Purchasing Management with SAP
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Transcript of Purchasing Management with SAP
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Purchasing Management with SAP
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Demand for Materials and
Services
Requisition and Approve Materials and
Services
Procure Materials and
Services
Receive Materials/Services and
Ensure Quality
Pay for Materials and
Services
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Goods
Receipts
1.
PlanningPurchase
Requisition
2. Require.
Requisition
Approval
Agreements
Purchasing
Document
3. Source
DeterminationService
Entry
Invoice
6. Invoice
Receipt
5.
InventoryGoods
Issue
4. Receiving
Supply Chain Lifecycle
Managing the growing complexity of purchasing processes requires integrated business information technology.
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Purchasing Document Complexity in SAP
There are 10 ways to pay a supplier/vendor/contractor 1 of which is Non-PO invoice 9 of which involve a type of PO (purchasing document)
We often generalize when we refer to PO’s, therefore it is imperative we understand the differences within each. see illustration in next slide
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Procurement of Goods and Services
SAP various purchasing documents (with/without Contracts) Purchase Order (PO) – standard purchasing doc. (NB)
Used for the procurement of materials only specifying Description, quantity, unit of measure & price
Framework Order (FO) Validity dates & lump sum amounts – no detail and no goods receipt or
service entry required
Service Order (SO) Used for the procurement of services only specifying Description, quantity, unit of measure & price
Limit Service Order (LSO) Validity dates & lump sum amounts – no detail – however service entry
is required
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Differences in Purchasing Documents
1 2 3 4 5 6 7 8 9 1043 series 44 series 44 series 44 series 44 series 44 series 44 series 44 series 45 series
Non-PO Framework LSO LSO plus LSO plus LSO LSO plus LSO plus SO only Material Invoice Order Contract SO Contract SO PO
unassigned unassigned unassigned with with with with withcost object cost object cost object cost object cost object cost object cost object cost object
• Less detail planning• Less work upfront• Much more work later• Poor control• Poor reporting• Manual coding• More flexible• More manual approvals
• More detail planning• More work upfront• Much less work later• Better internal controls• Better reporting• Automatic coding• Less flexible• Less manual approvals
afterbefore
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Benefits
SOX compliance 3-way match Segregation of duties Shift to more upfront approvals at the planning stage
More timely cost information by planning upfront in SAP Automatic coding Better Purchasing history Strategic Sourcing opportunities Better Maintenance history Better Capital Project information - Cost Control Automatic Accruals Less Manual Approvals
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E-Procurement Consultants, LLC is a private company that provides management consultation, and technology services to collaborate with clients in becoming or maintaining a high-performance business or government agency.
James Thompson, Principle
e-Procurement Consultants, LLCP.O. Box 2123DeSoto, Texas 75115
Phone Number: 214.770.0801E-Mail Address: [email protected] Address: www.eprocurrementconsultants.com
Contact Info