Purchasing

2008 by SAP AG. All rights reserved.

Procurement Process
(Procure-to-Pay)

Integration

Purchase Requisition

Purchase Order

Notify Vendor Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt
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January 2008

SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

Purchasing Process
Create Purchase Requisition Where analysis/vendor selection occurs Create Purchase Order from Requisition Requisition items can be used to generate multiple purchase orders Create Goods Receipt Create Invoice Receipt Post Outgoing Payment Unfortunately, there is no purchasing document flow
2008 by SAP AG. All rights reserved. 3

Procurement Process
Purchase Requisition Goods Receipt Purchase Order

Internal Demand

Vendor

Customer

Invoice Receipt
Pay Invoice
2008 by SAP AG. All rights reserved.

Procurement Process
(Procure-to-Pay)

Purchase Requisition

Purchase Order

3-Way Match Payment to Vendor Invoice Receipt

Notify Vendor

Vendor Shipment Goods Receipt

5

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

Vendor Master Data

Master records must be created for every vendor Contains centralized data for both MM and FI, can be created in MM and FI modules, or centrally Vendor Master Data is pulled from database when creating Purchase Orders
Vendor Master Data Payment Terms

Accounting Purchasing Master Master Records Records

2008 by SAP AG. All rights reserved. 6

Vendor Master Data

General Data: Client-level data: Applies to all company codes and purchasing organizations Name, address, phone numbers, language Company code data Accounting data: Currency used, payment terms, reconciliation account (a vendor is a creditor of the enterprise) Purchasing data Data important for purchasing (contact persons, delivery terms) Maintained at purchasing organization level
2008 by SAP AG. All rights reserved. 7

Partner Roles
In the procurement process, there may be different business partners for different roles in the transaction. These partner roles are defined in vendor master data
Ordering Address Invoice Presented By

Vendor

Goods Supplier

Payment Received By
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2008 by SAP AG. All rights reserved.

Material Master Data

An advantage of the SAP system is that it maintains one set of data in real time. Material data is used by many functional areas. In the SAP system, there is one set of related data for each material. With non-integrated systems, each system may contain material data, and this data is not always consistent. In the SAP system, the data is consistently correct or incorrect. Material Master data is organized by Views. Depending on the type of material, only certain views need to be used. As the system is configured, additional views can be added as necessary. Many Material Master views are plant-specific

2008 by SAP AG. All rights reserved.

Material Master Views

Basic Data 1 Basic Data 2 Classification Sales: Sales Org Data 1 Sales: Sales Org Data 2 Sales: General/Plant Data Foreign Trade: Export Data Sales Text Purchasing MRP 1 MRP 2 MRP 3 MRP 4 Forecasting Work Scheduling

General Plant Data/Storage 1 General Plant Data/Storage 2 Warehouse Management 1 Warehouse Management 2 Quality Management Accounting 1 Accounting 2 Costing 1 Costing 2

Basic Data, Classification are not plant-specific Other views are plant-specific
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2008 by SAP AG. All rights reserved.

Material Master Views

Basic Data View NRG-A Bars
Base unit: CS Gross wt: 72 lb.
Non-plant specific Plant specific

Plant 1000 NRG-A Bars

Lead Time: 2 days Std. Price: 216.80

Plant 2000 MRP Views NRG-A Bars

Lead Time: 3 days Std. Price: 223.20

2008 by SAP AG. All rights reserved.

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Purchasing Info Record

Provides continuously updated information about the relationship of a specific material with a specific vendor Provides default information for purchase orders

Material
Purchasing Info Record
2008 by SAP AG. All rights reserved.

Vendor

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Purchasing Info Record

Contains: Current price and delivery costs for purchasing organization or plant Number of last purchase order Purchase order price history Tolerance limits for over/under deliveries Planned delivery time for material Vendor evaluation data

2008 by SAP AG. All rights reserved.

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Purchasing Info Record

Purchasing info records can be created directly, as we will do in this class, or can be created automatically when a purchasing document (e.g. purchase order) is created or changed. The Purchasing Info Record can be created automatically from a purchase order if the Info Update indicator is set. Conditions is SAPs term for pricing, which can include discounts, freight costs, surcharges, etc.

2008 by SAP AG. All rights reserved.

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