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Procurement process

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Procurement process
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Procurement process

  1. 1. Introduction  Every organization acquires material or services to complete its business needs. The process of buying materials and obtaining services from vendors or dealers is procurement.
  2. 2. Purchasing Document  Purchasing Document is used for purchasing for materials and service  Every purchase document consist of Header data, Item overview & Item Details  Internal Documents  External Documents
  3. 3. Procure to Pay
  4. 4. Determination of Requirements  The Material requirements are identified by the user departments.  Automatic through MRP  Tcode-ME51N  Standard Doc Type: NB
  5. 5. Purchase Requisition
  6. 6. Source Determination  Identify the source of supply  Based on past orders and existing longer-term purchase agreements.  Purchase info record
  7. 7. Vendor Selection  Vendor selection is mainly Based on Price and Quality  Local vendor  Foreign Vendor  One-time vendor
  8. 8. PO Processing & Monitoring  Purchase order is a formal request to vendor to supply certain goods under the standard condition  Sending the reminders to vendors in a pre defined intervals.  T-Code: ME21N
  9. 9. PO in SAP MM
  10. 10. Goods Receipt  Goods Receipt into warehouse  Stock update  Creation of material Document  Creation of accounting document
  11. 11. Invoice Verification  Vendor invoices are checked for accuracy of process and contents.  PO based invoice Verification  GR-Based invoice verification
  12. 12. THANK YOU

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