SAPSAP

Supplier Supplier Management Management

EIN 5346, Logistics EngineeringEIN 5346, Logistics EngineeringSpring 2010 Spring 2010

Sales Order Sales Order ProcessProcess

Sales OrderSales OrderEntryEntry

CheckCheck AvailabilityAvailability

ProductionProductionProcessProcess

Run MPS Run MPS w/MRPw/MRP

Convert ProductionConvert ProductionProposalProposal ScheduleSchedule

and Releaseand ReleaseProcurementProcurement

ProcessProcess

PickPick MaterialsMaterials

GoodsGoodsIssueIssue

PurchasePurchase RequisitionRequisition

Purchase Purchase OrderOrder

GoodsGoodsReceiptReceipt

InvoiceInvoiceReceiptReceipt

PaymentPaymentto Vendorto Vendor

CompletionCompletionConfirmationConfirmation

Goods Goods ReceiptReceipt

QualityQualityInspectionInspection

Order Order SettlementSettlement

Post GoodsPost Goods IssueIssueInvoice Invoice

CustomerCustomer

Receipt ofReceipt ofPaymentPayment

Process IntegrationProcess Integration

IntegrationIntegration

Procurement ProcessProcurement Process (Procure-to-Pay) (Procure-to-Pay)

PurchasePurchase RequisitionRequisition

PaymentPaymentto Vendorto Vendor

VendorVendorShipmentShipment

InvoiceInvoiceReceiptReceipt

GoodsGoodsReceiptReceipt

Purchase Purchase OrderOrder

PurchasePurchase Requisition RequisitionInternal 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 - AutomaticallyMRP, Production Orders, Maintenance Orders,

Sales Orders

IntegrationIntegration

Procurement ProcessProcurement Process (Purchase Requisition) (Purchase Requisition)

Vendor CreationVendor Creation

Purchase OrderPurchase Order

A purchase order is a formal request to a vendor for a variety of purposes:◦Standard Stock or Consumption◦Services◦Subcontracting◦Consignment

IntegrationIntegration

Procurement ProcessProcurement Process (Purchase Order) (Purchase Order)

Goods ReceiptGoods Receipt◦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)

Material MovementsMaterial MovementsGoods movement is represented by a movement

type

◦ In SAP, three-digit keys for movement type

101 – goods receipt into warehouse103 – goods receipt into GR blocked stock122 – return delivery to vendor

Destinations for Receipt of Goods◦ Warehouse –

Unrestricted, Quality, Blocked

IntegrationIntegration

Procurement ProcessProcurement Process (Goods Receipt) (Goods Receipt)

IntegrationIntegration

Procurement ProcessProcurement Process (Check PO History) (Check PO History)

IntegrationIntegration

Procurement ProcessProcurement Process (Check Document for Goods Receipt) (Check Document for Goods Receipt)

Invoice ProcessingInvoice Processing

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 ProcessingInvoice ProcessingUpon 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

IntegrationIntegration

Procurement ProcessProcurement Process (Invoice Processing) (Invoice Processing)

IntegrationIntegration

Procurement ProcessProcurement Process (Invoice Processing) (Invoice Processing)

IntegrationIntegration

Procurement ProcessProcurement Process (Purchase Order History changed) (Purchase Order History changed)

IntegrationIntegration

Procurement ProcessProcurement Process (Display Invoice Document View) (Display Invoice Document View)

Payment to VendorPayment to VendorCan be done automatically or manuallyEnter data:

Company codeCurrencyDocument dateBank accountAmount to be PaidVendor code

Process will create a financial accounting document to record the transaction

IntegrationIntegration

Procurement ProcessProcurement Process (Procure-to-Pay) (Procure-to-Pay)

IntegrationIntegration

Procurement ProcessProcurement Process (Procure-to-Pay) (Procure-to-Pay)

(FI – MM- MIS) Integration(FI – MM- MIS) Integration

Procurement Materials, Financial, and Information Flow

No. Procesures Inventory Financial Accounts Information

(materials) Inventory GR/IR AP Bank

Dr Cr. Dr Cr. Dr Cr. Dr Cr.

1 Purchase Requisition PR #

2 Purc hase Order PO #

3 Goods Receipt (+) $100 $100 GR #

4 Invice verification $100 $100 INV#

5 Outgoing Payment $100 $100 PAY#