Purchase Order Creation Manually or automatically With or without reference to other documents Data Documents: Purchase requisition, Purchase order, RFQ, Quotation Master data: Material (characteristics) Vendor (terms) Info record (pricing) Conditions (pricing) 1 Magal and Word | Integrated Business Processes with ERP Systems | © 2011

Data in a Purchase Order 2 Magal and Word | Integrated Business Processes with ERP Systems | © 2011

Purchase Order Tasks Data automatically included from input sources Source determination using info records, agreements and contracts, and source lists Outcomes Purchase order Purchase requisition history – PO added Communicate with vendor (external procurement) using messages: fax, EDI, print Plant (internal procurement) using transfer orders 3 Magal and Word | Integrated Business Processes with ERP Systems | © 2011

Purchase Order Structure Header Document number, dates Vendor, currency, terms PO total Line items Material number, description Quantity, price, item total Delivery date 4 Magal and Word | Integrated Business Processes with ERP Systems | © 2011

The Structure of a Purchase Order 5 Magal and Word | Integrated Business Processes with ERP Systems | © 2011

Purchase Requisition to Purchase Order Magal and Word | Integrated Business Processes with ERP Systems | ©

Communicating with vendors Magal and Word | Integrated Business Processes with ERP Systems | ©

Purchase Order Processing Options Magal and Word | Integrated Business Processes with ERP Systems | ©

GBI Scenario Create purchase order Material: SHRT1000 Quantity: 500 Vendor: Spy Gear (from source list or manual entry) Receiving plant: Miami Reference document: purchase requisition Price: $15 each (from info record) Total PO value: $7500 Magal and Word | Integrated Business Processes with ERP Systems | ©

Demo 4-8: Convert Purchase Requisition to Purchase Order Magal and Word | Integrated Business Processes with ERP Systems | © Convert a previously created purchase requisition into a purchase order Review data in the purchase requisition

11 Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Elements of the Goods Receipt Step

Goods Receipt Data Documents: PO, Delivery document (packing list) Master data Task Verify materials receipt Create GR document Outcomes Material documents Header: Document number, date, reference Details (items): Material, quantity, location, movement type Financial Accounting documents Header: Document number, date, reference, currency Details (Items): GL accounts, description, amount 12 Magal and Word | Integrated Business Processes with ERP Systems | © 2011

Goods Receipt Outcomes Notifications Material master: stock and value GL accounts (Stock/Consumption, GR/IR) PO history – Material document added Quality management Quality inspection lot Warehouse management Magal and Word | Integrated Business Processes with ERP Systems | ©

Data In The Goods Receipt Step Magal and Word | Integrated Business Processes with ERP Systems | ©

Financial Impact of Goods Receipt Magal and Word | Integrated Business Processes with ERP Systems | ©

Material and Accounting Documents from a Goods Receipt Magal and Word | Integrated Business Processes with ERP Systems | ©

Demo 4-9: Receive goods against a Purchase Order Magal and Word | Integrated Business Processes with ERP Systems | © Record the receipt of materials for the purchase order previously created. Review data in the associated purchase requisition. Review data in the associated purchase order.

Elements of the Invoice Verification Step Magal and Word | Integrated Business Processes with ERP Systems | ©

Invoice Verification Data Vendor invoice Purchase order Material document Tasks Three-way match Outcomes Financial Accounting documents Magal and Word | Integrated Business Processes with ERP Systems | ©

Data needed for Invoice Verification Magal and Word | Integrated Business Processes with ERP Systems | ©

Invoice Verification Outcomes GL: vendor account, A/P, GR/IR PO history - invoice document added Material master : Stock value, Moving average price (if using moving price vs. standard price) Magal and Word | Integrated Business Processes with ERP Systems | ©

Financial Impact of Invoice Verification Magal and Word | Integrated Business Processes with ERP Systems | ©

Demo 4-10: Receive and Verify an Invoice Magal and Word | Integrated Business Processes with ERP Systems | © Verify and record an invoice received from a vendor. Review data in the associated purchase order

Elements of the Payment Step Magal and Word | Integrated Business Processes with ERP Systems | ©

Payment Processing Creation: manually or via automatic payment program Data Three-way match (or other process) Payment method, account, items to pay, Tasks Calculate payment amount (discounts) Post payment document (accounting document) Magal and Word | Integrated Business Processes with ERP Systems | ©

Payment Processing Outcomes Financial Accounting Documents Payments (checks, EFT, notifications) Updates GL accounts Material master :Moving average price (if using moving price vs. standard price) Magal and Word | Integrated Business Processes with ERP Systems | ©

Data needed for Vendor Payment Magal and Word | Integrated Business Processes with ERP Systems | ©

Financial Impact of Vendor Payment Magal and Word | Integrated Business Processes with ERP Systems | ©

Demo 4-11 Make payment to Vendor Magal and Word | Integrated Business Processes with ERP Systems | © Record payment made to a vendor for previously recorded invoices.

