1. Purchasing Super User Training

2. 2 BRITE Purchasing Super User  Have fun and enjoy the opportunities we have to contribute to SBBC’s future success!  Please turn off or silence cell phones and pagers  Please do not read or send email messages during class time  Respect those speaking and asking questions by keeping side discussions to a minimum  Please do not interrupt the person speaking  We will start, break, and end on time  All unanswered questions will be placed in the “Parking Lot” and answers will be distributed later Welcome and Ground Rules

3. 3 BRITE Purchasing Super UserLogistics Before we get started...

4. 4 BRITE Purchasing Super User SAP Master Data

5. 5 BRITE Purchasing Super User SAP Master Data  Master Data Records contain information that rarely changes  Using Master Data Records in purchasing documents reduces data entry, errors, and redundancy  Material Master Records include information such as unit of measure, description, and purchasing data  Vendor Master Records include information such as address, contact information, and payment terms

6. 6 BRITE Purchasing Super User Material Request Form  A material request form will be completed and submitted to the Data Strategy Group whenever a new Material Master Record needs to be created

7. 7 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a Material Master Record Transaction Code: MM03

8. 8 BRITE Purchasing Super User Vendor Profile Form  The Vendor Profile Form must be completed and submitted to the Data Strategy Group whenever a new Vendor Master Record needs to be created

9. 9 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a Vendor Master Record Transaction Code: MK03

10. 10 BRITE Purchasing Super User Purchase Requisitions

11. 11 BRITE Purchasing Super User Types of Purchase Requisitions There are three types of Purchase Requisitions that will be discussed in this course: Standard Requisitions Framework Requisitions FNS Commodity Requisitions  Are used for external procurements  Created manually by schools & depts or automatically for MRP items  Used for both materials & services  Can be entered with or without reference to a Material Master Record  Require a Goods Receipt  Are used for external procurements  Can be created using an attached list for orders of 25 or more line items  Are created for items for which pricing is unknown until invoice is received (for example, fuel, landscaping, utilities)  Cannot be used for assets  Invoicing Plan  Generated by FNS department to receive commodities received from government

12. 12 BRITE Purchasing Super User Material Order Form  Requestors will provide details about the materials they wish to order by completing a material order form and forwarding it to the appropriate requisitioner

14. 14 BRITE Purchasing Super User Account Assignment Categories Each line item on a Requisition must have an Account Assignment Category. The following five account assignment categories will be covered in this course: – - Inventory (Warehouse, PPO, Cafeteria Groceries) –Z – Asset (Use in Phase 1) –A – Asset (Use in Phase 2) –K - Cost Center –P - Project –Y - Grant

15. 15 BRITE Purchasing Super User Item Categories Each line item on a purchase requisition will have an Item Category:  Standard – Used for material line items for which there is a specific quantity/unit price and a goods receipt requirement. The Item Category is left blank. (Ex: items on contract or invoicing plans.)  Limit – Used for line items for which there is a funding limit but not a specific quantity/unit price and no goods receipt requirement The Item Category is B for Limits. (Ex: Attached lists, landscaping, fuel.)

16. 16 BRITE Purchasing Super User Material Groups  The Material Group is a code used to group together materials with the same attributes (e.g., office supplies)  The Material Group will be the three-character National Institute of Governmental Purchasing (NIGP) code (e.g., 615 for “Office Supplies, General”  The Material Group will default for those items that have a Material Master Record  For those items that do not have a Material Master Record, the Material Group must be entered on the requisition

17. 17 BRITE Purchasing Super User Organization Structure

18. 18 BRITE Purchasing Super User Accounting Data Accounting ObjectNumber of Digits Fund 3 or 4 Class1 Function4 Object3 Phase1 Sub-Object2 Location4 Type1 Activity5 Legacy Line of Coding Accounting ObjectComposition General Ledger (G/L) Account Number Class + Object + Zeros Eight Digits Ex: 5 511 0000 Fund Previous Fund # + 0 (if required) Four Digits Ex: 100 0 Functional Area Function + Activity + Zeros Sixteen Digits Ex: 5101 00000 0000000 Cost Center Business Area + Type + Location + 0 Ten Digits Ex: 3307 1 1091 0 SAP Accounting String

