SAP University Alliances
Version
2.2
Authors Simha R. Magal
Stefan Weidner
Tom Wilder
Phase II: Procurement
Product
SAP ERP 6.0 EhP4
Global Bike Inc.
Level
Beginner
Focus
Configuration: The Procurement
Process
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Configuration Agenda
 Enterprise structure
 Business rules and parameters
 Master data
 Process execution (testing)
 Exercises
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Configuration Enterprise structure
 Enterprise structure elements
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Client
Company code (CC)
Plant
Storage location (SLoc)
Purchasing organization (POrg)
Purchasing group
Valuation areas
 Define / Maintain
 Assign
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Configuration Plant
 Many definitions or uses. A location
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That holds valuated stock (for distribution)
Where production planning is carried out
Where products and services are created
That contains service or maintenance facilities
 Where work is performed
- Office, store, factory, warehouse, distribution center
 Can be assigned to one CC only
 A CC can have many plants
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Configuration Storage Location
 A place, within a plant, where materials are stored
- Areas designated for different types of material (raw material, work-inprocess, finished goods)
- Does not have to be physical, can be logical
- More sophisticated divisions including storage bins, cabinets, trays is
part of warehouse management
 A plant must have at least one storage location
 A storage location is assigned to a single plant
- Storage locations in different plants can have the same name
• Finished Goods FG00 in MI00, FG00 in DL00
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Configuration Storage Locations
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Configuration Purchasing Organization
 Identify and select vendors
 Negotiate general conditions of purchase and contracts for one or
more plants or companies.
 Determine pricing conditions
 Typically three models for Purchasing Organization
- Enterprise-Level (assigned to plant)
- Company-Level (assigned to plant and one company code) <- GBI
model
- Plant-Level (assigned to plant and its company code)
- Hybrid
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Configuration Purchasing Organization
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Configuration Purchasing Group
 A buyer or group of buyers responsible for certain materials or
groups of materials
 Can be internal to the company or external
- Decide to purchase land, but use a realtor (external purchasing group)
to execute the purchase
 Not assigned to or related to purchasing org
 GBI Purchasing Groups:
- North America (N00)
- Europe (E00)
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Configuration Agenda
  Enterprise structure
 Business rules and parameters
 Master data
 Process execution (testing)
 Exercises
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Configuration Business Rules and Parameters
 Automatic Account Determination
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Material accounts
GR/IR account
Price difference account
Posting keys for invoice verification
 Tax related parameters
- Tax version (how many tax rates and amounts)
- Tax accounts (G/L account for posting)
- Default values for tax codes (when entering invoices)
 Attributes for material types
- Views to be maintained
- Type of inventory management
• quantity basis
• value basis
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Configuration Business Rules and Parameters
 Tolerance limits
- Purchase order
• Purchase price (PO price vs. material price)
• Discounts (cash discount in PO)
- Goods receipt
• Quantity (warning and error)
• MAP change
- Invoice receipt
• Quantity tolerances
• Value tolerances
- Vendor payment
 Plant parameters
- Goods movement
- Material reservations
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Configuration Agenda
  Enterprise structure
  Business rules and parameters
 Master data
 Process execution (testing)
 Exercises
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Configuration Master Data
 Material Master
 Vendor Master
 Purchasing info record
 Conditions
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Configuration Material Master
 Data needed to execute transactions related to materials
 Data are grouped by different user / functional areas (views)
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Basic data
Purchasing
Accounting
Forecasting
Sales
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Plant / Storage
Work Scheduling
MRP
Classification
Warehouse Management
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Configuration Material Master
 Master date are defined for specific organizational levels
 Can have different data for different combinations of Org data
- Purchasing: Plant, storage location
- Sales: Sales Area (Sales Org, Distribution Channel)
- Warehouse: Warehouse #, storage type
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Configuration Material Master
 Example:
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SHRT1000 + MI00+ TG00
SHRT1000 + SD00+ TG00
SHRT1000 + US00 + Wholesale channel
SHRT1000 + US00 + Internet channel
Demo
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Review material master
Review procurement related tabs
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Configuration Vendor Master Data
 Data needed to do business with vendors
 Data needed to execute transactions related to vendors
 Data are specific to (defined for) different organizational levels.
The three segments are:
- Client level data (General)
- Company code level data (Accounting)
- Purchasing organization level data (Purchasing)
Demo
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Review vendor master data
Review data in three segments
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Configuration Purchasing Info Records
 Relates vendors and materials.
 One info record per combination of vendor and material (or
material group)
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General data
Conditions: pricing, discounts, free goods (current and future)
Vendor data
Texts (notes)
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Configuration Purchasing Info Records
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Configuration Conditions
 Pricing Conditions
- Gross price
- Discounts and surcharges
- Freight / shipping
 Pricing data in a purchase order is obtained from
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Condition records
Purchasing info records
Contracts and agreements
Other sources
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Configuration Agenda
  Enterprise structure
  Business rules and parameters
  Master data
 Process execution (testing)
 Exercises
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Configuration Process execution
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Configuration Agenda
  Enterprise structure
  Master data
  Business Rules and Parameters
  Process execution
 Exercises
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Configuration Exercises
 2.1 - Enterprise structure
- Configure the enterprise structure
 2.2 - Business Rules and Parameters
- Define business rules
 2.3 - Master data
- Material, vendor (copy from 00 where possible)
 2.4 - Testing
- Execute simple procurement process
 Appendices
- Exercises provide detailed instructions for one or few objects (e.g,
once cost center, once vendor, etc.)
- Appendices provide data from additional objects (cost centers, etc.)
- Don’t forget them!!!!
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Configuration Agenda
  Enterprise structure
  Master data
  Business Rules and Parameters
  Process execution
  Exercises
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