Integration With Other Processes Magal and Word | Integrated Business Processes with ERP Systems | ©

Reporting Source of data Instance level reporting (status) Process level reporting Lists and reports Purchasing Information System Magal and Word | Integrated Business Processes with ERP Systems | ©

Reporting - Sources Organizational data Master data Transaction data (documents) Purchasing documents Material documents Accounting documents Invoice documents Magal and Word | Integrated Business Processes with ERP Systems | ©

Reporting - Instance Status of a Requisition, Purchase Order Magal and Word | Integrated Business Processes with ERP Systems | ©

List of Invoices Magal and Word | Integrated Business Processes with ERP Systems | ©

Work List – List of Requisitions Magal and Word | Integrated Business Processes with ERP Systems | ©

Demo 4-12: Display a List Report Magal and Word | Integrated Business Processes with ERP Systems | © Retrieve and display a list of invoices (online list) Retrieve and display a list of open purchase requisitions (work list)

Reporting - Standard Process level reporting Standard reports / List displays Logistics Information System Magal and Word | Integrated Business Processes with ERP Systems | ©

Reporting – Logistics Information System Components Purchasing Information System Sales Information System Quality Management Information System Inventory Control Transportation Information System Shop Floor Information System Plant Maintenance Information System Magal and Word | Integrated Business Processes with ERP Systems | ©

Reporting – Logistics Information System Information Structures Special tables of statistics from various modules that is constantly updated Selection criteria (types of information) Key figures: variables of interest Quantitative values on measurable facts Numbers (of orders, deliveries) Quantities (of material) Cost, delivery time Characteristics: used to organize key figures Vendors, material, organizational levels Timeframe: day, week, month, etc. Magal and Word | Integrated Business Processes with ERP Systems | ©

Standard Analysis Magal and Word | Integrated Business Processes with ERP Systems | ©

Demo 4-13: Display a report using the Purchasing Information System Magal and Word | Integrated Business Processes with ERP Systems | © Generate a standard report using the purchasing information system for the US00 Purchasing Organization. Drill down to several levels of information in the report.

Flexible Analysis Magal and Word | Integrated Business Processes with ERP Systems | ©

The Following Slides The following slides will be hidden and are for Instructors that may want to use the SAP R/3 to demo functionality covered in the chapter. Magal and Word | Integrated Business Processes with ERP Systems | ©

Review Material Master Logistics -> Materials Management -> Material Master -> Material -> Display -> Display Current Select Material: T-Shirt (SHRT 1000) Org levels: Basic data, purchasing, accounting1 Plant: MI00 Review data for several views Magal and Word | Integrated Business Processes with ERP Systems | ©

Review Vendor Master Logistics -> Materials Management -> Purchasing -> Master Data -> Vendor -> Central -> Display Select Olympic Protective Gear. Select company code US00 Select Purchasing Organization US00 Note the three areas of data General data, CC data, Purchasing Organization data Select all check boxes except withholding tax Enter and review data in the various screens Magal and Word | Integrated Business Processes with ERP Systems | ©

Review Purchasing Info Records and Conditions Logistics -> Materials management -> Purchasing -> Master data -> Info Record -> Display Select a GBI vendor – Olympic Protective Gear Select a material – SHRT 1000 Select org levels Note the four areas of data General data, P Org data, Conditions, and Texts Review data in the various screens Magal and Word | Integrated Business Processes with ERP Systems | ©

Review Item Categories Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create -> Vendor/Supplying plant known Close “header” and “item detail” sections Open “item overview” section Review choices for Account Assignment Category column (2 nd column) Review choices for Item Category (3 rd column) Magal and Word | Integrated Business Processes with ERP Systems | ©

