BRITE Procurement Fundamentals
Course Description
During this course, you will learn how the implementation of
the BRITE Procurement process will change, and how it will
improve the way business is conducted in SBBC. You will
also be introduced to some basic SAP Procurement
structures and vocabulary.
Budget
Professional
Development
Payroll
Finance
Operations
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Human
Resources
Course Objectives
After completing this course, you will be able to:

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


Explain the “To-Be” (future SBBC SAP) business
processes
Describe the SBBC SAP organizational structure
Describe the use of Master Data in SAP
Explain the use and structure of various purchasing
documents in SAP
Describe functions that are executed after the
procurement process is complete
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Key Purchasing Terms
Purchasing
Organization
An organizational unit within purchasing
responsible for the procurement of
goods and services (will always be
SBBC)
Plant
Location where goods are received
Purchasing
Group
A letter code used to identify a specific
person (buyer) responsible for the
purchase of goods and services
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Terms Glossary
SBBC Term
SAP Term
Approval Process
Release Strategy
(A set of business rules used to evaluate a requisition
line item to determine the type of approvals needed
before it can be released to Procurement)
Approval Status (RAI)
Release Status
(The list of approvals a requisition has received and
any still required)
Budgetkeeper or Bookkeeper
(The person who ordered goods/materials)
Requisitioner (New Role)
(The person who creates a requisition)
Line of Coding
Account Assignment
(When creating an SAP requisition, account
assignment means charging the goods and/or services
to a specific cost center and G/L account)
Warehouse, Stockroom and grouping of
Schools/Departments
Plant
(Anywhere stock is managed or valued material is
kept)
Warehouse W Number; Textbook Item
Number; Stockroom Stock Number
Material Number
(A unique identifier for an item number)
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Key Improvements: Need to Receipt
For those who already do purchasing, this is an overview of the changes coming.
Current State
Future State
Current State
Future State
Items maintained in multiple
systems



Vendor creation is done by
A/P and Purchasing
department; vendor
grouping is manually
assigned

Separate transactions are
used for internal and
external requisitions
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One central location/database for all
materials used
Material data is entered by Data Strategy
Group only
Material data is consistent with no duplication
Centralized vendor creation with identifiable
vendor types
Usage of partner functions to link vendors
with same parent company
Consistent data with no duplication
Internal and external requisitions will use the
same system and same transaction
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Key Improvements: Need to Receipt
For those who already do purchasing, this is an overview of the changes coming.
Current State
Future State
Current State
Future State
Select items requires system
receipt


Attached lists were widely
used for purchases

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Materials, with very few exceptions, will
require system receipt in both schools and
departments
Goods receipt required for invoice payment
Electronic attached lists allowed for
purchases of 25 non asset line items or more
in one requisition
Purchases of 24 line items or less will require
itemization
Provides better data collection of purchasing
history
Allows for electronic record of attached
materials list
No goods receipt, signed invoice for payment
processing
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Key Improvements: Need to Receipt
For those who already do purchasing, this is an overview of the changes coming.
Current State
Current
State
Future
State
Future
State
Catalog Content Manager
currently doesn’t exist



Primary approvals are
automatically routed,
secondary approvals are
handled manually

Overnight creation of paper
PO with multiple copies

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Catalog Content Manager allows “point and
click” selection of materials to be purchased
Facilitates selection of materials on contract
Automatically populates requisitions once
material is selected
System automatically routes request to
appropriate approver
Secondary approvals, if required, are also
automatically routed
On-demand creation of PO
PO immediately available once created
Able to e-mail or e-fax PO
Electronic record of PO
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Organizational Structure
Unit Objectives
After completing this unit, you will be able to:


Describe the SBBC Organizational Structure
Explain the usage of Purchasing Groups in SAP
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Organizational Structure
The company
code and
Purchasing
Organization will
always be SBBC.
All buyers have a
Purchasing Group
Letter.
There are seven
plants within the
organization.
Each Plant has various
storage locations some of
which may/may not contain
inventory – e.g. Plant 1000
(schools/departments) do not
have inventory in SAP
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Purchasing Group
 The SAP term for Buyer Code is Purchasing Group.
Commodities will be assigned to Purchasing Groups
within the SBBC purchasing organization
 Each Buyer in SBBC has a Purchasing Group letter,
which allows them to manage their Requisitions and
Purchase Orders more effectively
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Purchasing Master Data
Unit Objectives
After completing this Unit, you should be able to:



