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SIMPRE – SAP MM

Procurement Processes�Master Data

Nicolae Calota, Deloitte ERDC Bucharest�November, 2018

Procurement Processes & Master Data

Deloitte ERDC Bucharest

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Overview of SAP as an ERP

Definition

Commercial software packages that promise the seamless integration of all information flowing through the company – financial, accounting, human resources, supply chain and customer satisfaction (T.J. Davenport, 1988).
ERP systems provide information management and analysis to organizations

Benefits

Online/real time information throughout all the functional areas of an organization
Data standardization and accuracy across the enterprise
“best-practices” included in the applications
The efficiency they force an organization to undertake
The analysis and reporting that can be used for long term planning

Enterprise Resource Planning and its benefits

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Overview of SAP as an ERP

SAP
Stands for “Systems, Applications and Products in Data Processing”
Is a company founded in 1972 by five former IBM engineers
SAP’s architecture is based on “3-tier” client-server technology (presentation server, application server and database server)
ABAP
Stands for “Advanced Business Application Programming” language
Is the proprietary programming language in which the SAP product is programmed and customization done

SAP as an ERP

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Overview of SAP as an ERP

SAP as an ERP

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Overview of SAP as an ERP

SAP as an ERP

SAP has categorized basic business processes in a basic organization.
The “building blocks” of processes are called “modules”

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Overview of SAP as an ERP

Evolution of SAP products

Cross industry solutions and industry solutions

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Preface

At the end of this course, you will have a clear understanding of the following principles:

SAP Standard Procurement Processes

Documents used in SAP Standard Procurement Processes

Master Data used in SAP Standard Procurement Processes

Course Objectives

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Agenda

Topic	Content	Person responsible	Timing
Procurement Processes	Defining Procurement Processes Organizational levels	Nicolae Calota	18:00 – 19:20
Maintaining Purchase Orders	Purchase Order Details Purchase Order Maintenance	Nicolae Calota	18:00 – 19:20
Posting Goods Receipt	Goods Receipt in Procurement Goods Receipt Details	Nicolae Calota	18:00 – 19:20
Entering Invoices	Invoice Receipt Invoice Entry	Nicolae Calota	18:00 – 19:20
Break
Maintaining Vendor Master Records	Master Data in Procurement Processes Vendor Master Data	Nicolae Calota	19:30 – 20:50
Maintaining Material Master Records	Material Master Record Material Master Record Creation Purchasing Info Record	Nicolae Calota	19:30 – 20:50

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Procurement Processes

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Procurement Processes

In SAP MM we have the below processes, as part of SAP Standard System Setup:

External Procurement Process

Stock Transfer with Stock Transport Orders

Subcontracting

Vendor Consignment

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Defining Procurement Processes

External Procurement Process

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Defining Procurement Processes

Stock Transfer with Stock Transport Orders

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Defining Procurement Processes

Subcontracting

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Defining Procurement Processes

Vendor Consignment

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Organizational Levels

Client

It is an organizational unit within logistics that subdivides an enterprise from the viewpoints of production, procurement, plant maintenance, and materials planning
The enterprise structure is created by assigning organizational units to each other.
It is defined in the system by a four-character alphanumeric key that is unique to it in the client

Plant

It is an organizational unit that facilitates the differentiation of stocks of materials within a plant
Inventory management on a quantity basis is carried out in the plant at the storage location level
It is defined by a unique 4 character alphanumeric key

Storage Location

A unit within an SAP System that is self-contained both in legal and organizational terms
It s the highest hierarchical level in the SAP System and is uniquely defined by a 3 digit numeric key
For example, the client could represent a Corporate Group

Company Code

A company code represents an independent unit that produces its own financial statements
It tracks the entry of all events that require posting to the accounts, and creates a complete audit trail for balance sheets and profit and loss statements
It is defined in the system by means of a 4 character alphanumeric key that is unique in the client

The purchasing group is a key organizational unit for a buyer, or group of buyers, responsible for certain purchasing activities
A purchasing organization is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements.

Purchasing Organization and

Purchasing Group

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Company Code: You can set up several company codes for the same client to keep separate sets of accounts

Plant:

- Usually used to segregate inventory into geographic or logical locations

- A client may contain several company codes, and a company code may contain several plants. However, a plant can only belong to one company code.

Example of Possible entities within the firm for plants:

- Production facility

- Central issuing storage location

- Regional sales office

- Corporate headquarters

- Maintenance location

Storage Location

- Several storage locations may be assigned to a plant, but a specific storage location can only belong to one plant.

