OVERVIEW OF MATERIALS MANAGEMENT PROCESSES
Organizational Elements
The Procurement business process uses the following The Procurement business process uses the following organizational elements: organizational elements:
COMPANY CODE
Company Code
Plant
Storage location
Purchasing Organization
Purchasing group
Procurement Process
Purchase Order
8. Payment
Requirements [Link]
Vendor invoice
2.
Source determination RUHR TRUCKING
7.
Invoice verification
3. Vendor
selection
6.
Goods receipt and inventory management
5.
Order follow-up
4.
Order Processing
The Procurement Process
Purchase Purchase Requisition Requisition for Goods/ for Goods/ Services Services Purchase
Requisition
10 20 30
RFQ & RFQ & Quotation Quotation Manit. Manit.
RFQ
10 20 30
Purchase Purchase Order Order
Purchase Order
10 20 30
Goods Goods Receipt Receipt
Invoice Invoice Processing Processing
Vendor invoice
Planning, Reporting, and Analysis
Purchase Requisition
The Procurement Process
Purchase Purchase Requisition Requisition for Goods/ for Goods/ Services Services
Purchase Requisition
10 20 30
Purchase Purchase Order Order
Purchase Order
10 20 30
Goods Goods Receipt Receipt
Invoice Invoice Processing Processing
Vendor invoice
Planning, Reporting, and Analysis
Purchase requisitions:
Request or instruction to the purchasing department to procure a certain quantity of a material or service on or by a certain date. Are created directly by a requesting department or automatically via material requirements planning (MRP). Are internal documents not used outside the company.
Important Terms in Purchasing,
Item Category : Key defining how the procurement of a material or service item is controlled. The item category determines the field selection and whether any additional data screens are shown. In addition, it determines whether a goods receipt or invoice receipt is to follow. Different types of Item categories are, Standard Subcontracting Consignment Service Third Party Stock Transfer
Purchase Requisition Processing
MRP
Direct Entry Purchase Order
Purchase requisition
Release strategy
Determine source of supply
Purchase Order
The Procurement Process
Purchase Purchase Requisition Requisition for Goods/ for Goods/ Services Services
Purchase Requisition
10 20 30
Purchase Purchase Order Order
Purchase Order
10 20 30
Goods Goods Receipt Receipt
Invoice Invoice Processing Processing
Vendor invoice
Purchase orders:
Planning, Reporting, and Analysis
Represent the formal approval of a purchasing transaction with a vendor. Identify the following items such as: Vendor Material and quantity ordered Price and terms Delivery date and location
Processing Purchase Orders
Purchase requisition Reference document
Contract
Purchase order
Vendor
10 20 30
Reporting and Analysis
Standard Reporting provides List Displays by: Vendor Material Account assignment Material Group Purchase order number General Analysis Order Value Analysis
Key Points
The basic procurement process includes: purchase requisition, Quotation maintenance, purchase order, goods receipt, and invoice processing Procurement master data includes the vendor and material master files.
INVENTORY MANAGEMENT
Goods Movement
Ad hoc. Goods Receipt
Delivery Inventory
Production Inventory Transfer Posting
Goods Issue
Consumption Samples
Goods Issue
Sales Order
GOODS RECEIPT
Goods receipt component is used to post the receipt of goods from an external vendor or from production. A goods receipt leads to an increase in warehouse stock.
GOODS ISSUE
Goods issue component is used to post a material withdrawal, a material issue, or a shipment of goods to a customer (without the involvement of the SD Shipping component). A goods issue leads to a reduction in warehouse stock.
Stock Transfer and Transfer Posting
You can use this component to remove materials from one storage location and place them in another storage location. Stock transfers can occur either within one plant or between two plants or company codes.
Transfer Posting Goods Issue
Emco Stk RM01 Vendor Stock Project Stk PS01 Network for consumption
Stor. Loc. RM01
Stor. Loc. WIP1
Unrestrct Stk
SO Stk
Stock Transfers
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