QM.02._Goods Receipts for PO

Project Everest BBP
Business Blueprint
Quality Management
Purchase Order Receipts
Document Number: QM.02._Goods Receipts for PO
Module Responsible: QM
Project "Everest"
mySAP Business Suite
For ICL-IP
a. Identification
Version: 1.0 Page1 of 16 Process name: GR for PO with QM
Date: Reference: Identification

Project Everest BBP
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1.0 QM.02 QM.02._Goods Receipts for PO Goods Receipts for PO
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Table of Contents
1 Introduction............................................................................................................................................................5

Project Everest BBP
1.1 Identification ......................................................................................................................................................5
1.2 General Process description ...............................................................................................................................5
1.3 Document Description.........................................................................................................................................5
2 Applicable Documents...........................................................................................................................................6
3 Basic Terms (Glossary) Sub process rollout relevance .........................................................................................6
3.1 Basic terms (Glossary)........................................................................................................................................6
3.2 Sub process rollout relevance (R–Relevant, N–Not relevant, S–requires Special process)...............................7
7
4 Global template Process implementation ..............................................................................................................8
4.1 Process Chart ......................................................................................................................................................8
4.2 Sub process Steps / Activities table ..................................................................................................................10
4.3 Names and numbering standards.......................................................................................................................11
4.4 Main Objects / Org structure.............................................................................................................................11
5 Integration............................................................................................................................................................14
6 Global Reports and Forms....................................................................................................................................15
6.1 Reports..............................................................................................................................................................15
6.2 Layout/Forms ...................................................................................................................................................15
7 Specific rollout Forms requirements....................................................................................................................15
7.1 HOBS / Asiabrom.............................................................................................................................................15
7.2 Eurobrom...........................................................................................................................................................15
7.3 Broomchemie....................................................................................................................................................15
7.4 Bromokem.........................................................................................................................................................15
7.5 Ameribrom........................................................................................................................................................15
8 Development .......................................................................................................................................................15
8.1 Development.....................................................................................................................................................15
9 Data migration and Interfaces..............................................................................................................................15
9.1 Data migration...................................................................................................................................................15
9.2 Interfaces...........................................................................................................................................................16
9.3 Temporary Interfaces required (Per rollout).....................................................................................................16

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10 Process Roles (for authorizations and training purpose)....................................................................................16
11 Scope of work implications................................................................................................................................16
11.1 Process / Features not supported in legacy system and will be supported by SAP.........................................16
11.2 Process / Features that were supported in legacy and will not be supported by SAP.....................................16

Project Everest BBP
1 Introduction
1.1 Identification
Quality assurance according to purchase orders from vendors
1.2 General Process description
There are several aspects to quality assurance related to purchasing from vendors. These aspects affect the
procurement process before, during and after the entry of a purchase order. For example, this process has
relevance to other processes such as:
• Vendor evaluation
• Choosing a vendor
• Creating purchase orders for vendors
• Certificate handling and document management
• Goods receipts for purchase orders
• Stock transfers
• Batch classification
• Complaints against vendors
For raw materials, this is the fundamental process which precedes production. This is where components
are brought in, classified and stored until use.
1.3 Document Description
This document is part of the Everest project Blueprint documentation and it includes the following
chapters:
1. Introduction
2. Applicable documents
3. Basic terms and process / sub process list
4. Process implementation
5. Integration
6. Reports and forms
7. Developments
8. Data migration and interfaces
9. Open issues
10. Authorizations

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2 Applicable Documents
# Title Identification
[1] Rfp/sow
[2] contract
BP
3 Basic Terms (Glossary) Sub process rollout relevance
3.1 Basic terms (Glossary)
Certificate – a document detailing specific quality requirements.
Classification characteristic – a parameter on a classified object which distinguishes this classified object
from other objects of the same classification type. For example, the classification type, 023—on
material batches, can have several classification characteristics. The characteristic values help to
distinguish each batch from another
Classification class – a grouping that distinguishes a set of classified objects from other classified objects
of the same classification type
COA / COQ / COC (certificate of analysis / quality / compliance) – A certificate (in this case found on
goods receipts) which shows the results of inspections performed by a vendor
Code – A key that uniquely identifies the qualitative contents of an item in a coded form that can be
mechanically processed. Each code is assigned to a code group in the catalog. A code can describe, for
example: a characteristic attribute, a usage decision or a task.
Code group – A key for summarizing codes and structuring a catalog according to various criteria. The
assignment of codes to code groups takes place at client level.
Inspection characteristic is a criterion on the basis of which an inspection is performed.
Inspection lot – a request to a plant to carry out a quality inspection for a specific quantity of material.
Inspection method – a procedure for inspecting a characteristic.
Notification – A data record with which a user informs a department about an occurrence
Plant – an organizational unit for dividing an enterprise according to production, procurement,
maintenance, and materials planning
Purchase order – A request or instruction from a purchasing organization to a vendor (external supplier)
or a plant to deliver a quantity of material or to perform services at a certain point in time.