St.Loc are define specifically for a Plant and are assigned accordingly
The key of a St.Loc is unique within a Plant

Purchasing Group

The purchasing group is internally responsible for the procurement of a material or class of materials. Externally, the purchasing group supplies the contact person for vendors.

Purchasing Organization

A purchasing organization procures materials or services, negotiates terms and conditions of purchase with vendors, and assumes responsibility for the transactions.
Assign a purchasing organization to a company code and plants. This allows you to take into account whether purchasing is centralized or decentralized in your company; a combination of these two organizational forms is possible.

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Organizational Levels

Example of Organizational Structure

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Organizational Levels

Purchasing Organization categories

Plant-specific purchasing organization

Cross-plant purchasing organization

Cross-company code purchasing organization

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Organizational Levels

Plant-Specific Purchasing Organization

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Organizational Levels

Cross-Plant Purchasing Organization

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Organizational Levels

Cross-Company-Code Purchasing Organization

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Maintaining Purchase Orders

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Maintaining Purchase Orders

Purchase Order Details

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Maintaining Purchase Orders

Purchase Order Details

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Maintaining Purchase Orders

Purchase Order Details

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Maintaining Purchase Orders

Purchase Order Maintenance

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Maintaining Purchase Orders

Purchase Order Maintenance

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Maintaining Purchase Orders

Purchase Order Maintenance

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Posting Goods Receipt

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Posting Goods Receipt

Goods Receipt in Procurement

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Posting Goods Receipt

Usual checks performed at the time of delivery:

Was the right material delivered?
Was the right quantity delivered?
Are the perishable goods (if any) within their minimum shelf life? (shelf-life expiration-date check must be activated)

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Posting Goods Receipt

Goods Receipt Details

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Posting Goods Receipt

Goods Receipt Details

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Entering Invoices

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Entering Invoices

Invoice Receipt

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Entering Invoices

Invoice Receipt

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Entering Invoices

Invoice Receipt

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Entering Invoices

Invoice Entry

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Master Data

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Maintaining Vendor Master Records

Master Data in Procurement Processes

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Maintaining Vendor Master Records

Master Data in Procurement Processes

It provides the option of storing vendor and material information as the master data at purchasing organization and plant level
You can define: current and future prices, delivery data, vendor data, texts
It has the highest priority in information determination for procurement process

Purchasing Info Record

It includes information about the vendors of a company which is stored in individual vendor master records
The are 3 categories of vendor master data (General Data, Company Code Data, Purchasing Org Data)

Vendor Master Record

It represents the company’s central source of material-specific data which is used in all areas of logistics
Data stored in the material master is required for: Purchasing, Inventory management, Accounting, Materials Planning (MRP – Material Requirements Planning)

Material Master Record

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Maintaining Vendor Master Records

Categories of Vendor Master Data

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Maintaining Vendor Master Records

Vendor Master Data

Purchasing organization data is maintained for each purchasing organization
Purchasing organization data includes the purchase order currency, Incoterms, partner roles, purchasing data, and various controls pertaining to the vendor

Purchasing Org Data

General data includes the vendor’s address, control data, bank details, communication, and contact persons. Is valid for a single client
Valid for a single client

General Data

Company code data is maintained at the company code level
Company code data includes the number of the reconciliation account, correspondence, withholding tax, and the payment methods for automatic payment transactions.

Company Code Data

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Maintaining Vendor Master Records

Vendor Master Data at Organizational Levels

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Maintaining Vendor Master Records

Vendor Master Data – Account Group

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Maintaining Vendor Master Records

Vendor Master Data – Reconciliation Account

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Maintaining Vendor Master Records

Vendor Master Data – Partner Roles

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Maintaining Material Master Records

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Maintaining Material Master Records

Material Master Record

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Maintaining Material Master Records

Material Master Record - Maintenance

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Maintaining Material Master Records

Material Master Record – Organizational Levels

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Maintaining Material Master Records

Material Master Record Creation

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Maintaining Material Master Records

Material Master Record Creation – Material type

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Maintaining Material Master Records

Material Master Record Creation – Industry Sector

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Maintaining Material Master Records

Material Master Record Extension&Copy

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Appendix

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Q&A

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Contact me

Submit your CVs in English @ ncalota@deloittece.com

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Thank You!

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Kahoot.it

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