ZP Procure to Pay Workshop I - Nelson Mandela...

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Product SAP ERP G.B.I. Release 6.07 Level Undergraduate Graduate Beginner Focus Materials management Authors Bret Wagner Stefan Weidner Anjali Ramburn Version 3.6

MOTIVATION The data entry requirements in the exercises are minimised because much of the data is stored in the SAP system. This stored data, known as master data, simplifies the processing of business transactions. In this workshop, we will display a master record, create a purchase order, a goods receipt, and an invoice and post a payment to a particular vendor. You will then run a purchasing report and create a dashboard.

PREREQUISITES Before you use this workshop, you should be familiar with navigation in the SAP system.

NOTES This workshop uses the ESEFA data set, which has been created exclusively for the SAP UA African curriculum.

ZP Procure to Pay Workshop I

This workshop explains an integrated procure to pay process in detail

and thus fosters a thorough understanding of each process step and

the underlying SAP functionality.

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Contents

Part I: Procure to pay (ZP) process overview ........................................................................ 3

ZP 1: Display vendor master data (Get A Brake) ................................................................... 4

ZP 2: Display a raw material master record .......................................................................... 7

ZP 3: Create a purchasing info record ................................................................................... 9

ZP 4: Create a purchase order............................................................................................. 13

ZP 5: Create a goods receipt for purchase order ................................................................ 16

ZP 6: Enter invoice receipt from vendor ............................................................................. 17

ZP 7A: Display invoice ......................................................................................................... 20

ZP 7B: Display purchase order history ................................................................................ 20

ZP 8: Post payment to vendor ............................................................................................. 21

ZP Exercise questions .......................................................................................................... 23

ZP Exercise solutions (Part I) ............................................................................................... 25

Part II: Procure to pay reporting ......................................................................................... 27

ZP 9: Using Crystal Reports ................................................................................................. 27

ZP 10: Using Dashboard Reports ......................................................................................... 30

ZP Exercise solutions (Part II) .............................................................................................. 32

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Part I: Procure to pay (ZP) process overview

Time 120 min.

Learning objective Understand and perform a procurement cycle.

Scenario In order to execute a complete procurement process you will take on different roles within the Zambikes company, e.g. a purchasing agent, a warehouse employee, an accounting specialist. Overall, you will be making use of the Materials Management (MM) and the Financial Accounting (FI) modules of SAP ERP.

Employees involved Viera Funjika (Finance manager) Wyson Nkwazi (Production supervisor) Benjamin Banda (Warehouse / factory employee) Margret Mwaanga (Admin & inventory manager)

The procure to pay process starts with the displaying of master data records. A vendor (Get A Brake) master record is displayed. Then a raw material master record is displayed (Brake Kit). From the information in the raw material and the vendor master records, the system creates a purchasing info record. You then create a purchase order. Once goods are received, a goods receipt is issued to verify the physical receipt in stock. After the creation of an invoice, the procure to pay cycle ends when payment is made.

The graphic below displays the complete process.

Process

description

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ZP 1: Display vendor master data (Get A Brake)

Time 10 min.

Task Display vendor master data using the SAP Easy Access menu.

Short Description Zambikes has numerous vendors both locally and overseas. Margret wants to view the details of one local vendor (Get A Brake).

Name (Position) Margret (Admin & inventory manager)

Vendors are established in both accounting and purchasing. In order to be active, the vendor master record requires three views – general, accounting, and purchasing. Vendors can be created centrally, meaning that all views are generated at the same time, or responsibility can be distributed to accounting and purchasing for creating and maintaining their respective views.

Vendor master

To display a new vendor, follow the SAP menu path:

Logistics ► Materials Management ► Purchasing ► Master Data ► Vendor ► Central ► Display (XK03)

This will produce the following screen.

Menu path

XK03

Use the F4 help to find the vendor number in the Vendor field.

The following screen will appear.

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Choose the Vendors by Country/Company Code tab.

Use the company code and your search term to search for a vendor.

Enter ZM00 in the Company Code field.

