1. Procurement 201

2. 2 BRITE Procurement 201  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 Procurement 201Logistics Before we get started...

4. 4 BRITE Procurement 201 Concepts Demonstrations Exercises BRITE Classroom Materials (Let Me) (Tell Me) (Show Me)

5. 5 BRITE Procurement 201 At the end of this course, you should be able to:  Describe the requisition process  Create various types of requisitions  Describe the goods receipt/return process  Perform a goods receipt  Create a list of purchase requisitions based on your own search criteria Course Objectives

6. 6 BRITE Procurement 201Agenda UnitTime Introduction30 minutes Unit One: Requisition Processing3 hours Unit Two: Goods Movement1 hour Unit Three: Purchasing Reporting1 hour Summary30 minutes

7. 7 BRITE Procurement 201 Requisition Processing

8. 8 BRITE Procurement 201 At the end of this Unit, you should be able to:  Define key terminology  Describe the various types of purchase requisitions  Display a purchase requisition  Identify the three sections of a purchase requisition  Create requisitions (standard, stock transport, and framework)  Describe the function of Catalog Content Management Unit Objectives

9. 9 BRITE Procurement 201 At the end of this Unit, you should be able to:  Describe the process for procuring assets  Describe the process for creating requisitions against a grant  Describe the process for creating a textbook requisition  Display a purchase order for a given requisition Unit Objectives (cont.)

10. 10 BRITE Procurement 201 BRITE Key Terms Master DataInformation that rarely changes. For example, Material Master Record or Vendor Master Record Catalog Content Management Online catalog of materials available for purchase both internally and externally that are on contract. Document TypeUsed to identify the various types of purchasing documents (Standard Requisition, Framework Requisition, Stock Transport Requisition) Business AreaUsed to identify an area of responsibility such as Food Services, Budget Office, or a specific school Item CategoryA classification of the material or service being procured (standard, stock transport, service, etc.)

11. 11 BRITE Procurement 201 BRITE Key Terms (cont.) Account Assignment Category Designates how the expense for a procurement will be charged (cost center, project, grant, etc.) Material GroupCategory of materials; similar to a commodity code (classroom supplies, computer hardware, office supplies) Cost Center/Fund Center A unit of responsibility for capturing cost within a Business Area. Includes location number. GL Account Number Used to categorize expenses in the general ledger. For example, Consumable Materials or Computer Equipment (legacy system’s Class & Object Code) GrantA source of funding against which materials and services may be procured Invoicing PlanUsed to schedule regular, periodic payments to a vendor

12. 12 BRITE Procurement 201 Types of Purchase Requisitions There are three types of Purchase Requisitions that will be discussed in this course: Standard Requisitions Framework Requisitions Stock Transport Requisitions  Are used for external procurements  Can be entered line- by-line or via Catalog Content Management (CCM)  Can be entered with or without reference to a Material Master Record  Are used for external procurements  Can be created using an attached list for orders of 25 or more line items  Cannot be used for assets  Invoicing Plan  Are used for internal procurements  Will always be entered via Catalog Content Management (CCM)

13. 13 BRITE Procurement 201Requisitions All Requisitions have three sections:  Header—Contains a Text tab where internal information can be entered  Item Overview—Shows an overview of all the line items on the Requisition  Item Details—Shows detailed procurement information about each line item on the requisition.

14. 14 BRITE Procurement 201 Purchase Requisition Header Item Overview Item Details

15. 15 BRITE Procurement 201 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) –Z – Asset (Use in Phase 1) –A – Asset (Use in Phase 2) –K - Cost Center –P - Project –Y - Grant

16. 16 BRITE Procurement 201 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 Procurement 201 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

18. 18 BRITE Procurement 201 Demonstration and Exercise Scenario: Display a Purchase Requisition Transaction Code: ME53N

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34. 34 BRITE Procurement 201 Demonstration and Exercise Scenario: Create a Standard Purchase Requisition Transaction Code: ME51N

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62. 62 BRITE Procurement 201 Demonstration and Exercise Scenario: Change a Standard Purchase Requisition Transaction Code: ME52N Change the requisition you created in the previous exercise.

