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BRITE Procurement Fundamentals. Course Description.

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BRITE Procurement Fundamentals

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BRITE Procurement Fundamentals


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Course Description

During this course, you will learn how the implementation of the BRITE Procurement process will change, and how it will improve the way business is conducted in SBBC. You will also be introduced to some basic SAP Procurement structures and vocabulary.

Budget

Professional Development

Enterprise Resource Planning

Payroll

Enterprise Management Information

Finance

Operations

Human Resources


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Course Objectives

After completing this course, you will be able to:

  • Explain the “To-Be” (future SBBC SAP) business processes

  • Describe the SBBC SAP organizational structure

  • Describe the use of Master Data in SAP

  • Explain the use and structure of various purchasing documents in SAP

  • Describe functions that are executed after the procurement process is complete


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Key Purchasing Terms


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Terms Glossary


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Key Improvements: Need to Receipt

For those who alreadydo purchasing, this is an overview of the changes coming.

Current State

Future State


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Key Improvements: Need to Receipt

For those who alreadydo purchasing, this is an overview of the changes coming.

Current State

Future State


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Key Improvements: Need to Receipt

Current State

Future State

For those who alreadydo purchasing, this is an overview of the changes coming.


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Organizational Structure


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Unit Objectives

After completing this unit, you will be able to:

  • Describe the SBBC Organizational Structure

  • Explain the usage of Purchasing Groups in SAP


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Organizational Structure

The companycode andPurchasingOrganization will always be SBBC.

All buyers have a Purchasing Group Letter.

There are sevenplants within theorganization.

Each Plant has various storage locations some of which may/may not contain inventory – e.g. Plant 1000 (schools/departments) do not have inventory in SAP


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Purchasing Group

  • The SAP term for Buyer Code is Purchasing Group. Commodities will be assigned to Purchasing Groups within the SBBC purchasing organization

  • Each Buyer in SBBC has a Purchasing Group letter, which allows them to manage their Requisitions and Purchase Orders more effectively


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Purchasing Master Data


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Unit Objectives

After completing this Unit, you should be able to:

  • Define key terminology related to SAP Master Data

  • Explain the concept of Master Data in SAP

  • Describe the purpose of a Material Master Record


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Material Master Records

  • The following information is essential to understanding the tasks discussed in this unit:

    • Material Master Records contain information about a material that rarely changes (such as description, unit of measure, etc.)

    • Material Master Records can be incorporated as default data in transactional documents such as RFQs (Request for Quote) and Purchase Orders


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Material Master Records

A Material Master Record:

  • Is the central repository for all details about a material number (description, dimensions, purchasing group, etc.)

  • Eliminates the need for redundant data entry

  • Reduces the likelihood of duplicate material numbers


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Material Master Records (cont’d)

  • There are six types of Material Master Records:

    • Stock materials: Items stocked at the central warehouse or the textbook warehouse

    • Food: Commodity materials managed at the external food warehouse

    • Spare Parts: Spares used by Physical Plant Operations and Transportation

    • Non-Valuated Materials: Items stored in B-stock and student assessments

    • Non-Stock Items: Materials whose quantity will not be inventoried and will support purchasing functions

    • Services: Services ordered by schools and departments


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Material Master Record Data Flow

Material MasterRecord

Purchase Requisitions

Contracts

Requests for Quotation

Purchase Orders

Invoices

The Material Master Record can be used as input for any of the Purchasing Documents shown above.


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Purchasing Documents


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Unit Objectives

After completing this unit, you will be able to:

Describe the procurement process flow

  • Describe the structure and use of a Purchase Requisition

  • Describe the Catalog Content Management (CCM) process

  • Name the three types of Purchase Requisitions

  • Describe the Requisition approval process

  • Describe the structure and use of:

    • Requests for Quotations

    • Quotations

    • Purchase Orders


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Procurement Process Flow

Data Strategy Group Creates Purchasing Master Data

Requisitioner Creates Purchase Requisition

Site Administrator Approval

Buyer Creates RFQ (if necessary)

Buyer Maintains Quotations (if necessary)

Buyer Creates Purchase Order

Recipient Performs Goods Receipt

Accounts Payable Pays Invoice


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Requisitions

All Requisitions have three (3) sections:

  • Header – Contains a “Text” tab where internal information can be entered

  • Item Overview – Shows an overview of all the line items on the Requisition

  • Item details – Shows detailed procurement information about one particular line item. There is an item details section for each item on the Requisition


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Purchase Requisition

Header

Item Overview

Item Details


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Types of Purchase Requisitions

There are three types of Purchase Requisitions:

  • Standard Requisition

    • Used for external procurements

    • Can be entered line by line or via Catalog Content Management (CCM)

    • Can be entered with or without reference to Material Master Record

  • Framework Requisition

    • Used for External procurements

    • Will be created using an attached list for orders with 25 or more lines items

    • Cannot be used for assets

  • Stock Transport Requisition

    • Are used for internal procurements (from the warehouse)

    • Will always be entered via Catalog Content Management (CCM)


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Account Assignment Categories

Each line item on a requisition must have an account assignment category. SBBC will use the following categories:

  • Inventory

  • Asset

  • Cost Center

  • Project

  • Grant


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What is Catalog Content Management?

