SAP
Supplier
Management
EIN 5346, Logistics Engineering
Spring 2010
Purchase
Order
Process Integration
Convert Production
Proposal
Purchase
Requisition
Schedule
and Release
Run MPS
w/MRP
Check
Availability
Sales Order
Entry
Sales Order
Process
Receipt of
Payment
Invoice
Customer
Pick
Materials
Production
Process
Invoice
Receipt
Goods
Issue
Completion
Quality Confirmation
Inspection
Goods
Receipt
Order
Settlement
Post Goods
Issue
Procurement
Process
Goods
Receipt
Payment
to Vendor
Integration
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Purchase
Order
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase Requisition
Internal Document instructing the
purchasing department to request a
specific good or service for a specified
time
Requisitions can be created two ways:
◦ Directly - Manually
person creating determines: what, how much,
and when
◦ Indirectly - Automatically
MRP, Production Orders, Maintenance Orders,
Sales Orders
Integration
Procurement Process
(Purchase Requisition)
Vendor Creation
Purchase Order
A purchase order is a formal request
to a vendor for a variety of
purposes:
◦ Standard Stock or Consumption
◦ Services
◦ Subcontracting
◦ Consignment
Integration
Procurement Process
(Purchase Order)
Goods Receipt
◦ Determine if we received what we ordered
◦ System take data from the PO:
material, quantity, and so on
Effects of Goods Receipt
◦
◦
◦
◦
◦
◦
Material Document is Created
Stock Quantities are Updated
Stock Values are Updated
Purchase Order History is updated
Updates Inventory G/L Account
Output can be generated (GR slip / pallet label)
Material Movements
Goods movement is represented by a movement
type
◦ In SAP, three-digit keys for movement type
101 – goods receipt into warehouse
103 – goods receipt into GR blocked stock
122 – return delivery to vendor
Destinations for Receipt of Goods
◦ Warehouse –
Unrestricted,
Quality,
Blocked
Integration
Procurement Process
(Goods Receipt)
Integration
Procurement Process
(Check PO History)
Integration
Procurement Process
(Check Document for Goods Receipt)
Invoice Processing
Verify received materials quantity, quality, prices,
and arithmetic.
If discrepancies arise SAP system will generate a
warning or an error
◦ Depending on system configuration the
difference could cause the system to Block the
Invoice
Invoice Processing
Upon verification the:
◦ Purchase Order updated
◦ Material Master updated
◦ Accounting Document created
Once the Invoice has been posted the
verification process is completed and
the payment process is initiated within
Financial Accounting
Integration
Procurement Process
(Invoice Processing)
Integration
Procurement Process
(Invoice Processing)
Integration
Procurement Process
(Purchase Order History changed)
Integration
Procurement Process
(Display Invoice Document View)
Payment to Vendor
Can be done automatically or manually
Enter data:
Company code
Currency
Document date
Bank account
Amount to be Paid
Vendor code
Process will create a financial accounting document
to record the transaction
Integration
Procurement Process
(Procure-to-Pay)
Integration
Procurement Process
(Procure-to-Pay)
(FI – MM- MIS) Integration
Procurement Materials, Financial, and Information Flow
No.
Procesures
Inventory
(materials)
Financial Accounts
Inventory
Dr
GR/IR
Cr.
Dr
Information
AP
Cr.
Dr
Bank
Cr.
Dr
Cr.
1
Purchase Requisition
PR #
2
Purc hase Order
PO #
3
Goods Receipt
4
Invice verification
5
Outgoing Payment
(+)
$100
$100
GR #
$100
$100
$100
INV#
$100
PAY#