You are on page 1of 14

Process code : EAL IT Process Lead: Manoj Mishra

P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

1. BUSINESS PROCESS SCOPE...........................................................................................................................................................................................................................2


2. PROCESS APPROACH IN SAP........................................................................................................................................................................................................................2
2.1 MODELING OF BUSINESS REQUIREMENTS IN SAP...........................................................................................................................................................................................2
2.1.1. To-Be process flow description......................................................................................................................................................... 2
2.1.2. To-Be process flow chart................................................................................................................................................................ 12
2.1.3. Change management issues........................................................................................................................................................... 13
3. BUSINESS REQUIREMENTS & ITS MAPPING..............................................................................................................................................................................................13
3.1 PROCESS REQUIREMENTS.........................................................................................................................................................................................................................13
4. REFERENCE.................................................................................................................................................................................................................................................13
6. GAP ANALYSIS............................................................................................................................................................................................................................................13
7. Business Process Approval..........................................................................................................................................................................................................................14

Page 1 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

1. Business Process Scope

Import Procurement

2. Process approach in SAP

2.1 Modeling of business requirements in SAP

2.1.1. To-Be process flow description


Sr. Step by Step Processes Mapping Role System
No. Business Process
1 Realization of The business must know it needs a new product which is of some special quality like raw materials or spare Non-SAP
requisition parts, which is required to be imported for quality concern. The product may be one that needs to be
reordered, or it may be a new item for the company. Relevant department will raise the requisition for the
material.

Required material master can be created in SAP.


2 MRP Run The main function of MRP is to guarantee material availability on time. SAP
MRP is required to procure or produce the required quantities on time for in- house purpose or for fulfilling
(T. Code: MD01) customer demand.

To do this activity MRP 1,2,3,4 view for all material must be extended in material master. MRP run must be
created at Plant level. MRP controller will run the MRP when required. In EAL, there are 3 MRP controllers.
MRP CONTROLLER FOR FG - MRP.

Page 2 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

MRP CONTROLLER FOR ROH - 101.


MRP CONTROLLER FOR PACKING MATERIAL - 100.

Following fields must be filled with data in Material Master MRP view.
Field Name Field Values
MRP Type PD / ND
MRP Controller Relevant controller
Lot Size As per business requirement
Procurement Type E - In-house Production,
F - External Procurement,
X -Both Procurement
Period Indicator P / M/ W/ T
Availability Check 01 / 02

To run a MRP for a material following fields need to be filled up.


Field Name Field Values
Material Material no. for which you will
run MRP
Plant Manufacturing Plant for which
you want to take MRP run.
Processing key NETCH
Create Purchase Requisition 1/2/3 as per requirement
Schedule Lines Schedule Lines
Create MRP List MRP List
Planning Mode Adapt Planning Data
Scheduling Lead time scheduling

Once the MRP run is set, stock/requirement list through MD04 can be maintained. Here, Purchase
Requisition will be created automatically. Purchase Requisition can be converted to Purchase Order.

Page 3 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

MRP can be converted to Planned Order depending upon the Procurement type. If Procurement type is ‘E’
for In house procurement then Planned Order will be generated and if procurement type is ‘F’ for external
procurement then Purchase Requisition will be created. If MRP run is not scheduled for a material the PR
will be created automatically.

More details of MRP are described in detail in Market Oriented Planning BBP
(PP02_MarketOrientedPlanning_v0.1.doc).
3 Purchase Once requirements are gathered, authorized person will intimate the purchasing department about the SAP
Requisition(PR) requirement. Purchase department will verify the requirement with the department head. Once
requirement is confirmed then Purchase Requisition will be created.
(T. Code: ME51N)
Purchase Requisition is a document that will contain list of requirements; either for material or services.
Purchase Requisition is an internal document; specifically it remains within the organization. It needs
approval from Approvers within the Organization.

In EAL, creation of Purchase Requisition is optional. PR will be created as per business needs. It will be
created automatically through MRP run or manually by user. For Import Procurement if a material is eligible
for packing, then MRP run will generate the PR.

Purchase Requisition number range should be defined before creating the PR for Asset. In EAL, Asset PR
number range is assigned within 0010022163 – 0019999999 range.

In PR, Account Assignment Category can be Asset (A) or it can be blank as material code will be provided.

PR document type must be “NB” for Import PR.

Following fields are mandatory for Asset procurement PR.


Field Name Field Values
Document Type NB for Asset PR

Page 4 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

Material Code As per requirement


Quantity As per requirement
Plant The Plant from which procurement will be done.
Purchase Org Relevant Purchase Org
Purchase Group Relevant Purchase Group
Requisitioner Name of the Requisitioner
Tracking No. Tracking No. must be included
G/L Account G/L number
Asset No. Relevant Asset No.
4 Release Purchase Purchase Requisition created by user will undergo through authorization process. This authorization SAP
Requisition depends on some criteria. Relevant Authorized person can approve the requisition.

(T. Code: ME54N) In EAL, PR release strategy depends on Plant, PR Type, Purchase Group, PR Net Value.
Release Strategy configuration will be done at realization phase. The Approval to be done at item level.