19. 19 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a List of Purchase Requisitions (By Purchasing Group) Transaction Code: ME5A

20. 20 BRITE Purchasing Super User Purchase Requisition Approval Process  All requisitions are subject to principal / dept head approval  Standard requisitions with items for specific material groups (ex: chemicals) are subject to approval by Curriculum Specialist, Technology, Textbook, or FNS after approval by principal / dept head  All requisitions are subject to final level of approval by area superintendent during a budget freeze

21. 21 BRITE Purchasing Super User Vendor Solicitations

22. 22 BRITE Purchasing Super User Vendor Solicitations The following types of Solicitations will be discussed in this course: RFQITB/RFQ  For procurements between $5K & $25K  Will now be performed by Purchasing Dept  Will be grouped by Collective Number (Req #)  Can be electronically submitted to vendors (e-mail or e-fax)  For Materials & Services over $25K  Solicitation of bids/proposals will continue in Demand Star  Will be grouped by Collective Number (Demand Star Bid/RFP number)

23. 23 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create RFQ to Three Vendors Referencing a Standard Requisition Transaction Code: ME41

24. 24 BRITE Purchasing Super User Demonstration and Exercise Scenario: Change an RFQ Transaction Code: ME42

25. 25 BRITE Purchasing Super User Demonstration and Exercise Scenario: Message Output - RFQ Transaction Code: ME9A

26. 26 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create RFQ Referencing a Framework Requisition with an Attached List Transaction Code: ME41

27. 27 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create ITB Transaction Code: ME41

28. 28 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display RFQ/RFQ/ITB Transaction Code: ME43

29. 29 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display RFQ’s by Material Group Transaction Code: ME4C  Display by Material Group from last exercise  Display by Purchasing Group to view RFQ’s for a given buyer

30. 30 BRITE Purchasing Super User Maintaining Quotations  Captures vendor responses to RFQ’s, RFP’s, and ITB’s  Includes each vendor’s pricing, delivery, and contract terms  Facilitates faster PO/Contract creation by referencing Vendor quotations  Quotations will be maintained for RFP’s and ITB’s from successful bidders

31. 31 BRITE Purchasing Super User Demonstration and Exercise Scenario: Maintain a Vendor Quotation Transaction Code: ME47

32. 32 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a Quotation Transaction Code: ME48

33. 33 BRITE Purchasing Super User Contracts

34. 34 BRITE Purchasing Super UserContracts  The Our Reference field will be the bid number advertised in Demand Star  Can be limited by Plant (Schools & Departments, Food & Nutrition, Warehouses)  Will replace Open PO’s where funds do not need to be encumbered up-front  Can have multiple PO’s issued as releases against them when materials or services are required  Can be for specific items/services or for just a total value (Ex: catalog bids)

35. 35 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create a Contract Referencing an ITB  With Line Items  Without Line Item (Value Contract) Transaction Code: ME31K

36. 36 BRITE Purchasing Super User Demonstration and Exercise Scenario: Change a Contract Transaction Code: ME32K

37. 37 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a Contract Transaction Code: ME33K

38. 38 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a List of Contracts Transaction Code: ME3N

39. 39 BRITE Purchasing Super User Purchase Orders

40. 40 BRITE Purchasing Super User Purchase Order Text & Notes  Purchase Order text and internal notes can be entered, pasted, or updated on the Texts tabs in either the PO header or the line item details sections.

41. 41 BRITE Purchasing Super User Delivery Addresses  The initial delivery address defaults from the storage location, but it can be overridden by either the requisitioner or the buyer by typing an alternate address or selecting a different standard address code on the Delivery Address tab in the line item details section.

