Understanding Procurement Organizations and Master Data in SAP: A Comprehensive Guide, Slides of Fundamentals of E-Commerce

Download Understanding Procurement Organizations and Master Data in SAP: A Comprehensive Guide and more Slides Fundamentals of E-Commerce in PDF only on Docsity! 1 THE PROCUREMENT PROCESS PART 1 Standard Procurement Process Docsity.com 2 Concepts covered Organizational levels relevant to procurement Master data relevant to procurement Procurement process foundational concepts Procurement process in depth Organizational Levels Relevant to Procurement Client Company Code Plant Storage Location Purchasing Organization Identifies, selects vendors. Negotiates conditions and contracts. Sets pricing conditions. Strategic purchase planning. Purchasing Group Purchasing execution Docsity.com 5 Master Data Relevant to Procurement Material Master Vendor Master Purchasing Info Record Conditions Master Data Relevant to Procurement—Material Master Material Master: segmented into 12 views. Views relevant for purchasing (highlighted): i lMater a Master Basic Data MRP Data Storage Data Warehouse Management Data Work Scheduling Data Quality Management Data Plant Data Financial Accounting Data Purchasing Data Sales Data Forecasting Data Classification Data Docsity.com 6 Master Data Relevant to Procurement—Material Master Basic Data view Material name/description Unit of measure Weight Material Group Groupings of similar materials to facilitate searching and analysis tasks. Plant Data/Storage view Data needed to store material properly: Environmental requirements (temperature, humidity) Dimensions, volume, etc. Special containers needed Shelf life Special handling instructions Master Data Relevant to Procurement—Material Master Purchasing Data view Purchasing group assignment Goods receipt processing time Delivery tolerances: how much over or under delivery is acceptable. MRP view MRP procedure (type, controller, etc.) Lot size P t (i h t l)rocuremen n ouse, ex erna Scheduling Requirements calculation Forecasting and planning information Docsity.com 7 Master Data Relevant to Procurement—Material Master (Financial) Accounting view Valuation currency: currency item valued in Valuation class: Integration between purchasing and FI. General ledger account associated with material (where inventory value is reflected). Multiple items share same valuation class (Finished Goods, Raw Materials, etc.). Depends on company needs. Price control: how material will be valued. 2 choices: moving average or standard price. Moving average: Changed after each transaction affecting price. Standard Price: Set for a period of time. Adjusted at end of period. Master Data Relevant to Procurement Material Master Vendor Master Purchasing Info Record Conditions Docsity.com 10 Vendor Master Data terminology Partner Function: detailed information needed to conduct transaction tasks with a particular partner company. Addresses (ordering address, shipping address, payment remittance, etc.), contacts (people, contact info, role, etc.) Term partner function is used for both customers and vendors. Incoterms: terms of sale that govern when title passes in transaction. Ex-Works (EXW) Seller makes goods available. Does not load or transport. Buyer bears all costs and risk of delivery. Free Carrier (FCA) Seller delivers to a designated carrier at a named location. Free Alongside Ship (FAS) seller delivers to a designated sea port. Title passes upon arrival at the origin port. Vendor Master Data terminology Incoterms, continued Free On Board (FOB) Seller places item on transport vehicle. Title passes at designated location. Cost and Freight (CFR) Seller pays cost and freight to bring goods to named location. Buyer bears risk once items are shipped. Cost, Insurance, and Freight (CIF) Like CFR, but seller bears risk and must provide insurance. Docsity.com 11 Master Data Relevant to Procurement Material Master Vendor Master Purchasing Info Record Conditions Purchasing Info Record Intersection of vendor data (purchasing org data) and material data (plant data). One info record for each combination of vendor and material purchased from that vendor. General data, purchasing data, conditions, vendor data, text/notes Material Master Vendor Master Purchasing Info Record Docsity.com 12 Master Data Relevant to Procurement Material Master Vendor Master Purchasing Info Record Conditions Conditions Rules used for price determination. Automatically used when purchase orders created. Contract Conditions: applied to orders where a pricing contract is referenced. Purchasing Info Record Conditions: applied to orders based on data in purchasing info record (material master and vendor master intersection). Extended Conditions: applied only if specified criteria met (i.e. volume discounts, etc.) Output Conditions: (not pricing related) specifies policies for document exchange between buyer and sell. What documents, to whom, when, how. Docsity.com 15 Account assignment object Stock Type/Stock Status Stock Status: Determines the state of a material in our possession: Unrestricted Use Quality Inspection Blocked Stock (damaged, unusable, wrong delivery) Stock in Transit Details shown in Plant Stock view on material master. Ch i th t k t l f t i l l iblang ng e s oc ype or va ue o a ma er a on y poss e through goods movement. Docsity.com 16 Four types of goods movements Goods Receipt—Inbound from external vendor or production. Stock is increased. Goods Issue—Outbound Material withdrawn consumed . , , or shipped to customer. Stock is decreased. Stock Transfer—Lateral movement between storage areas. Internal to organization. (Can cross company codes.) Transfer Posting—changes stock type (raw material to trading goods) or status even if goods did not physically , move. A transfer posting is the only type of goods movement that can change a stock status and/or material type. Material Documents Allow tracking of all goods activities. ItemsHeader • Document number • Created by • Date • Reference • Transaction Code • Quantity • Material • Location (plant/sloc) • Movement type • Process dependent data Docsity.com 17 Concepts covered Organizational levels relevant to procurement Master data relevant to procurement Procurement process foundational concepts Procurement process in depth (next slide deck) Purchasing Process Key Point Overview Docsity.com