Control Copy No: TRF/P2P/1.2.4/01

Transcription

1 !"##!$ %TRF/P2P/1.2.4&''()'' End User Training Manual for SAP MM Material Management Process Name: Creating Purchase Order Process No: TRF/P2P/1.2.4 Control Copy No: TRF/P2P/1.2.4/01 *+*% Doc Version Description Prepared by Date Reviewed by Approved by 00 Draft Srinivas.T 25/12/2009

2 Enterprise Procurement to pay process in TRF has the following business processes. Sl. No. TRF Enterprise Process No. Process Name 1 TRF/P2P/1.1 PR processing 2 TRF/P2P/1.2.1 Procurement planning 3 TRF/P2P/1.2.2 RFQ & Comparison 4 TRF/P2P/1.2.3 Purchase Contract 5 TRF/P2P/1.2.4 Create PO 6 TRF/P2P/1.3 GRN 7 TRF/P2P/1.4 Storage Management 8 TRF/P2P/1.4.1 Inventory verification 9 TRF/P2P/1.5 Invoice Verification 10 TRF/P2P/1.6 Vendor Evaluation For each of the above processes, there are separate End User Training Manuals are available This document covers sl. No.5 of the above list, that is Create PO This End User Training manual on Create PO consists of the Following sequence of sub-processes as listed in the Table of contents (next page) Page 2 of 43

3 Procurement in Materials Management -Overview Purchase Order Processing -Overview... 6 This below information is only for readable purpose... 6 Purchase Order... 6 Overview & definition... 6 Purchase Order Processing in TRF Purchase Order release / Approval in TRF Creation Of purchase Order in SAP - Individual Purchase order ME21n Changing the Purchase order-me22n Displaying the purchase Document-ME23N PRINTING APPROVED PO-ME9F Display Message before Printing Page 3 of 43

4 Purpose External procurement in the MM System centres on a general cycle of activities. Process Flow The typical procurement cycle for a service or material consists of the following phases: 1. Determination of Requirements Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system. 2. Source Determination The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired. 3. Vendor Selection and Comparison of Quotations The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically. 4. Purchase Order Processing The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported. 5. Purchase Order Follow-Up The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders. Page 4 of 43

5 6. Goods Receiving and Inventory Management Goods receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods. 7. Invoice Verification The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment. Page 5 of 43

6 Purchasing Order Processing Direct Entry or Purchase requisition Purchase Order Standard Statistics Order history Purchase requisition Stock material Consumable material Service Account assignment (cost center, asset, internal order) Purpose The purchase order can be used for a variety of procurement purposes. You can procure materials for direct consumption or for stock. You can also procure services. Furthermore, the special procurement types "subcontracting", "third-party" (involving triangular business deals and direct-to-customer shipments) and "consignment" are possible. You can use purchase orders to cover your requirements using external sources (i.e. a vendor supplies a material or performs a service). You can also use a purchase order to procure a material that is needed in one of your plants from an internal source, i.e. from another plant. Such transactions involve longer-distance stock transfers. The activities Page 6 of 43

7 following on from purchase orders (such as the receipt of goods and invoices) are logged, enabling you to monitor the procurement process. You can use purchase orders for once-only procurement transactions. If, for example, you wish to procure a material from a vendor only once, you create a purchase order. If you are thinking of entering into a longer-term supply relationship with this vendor, it is advisable to set up a so-called outline agreement, since this usually results in more favourable conditions of purchase. In the interests of optimized purchasing, the PO quantity can be rounded in the course of PO processing to allow full advantage to be taken of negotiated conditions or for the optimal utilization of existing transport capacities. Because not all materials or services to be procured justify the effort involved in individual monitoring, you can also create a purchase order with an extended, predefined validity period and a value limit. (You may wish to do this when procuring office supplies, for example.) This type of purchase order is similar in nature to the "contract". In this case, you need not specify the individual materials or expend any effort with respect to goods receiving activities. You can also reduce the amount of work involved in invoice verification to a minimum by employing automatic processes. Definition A purchase order is a formal request or instruction from a purchasing organization to a vendor or a plant to supply or provide a certain quantity of goods or services at or by a certain point in time. Structure A purchase order (PO) consists of a document header and a number of items. The information shown in the header relates to the entire PO. For example, the terms of payment and the delivery terms are defined in the header. A procurement type is defined for each of the document items. The following procurement types exist: Standard Subcontracting Consignment Stock transfer External service Delivery of the total quantity of material (or performance of the total volume of services) specified in a purchase order item can be spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates. Page 7 of 43

