Course – Enterprise Information Systems
T02M02 – The procurement
process -Execution
Product and Focus
SAP S/4 Hana
MOTIVATION
To explore basic
Target Audience
Undergraduate/Graduate
Beginner to Intermediate
capabilities for procurement of SAP S/4
Hana.
Authors
Adriana Trujillo
Assistant teaching – tutor (202120)
PREREQUISITES
None
Revision
María Camila Terán
Assistant teaching – tutor (202210)
María José Ruíz
Assistant teaching – tutor (202220)
Oscar Avila
Associate professor
For this workshop we will use SAP S/4 Hana, which is an integrated ERP system that
runs on an in-memory database called SAP Hana. The workshop relates to the
execution of the GBI purchaseprocess to buy material to the provider Olympic
Protective Gear (101000).
The activities of the purchase process that will be executed include:
1. Purchase requisition
2. Purchase order
3. Good receipt
4. Vendor’s invoice verification
5. Payment to vendor
Course – Enterprise Information Systems
Access to SAP S/4 Hana
To access to SAP S/4 Hana, navigate to the next url
https://vichy.cob.csuchico.edu:8031/sap/bc/gui/sap/its/webgui/?
Complete the fields with the following information:
System: VIC
Client: 125
User: LEARN-XXX (You can find your username on the Excel file
on BloqueNeon)
Password: global7 (This is the password for the first time you enter to the system)
Language: English
Once you enter for the first time, the system will ask you to change your password. Use a
password easy to remember.
Question 0
What is your new password? In this way we prevent you from forgetting it
Before starting the execution of the purchase process, please read the assignment
section at the end of this document in order to understand the deliverables of the
workshop.
Create purchase requisition
A purchase requisition is a document to request to the procurement area the purchasing of
certain necessary materialsor services. To create this document, execute the following
steps:
1. Select Logistics
Course – Enterprise Information Systems
l
2. In the logistics menu expand the Materials Management menu.
3. Expand de Purchasing menu, and then expand the Purchase Requisition folder.
4. Select the Create transaction.
The system displays the form to create a purchase requisition. To begin creating a purchase requisition
click on the Item Overview and then on the first cell of the Material column.
5.In the Material field, enter the material number, if known, or click on the Search icon
next to the cell to search for a material number.
Course – Enterprise Information Systems
6. The system displays a search form to specify search criteria. Use the wildcard
character (*)when searching. In this lab we will search for shirts by entering SHRT* in
the Material field to find all materials numbers beginning the letter SHRT. Enter this
search criteria and click Enter.
7. Select the material the reference SHRT1000 and click on Enter.
8. The system copies the selected material number into the Material field in the
purchase requisition. Next, specify the plant where the products are to be
delivered and enter the initial plant code of Miami.
9. Specify the date in which the materials are to be delivered. Select the actual date as
delivery date.
10. Specify the quantity needed. Click on the Quantity field and type in the desired quantity
thatfor this case is 500.
11. Click on the Save icon to create the purchase requisition.
12. After the document is created, the system displays a notification along with the
purchase requisition number. It is suggested to record this number for future
reference.
Course – Enterprise Information Systems
Question 1
Does making a requisition mean that materials will be purchased? Justify your answer
Question 2
Which areas of the company use the purchase requisition?
Order Processing
A purchase order is a communication sent to a vendor in which a company commits to
purchasing the specified materials under the stated terms. We will convert a previously
created purchase requisition into a purchase order. To do so, first, expand the Logistics
menu.
1. Expand the Materials Management Menu
2. Expand the Purchasing menu, and then expand the Purchase Order menu.
3. Expand the Create menu and select Vendor Supplying Plant Known transaction.
4. The system displays the screen to create Purchase Orders. The first time this
transaction is accessed, the document overview is turned off, that is, it is not visible.
Turn the document overview on by clicking on the Document Overview On button.
5. The system displays the Document Overview area on the left side of the screen.
This is where documents relevant to purchasing, such as purchase requisition and
purchase orders, are displayed. To view a list of relevant documents, click the
Selection Variant icon.
Course – Enterprise Information Systems
6. We will search for a specific requisition, the one created previously. To search
for a requisition, click on Purchase Requisition.
7. The system displays a screen to search for purchase requisitions by different criteria. We will
search for the purchase requisition created previously. To conduct this search, input the purchase
requisition number in the appropriate field and click Execute.
8. Now the purchase requisition is listed in the Document Overview area. This
requisition will be the source document for the purchase order. That is, data in this
requisition will be used to create the purchase order. To convert this purchase
requisition to a purchase order, click on the purchase requisition number in the
Course – Enterprise Information Systems
Document Overview window, and then click Adopt.
9. When the selected requisition is adopted, the system automatically import the
data to the Create Purchase Order screen. The system will also provide alerts
regarding any additional data that are needed. The next step is to enter the
necessarydata to complete the purchase order.
To this end, enter the purchasing organization in the Purch. Org. field, if is known.
Otherwise, search for one by clicking on the Search icon.
10. The system displays a list of available purchasing organizations. Double-click
on US00 GBIUS to select it as the purchasing organization for this order.
