Basics Of Procurement ProcessPresentation Transcript
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
SAP Procurement process
Data in purchase order either from PR or RFQ
Monitor and send reminder to suppliers
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.
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
Purchase organization – Centralized at company level or decentralized at plant level
Purchase Group – Not defined in customizing, directly deal with vendors.
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.
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
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)
SAP ME21N – Create purchase order ME23N – Display purchase order ME9F – Message output MIGO - Goods receipt MIRO – Invoice Entry www.consult4scm.blogspot.com