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Purchasing organization – An organizational unit in Logistics, subdividing an enterprise according to the
requirements of purchasing; a purchasing organization procures materials and services, negotiates
conditions of purchase with vendors, and is responsible for such transactions.
Results recording – the process by which results are recorded on inspection characteristics for an
inspection lot
Selected set – A range of specific entries (code groups and codes) of a catalog. For example, usage decision
codes can be assigned per plant.
Storage location – An organizational unit allowing differentiation between the various stocks of a material
in a plant.
Usage decision – A ruling on the further processing of an inspection lot that is made on the basis of the
inspection results
Vendor evaluation – A program that provides a decision basis for selecting and controlling sources of
supply.
Work center – An organizational unit that defines where and when an operation must be performed; for
QM this is a place at which inspections are conducted; in the R/3 System, work centers are entered in
the inspection operations. Several inspection characteristics can be inspected for each work center or
inspection operation
3.2 Sub process rollout relevance (R–Relevant, N–Not relevant, S–requires Special
process)
Sub process HOBS Eurobrom Asia Brom Broomchemi
e
Bromokem Ameribro
m
R R R R R R

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4 Global template Process implementation
4.1 Process Chart
The basic flow of the process is as shown:
Detailed description (by steps if possible)

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Step / Activity Department Description
1 – Vendor Evaluation Purchasing The process of evaluating vendors according to specific
criteria. In standard SAP, one class of criteria is quality
parameters. This includes feedback from inspections,
notifications and vendor audits.
2 – Purchase Request Often generated by
materials planning,
processed by purchasing
The purchase request is the note to the purchasing
department that materials are required. Specified are
usually the material, quantity and date required.
3 – Vendor Selection Purchasing The process of choosing a vendor. This is often affected by
the results of vendor evaluation, but can also be affected
by the vendor system (typically the ISO standard),
specified in the material master record (QM view). The
vendor's system would be checked with either the vendor
master record or the material/vendor quality-info record.
4 - MSDS exists? Purchasing We check whether or not the vendor has sent an MSDS.
When they have, we record this in the material/vendor Q-
info record.
5 - Demand MSDS Purchasing If the vendor has not sent us an MSDS, we ask for it. They
should know that we will not accept the stock without
this.
6 – Purchase Order Purchasing The contract that specifies the terms of purchase from a
vendor. When a material being purchased is relevant for
quality inspection, the stock type for the item will show
"quality inspection".
7 – Goods Receipt Material handler When stock arrives to the company, a material handler
checks the receipt list against the purchase order. On his
approval, items are received into the local system. Those
items for which there will be quality inspection will be in
the QI stock type (unless it is a skip lot). QI stock is
valuated material, whether from QM or not.
8 - MSDS received? Material handler The material handler does not need to expect this file, but
must be aware that it may accompany the shipment.
9 - Send to EH&S Material handler/EH&S
Department
If the MSDS is received with the shipment, the material
handler must pass this document on to the EH&S staff.
(Optional: to scan the file and store it with the
material/vendor Q-info record.)
10 - COA / COQ
Required
Material handler If a certificate is necessary for a received material, it can be
blocked from inspection unless the certificate is
"registered" in the system. At some locations, there is no
inspection, and only registration of the certificate.
11- Register COA/
COQ
Material handler or lab
inspector
The status of the certificate requirement is set to
"received".
12 - Inspection Lot
(created automatically)
System-generated An inspection lot is automatically generated (with a
distinct number) for inspection-relevant material. The
inspection lot shows relevant related items that are
appropriate, such as the material, quantity, plant, storage
location, purchase order, and inspection plan.