Enter *### in the Vendor field (Replace ### with the last 3 digits of your SAP number).

Click (Enter).

ZM00

*###

Choose Get A Brake from the list of vendors displayed. The following screen is displayed.

Record vendor number

Enter the purchasing organization as ZM00 if the field is not already populated.

Select all the displayed options below.

ZM00

Use (F7) to select all the options

displayed

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Then, click (Enter). The following screen is displayed.

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Click (Navigate) to switch between screens.

Answer questions for Exercise ZP 1.

After answering the questions, click (Exit) once to return to the initial screen.

ZP 2: Display a raw material master record

Time 15 min.

Task Use the SAP Easy Access menu to display a raw material master record.

Short Description Wyson wants to report on the current moving average price of a brake kit.

Name (Position) Wyson (Production supervisor)

To display a raw material master record, follow the SAP menu path:

Logistics ► Materials Management ► Material Master ► Material ► Display ► Display Current (MM03)


Menu path

MM03

Use the F4 help to find the material number.

Choose the Plant Material by Description tab. The screen below appears.

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Enter MU00 in the Plant field.

Enter *### in the Material field (Replace ### with your 3-digit SAP number) as per the screenshot below.

Click (Enter).

Double-click Brake Kit to choose it from the list of materials.

Click

Choose all the displayed views.

Then, click (Enter).

MU00

*###

Brake Kit

Use Shift-F8 to select all the

views

The following screen is displayed:

In the Plant field, enter MU00 (Mungwi), Stor.

In the Stor. Location field, enter RM00 (Raw Materials).

MU00

RM00

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Compare with the screen shown below.

Then, click (Enter).

On the Basic Data 1 tab, record your material number and division as per Exercise ZP2 (refer to exercises below).

Choose the Purchasing tab and note the purchasing group.

On the Accounting 1 tab, note the moving price of the material and currency used.

Material Number Division Purchasing Group Moving Price Currency



ZP 3: Create a purchasing info record

Time 20 min.

Task Use the SAP Easy Access menu to create purchasing info record.

Short Description Viera creates a new purchasing info record to record agreed conditions between a vendor (Get A Brake) and a material (brake kit)

Name (Position) Viera (Finance manager)

Purchasing info records store information about the terms for purchasing a specific material from a vendor. They are maintained for a vendor/material combination and can contain data for pricing and conditions, over-delivering and under-delivering limits, planned delivery date and availability period.

Purchasing info

record

To create a new purchasing info record, follow the SAP menu path:

Logistics ► Materials Management ► Purchasing ► Master Data ► Info Record ► Create (ME11).


Note: Some of these fields might already be populated. Enter the information below where necessary.

Menu path

ME11

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Enter your vendor number as noted from Exercise ZP1.

Enter the material number as noted in Exercise ZP2.

Enter ZM00 in the Purchasing Org. field.

Enter MU00 in the Plant field.

Choose Standard under Info category, then click (Enter).

The screen below is displayed.

127###

BRKT1###

ZM00

MU00

Standard

Enter the following data in the fields under Vendor Data.

Enter -1 in the 1st Rem./Exped field.

Enter 1 in the 2nd Rem./Exped field.

-1

1


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Enter 7 in the 3rd Rem./Exped field.

Enter BRKT1### in the Vendor Mat. No. field.

Enter RAW in the Vendor Mat. Grp field.

Enter Your Name in the Salesperson field.

Enter 03 in Return Agmt field.

Reminder 1, 2, 3 (1st, 2nd, 3rd Rem./Exped.): These three fields indicate reminders to be issued to the vendor. Negative value indicates that the vendor should be notified prior to quotation or delivery date.

Vendor Mat. No: material number that is used by the vendor for this material.

Vendor Material Group: material group used by the vendor for this material.

Salesperson: Name of the contact person.

Return Agreement: this can indicate if goods return is possible and if refunds are possible.

In the field Certif. Cat. under Origin data, enter the type of certificate issued by the vendor that applies to this material.

