1. North Carolina Department of Public Instruction Transportation Services December 2014 Craig Warren Transportation Consultant Inventory Training Module 3 Inventory Order Processes

2. Order Creation Determine Order / Delivery Schedule Utilize Vendor Parts Catalogs Vendor Price Sheets Warranty Documents BSIP Transaction NCDPI Transportation Services December, 2014 INVENTORY TRAINING MODULE 3 Inventory Order Processes

3. Order Dates / Delivery Schedule Determine the day orders can be placed and the delivery timeframe in order to streamline the process and help reduce frequency of ordering and inventory quantities on hand.

4. Parts Catalog Electronic or paper catalogs are recommended to insure the correct parts are ordered and to assist when cross reference guides or specific warranty information is needed.

5. Price Lists Contract Vendors are required to supply pricelists to LEA’s and it is recommended that you request them from non- contract vendors in order to maintain consistent pricing. Price levels depend on quantity but many times better pricing can be achieved through negotiation or repeat business with a vendor. Example: List Price, Wholesale, Jobber Price

6. Freight Cost Understand the related shipping cost for all vendors used to reduce or eliminate freight cost entirely. This is easily determined on state contracts but can be arranged with non contract vendors through agreements of minimum quantities in many instances.

7. Warranty Information Always know warranty policies of the vendor and sometimes this will assist in the order process by knowing that in the event of a defective part you will have the support of the vendor.

8. Order Creation Create an order form for each Vendor to be used during the entire order process Electronic TD-21 with Calculations Printed Paper Version TD-21

9. TD-21 Form Inventory Receipt Report - TD-21 Vendor:Date: Bus Auto Parts CompanyInvoice Number:_________________________ Material Document Number:________________________Purchase Order Number: _________________________ QuantityDOT Number Manufacturer NumberDescriptionUnit PriceTotal Storage / Bin Location < Total Qty. Total >

10. Form Retention This form should be retained even after the order process is complete for future reference in the following areas. Price comparisons Warranty issues Backorder History

11. ME-21 N / MIGO BSIP Transaction This BSIP transaction is used once the order is ready to enter. The process instructions follow.

12. December, 2003 Revised 8/17/2005 DPI Vehicle Fleet Management 12 Use this procedure to enter materials (except fuel) into inventory. A purchase order must be created. 1.From the SAP R/3 System Easy Access screen or from your favorites, enter or select transaction code ME21N. 2.Click or press Enter. The Create Purchase Order screen displays. - Defaults set are displayed. See Setting up ME21N. 3.Enter 23 in Vendor field (in space to the right of the word Vendor). 4.For each item, enter the following: - PO Quantity - Unit of Measure (Oun) - Material (DOT material number) - Net Price (this is Price per Unit of the item) 5.Click on Check icon. - System may display messages in a dialog box about delivery dates and info records- these can be ignored..*Any other error messages must be resolved*. Click on the green check. 6.Click on. 7.Record Purchase Order number on invoice. 8.Receive Material Into Inventory: Enter /NMIGO from the Create Purchase Order screen. - Alternatively, you can click on to return to the SAP Easy Access Screen and enter or select transaction code MIGO. 9.In the first Matchcode field, select Goods receipt. 10.In the second Matchcode field, select Purchase order. 11.The Movement type should change to 101 GR goods receipt. 12.Enter Purchase Order in field with blinking cursor. Click. - System pulls in items from Purchase Order. 13.Put a check in the OK box next to each item you want to receive. 14.Click on. System puts the Material Document number in the Status Bar. Note this on the invoice. * See ME22N on how to correct Purchase Order*. Entering Inventory (Purchase Order/Goods Receipt) ME21N MIGO Back Cancel Help Exit Enter Save Execute Basic Commands Movement Types 101Receipt of materials into inventory 102Reversal of receipt of materials into inventory 261Issue materials to work order 262Reversal of materials issued to work order 311Transfer material within storage locations 971Receipt of bulk fuel shipment

13. Summary This module on Inventory Order Processes should be used as a guide to correct or possibly eliminate issues you are currently having in Inventory management. Many times bad ordering practices drive up inventory costs due to overstock, inconsistent pricing and enormous freight charges. The use of forms created to assist in the order process may also eliminate errors if utilized. Transportation Services hopes this module will be another reference tool you will use to insure accuracy in the daily operation of your facility.

14. North Carolina Department of Public Instruction Transportation Services December 2014 Craig Warren Transportation Consultant Inventory Training Module 3