Summary of LO 020 Processes in Procurement At the conclusion of this course, you will be able to: Enter invoices for

s for inventory and non-inventory items Create, display, and maintain material and vendor masters and list the required organizational levels Create, display, and maintain purchase requisitions, RFQs, contracts, and purchase orders Explain the financial and valuation effect of basic procurement Carry out standard analyses in the system

02 Navigation The R/3 System is a client system. The client concept enables the joint operation, in one system, of several enterprises
Screen Elements
Command field
Menu Edit Favorites Extras System

Menu bar
Help

Standard toolbar Options Title bar

Status setzen

System function name : Activity

Input field

Input field
Overview

Application toolbar Tab

Green light; positive Yellow light; neutral

1st selection 2nd selection 3rd selection 4th selection 5th selection Display Change

Radio button

1st selection

2nd selection

3rd selection

Checkboxes

This screen is made up of various screen elements. It does not exist in the system.

Execute

Pushbutton
I42 (1) (400) iwdf4042 INS

Message

Status bar

SAP AG 1999

03 Basic of Procurement Process Client (Corporate Group)> Company Code (ind acc unit)> Plant (organizational logistics)> Str Loc (IM and PhyInv at this level)> P org (legally response for completing contract)> P grp (buyer) P Org : Plant-specific P.Org / Cross-Plant P.Org (within a CC) / Cross-Company Code P.Org (Do not assign a company code to the purchasing organization) Procurement Cycle : Determination of reqmts > Determination of the source > Vendor selection > PO processing > PO Monitoring > GR > IR > Payment Processing Invoice Verification therefore creates a link between Materials Management and external or internal accounting Invoices that do not reference a purchase order can only be entered with conventional Invoice Verification. PO creation : Manual / refer to PR / RFQ PO Header : document currency, the document date, and the terms of payment. Item Category : defines whether an item requires and/or can have a material no, acc asgmt, GR,IR ( )Standard, (L)Subcontract, (K)Consignment, (D)Service, (U)Stock Transfer, (S)Third-Party Messages : Printout / Dlv Schedule / Expeditor / Reminder / Rejection Letter / Order acknowledge expeditior Movement Type : Together with other influencing factors, the movement type determines which stock or consumption accounts are updated in Financial Accounting. The movement type also determines the format of the screen when you enter documents and how the quantity fields are updated.

04 Master Data Vendor Master : You can block a vendor for an individual material via the source list Account Group controls, Status / Field Selection / Partner Schema / Vendor Sub-ranges or Plant-Specific Data / Type of number assignment / Number interval Partner Roles : Order recipient / the supplier of goods / the invoicing party / the payee. Material type controls : 1. The type of number assignment (internal or external). 2. The permitted number range interval. 3. Which screens are displayed and in which order.

4. Which user-department-specific data (view) is suggested for entry. 5. Which procurement type is permitted for a material 6. determines which accounts are posted

Industry Sector controls : 1. Which screens are displayed and in which order 2. Which industry-specific fields are displayed on each screen

05 Procurement of Stock Material RFQ : Creation manually, refer to PR, refer to another RFQ, refer to outline agreement / Quotation and condition entering / Quotation Comparison + save as market price / Save info record from RFQ / rejection (how to print?) Collective number in the header data of the RFQ

Condition in PO : from contract / info record or extended condition (more flex coz can define criteria must be met if the conditions are to apply to POs) Info Record : Contains data in the combination of mat&Vendor (Current and future prices and conditions, planned Dlv time, Tolerance ) valuated goods receipts : MVT 101 into three stock type Documents: Material Doc and Acc Doc (If the goods movement is relevant to valuation) Inv Ver : Unlike conventional Invoice Verification, Logistics Invoice Verification enables you to post invoices across company codes. One time vendor : entering address at PO / Entering Bank data at Inv Ver Condition : Created in (Quotation / info record / Outline agreement)- time-dependent conditions / PO - time-independent conditions Only in Quotation and Sch Agremnt can define time-dependent or not.

Calculation Schema framwork for price determination 1. Conditions type used 2. Access sequence of condition record. Info Record : General data / P Org data or P org+Plant data : can config to allow the validity for the Porg or plant. IMG > Materials Management > Purchasing > Conditions > Display Condition Control at Plant Level. Text : Info record note (not print) / PO text (print) Info Record : Manually / Quotation / PO / Outline agrmnt

Info Records and Prices

Piece %

Yes

Conditions

No

UNI

Info record
Conditions:
Price/UoM 50 UNI / pc Freight 2%

Info record available? Yes

No Last purchase order: 4500006398

Create purchase order Item 10 Material T-RA120

Manual Price entry

Short text Chromolux 2000

Price ?

