View
230
Download
1
Category
Preview:
Citation preview
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 1/36
• Procurement of Stock – from quotation to stock procurement (V3E)
• The purchasing process may start with a Request for Quotation by which a purchasingorganization Employee requests a quotation for the supply of material(s) from a vendor(s). TheRFQ process includes offer comparisons to select the best source. The buyer will evaluate theresponses from vendor(s) and determine the best source of supply. The agreed material cost
will be captured on the material master and form part of inventory valuation based upon areleased standard cost.
• Material specific information including vendor pricing and lead-time from the quotation arecaptured within SAP master data records namely info records and linked to transactionalrequisitions and purchase orders via an SAP look up called a source lists. Info Records andSource Lists can have one or more vendors associated with the material; however, one vendoris designated as the primary source for the material.
• A Purchase Requisition is either generated via the Material Requirements Planning process ormanually from a requestor. A Buyer will validate the accuracy of the Purchase Requisition andconvert the Purchase Requisition into a Purchase Order. The purchase order is subject toapproval based on a predefined dollar amount prior to being issued to a vendor.
• Goods are shipped from the vendor and received to the purchase order referenced on thedocument from the vendor. Inventory is received into a location based on fixed parameters
proposed from the material master that can be changed at time of transactional data capture,that is Purchase Order creation or goods receipt.
• The invoice is received from the vendor. Invoices are entered with reference to a purchaseorder and item, providing a three way match, purchase order value, goods receipt value andinvoice value. If there are any variances between invoice and purchase order value, the invoicewill be blocked and forwarded to the buyer for approval. Checks to vendors are generatedbased on the net term condition reflected on the invoice, defaulted from the vendor master.Variances due to deviations from standard price are collected in the purchasing cost center andallocated to Product Line level based on a predefined percentage as determined by thebusiness.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 2/36
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 3/36
• Quotation for Procurement (V3A)
• The request for quotation (RFQ) process starts with a
request for material(s) from a vendor(s). The RFQ process
includes offer comparisons to select the best source. The
buyer will evaluate the responses from vendors to
determine the best source of supply. The accepted
quotation will be processed into a purchase order and areject letter is sent to the vendor(s) whose quotations were
rejected.
• Material-specific information including vendor pricing andlead-time from the quotation are captured within SAP
master data records.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 4/36
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 5/36
Procurement - Contract (V3F)
Contracts are agreements with the vendor to supply materials or services with negotiated
conditions and within a certain period. Contracts are differentiated as follows:
•Quantity contracts: An agreement that a company will order a certain quantity of a product
during a specified period.
•Value contracts: A contract in which the purchase of goods or services up to a total value isagreed.
In source determination, contracts replace the purchasing info records and can be assigned
in the source list as the fixed source for MRP.
Procure to Stock - Contract
V3F
R e q u i s i t i o n e r
B u y e r
E v e n t
A need for
material isidentified
MRP Generated
ProcurementNeeds
Purchase
Requisition
4.2
Assign Vendor
from Contract to
Requisition
4,4
V3E
Procure to Stock
Value or Qty
Contracts Report
4.3
Monitor Value or
Qty Contracts
4.1
V8T
CreatePurchasing
Contract
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 6/36
Stock transfer with delivery (V3G) The stock transfer process begins with a requirement to transfer material from one plant to
another within the same company code. This request, in the form of a stock transfer
requisition, may be created in the procuring plant automatically by MRP or manually by a
buyer.
There are no master data requirements beyond the material master to support the stock
transfer process. The material master must exist in both the procuring (receiving) plant and
the providing (shipping) plant. Also, stock transfer purchase orders are not subject to
approval like other purchase orders.
A Buyer will validate the accuracy of the Stock Transfer Purchase Requisition and convert
it into a Stock Transfer Purchase Order.
A Warehouse clerk at the shipping plant monitors the materials due to be shipped and
creates deliveries as necessary. Once a delivery is created, a pick list is generated for the
materials. A Warehouse clerk gathers the materials and confirms the picked quantities.
Once the delivery is complete, the delivery quantities are issued, appropriate
documentation is generated, and the shipment is sent, ending the process for the shipping
plant.
