1. Phase II: Procurement SAP University Alliances Version 2.2
Authors Simha R. Magal Stefan Weidner Tom Wilder
Phase II: Procurement
Product
SAP ERP 6.0 EhP4
Global Bike Inc.
Level
Beginner
Focus
Configuration: The Procurement Process

2. Agenda
Enterprise structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

3. Enterprise structure elements
Client
Company code (CC)
Plant
Storage location (SLoc)
Purchasing organization (POrg)
Purchasing group
Valuation areas
Define / Maintain
Assign

4. Many definitions or uses. A location
Plant
Many definitions or uses. A location
That holds valuated stock (for distribution)
Where production planning is carried out
Where products and services are created
That contains service or maintenance facilities
Where work is performed
Office, store, factory, warehouse, distribution center
Can be assigned to one CC only
A CC can have many plants

5. A place, within a plant, where materials are stored
Storage Location
A place, within a plant, where materials are stored
Areas designated for different types of material (raw material, work-in-process, finished goods)
Does not have to be physical, can be logical
More sophisticated divisions including storage bins, cabinets, trays is part of warehouse management
A plant must have at least one storage location
A storage location is assigned to a single plant
Storage locations in different plants can have the same name
Finished Goods FG00 in MI00, FG00 in DL00

6. Storage Locations

7. Purchasing Organization
Identify and select vendors
Negotiate general conditions of purchase and contracts for one or more plants or companies.
Determine pricing conditions
Typically three models for Purchasing Organization
Enterprise-Level (assigned to plant)
Company-Level (assigned to plant and one company code) <- GBI model
Plant-Level (assigned to plant and its company code)
Hybrid

8. Purchasing Organization

9. Can be internal to the company or external
Purchasing Group
A buyer or group of buyers responsible for certain materials or groups of materials
Can be internal to the company or external
Decide to purchase land, but use a realtor (external purchasing group) to execute the purchase
Not assigned to or related to purchasing org
GBI Purchasing Groups:
North America (N00)
Europe (E00)

10. Agenda
 Enterprise structure
Business rules and parameters
Master data
Process execution (testing)
Exercises

11. Business Rules and Parameters
Automatic Account Determination
Material accounts
GR/IR account
Price difference account
Posting keys for invoice verification
Tax related parameters
Tax version (how many tax rates and amounts)
Tax accounts (G/L account for posting)
Default values for tax codes (when entering invoices)
Attributes for material types
Views to be maintained
Type of inventory management
quantity basis
value basis

12. Business Rules and Parameters
Tolerance limits
Purchase order
Purchase price (PO price vs. material price)
Discounts (cash discount in PO)
Goods receipt
Quantity (warning and error)
MAP change
Invoice receipt
Quantity tolerances
Value tolerances
Vendor payment
Plant parameters
Goods movement
Material reservations

13. Agenda
 Enterprise structure
 Business rules and parameters
Master data
Process execution (testing)
Exercises

14. Master Data
Material Master
Vendor Master
Purchasing info record
Conditions

15. Data needed to execute transactions related to materials
Material Master
Data needed to execute transactions related to materials
Data are grouped by different user / functional areas (views)
Basic data
Purchasing
Accounting
Forecasting
Sales
Plant / Storage
Work Scheduling
MRP
Classification
Warehouse Management

16. Master date are defined for specific organizational levels
Material Master
Master date are defined for specific organizational levels
Can have different data for different combinations of Org data
Purchasing: Plant, storage location
Sales: Sales Area (Sales Org, Distribution Channel)
Warehouse: Warehouse #, storage type

17. Material Master Example: SHRT1000 + MI00+ TG00 SHRT1000 + SD00+ TG00
SHRT US00 + Wholesale channel
SHRT US00 + Internet channel
Demo
Review material master
Review procurement related tabs

18. Data needed to do business with vendors
Vendor Master Data
Data needed to do business with vendors
Data needed to execute transactions related to vendors
Data are specific to (defined for) different organizational levels. The three segments are:
Client level data (General)
Company code level data (Accounting)
Purchasing organization level data (Purchasing)
Demo
Review vendor master data
Review data in three segments

19. Purchasing Info Records
Relates vendors and materials.
One info record per combination of vendor and material (or material group)
General data
Conditions: pricing, discounts, free goods (current and future)
Vendor data
Texts (notes)

20. Purchasing Info Records

21. Pricing data in a purchase order is obtained from
Conditions
Pricing Conditions
Gross price
Discounts and surcharges
Freight / shipping
Pricing data in a purchase order is obtained from
Condition records
Purchasing info records
Contracts and agreements
Other sources

22. Agenda
 Enterprise structure
 Business rules and parameters
 Master data
Process execution (testing)
Exercises

23. Process execution

24. Agenda
 Enterprise structure
 Master data
 Business Rules and Parameters
 Process execution
Exercises

25. 2.1 - Enterprise structure 2.2 - Business Rules and Parameters
Exercises
2.1 - Enterprise structure
Configure the enterprise structure
2.2 - Business Rules and Parameters
Define business rules
2.3 - Master data
Material, vendor (copy from 00 where possible)
2.4 - Testing
Execute simple procurement process
Appendices
Exercises provide detailed instructions for one or few objects (e.g, once cost center, once vendor, etc.)
Appendices provide data from additional objects (cost centers, etc.)
Don’t forget them!!!!

26. Agenda
 Enterprise structure
 Master data
 Business Rules and Parameters
 Process execution
 Exercises