Inventory Facility Need to replenish Stock Levels with more products. But to avail more products, GBI has to buy materials to produce the products in its factory/factories, then move them to the inventory facility Sales Channels Production Facility Material Management Sales Reduces Stock Levels Material Management reflects the procurement work that GBI carries out to buy materials for producing finished bike and accessory products. As customers buy products from GBI, their inventory level will shrink. To ensure, there is always sufficient products on stock for future sales, GBI employees will have to procure (purchase) materials to produce more products to replenish the shrinking inventory stock.

Functions involved in MM Material Management (MM) Financial Accounting (FI)

Material Management Business Processes Contract Admin W’house Supervisor Inventory Supervisor Technical Office Assistant Technical Office Assistant 1 Create New Vendor 2 Create Material Master For Trading Goods 5 Create Purchase Requisition 7 Create Request for Quotation 8 Maintain Quotations From Vendors 3 Extend Material Master for Trading Goods 4 / 6 Display Stock / Req List 9 Evaluate Quotations on Price Inventory Supervisor Material Management Business Processes Technical Office Assistant 10.1 Reject Quotations W’house Employee Copy sale views for different plan Inventory Supervisor Inventory Supervisor 15 / 20 Display PO History A/Payable Specialist Buyer Buyer 14 Create Invoice Receipt from Vendor 10.2 Create Purchase Order from RFQ 11 Display Purchase Order Receiving Clerk 19 Display Line Items 16 Create Goods Receipt for Delivered PO 13 Sight/Verify Physical Receipt of Goods 12 Create Goods Receipt for Purch Order Inventory Supervisor Chief Accountant 21 Display GL Account Balances & Line Items 18 /20 Post Payments to Vendor 17 Create Invoice Receipt from Vendor Receiving Clerk Receiving Clerk A/Payable Specialist A/Payable Specialist

GBI decides a new material vendor Logistics ► Materials Management ► Material Master ► Material ► Create (Special) ► Trading Goods Create New Vendor Joyce Hausman (Contract Admin)

Create a new trading good / material (chain lock) in Miami plant 2. Create Chain Lock in Material Master File Create different viewing tabs of new Chain Lock material  Assign the Miami plant to view & update the basic information about this new material: Pick up Miami Plant record     Sandeep Das (Warehouse Supervisor) Choose the Basic Data 1 tab, and update the information: Set base unit to EA (each); Utility code to UTIL, Division to AS, Gross and New Weights to 65 and Weight Unit to Oz Choose the Sales Org 1 tab, and update the information as instructed Then click CONDITIONS to set the conditional price of the Chain Lock in Miami

Select the chain lock material item for copying Copy Miami’s sale views of the chain lock to share the info with the San Diego plant 3. Extend Material Master for Trading Goods Select the chain lock material item for copying Select and copy Miami’s 3 sales views for sharing the trading good info with San Diego plant Indicate the copying source (Miami Delivery plant) and destination (Sand Diego SD) Sergey Petrov (Warehouse Employee)

4. Display Miami’s stock level of the new trading product (Chain Lock) Indicate which plant (Miami) & material (chain lock) to inquire Display chain lock’s inventory level 4. Display Miami’s stock level of the new trading product (Chain Lock) There should be some chain locks in inventory. Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ► Stock/Requirements List Wilton Saban (Inventory Supervisor)

Request a bid for 200 locks within a month, to select the best bid for ordering to meet a promotional campaign in 3 months’ time 5. Create Purchase Requisition (ie order more chain locks to replenish the inventory level Logistics ► Materials Management ► Purchasing ► Purchase Requisition ► Create Wilton Saban (Inventory Supervisor)

6 Display Stock/ Requirement List Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ► Stock/Requirements List 6 Display Stock/ Requirement List Alberto Conti (Technical Office Assistant) Alberto checks purchase requisition has been issue to stock up for the promotion campaign in 3 month’s time

7. Create RFQ (Quotes) for Vendors Albert is collecting pricing, delivery and other information for selecting the best vendor’s offer Logistics ► Materials Management ► Purchasing ► RFQ/Quotation ► Request for Quotation ► Create Alberto Conti (Technical Office Assistant)

8 Maintain Vendors’ RFQ Responses For each RFQ received, do the following: 8 Maintain Vendors’ RFQ Responses Alberto Conti (Technical Office Assistant) Logistics ► Materials Management ► Purchasing ► RFQ/Quotation ► Quotation ► Maintain

9 Evaluate RFQ quotations on price Compare the recorded vendors’ RFQ’s prices Decide Vendor 9 Evaluate RFQ quotations on price Reject the rest Wilton Saban (Inventory Supervisor) Logistics ► Materials Management ► Purchasing ► RFQ/Quotation ► Quotation ► Price Comparison

10 Create Purchase Order Referencing an RFQ Logistics ► Materials Management ► Purchasing ► Purchase Order ► Create ► Vendor/Supplying Plant Known 10 Create Purchase Order Referencing an RFQ Aura Maxwell (Buyer)

11 Display Purchase Order Logistics ► Materials Management ► Purchasing ► Purchase Order ► Display Aura Maxwell (Buyer)

12 Create Goods Receipt for Purchase Order Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO) Tatjana Karsova (Receiving Clerk)

13 Verify Physical Receipt of Goods Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ► Stock Overview Tatjana Karsova (Receiving Clerk)

14 Create (a copy of) Invoice Receipt from Vendor (for GL posting) Logistics ► Materials Management ► Logistics Invoice Verification ► Document Entry ► Enter Invoice Silvia Cassano (Accounts Payable Specialist)

14 Create Invoice Receipt from Vendor (continue) Note: When you enter to save the work, you may find the system will ask you to “enter the tax jurisdiction code” – enter FL000000 (FL with 7 zeros) and that should clear the error message Silvia Cassano (Accounts Payable Specialist)

15 Display Purchase Order History Logistics ► Materials Management ► Purchasing ► Purchase Order ► Display The PO should automatically display, otherwise find it You can see all the data via the following tabs: Purchase Order History Material Document Follow-on Documents (GL Postings) 15 Display Purchase Order History Wilton Saban (Inventory Supervisor)

16 Create Goods Receipt (Document) for Purchase Order Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO) CHOOSE Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO) Select PO Number to create receipt document 16 Create Goods Receipt (Document) for Purchase Order Tatjana Karsova (Receiving Clerk)

17 Create (another copy of) Invoice Receipt from Vendor (for vendor payment reference in payment mail-out to the vendor) Logistics ► Materials Management ► Logistics Invoice Verification ► Document Entry ► Enter Invoice Silvia Cassano (Accounts Payable Specialist)

18 Post Payments to Vendor Accounting ► Financial Accounting ► Accounts Payable ► Document Entry ► Outgoing Payment ► Post Accounting ► Financial Accounting ► Accounts Payable ► Document Entry ► Outgoing Payment ► Post Silvia Cassano (Accounts Payable Specialist)

19 Display Vendor (Debit/Credit) Line Items Accounting ► Financial Accounting ► Accounts Payable ► Account ► Display Balances Shuyuan Chen (Chief Accountant)

20 Display/Review G/L Account Balances and Individual Line Items Accounting ► Financial Accounting ► General Ledger ► Account ► Display Balances (New) Shuyuan Chen (Chief Accountant)

20 Display Purchase Order History Logistics ► Materials Management ► Purchasing ► Purchase Order ► Display 20 Display Purchase Order History Wilton Saban (Inventory Supervisor)