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Project Name 10-110 le SAP Revision No 1.0
Business Proc 10-01 Purchase Order Module MM
Contents
Contents
Contents............................................................................................................................................................................................................... 2
About Document .............................................................................................................................................................................................. 3
Document Control ..................................................................................................................................................................................... 3
Document Approval .................................................................................................................................................................................. 3
Document Approval .................................................................................................................................................................................. 3
Copyright ................................................................................................................................................................ ....................................... 4
Icons Used ..................................................................................................................................................................................................... 5
1. Introduction ........................................................................................................................................................ .................................... 8
1.1 Purpose .......................................................................................................................................................................................... 8
1.2 Definitions ................................................................................................................................................. .................................... 9
1.3 Pre-Requisites ................................................................................................................................................................ ............. 9
1.4 Master Data ................................ ................................................................................................................................................ 10
1.5 Business Conditions .................................................................................................................................................... ........... 10
1.6
User Roles ...... .................................................................................................................................................................. ........... 111.7 Process Group Overview ...................................................................................................................................................... 12
1.8 Process Flow ...................................................... ........................................................................................................................ 13
1.9
Process Steps - Summary ..................................................................................... ................................................................ 13
1.10 Process Steps In Detail ............................................................................................................................................ ........... 14
2 Supplementary Processes .................................................................................................................................................... ........... 24
2.1 Record Retention .......................................................................................................Error! Bookmark not defined.
3 Document References ....................................................................................................................................................................... 25
3.1 Record Retention ............................................. ........................................................................................................................ 25
3.2 References................................................................................................................................................................................... 25
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Project Name 10-110 le SAP Revision No 1.0
Business Proc 10-01 Purchase Order Module MM
AboutDocument
About Document
Document ControlCustomer Number 1001
Customer Name CapFrance BAT
Project Number 10-110
Project Name le SAP
Document Type Business Process Document
Module MM - Materials Management
Document No 10-01
Document Name Purchase Order
Issue Date 11-Jun-11
Revision 1.0
Document ApprovalDocument Project Role Name Date
Prepared by Application Consultant 11-Jun-11
Reviewed by Project ManagerClick here to
enter a date.
Approved by Project Manager Click here toenter a date.
Customer Project ManagerClick here to
enter a date.
Document Approval
Version Changed by Effective Date Reasons for Change Sections/Pages Revised
Click here to
enter a date.Click here to
enter a date.Click here to
enter a date.
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AboutDocument
Copyright 2010-2011 SAP AG and Inntree All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express
permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other
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These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated
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Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
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and services, if any. Nothing herein should be construed as constituting an additional warranty
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Business Proc 10-01 Purchase Order Module MM
AboutDocument
Icons Used
Use the following symbols selectively where you need highlight a particular portion of the
document and to draw the attention of the user
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process Alternative/Decision Choice
Manual Entry
SAP Form generated. Choose Print option
SAP Report generated. Choose Print option
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Customer 1001 CapFrance BAT Effective Date 11-Jun-11
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Business Proc 10-01 Purchase Order Module MM
AboutDocument
Example for use of Icons
Please ensure you have been assigned a user name (Check with SystemAdministrator)
Ensure that the role specific to you has been assigned in your User Profile
(Check with System Administrator)
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Business Proc 10-01 Purchase Order Module MM
Introduction
1. Introduction
1.1 PurposeThis scenario describes the typical processes used in the construction industry to generate
and process purchase orders (POs). These POs are used to procure materials and
subcontracted services with or without material master records.
One type of PO that is typically used in this industry is the standard PO. This type of PO is
primarily used to purchase various planned and unplanned materials that require a goods
receipt. Another type of PO used is a Blanket PO, which is used primarily to purchase
services and materials for a predetermined value limit. A Blanket PO does not require a
goods receipt. An example of this would be the procurement of fuel, electricity, or any other
material or subcontracted service in which the contractor chooses not to use goods receipt.
When an invoice arrives from the supplier, it can then be paid without the extra step of a
goods receipt.
The two primary types of materials and services used in the construction industry are:
Materials and services with a master record
Materials and services without a master record
The materials and services with a master record are requirements that are commonly used
for many different projects and are used frequently. For the materials and services that are
used frequently, material master records can be created in the system one time and then
they can be reused for an unlimited number of times. This approach can save a significant
amount of time in the long run. The materials and services that are rarely used do not
require a material master record and therefore a PO can be generated on the spot.