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69. 69 BRITE Procurement 201 What is Catalog Content Management Catalog Content Management (CCM):  Is a web-interface that allows end-users to search for and order standard catalog items from established suppliers with active contracts  Allows end-users to select materials by pointing and clicking on catalog items  Allows end-users to create a Requisition in SAP directly from an on-line shopping cart  Reduces data input errors and redundancy

70. 70 BRITE Procurement 201 CCM Requisitions Click the “Catalog” icon to access the on-line catalog.

71. 71 BRITE Procurement 201 Catalog Content Management CCM allows “point and click” selection of materials to be purchased

72. 72 BRITE Procurement 201 Demonstration and Exercise Scenario: Create a Standard Purchase Requisition Using CCM Transaction Code: ME51N

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90. 90 BRITE Procurement 201 Assets (Interim Process – Wave 1)  A Requisition item is considered an asset if its value exceeds $1,000  The account assignment category on the requisition is coded as “Z” for asset  For assets ordered against a grant, a Work Breakdown Structure (WBS) element will also be required -WBS contains details about who owns the grant and where the money is being spent  Asset tracking will continue to be performed in PROPS (Property & Inventory)

91. 91 BRITE Procurement 201 Requisitions for Grants  Non-assets ordered against a grant will have an account assignment category of “Y”  Assets ordered against a grant will have an account assignment category of “Z” during Wave 1  A WBS element must be entered on the requisition

92. 92 BRITE Procurement 201 Requisition Against a Grant The WBS element for items ordered against a Grant appears on the “Account Assignment” tab.

93. 93 BRITE Procurement 201 Stock Transport Requisitions Stock Transport Requisitions:  Will have an Item Category of “U” (Stock Transfer) and an Account Assignment Category of “K” (cost center)  Will go through an approval process similar to external requisitions  Will be automatically converted to stock transport orders after all budget checks and approvals have been accomplished  Can be used for B-stock as well as procurements from the central warehouse

94. 94 BRITE Procurement 201 Stock Locations Stock Transports can come from any of these locations

95. 95 BRITE Procurement 201 Stock Transport Requisition Process Flow Requisition entered by school or department Budget check performed Requisition approved by principal or department head Stock transport order created from requisition Material delivered from warehouse

96. 96 BRITE Procurement 201 Demonstration and Exercise Scenario: Create a Stock Transport Requisition for Material from the Central Warehouse Transaction Code: ME51N

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107. 107 BRITE Procurement 201 Framework Requisitions 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)

108. 108 BRITE Procurement 201 Demonstration and Exercise Scenario: Create a Framework Requisition Using an Attached List Transaction Code: ME51N

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130. 130 BRITE Procurement 201 Payments for Framework Purchase Orders  A two-way match (purchase order to invoice) is required—no goods receipt  A copy of the invoice is routed to the receiving school or department for verification and signature  Accounts Payable pays the invoice after it is approved

131. 131 BRITE Procurement 201 All Textbooks From FSBD (Core and Non- Core) – Elementary & Middle Schools Requisitions for textbooks are stock transport requisitions Textbook Requisition Process: Create a Stock Transport Requisition to Textbook Warehouse Non-Core Textbook Warehouse bundles PR’s & orders from FSBD Non-Core Textbooks shipped to warehouse or directly to school Note: These Stock Transport requisitions are entered as text items. Core Textbooks fulfilled from the Warehouse Core Textbooks shipped to schools Requisition Approved by Principal & Instructional Materials Facilitator

132. 132 BRITE Procurement 201 All Textbook Requisitions From FSBD – High Schools (Core and Non-Core) Requisitions for textbooks are “framework requisitions” Textbook Requisition Process: Select books on FL School Book Depository (FSBD) Website Attach PDF File to Requisition and Save Requisition Approved by Principal & Instructional Materials Facilitator Purchase Order Created by Buyer Get Order Total from Website Create & Hold Framework Req w/Order Total Enter Req # in FSBD Order on Website and Save PDF File is Automatically Printed From FSBD Website

133. 133 BRITE Procurement 201 You should now be able to:  Define key terminology  Describe the various types of purchase requisitions  Display a purchase requisition  Identify the three sections of a purchase requisition  Create requisitions (standard, stock transport, and framework)  Describe the function of Content Catalog Management Unit Objectives

134. 134 BRITE Procurement 201 You should now be able to:  Describe the process for procuring assets  Describe the process for creating requisitions against a grant  Describe the process for creating a textbook requisition  Display a purchase order for a given requisition Unit Objectives