11. After the purchasing organization data is provided, the system displays an alert
that a vendormust be specified for this purchase order. To search for vendors, click
the Search icon next to the Vendor field. We will search for a suitable vendor.
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Course – Enterprise Information Systems
12. In the field “City” type Atlanta and click on Find.
13. Double click on an Olympic Protective Gear to select it.
14. To determine if the purchase now contains all the necessary data click Check.
15. The system will provide alerts if additional data are necessary. Continue to input
the required data until the system no longer issues alerts. Complete the Net Price
field.
16. Click Save to create and save the purchase order.
Question 3
What references to other documents does a purchase order has?
Goods receipt
Course – Enterprise Information Systems
This document records the receipt of the materials from the vendor.
1. First expand the Logistics menu, then expand Material Management and Inventory
Management menu.
2. Expand the Goods Movement menu and select GR for Purchase Order.
3. Enter the purchase order number for which the goods are being received. To search for
thepurchase order, click the Search icon next to the field.
Select the tab “Purchasing Documents per Supplier” within the search window.
4. Enter the vendor number 101000 to search purchase orders for the supplier Olympic
Protective Gear.
Course – Enterprise Information Systems
5. After finding the purchase order, click on execute.
6. Click Enter to retrieve the data from the purchase order that are needed to record the
goods receipt.
7. Enter the storage location where the materials received are placed. To search the
storage location, click the Search icon next to the SLoc field OR click on where and
search the storage location and click the Search icon
Course – Enterprise Information Systems
Course – Enterprise Information Systems
8. Select Trading Goods.
9. Click Post to record the goods receipt in the system.
Question 4
What is the goods receipt used for?
Invoice verification
It is necessary to verify that the invoice sent by the vendor is accurate before making the payment.
1. First expand de Logistics menu, then the Material Management and expand the
LogisticsInvoice Verification menu.
2. Expand the Document Entry menu and select Enter Invoice transaction.
3. Enter invoice and posting dates. For both, select the current date.
4. Next, enter the purchase order number for which the invoice was received. Search for
it by clicking on the Search icon next to the Purchase Order/Scheduling Agreement
field.
5. Begin by specifying the desired criteria. We will specify the vendor number for
Course – Enterprise Information Systems
OlympicProtective Gear 101000.
6. The system displays a list of purchase orders that matched the search criteria. Select the
onecreated previously by you and click Copy.
7. Enter 7,500 as the invoice amount and click Enter to validate the data.
8. Click Post to record the invoice and save de invoice data.
Question 5
Why is the invoice verification linked to the Purchase Order and not to the Goods
Receipt document?
Question 6
What is the meaning of the posting date within the invoice verification?
Payment Processing
In this case, the payment is accounted by introducing manually the journal entry in which
postings on two general ledgers accounts will be carried out .
1. Expand the Accounting menu, then the Financial Accounting menu and expand the Accounts
Payable menu.
2. Expand the Document Entry menu, then the Outgoing Payment menu and select Post.
Course – Enterprise Information Systems
3. Enter the required data as follows: todays’ date for Document date and Posting date,
the current month for Period (for example, if we are in October then 10), and KZ, meaning
vendor payment, for Type) and click Enter to validate the data(suggestion, start by
getting in the DocumentDate).
4. Next, select the ledger account number (100000 - Bank) from which the payment is to
becredited. To do so, click the icon next to the Account field to search for the bank
account number.
5. Note that the Chart of Accounts field is already populated with GL00, that is, the
chart ofaccounts for GBI. Click Enter to display a list of all accounts in the specified
chart of accounts.
6. Select the account 100000
7. Get in the amount of the payment in the Amount field. The payment amount is $7,500.
8. Input the account number of the vendor to whom the payment is to be made. To do so,
enter the account number (101000) directly in the Account field and the character K
(Vendors) inthe Account type field of the Open item selection section.
Course – Enterprise Information Systems
9. Click on the Process open items button to record the payment.
10. The system displays the Process open items screen, which lists all invoices from the
selected vendor that have not been fully paid. Also displays the payment amount entered,
the amount assigned to an open item, and the amount not assigned.
Course – Enterprise Information Systems
Question 7
Explain the postings made on the two accounts 100000-bank and 101000-vendor
(Olympic Protective Gear). ¿What type of impact was undertaken (debit or
credit) in each one? ¿What is the meaning of the financial impact made on the
two accounts?
10. Click Post to save and record the payment.
11. Visualize the account balance for the account number 100000 (bank), the company code
US00 (United States) and finally the current fiscal year (2022). To this end, expand the
Accounting -> FinancialAccounting -> General Ledger -> Account menu, and select the
Display Balances option. Then enter the corresponding information.
Question 8
Analyse and describe the information presented in the balance for this account.
Assignment
Execute each one of the steps of the purchase process by following the
instructions in this document. Take into consideration that for each of the
steps you need to prepare the following deliverables:
1. A screen shoot of each document (purchase requisition, purchase order,
goods receipt, invoice, and outgoing payment) with the information
introduced by you before saving the document (25%).
2. A screen shoot for each document once it has been saved with the number
Course – Enterprise Information Systems
of the document as in the following figure (25%).
3. Answers to questions 1-8 (50%).