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Business Proc 10-01 Purchase Order Module MM
Introduction
1.2 Definitions
PR Purchase Requisition
RFQRequest for Quotation
PO Purchase Order
1.3 Pre-Requisites
The following pre-requisites must be completed prior to initiating this process
Activity Description
Delivery date
You can either enter the desired delivery date or leave the field
empty. If the field is empty, the system determines the delivery date
from the current date plus the planned delivery time for the
Account Assignment
For each item to be posted to a consumption account, you need the
account assignment category and the account assignment data (for
example, the number of the cost center to be charged).
Material Number
If a material master record exists for the material, you need the
number of the material to be ordered.
If no material master record is defined for the material, you need: a
short description of the material, the account assignment, and the
material group.
PlantYou need the key of the plant for which the material or service is to
be ordered.
Storage LocationName of thestorage location at which materials are stored. There
can be one or more storage locations within aplant.
PriceYou can either enter the net price yourself or have the system
calculate it (by entering pricing conditions).
VendorThe vendor must have a vendor master record. You enter the
number of the vendor master record when you create a PO.
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Business Proc 10-01 Purchase Order Module MM
Introduction
1.4 Master Data
Essential master and organizational data was created in your SAP system in the
implementation phase, such as the data that reflects the organizational structure of your
company and master data that suits its operational focus, for example, master data for
materials, vendors, and customers.
The business process is enabled with this organization-specific master data, examples which
are provided below
Org. Structure Value Comment
Company Code 1000 Company Code 1000
Plant 1000 Plant Code 1000
Storage Location 1000 Storage Location 1000
Purchasing Organization 1000 Purchasing Organization 1000
1.5 Business ConditionsList one or more business conditions that must have been completed before the user starts this
scenario:
Business Condition Scenario
You have completed all steps described in the Business Process
Documentation Prerequisite Process Steps. These process steps include
the step Roll MM Period to Current Period. Perform this activity if the MM
period in the system is not set to the current period. Usually, this
activity has to be done once a month.
Prerequisite
Process Steps
Create Purchase Order with reference to Purchase requisition
Create Purchase Order with reference to Quotations
Create Purchase Order with reference to Outline Purchase Agreements
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Project Name 10-110 le SAP Revision No 1.0
Business Proc 10-01 Purchase Order Module MM
Introduction
1.6 User RolesThe following roles have been defined for this Process [Purchase Order].
These roles have been designed to fulfill the particular business requirements of the
process.
Please ensure you have been assigned a user name (Check with System
Administrator)
Ensure that the role specific to you has been assigned in your User Profile
(Check with System Administrator)
Business Role Technical Name Process Step
Purchaser SAP_NBPR_PURCHASER-S
Convert Requisition to PO
Change PO for Equipment
Down Payment monitoring for PO
Create PO for Materials w/o Material master record
Create Blanket PO
Evaluating vendors
Compare vendor evaluation
Print vendor evaluation sheet
Purchasing
Manager
SAP_NBPR_PURCHASER-
M Release & approve PO
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Business Proc 10-01 Purchase Order Module MM
Introduction
1.8 Process FlowThe following diagram depicts the overall process flow for [Purchase Order]. The particular
process within the scope of this document is highlighted.
1.9 Process Steps - SummaryThe following section describes the process flow diagram in detail
UseOnce you are ready to create the PO after having reviewed the pre-
requisites and business conditions
Step Process Step Performed by Description
Need for Material or
Service identified
1
Evaluate approved
Purchase Requisition or
Quotation or Outline
Agreement initiate
creation of PO
Purchaser
Purchase orders can be created
with respect to Purchase
Requisition, or Quotation or
Outline Agreement
2 Review Draft PO creation Purchaser
3 Print Draft PO (if required) Purchaser
4Submit PO for Approval
and notify
Submittal of PO for approval will
be thru workflow
5 Approve POPurchasing Manager and others as
determined by Release Strategy
6 Reject PO Purchasing Manager and others asdetermined by Release Strategy Notify via email or verbally forrejection
7 Print Final PO Purchaser
8 Issue to Vendor PurchaserPO can be transmitted as a
hardcopy or as PDF
9 Follow up
Result Approved PO created, issued to vendor and follow-up maintained
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Business Proc 10-01 Purchase Order Module MM
Introduction
1.10Process Steps In DetailThe following section describes the process flow diagram in detail
You can create the purchase orders with the following
1.10.1 Initiate
SAP Menu Path Logistics Materials Management Purchasing Purchase order
Create
SAP T-code ME21N
Business Role
(NWBC)
Screen View
1.10.2 Process
Step Process Step Description
Enter data when
initiating a PO with no
reference to a
document
Enter the through Menu path
or enter the Transaction code
in the command box. The
following screen appears
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Project Name 10-110 le SAP Revision No 1.0
Business Proc 10-01 Purchase Order Module MM
Introduction
Enter the following field values in the required fields as mentioned below
And choose enterField name Description User action and values
Vendor Vendor Code
Purchasing
OrganizationPurchasing Organization code
Purchase Group Purchase Group code
Company Code Company Code
Account AssignmentCategory
Specifies whether accounting for an item
is to be effected via an auxiliary account
(such as a cost center).
