5/12/2020

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SAP

Purchase Requisition Processing

May 12, 2020 1

Welcome!

Housekeeping

• Attendance Sheet

• Washrooms

• Fire exits

Expectations

• Ask questions

• One speaker at a time

• Respect others

• Turn off /silence phones

• Computers are for course

exercises

• Have fun!

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Objectives

After completing this course, you should be able to:

– Describe SAP ordering methods

– Describe order types and their uses

– Customize purchase requisition settings

– Search for materials

– Determine if material is ordered from a warehouse or vendor

– Create orders for materials and services

– Generate a list of existing purchase requisitions

– Describe the SAP release strategy and approval workflow

– Change a purchase requisition

– Confirm received services

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SAP Terms

Refer to the “Terms & Concepts” sheet

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Module 1

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Getting Started with Ordering

After completing this module, you should be able to:

– Describe SAP ordering methods

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Supply Chain Master Data

Material Master Records

Purchasing Info Records

Contracts

Source Lists

Vendor Purchasing Data

Material Master Records

In SAP, each material and service the

Winnipeg Health Region orders is:

– Referred to as a “material”

– Assigned a unique SAP material number

that has a corresponding material master

record in the system

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Material Types

• SAP organizes material master records by material type –

a group of materials with the same basic attributes

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Physical Materials Services

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Ordering Materials and Services

• Orders created using SAP identify the material or service

and contain specific information from the material master

record

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• Base unit of measure

• Material Description

• Material Group

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Physical Material Stock and Non-Stock

• At the site and department levels, physical materials are

broken down into two types

– Stock

– Non-stock

• Stock and non-stock materials may be ordered from a plant

warehouse or an external vendor

• Services that are not provided internally are ordered from

an external vendor

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SAP Ordering

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Requisitioning Inventory Management

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Inventory Management (IM)

• In IM, materials regularly ordered and used by an area are

maintained as inventory in a storage location (SLoc)

• For each physical stock material kept in an SLoc, certain

information is maintained in SAP, including:

– A maximum quantity (MAX) to be stocked in storage

– A reorder point (ROP) that determines when the material needs to

be reordered

– An assigned bin location to store the material

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Inventory Management

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Material Requirements Planning (MRP)

• For each SLoc, SAP’s Material Requirements Planning

(MRP) functionality runs automatically according to a set

schedule, and:

– Determines the stock that needs to be replenished

– Calculates the replenishment quantity

– Creates an order to replenish the stock

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Requisitioning

• Requisitioners use SAP to create a variety of order types

for materials and services

• The order type depends on where the material or service is

ordered from:

– An external vendor

– A plant warehouse

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Requisitioning Cycle

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Requisitioner

Accounts

Payable

Approver

Receiver

Buyer

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Review Questions

1. What are the two SAP ordering methods?

2. How are physical materials (stock and non-stock) and

services ordered?

3. What two ways can orders be created in SAP?

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Module 2

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Getting Started

After completing this module, you should be able to:

– Describe order types and their uses

– Customize purchase requisition settings

– Search for materials

– Determine if material is ordered from a warehouse or vendor

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Creating Orders in SAP

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Requisitioner-generated

– Materials from the plant warehouse or a vendor

– Services from a vendor

System-generated (IM-MRP)

– Materials from the plant warehouse or a vendor

to replenish SLoc stock only

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Purchase Requisition Document Types

• A variety of SAP purchase requisition types, known as

document types, can be created to order materials and

services from a vendor source

– A document type must be

specified in SAP each time

a purchase requisition is

created

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Purchase Requisitions

• Purchase requisitions contain a number of fields and tabs

that are organized into three main areas

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Purchase Requisition Area Important Fields And Tabs

Header Field:

• Header Note

Item Overview Field:

• Account Assignment Category*

• Item Category*

• Material*

• Quantity*

Item Detail Tab:

• Account Assignment tab*

• Source of Supply tab

• Delivery Address tab*

• Texts tab

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May 12, 2020

T-code: ME53N Display Requisition

• Refer to job aid:

−Display a Purchase Requisition

Activity 1: Demo

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Preparing to Create Purchase Requisitions