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Step / Activity Department Description
13 – Results Recording Lab inspector Results are recorded for the inspection lot according to
characteristics defined in the inspection plan. An
inspection plan would usually be automatically assigned
from the receipt based on the material and vendor.
Note 1: that when no inspection plan is used, and the
material is only verified with a vendor certificate, the
material can be checked against the certificate, and held in
QI status until the check is completed.
Note 2: results can be recorded against SAP material
specifications as well, but these are not seen to be relevant
at this time.
14 – Usage Decision Lab inspector or
material handler
The closing of the inspection is the usage decision. Within
it are made:
• Decision on accept or reject
• Score for the results (usually between 1 to 100)
• Stock posting of the material (for example to free
stock, blocked, scrap, or return to vendor)
Note: If a received material is out of specification, it can
be received anyway by authority of the production
supervisor. Requirement at BCT is for three levels of
approval, not just one.
15 – By-products of
Usage Decision
Lab inspector, material
handler, or system
The usage decision can be made in several stages, so for
example, the accept/reject decision and score can be made
in one step, while the stock posting is made in another
step. This is important because from the workshop we
learned that Broomchemie is interested in having a release
procedure for making this stock posting at times. In such
situation we can also have a follow-on function (some
programming required) which would initiate other action,
such as an email to management, or initiation of a work
procedure for an MRB meeting.
16 – (Optional)
Notification – complaint
against vendor
Depends During inspection lot processing, a notification can be
created. Notifications usually indicate problems, but not
always. Similarly, after an inspection lot has been created,
a problem found later in the supply chain can be recorded
with a notification.
4.2 Sub process Steps / Activities table
Sub-process steps:
3. a. – Within vendor selection – we will need to specify the requirements for each material:
i. QM control key (for managing procurement, such as: invoice blocking if inspection was rejected, vendor
blocking active, certificate requirement, etc.) – this MUST be entered (FOR ALL PLANTS) if the "QM
proc. active" flag is selected for even one plant
ii. Certificate type
iii. Target QM system – checks against either the vendor master record or the vendor/material Q-info record
for the QM system (e.g. ISO 9***) that the vendor meets this requirement

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12. requests that in Ramat Chovav the
inspection report (list of inspections) should
be printed automatically.
Note: we can have automatic printout per
inspection type. Therefore, we would only
be able to configure automatic printing for
inspection type 01 if everyone agrees to
have the inspection report printed.
Otherwise we will need to configure new
inspection types (which is not a problem
either).
4.3 Names and numbering standards
Names:
Codes for:
1. inspection characteristics (catalog set 1)
2. usage decisions (catalog set 3)
 the codes must be assigned to a selected set, which are defined per plant
Numbering standards:
1. inspection lots (defined per inspection type – we use inspection type 01 here)
4.4 Main Objects / Org structure
In this process, the following objects are particularly relevant:
− Organizational structure
o Purchasing organization
o Vendor
o Plant
o Storage location
o Work center
− Basic data
o DMS documents
o Inspection characteristic
o Inspection method
o Inspection plan
o Material master record
o Material specification (not used at this time)
o Q-info record (material-vendor QM information record)
− Business objects
o Inspection lot

Project Everest BBP
o Plant
o Storage location
The configuration is under the objects shown listed above under "Basic data". These are now described.
We start with the QM view of the material
master record, shown at right.
From the top we see the material and plant.
The General data box is important mainly
for the "Insp. Setup" box. That little box is
powerful. Within it we configure every
movement type. The grey
sign to its left shows that
some inspection types have already been
configured. We'll look at this in the next
slide.
The Procurement data box includes
parameters that affect purchasing with QM.
Note that the QM proc. active flag is client-
specific. That is, if chosen in one plant, this
material must have the QM control and QM
view maintained in all plants. The
certificate type specifies what kind of
certificate should accompany a receipt, and
the target QM system is the type of system
a vendor should have to buy the material.
Looking top to bottom … two inspection
types are configured for this material. This
process requires inspection type 01.
Note: if the active button is not selected
for an inspection type, it is as if the material
is not awake for this inspection type.
Following below, we see configuration for
inspection type 01. For example:
1.Post to inspection stock puts stock in
"quality" status when received.
2.An inspection lot is used when
inspecting this material
3.The inspection plan is automatically
assigned to the inspection lot when the
stock is received

