Training Documents TrainingPurchaseOrder

Standard Purchase

Process Description:
A purchase order is a legal document used to record an individual purchase (negotiated terms, conditions and pricing) with the vendor or arrange for a delivery based on prior agreement. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date. Purchase orders can be created for materials that have a material master or for materials that do not have a material master. The purchase order can be printed out (User Guide MM 5.1) and posted or faxed to the vendor.

Contents:
This document will take you through the core processes required to create a basic purchase order by following steps 1.2 through 1.5. Steps 1.6 onwards provide details of further enhancements that can be carried out to the PO if desired. Section Contents:

1.1 1.2 1.3 1.4 1.5

1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 2.0

Required Fields Accessing the Create Purchase Order screen Entering Header Information Entering Item Overview information Entering information in the ‘Item details’ tabs: 1.5a Account assignment tab 1.5b Invoice tab Entering the account assignment for split charging Entering a vendor’s catalogue number Entering a delivery schedule Removing the requirement for goods receipt Entering net discount for an item Entering extended text for an item Entering PO header text messages PO vendor address details Entering an alternative delivery address/Customer a/c # with vendor Saving the purchase order or adding further line items Quick reference guide to create a Purchase Order

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1.1

Required Fields:

The fields that require an entry when raising a purchase order are:

Input - Required Fields Purchase Order Type Vendor Purchase order date Purchasing Organization Purchasing Group Delivery date category Delivery date Material Short text

Field Value / Comments Should be defined as a personnel setting by the user to default in the purchase order document type for each department. Vendor number Purchase Order date. Should default. Should be defined as a personnel setting by the user to default in as 7002. Should be defined as a personnel setting by the user to default to the department or area for whom the Buyer is purchasing. Daily, weekly, or monthly The expected delivery date can be entered. Material number if material master exists, leave blank if it doesn’t. Defaults from material master if a material master exists. If there is no material master record, enter a description of the material. If a pack size needs to be defined this should be entered at the beginning of the description eg 10g sodium chloride, 25g sodium chloride. Defaults from material master if a material master exists. If there is no material master record, enter the Material group code. The type of account, eg K - Cost center, F- Order, E or M - Sales Order or IInvest Account assignment must be entered if there is no material master record or if the material master record is being used to purchase a frequently ordered item.

Material group Account Assignment category

Quantity Unit of Measure Net price Plant Storage location Vendor material Tax code General Ledger account Account Assignment code Eg Each, Box, bin etc Net Price per unit of the material Will default in as 7002. If the item being ordered is to go into a stores as a stores stock item, enter the relevant store. Supplier catalogue number. Not mandatory, do not maintain with Z5A Order type Defaults from material master if a material master exists. If there is no material master record, enter the relevant G/L account here The Cost center, Sales Order or project code, must be entered if there is no material master record or if the material master record is being used to purchase a frequently ordered item. If you require to identify the requisitioner of each line item, enter the code for this individual by selecting from the drop down box. Any notes required in connection with a line item may be entered here. These will not be printed on to the hard copy of the purchase order. They will be visible to the store person during the goods receipt process.

Individual Unloading point/Goods recipient

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1.2

Accessing the Create Purchase Order screen: To access the ‘Create Purchase Order’ screen, follow the menu path: Logistics>Materials management>Purchasing>Purchase order> Create>Vendor/supplying Plant known or use transaction code ME21N.

1.3

Entering Header Information: On the “Create Purchase Order” screen, in the Header fields next to the shopping trolley, enter information as specified in the table below:

Field Name Order type (Purchasing) Purchasing document number Vendor

Description Purchase order document type

R/O/C R

Purchase Order Number

C

User Action and Values Should default in the purchase order document type for each department, as defined in ‘Personal setting’. Number will be internally assigned

Comments To define your personal setting see User Guide Leave blank

Vendor number

R

From the drop down menu that appears when you place the cursor in

Where a vendor has a Head Office and a

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this field, enter the code of the relevant Vendor required. Doc date Purchase order date R Date PO created defaults to today’s date

Purchase Ordering Address, first select the Head Office Address.

Once all the required data mentioned above is entered click on either the proceed.

or ‘Enter’ to

On the ‘Org. data’ Header tab enter information as specified in the table below:

Field Name Purchasing Organization Purchasing Group Company code

Description Purchasing Organization code Purchasing Group Code Company code

R/O/C R R R

User Action and Values Should default in as 7002 as defined in ‘Personal setting’. Should default as defined in ‘Personal setting’. Should default in as 0284 as defined in ‘Personal setting’.

