ERP Work Group AssistanceMaterial Management (MM)Process of Procurement

Course GoalCourse Goals

Course GoalsCourse Objectives

Course ContentUnit 7Procurement of ExternalServicesUnit 8Automated ProcurementUnit 9Reporting in MMUnit 10SAP ProjectImplementation withASAPUnit 11ConclusionUnit 1Course OverviewUnit 2Getting StartedUnit 3Basics of ProcurementProcessUnit 4Master DataUnit 5Procurement of StockMaterialUnit 6Procurement ofConsumable MaterialPreface

Material Management (MM)Process of ProcurementBasics of Procurement Process

ContentBasics of Procurement Process: Unit

Unit Objectives

Business Scenario

Organizational Level in Procurement Process

ClientlThe client is a commercial, organizational unit withinthe R/3 System, with its own data, master records, andset of tables.lFrom a business perspective, the client forms acorporate group.

Company CodelThe company code is the smallest organizational unitfor which you can have an independent Accountingdepartment within external Accounting.lA company code represents an independentaccounting unit, for example, a company within acorporate group (client).

Plant

Storage Location

Organizational Level in Inventory Management

Purchasing Organization / GroupPurchasingorganization

Plant-Specific Purchasing OrganizationPurchasingPurchasingorganization 1organization 1Company codePlant 2Plant 2Plant 1Plant 1PurchasingPurchasingorganization 2organization 2

Cross-Plant Purchasing OrganizationPurchasingorganizationCompany codePlant 2Plant 2Plant 1Plant 1

Cross-Company-Code Purchasing Organization

Procurement Cycle

Purchase Order

Goods Receipt

Invoice Processing

Organizational Levels at IDES

IDES: Overview

Purchasing at IDES

Purchase Order

Purchase Order Format

Item Category

Issuing Messages

Goods Receipt for Stock Material

Movement Type: Examples

Information in an Invoice

Invoice Verification with Reference to PO

Reference to Purchase Order

Unit Summary

Material Management (MM)Process of ProcurementMaster Data

Content

Unit Objectives

Business Scenario

Master Data in the Procurement Process

Material Master Data

Data that is valid for the whole company:For example, material no., material short text, materialgroup, base and alternative units of measure, ...Data that is valid within one plant:For example, purchasing data, MRP data, forecastingdata, work scheduling data, ...Data that is valid for one storage location:For example, storage bin description, picking area, ...Material Master: Organizational Level

Vendor Master Record: Organizational Level

Vendor Master Data

Maintaining a Material Master Record: Screens

Material Type

Industry Sector

Data Screens in Material Master Maintenance

Extending the Material Master Record: Example

Entry Aids in Material Master Maintenance

Vendor Master Record: Account Group

Reconciliation Account for Vendor Master Record

Partner Roles

Creating a Vendor Master Record with Reference

Unit Summary

Material Management (MM)Process of ProcurementProcurement of Stock Material

Contents

Unit Objectives

Business Scenario

RFQ / Quotation

Conditions

Purchasing Info Records

Valuated Goods Receipts

Documents for Goods Movements

Logistics Invoice Verification

One-Time Vendor

Collective Number

Function Process: Creating RFQs

Quotation Processing

Conditions

Calculation Schema

Structure of the Purchasing Info Record

Options for Maintaining Info Records

Updating an Info Record Automatically

Info Update Indicator: Quotation, Outline Agreement

Info Update Indicator: Purchase Order (ME21N)

Info Records and Prices

Stock Overview

Valuation Area

Valuation Class

Material Valuation Procedures

Material and Accounting Documents

Valuation of Goods Receipts

Example: Posting at Standard Price (1)

Example: Posting at Standard Price (2)

Example: Posting at Standard Price (3)

Example: Posting at Moving Average Price (1)

Example: Posting at Moving Average Price (2)

Example: Posting at Moving Average Price (3)

Transfer Postings

Effects of a Goods Receipt

Delivery Costs

Account Postings for Planned Delivery Costs

Unit Summary

Material Management (MM)Process of ProcurementProcurement of Consumable Material

Contents

Unit Objectives

Business Scenario

Purchase Requisitions

Converting Purchase Requisitions

Consumable Material

Account Assignment Objects

Procurement for Consumption

Stock Material Consumable Material

Blanket Purchase Orders

Sources of Purchase Requisitions

Creating a Purchase Requisition

Multiple Account Assignment (e.g. Cost Centers)

Processing Purchase Requisitions

Copying Purchase Requisition Data to the PO

Standard Procurement for Consumable Material

Blanket Purchase Orders

Procurement via Blanket Purchase Order

Characteristics of Blanket Purchase Orders

Advantages of Blanket Purchase Orders

Unit Summary

Material Management (MM)Process of ProcurementProcurement of External Services

Contents

Unit Objectives

Business Scenario

Procurement of External Services Cycle

Service Master Record

Defining Price via Master Conditions

Stock Material Services

Purchasing Document Layout

Service Specifications in the Purchasing Document

Service Entry and Acceptance

Invoice Verification for Entry Sheet

Purchase Order History

More Information on External Services

Unit Summary

Material Management (MM)Process of ProcurementAutomated Procurement

Contents

Unit Objectives

Business Scenario

Automated Procurement: Overview

Materials Planning Procedures

Overview of Materials Requirements Planning

Contracts

Source List

Automatic Generation of Purchase Orders

Order Acknowledgements

Evaluated Receipt Settlement

Automatic Payment Program

Reorder Point Planning

Net Reqmts Calculation in Reorder Point Planning

Static Lot-Sizing Procedures

Types of Contract

Processing Source Lists

Creating Source Lists Automatically

Materials Requirements Planning

Calculation of Deadlines

Format of the Stock/Requirements List

Purchase Req . with Assigned Source of Supply

Release Documentation

Shipping Notification and Goods Receipt

ERS Procedure:Prerequisites

ERS Procedure: Execution

Unit Summary

Material Management (MM)Process of ProcurementReporting in MM

Contents

Unit Objectives

Business Scenario

Standard Reporting

Scope of List and Selection Parameters

SAP Logistics Information System (LIS)

The Logistics Data Warehouse in the SAP System

Logistics Data Warehouse

From Document to Analysis

Reporting in the LIS

Reporting in Standard Analyses

Unit Summary