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Undocumented Advice to Help You Better Manage and Simplify the Purchasing Process Using SAP Materials Management (MM) Denn...
What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org...
Why Are We Here? <ul><li>Several purchasing organizations continue to use methods that increase work for the users </li></...
Why Are We Here? (cont.) <ul><li>This session covers methods and techniques using  SAP standard functionality to simplify ...
What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org...
Know Your Procurement Process <ul><li>How many dollars are being paid to vendors without formal agreement? </li></ul><ul><...
Know Your Procurement Process (cont.) <ul><li>How do I reduce the amount without purchase documents? </li></ul><ul><ul><li...
Invoicing Plans <ul><li>Invoicing Plans </li></ul><ul><ul><li>Allow you to schedule desired invoicing dates for planned pr...
Invoicing Plans — Configuration Steps <ul><li>Determine the date determination rule to use, or create a custom rule  </li>...
1. Determine the Date Determination Rule to Use, or Create  a Custom Rule <ul><li>Transaction OM7R </li></ul>
2. Create Invoicing Plan Type <ul><li>Transaction OM1R </li></ul>
3. Establish the Date ID <ul><li>Transaction OM3R </li></ul>
4. Define Default Date Category <ul><li>Transaction OM5R </li></ul>
5. Finish Maintaining Invoicing Plan Type Created in Step 2  <ul><li>Transaction OM1R </li></ul><ul><li>Add starting date,...
Setting Up ERS — Evaluated Receipt Settlement (ERS)  <ul><li>Check the FI document type for ERS </li></ul><ul><li>Check th...
Check FI Document Type for ERS (First Screen) <ul><li>Use transaction OMR4; click on Document Types in Invoice Verificatio...
Check FI Document Type for ERS (Second Screen) <ul><li>Check or correct default document type </li></ul>Second screen
Check the Number Range for ERS FI Document Type (Screen 1) <ul><li>Use transaction OMR4; click on Document Type; double- c...
Check the Number Range for ERS FI Document Type (Screen 2) <ul><li>Click on number range information to verify number rang...
Check the Number Range for ERS MM Document Type <ul><li>Use transaction OMRJ; pick or create a number range  to use </li><...
Assign the Number Range for ERS MM Document Type <ul><li>Menu Path: SPRO    Materials Management    Logistics Invoice Ve...
Assign the Number Range to RS Line
Set the ERS Checkboxes <ul><li>Vendor Master – Purchasing Data </li></ul><ul><ul><li>Check the boxes; AutoEvalGRSetmt Del....
The Framework PO <ul><li>The Framework Order (Blanket Order) </li></ul><ul><ul><li>Used for authorization to deliver a spe...
Using the Invoice Plan and ERS — The Framework PO <ul><li>Create the Purchase Order — Doc Type FO </li></ul><ul><li>Click ...
Create the Purchase Order — Doc Type FO <ul><li>With the GR box unchecked on Delivery tab </li></ul>
Click on the Invoicing Plan Button — Choose a Plan <ul><li>This is what you will see: </li></ul>
Create Invoicing Dates
Executing the ERS Run <ul><li>Transaction MRRL actually creates and posts the ERS invoices </li></ul>
Executing the ERS Run (cont.) <ul><li>Transaction MRRL — actual posting </li></ul>
ERS Tips <ul><li>ERS is set on the Vendor Master; however can be controlled at the info record or on the PO </li></ul><ul>...
Understand the Sources of Demand <ul><li>Flowchart and document the process from requirement to delivery (Requisition to C...
What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org...
Does Your Org Structure Match Your Organization?  <ul><li>Procurement at the enterprise level </li></ul><ul><ul><li>Refere...
The Purchasing Group Code  <ul><li>Used to designate “person or persons responsible for purchasing a single material, a ra...
What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org...
Does Your Vendor Master (VM) Support Your Processes?  <ul><li>VM is shared by the Purchasing and Finance orgs </li></ul><u...
Using Vendor Account Groups  <ul><li>SAP requires vendors to be segregated into Account Groups. One Account Group per vend...
Using One-Time Vendors <ul><li>This saves having to enter a Vendor Master for a vendor that probably will not be used agai...
What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org...
SAP Purchasing Document: The Source List <ul><li>Used to assign sources to requisitions </li></ul><ul><ul><li>Can be autom...
SAP Purchasing Document: The Info Record <ul><li>Creates default data for the purchase order </li></ul><ul><ul><li>Note: T...