Define key terminology related to SAP Master Data
Explain the concept of Master Data in SAP
Describe the purpose of a Material Master Record
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Material Master Records
 The following information is essential to understanding
the tasks discussed in this unit:
– Material Master Records contain information about a
material that rarely changes (such as description, unit
of measure, etc.)
– Material Master Records can be incorporated as
default data in transactional documents such as RFQs
(Request for Quote) and Purchase Orders
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Material Master Records
A Material Master Record:
 Is the central repository for all details about a material
number (description, dimensions, purchasing group, etc.)
 Eliminates the need for redundant data entry
 Reduces the likelihood of duplicate material numbers
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Material Master Records (cont’d)
 There are six types of Material Master Records:
– Stock materials: Items stocked at the central warehouse
or the textbook warehouse
– Food: Commodity materials managed at the external
food warehouse
– Spare Parts: Spares used by Physical Plant Operations
and Transportation
– Non-Valuated Materials: Items stored in B-stock and
student assessments
– Non-Stock Items: Materials whose quantity will not be
inventoried and will support purchasing functions
– Services: Services ordered by schools and departments
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Material Master Record Data Flow
Material
Master
Record
Purchase
Requisitions
Contracts
Requests for
Quotation
Purchase
Orders
Invoices
The Material Master Record can be used as input for any of the
Purchasing Documents shown above.
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Purchasing
Documents
Unit Objectives
After completing this unit, you will be able to:
Describe the procurement process flow
 Describe the structure and use of a Purchase Requisition
 Describe the Catalog Content Management (CCM)
process
 Name the three types of Purchase Requisitions
 Describe the Requisition approval process
 Describe the structure and use of:
– Requests for Quotations
– Quotations
– Purchase Orders
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Procurement Process Flow
Data Strategy
Group Creates
Purchasing
Master Data
Buyer Maintains
Quotations (if
necessary)
Requisitioner
Creates
Purchase
Requisition
Site
Administrator
Approval
Buyer Creates
RFQ (if necessary)
Buyer Creates
Purchase Order
Recipient
Performs Goods
Receipt
Accounts
Payable Pays
Invoice
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Requisitions
All Requisitions have three (3) 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 one particular line item. There is an item details
section for each item on the Requisition
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Purchase Requisition
Header
Item
Overview
Item Details
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Types of Purchase Requisitions
There are three types of Purchase Requisitions:
 Standard Requisition
– Used for external procurements
– Can be entered line by line or via Catalog Content Management
(CCM)
– Can be entered with or without reference to Material Master Record
 Framework Requisition
– Used for External procurements
– Will be created using an attached list for orders with 25 or more
lines items
– Cannot be used for assets
 Stock Transport Requisition
– Are used for internal procurements (from the warehouse)
– Will always be entered via Catalog Content Management (CCM)
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Account Assignment Categories
Each line item on a requisition must have an account
assignment category. SBBC will use the following
categories:
–
–
–
–
–
Inventory
Asset
Cost Center
Project
Grant
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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
 Allows end-users to create a Requisition in SAP directly
from an on-line shopping cart
 Reduces data input errors and redundancy
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CCM Requisitions
Catalog
Icon
Click the
“Catalog”
icon to
access the
on-line
catalog.
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Catalog Content Management
CCM allows “point and click” selection of materials to be purchased
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Requisition Approvals
 Two levels of approvals are required during normal operations
depending on the materials procured.
– 1st Level: Principal/Department Manager/Supervisor approval.
– 2nd Level: Only certain material groups need second level
approval. These material groups will be automatically routed to
2nd level approvers in areas such as Curriculum, Technology,
Textbooks, and Food Service. (Food Service items approval will only be for
Stock Transport Requisitions involving small equipment obtained from the Central
Warehouse).
 During a budget freeze an additional level of approval will be
required on all purchases, both internal and external with the
exception of Food Services and Grant-related, non-asset items. This
approval will be done by the district Executive Leadership Team.
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Request for Quotations (RFQs) and Quotations
RFQs and Quotations:
 Are initiated by purchasing (rather than schools and
departments) after a requisition is approved
 Facilitate easy on-line quote comparison and vendor
selection
 Can be used to create purchase orders and contracts
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Purchase Orders
Purchase Orders:
 Are created directly from requisitions or quotations in SAP
 Can be created manually by a buyer or automatically by
SAP (when a contract exists)
 Are transmitted to vendors via e-mail or e-fax. Hard copy
PO’s are sent only when a vendor has no e-mail or fax
capability
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Purchase Orders
Just like the Purchase Requisition, All Purchase
Orders have three (3) sections:
 Header – Contains information applicable to the entire
Purchase Order
 Item Overview – Shows an overview of all the line items
on the Purchase Order
 Item details – Shows detailed procurement information
about each line item.
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Unit Objectives
You should now be able to:
 Describe the procurement process flow
 Describe the structure and use of a Purchase Requisition
 Describe the Catalog Content Management (CCM)
process
 Name the three types of Purchase Requisitions
 Describe the Requisition approval process
 Describe the structure and use of:
– Requests for Quotations
– Quotations
– Purchase Orders
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Goods Receipt and Invoices
Unit Objectives
After completing the unit, you will be able to:
•
•
•
•
•
Define key terminology
Determine Requisition status
Describe the Goods Receipt process
Explain the Three-Way and Two-Way match processes
Describe the structure and use of invoice documents in
SAP
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Key Terms
Three Way Match
Match between the Purchase Order, amount
received and the amount on the invoice
Goods Receipt
A document created in SAP when goods have been
received
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Goods Receipt
The Goods Receipt process:
 Is executed when material is received against a purchase
order
 Results in the creation of a material document that
acknowledges the receipt of goods and allows the invoice
to be paid
 Updates stock balances and purchase order history
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Material Document – Goods Receipt Overview
The Material
Document shows
details about all
the line items
included in the
Goods Receipt.
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Goods Return
The Goods Return process is executed:
 When material is to be returned to the vendor after a
goods receipt has been executed in SAP
 Allows material returns to be tracked
 Automatically adjust inventory balances
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Three-Way Match
 A Three-way Match means that the Purchase
Order, the Invoice, and the Goods Receipt all
match, both in terms of quantity and price
 The three-way match principle applies to all PO’s
except Framework PO’s
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Two-Way Match
 A two-way match means that the Purchase Order
and the Invoice must match, both in terms of
quantity and price
 The two-way match principle applies to all
framework PO’s
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Unit Objectives
You should now be able to:
•
•
•
•
•
Define key terminology
Determine requisition status
Describe the Goods Receipt process
Explain the Three-Way and Two-Way match processes
Describe the structure and use of invoice documents in
SAP
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Summary
Course Objectives
You should now be able to:





Explain To-Be business processes
Describe the SBBC SAP organizational structure
Describe the use of Material Master Data in SAP
Explain the structure and use of various purchasing
documents in SAP
Describe functions that are executed after the
procurement process is complete
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