Purchase Order in Sap the Process Manual

8/11/2019 Purchase Order in Sap the Process Manual

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Customer 1001 CapFrance BAT Effective Date 11-Jun-11

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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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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implemented by Netscape.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects Explorer, and other

SAP products and services mentioned herein as well as their respective logos are trademarks or registered

trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence,

Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are

trademarks or registered trademarks of SAP France in the United States and in other countries.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in

this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated

companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP

Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products

and services, if any. Nothing herein should be construed as constituting an additional warranty


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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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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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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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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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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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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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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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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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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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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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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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Introduction

Enter the freight price and also vendor


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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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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


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


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



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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

Purchase Order in Sap the Process Manual

Documents

Transcript of Purchase Order in Sap the Process Manual