Chapter 3 2

Chapter The Procurement Process Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Learning Objectives Describe the major organizational levels associated with the procurement process Discuss the four basic categories of master data that are utilized during the procurement process Explain the key concepts associated with the procurement process Identify the key steps in the procurement process and the data, documents, and information Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Learning Objectives (Continued) Effectively use SAP ERP to execute the key steps in the procurement process Utilize SAP ERP to extract meaningful information about the procurement process Magal and Word | Integrated Business Processes with ERP Systems | © 2011 A Basic Procurement Process Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Outline  Organizational data  Master data  Key concepts  Process  Reporting Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Organizational Data  Client  Company code (CC)  Plant  Storage location (S Loc)  Purchasing organization (P Org)  Purchasing group Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Plant  Many definitions or uses A location  That holds valuated stock (for distribution)  Where production planning is carried out  Where products and services are created  That contains service or maintenance facilities  Factory, warehouse, distribution center  Can be assigned to one CC only  A CC can have many plants Magal and Word | Integrated Business Processes with ERP Systems | © 2011 Storage Location  A place, within a plant, where materials are stored  Areas designated for different types of material (raw material, work-in-process, finished goods)  More sophisticated divisions including storage bins, cabinets, trays  A plant must have at least one storage location  A storage location can belong to only one plant Magal and Word | Integrated Business Processes with ERP Systems | © 2011 GBI Storage Locations Magal and Word | Integrated Business Processes with ERP Systems | © 2011 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  Company-Level  Plant-Level 10 Magal and Word | Integrated Business Processes with ERP Systems | © 2011 ... Business Processes with ERP Systems | © 20 11 Enterprise-Level Purchasing Organization 12 Magal and Word | Integrated Business Processes with ERP Systems | © 20 11 Company-Level Purchasing Organization... CC 13 Magal and Word | Integrated Business Processes with ERP Systems | © 20 11 Company-Level Purchasing Organization 14 Magal and Word | Integrated Business Processes with ERP Systems | © 20 11... (defined for) for different organizational levels 20 Magal and Word | Integrated Business Processes with ERP Systems | © 20 11 Material Master – Views 21  Basic data  Plant / Storage  Purchasing