskrbovanja, Založba Moderna organizacija 2003 [13] Ritonja B., Pušnik M., Šumak B, BizTalk, seminarska naloga, 2002, [14] Rebstock M., Hildebrand K.: SAP R/3 Management, Coriolis Group 1999 [15] Weisman J.: The Making of E-Commerce: 10 Key Moments, 2000, [16] Wilson K.: SAP Connectors, 2002, 6