W30 Procure to Pay Overview en De

8/4/2019 W30 Procure to Pay Overview en De

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SAP Best Practices for

Wholesale DistributionDE

Scenario Overview

W30 Procure to Pay with

Load Building


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SAP AG 2006, W30 Procure to Pay with Load Building

Overview

Procure-to-Pay

The SAP Best Practices for procure to pay demonstrates the entire process chain in a

typical procurement cycle for a Wholesale Distributor, which includes the following

phases:

Source Determination

Vendor Selection and Comparison of Quotations

Determination of Requirements

Purchase Order Processing Purchase Order Follow-Up

Goods Receiving (with quality management) and Inventory Management

Invoice Verification

Payment execution.

The scenario focuses on procurement of trading goods. Additionally, the ability to

monitor contracts with suppliers is also demonstrated. In Procurement using leanWM, it is also demonstrated how to perform the goods movements between

warehouses and different stock types to better manage the inventory.

.


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Overview

Business View

Following steps are involved in the process:

1. Source Determination and Creation of an Agreement

2. Request for Quotation and Price Comparision

3. Outline Agreement and Contract Creation

4. Source List

5. Determination of Requirements

6. Create Purchase requisition using MRP

7. Demonstrate 3rd Party Processing

8. Create Purchase Orders with Reference to Purchase Requistion

9. Process Inbound Delivery with Lean WM

Transfer Order

Posting goods reciept

10. Invoice Verification Process Blocked Invoices

Payment Execution

11. Outline Agreement Contract Monitoring

12. Goods Movements and Quality Managementt


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Component ViewProcure to Pay

Partner 2Partner 1

Purchasing Vendor

Create

Request forQuotation

Maintain

Quotation

Compare

Prices

Create Contract

Update Info

Record

Submi

Price

MRP Controller

Create

Purchase

Requisition


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Component ViewProcure to Pay

Partner 2Partner 1

Purchasing Vendor

Create

PurchaseOrder

Receive

Goods

Logistics

Invoice

Verification

Payment Run

Submit Shi

Notificati

MRP Controller

Send

Invoice

Create

Inbound Delivery

Send

Goods


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Component ViewProcure to Pay with QM

Partner 2Partner 1

Purchasing Vendor

Create

Purchase

Order

Receive

Goods in

RestrictedStock

Inspect

Goods

Send

Goods


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Business BenefitsBusiness Benefits Receiving Plant Issuing Plant

Creation of a picking listis possible.Packing is possible

The transfer posting isvaluated at thevaluation price of thematerial in the issuingplant

Delivery costs can beentered in the stocktransport order

Control of the stock intransit

Business View Stock Transfer with Delivery

Internal Stock

Transfer Order

Outbound Delivery

Picking

Stock Overview

Goods Issue

Goods Receipt

Inbound Delivery


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Overview

Load Building

The SAP Best Practices scenario for Procure to Pay with Load Building was designed tominimize transport costs by:

making the best possible use of the means of transport (for example, ship, rail freightcontainer, truck)

reduce stock on-hand as much as possible by ordering as late as possible

and achieve more favorable purchase price conditions, for example by ordering whole

truck loads.

The process optimizes quantities for procurement from a single supplier, and converts allexisting purchase requisitions to a collective or multiple purchase orders. If necessary, newpurchase orders are generated (for example, if the range of coverage is increased). Severalpurchase orders are combined into a load under one collective number to fulfill the existingload conditions and then executed through the rest of the procurement process.

Business View

The SAP Load Building gives the possibility to optimize procurement processes likeMinimize transport costs by making best possible use of the means of transportReduce stock on-hand as much as possible by ordering as late as possibleAchieve more favorable purchase price conditions by ordering whole truck loads, for example

To help you do this, SAP attempts to optimize quantities for procurement and convertsexisting purchase requisitions to purchase orders, if necessary generating new purchaseorders. Several purchase orders can be combined in a load under one collective number.


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ManagementAccounting

FinancialAccounting

ProfitabilityAnalytics

Human ResourceManagement

Procurement

Demand & SupplyPlanning

Distribution Planning

Order Optimization

Order Management

Distribution &Fulfillment

Commissions & ChargebackManagement

WarehouseManagement

Order Optimization

Load Building and Quantity Optimization (line buy) attempts to optimize

quantities for procurement and converts multiple existing purchase requisitions to a

single purchase order, additionally when you enter purchase orders, you can havethe system optimize the quantities to make the most out of agreement restrictions

you have with vendors granting you better conditions when you order in complete

logistics units


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Load Building: Overview

Req. Planning Promotion Orders

OtherOrder

Processes

EDI to Vendor

Without Existing

Requirement

ElementsPurchase Requisitions

Purch. Req.

Purch. Req.

Purch. Req.

Purchase Orders

Purchase Orders

Purchase Orders

Automatic Load Building

Process

Simulation List Process

Manual Load Building

Process

Purchase Orders


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Purchase Requisitions Purchase OrderRevised

Purchase Order

Order Optimization

Load Building Quantity Optimizing


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