SAP Supplier Management EIN 5346, Logistics Engineering Spring 2010

Sales Order Process Entry Check Availability Availability ProductionProcess Run MPS w/MRP Convert Production Proposal Schedule and Release ProcurementProcess Pick Materials Materials GoodsIssue Purchase Requisition Requisition PurchaseOrder GoodsReceipt InvoiceReceipt Payment to Vendor CompletionConfirmation GoodsReceipt QualityInspection Order Settlement Post Goods Issue Issue InvoiceCustomer Receipt of Payment Process Integration

Integration Procurement Process (Procure-to-Pay) Purchase Requisition Requisition Payment to Vendor VendorShipment InvoiceReceipt GoodsReceipt PurchaseOrder

Purchase Requisition Internal Document instructing the purchasing department to request a specific good or service for a specified time Requisitions can be created two ways: ◦Directly - Manually person creating determines: what, how much, and when ◦Indirectly - Automatically MRP, Production Orders, Maintenance Orders, Sales Orders

Integration Procurement Process (Purchase Requisition)

Vendor Creation

Purchase Order A purchase order is a formal request to a vendor for a variety of purposes: ◦Standard Stock or Consumption ◦Services ◦Subcontracting ◦Consignment

Integration Procurement Process (Purchase Order)

Goods Receipt ◦Determine if we received what we ordered ◦System take data from the PO: material, quantity, and so on Effects of Goods Receipt ◦Material Document is Created ◦Stock Quantities are Updated ◦Stock Values are Updated ◦Purchase Order History is updated ◦Updates Inventory G/L Account ◦Output can be generated (GR slip / pallet label)

Material Movements Goods movement is represented by a movement type ◦In SAP, three-digit keys for movement type 101 – goods receipt into warehouse 103 – goods receipt into GR blocked stock 122 – return delivery to vendor Destinations for Receipt of Goods ◦Warehouse – Unrestricted, Quality, Blocked

Integration Procurement Process (Goods Receipt)

Integration Procurement Process (Check PO History)

Integration Procurement Process (Check Document for Goods Receipt)

Invoice Processing Verify received materials quantity, quality, prices, and arithmetic. If discrepancies arise SAP system will generate a warning or an error ◦Depending on system configuration the difference could cause the system to Block the Invoice

Invoice Processing Upon verification the: ◦Purchase Order updated ◦Material Master updated ◦Accounting Document created Once the Invoice has been posted the verification process is completed and the payment process is initiated within Financial Accounting

Integration Procurement Process (Invoice Processing)

Integration

Integration Procurement Process (Purchase Order History changed)

Integration Procurement Process (Display Invoice Document View)

Payment to Vendor Can be done automatically or manually Enter data: Company code Currency Document date Bank account Amount to be Paid Vendor code Process will create a financial accounting document to record the transaction

Integration Procurement Process (Procure-to-Pay)

Integration

(FI – MM- MIS) Integration Procurement Materials, Financial, and Information Flow No.ProcesuresInventory Financial Accounts Information (materials)InventoryGR/IR AP Bank DrCr.DrCr.DrCr.DrCr. 1Purchase Requisition PR # 2Purc hase Order PO # 3Goods Receipt(+)$100 GR # 4Invice verification $100 INV# 5Outgoing Payment $100 PAY#