meljun cortes materials management transactions
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MELJUN CORTES Materials Management TransactionsTRANSCRIPT
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Unit 12
Materials Management (MM)
- Transactions -
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Business Process Integration
MM
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Transaction Data
• Includes internal and external exchanges that describe business activities
• Unlike master data, aggregate transactional data is dynamic – each transaction is unique
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R/3
FIFinancialAccounting
COControlling
PSProjectSystemWF
WorkflowISIndustrySolutions
MMMaterials Mgmt.
HRHumanResources
SDSales and Distribution
PPProductionPlanning
QMQualityMgmt.PM
Plant Maintenance
SMServiceMgmt.
Client / ServerIntegrated BusinessSolution
ECEnterpriseControlling
AMFixed AssetsMgmt.
Materials Management (MM)
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Procurement Process (Procure-to-Pay)
Purchase Requisition
Paymentto Vendor
Notify Vendor
VendorShipment
InvoiceReceipt Goods
Receipt
Purchase Order
3-WayMatch
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Basic Procurement Process
• Requirements Determination - Purchase Requisition
• Vendor Selection• Order Processing - Purchase Order • Order Tracking • Goods Receipt and Inventory Management• Invoice Verification• Payment
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Purchase Requisitions
• Internal document• Requesting a certain quantity of material or
service on a certain date• Can be created: – Manually– Automatically (Materials Requirements Planning
(MRP), sales orders, etc.)• Release approval procedures are optional
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Purchase Requisitions Sources
• Manually created by user department– Office supplies– Projects– Prototype materials
• Automatically created by– Planning (Material Requirements Planning (MRP),
Master Production Schedule (MPS))– Plant Maintenance– Production Orders– Sales Orders
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Purchase Requisitions Processing
• Create purchase requisition (manually or automatically)
• Determine source of supply• Release procedure (optional)• Assign vendor and process
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Purchase Requisitions Creating
• Default data for line items– Delivery dates, plants, purchasing groups, etc.
• Maintain line item data– Materials, quantities, delivery dates, etc.
• Maintain account assignment (if required)– Cost center, General Ledger accounts, project
number, etc.• Check data• Save
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Purchase Orders
• Purchase Orders are:– A formal request to a vendor to provide materials
or services– An internal planning and tracking tool
• Purchase Orders identify:– Vendor– Material and/or service– Quantity and price– Delivery dates– Terms of payment
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Purchase Order StructureHeader
• Header - information specific to the entire purchase order– Vendor– Currency– Payment terms
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Purchase Order StructureLine Items
• Line item details– Account assignment– Delivery schedule– Materials or services quantity– Price – Description– Item category
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Purchase Order
• Request for Quotations• Purchase Order• Order Acknowledgment
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Purchase Order – Output Format
• Printed and mailed• E-mail• Electronic Data Interchange (EDI)• Faxed (hardcopy or electronic)• eXtensible Markup Language (XML)
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Goods Receipt
• Goods receipt with reference to a purchase order– Copy data from purchase order– Delivery notification– Invoice verification– Updates purchase order history– Inventory update– Automatic update of General Ledger (G/L)
accounts
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Goods Receipt (continued)
• You can search for the purchase order number with– Material number, vendor number, etc.
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Goods Receipt – Destinations
• Stock - given a storage location, can be posted to three different stock statuses– Unrestricted-use– Quality inspection– Blocked stock (valuated)
• Consumption - can be assigned a recipient or unloading point
• Goods receipt for blocked stock - updates inventory, but material is not valuated (conditional acceptance)
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Goods Receipt – Movement Types
• Movement types - stock transactions– Goods receipt– Goods issue– Stock transfer
• Movement type determines which– Quantity fields are updated– Stock types are updated– General Ledger (G/L) stock or consumption
accounts are updated– Fields are displayed during document entry
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Goods Receipt – Movement Types (continued)
• 101 - goods receipt for purchase order into warehouse/stores
• 102 - reversal of goods receipt for purchase order into warehouse/stores
• 122 - return delivery to vendor • 501 - receipt w/o purchase order into
unrestricted-use stock
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Goods Receipt – Account Postings
• Inventory account is debited at standard price• Goods Receipt/Inventory Receipt (GR/IR)
clearing account is credited at purchase order price
• Price difference account is debited (credited) with difference between standard price and purchase order price
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Goods Receipt – Effects
• Purchase Order (PO) history and Purchase Order (PO) updated
• Material Master - stock and value updated• Notification of goods receipt issued (optional)• Transfer request to Warehouse Management
system (if active)
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Goods Receipt – Effects (continued)
• Material and financial documents created and/or updated
• Stock and consumption accounts updated• Inspection notification in Quality Management
(QM) - if active
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Invoice Verification
• Matches the vendor’s invoice to the purchase order and the goods receipt (3rd part of 3-way match)
• Matches price and quantity• Updates the purchase order and its history• Updates accounting information
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Invoice Payment
• Selects invoices for payment based on the payment terms in the vendor master or purchase order
• Generates payment for released invoices• Updates accounting information
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3-Way Match for Payment
PurchaseOrder
GoodsReceipt
InvoiceReceipt
Debit Credit
PaymentProgram
Verification
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Accounts Payable Settlement Process
• Determines:– Open items to be paid– When they will be paid– Bank from which payment will be made– Payment medium– Who will get paid
• Payment process creates a financial accounting document to record the transaction
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Goods Receipt / Invoice ReceiptReconciliation Account
Purchase requisition
Purchase orderMaterials Management (MM) and Financial Accounting (FI)via automatic account assignment
Goods receipt
No impact onFinancial Accounting (FI)
Dr Cr
Inventory
$100
Dr Cr
GR / IR
$100
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Goods Receipt / Invoice ReceiptReconciliation Account
Amount owed isassigned and transferred tovendor account payable
Invoice receipt
Dr Cr
Vendor A/P
$100
Dr Cr
GR / IR
$100
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Vendor Payment
Amount owed is paid tovendor and account payable is reduced
Bank
Dr Cr
Vendor A/P
$100
Dr Cr
Bank
$100
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(FI – MM) Integration Points
Invoice Receipt
Payment Program
Goods Receipt
AP (Vendor)
Dr Cr
GR / IR
$100
BankDr Cr
Inventory
$100 $100 $100 Dr CrDr Cr
$100 $100
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Automatic Account Assignment
• Debit posting $100• BSX - inventory
posting to trading goods inventory account 201XXX
• Credit posting $100• WRX goods receipt
posting to GR/IR account 310XXX
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Unit 12 – Exercises
100. Create Purchase Order for Slick Pens101. Create Purchase Order for Premier Pens102. Create Purchase Order for Promotions, Ltd.103. Create Goods Receipts for Purchase Orders104. Create Invoice Receipts from Vendors105. Post Payment to Vendors106. Display Vendor Line Items