Procurement Process
Procurement in mySAP ERP covers not only traditional processes such as requisitioning, purchase order management, and invoice verification, but also catalog-based self-service requisting for maintenance, repair, and operation (MRO) materials and services. This catalog integration is expanded to maintenance operations and project management.
MRO (maintenance, repair dan operations)
Catalog-based self-service requistioning for maintenance. Repair, and operations (MRO) materials and services.
Procurement in mySAP ERP improves procurement processes by facilitating plan-driven and ad hoc purchasing, complete inventory management, and intelligent reporting on all procurement activities.
You can enter purchase requisitions yourself or they can be generated automatically by the materials planning and control system.
Source determination
mySAP ERP helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements.
This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via EDI, if desired.
Request for Quotation (RFQ’s)
The process of creating requests for quotation (RFQs), which can be sent to vendors electronically via EDI, if desired.
Vendor selection and comparison of quotation
The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations.
As with purchase requisitions, you can generate purchase orders yourself or have the system generate them automatically.
Vendor scheduling agreements and contracts (in the SAP system, types of long-term purchase agreement) are also supported.
Purchase order creation
The purchase order adopts information from the requisition and the quotation to help you create a purchase order.
Purchase order follow up
The system checks the reminder periods you have specified and if necessary, automatically prints reminders or expenditures at the predefined intervals. The system also provides you with an up to date status of all purchase requisitions, quotations, and purchase orders.
The system also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.
Good receiving and inventory management
Goods receiving personnel can conform the receipt of goods simply by entering the purchase order number. By specifying permissible tolerances, buyers can limit over and under deliveries of ordered goods.
By specifying permissible tolerances, buyers can limit over- and under-deliveries of ordered goods.
Purchase Orders
A purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions.
You can create purchase orders without reference, or with reference to a purchase requisition, a request for quotation, or another purchase order.
When you enter the purchase order data, the system suggests default values. For example, the system suggests the ordering address, as well as the terms of payment and freight (incoterms) from the vendor master record. If you have maintained a material master for a given material in the SAP system, the system suggests the material short text or the material group, for example. If a purchasing info record already exists in the system, the system copies a price proposal to the purchase order.
Self service procurement
Self service procurement allows employees to create and manage their own requisition. It relieves your purchasing depertemenr of this administrative burden while making the procurement process both faster and more responsive.
Self service requisitioning
Self service requisitioning means purchasing non strategic goods, that is goods not directly linked to the value chain (MRO). This includes, for example office materials, work clothes, and IT equipment.
Inventory Management
The procurement process is concluded by the invoice verification process, during which invoices and credit memos are entered and the contents and prices are checked for accuracy. However, payment and evaluation of invoices is not part of invoice verification; the appropriate information for these tasks passes on to other departments. Invoice verification, therefore, creates a link between Procurement and Accounting.
The goods receiving point can check whether the delivery is the same as the purchase order data, that is, whether the goods that were ordered have been delivered.
Invoice verification
The procurement process is concluded by the invoice verification process, during which invoices and credit memos are entered and the contents and process are checked for accuracy.
Invoice verification therefore creates a link between procurement and aacounting.
The accounts payable clerk is notified of quantity and price variances because the system has access to purchase order and goods receipt data.
However, payment and evaluation of invoices is not part of invoice verification; the appropriate information for these tasks passes on to other departments.
Message to purchasing documents
You can issue all purchasing documents as messages. Each time you create an RFQ (Request for quotation), purchase order, contract, or scheduling agreement, the system can create a message from the document affected. This message is then placed in the message queue.
To issue the message (by printing, e-mail, fax, or EDI) from the message queue, you have the following options:
· Issue immediately: The system issues the message directly from the queue, in other words, as soon as you save the document.
· Issue later:
v Either you schedule a background job that processes the message queue in determined intervals, or you start the issue directly from the purchasing menu.
v As a rule, you issue the messages using the background job and start the issue manually only as an exception (such as for rush orders).