7

BRKT1###

RAW

Your name

03

After entering all the desired data, click Purch. Org. Data 1 in the top left corner of the screen. This takes you to the screen for entering Purchase Organization dependent information, shown below.

Purch. Org. Data

1


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This view is maintained separately for every procurement type. We have chosen the standard procurement type, and we can populate several relevant fields here.

Enter 7 in the PL Deliv.Time field.

Enter 10 in the Standard Qty field.

Enter 5 in the Minimum Qty field.

Enter 100 in the Max Quantity field.

Enter 600 in the Net Price field.

Choose EXW using the F4 key in the Incoterms field.

Enter Location Mungwi next to EXW.

Planned Delivery Time: default time in days in which the material delivery is planned.

Standard Quantity: standard purchase quantity for material.

Minimum Quantity: do not allow procurement of a quantity less than stated here.

Maximum Quantity: we do not want to purchase more than this quantity at a time.

Net Price: net price of material per procurement unit.

Incoterms: trading and delivery terms.

7

10

5

100

600

EXW

Mungwi

Once you have entered all the desired information about our material/vendor combination you can save the data.

Click (Save).


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Record your purchasing information record (PIR) number.



ZP 4: Create a purchase order

Time 20 min.

Exercise Use the SAP Easy Access menu to create a purchase order.

Task Create a purchase order (PO) for a brake kit. Submit the PO to the vendor, Get A Brake. When received and accepted by the vendor, the PO creates a legally binding contract between the two parties.


In order to create a purchase order, follow the SAP menu path:

Logistics ► Materials Management ► Purchasing ► Purchase Order ► Create ► Vendor/Supplying Plant Known (ME21N).

Menu path

ME21N

In the Vendor field, enter the vendor displayed in ZP1 (Get A Brake) or press F4 to find the number. To search for the vendor number, enter your three-digit number (###) as a Search term on the Vendors (General) tab, and Lusaka in the City field. In the result list, double-click the vendor number to choose it.

### Lusaka

Back on the Create Purchase Order screen, open the header data by clicking (Header).

In the Org. Data view, choose or enter ZM00 for Purchasing Org.

Choose or enter Z00 for Purch. Group.

Choose or enter ZM00 for Company Code.

ZM00

Z00

ZM00


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(Note: These fields might already be populated.)

Then click (Enter).

Click (Item Overview) to open the item list. You have to enter the following materials and information (as shown below).

You can use the F4 help to search for and choose Brake Kit. Or you can use the Material by Material Type search tab.

Choose ROH as Material Type.

Enter *### (replace ### with your SAP number) as Material.

Double-click Brake Kit to choose it.

In the Plant field, enter MU00 and click (Enter).

Enter 10 as the PO quantity.

Material PO Quantity Delivery Date Net Price Currency Plnt

BRKT1### 10 Pre-populated when plant is entered

Pre- populated when plant is entered

Pre- populated when plant is entered

MU00

Click (Enter). If you receive a system message asking whether the delivery date can be met, accept it by pressing Enter.

Go to the Conditions tab in the Header section and record the total value of the purchase order: ______________ (ZMW). Record the order value.

Click (Header) and your screen should look like the one below.

ROH

BRKT1###

MU00

10


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Click (Save) to save the purchase order.

A message will appear. To view the system messages, choose . The following message should appear.

The message tells you that you are creating a purchase order, but have not

generated any output to notify the chosen vendor. Click (Enter) to continue.

Then click (Save) again. The following message will appear. Select Save.

Note that SAP will assign a purchase order document number (bottom-left of the screen). Record your purchase order number.

Purchase order

document number

The purchase order screen is again blank, ready for another purchase order to be recorded.


Click (Exit) to return to the SAP Easy Access menu.


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ZP 5A: Create a goods receipt for purchase order

Time 15 min.

Exercise Use the SAP Easy Access menu to create a goods receipt.

Task Receive into inventory the stock items ordered from Get A Brake in the previous exercise. A goods receipt document will be created referencing our purchase order. This will ensure that we receive the products ordered within the timeframes requested and in quality condition. Goods on hand will be increased and an accounting document will be generated recognizing the value associated with these goods.