Goods are received at the receiving plant referencing the delivery number on the shipping
documents. Inventory is received into a location based on fixed parameters proposed from
the material master which can be changed at time of transactional data capture i.e.
Purchase Order creation or goods receipt.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 7/36
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 8/36
nven ory oun an us menThis scenario covers the periodic process making
necessary adjustments to stock on hand after a physical
count.
The process begins with the generation of the inventory
count sheets. Once the inventory sheets are printed out,
the actual physical inventory count occurs for the givenmaterials. Next, the count is entered in the system and
then any discrepancies against the system quantities are
reviewed. The inventory may be recounted until final
counts are accepted and inventory differences areposted.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 9/36
Inventory
Adjustment
Inventory count and adjustment
V3B
P l a n t
C o n t r o l l e r
W a r e h
o u s e
M a n a g e r
W
a r e h o u s e
C l e r k
E v e n t
Periodic
Physical Count
Needed
4.1
Collective Create
Physical InventoryDocument
4.2
Print Physical
InventoryDocument List
Physical Inventory
Document
4.3
Physical
Count
4.4
Enter Count
Review
Inventory Count
Different List
4.7
Post Inventory
Count Difference
End Process
4.6
Accept
Count
4.5
RecountNo
1
Yes
Yes Accept Count
No
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 10/36
MM Subcontracting (V3J) MM Subcontracting process involves sending raw
components to a vendor for specific manufacturing processes
and receiving the value-added finished material back into
inventory.
A Subcontract Purchase Requisition is either generated via
the Material Requirements Planning process or manually by a
requestor. A Buyer will validate the accuracy of the PurchaseRequisition and convert it into a Purchase Order. The
purchase order is subject to approval based on predefined
parameters prior to being issued to a vendor.
The consumption of sent components is recorded upon
receipt of the value-added finished material. The vendor
sends the invoice for the services provided which is paid
during the normal payment cycle.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 11/36
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 12/36
Consumable Purchasing (V3H) The consumable (MRO) items (goods or services) are entered with no material
number but rather a short text description as the main identifiable characteristic.
The purchase order is subject to approval based on predefined parameters prior to
being issued to a vendor.
For consumable goods, the inventory is received into a location based on
parameters defined in the purchase order material line item. The value of the
goods is expensed to a cost center.
When the invoices is received from the vendor, they are entered with reference toa purchase order and item, providing a three way match, purchase order value,
goods receipt value and invoice value. If there are any variances between invoice
and purchase order value, the invoice will be blocked and forwarded to the Buyer
for approval. Checks to vendors are generated based on the net term condition
reflected on the invoice, defaulted from the vendor master. Variances due to
deviations from standard price are collected in the purchasing cost center andallocated to Product Line level based on a predefined percentage.
Procurement for a consumable service follows the same general flow. However, as
the consumable service has no goods receipt element within the system, it is paid
based on the invoice receipt.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 13/36
e urn o en or
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 14/36
e urn o en orThe return to vendor process begins with a requirement to return
an item to a vendor. The initial activity is to request a Returns
Material Authorization (RMA) from the vendor. This is a manual
step and the RMA number will be entered into a text field in thereturn PO. The Buyer will then create a Return PO in the system.
The return PO is similar to a standard PO except for the return
flag which sets up the return delivery to enable shipment of the
item(s) back to the vendor.
The Return PO confirmation goes to the Vendor and the Return
Delivery is sent to the Shipping department where the item(s) are
picked and shipped back along with a Delivery Note. When the
Shipping department creates the delivery the item(s) are relievedfrom inventory. A credit memo is generated which relieves the
liability to the vendor.
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 15/36
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 16/36
Inventory Disposition - Valuated (V3C) This scenario covers two primary goods movements: goods issue to scrap and to
a cost center.
Goods are issued to scrap when the material being manufactured is directlyidentifiable with a particular product line. The value of the scrap is reflected directly
to a product line in the profitability analysis income statement.
Goods are issued to a cost center when the material is used for non-
manufacturing purposes internally in the organization.
