The Procurement Process and SAP

Step 1: Creating a Vendor Master Record

Create a vendor master in the system using the following information. We will not be filling in all screens but this exercise will take you through each screen so that you can review the data fields that are supported.

MENU PATH

Logistics>Materials management> Purchasing> Master data> Vendor> Central> Create

Enter the following data

Select the enter icon to continue

Select Enter Icon to continue.

Create Vendor: Control Data

Select Enter Icon to continue

Create Vendor: Payment Transactions

Select Enter Icon to continue

Create Vendor: Accounting Information

Select Enter Icon to continue

Create Vendor: Payment Transactions

Select enter icon to continue

Create Vendor: Correspondence

Select Enter Icon to continue

Create Vendor: Purchasing data

Select enter icon to continue

Create Vendor: Partner functions

Select enter icon to continue

The system displays the message "Last screen reached.."

Save the vendor by selecting the YES button.

STEP 2 BUSINESS PROCESS FOR PROCUREMENT

The following is the unit scenario:

Motor Sports International's (MSI) basic procurement process for stock materials includes creating a purchase order, receiving the material, processing the vendor's invoice, and paying the vendor. All of MSI' S plants use this basic business process to procure stock material for issue in the production of motorcycles.

An MSI buyer creates a purchase order for a stock material. After the material has been received from the vendor, MSI always verifies the quantity received against the quantity on the purchase order. Once MSI receives the invoice from the vendor, MSI's accounts payable coordinator records the invoice, checks it against the purchase order and goods receipt, and prepares payment to the vendor.

The payment is then generated to the vendor according to the payment terms.

Create a purchase order. Record the system generated document number for the transaction.

MENU PATH

Logistics>Material management>Purchasing>Purchase order>Create>Vendor known

Select the enter icon to continue to the next screen

Enter the following data

Create Purchase order: Item Overview

Select the save icon to complete this transaction.

NOTE Record your purchase number order in the space provided below You will need this number when the goods are received.

_____________________________

View the stock level to verify that the ordered quantity equals the amount of the purchase order.

MENU PATH

Logistics>Materials management>Inventory management>Environment>Stock>Stock overview

Enter the following data:

Select the ExecuteIcon to view the stock levels

Note Double click on plant 3000 New York to display the detailed stock movements.

Document the following fields:

Receipt of Ordered Goods

The goods are now at the dock and ready to be received in inventory. Post the goods receipt against the purchase order.

MENU PATH

Logistics>Materials management>Inventory management>Goods movement>Goods receipt>For purchase order>PO number known

Goods Receipt for Purchase order: Initial Screen

Select the enter icon to continue

Select the Copy Button to continue to next screen

Select the SAVE Icon to complete this transaction

Record the goods issue document number below:

_________________________________

View the stock level and check the recorded the results below.

MENU PATH

Logistics>Materials management>Inventory management>Material document>Display

Enter the following data:

Select enter icon to continue

Select Accounting docs button

Double click on the accounting document number

Complete the table below:

Accounting department receives vendor invoice

The accounting department receives the invoice from the vendor. Enter the invoice into the system.

MENU PATH

Logistics>Materials management>Invoice verification>Invoice verification>Document entry>Enter Invoice

Enter the following data

Enter Invoice Initial Screen

Select enter icon to continue

Enter Invoice: Vendor Items

Select enter icon to continue to the next screen

Select the Simulate button to continue to the next screen

NOTE the debits and credits should be equal

Select the save icon to complete this transaction. Record the document number in the space provided below.

___________________________

Display the purchase order history to review the accounting document generated in the previous exercise. Which accounts are updated?

Paying the bill from the Vendor

MENU PATH

Accounting> Financial accounting> Accounts payable> Document entry> Outgoing payment> Post

Select Process Open items button

The next screen works the same as Accounts Receivable processing. If the difference is zero you can save to complete the transaction

Select the Save Icon

MENU PATH

Logistics>Materials management>Purchasing>Purchase order>Display

Select enter to continue

Select PO History button

Select the IR document number and then select the magnifying glass button or F2

Debit=_____________

Credit=_____________

Reporting and Analysis

Motor Sports international MSI routinely reviews all areas of its organization to identify opportunities to reduce costs and improve efficiency. MSI reviews historical information to evaluate proposals, estimate costs for product development, and plan for future productions. Functional areas are responsible for regularly reviewing their transactions and activities.

MSI must have access to purchasing information to process material requests from all areas of the company and respond to vendor inquiries. MSI frequently reviews the status of purchase requisitions or purchase orders to determine the last date a material was requisitioned, ordered, received, or invoiced. MSI also reviews the inventory history of the material to verify when and how it was used.

List Processing

Create a purchase order list display for your purchasing group by creating a variant

MENU PATH

Logistics>Materials management>Purchasing>Purchase order>List displays>By vendor

Purchasing Documents for Vendor

Note you can change the selection parameters field to report on open invoices, open goods receipt, goods receipt exists, etc.

Select the execute icon

RESULTS

The system displays the purchase order list.

What is the number of 1400-100-YY still to be delivered? _____________________________

Standard Reporting

Review the inventory transaction history for the material listed below.

MENU PATH

Logistics>Materials management>Inventory management>Environment>List displays>Mat. doc. for material

Select the Execute icon

RESULTS

The system displays all inventory transactions for the material.

Note the customer number and amounts that the stock was shipped to.

__________________________________________________________________

Logistics Information System

Review the performance of your purchasing group by perfoming a stanrd purchasing group analysis using the data below

MENU PATH

Logistics>Materials management>Purchasing>Purchase order>Reporting>Purch. Info. System>Standard analyses>Purchasing group

Purchasing Group Analysis-Selection

Select the Execute icon.

The system displays the list of order values and invoice values for your selection criteria.

Add a key figure (PO item scheduled lines to the standard analysis to determine the total number of purchase order. Select the following menu path to add a key figure to your report.

MENU PATH

Edit>Choose Key figs

The system displays a window indicating the key figures that are already on your report.

To add the PO item sched lines key figure select the Selection list button.

Scroll up or down on this window until you see the PO item sched. lines field

Place an X to the left of that field and then select the Copy + close button

Select the Copy button

RESULTS/NOTES

The system displays the report with the additional field PO item scheduled labelled as Ord. it. Sch.