Comments

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1.4

Entering Item Overview information: In the Item Overview fields, enter the information as specified in the table below:

Field Name Item A (Account assignment category)

Description The number of the item Type of account where costs are allocated

R/O/C R O

User Action and Values Will default in when item entered Choose either internal Order (F), sales order (E), or Cost Center (K,J) to charge costs

Comments Orders and cost centers will have assigned numbers. If an item is to be placed in stock then you would not enter an account assignment category. Instead a storage location mentioned below would be entered.

I (Item category) Field Name Material

Type of purchase Description Material number

C R/O/C R

Will default in blank for Standard. User Action and Values Enter the material number if a material master record exists. Leave blank if a material master does not exist Comments If no material master is to be entered then a short text description and a material group is required. Will default in from Material Master if one is entered.

Short text

Description of the material

R

PO Quantity OUn (Unit of Measure) C (Delivery date category) Deliv. date

Required units or quantity Unit of Measure

R R

The description is copied from the material master if a material master exists. If there is no material master, you must enter a description of the material you want to purchase. Where there is a requirement to order a particular pack size of a material (eg 2.5l, 500g etc) this should be entered here, at the beginning of the short text. Enter qty. required Enter the units the material is sold in

Will default in from Material Master if one is entered.

Indicates daily, weekly or monthly Date material is required

O R

Default is “D” for daily Enter the expected delivery date or leave blank for system default Vendors current price (excluding VAT) should be entered here Default is USD (US Dollars) Select the appropriate code Will default in as the current day’s date if no entry is made. Will default in from Info Record if one exists. Will default in from Material Master if one is entered.

Net Price Currency Matl group

Vendors Price Currency Code categorising the type of purchase being made. Plant to which delivery is to be made

R R R

Plnt

R

Default is 7002 for Surgical .

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Stor Loc (Storage Location)

Where stock is stored

O

Select stores if item ordered is to go into stock

If an item is to be placed in stock then you would not enter an account assignment category mentioned above.

TIP: When entering the data described above one can press ‘Enter’ after each field is entered which will have the effect of automatically placing the cursor in the field of the next required entry. This can then act to navigate you through the entry process. Once the above data as required is entered click on the ‘Enter’ to proceed with a basic order. If you are taken to the ‘Account Assignment’ tab go directly to 1.5 below. If you entered an ‘Account assignment category ‘, go to Section 1.6

1.5

Entering information in the ‘Item details’ tabs: 1.5a Account assignment tab

On the Account assignment tab, enter information in fields as specified in the table below. To reach the ‘Individual’ field, click on the ‘More’ icon.

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Field Name G/L account

Description General Ledger code

R/O/C R

Cost center

Cost Centre

R

Unloading point

Goods recipient

Any notes required in connection with a line item may be entered here. These will not be printed on to the hard copy of the purchase order. They will be visible to the store person during the goods receipt process. Any notes required in connection with a line item may be entered here. These will not be printed on to the hard copy of the purchase order. They will be visible to the store person during the goods receipt process.

R

User Action and Values Enter the appropriate G/L code for the item being purchased. A search can be carried out via the matchcode button. Enter the appropriate Cost centre code for the item to be charged to. A search can be carried out via the matchcode button. Describe destination of goods

Comments Will default in from Material Master if one is entered.

R

Enter manually or use matchcode.

If you wish to retain the account assignment entry for subsequent line items, click on the ‘Account Assignment on’ icon (looks like a match), shown below:

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match off.bmp

match on.bmp

Click on the

‘Enter’ button to proceed to the Invoice tab.

1.5b

Invoice tab

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On the Invoice tab, enter information in the tax field as specified in the table below:

Field Name Jurisdict. Code Tax code

Description Used for tax determination with Vertex Tax status

R/O/C O O

User Action and Values Filled automatically Identifies the ltem’s relevance for tax.

Comments

No entriy here, for exception see documentation for repair process.