SAP Purchasing Document: The Requisition <ul><li>Document types </li></ul><ul><ul><li>Standard is NB, but custom types can...
SAP Purchasing Document: The Requisition (cont.) <ul><li>Uses the source list to assign vendor </li></ul><ul><ul><li>Can a...
SAP Purchasing Document: The Purchase Order <ul><li>Document types and number ranges </li></ul><ul><ul><li>Each doc type w...
SAP Purchasing Document: The Purchase Order (cont.) <ul><li>Vendor confirmations </li></ul><ul><ul><li>Inbound vendor mess...
SAP Purchasing Document: The Outline Agreement <ul><li>Contracts </li></ul><ul><ul><li>Has validity dates </li></ul></ul><...
What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org...
Resources <ul><li>http://help.sap.com/saphelp_erp2004/helpdata/en/e1/8e51341a06084de10000009b38f83b/frameset.htm </li></ul...
7 Key Points to Take Home <ul><li>Truly understand the business reasons for using your current procurement processes </li>...
7 Key Points to Take Home (cont.) <ul><li>Figure out the best way to do a procurement process and make that the standard —...
Your Turn! How to contact me: Dennis Phelan [email_address]
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Scm2008 Phelan Undocumented Advice To Help You Better Final

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  • Transcript of "Scm2008 Phelan Undocumented Advice To Help You Better Final"

    1. 1. Undocumented Advice to Help You Better Manage and Simplify the Purchasing Process Using SAP Materials Management (MM) Dennis Phelan Blount International
    2. 2. What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org structure to your organization </li></ul><ul><li>Making your Vendor Master support your processes </li></ul><ul><li>Understanding the uses of SAP Purchasing documents </li></ul><ul><li>Wrap-up </li></ul>
    3. 3. Why Are We Here? <ul><li>Several purchasing organizations continue to use methods that increase work for the users </li></ul><ul><li>Many companies still process routine invoices through a manager sign-off process rather than using SAP matching capabilities </li></ul><ul><li>Repeat purchases are still being manually requisitioned </li></ul><ul><li>Many SAP functionalities not understood or being used </li></ul>“ I thought SAP was supposed to save me work — I need more people just to do what I used to do”
    4. 4. Why Are We Here? (cont.) <ul><li>This session covers methods and techniques using SAP standard functionality to simplify and automate a purchasing organization </li></ul>
    5. 5. What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org structure to your organization </li></ul><ul><li>Making your Vendor Master support your processes </li></ul><ul><li>Understanding the uses of SAP Purchasing documents </li></ul><ul><li>Wrap-up </li></ul>
    6. 6. Know Your Procurement Process <ul><li>How many dollars are being paid to vendors without formal agreement? </li></ul><ul><ul><li>Why do I care? </li></ul></ul><ul><ul><ul><li>The use of agreements (purchase documents) assists in controlling spending </li></ul></ul></ul><ul><ul><ul><li>Simplifies and standardizes transactions </li></ul></ul></ul><ul><ul><li>How do I find out? </li></ul></ul><ul><ul><ul><li>Use transaction report MIR5 and select an invoice doc type </li></ul></ul></ul><ul><ul><ul><ul><li>Doc type RE = entered against purchase document </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Doc type KR = vendor payment without purchasing document </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Use other selection criteria to narrow report </li></ul></ul></ul></ul>
    7. 7. Know Your Procurement Process (cont.) <ul><li>How do I reduce the amount without purchase documents? </li></ul><ul><ul><li>Consider SAP Invoicing Plans </li></ul></ul><ul><ul><ul><li>An automated self-invoicing plan based on a schedule </li></ul></ul></ul><ul><ul><li>Look into SAP Limit Framework Orders </li></ul></ul><ul><ul><ul><li>A purchase order without Goods Receipt for dollar amounts only, with limits </li></ul></ul></ul><ul><li>Are different plants purchasing the same objects from different vendors at different prices? </li></ul><ul><ul><li>Consider using SAP Reference Purchasing Organization </li></ul></ul><ul><ul><ul><li>Centralized contracts for use by other purchasing orgs </li></ul></ul></ul>
