Chapter 2

Purchasing, basics

Chapter 2.1

Purchasing, basics
Procurement Environment

Procurement Environment
Order Invoice

MRP

?
7

Invoice verification

Requirement determination

MM
Goods receipt and 6 inventory management
Materials management

Source determination

Order

Order follow-up
4

Vendor selection

Order processing

Central master data in purchasing

Piece. %
conditions

Quota arrangement

60%

40%

Material

Info record

Vendor

Source list
Source list

Vendor

Purchasing requisition

Purchasing Documents
Purchase requisition
RFQ

?
Quotation Quotation

Request for quotation

?
Purchase order

Quotation

Purchase order
Contract

Contract
31. 1.

Scheduling agreement

Purchasing document

Structure of a purchasing document ocument Document header

General data statistics Messages Conditions
Item 1 General data Conditions Texts Schedule line Item 2
...

Additional data for item 1 Purchase order history

...

Additional data for item 2

...

Procurement for stock

Purchasing document(s) Item: no account assignment category

Warehouse
Goods receipt

Goods issue

Material

Production

Vendor

Chapter 2.2

Purchasing, basics
Processing Purchase Requisitions

Purchase requisition processing

MRP Direct entry

Purchase requisition Determine source of supply Release

Vendor

o.k.
Allocate and process
RFQ Purchase order

Release order

Data flow
Material

Text _________ _________ _________ _________

Material

Vendor

Text Purch.info record Source list Outline agreement Quota

P Req

Outline agreem. Quotation

Purchase
order

Item category
Purchasing document
A B C

Item Account assign. category category

Account assignment category

Purchasing document
A B C

Item category

Acct.assign. category

Account Assignment
Stock material Consumable material with material master record Without material master record With material master record

Account assignment

With account category

Enter account category

Automatic account assignment Data from material master record

Manual account assignment User must enter data

Consumption account Stock account Asset account

Account Assignment Categories

No account assignment A C Asset Sales order Production order Cost center Project All auxiliary account assignments Unknown account assignment

F
K P

X
U

Chapter 2.5

Purchasing, basics
Processing Purchase Orders

Processing Purchase Orders

Purchase requisition RFQ Reference document

Contract

?
Vendor
Purchase order Order history

Pcs

%
Conditions

One-time vendor

$
Info record

Chapter 2.6

Purchasing, basics
Goods Receipts w. Purchase Order Reference

Determining the purchase order during GR

Goods receipt for purchase order
Manual

Purchase Manuell order

Matchcode

List of open purchase orders by - vendor - material - delivery plant

Under- and Overdelivery

Purchase order quantity 100
Underdelivery tolerance 10% Overdelivery tolerance 20%

70

80

90

100

110

120

130

140

Underdelivery warning

No message within the tolerance range

Overdelivery error message

Setting the "Delivery Completed" Indicator

Set "delivery completed" indicator

Purchase order

In the purchase order

at time of goods receipt

Effects of a goods receipt posting

Material document Accounting document G/L accounts: Stock account Consumption account ...
Goods receipt

Stock quantity Consumption statistics ... Point of consumption Cost center Order ... Purchasing data: Purchasing item Purchase order history ... Warehouse mgmt: Transfer requirement

Goods receipt slip

R/Mail to the order placer Quality management: Inspection lot

Chapter 3

Purchasing, more features

Chapter 3.1

Purchasing, more features

Processing Consumable material

Procurement for consumption

Purchasing document(s) Item: with account assignment category

Goods receipt

Production

Vendor
Material

Account Assignment
Stock material Consumable material with material master record Without material master record With material master record

Account assignment

With account category

Enter account category

Automatic account assignment Data from material master record

Manual account assignment User must enter data

Consumption account Stock account Asset account

Account Assignment Categories

No account assignment A C Asset Sales order Production order Cost center Project All auxiliary account assignments Unknown account assignment

F
K P

X
U

Item Category in the Purchase Order

Optional

Items / item category

Stock material

Consumable material
Standard item Consignment item Third-party

Single/multiple account assignment Mandatory

- Cost center - Project - Sales order - Asset

Multiple Account Assignment

Purchase order
Account assignment item Quantity Cost center

1 10. Swivel chair 12 pcs 20. 30. 3 2

2 6 4

40.

Chapter 3.2

Purchasing, more features

Release of purchasing documents

Release Approval Procedure

Release conditions
Value Material group Account assignment category Plant

Release strategy
Number of release points Sequence of release points Release indicator

Release indicator
Released / blocked for ordering Released / blocked for RFQ Fixed / not fixed for MRP

Chapter 3.3

Purchasing, more features

Choosing vendors and establishing agreements

Purchase BestellBestellrequisition abforderung abforderung

Allocating and Processing Requisitions

List of selected requisitions Outline agreement
Piece

Phase of allocation to a specific vendor to a specific agreement flag for RFQ processing

%
Source list
Conditions

Info record
List of all allocated requisitions

Generate Purchase orders, release orders, or delivery schedules

Change Purchase requisitions with change document

Generate Requests for quotation (RFQs)

How is the Source Determined?

1
60%

Quota arrangement

40%

?
Vendor

Source list?
Source list

Purchase requisition

Agreement item Fixed vendor

Outline agreement?

Purchase requisition

Agreement item

Info record
Piece

%
Conditions

Purchase requisition

Fixed vendor

Outline Agreement Request

Direct requisition

Outline agreement requisition

Contract Approval O.K. Scheduling agreement

Outline Agreements
Contract
Quantity contract

Release order

Value contract

Scheduling agreement

Delivery schedule
_____________________

Item Category in Contract

Contract

Items / item category

Stock material
Standard item Consignment item Material unknown Material group

Optional

Single/multiple account assignment

Consumable material mandatory - Cost center - Project - Sales order - Asset - Unknown