The Procurement Process and SAP

V4.6D

Step 1: Creating a Vendor Master Record

Create a vendor master in the system using the following information. We will not be filling in all screens but this exercise will take you through each screen so that you can review the data fields that are supported.

MENU PATH

Logistics>Materials management> Purchasing> Master data> Vendor> Central> Create

Create Vendor Initial ScreenEnter

Select the enter icon to continue

Select the enter icon to continue

Select Enter Icon to continue.

Create Vendor: Control

Select Enter Icon to continue

Create Vendor: Payment Transactions

Select Enter Icon to continue

Create Vendor: Accounting Information

Select Enter Icon to continue

Create Vendor: Payment Transactions

Select enter icon to continue

Create Vendor: Correspondence Accounting

Select Enter Icon to continue

Create Vendor: Purchasing data

Select enter icon to continue

Create Vendor: Partner functions

Select enter icon to continue

The system displays the message "Last screen reached.."

Save the vendor by selecting the YES button.

STEP 2 BUSINESS PROCESS FOR PROCUREMENT

The following is the unit scenario:

Motor Sports International's (MSI) basic procurement process for stock materials includes creating a purchase order, receiving the material, processing the vendor's invoice, and paying the vendor. All of MSI' S plants use this basic business process to procure stock material for issue in the production of motorcycles.

An MSI buyer creates a purchase order for a stock material. After the material has been received from the vendor, MSI always verifies the quantity received against the quantity on the purchase order. Once MSI receives the invoice from the vendor, MSI's accounts payable coordinator records the invoice, checks it against the purchase order and goods receipt, and prepares payment to the vendor.

The payment is then generated to the vendor according to the payment terms.

Create a purchase order. Record the system generated document number for the transaction.

MENU PATH

Logistics>Material management>Purchasing>Purchase order>Create>Vendor/ supplying plant known

Create Purchase Order Organizational Data Tab

Select the enter icon to continue to the next screen

You may get warnings about procurement and VAT numbers

Select the enter icon to continue to the next screen

Select the save icon to complete this transaction.

Write down the purchase order number you will need it below.

Receipt of Ordered Goods

The goods are now at the dock and ready to be received in inventory. Post the goods receipt against the purchase order.

MENU PATH

Logistics>Materials management>Inventory management>Goods movement>Goods receipt>For purchase order>PO number known

Goods Receipt for Purchase order:

Qty Tab

Select the Execute icon to continue

Qty Tab

Select the SAVE Icon to complete this transaction

Record the goods issue document number below:

_________________________________

View the stock level and check the recorded the results below.

MENU PATH

Logistics>Materials management>Inventory management>Material document>Display

Enter the following data:

Select enter icon to continue

Select Accounting docs button

Double click on the accounting document number

Complete the table below:

Accounting department receives vendor invoice

The accounting department receives the invoice from the vendor. Enter the invoice into the system.

MENU PATH

Logistics>Materials management>Invoice verification>Invoice verification>Enter Invoice

Enter the following data

Enter Invoice Initial Screen

Select enter icon to continue

Enter Invoice: Vendor Items

Select enter icon to continue to the next screen

Select the Simulate button to continue to the next screen

There may be a warning about the bill arriving before the expected arrival date. [We hurried up this process]

NOTE the debits and credits should be equal

Select the save icon to complete this transaction. Record the document number in the space provided below.

___________________________

Display the purchase order history to review the accounting document generated in the previous exercise. Which accounts are updated?

PAYING THE BILL FROM THE VENDOR

MENU PATH

Accounting> Financial accounting> Accounts payable> Document entry> Outgoing payment> Post

Select Process Open items button

The next screen works the same as Accounts Receivable processing. If the difference is zero you can save to complete the transaction

Select the Save Icon

Create a purchase order list display for your purchasing group by creating a variant

MENU PATH

Logistics>Materials management>Purchasing>Purchase order>List displays>By vendor

Purchasing Documents for Vendor

Note you can change the selection parameters field to report on open invoices, open goods receipt, goods receipt exists, etc.

Select the execute icon

RESULTS

The system displays the purchase order list.

What is the number of P-103 delivered? _____________________________

Standard Reporting

Review the inventory transaction history for the material listed below.

MENU PATH

Logistics>Materials management>Inventory management>Environment>List displays>Mat. doc. for material

Select the Execute icon

RESULTS

The system displays all inventory transactions for the material.