V3C
Inventory Disposition (Valuated)
W a r e h o u s e
M a n a g e r
A c c o u n t i n g
E v e n t
4.1.2
GI to Scrap COPA
1
Scrap Expense
Inventory
Non-Customer-
related disposition
4.1.1
V4F
Returns and
Complaints
4.2.1
GI to Cost Center
1
Scrap Expense
Inventory
I t Di iti N l t d (V3D)
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 17/36
Inventory Disposition - Non-valuated (V3D) This scenario covers two primary goods movements: goods movements between
unrestricted stock and blocked stock and miscellaneous inventory movements within
the plant.
These movements do not generate any accounting documents as the goodsmovements have no financial impact.
V3D
Inventory Disposition – Non-Valuated
W a r e h o u s e C l e r k
E v e n t
4.1.2
Transfer
Unrestricted to
Blocked
4.1.1
V4F
Returns and
Complaints
4.2.1
Transfer Blocked
to Unrestricted
Miscellaneous
transfers
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 18/36
Master Data
Create Vendor Master (V8B)
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 19/36
Maintain Vendor Evaluation
Maintain Vendor Evaluation
V7Y
P u r c h a s i n g
M a n a g e r
B u y e r
E v e n t Need to evaluate
Vendors
performance
3.2
Maintain vendor
evaluation
3.1
V3E
Procure to
stock
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 20/36
Creating Purchasing Information Record (V7Z)
Create Purchasing Info Record
V7Z
B u y e r
E n g i n e
e r i n g
E v e n t
Need for a new
Pur. Info Record
V8B
Create
vendor
master End process
4.1
Create purchasing
info record
V7A/V7B/V7C
Raw, Semi, Tradematerial creation
4.2
V8A
Create
source list
4.3
V7N
Create
routings
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 21/36
Create Source List (V8A)
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 22/36
Create Raw (ROH) Material (V7A)
Create Raw (ROH) Material
V7A
E n g i n e e r i n g
E v e n t Need for new raw
material
End process
3.1 - 3.9Create raw
material
3.12
V7J
Create Bill of
Materials
3.13
V7Z
Create Pur.
Info Record
3.14
V8P
Create
Engineering
Change No.
3.15
V8Q
Create Product Cost
Planning for an
individual product
3.10V7G
Maintain Matl.
Plant Extension
3.11
V7H
Maintain
Storage Loc.
Extension
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 23/36
Create Semi-finished (HALB) Material (V7B)
Create Semi-finished (HALB) Material
V7B
E n g i n e e r i n g
E v e n t Need for new
semi-finished
material
End process
3.1 – 3.9
Create semi-
finished material
3.12
V7J
Create Bill of
Materials
3.13
V7N
Create
Routing
3.14
V7Z
Create Pur.
Info Record
3.15
V8D
Create Sales
Price
Condition
3.16
V8G
Create Product
Group
3.10
V7G
Maintain Matl.
Plant Extension
3.11
V7H
Maintain
Storage Loc.
Extension
3.17
V8Q
Create Product
Cost Planning for
an Individual
Product
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 24/36
Create Trading Good (HAWA) Material (V7C)
Create Trading Good (HAWA) Material
V7C
E n g i n e e r i n g
E v e n t
Need for new
trading material
End process
3.1 – 3.9
Create trading
material
3.12
V7J
Create Bill
ofMaterials
3.13
V7Z
Create
Pur. InfoRecord
3.15
V8P
Create
EngineeringChange No.
3.16
V8Q
Create Product Cost
Planning for anIndividual Product
3.14
V8D
Create
Sales PriceCondition
3.10
V7GMaintain Matl.
Plant Extension
3.11
V7H
Maintain
Storage Loc.Extension
3.17
V8G
Create
ProductGroup
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 25/36
Create Finished (FERT) Material Make to Stock(V7D)
Create Finished Good (FERT) Material – Make to Stock (MTS)
V7D
E n g i n e e r i n g
E v e n t
Need for new
finished MTS
material
End process
3.1 - 3.9
Create finished MTS
material
3.12
V7J
Create Billl of
Materials
3.13
V7N
Create
Routing
3.15
V8G
Create
Product
Group
3.14
V8D
Create Sales
Price
Condition
3.10
V7G
Main\tain Matl.
