Basics Of Procurement Process

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Information about Basics Of Procurement Process
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Published on September 23, 2009

Author: vrs4u

Source: slideshare.net

BASICS OF PROCUREMENT PROCESS IN SAP Materials can be procured in any company from external vendors or from other branches of the company itself. Purchasing, warehousing and invoice verification departments are involved in procurement process. Vedula Rameswara Sharma www.consult4scm.blogspot.com

SAP Procurement process Determination of requirement (purchase requisition – PR or Materials requirement planning MRP) Determination of source of supply (Request for quotation – RFQ) Vendor selection ( Quotations – compare, accept or reject) Purchase order - Manual or automatic www.consult4scm.blogspot.com

Determination of requirement (purchase requisition – PR or Materials requirement planning MRP)

Determination of source of supply (Request for quotation – RFQ)

Vendor selection ( Quotations – compare, accept or reject)

Purchase order - Manual or automatic

www.consult4scm.blogspot.com

SAP Procurement process Data in purchase order either from PR or RFQ Monitor and send reminder to suppliers Goods Receipt Invoice verification Payment process www.consult4scm.blogspot.com

Data in purchase order either from PR or RFQ

Monitor and send reminder to suppliers

Goods Receipt

Invoice verification

Payment process

www.consult4scm.blogspot.com

SAP Special Procurement process Stock transfer with stock transfer orders – within a company between plants Sub contracting – Material provided to vendor by company for assembly or for minor finishing works only charges for conversion is paid Consignment stock – Vendor’s stock provided in the plant store, Money need to be paid after withdrawal of material for usage. A credit memo will be automatically prepared by the system upon withdrawal. www.consult4scm.blogspot.com

SAP

Special Procurement process

Stock transfer with stock transfer orders – within a company between plants

Sub contracting – Material provided to vendor by company for assembly or for minor finishing works only charges for conversion is paid

Consignment stock – Vendor’s stock provided in the plant store, Money need to be paid after withdrawal of material for usage. A credit memo will be automatically prepared by the system upon withdrawal.

www.consult4scm.blogspot.com

SAP Organizational level Client – highest hierarchical level in SAP system Company Code – Smallest organizational unit for external reporting Plant – Organizational unit within logistics for production, procurement and MRP Storage locations – Plant dependent, inventory management and physical inventory places Purchase organization – Centralized at company level or decentralized at plant level Purchase Group – Not defined in customizing, directly deal with vendors. www.consult4scm.blogspot.com

Client – highest hierarchical level in SAP system

Company Code – Smallest organizational unit for external reporting

Plant – Organizational unit within logistics for production, procurement and MRP

Storage locations – Plant dependent, inventory management and physical inventory places

Purchase organization – Centralized at company level or decentralized at plant level

Purchase Group – Not defined in customizing, directly deal with vendors.

www.consult4scm.blogspot.com

SAP If purchasing organization is to be made responsible for all the plants of a company code you must assign company code to all the plants, in addition to assigning purchase organization to the company code. If you want to make the purchase organization be responsible for many company codes, then you must not assign it to any company code. You must assign it to all the required plants. www.consult4scm.blogspot.com

SAP

If purchasing organization is to be made responsible for all the plants of a company code you must assign company code to all the plants, in addition to assigning purchase organization to the company code.

If you want to make the purchase organization be responsible for many company codes, then you must not assign it to any company code. You must assign it to all the required plants.

www.consult4scm.blogspot.com

SAP Procurement process Personal setting in a purchase order (PO) takes priority over user parameters When you post a Goods Receipt (GR) to warehouse stock, a material document is created If GR is valuated, an accounting document is also generated by the system www.consult4scm.blogspot.com

SAP

Procurement process

Personal setting in a purchase order (PO) takes priority over user parameters

When you post a Goods Receipt (GR) to warehouse stock, a material document is created

If GR is valuated, an accounting document is also generated by the system

www.consult4scm.blogspot.com

SAP A movement type (MvT) is a three character key used to differentiate the goods movements Various types of movements are GR, GI (Goods issue) and Transfer postings Invoice verification create a link between MM and accounting (int/ext) www.consult4scm.blogspot.com

SAP

A movement type (MvT) is a three character key used to differentiate the goods movements

Various types of movements are GR, GI (Goods issue) and Transfer postings

Invoice verification create a link between MM and accounting (int/ext)

www.consult4scm.blogspot.com

SAP ME21N – Create purchase order ME23N – Display purchase order ME9F – Message output MIGO - Goods receipt MIRO – Invoice Entry www.consult4scm.blogspot.com

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