135. 135 BRITE Procurement 201 Knowledge Checkpoint Question: What three types of requisitions did you learn how to create in this unit? Answer: Standard, Framework and Stock Transport

136. 136 BRITE Procurement 201Agenda UnitTime Introduction30 minutes Unit One: Requisition Processing3 hours Unit Two: Goods Movement1 hour Unit Three: Purchasing Reporting1 hour Summary30 minutes

137. 137 BRITE Procurement 201 Goods Movement

138. 138 BRITE Procurement 201 At the end of this Unit, you should be able to:  Describe the Goods Receipt and Return processes  Perform a Goods Receipt  Perform a Goods Return Unit Objectives

139. 139 BRITE Procurement 201 Goods Receipts and Returns in SAP  A Goods Receipt is executed in SAP any time material is received against a standard purchase order  When a Goods Receipt is executed, a material document is created in SAP that includes details of the transaction (date, quantity, storage location, etc.)  A Goods Return is executed to return material to a vendor  Goods Returns must be coordinated with Purchasing and Accounts Payable  Goods Receipt and Returns have different movement types in SAP, such as: –101: Goods Receipt for Purchase Order into Warehouse –122: Return Delivery to Vendor

140. 140 BRITE Procurement 201 Demonstration and Exercise Scenario: Perform a Goods Receipt Transaction Code: MIGO_GR

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149. 149 BRITE Procurement 201 Demonstration and Exercise Scenario: Perform a Goods Return Transaction Code: MIGO

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159. 159 BRITE Procurement 201 You should now be able to:  Describe the Goods Receipt and Return processes  Perform a Goods Receipt  Perform a Goods Return Unit Objectives

160. 160 BRITE Procurement 201 Knowledge Checkpoint Question: What type of Purchase Order requires a Goods Receipt? Answer: Standard

161. 161 BRITE Procurement 201Agenda UnitTime Introduction30 minutes Unit One: Requisition Processing3 hours Unit Two: Goods Movement1 hour Unit Three: Purchasing Reporting1 hour Summary30 minutes

162. 162 BRITE Procurement 201 Purchasing Reporting

163. 163 BRITE Procurement 201 At the end of this Unit, you should be able to:  Describe the use of List Displays in SAP  Display a list of Purchase Requisitions Unit Objectives

164. 164 BRITE Procurement 201 List Displays in SAP A List Display in SAP is a powerful and flexible tool that allows End-Users to:  Generate a list of purchasing documents, materials, vendors, etc. that match a set of search criteria  Perform real-time, ad-hoc reporting  Change the content and layout of reports  Print hard copy reports or export them to other applications such as Excel

165. 165 BRITE Procurement 201 Demonstration and Exercise Scenario: Display a List of Purchase Requisitions Transaction Code: ME5A

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180. 180 BRITE Procurement 201 You should now be able to:  Describe the use of List Displays in SAP  Display a list of Purchase Requisitions Unit Objectives

181. 181 BRITE Procurement 201 Knowledge Checkpoint Question:What are some advantages of using list displays in SAP? Answer:Real-time information, ad-hoc reporting, ability to change content and layout, export to Excel.

182. Follow-Up & Support Options

183. 183 BRITE Procurement 201  HELP DESK 754-321-8120  BRITE Website: web/erp -or- http://www.broward.k12.fl.us/erp/  e-Learning  Context Sensitive Help  CAB Conference  BRITE LITES (By Role) User Support Options  ESS Appraisal  Blackboard Follow-Up

184. 184 BRITE Procurement 201 Change History DateNameChange Description 06/04/07Eric TobiasInitial Draft 06/11/07Eric TobiasRevisions Made 7/18/07Garland HamicUpdated with revisions from PDD 7/25/2007Garland HamicUpdated with revisions from Robert & Jeetendra 8/16/2007Garland HamicFinal edits made for Robert 8/17/2007Garland HamicAdded screen shots for: Elementary/middle non-core book process Accounting data Updated with screen HTML shots 8/17/2007Robert PeinadoSign off 8/17/2007Gina FerrazzoTentative sign-off, wants changes for later trainings 8/18/2007Kris MaccubbinProofread 8/28/2007Robbin McGillUpdated with revisions from Department Pilot Training 9/21/2007Robbin McGillUpdated with revisions from School Pilot Training and Evelyn & Janice