Plant Extension
3.11
V7H
Maintain
Storage Loc.
Extension
3.16
V8Q
Create Product Cost
Planning for an
Individual Product
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 26/36
Create Configurable Material(V7E)
Create Finished Good (FERT) Configurable Material
V7E
E n g i n e e r i n g
E v e n t Need for new
configurable
material
End process
3.2 –
3.10Create configurable
material
3.15
V7J
Create Bill of
Materials
3.16
V7N
Create Routing
3.12
V7G
Maintain Matl.
Plant Extension
3.14
V7F
Create Finished
Goods (Fert)
Mat. Variant
3.13
V7W
Create
Configuration
Profile
3.1
V7XCreate
Variant
Classification
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 27/36
Create Finished Good (FERT) / Configurable Material Variant (V7F)
Create Finished Good (FERT) Configurable Material Variant
V7F
E n g i n e e r i n g
E v e n t Need for new
configurable
material variant
End process
3.2 – 3.10
Create
configurablematerial variant
3.14
V8D
Create Sales
Price Condition
3.13
V7K
Create BOM
Config. Link
3.11
V7G
Maintain Matl.Plant Extension
3.12
V7H
Maintain Storage
Loc. Extension
3.15
V8G
Create Product
Group
3.1
V7E
Create
Finished
Goods (Fert)Configurable
Material
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 28/36
Create Finished Goods (FERT) Material for Project System (V7I)
Finished Material – Project Systems
V7I
E n g i n e e r i n g
E v e n t Need for new
finished material
for proj. sys.
End process
3.1 – 3.9
Create finished
material for project
systems
3.10
V7VMaintain Network
Parameters for
Sales Order
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 29/36
Engineering Change Number Resource (V8P)
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 30/36
Create Product Version (V7O)
Create production version
V7O
P r o d u c t i o n P l a n n e r
E v e n t
A new production version is required for a
repetitive manufactured material for a plant
4.1
Create production
version
V7J
Create Bill of
Material
V7N
Create
Routing
4.2
V8H
Create Product
cost collector
End process
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 31/36
Maintain Material Plant Extension (V7G)
Material Plant Extension
V7G
E n g i n e e r i n g
E v e n t
Need to extend
material to other
plants
End process
3.17
V7J
Create Bill of
Materials
3.18
V7N
Create
Routing
3.21
V8G
Create
ProductGroup
3.20
V8D
Create Sales
PriceCondition
3.7 – 3.15
Material plant
extension
3.1 – 3.6V7A - V7B -V7C -
V7D -V7E- V7F
Material Creation
3.19
V7Z
Create Pur.
Info Record
3.16
V7H
Maintain
Storage Loc.
Extension
3.22
V8P
Engineering
ChangeNumber
3.23
V8Q
Product CostPlanning
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 32/36
Material Storage Location Extension (V7H)
Material Storage Location Extension
V7H
E n g i n e e r i n g
E v e n t Need to extend
material to stor.locations
End process
3.7
Storage locationextension
3.1 –
3.5V7A - V7B
V8C – V7E
V7FMaterial Creation
3.6
V7GMaintain Matl. Plant
Extension
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 33/36
Create New Bill of Material (V7J)
Bill of Materials
V7J
E n g i n e e r i n g
E v e n t
Need for a new Bill of
Materials
4.1 – 4.3
V7A – V7B - V7C
Raw, Semi, Trade
Material
End process
4.6
Create Bill of
Materials
4.4 – 4.5
V7D – V7E
Finished Material
4.7
V7O
Create Production
Version
4.8
V7N
Create Routing
4.9
V7K
Maintain BOM
Config. Matl. Link
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 34/36
Bill of Materials Configurable Material Link (V7K)
Bill of Materials –
Configurable Link
V7K
E n g i n e e r i n g
E v e n t Need to link
variant to BOM
End process
3.3
Create
configurable
variant BOM link
3.2
V7J
Create Bill of Materials
3.1
V7F
Create Finish Goods
(FERT) Matl. For
Project Systems
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 35/36
8/13/2019 Best Practices - Procure to Pay
http://slidepdf.com/reader/full/best-practices-procure-to-pay 36/36
Recommended