The account assignment categorydetermines which account assignment
data (such as cost center, account
number and so on) is necessary for the
item.
A Asset
B MTS prod./sales ord.
C Sales order
D Indiv.cust./project
E Ind. cust. w. KD-CO
F Order
G MTS prod./projectK Cost center
M Ind. cust. w/o KD-CO
N Network
P Project
Q Proj. make-to-order
T All new aux.acc.ass.
U Unknown
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Business Proc 10-01 Purchase Order Module MM
Introduction
Item Category
Key defining how the procurement of a
material or service item is controlled.
The item category determines the field
selection and whether any additional
data screens are shown.
In addition, it determines whether agoods receipt or invoice receipt is to
follow.
The following list contains the item
categories defined in the standard SAP
R/3 System:
Standard
Consignment
Subcontracting
Third-party
Stock transfer
Service
Material unknown
Material group
Text
Standard
B Limit
K Consignment
L Subcontracting
S Third-party
T Text
U Stock transfer
D Service
C Stock prov.by cust.
P Return.trans.pack.
Material
PO Quantity
Delivery Date
Net Price
Material Group
Plant
Storage Location
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Business Proc 10-01 Purchase Order Module MM
Introduction
While creating the Purchase order, enter the required data as shown above.
Double click on FRB1 to see the item conditions and to enter freight
Select the P.O.Document type
Select the
vendor
Enter
material code
Enter
Quantity
Enter
delivery
date
Enter
Net
Price
Select
Plant
Enter
Material
Enter
Storage
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Business Proc 10-01 Purchase Order Module MM
Introduction
Enter the freight price and also vendor
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Business Proc 10-01 Purchase Order Module MM
Introduction
Field Name Description User action and Values
Retention Invoice value that needs to be retained Select H indicator
DP Category Down Payment amount Select M indicator
Due DateIndicates the due date of the down
payment
Select date from drop down
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Business Proc 10-01 Purchase Order Module MM
Introduction
Field name Description User action and values
Purchasing
OrganizationPurchasing Organization code Select from drop down
Purchase Group Purchase Group code Select from drop down
Company Code Company Code Select from drop down
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Introduction
Field name Description User action and values
Text -Header text Maintain Delivery terms Maintain Delivery terms
Text -Delivery Maintain Delivery Address Maintain Delivery Address
Text -Terms of
PaymentMaintain Payment terms Maintain Payment terms
Text -Penalty Maintain Penalty for breach of contract Maintain Penalty for breach ofcontract
Text -Warranty Maintain Warranty Maintain Warranty
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Introduction
Field name Description User action and values
Check Check Purchase Order Select Ctrl+Shift+F3
Save Save Purchase OrderCtrl + S
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Introduction
1.10.3 Review & Complete
Step Process Step Description
Enter data when initiating
a PO with no reference toa document
Review the PO created, ifrequired update the PO
Screen Shot if Applicable
Field name Description User action and values
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SupplementaryProcesses
2 Supplementary Processes
2.1 List of Supplementary Processes
Process Name Description
Change PO
Display PO
Cancel PO
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DocumentReferences
3 Document References
3.1 Record Retention
Outputs Retention Period/Remarks
Purchase Order 5 Years
3.2 References
Type of Document Reference
Company Policy
ISO 9000 Clause
Quality Manual
Quality Procedure
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D t References
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