Review Goods Movements and Movement Types Logistics -> Materials Management -> Inventory Management -> Material Document -> Display Search for material document. In search screen include only plant DL00 Review resulting list Select one document (enter year if needed after selection) Review document Header items Line items Magal and Word | Integrated Business Processes with ERP Systems | ©

Create a Purchase Requisition Need to purchase 500 t-shirts Navigation: Logistics -> materials management -> purchase requisition -> Create Input: material number and quantity Magal and Word | Integrated Business Processes with ERP Systems | ©

Create a Purchase Requisition Automatic data entry description, unit of measure, delivery date, material group Review tabs, in particular: Valuation: valuation price Source of supply: none Status: Proc. Status = not created; review options Save Document (requisition number): Magal and Word | Integrated Business Processes with ERP Systems | ©

Create a Purchase Order Navigation: Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create -> Vendor/supplying plant known Automatic data entry (copy from requisition) Document overview on Selection variant – my requisitions Select requisition and adopt Note data transferred from requisition to order Close item detail Input Select vendor Enter price? (why or why not?) Magal and Word | Integrated Business Processes with ERP Systems | ©

Create a Purchase Order Navigation: Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create -> Vendor/supplying plant known Automatic data entry (copy from requisition) Document overview on Selection variant – my requisitions Select requisition and adopt Note data transferred from requisition to order Close item detail Input Select vendor Enter price (why?) Magal and Word | Integrated Business Processes with ERP Systems | ©

Example / Demo Open item detail and review tabs Material data (source?) Conditions NOTE: no tab for PO status What do these data apply to? Open item header and review tabs Conditions Org data Status What do these data apply to? Save Document (PO) number: Magal and Word | Integrated Business Processes with ERP Systems | ©

Example / Demo Review Purchase Requisition Navigation: Logistics -> materials management -> purchase requisition -> Display Review status tab Note purchase order data Magal and Word | Integrated Business Processes with ERP Systems | ©

Receive goods against a Purchase Order Navigation: Logistics -> Materials Management -> Inventory Management -> Goods Movement -> Goods Receipt -> For Purchase Order -> GR for Purchase order Input Close detail area tab Enter (search for) PO number Check “ok” box Enter storage location: finished goods + Enter Automatic data entry (tabs in detail data area) Where: Movement type, stock type, plant Save Document (material document) number: Magal and Word | Integrated Business Processes with ERP Systems | ©

Example / Demo Review Purchase Requisition Navigation: Logistics -> materials management -> purchase requisition -> Display Review status tab; note GR data Double click on PO number Review PO history tab Click material document number Review material document and go back In PO, close item detail, open header, review status Exit Magal and Word | Integrated Business Processes with ERP Systems | ©

Example / Demo Review GL accounts Navigation: Accounting -> Financial Accounting -> General Ledger -> Account -> Display Balances Review A/P account – nothing there! Why? Review GR/IR account View Inventory account Review vendor account Navigation: Accounting -> Financial Accounting -> Accounts Payable -> Account -> Display Balances Select and review vendor account – nothing there! Why? Magal and Word | Integrated Business Processes with ERP Systems | ©

Receive and Verify an Invoice Navigation: Logistics -> Materials Management -> Invoice Verification Input Enter date, amount and PO number Check “booking ok” box Verify green light and zero balance Automatic data entry Vendor data, material, quantity, price, total Save Document (accounting ) number: Magal and Word | Integrated Business Processes with ERP Systems | ©

Example / Demo Review Purchase Requisition Navigation: Logistics -> materials management -> purchase requisition -> Display Review status tab; note invoice data Double click on PO number Review PO history tab Click account document number Review account document and go back In PO, close item detail, open header, review status Exit Magal and Word | Integrated Business Processes with ERP Systems | ©

Example / Demo Review GL accounts Navigation: Accounting -> Financial Accounting -> General Ledger -> Account -> Display Balances Review A/P account – updated Review vendor account Navigation: Accounting -> Financial Accounting -> Accounts Payable -> Account -> Display Balances Select and review vendor account – Updated Magal and Word | Integrated Business Processes with ERP Systems | ©

Make payment to Vendor Navigation: Accounting -> Financial Accounting -> Accounts Payable -> Document Entry -> Outgoing Payment -> Post Input Enter date, bank account, amount and vendor account Enter to next screen Select invoices (double click invoice amount) to be paid until “amount entered” and “assigned” are equal Save Document (accounting ) number: Magal and Word | Integrated Business Processes with ERP Systems | ©