Name (Position) Benjamin (Warehouse / factory employee)

To create a goods receipt, follow the SAP menu path:

Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO)


Menu path

MIGO

Make sure that the GR goods receipt field (top-right corner) is set to 101.

Enter your PO number from the previous exercise. If you do not have the number, find it by using the F4 help (Purchasing Document per Vendor tab or Purchasing Document for Material tab). Then press Enter.

101

PO number

Ensure that the box in the OK column is populated with for each item. Checking it indicates that you want to adopt it into the goods receipt document and the right materials and right quantity have been delivered. If a line is grayed out,

minimize the Item Detail Data by clicking (Close detail data). For each item, ensure that the box in the OK column is populated with .

OK


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In the SLoc column, enter Storage Location RM00 (Raw Materials). Then click (Save) to save your goods receipt.

RM00

Note that the SAP system will assign a unique number for this new goods receipt

document. This number will appear in a message at the lower-left corner of the

screen.

Goods receipt document

number


ZP 5B: Display purchase order history

Time 10 min.

Exercise Use the SAP Easy Access menu to display the purchase order history.

Task A purchase order history can also be viewed to determine whether the system has updated the open line items on receipt of the invoice.


To display the purchase order history, follow the SAP menu path:

Logistics ► Materials Management ► Purchasing ►Purchase Order ► Display (ME23N)

Menu Path

ME23N



ZP 6: Enter invoice receipt from vendor

Time 10 min.

Exercise Use the SAP Easy Access menu to enter an invoice receipt.

Task Enter an invoice received from Get A Brake for (6 960 ZMW) associated with the recent PO and goods receipts. This invoice will be posted to an existing G/L account in your Chart of Accounts and saved as an Accounts Payable to Get A Brake. It will be settled by issuing a cheque to Get A Brake at a later date.



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To enter an invoice, follow the SAP menu path:

Logistics ► Materials Management ► Logistics Invoice Verification ► Document Entry ► Enter Invoice (MIRO)


Menu Path

MIRO

Enter today’s date as Invoice date (you can use F4 to display the calendar and press Enter to choose today’s date).

In the Amount field, enter the total amount from the invoice document.

In the drop-down menu next to the Tax Amount field, choose Code V1.

In the Text field, enter INVOICE 00-### (replace ### with your 3-digit SAP number).

Click the box next to Calculate tax. Check whether your screen looks like the screen below.

Today’s date

6 960

V1

INVOICE 00-###

Calculate tax

Choose Purchase Order/Scheduling Agreement in the bottom drop-down list and enter your PO number from the first exercise in the Text field next to it. Again, to find it you can use F4 and helpful search criteria such as vendor.

Click (Enter).


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PO number

If the transaction is entered correctly (in respect to Debits and Credits), we will have a green light with a zero (0.00) ZMW balance.

Note: Refer to questions for ZP6 before proceeding. Questions ZP6 1 and 2 should be answered at this stage.

We want to view what the actual postings will look like in the general ledgers. It is here that we can ensure that the Debit/Credit posting is correct and that the

accounts are affected correctly. Click to see whether the postings are correct.

Click (Save posting) to save the invoice receipt.

The system will again create a unique document number in the lower-left corner of

the screen.

Record the document number and answer the questions below.

Invoice document number




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ZP 7A: Display invoice

Time 10 min.

Exercise Use the SAP Easy Access menu to display the invoice created.

Task Once an invoice has been posted, it can be viewed.


To display an invoice, follow the SAP menu path:

Logistics ► Materials Management ► Logistics Invoice Verification ►Further Processing ► Display Invoice Document (MIR4)

Menu Path

MIR4


ZP 7B: Display purchase order history

Time 10 min.

Exercise Use the SAP Easy Access menu to display the purchase order history.

Task A purchase order history can also be viewed to determine whether the system has updated the open line items on receipt of the invoice.


To display the purchase order history, follow the SAP menu path:

Logistics ► Materials Management ► Purchasing ►Purchase Order ► Display (ME23N)

Menu Path

ME23N




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ZP 8: Post payment to vendor Time 10 min.