System does not allow processing the requisition to create PO unless it is approved. If any approver rejects
the purchase requisition (PR), then purchase requisition will be returned back to previous level. Again the
same PR will be changed as per the changed requirement.

To release the PR following details are mandatory for EAL.

Characteristics: PR Type, Purchase Group, Total Value, Plant.


Class: At least one class must be created for all characteristics.
Release Group : For EAL release group will be EG
Release Code: Release code is the departmental authorized person who has authorization to release the
PR.
Release Code Description
10 Manager
20 GM

Page 5 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

30 GM

Release Indicator: Release indicator must be set to identify the status of the PR.
Release Strategy: It is the level of approval required to release a PR.
Release group Release Level One Level Two Level Three Description
Strategy Approval Approval Approval
EG A1 10 0.00 - 25000
EG A2 10 20 25001 -
100000
EG A3 10 20 30 <=100000
5 Vendor Selection Vendor selection is an important process in procurement cycle. Once requirements are gathered buyer will Email
look for possible suppliers who can fulfill the requirements at the best possible price. So a request is made Quotation
to vendors to submit their quotations indicating the price of material along with their terms and conditions.

In EAL, vendor selection will be done through email quotation. Vendor will send their quotation by mail
along with all the terms & conditions, price, payment terms and all. EAL Management will decide which
vendor to select and give the tender for procurement. No RFQ and Quotations will be generated in SAP
System.

For import procurement separate vendor code will be created with different account group. If vendor does
not exist in SAP then a new vendor needs to be created. For more details on vendor kindly refer to
P2P01_MasterData_v0.1.
6 Purchase Order Once vendor is selected import PO will be raised for selected material to the respective vendor. PO can be SAP
Creation created with reference to PR or manually. The document type used for import purchases will be the same
as that used by the indenter for general material purchases.
(T. Code: ME21N)
PO release will be at header level which means it will be applicable for all line items. PO number range will
be 4500221692 - 4599999999.
For standard PO following fields are mandatory.

Page 6 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

Field Name Field Values


Document Type NB - Standard Purchase Order
Vendor Selected Vendor Code
Incoterms Incoterms must be filled as per business
Payment term Vendor payment term
Currency Vendor order currency
Exchange Rate As per market exchange rate
Net price Price of the material
Tax Code Applicable tax code for GST( CGST / SGST)
Org Data Purchase Org, Purchase Group, Company Code must be filled
Validity Start & End date PO start date and end date
Account Assignment Category A – Asset / k-Cost Center / blank
Material Material Code
Price Condition Pricing Condition will be fetched automatically as per vendor
and Purchase Org schema determination combination. For
import procurement pricing procedure will be different.

In EAL, some customized condition types will be used for


pricing. Following condition types are used for import
procurement.
Condition Type Description
P001 Gross Price
JOFP Ocean/AirFreight-%
JOFV Ocean/AirFreight-Val
JINS Import Insurance-%
JLDC Customs Landing Char
JCDB IN Basic customs
JCFA Clearing Agent Charge

Page 7 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

JSBC SEcess 1% on BCD


JEDB Ecess 2% on BCD

There may be some more condition types that would be


relevant for import procurement. KDS for pricing procedure
are as follows.

Calculation vendor schema Purchase Org Schema Purchase Org-Pur.


Schema.XLSX groups.XLSX Schema group.XLSX determination.XLSX Org Schema assignment.XLSX

Asset No. Respective asset no. must be entered


Info Record Info Record will be created automatically
G/L Account Respective G/L number must be filled
7 Release PO Once Standard PO is created it must go through an approval process. Authorized person will approve the
PO depends upon the criteria.
(T. Code: ME29N)
In EAL, PO release strategy depends on PO Type, Purchase Group, PO Net Value.
Release Strategy configuration will be done at realization phase. The Approval to be done at header level.

To release the PO following details are mandatory for EAL.

Characteristics: PO Type, Purchase Group, PO Total Value


Class: At least one class must be created for all characteristics.
Release Group : For EAL release group for PO will be EE
Release Code: Release Code is the owner of the department who has authorization to release.
Release Code Description
10 GM
20 (VP-Finance)
Release Indicator: Release indicator must be set to identify the status of the PO. PO can be changed after

Page 8 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

final release. For that final approver will have to revoke his/her release.
Release Strategy: It is the level of approval required to release a PO.
Release group Release Release code Release code Description
Strategy
EE A1 10 20 0.00 - 25000.00 INR
EE A2 20 >=25001
8 Print PO Once PO is created, it can be printed from print icon in the respective PO and can be sent to the vendor. SAP
Output type NEU and application EF are assigned for Purchase Order. Smart form is used as
(T. Code: ME9F) ZMM_PO_SF2_GST. Form routine is set as ENTRY_NEU. After taking the printout PO will be sent to export
vendor either through email or hardcopy.
9 Customs Invoice Once the goods are received in customs, custom duty needs to be paid. EAL will pay the customs duty to SAP
the customs department.
(T. Code: MIRO) Custom Invoice is extended form of commercial invoice required by customs in which the exporter states
the description, quantity and selling price, freight, insurance, and packing costs, terms of delivery and
payment, weight and/or volume of the goods for the purpose of determining customs import value at the
port of destination.
10 Gate Pass Entry Once custom invoicing is done, transport vendor will take the goods from customs department and deliver SAP
the goods to the Ordering party i.e. EAL. Once the material is reached at Plant or unloading point, then one
(T. Code: ZINB) gate pass entry will be issued against that PO. Store person will issue the gate pass after preliminary
verification.