8 For PO items to be supplied by subcontractors, you can specify the necessary input materials or components that are to be provided to the subcontractor for assembly or processing in respect of each delivery date stipulated. An item of the procurement type "external service" contains a set of service specifications. The latter can be hierarchically structured. The summary view of such a hierarchical structure is referred to as an outline. The outline comprises a number of levels, each representing a level of the service hierarchy. The order quantities are set out in service lines, representing individual jobs or activities. Value limits are specified instead of service lines for services or work that initially cannot be specified precisely. If services covered by an already existing contract are released (ordered, or called off against the contract), the PO item can contain a value limit relating to the contract in question. Conditions Conditions can apply at various levels: To the entire purchase order At item level, to the material to be supplied or to the set of service specifications in the case of services At service line level for individual services (tasks or activities) Account Assignment Costs can be apportioned among various Controlling objects via the account assignment. Vendor Confirmations Vendors can issue confirmations to the relevant purchasing organization indicating their compliance or non-compliance with scheduled delivery dates. PO History The transactions following on from a purchase order are documented in the PO history on an item-specific basis. Partner Roles Instead of the vendor as the order recipient, other business partners can appear in various partner roles (e.g. goods supplier or invoicing party). Plant In the purchase order, each item is destined for a certain plant. Each plant belongs to a company code, to which the vendor s (creditor s) invoice is directed. Page 8 of 43

9 Texts You can enter text in a purchase order directly or change texts that are suggested by the system. There are two kinds of text: Header text: applies to the entire document Item text: applies only to the relevant item You define which texts appear in which order on printouts in Customizing for Purchasing. You can enter several header or item texts, which you can identify by your own codes. Processing Purchase Orders Purchase requisition Reference document Contract Vendor One-time vendor Purchase order Page 9 of 43

10 !" Purchase order shall be created using selected RFQ S, system copies all the things mentioned in the quotation, which includes price, Tax code, Terms and conditions etc. Purchase order can otherwise be created directly by referencing a purchase requisition in case of repeat orders etc. If any drawing / document needs to be attached with RFQ/PO line item,then it needs to be converted to sap document through document mgmt system and then attached to PO line item In case of projects getting on hold / delivery destinations being changed from Jamshedpur to Kolkata(say) or from Jamshedpur to project or vice versa, purchase order needs to be amended as per amended PRs in terms of plant of destination, taxes if applicable etc. and same shall be communicated to the vendor by taking printout of the amendment. #$!" As per TRF policy all purchase orders will be approved by single/multiple authorities. Release procedure in SAP system shall be defined as per TRF approval policy. Release strategy is used to set up approval procedures for purchase requisitions or purchase order.under such a procedure, if a purchase order fulfils certain conditions it has to be approved before it can be processed further. This process of approving (clearing or giving the go ahead ) a proposed item of expenditure is replicated in the SAP system by the release procedure. This will be guided by the validation mentioned in system based on approval matrix. Each person involved in the release procedure effects release (signifies approval) via. a release transaction, using his release code. Once effected, a release can also be cancelled with the same code (that is to stay, the original status is reinstated). Existing system of P.O and amendment approvals shall be re-looked on the basis of value limits and type of purchase etc. Finalization of these needs to be done before realization phase Tcode-ME29N-Individual Release Me28-Collective release Page 10 of 43

11 % &$' ( ) Mandatory Fields while creating Purchase Order S.N0 Field name/activity EG: User action and values 1 Vendor Purchase 1000-TRF Central organization Purchase Organization 3 Purchasing 1000-BMHE group 4 Company Code 1000-TRF limited 5 Material PO Quantity 10 7 Delivery Date Net price 95, Account assignment Q-Project make to- Order Category 10 Item category Standard Plant 1000-BMHE 12 Material Group 2001-Plant & machines 13 Conditions- 95, PB00-Gross Price 14 Tax Code V0 15 Inco terms EXW-Danbhad 16 Payment terms 0001-payment immediately due net Page 11 of 43

12 2. Transaction Menu Path 2.1. Required User Input Access the transaction ME21N - Vendor / Supplying Plant Known 2.2. SAP Screen Snap 2.3. Description Logistics --> Materials Management --> Purchasing Purchase Order --> Create --> Vendor/Supplying Plant Known Alternatively, you can use transaction code ME21N directly from the command field. Page 12 of 43

13 3. Document Type 3.1. Required User Input Select Po document type from drop down list 3.2. SAP Screen Snap 3.3. Description Select the appropriate document type for Creation of required PO. For TRF a separate document type for each purchasing function has been defined specifically for different SBU S. You can select the PO type respective to your department (with description ending with SBU of TRF) Page 13 of 43

14 4. Org. Data 4.1. Required User Input Vendor Number Enter Purchasing Organization Enter Purchasing Group 4.2. SAP Screen Snap 4.3. Description Maintain Org. Data in PO document header which is a mandatory requirement. Page 14 of 43

15 5. Document Currency 5.1. Required User Input Maintain Document Currency 5.2. SAP Screen Snap 5.3. Description The document currency is defaulted by the Vendor Master data. However, you can change the currency in the Document header tab 'Delivery/Invoice'. System picks up the exchange rate which is defined in the system. The currency is applicable to all items in PO. Page 15 of 43

16 Caution: Enter / Change the currency before entering the items in PO 6. Maintain Items 6.1. Required User Input Maintain items to be procured 6.2. SAP Screen Snap 6.3. Description Enter the Item codes for materials to be procured. However, in case of non stock items, you can define the short text description only as no material master record exists for non stock items. Also, in case of Non stock items, you will have to specify the account assignment category. For details please see the related documentation. Page 16 of 43