• Before you create purchase requisitions, your SAP settings

need to be customized

– Ensures that only the relevant data fields display in the SAP

create requisition window

– Reduces data entry effort

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May 12, 2020

T-code: ME51N Customize Purchase Requisition Settings

• Refer to job aid:

−Customize Purchase Requisition Settings

Activity 2: Exercise

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Searching for Materials in SAP

• Before you order a material or service using SAP:

– Perform a search in the system to determine if the material or

service has been assigned a corresponding material number

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• Material searches can be

performed in a number of ways,

including from directly within the

ordering t-code

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May 12, 2020

T-code: ME51N Search for Material

• Refer to job aid:

−Search for a Material or Material Group Number

Activity 3: Exercise

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Determining the Order Type

• Always check to see if a material is available from your

plant warehouse first, to determine if it is ordered:

– Internally from your plant warehouse

– Externally from a vendor

• Requests can be made to have a material extended to a

plant for ordering

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May 12, 2020

T-code: MM03 Determine Order Type

• Refer to job aid:

−Determine Order Type

Activity 4: Exercise

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Display Stock of Materials

• SAP can be used to display the current quantity on-hand for

a material at:

– A plant warehouse

– Storage locations (SLocs) within the plant

– SLocs within the Winnipeg Health Region

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May 12, 2020

T-code: MB52 Display Warehouse Stocks of Materials

• Refer to job aid:

−Display Warehouse Stocks of Materials

Activity 5: Exercise

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Review Questions

1. What should you do before ordering a material or a

service?

2. Why should you always check to see if the material that

you want to order is available from the warehouse before

creating an order?

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Module 3

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Ordering Materials and Services

After completing this module, you should be able to:

– Create orders for materials and services

– Generate a list of existing purchase requisitions

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Ordering Materials from a Vendor

• If a material is not available from the plant warehouse, it is

ordered from an external vendor

• Always perform a search to ensure you create the order

using an SAP material number

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Ordering Materials from a Vendor

• Some vendor catalogs can be accessed online directly from

within the ME51N screen in SAP to make

– Search and select items to order from their website

– Items will populate into the purchase requisition

• Standard requisition approval process applies

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Ordering Free Text Materials

• A “free text” requisition can be created to order materials

that do not have an assigned SAP material number

• Drop-downs menus are used to search for the applicable

entry in the requisition fields:

– Material Group

– Purchasing Group

– Source of Supply (Desired Vendor)

– Address

– Unit of Measure

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! A realistic valuation price is

required for a free text request.

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May 12, 2020

T-code: ME51N Create a Purchase Requisition (Vendor)

• Refer to job aid:

−Create a Purchase Requisition

−Purchase Requisition Reference

Activity 6: Exercise

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Suggested Order Unit

• A prompt appears when the ordered quantity in a purchase

requisition does not match the Winnipeg Health Region

standard purchase unit of measure

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Purchase Requisition Templates

• Templates can be created for purchase requisitions so that

they can be used

– As reference to create future identical purchase requisitions,

which reduces the amount of data entry required

– For recurring purchase requisitions

– To maintain a list of defined materials

• Templates can be saved for personal or public usage

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– Public templates are useful for areas where

multiple requisitioners create similar orders

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T-code: ME51N Create a Purchase Requisition (Template)

• Refer to job aid:

−Create, Save, and Load a Personal Requisition Template

−Create a Purchase Requisition

Activity 7: Exercise

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Purchase Requisitions for Services

• If an SAP material number does not exist for a service:

– Create a free text purchase requisition

– Select the Material Group associated with the service

• The material group triggers SAP to request confirmation

that a service is received after the vendor invoice is entered

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SAP Material Numbers

for Service Listing

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Service Approver

• After the vendor invoice is entered in SAP, a “Service

Approver” must confirm if the service was received

• The Service Approver’s SAP user ID must be identified in

the Requisitioned By field within the purchase requisition

– SAP validates the user ID entered into the field

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May 12, 2020

T-code: ME51N Create a Purchase Requisition (Service)

• Refer to job aid:

−Create a Purchase Requisition

−Search for a Material or a Material Group Number

−Purchase Requisition Reference

Activity 8: Exercise

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Ordering from the Plant Warehouse

• If a material is available from the plant warehouse, it can be

ordered directly from the plant warehouse

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Warehouse

HSC

Purchase Requisition

T-Code ME51N

Non-HSC

Reservation

T-code MB21

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May 12, 2020

T-code: ME51N Create a Purchase Requisition

(HSC Warehouse)

• Refer to job aids:

−Create a Purchase Requisition

−Purchase Requisition Reference

Activity 9: Exercise

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Reservation

Non-HSC sites only

• A reservation is created to order material from within a non-

HSC plant warehouse

• Includes both:

– Stock

– Non-stock

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Reservation Movement Types

Non-HSC sites only

• A movement type must be selected in SAP each time a

reservation is created to track material goods movement

– A unique three-digit number identifies each movement type

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# Movement Type

201 Non-stock material expensed to a cost center

261 Non-stock material expensed to an internal order

311 Stock material transferred into receiving SLoc

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May 12, 2020

T-code: MB21 Create a Reservation

• Refer to job aid:

−Create a Reservation

Activity 10: Exercise

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Reservation Changes

• A requisitioner-generated reservation can be changed for

the following reasons:

– Increase or decrease item quantity

– Delete an item

• Changes can only be made for “open” reservations – those

that have not already been filled by the warehouse

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T-code: MB22 Change/Delete a Reservation

• Refer to job aid:

−Change/Delete a Reservation

Activity 11: Exercise

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Additional SLoc Stock Material

• Stock materials for an SLoc are ordered via MRP after a

unit stock count is entered into SAP

– Enter a zero count into SAP if you need extra

– Submit a Site Inventory Change Request Form to adjust

the MAX/ROP

Site Inventory

Change Request

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Additional SLoc Stock Material

• An order can be created to order stock material in excess of

your MAX for exceptional situations:

– To satisfy a one-time need (e.g. for a specific patient)

– To maintain inventory levels for a specific period of time

(e.g. long weekend)

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Display and Order Materials

• You can generate a report to display materials by material

number and plant number, or use additional search criteria.

• Requisitioners can use the report to,

– Order non-stock materials

– View available stock

– View vendor contracts

– View material images, if available

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Complete the ZMM_MATORDER SAP Byte

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List Display of Purchase Requisitions

• You can display a list of purchase requisitions in SAP based

on specified search criteria, such as:

– A requisitioner

– Storage location (SLoc)

– Cost Center

– Material

– Date

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May 12, 2020

• T-code: ME5A List Display of Purchase Requisitions

• Refer to job aid:

−Display Purchase Requisitions

Activity 12: Demo

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Material Returns

• There are a number of reasons why a material may need to

be returned, for example:

– Damage prior to delivery

– Errors in ordering or shipping

– Patient transferred or discharged

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Returns

Reference Guide

• Information about material returns

is available on Insite

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Review Questions

1. How are orders created for materials that do not have an

SAP material number?

2. When creating a purchase requisition for a service, whose

SAP user ID must be identified in the Requested By field?

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Module 5

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Purchase Requisition Approval and Maintenance

After completing this module, you should be able to:

– Describe the SAP release strategy and approval workflow

– Change a purchase requisition

– Confirm received services

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SAP Release Strategy

• After a purchase requisition is saved, each line item

undergoes an approval process based on its dollar value

– Applies to requisitioner-generated vendor orders only

– Does not apply to requisitioner-generated warehouse orders

and MRP-generated requisitions

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Origin Order Type Approval Required

Requisitioner Vendor Yes

Requisitioner Warehouse No

System (MRP) All No

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Requisition Approval Levels

• The release strategy includes seven approval levels

– With corresponding maximum dollar value signing authorities

– Maintained in SAP

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SAP Release Strategy

• After you create and save a purchase requisition, SAP:

– Identifies the person(s) who will be the approver(s)

– Initiates the approval workflow

– Sends an email to notify the approver, which directs the

approver to the Business Workplace t-code in SAP

• Depending on the cost of the line item, the process may

require multiple approvals

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SAP Requisition Approval Workflow