    8. 8. Invoicing Plans <ul><li>Invoicing Plans </li></ul><ul><ul><li>Allow you to schedule desired invoicing dates for planned procurements independently of the receipt. Should be used with a FO purchase order. </li></ul></ul><ul><ul><ul><li>Periodic Invoicing Plan </li></ul></ul></ul><ul><ul><ul><ul><li>Can be used for regularly recurring procurement transactions (rentals, leasing, subscriptions, …) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>System suggests dates based on configuration </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Uses Evaluated Receipt Settlement (ERS) (automatic invoice creation) </li></ul></ul></ul></ul><ul><ul><ul><li>Partial Invoicing Plan </li></ul></ul></ul><ul><ul><ul><ul><li>Can be used for procurement that is subject to staged payments (construction projects, …) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Manually maintain dates </li></ul></ul></ul></ul>
    9. 9. Invoicing Plans — Configuration Steps <ul><li>Determine the date determination rule to use, or create a custom rule </li></ul><ul><li>Create invoicing plan type </li></ul><ul><li>Establish the date ID </li></ul><ul><li>Define default date category </li></ul><ul><li>Finish maintaining invoicing plan type created in step 2. Add starting date, end date, and horizon. </li></ul>
    10. 10. 1. Determine the Date Determination Rule to Use, or Create a Custom Rule <ul><li>Transaction OM7R </li></ul>
    11. 11. 2. Create Invoicing Plan Type <ul><li>Transaction OM1R </li></ul>
    12. 12. 3. Establish the Date ID <ul><li>Transaction OM3R </li></ul>
    13. 13. 4. Define Default Date Category <ul><li>Transaction OM5R </li></ul>
    14. 14. 5. Finish Maintaining Invoicing Plan Type Created in Step 2 <ul><li>Transaction OM1R </li></ul><ul><li>Add starting date, end date, and horizon </li></ul><ul><li>You have finished setting up Invoice Plan 12 </li></ul>
    15. 15. Setting Up ERS — Evaluated Receipt Settlement (ERS) <ul><li>Check the FI document type for ERS </li></ul><ul><li>Check the number range for ERS FI document type </li></ul><ul><li>Check the number range for ERS MM document type </li></ul><ul><li>Assign the number range for ERS MM document type </li></ul><ul><li>Assign the number range to RS line </li></ul><ul><li>Set the ERS checkboxes </li></ul>
    16. 16. Check FI Document Type for ERS (First Screen) <ul><li>Use transaction OMR4; click on Document Types in Invoice Verification; double-click on MRRL </li></ul>
    17. 17. Check FI Document Type for ERS (Second Screen) <ul><li>Check or correct default document type </li></ul>Second screen
    18. 18. Check the Number Range for ERS FI Document Type (Screen 1) <ul><li>Use transaction OMR4; click on Document Type; double- click on the document type </li></ul>
    19. 19. Check the Number Range for ERS FI Document Type (Screen 2) <ul><li>Click on number range information to verify number range used </li></ul>Second screen
    20. 20. Check the Number Range for ERS MM Document Type <ul><li>Use transaction OMRJ; pick or create a number range to use </li></ul>
    21. 21. Assign the Number Range for ERS MM Document Type <ul><li>Menu Path: SPRO  Materials Management  Logistics Invoice Verification  Incoming Invoice  Number Assignment  Maintain Number Assignment for Logistics Documents  Transaction – Assign Number Range </li></ul>
    22. 22. Assign the Number Range to RS Line
    23. 23. Set the ERS Checkboxes <ul><li>Vendor Master – Purchasing Data </li></ul><ul><ul><li>Check the boxes; AutoEvalGRSetmt Del. and AutoEvalGRSetmt Ret </li></ul></ul>
    24. 24. The Framework PO <ul><li>The Framework Order (Blanket Order) </li></ul><ul><ul><li>Used for authorization to deliver a specified dollar amount of goods or services </li></ul></ul><ul><ul><li>Document type = FO </li></ul></ul><ul><ul><li>No material numbers — text only </li></ul></ul><ul><ul><li>No GR (can be allowed if desired) </li></ul></ul><ul><ul><li>Has validity period in the header </li></ul></ul><ul><ul><ul><li>Has limit functionality </li></ul></ul></ul><ul><ul><ul><ul><li>Defines maximum dollars allowed to be paid </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Allows a range (vendor sees one, the other is absolute) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Requires a different invoice entry process </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Transaction MIRO with layout 4_6310 account assignment (cost center) </li></ul></ul></ul></ul></ul>