Project Everest BBP
When stock of a QM material is received in
a PO, it can be checked against a
certificate. This is often the case at DSBG.
If inspection is also to be recorded on-site,
and inspection lot would be created as
well, and would typically have an
inspection plan. Shown at right is a
simple inspection plan, with two
operations. The two operations are assigned
to two work centers. These can be two lab
stations. We select an operation to see the
inspection characteristics inside.
Shown in this operation are four qualitative
characteristics. These all come from master
inspection characteristics. We see that for
characteristics 0020 and 0030,
inspection methods are assigned.
We can attach DMS documents to
inspection methods.
Shown at right is a Q-Info record, showing
configuration data related to a particular
vendor and material to a certain plant. Note
that the manufacturer in this case is
different from the vendor. This is important
for DSBG, where we have subsidiaries and
manufacturers that are distinct.
We see in this record that the inspection
control is that no inspection lot is created
(under Inspection control), but that there is
a standard certificate that could be used.

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5 Integration
EH&S
MSDS: An MSDS sheet is to be on file
before the stock can be received. We can
store the MSDS (as a DMS document) in
the vendor/material Q-info record. To be
determined: if the MSDS will be stored in
this record or in the dangerous goods
master record in EH&S.
Purchasing
Vendor evaluation: One of the parameters for evaluation of a vendor is quality. In standard SAP, three criteria
make up the score for the vendor:
1. Inspection results (from usage decisions on inspection lots)
2. Quality notifications (such as complaints against vendors)
3. Vendor audits
 the direction on this is currently being handled by the purchasing configuration team.
Vendor selection: There is a standard vendor selection process in purchasing (such as with purchase requisitions
and quotations), but we affect the choice of vendor according to the vendor system requirements. For
example, if a given material requires a certain vendor system, we note it in the material master record, and
the system checks against the vendor master record or the purchasing Q-info record, as described above.
The vendor approval process: Each site will need to decide how they will work with the vendor approval
process.
Inventory control
Inspection stock: When stock is received for a purchase order that is to be inspected, it is under stock category Q.
However, this stock is valuated upon receipt.
Usage decision: When inspection is finished, a stock posting is made. Stock postings can include:
• Post to unrestricted-use stock
• Post to blocked stock
• Post to scrap

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• Return to vendor
• … more
With each of these, a material document is created for the movement.
Note: in cases such as return to vendor, or post to blocked stock, if additional paperwork is required (such as a
shipment slip to the vendor), we leave this as the responsibility of the inventory management configuration
team to ensure that such documents are properly aligned with the corresponding movement types.
6 Global Reports and Forms
6.1 Reports
See the LIMS document, titled "QM.08._LIMS.doc"
6.2 Layout/Forms
There are two primary forms for inspection lots: sample drawing instructions and inspection instructions. Either
can be automatically printed when an inspection lot is created (or subsequently created when maintaining an
inspection lot). The requirement or use of these forms has not been defined (per plant) at this time.
7 Specific rollout Forms requirements
Not relevant
7.1 HOBS / Asiabrom
7.2 Eurobrom
7.3 Broomchemie
7.4 Bromokem
7.5 Ameribrom
8 Development
8.1 Development
There are no known development requirements for this process at this time.
9 Data migration and Interfaces
9.1 Data migration
Not relevant

Project Everest BBP
9.2 Interfaces
None defined at this time
9.3 Temporary Interfaces required (Per rollout)
None defined at this time
9.3.1 HOBS / Asiabrom
9.3.2 Eurobrom
9.3.3 Broomchemie
9.3.4 Bromokem
9.3.5 Ameribrom
10 Process Roles (for authorizations and training purpose)
Role Activity / transaction Responsibility (Role definition)
Purchasing manager
Purchasing group (buyer)
Inspector
Lab manager
Stock clerk (receiver)
Materials manager
Production manager
11 Scope of work implications
11.1 Process / Features not supported in legacy system and will be supported by SAP
Not relevant
11.2 Process / Features that were supported in legacy and will not be supported by SAP
Not relevant

QM.02._Goods Receipts for PO

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