Overview of

Procurement
Processes
Trainer : Email : Ph : (Australia)
Gurjeet Singh info@studynest.org +61413159465
  Procurement Cycle
 Stock Transfer Order
 Sub-Contracting
Overview of
 Vendor Consignment
Procurement  Organizational Levels
Processes  SAP Navigation
 SAP Purchase Order
 Goods Receipt
 Invoice Verification
 Procurement
Cycle
(Procure to Pay)
 Procurement Cycle
Determination of
Requirements
PO invoice
?
= Payment Determination of
Processing 1 2 Source of Supply

8
vendor 1
Invoice
7 MM 3
Vendor
Verification Selection
vendor 1

6
Good 4 Purchase
Order
Receipt PO

5 Processing
PO
PO
PO
Monitoring
 Stock
Transport Order
 Stock
Transport
Order
(STO)
Sub-Contracting
 Sub
Contracting
 Vendor
Consignment
 Vendor
Consignment
 Org. Levels
in
Procurement
Process
 Org Levels
in
Procurement
Process
 Client – is a unit with SAP that is self-
contained both in legal and
organizational terms and in terms of
master data and transactional data. From
business point of view, the client could
Org Levels represent a corporate group.
Company Code – is the smallest org
in unit that represents an independent and
Procurement legal accounting entity. It is required by
Process law to provide balance sheets and profit
& loss statements.
Plant – is an org unit within logistics
that subdivides the enterprise from the
viewpoint of production, procurement,
material planning.
 Storage Location – is an org unit that
facilitates the differentiations of stocks of
materials within a plant. Inventory
management on a quantity level is
carried out in the plant at this level.
Org Levels Purchasing Organizations– is an org
in unit within logistics that subdivides the
Procurement enterprise according to the purchasing
requirements i.e. You can have
Process centralized or decentralized purchasing
(cont.....) for your company.
Purchasing Group – is key for a buyer
or a group of buyers who is/are
responsible for the procurement of a
material or a class of materials.
 Org Levels
(Purchasing
Org/Group)
 Plant
Specific
Purchasing
Organization
A purchasing org is responsible
for procuring materials for just
ONE plant.
Cross-plant
Purchasing
Organization
A purchasing org is responsible for
procuring materials for SEVERAL
plants.
 Cross-
Company-
Code
Purchasing
Organization A purchasing organization can be
responsible for MULTIPLE
Company Codes.
 SAP
Navigation
 SAP GUI Icon
How to login to SAP?
How to reset your password?
Standard SAP Screen for all Modules
SAP Command bar
Navigation Menu Path for Transactions
Favourite transactions
F1 help
F4 search
Multiple SAP Sessions.
Introduction to
SAP Purchase
Order Cycle
 Purchase Good Invoice
SAP Order
(ME21N)
Receipt
(MIGO)
Document
(MIRO)
Purchase
Order
Purchase
Order
Purchase
Order
Format
Purchase
Order
Create/Change/Display
Purchase
Order
Output
 Purchase Good Invoice
Order Receipt Document
Goods (ME21N) (MIGO) (MIRO)

Receipt
Goods
Receipt
 Goods
Receipt
Movement
Types
Goods
Receipt
 Purchase Good Invoice
Order Receipt Document
(ME21N) (MIGO) (MIRO)
Invoice
Verification
Information
in an
Invoice
 Create a new Purchase Order using
transaction code ME21N.
Familiarize yourself with the different
screens of this purchase order.
Create a Goods Receipt for the above
PO using transaction MIGO
Assignment Finally create an Invoice for this PO
using transaction MIRO.
Observer different screens and fields
of this invoice.
See the “Purchase Order History” of
your PO.
a