17 7. Inco terms (header delivery/invoice tab 7.1. Required User Input Maintain Inco terms 7.2. SAP Screen Snap 7.3. Description Inco terms are used to specify the type of shipments. There is a complete list of standard Inco terms available in SAP. You can select the desired one from the drop down list. Page 17 of 43

18 8 Maintain Delivery Cost Provisions 8.1. Required User Input Maintain Delivery cost Provisions for all cost components 8.2 SAP Screen Snap 8.3. Description Planned delivery cost provisions, as an estimated percentage of C&F value are maintained in Purchase Order so that the estimated landed cost can be evaluated. Further, at the time of Goods Receipt (if actual cost from Invoice) could not be captured (due to late arrival of invoice of certain delivery expenses) the provisional cost could be loaded in the material landed cost. The cost variance is adjusted later as a period expense or debit/credit to material. Planned Delivery cost can be maintained for each item at Item Level as well as at Header level. Separate delivery cost components are mapped as PO conditions, which can be updated as required. Page 18 of 43

19 9. Check Document 9.1 Required User Input Click on 'Check'button SAP Screen Snap 9.3. Description To ensure the correctness of document, check it before saving. Page 19 of 43

20 10. Review system messages Required User Input Review System messages and take appropriate action SAP Screen Snap Description System Messages are generated as the document is checked, read the messages carefully for all warning / information. However, you can still continue posting your document as warning messages do not halt the document posting. Page 20 of 43

21 11. Save Document Required User Input Click 'Save'button, next screen appears as SAP Screen Snap Description Save document to record your entries. 12. Confirm Save Required User Input Click 'Save'to Continue Or Edit / Cancel if required Page 21 of 43

22 Confirmation is asked by the system if the document is saved inspite of the warning messages generated by the system during document check. 13. Document Saved & no. generated Required User Input Note document number SAP Screen Snap Page 22 of 43

23 Creation of purchase order with respect to RFQ-ME21N Page 23 of 43

24 To search for your reference document i.e. RFQ in this case, you can take help of the Document Overview Window. Click on Document Overview On button to open it. Selection Variant - Purchase Requisition Required User Input Choose RFQ from selection variant list You can take help of the selection variant to specify that what type of document you are searching for. There are a number of options available in Selection Variant list. Click on Selection variant button to Display the list Page 24 of 43

25 RFQ Search Screen Required User Input Call Document category drop down list. Page 25 of 43

26 This will take you to a search screen from where you can easily search your RFQ by providing some key parameters. In this case you will use the Document category field A. and Click execute Button. Page 26 of 43

27 Search Result - List of RFQ Required User Input Select document Click on Adopt button Click on Adopt button -by selecting required RFQ document. The search will result by providing the list of all valid RFQ that satisfy the search criteria. Select the document and click on adopt button to copy the contents of PR into PO screen. Page 27 of 43

28 As you adopt your RFQ, it will copy all the contents into PO. Now you can close the document overview window by clicking on Document Overview Off switch. Enter all the data required as explained above for individual purchase order. Check the completeness of your document and verification of data provided in fields by using the standard Check button in the application toolbar. Save the document. Page 28 of 43

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30 % )* Click the icon other purchase order and press enter, next screen appears as Page 30 of 43

31 Enter the purchase order number to be changed and press enter. Next screen appears as Page 31 of 43

32 Change the required fields as per TRF SBU and save the document. Page 32 of 43

33 %+ + ),* Here we can only view the information Click other purchase order icon and press enter. Next screen displays as Page 33 of 43

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35 !'*'*-$!.)+)/" A Purchase Order can only be Printed / Output Transmitted if it is approved. Make sure that your purchase order is approved only then you can print it, otherwise system would not select the document for Print Transmission. Page 35 of 43

36 Next screen appears as Enter the document number of the PO to be printed. Execute button In the Message Output selection screen you should enter the Document Number which is to be printed. By default, the system automatically suggests the last Purchasing document that has been posted by you. Another option is to execute the transaction without specifying the document number, in this case all pending PO print list will be displayed to you. Page 36 of 43

37 Next screen appears as Select document by clicking on check box Select the document which you wish to print. In case of multiple documents, multiple selections can be made and printed simultaneously. Page 37 of 43

38 + Click on 'Display Message'button You can display the Print preview before giving the print command. Page 38 of 43

39 Enter Print parameters Enter Output device: LP01 Select: Print Immediately Select: Print Preview Maintain print parameters so that a print command can be given directly from the Display Message screen. These parameters should be set by default in your profile; however, you can maintain them here as well Page 39 of 43

40 Click on 'Print Icon'to Print/Transmit PO Print icon Back button From the print preview screen, after reviewing the document you can give the print command by clicking on the Printer Icon. Page 40 of 43

41 Next Click 'Back'button to go to main screen You can exit from the screen without giving the print command. This may be required if you want make some more changes in your Purchase Order before Printing it. This ends the Processing of Purchase order- TRF-SURE-EU TRG Manual (TRF/P2P/1.2.4) 007 Rev. 00 Page 41 of 43

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