42. 42 BRITE Purchasing Super UserTolerances The following tolerances apply to purchasing and material documents:  Purchase Order line items can be created for the lesser of 10% or $100 over the value of the Requisition line item  Goods Receipt tolerances are set in the Purchase Order  Invoice line items can be paid for the lesser of 1% or $10 over the unit price of the item

43. 43 BRITE Purchasing Super User Types of Purchase Orders The following Purchase Order types will be discussed in this course:  Standard  Framework  Emergency  Conversion  Student Assessment

44. 44 BRITE Purchasing Super User Standard Purchase Orders  Standard PO’s are created referencing standard purchase requisitions  Standard purchase order creation can be accomplished through: –Manual creation by a purchasing agent –Auto PO created by SAP  All items are accepted through a goods receipt  Information brought in from requisitions includes: –Item details –Account assignment category –Delivery addresses –Vendor if specified –Texts

45. 45 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create a Standard Purchase Order Transaction Code: ME21N

46. 46 BRITE Purchasing Super User Printing Purchase Orders  Using transaction code ME9F, you can select purchase orders (by PO number, Vendor number, Purchasing Group, etc) that you want to print.

47. 47 BRITE Purchasing Super User Demonstration and Exercise Scenario: Message Output – Purchase Orders Transaction Code: ME9F

48. 48 BRITE Purchasing Super User Purchase Orders Maintenance  Purchase Order change requirements will be communicated to Purchasing via a Purchase Order Maintenance form submitted through CAB

49. 49 BRITE Purchasing Super User Purchase Order Versions  PO Versions are tracked on the Versions tab in the Header section of the PO.  In order for a version to be printable, you must select the Version Completed checkbox or the Complete Version flag.

50. 50 BRITE Purchasing Super User Demonstration and Exercise Scenario: Change a Standard Purchase Order Transaction Code: ME22N

51. 51 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a Standard Purchase Order Transaction Code: ME23N For this exercise, display Purchase Order 450000578 to review PO history

52. 52 BRITE Purchasing Super User Framework Purchase Orders Framework Requisitions are created for:  Items Ordered via Attached Lists –Must be items that cannot be procured with a P-card –Must be 25 or more line items –Must be non-assets  Items for which pricing is unknown until invoice is received (for example, fuel, landscaping, utilities)  Items to be paid for via Automatic Payment (Invoicing Plan, ex: lease of a portable)

53. 53 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create a Framework Purchase Order with an Invoicing Plan Transaction Code: ME21N

54. 54 BRITE Purchasing Super User Demonstration and Exercise Scenario: Create a Framework Purchase Order – Limits with Attached List Transaction Code: ME21N

55. 55 BRITE Purchasing Super User Demonstration and Exercise Scenario: Purchasing Reporting Transaction Code: ME80FN

56. 56 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display Purchasing Documents per PO # Transaction Code: ME2N

57. 57 BRITE Purchasing Super User Demonstration and Exercise Scenario: Display a List of Purchase Orders by Material Group Transaction Code: ME2C

58. 58 BRITE Purchasing Super User Emergency Purchase Orders  Necessary if P-card cannot be used during emergency  Issued manually by purchasing agents using external numbering during a crisis and created in SAP after the emergency  No purchase requisition required  No system approval required since request comes to the Purchasing Department from principals, department heads or Emergency Operating Center

59. 59 BRITE Purchasing Super User Conversion Purchase Orders  Open legacy PO’s will be imported to SAP to support outstanding goods receipts and invoice receipts  The document type for conversion PO’s will be ZCNV  Legacy PO numbers will start with a Z for FY2000 PO’s and later; Y for FY1999 PO’s and earlier  The MSA PO number will be in the internal notes tab of the item details section

60. 60 BRITE Purchasing Super User Student Assessment Purchase Orders  Student Assessment PO’s are created to receive assessment materials into inventory at zero cost  No requisition is required  There is no financial impact to the budget  There will be one PO for the entire year  The document type is ZA

61. 61 BRITE Purchasing Super User Purchase Orders for the Next Fiscal Year  Requisitions for the next fiscal year will have dates later than July 1 st  When the PO is being created, change the document date to July 1 st of the next fiscal year  PO’s for contract items less than $25K will be automatically generated  In the Texts tab of the PO Header section, enter the standard text note SBBC Next Fiscal Year

62. 62 BRITE Purchasing Super User Auto-Generated Purchase Orders  SAP will automatically convert requisition lines under $25,000 with a valid contract  POs will be ready for purchasing agent review before they are transmitted to vendors  POs will be created per location  Auto PO indicator on vendor master and material master record must be checked

63. 63 BRITE Purchasing Super UserWrap-Up/Q&A