    25. 25. Using the Invoice Plan and ERS — The Framework PO <ul><li>Create the Purchase Order — Doc Type FO </li></ul><ul><li>Click on the Invoicing Plan Button — Choose a Plan </li></ul><ul><li>Create Invoicing Dates </li></ul><ul><li>Executing the ERS Run </li></ul>
    26. 26. Create the Purchase Order — Doc Type FO <ul><li>With the GR box unchecked on Delivery tab </li></ul>
    27. 27. Click on the Invoicing Plan Button — Choose a Plan <ul><li>This is what you will see: </li></ul>
    28. 28. Create Invoicing Dates
    29. 29. Executing the ERS Run <ul><li>Transaction MRRL actually creates and posts the ERS invoices </li></ul>
    30. 30. Executing the ERS Run (cont.) <ul><li>Transaction MRRL — actual posting </li></ul>
    31. 31. ERS Tips <ul><li>ERS is set on the Vendor Master; however can be controlled at the info record or on the PO </li></ul><ul><li>If the ERS vendor is used for material master items, you may want to create a new vendor number for Framework Purchase Orders </li></ul>
    32. 32. Understand the Sources of Demand <ul><li>Flowchart and document the process from requirement to delivery (Requisition to Check) </li></ul><ul><ul><li>First-time or infrequent buys </li></ul></ul><ul><ul><ul><li>Look at SAP Request For Quotation (RFQ) functionality </li></ul></ul></ul><ul><ul><li>Repeat purchases </li></ul></ul><ul><ul><ul><li>Manually generated </li></ul></ul></ul><ul><ul><ul><ul><li>Determine why these can’t be automated? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Use Six Sigma techniques to simplify </li></ul></ul></ul></ul><ul><ul><ul><li>System-created requirements </li></ul></ul></ul><ul><ul><ul><ul><li>Set up MRP to create requisitions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Use SAP Source List to source requisition </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Consider SAP Scheduling Agreements </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Look at automated purchase orders </li></ul></ul></ul></ul>
    33. 33. What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org structure to your organization </li></ul><ul><li>Making your Vendor Master support your processes </li></ul><ul><li>Understanding the uses of SAP Purchasing documents </li></ul><ul><li>Wrap-up </li></ul>
    34. 34. Does Your Org Structure Match Your Organization? <ul><li>Procurement at the enterprise level </li></ul><ul><ul><li>Reference Purchasing Organization </li></ul></ul><ul><ul><ul><li>Negotiates contracts and makes agreements </li></ul></ul></ul><ul><ul><ul><li>Standard purchasing organizations must be assigned to these to use the agreements </li></ul></ul></ul><ul><li>Procurement at the company-code level </li></ul><ul><ul><li>Purchasing organizations are assigned to company codes </li></ul></ul><ul><ul><li>A purchasing org may be assigned to more than one company </li></ul></ul><ul><li>Procurement at the plant level </li></ul><ul><ul><li>Purchasing organization not assigned to company codes but to plants </li></ul></ul>
    35. 35. The Purchasing Group Code <ul><li>Used to designate “person or persons responsible for purchasing a single material, a range of materials, or a commodity group” </li></ul><ul><li>Assigned to materials in the Material Master </li></ul><ul><li>Helpful in reporting or sorting requirements </li></ul><ul><li>Can be used as “checking objects” in release procedures </li></ul>
    36. 36. What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org structure to your organization </li></ul><ul><li>Making your Vendor Master support your processes </li></ul><ul><li>Understanding the uses of SAP Purchasing documents </li></ul><ul><li>Wrap-up </li></ul>
    37. 37. Does Your Vendor Master (VM) Support Your Processes? <ul><li>VM is shared by the Purchasing and Finance orgs </li></ul><ul><li>Sections </li></ul><ul><ul><li>General data </li></ul></ul><ul><ul><ul><li>Address, control data (customer = vendor) </li></ul></ul></ul><ul><ul><li>Company Code data </li></ul></ul><ul><ul><ul><li>Accounting info </li></ul></ul></ul><ul><ul><li>Purchasing data </li></ul></ul><ul><ul><ul><li>Settings unique for that vendor in that purchasing org </li></ul></ul></ul><ul><ul><ul><ul><li>Currency, payment terms, Incoterms, … </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Extras  Additional Purch. Data = vendor is a plant </li></ul></ul></ul></ul><ul><ul><ul><li>Will override Material Master settings </li></ul></ul></ul><ul><ul><ul><ul><li>Hierarchy Sequence: Info record  Vendor Master  Material Master </li></ul></ul></ul></ul>