SAP AG 1999

In the default values for buyers (Customizing), you can define how the system handles conditions from the last purchase order. IMG > Materials Management > Purchasing > Environment Data > Define Default Values for Buyers > Settings for Default Values Valuation Area : Plant or CC level. Recommend Plant Level (in IMG > Enterprise Structure > Definition > Logistics General > Define Valuation Level) Valuation Class : combine materials for assigning G/L accounts. 1 Material 1 Valuation class Val Clss assigned to Mat type Material Valuation Procedure : price Control Procedure : S and V 06 Procurement of Consumable Material Account Assignment : > Materials Management > Purchasing > Account Assignment > Maintain Account Assignment Categories
Stock Material <=> Consumable Material

Entry of material number required No account assignment category Posting to stock accounts Quantity, value, and consumption updated in material master record Moving average price is adjusted
SAP AG 1999

Entry of material number not required, but is possible Account assignment category mandatory Posting to consumption accounts Value is not updated, quantity and consumption can be updated

Blanket PO : are usually valid for a longer period of time / it is not worth creating a separate purchase order for each procurement transaction / use FO doc type and B item cat / PO no GR IR / Acc assmnt (optional) / no mat no

07 Procurement of External Service Service Master AC01 / Service Condition Service, Service+Vendor, Service+Vendor+Plant Service direct consumption / sometime do not know exact service and cost define value limits. Process : PO Enter Sevice Entry sheet Release , Signoff IR You do not give an exact description of unplanned services or their quantity and price details until you enter them. The system checks whether the unplanned services adhere to the limit defined in the purchase order. You can set up release procedures for service entry sheets. 08 Automate Procurement
Automated Procurement: Overview

Purch. req.

Purch. order

Goods receipt

Invoice receipt

Matls planning

Automatic PO

Shipping notif. notif.

Indicator in purchase order

ERS
Indicator in vendor master

Material master Indicator in: Source of supply, Material master e.g. contract Vendor master Source list

SAP AG 1999

MRP : Planned orders are proposals used for requirements coverage source list : define which sources of supply are allowed or not allowed (block) for a material in a particular plant. (fixed vendors or preferred outline agreements) Source list Creation : Manually / updating info records / outline agreements / Auto (ME05) (info record+contract / info only / contract only) Auto PO : 1. Mat master 2. Vendor master 3. Source of supply in PR 4. Online (ME59) or background Acknowledgements : enable you to plan more accurately by providing you with the actual delivery dates and quantities. evaluated receipt settlement (ERS), This ensures that there are no discrepancies between the goods invoiced and the goods received. You cannot process planned delivery costs with the ERS procedure. In Logistics Invoice Verification, you can create a message for the vendor. MRP : Pur procurement time (IMG > Production > MRP > Plant parameter > Carry Out Overall Maintenance of Plant Parameters / working days according to the factory calendar) + planned dlv time (Mat Master,info rec, contract)+ GR processing time (factory calendar-Mat master or contract)

Reorder Point Planning

Stock

Lot size

Reorder point Safety stock

Reorder point

Delivery time

Time

Replenishment lead time

SAP AG 1999

Reorder point concept : available warehouse stock (purchase orders, firm planned orders, and firm purchase requisitions) VS Reorder point Lot-for-Lot : If you have specified that the exact lot size (lot-for-lot order quantity) is to be used, the system uses the exact shortage quantity as the order quantity in the case of a material shortfall. If there are several goods issues leading to a material shortfall in one day, the system groups the shortage quantity from this day in one order proposal, rather than creating an order proposal for each shortage. Order Confirmation

ERS : 1. ERS set in vendor 2. GR based inv in vendor 3. Tax code in PO

*0 If you do not want a particular material to be settled automatically, you have to exclude the ERS procedure from the info record for the vendor and the material. ??
09 Report in MM
Scope of List and Selection Parameters
The Logistics Data Warehouse in the SAP System

Scope of list ALL : : BEST : : : :

RAHM

Description of scope of list All : Purchase orders : : Outline agreements : : :

OLAP
Business Intelligence
Qty

Online Analytical Processing

Vendor Purch. organization Scope of list Selection parameters Document type Purchasing group Plant Item category Acct assgmt cat. Delivery date Validity key date

T-L05B03 1000 BEST INVOICE

Time

SelParam 1000
A-ERLEDIGT : : INVOICE : : : : GR 101

Descript. Selection parameters

Completed RFQs : Open invoices : : Open goods receipt

DATA WAREHOUSE OLTP

Info structures S001 S012 S... LIS updating Online Transaction Processing S039

SAP R/3

SAP R/2

SAP AG 1999

SAP AG 1999

Info Structure : key figure / Char / Period Early warning system EWS : in OLAP used for looking for any unusual situations and react to and correct these in good time. standard analyses VS flexible analyses : compile and compress key figures
10 ASAP do not read a

11 Conclusion 12 Appendix