• SAP identifies the approver(s) for a requisition line item

based on the:

– Dollar value of the material or service

– Cost center or internal order

– HR org structure (standard - NB)

– Custom table (special purpose account - ZSPF)

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Capital Requisition Approval

• Initial capital approvals are obtained outside of SAP

– Once obtained, a capital requisition (ZCAP) can be created

• Capital requisition approval workflow involves a maximum

of two approvals that are not based on cost

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The Business Workplace

• Requisitioners and approvers can both access the SAP

Business Workplace

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REQUISITIONERS APPROVERS

• View purchase requisition

approval/rejection messages

• Edit rejected purchase

requisitions

• Confirm received services

• View purchase requisition

approval work item messages

• Approve and reject purchase

requisitions

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Approval Workflow Escalation

• SAP workflow automatically escalates a purchase

requisition to the next approver:

– If the item is not acknowledged within a certain timeline

– To prevent delays in the approval process

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Monday Tuesday Wednesday Thursday Friday

1 2 3 4 5

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Approval Workflow Messages

• After an approval workflow is complete, the requisitioner:

– Will receive email notification indicating the result

– May access the SAP Business Workplace to view details

– Edit and resubmit a rejected requisition for approval (if the

rejection reason can be resolved)

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Changing a Requisition

• An existing purchase requisition can be changed in SAP

when a required update is identified, such as:

– Quantity

– Delivery address

– Cost Center

– Internal order

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HSC Requisitioners: will be notified by email if a

requisition created for a warehouse material cannot be

converted into an order, and will be required to make any

necessary corrections.

!

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Release Status

• The status of a requisitioner-generated requisition can be

viewed in the Release Strategy tab in the Change

Purchase Requisition screen

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May 12, 2020

T-code ME52N: Change Purchase Requisition

• Refer to job aid:

−Change a Purchase Requisition

Activity 13: Exercise

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Accounts Payable (AP) Service Workflow

• The Accounts Payable (AP) Service Workflow is used to

automate the goods receipt process for services

• After AP enters a vendor invoice for a service created on a

purchase order, a workflow is triggered to seek confirmation

that the service was received

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Confirm, Hold, or Reject Service

• Service Approver identified in the purchase requisition

receives an SAP-generated email notification in Outlook

– Service Approver is directed to the SAP Business Workplace

to make a selection for invoiced services

– Reminder emails are sent every 3 days until action is taken,

or 60 days have elapsed

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Confirm Reject Hold

AP Service Workflow Escalation

• An escalation email is sent directly to the AP processing

clerk and Buyer every 10 days until the Service Approver

takes action, or 60 days have elapsed

– If the Service Approver does not take action within 60 days,

the item is removed from the Service Approver’s inbox

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M T W TH F M T W TH F M

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Service Items On Hold

• Escalation is stopped for service items that are On Hold

– Service Approver receives a reminder in the Business

Workplace if an item is on hold more than 10 business days

Note: It is important to review your SAP in box regularly to

confirm or reject your service items!

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Hold

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T-code SO01: Business Workplace (Confirm Received Services)

• Refer to job aid:

−Confirm, Reject, or Hold Services

Activity 14: Demo

Review Questions

1. What kinds of purchase requisitions undergo an approval

process?

2. What process is in place to prevent delays in purchase

requisition approval?

3. What happens if a service workflow item is not confirmed

or rejected after 60 days?

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Course Summary

Having completed this course, you should be able to:

Describe SAP ordering methods

Describe order types and their uses

Customize purchase requisition settings

Search for materials

Determine if material is ordered from a warehouse or vendor

Create orders for materials and services

Generate a list of existing purchase requisitions

Describe the SAP release strategy and approval workflow

Change a purchase requisition

Confirm received services

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On-the-job Support

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Insite (SAP)

Quick Reference Non-HSC SAP Help Menu

New User Support Guide

Quick Reference HSC

May 12, 2020

Please Complete the Survey. Thank You!

https://www.surveymonkey.com/r/SAPILT

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