    38. 38. Using Vendor Account Groups <ul><li>SAP requires vendors to be segregated into Account Groups. One Account Group per vendor number. </li></ul><ul><ul><li>Can determine vendor number range used </li></ul></ul><ul><ul><li>Can determine internal number or external assignment </li></ul></ul><ul><ul><li>Can determine input field requirements </li></ul></ul><ul><ul><li>Can define type or class of vendor </li></ul></ul><ul><ul><ul><li>Custom groups can be used to define partners </li></ul></ul></ul><ul><ul><ul><ul><li>Main Vendor (VN) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Ordering Address (OA) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Invoice present by (PI) </li></ul></ul></ul></ul><ul><ul><ul><li>Assign vendors to groups and use them in Vendor Master partner relationships </li></ul></ul></ul><ul><ul><ul><ul><li>This allows multiple ordering addresses and payment addresses for the same vendor </li></ul></ul></ul></ul>
    39. 39. Using One-Time Vendors <ul><li>This saves having to enter a Vendor Master for a vendor that probably will not be used again </li></ul><ul><ul><li>They have their own account group </li></ul></ul><ul><ul><li>You use the same vendor number </li></ul></ul><ul><ul><li>The actual address is controlled in the purchasing document </li></ul></ul><ul><ul><ul><li>Enter on the address tab in the header of the purchase order </li></ul></ul></ul>
    40. 40. What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org structure to your organization </li></ul><ul><li>Making your Vendor Master support your processes </li></ul><ul><li>Understanding the uses of SAP Purchasing documents </li></ul><ul><li>Wrap-up </li></ul>
    41. 41. SAP Purchasing Document: The Source List <ul><li>Used to assign sources to requisitions </li></ul><ul><ul><li>Can be automatically created by system </li></ul></ul><ul><ul><li>Defines procurement sources for MRP </li></ul></ul>
    42. 42. SAP Purchasing Document: The Info Record <ul><li>Creates default data for the purchase order </li></ul><ul><ul><li>Note: This data will override Material Master data </li></ul></ul><ul><ul><li>Can be used to link Vendor Part Numbers to internal SAP material numbers </li></ul></ul>This can help receiving match vendors material to internal material numbers on the MIGO transaction screen
    43. 43. SAP Purchasing Document: The Requisition <ul><li>Document types </li></ul><ul><ul><li>Standard is NB, but custom types can be created </li></ul></ul><ul><ul><ul><li>Must be linked to PO doc type in configuration </li></ul></ul></ul><ul><li>Release procedures </li></ul><ul><ul><li>Classification method </li></ul></ul><ul><ul><ul><li>Can be at the item level or the header level </li></ul></ul></ul><ul><ul><ul><ul><li>Can have only one release procedure at the header level </li></ul></ul></ul></ul><ul><li>Layout </li></ul><ul><ul><li>Can be changed to fit your operation </li></ul></ul><ul><ul><ul><li>Look at document type for field selection used, then go to define layout at document level to modify (config) </li></ul></ul></ul><ul><ul><ul><li>Columns can be moved (drag and drop) and the layout saved </li></ul></ul></ul>
    44. 44. SAP Purchasing Document: The Requisition (cont.) <ul><li>Uses the source list to assign vendor </li></ul><ul><ul><li>Can assign to a contract or use info record </li></ul></ul><ul><ul><ul><li>This will expedite the assign-and-process transaction </li></ul></ul></ul><ul><li>Requisitions can be created by sales orders, plant maintenance orders, and production orders </li></ul><ul><ul><li>Usually will use account assignment “F” (orders) </li></ul></ul><ul><ul><li>Will be hard-linked to the order document </li></ul></ul><ul><ul><ul><li>Changes need to be made in the order document </li></ul></ul></ul>