Catalog Content Management (CCM):

  • Is a web-interface that allows end-users to search for and order standard catalog items from established suppliers with active contracts

  • Allows end-users to select materials by pointing and clicking

  • Allows end-users to create a Requisition in SAP directly from an on-line shopping cart

  • Reduces data input errors and redundancy


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CCM Requisitions

Catalog Icon

Click the “Catalog” icon to access the on-line catalog.


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Catalog Content Management

CCM allows “point and click” selection of materials to be purchased


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Requisition Approvals

  • Two levels of approvals are required during normal operations depending on the materials procured.

    • Level: Principal/Department Manager/Supervisor approval.

    • Level: Only certain material groups need second level approval. These material groups will be automatically routed to 2nd level approvers in areas such as Curriculum, Technology, Textbooks, and Food Service. (Food Service items approval will only be for Stock Transport Requisitions involving small equipment obtained from the Central Warehouse).

  • During a budget freeze an additional level of approval will be required on all purchases, both internal and external with the exception of Food Services and Grant-related, non-asset items. This approval will be done by the district Executive Leadership Team.

1st

2nd


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Request for Quotations (RFQs) and Quotations

RFQs and Quotations:

  • Are initiated by purchasing (rather than schools and departments) after a requisition is approved

  • Facilitate easy on-line quote comparison and vendor selection

  • Can be used to create purchase orders and contracts


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Purchase Orders

Purchase Orders:

  • Are created directly from requisitions or quotations in SAP

  • Can be created manually by a buyer or automatically by SAP (when a contract exists)

  • Are transmitted to vendors via e-mail or e-fax. Hard copy PO’s are sent only when a vendor has no e-mail or fax capability


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Purchase Orders

Just like the Purchase Requisition, All Purchase Orders have three (3) sections:

  • Header – Contains information applicable to the entire Purchase Order

  • Item Overview – Shows an overview of all the line items on the Purchase Order

  • Item details – Shows detailed procurement information about each line item.


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Unit Objectives

You should now be able to:

  • Describe the procurement process flow

  • Describe the structure and use of a Purchase Requisition

  • Describe the Catalog Content Management (CCM) process

  • Name the three types of Purchase Requisitions

  • Describe the Requisition approval process

  • Describe the structure and use of:

    • Requests for Quotations

    • Quotations

    • Purchase Orders


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Goods Receipt and Invoices


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Unit Objectives

After completing the unit, you will be able to:

  • Define key terminology

  • Determine Requisition status

  • Describe the Goods Receipt process

  • Explain the Three-Way and Two-Way match processes

  • Describe the structure and use of invoice documents in SAP


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Key Terms


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Goods Receipt

The Goods Receipt process:

  • Is executed when material is received against a purchase order

  • Results in the creation of a material document that acknowledges the receipt of goods and allows the invoice to be paid

  • Updates stock balances and purchase order history


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Material Document – Goods Receipt Overview

The Material Document shows details about all the line items included in the Goods Receipt.


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Goods Return

The Goods Return process is executed:

  • When material is to be returned to the vendor after a goods receipt has been executed in SAP

  • Allows material returns to be tracked

  • Automatically adjust inventory balances


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Three-Way Match

  • A Three-way Match means that the Purchase Order, the Invoice, and the Goods Receipt all match, both in terms of quantity and price

  • The three-way match principle applies to all PO’s except Framework PO’s


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Two-Way Match

  • A two-way match means that the Purchase Order and the Invoice must match, both in terms of quantity and price

  • The two-way match principle applies to all framework PO’s


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Unit Objectives

You should now be able to:

  • Define key terminology

  • Determine requisition status

  • Describe the Goods Receipt process

  • Explain the Three-Way and Two-Way match processes

  • Describe the structure and use of invoice documents in SAP


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Summary


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Course Objectives

You should now be able to:

  • Explain To-Be business processes

  • Describe the SBBC SAP organizational structure

  • Describe the use of Material Master Data in SAP

  • Explain the structure and use of various purchasing documents in SAP

  • Describe functions that are executed after the procurement process is complete


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