Exercise Use the SAP Easy Access menu to post a payment to a vendor.

Task Issue a payment to Get A Brake to settle the Accounts Payable. An accounting entry is made to Accounts Payable for Get A Brake and to the applicable bank account in the G/L.


To post a payment to a vendor, follow the SAP menu path:

Accounting ► Financial Accounting ► Accounts Payable ► Document Entry ► Outgoing Payment ► Post (F-53)

Menu Path

F-53

First, enter today’s date as Document Date.

If requested, enter Company Code ZM00 and Currency/Rate ZMW.

In the Bank Data field group, use F4 to find and choose 10 0000 as the Bank Account and enter the amount you are going to pay (Enter Invoice Amount).

Today’s date

ZM00 ZMW

100000

6960

In the Open Item Selection field group, search for the account number for your Get A Brake vendor (use your search term ###) and enter it in the Account field.

All other settings remain unchanged. Your screen should resemble the one above.

Account Number

is your Vendor number

Choose . The following screen will appear.


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Click (Save) to post your payment. Again, the system creates a unique document number. Record the document number:

Payment

document number


The Post Outgoing Payments screen is again blank, ready for another payment to

be entered. Click (Exit) to return to the SAP Easy Access menu. A pop-up box with the SAP warning message shown below will appear. Choose Yes. You have posted your payment, so no data will be lost.

Yes


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ZP Exercise questions [25]

Unless stated otherwise, each question is worth one mark.

1. What is the SAP username you used for this workshop?

QUESTIONS ZP 1: Display vendor master [7]

1. SAP categorizes vendor master data into three groups. What are they? Under each group, give one example of the master data. [3]

2. What is the ‘vendor number’ and ‘vendor name’ displayed? [2] 3. State the country of origin of the selected vendor. 4. State the order currency used for the selected vendor?

QUESTIONS ZP 2: Display material master [5]

1. What is the material number displayed? 2. What is the division of the selected material? 3. What is the purchasing group of the selected material? 4. What is the moving price of the material? 5. What currency is used for the selected material?

QUESTIONS ZP 3: Creating a PIR [1]

1. What is your purchasing info record number?

QUESTIONS ZP 4: Create a purchase order [2]

1. What is the total value of the purchase order? 2. What is your PO number?

QUESTIONS ZP 5: Goods receipt [2]

1. Enter your PO number as recorded in ZP4.

2. Choose the PO history from the Item detail tab. What does the

entry tell you?

QUESTIONS ZP 6: Enter an invoice receipt [3]

1. What is the tax amount of the above transaction?

2. What is the total value of the transaction?

3. What is the document number for the invoice?

QUESTIONS ZP 7: Display purchase order history [3]

1. Display your PO history and list all the entries.


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QUESTIONS ZP 8: Post payment to vendor [2]

1. What is the vendor’s account number as displayed?

2. Record your document number.


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ZP Exercise solutions (Part I)

Unless otherwise stated, each question is worth one mark.

[25]

1. What is the SAP username you used for this workshop?

QUESTIONS ZP 1: Display vendor master [7]

1. SAP categorizes vendor master data into three groups. What are they? Under each group, give one example of the master data. [3]

2. What is the ‘vendor number’ and ‘vendor name’ displayed? [2]

3. State the country of origin of the selected vendor. 4. State the order currency used for the selected vendor?

General Data – Vendor name, Company Code Data – Company code, Purchasing Data - Purchasing org.

Vendor number – 127###

Vendor name – Get A Brake

Country of origin –

Zambia

Currency - ZMW

QUESTIONS ZP 2: Display material master [5]

1. What is the material number displayed? 2. What is the division of the selected material? 3. What is the purchasing group of the selected material? 4. What is the moving price of the material? 5. What currency is used for the selected material?