    45. 45. SAP Purchasing Document: The Purchase Order <ul><li>Document types and number ranges </li></ul><ul><ul><li>Each doc type will have its own number range </li></ul></ul><ul><ul><li>NB = standard PO doc type </li></ul></ul><ul><ul><ul><li>Used as the stock transport order across company codes, sub-contracting order, and release against contract </li></ul></ul></ul><ul><ul><li>UB = stock transport order (inside company code) </li></ul></ul><ul><ul><ul><li>Will work across company code without billing </li></ul></ul></ul><ul><li>Release procedures </li></ul><ul><ul><li>Same as requisitions </li></ul></ul><ul><li>Communication to vendor </li></ul><ul><ul><li>Print, fax, EDI, or email </li></ul></ul><ul><li>Can be created automatically (transaction ME59N) </li></ul>
    46. 46. SAP Purchasing Document: The Purchase Order (cont.) <ul><li>Vendor confirmations </li></ul><ul><ul><li>Inbound vendor messages acknowledging receipt of purchase order or advising shipment has been made (Advance Shipping Notification [ASN]) </li></ul></ul><ul><ul><li>Usually automated (EDI); can be entered manually </li></ul></ul><ul><ul><li>Has automated follow-up functionality (dunning messages) </li></ul></ul><ul><ul><li>Updates schedule line dates and quantities </li></ul></ul><ul><ul><ul><li>This updates the scheduled delivery MRP uses for planning </li></ul></ul></ul><ul><ul><li>Can be configured to create inbound deliveries </li></ul></ul><ul><ul><ul><li>This aids receiving accuracy as it defaults the data into the MIGO screen </li></ul></ul></ul><ul><ul><ul><li>Works great when combined with ERS </li></ul></ul></ul>
    47. 47. SAP Purchasing Document: The Outline Agreement <ul><li>Contracts </li></ul><ul><ul><li>Has validity dates </li></ul></ul><ul><ul><li>Requires a purchase order as a release </li></ul></ul><ul><ul><ul><li>Uses the contract pricing, terms, and conditions instead of the info record </li></ul></ul></ul><ul><li>Scheduling Agreements </li></ul><ul><ul><li>A quantity purchase agreement similar to a contract, but the releases can be automatically created by MRP or Kanban </li></ul></ul><ul><ul><li>Type LPA </li></ul></ul><ul><ul><ul><li>Schedule lines not transmitted to vendor until released </li></ul></ul></ul><ul><ul><ul><ul><li>Forecast or JIT delivery schedule </li></ul></ul></ul></ul><ul><ul><li>Type LP </li></ul></ul><ul><ul><ul><li>Schedule lines transmitted to vendor upon creation </li></ul></ul></ul>
    48. 48. What We’ll Cover … <ul><li>Why are we here? </li></ul><ul><li>Your procurement process </li></ul><ul><li>Matching your org structure to your organization </li></ul><ul><li>Making your Vendor Master support your processes </li></ul><ul><li>Understanding the uses of SAP Purchasing documents </li></ul><ul><li>Wrap-up </li></ul>
    49. 49. Resources <ul><li>http://help.sap.com/saphelp_erp2004/helpdata/en/e1/8e51341a06084de10000009b38f83b/frameset.htm </li></ul><ul><ul><li>Has detailed help describing most standard functions </li></ul></ul><ul><li>Martin Murray, SAP MM – Functionality and Technical Configuration (SAP PRESS, 2006). </li></ul><ul><ul><li>Excellent book describing the MM module functionalities </li></ul></ul><ul><li>ERPgenie.com </li></ul><ul><ul><li>http://erpgenie.com/index.php?option=com_content&task=blogcategory&id=70&Itemid=93 </li></ul></ul><ul><ul><ul><li>Purchasing tables; detailed how-to on certain processes </li></ul></ul></ul><ul><li>ITtoolbox.com </li></ul><ul><ul><li>Group name: Sap-log-mm@groups.ittoolbox.com </li></ul></ul><ul><ul><ul><li>Excellent discussion forum </li></ul></ul></ul>
    50. 50. 7 Key Points to Take Home <ul><li>Truly understand the business reasons for using your current procurement processes </li></ul><ul><li>Consider upstream activities (requisition creation) and downstream activities (receiving and invoicing) when designing your procurement process </li></ul><ul><li>Try to control spending by eliminating purchasing without formal agreement </li></ul><ul><li>Attempt to automate manual processes — ask “Why?” five times </li></ul>
    51. 51. 7 Key Points to Take Home (cont.) <ul><li>Figure out the best way to do a procurement process and make that the standard — SAP has many ways to do the same thing </li></ul><ul><li>Use standard SAP functionalities, but understand the uses of standard customization options </li></ul><ul><li>Spend the time to understand how the SAP purchasing documents work </li></ul>
    52. 52. Your Turn! How to contact me: Dennis Phelan [email_address]
    1. A particular slide catching your eye?

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