Click on the Then:

‘Enter’ button or press enter.

either, save the purchase order by proceeding to Section 1.15 or, continue to enter further lines on the purchase order, as in Sections 1.4 and 1.5 and then save the purchase order by proceeding to Section 1.15

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or, enter additional information about the item on the purchase order. Additional information may be entered as follows: To enter a vendor’s catalogue number, click on the ‘Material data’ tab. See Section 1.7 To enter a delivery schedule, click on the ‘Delivery schedule’ tab. See Section 1.8 To remove the requirement for goods receipt, click on the ‘Delivery’ tab. See Section 1.9 To enter a net discount for an item, click on the ‘Conditions’ tab. See Section 1.10 To enter extended text for an item , click on the ‘Texts’ tab. See Section 1.11 To enter a header text, click on the ‘Texts’ Header tab. See Section 1.12 To enter an alternative delivery address, click on the ‘Delivery address’ tab. See Section 1.14

1.6 Entering the account assignment for split charging If the screen below is reached due to the entry of an account assignment key ‘Y’ then enter the information as specified in the table below. (To reach the field to enter the ‘Individual’ code: select the line you wish to make the entry for, click on the ‘Detail’ icon, click on the ‘More’ button.)

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Field Name Distribution

Qty./percent

Cost center/ Order/WBS Element

Description Whether the split of quantity/value will be based on quantity or percentage. Based on the distribution indicator set above enter here the quantity or percentage split for the cost object. Cost Centre/ Order/ WBS Element

R/O/C R

User Action and Values Select required data

Comments

R

Select/key in required data.

R

G/L account

General Ledger code

R

Unloading point

Goods recipient

Any notes required in connection with a line item may be entered here. These will not be printed on to the hard copy of the purchase order. They will be visible to the store person during the goods receipt process. Any notes required in connection

R

Enter the appropriate Cost object code for a portion of the cost or the item to be charged to. A search can be carried out via the matchcode button. An explanation of the structure of the G/L codes will be given during training by Central Finance. Enter the appropriate G/L codes for the proportions of the item being purchased. A search can be carried out via the matchcode button. An explanation of the structure of the G/L codes will be given during training by Central Finance. Location of Goods Recipient

Will default in from Material Master if one is entered.

R

Fill in manually or via Matchcode

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with a line item may be entered here. These will not be printed on to the hard copy of the purchase order. They will be visible to the store person during the goods receipt process.

Once the required data above has been entered, ‘Enter‘ to go to the ‘Invoice’ tab’ and return to Section 1.5b Invoice tab of this Guide.

1.7

Entering a vendor’s catalogue number: On the Material data tab under Item details, enter information in the Vendor mat. no. field as specified in the table below:

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Field Name Vend. mat.

Description Vendor material number

R/O/C O

User Action and Values The product code of the material with the vendor.

Comments May default in if entered in the info-rec.

Once the required data above has been entered click on

‘Enter’ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. 1.8 Entering a delivery schedule: On the Delivery schedule data tab under Item details, enter in the required delivery quantities line by line down the schedule table as specified in the table below:

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Field Name Delivery date category Delivery date Scheduled qty.

Description Indicates daily, weekly or monthly Date expected for delivery of material Scheduled quantity

R/O/C R R R/O

User Action and Values Default is “D” for daily Entered manually The proportional quantity of the total ordered to be delivered at the date specified for that line in the schedule. Used for vendor evaluation. Day of goods receipt – stat. del. Date will give a value for vendor evaluation.

Comments

StatDelD

Statistical Delivery Date

C

Once the required data above has been entered click on ‘Enter’ to proceed. Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. 1.9 Removing the requirement for goods receipt: On the Delivery tab under Item details, remove the requirement for goods receipt by clicking on the ticks in the ‘Goods receipt’ and ‘GR non-valuated’ to remove them.

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Once the required entry above has been made click on

‘Enter’ to proceed.

Please note, that removing the requirement for goods receipt resulted, that you don’t have to book goods received for that item. At Zeiss it is common, that another person acknowledges that the goods were delivered. Setting the GR non-valuated means, that GR will not be posted in FI. It will be posted with the invoice later. Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below.

1.10

Entering net discount for an item

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On the Conditions tab under Item details, enter information as specified in the table below:

Field Name CnTy

Description Condition Type

R/O/C O

User Action and Values Enter in the relevant condition type. This could be a discount or surcharge.

Comments Those already present on the screen are mandatory. Although changeable the rate/price entered for PBXX must be maintained.

Rate

Rate/ Price/ Percentage/ Value

O

Enter this value in the format dictated by the condition type.