Material number - BRKT1###

Division – BI

Purchasing Group - Z00

Moving price - 600

Currency - ZMW

QUESTIONS ZP 3: Creating a PIR [1]

1. What is your purchasing info record number?

Purchasing info record no. – 53000000xx

(xx)- To be replaced by the unique number generated

QUESTIONS ZP 4: Create a purchase order [2]

1. What is the total value of the purchase order? 2. What is your PO number?

Total value of PO – ZMW

6 000.00

PO number – 45000000xx

(xx)- To be replaced by the unique number generated

QUESTIONS ZP 5: Goods receipt [2]

1. Enter your PO number as recorded in ZP4.

PO number – 45000000xx

The POH confirms and displays the order and value of the order: The


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2. Choose the PO history from the Item detail tab. What does

the entry tell you?

total order is valued at ZMW 6 000.00 for 10 Brake Kits

QUESTIONS ZP 6: Enter an invoice receipt [3]

1. What is the tax amount of the above transaction?

2. What is the total value of the transaction?

3. What is the document number for the invoice?

Tax amount - ZMW 960.00

Total value of transaction – ZMW 6 960.00

Document number – 51056001xx

QUESTIONS ZP 7: Display purchase order history [3]

1. Display your PO history and list all the entries

Entries relating to goods receipt and invoice receipt are shown.

QUESTIONS ZP 8: Post payment to vendor [2]

1. What is the vendor’s account number as displayed?

2. Record your document number.

3. Display your PO history and record all the entries [3]

Vendor’s Account Number – 127004

Document number – 1500000006

Entries relating to goods receipt and Invoice receipt are shown.


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Part II: Procure to pay reporting Time 20 min.

SAP Business Intelligence provides a broad range of reporting tools to facilitate decision-making for different end users. SAP Dashboard Reports and SAP Crystal Reports are two reporting tools which are increasingly being used to generate various management as well as operational reports from data generated by business processes and transactions.

SAP Crystal Reports makes it easy to create simple reports. However, it also has a comprehensive set of tools needed to produce advanced or specialised reports. As part of Global Bike Group, Zambikes middle-level management now has access to Crystal Reports for analysing operational activities to facilitate decision-making by middle management.

SAP Dashboard Reports is a tool for creating interactive reports that allow decision-makers to quickly view key information that is core to strategic decision-making. They provide simple-to-use interfaces which can be embedded in a number of applications, including web pages and presentations.

ZP 9: Using Crystal Reports Time 20 min.

SAP Crystal Reports is reporting tool that is used to format reports. SAP Crystal Report makes it easy to create simple reports, and, it also has the comprehensive tools you need to produce complex or specialised reports.

EXERCISE ZP 9A: Using ZP Procurement Operational Report 1 [6]

From the ESEFA portal in the ES Fundamentals for Business course, choose and open the ZP Procurement Operational Report 1.

(Ask your tutor/lecturer for the link).

An exception purchase order report can be generated on a daily basis for structured decision-making. Familiarise yourself with the information shown on-screen before answering the questions below.

1. In a few words, explain the purpose of the procurement exception report.

2. Provide a list of departments within an organization where such a report might be useful and explain how the report could add value to these departments. [2]


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3. Can you think of how the historical information in the exception report could be useful for the organization in the future?

4. Zambikes would like to send a delivery reminder to all the suppliers from whom they are expecting deliveries in October. Based on the report, list the suppliers who would be sent a delivery reminder.[2]

5. What additional information would you add to improve the report? [2]


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EXERCISE ZP 9B: Using ZP Procurement Operational Report 2 [4]

The expenditure report shows the monthly expenditure report for different categories of raw materials. Familiarise yourself with the information shown on-screen before answering the questions below.

1. Assuming that the criteria for vendor selection is cost of product, quality and compliance to agreed delivery time, list the vendors with whom Zambikes should avoid signing a long-term contract. Justify your answer.


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ZP 10: Using Dashboard Reports Time 20 min.

Zambikes currently uses a spreadsheet to analyse their expenditure information. The managing director has indicated to his team that while the report contains all the necessary information, it is not easy to interpret and perhaps this information can be supplied in a more user friendly format. In response to these concerns, it was decided to build a reporting dashboard that was interactive, easy-to-use and supplied the necessary information.

