ERP Design &

Implementation
Session 3

Purchase-to-Pay Processing in SAP ERP

Organizational Levels
Master Data
Transactions
Organizational Levels of Purchase-to-
Pay
GBI Organizational Levels of
Procurement
Purchasing Organizations Models

1. Enterprise Level Purchasing

Organization
2. Company Level Purchasing
Organization
3. Plant Level Purchasing
Organization
Enterprise Level Purchasing
Organization
Company Level Purchasing
Organization
Plant Level Purchasing Organization
Purchasing Group
A Purchasing group is an individual or a
group of individuals who are responsible for
purchasing activities for a material or a
group of materials.
These activities include planning, creating
purchase requisitions, requesting
quotations
from vendors, and creating and monitoring
purchase orders.
ERP Design &
Implementation
Session 3

Purchase-to-Pay Processing in SAP ERP

Organizational Levels
Master Data
Transactions
Material Master
Material Master
View Information
Basic Material Description UOM
Data Number
Financial Valuation Valuation Price Control
Accountin Currency Class (Moving/Standa
g rd)
Purchasin Purchasing Goods Delivery
g Group Receipt Tolerances
Processing
Time
Storage Temperature Shelf Life Handling
/ Instructions
Humidity
Reqts.
Vendor Master
Purchasing Info Records
Conditions
They are used to determine the
appropriate prices, discounts,
taxes and freight for the materials.
They are based on the overall
agreements and contracts in
place with vendors.
The company uses these
conditions to determine pricing
when it creates purchase orders.
ERP Design &
Implementation
Session 3

Purchase-to-Pay Processing in SAP ERP

Organizational Levels
Master Data
Transactions
Detailed Procurement Process
1. Purchase Requisitions
2. Purchase Orders
Source Of Supply Determination
Purchase Order Processing
Purchase Order Format
3. Goods Receipt Processing
Movement Types (GR, GI, Stock
Transfer)
4. Logistics Invoice Verification
5. Vendor Payment
Financial Impact of GR,IV &
Payment
Integration Points of Purchase
to Pay