Gate pass can be issued through SAP. But there is no standard feature for this in SAP. Customization will
fulfill this requirement. Customized t. code ZINB is created through which gate pass will be issued which will
be linked to Purchase Order.

GR Pass cum Vehicle Pass must be selected to create an entry gate pass. Customized T. Code ZINB_CREATE
will be used to create gate pass.
11 Weigh Bridge Weigh Bridge is a machine for weighing vehicles like truck. It is a platform scale that stands flush with a SAP
road and is used for weighing trucks. Here net weight of the procured material is measured.

Page 9 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

(T. Code: ZINB)


First calculate the weight of truck with material loaded and then calculate the weight of empty truck after
unloading the material. Hence, exact weight of the material can be calculated.

Weight of the material = Weight of loaded truck – weight of empty truck

In EAL, Weigh Bridge is mapped in SAP through a customized T. Code ZINB.


To create a Weigh Bridge entry T. Code is ZINB_CREATE. If Weigh Bridge entry is not required for a material
then Goods Receipt will be done after creating Gate pass

Following fields are mandatory here:


Field Name Field Values
Vehicle Type Truck / Tanker / Container
Vehicle Capacity Vehicle capacity will be measured in MT.
Address Address must be given
Plant Plant code
Truck No. Truck no must be filled
Unloading Point Location where vehicle will unload the material
Type of Process Purpose of the Logistics process
Driver name Driver of the vehicle
Weighment Required WRG
Quality Required YES
Document Category Either mat doc or PO No.
PO/Mat Doc. PO or Material doc number must be given
Amount price
Challan Quantity Quantity in PO
12 Goods Receipt Goods Receipt is done against purchase order for material by selecting purchase order number. System SAP
displays all open items pending for delivery for the PO selected.
(T. Code: MIGO)  A goods receipt will be recorded at the Store.

Page 10 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

 Goods receipts will be recorded even for deliveries which fail the quality inspection tests.
 If a material is relevant for Quality Inspection then it will be moved to Quality stock after goods
receipt. In Quality Management, received material quantity is checked as per requirement.

Quantity Stock will get updated and valuation will be increased. Accounting document gets generated in
background. Following Accounting entry will be generated
Inventory account Dr to
GR/IR Clearing A/c Cr
During Goods Receipt movement type 101 will be used.
13 Quality Inspection Materials which are subjected for quality inspection (Quality view maintained in the material master) will SAP
automatically be posted to quality inspection stock at goods receipt.
(T. Code: QA32)
Quality Assurance team will intimate the store about the results so that they can proceed with unloading
and GR recording.

Inspection lots will be generated at GR. The QA user will record results of the quality check, give a usage
decision and post the material to unrestricted stock. Details of the Quality inspection process are described
in detail in the QM BBP.
14 Logistics Invoice In the process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their SAP
Verification content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The
system updates the data saved in the invoice documents in Materials Management and Financial
(T. Code: MIRO) Accounting. This process ensures three ways matching i.e. PO price, GR Quantity. Following Accounting
entry will be generated when vendor’s invoice is posted for materials
GR/IR Clearing A/c Dr
Vendor A/c Cr
Quantity differences between goods receipt and invoice receipt for a purchase order result in a balance on
the GR/IR clearing account.

Page 11 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

2.1.2. To-Be process flow chart

Page 12 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

2.1.3. Change management issues


[Identify Change Management related issues with Business and prepare action plan]
Sr. No Issue Description Action Plan

3. BUSINESS Requirements & Its Mapping

3.1 Process Requirements


Sr. Business Requirements Requirement Solution Remarks
No
1 [Write process related/ legal/ authorization [Proposed solution for Business requirement – To be [Enter remark like Resolved/ Gap
requirements –To be filled up by Business] filled up by consultant] etc. – To be filled up by consultant
and Business]

4. Reference

Process No Process Description


Links to BUSINESS process If applicable (any external
reference process number,
e.g. from ISO/ FDA etc.)

5. Gap Analysis

Sr. No. Gap Description Approach**

Page 13 of 14
Process code : EAL IT Process Lead: Manoj Mishra
P2P03 Business Blueprint Consultant : Debasmita Ghosh

Title : Import Procurement Version : 0.1 Date : 17.07.2018

[List the requirements which cannot be [Proposed approach – to be prepared by


mapped with standard SAP – to be prepared consultant and Business]
by consultant and Business]

**Identify that there is a needed business function that cannot be accommodated by SAP. Mention System modification that needs to be done- at a higher level,
any future enhancements which might address the requirement

6. Business Process Approval

Implementation Partner Emami Agrotech


Name Signature Date Name Signature Date

Page 14 of 14