A dynamic expenditure report was implemented. It enables users to have a quick overview of the data and to zoom and filter on particular aspects and extract further detailed information as required. The specific information they are concerned with is:

Purchasing expenditure for different categories of raw materials for the previous fiscal year (2013)

The actual expenditure details of each raw material in a particular category

The vendor information relating to each raw material

The countries from which a raw material can be procured

The yearly expenditure trend of each raw material.

Download and save the Zambikes expenditure html and Zambikes expenditure swf files to your local drive.

Zambikes expenditure html

Open the Zambikes expenditure html file and browse through the different charts. Familiarize yourself with the information displayed before answering the questions below.

EXERCISE ZP 10: Using the ZP Expenditure Report [10]

1. What are the countries of origin for the different raw materials in the Wheel and Tyre category?

2. What is the number of units imported for raw material DerailZMW Chain in the Derailleur and Brake category? [2]


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3. What is the amount spent on procurement of materials in the Seat and Pedal category in 2011, 2012 and 2013. What can you say about the trend of expenditure? [4]

4. Assuming that the criteria for Vendor selection are the cost of product and the delivery time, list the vendors with whom you would recommend that Zambikes sign a long-term contract. Your focus is only on the following raw materials from the Frames category. Justify your answer. [3]

Steel Frame Racing Handle Bar Trailer Load Platform


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ZP Exercise solutions (Part II)

Unless otherwise stated, each question is worth one mark.

QUESTIONS ZP 9: Using Crystal Reports

1. In a few words, explain the purpose of the procurement exception report.

2. Provide a list of departments within an organization where such a report might be useful and explain how the report could add value to these departments.

3. Can you think of how the historical information in the exception report could be useful for the organization in the future?

4. Zambikes would like to send a delivery reminder to all the suppliers from whom they are expecting deliveries in October. Based on the report, list the suppliers who would be sent a delivery reminder.

5. What additional information would you add to improve the report?

To view the outstanding overdue goods movements or deliveries.

Procurement & purchase – escalations and follow up

Accounting & Finance – forecast/penalty fee

Production – forecast effect on product/

Assess performance of suppliers for renewal of contract

Allows the purchasing department to estimate when to purchase goods from specific suppliers

GetABrake

Malawheels

Steel Lite

Location – the further away, the bigger the probability of being late

Number of reminders sent

Overall % late deliveries per supplier

QUESTIONS ZP 9B: Using ZP Operational Report 2

1. Assuming that the criteria for vendor selection is cost of product, quality and compliance to agreed delivery time, list the vendors with whom Zambikes should avoid signing a long-term contract. Justify your answer.

Those vendors who have the highest item costs, a high % of defects and a higher % of late deliveries in their respective categories


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QUESTIONS ZP 10: Using Dashboard Reports

1. What are the countries of origin for the different raw materials in the Wheel and Tyre category?

2. What is the number of units imported for raw material DerailZMW Chain in the Derailleur and Brake category?

3. What is the amount spent on procurement of materials in the Seat and Pedal category in 2011, 2012 and 2013? What can you say about the trend of expenditure?

2011 2012 2013

Off Road Seat Kit ZMW 196,320 223,805 219,329

Pedal Assembly ZMW 69,997 60,897 60,288

Racing Seat Kit ZMW 135,953 110,112 106,818

TOTAL ZMW 402,270 394, 814 386,435

4. Assuming that the criteria for Vendor selection are the cost of product and the delivery time, list the vendors with whom you would recommend that Zambikes signs a long-term contract. Your focus is only on the following raw materials from the frames category:

Steel Frame

Racing Handle Bar

Trailer Load Platform

Malawi and South Africa

612 + 398 + 696 = 1706

Decreasing Trend

Steel Frame: Equipment Expert

Racing Handle Bar: Lumumba Hardware

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ZP Procure to Pay Workshop I - Nelson Mandela...

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Transcript of ZP Procure to Pay Workshop I - Nelson Mandela...