SAP Supplier Management EIN 5346, Logistics Engineering Spring 2010

1. SAPSupplier Management EIN 5346, Logistics EngineeringSpring 2010

2. Purchase Order Procurement Process Purchase Requisition Convert Production Proposal Goods Receipt Production Process Schedule and Release Run MPS w/MRP Invoice Receipt Goods Issue Sales Order Process Check Availability Payment to Vendor Sales Order Entry Completion Confirmation Quality Inspection Pick Materials Goods Receipt Process Integration Order Settlement Receipt of Payment Post Goods Issue Invoice Customer

3. Integration Procurement Process (Procure-to-Pay) Purchase Requisition Purchase Order Payment to Vendor Vendor Shipment Invoice Receipt Goods Receipt

4. 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 Purchase Requisition

5. Integration Procurement Process (Purchase Requisition)

6. Vendor Creation

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

8. Integration Procurement Process (Purchase Order)

9. 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) Goods Receipt

10. 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 Material Movements

11. Integration Procurement Process (Goods Receipt)

12. Integration Procurement Process (Check PO History)

13. Integration Procurement Process (Check Document for Goods Receipt)

14. 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

15. 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 Invoice Processing

16. Integration Procurement Process (Invoice Processing)

17. Integration Procurement Process (Invoice Processing)

18. Integration Procurement Process (Purchase Order History changed)

19. Integration Procurement Process (Display Invoice Document View)

20. 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 Payment to Vendor

21. Integration Procurement Process (Procure-to-Pay)

22. Integration Procurement Process (Procure-to-Pay)

23. (FI – MM- MIS) Integration