Once the required data above has been entered click on ‘Enter’ to proceed. Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. 1.11 Entering extended text for an item

Select the Texts tab under Item details:

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On this tab one can enter extended text messages to appear against the line item. These texts will appear on the PO between each line item. Select ‘Item texts’ and type in the required text message in the blank field. Certain texts can be defaulted in from other master data records such as the ‘Info record PO text’ and the ‘Material PO text’ Once the required text has been entered click on ‘Enter’ to proceed.

Double-click in the text window . Than a text editor appears. There are two text-editors available, one is the so-called line-editor, the other continuous-text-editor. Example for line-editor :

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Same Text in the other editor:

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Go Back to PO with the Back-Button Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. 1.12 Entering PO header text messages

Select the Texts tab, under the Header:

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On this tab one can enter extended text messages to appear against the line item. These texts will appear on the PO at the bottom. Select ‘Header text’ and type in the required message in the blank field. Once the required text has been entered click on ‘Enter’ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below.

1.13

PO vendor address details

To view the vendor address, select the ‘Address’ tab under Header and the address will be displayed.

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If the vendor has a different purchase ordering address, to view the purchase ordering address select the ‘Partners’ tab under Header. Select the ‘Ordering Address’ line and click on the ‘Details’ icon.

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1.14

Entering an alternative delivery address/Customer a/c # with vendor.

On the Delivery address tab under Item details, enter information as explained below:

The delivery address functionality of SAP is being utilised Zeiss to fulfill two functions. Firstly it is being used for its true purpose which is to enter alternative delivery addresses on to the purchase order. Secondly where departments order from a vendor with which they have a specific account number that must be printed on the purchase order, the delivery address functionality will be used to provide all of the possible delivery addresses these vendors might deliver too but also include in the account number. Delivery address’s are master data and thus need to be set up. If you require either a delivery address or one with an account number being set up please refer to the User Guide script ‘Delivery Address for alternative delivery’. The processes for entering alternative delivery addresses, be it for a customer account number or standard delivery address, is virtually the same and will therefore be described in one process as follows: 23

1. In the ‘Delivery Address’ tab, under Item details, in the Address field enter the master record number of the intended delivery address. If this is not known carry out a search as follows, • Place the cursor in the ‘Address’ field • Click once on the ‘Matchcode’ button to the right of the field • A selection criteria tab will appear. Enter any criteria that may narrow your search or leave blank for a generic search. Click on the ‘Enter’ button to carry out the search. Remember the sort terms A & B follow a convention set out in the delivery address create Business Process Procedures 1.4 and 1.5. The results of the search will be displayed. Click once to place the cursor somewhere on the lines of the delivery address required. Click on the record number in the ‘Delivery Address’ tab. ‘Enter’ button to place the address’s

2. Click on the ‘Enter’ button to validate the screen and to default in the address you have selected. 3. The following options are now available to you, Click on the ‘Enter’ button to accept the delivery address for the selected line item.

Click on the button to automatically insert the selected delivery address for subsequent line items that are to be entered. It will not insert the selected delivery address for subsequent line items that have already been entered. Click on the button to switch off the selected delivery address from being automatically inserted against subsequent line items that are to be entered.

Once the required data above has been entered click on

‘Enter’ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below.

1.15

Saving the purchase order or adding further line items If this form has directed you to this section then you now have the choice of doing the following: 24

Save the PO. Do this by clicking on the ‘Save’ button. Upon saving, the system will assign a PO number at the foot of the screen. Enter further line items. Do this as explained from 1.4 above. Alternatively, review and change details entered before saving the PO.

2.0

Quick reference guide to create a Purchase Order

Path: - Logistics> Materials Management> Purchasing> Purchase order> Create> Vendor/supplying Plant known. (Transaction code: - ME21N)

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In the fields next to the shopping trolley, check the correct Purchasing Document type has defaulted in. In the Vendor field, select the required vendor. Enter. In the Org. data Header tab, check the correct Purchasing Group has defaulted in. Enter. In the Item Overview fields, enter the Account assignment category, the short text, PO quantity, Order Unit, Net price and Material Group. Enter. In the Account assignment tab, enter the G/L account and either the Cost center, Order or Sales Order number. Enter. If required, enter any further information for the line item. If required, enter further line items, entering information in the Item Overview fields, in the Account assignment tab and Invoice tab, as above. Save.

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