Procurement Processes and Master Data

Headline
SIMPRE –Verdana
SAP MMBold
Procurement Processes
Master Data
Nicolae Calota, Deloitte ERDC Bucharest
November, 2018
Overview of SAP as an ERP
Enterprise Resource Planning and its benefits
Definition
•Commercial software packages that promise the seamless integration of all information flowing through the company
– financial, accounting, human resources, supply chain and customer satisfaction (T.J. Davenport, 1988).
•ERP systems provide information management and analysis to organizations
Benefits
•Online/real time information throughout all the functional areas of an organization
•Data standardization and accuracy across the enterprise
•“best-practices” included in the applications
•The efficiency they force an organization to undertake
•The analysis and reporting that can be used for long term planning
Deloitte ERDC Bucharest Procurement Processes & Master Data 2

SAP as an ERP
• SAP
 Stands for “Systems, Applications and Products in Data Processing”
 Is a company founded in 1972 by five former IBM engineers
 SAP’s architecture is based on “3-tier” client-server technology (presentation server, application server and database
server)
• ABAP
 Stands for “Advanced Business Application Programming” language
 Is the proprietary programming language in which the SAP product is programmed and customization done

SAP as an ERP

SAP as an ERP
• SAP has categorized basic business processes in a basic organization.

• The “building blocks” of processes are called “modules”

Evolution of SAP products
• Cross industry solutions and industry solutions

Preface
Course Objectives
At the end of this course, you will have a clear understanding of the following principles:
SAP Standard Procurement Processes
Documents used in SAP Standard Procurement Processes
Master Data used in SAP Standard Procurement Processes

Agenda
Topic Content Person responsible Timing
Procurement Processes • Defining Procurement Processes Nicolae Calota 18:00 – 19:20

• Organizational levels
Maintaining Purchase Orders • Purchase Order Details Nicolae Calota 18:00 – 19:20
• Purchase Order Maintenance
Posting Goods Receipt • Goods Receipt in Procurement Nicolae Calota 18:00 – 19:20
• Goods Receipt Details
Entering Invoices • Invoice Receipt Nicolae Calota 18:00 – 19:20

• Invoice Entry
Break
Maintaining Vendor Master Records • Master Data in Procurement Processes Nicolae Calota 19:30 – 20:50
• Vendor Master Data
Maintaining Material Master Records • Material Master Record Nicolae Calota 19:30 – 20:50
• Material Master Record Creation
• Purchasing Info Record


Defining Procurement Processes
In SAP MM we have the below processes, as part of SAP Standard System Setup:
External Procurement Process
Stock Transfer with Stock Transport Orders
Subcontracting
Vendor Consignment

External Procurement Process

Stock Transfer with Stock Transport Orders

Subcontracting

Vendor Consignment

Organizational Levels
• A unit within an SAP System that is self-contained both in legal and organizational terms
• It s the highest hierarchical level in the SAP System and is uniquely defined by a 3 digit numeric
Client key
• For example, the client could represent a Corporate Group
• A company code represents an independent unit that produces its own financial statements
• It tracks the entry of all events that require posting to the accounts, and creates a complete audit
Company Code trail for balance sheets and profit and loss statements
• It is defined in the system by means of a 4 character alphanumeric key that is unique in the client
• It is an organizational unit within logistics that subdivides an enterprise from the viewpoints of
production, procurement, plant maintenance, and materials planning
Plant • The enterprise structure is created by assigning organizational units to each other.
• It is defined in the system by a four-character alphanumeric key that is unique to it in the client
• It is an organizational unit that facilitates the differentiation of stocks of materials within a plant
• Inventory management on a quantity basis is carried out in the plant at the storage location level
Storage Location
• It is defined by a unique 4 character alphanumeric key
• The purchasing group is a key organizational unit for a buyer, or group of buyers, responsible for
certain purchasing activities
Purchasing Organization and
Purchasing Group • A purchasing organization is an organizational unit within logistics that subdivides the enterprise
according to the purchasing requirements.

Example of Organizational Structure

Purchasing Organization categories
Plant-specific purchasing organization
Cross-plant purchasing organization
Cross-company code purchasing organization

Plant-Specific Purchasing Organization

Cross-Plant Purchasing Organization

Cross-Company-Code Purchasing Organization

Maintaining Purchase Orders

Purchase Order Details



Purchase Order Maintenance



Posting Goods Receipt

Goods Receipt in Procurement

Goods Receipt in Procurement
Usual checks performed at the time of delivery:
• Was the right material delivered?
• Was the right quantity delivered?
• Are the perishable goods (if any) within their minimum

shelf life? (shelf-life expiration-date check must be
activated)

Goods Receipt Details

Goods Receipt Details

Entering Invoices

Entering Invoices
Invoice Receipt

Entering Invoices
Invoice Receipt

Entering Invoices
Invoice Receipt

Entering Invoices
Invoice Entry

BREAK
Member firms and DTTL: Insert appropriate copyright Presentation title 38

[To edit, click View > Slide Master > Slide Master] [To edit, click View > Slide Master > Slide Master]
Master Data

Maintaining Vendor Master Records
Master Data in Procurement Processes

Master Data in Procurement Processes
• It includes information about the vendors of a company which is stored in individual vendor master
records
Vendor Master Record • The are 3 categories of vendor master data (General Data, Company Code Data, Purchasing Org
Data)
• It represents the company’s central source of material-specific data which is used in all areas of
logistics
Material Master Record • Data stored in the material master is required for: Purchasing, Inventory management, Accounting,
Materials Planning (MRP – Material Requirements Planning)
• It provides the option of storing vendor and material information as the master data at purchasing
organization and plant level
Purchasing Info Record • You can define: current and future prices, delivery data, vendor data, texts
• It has the highest priority in information determination for procurement process

Categories of Vendor Master Data

Vendor Master Data
• General data includes the vendor’s address, control data, bank details, communication, and contact
persons. Is valid for a single client
General Data • Valid for a single client
• Company code data is maintained at the company code level

• Company code data includes the number of the reconciliation account, correspondence, withholding
Company Code Data tax, and the payment methods for automatic payment transactions.
• Purchasing organization data is maintained for each purchasing organization

• Purchasing organization data includes the purchase order currency, Incoterms, partner roles,
Purchasing Org Data purchasing data, and various controls pertaining to the vendor

Vendor Master Data at Organizational Levels

Vendor Master Data – Account Group

Vendor Master Data – Reconciliation Account

Vendor Master Data – Partner Roles

Maintaining Material Master Records

Material Master Record

Material Master Record - Maintenance

Material Master Record – Organizational Levels

Material Master Record Creation

Material Master Record Creation – Material type

Material Master Record Creation – Industry Sector

Material Master Record Extension&Copy

Appendix

Q&A

Contact me
Submit your CVs in English @ ncalota@deloittece.com

Thank You!

Kahoot.it

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Headline

•ERP systems provide information management and analysis to organizations

•Online/real time information throughout all the functional areas of an organization

•Data standardization and accuracy across the enterprise

•“best-practices” included in the applications

•The efficiency they force an organization to undertake

Deloitte ERDC Bucharest Procurement Processes & Master Data 2

 Stands for “Systems, Applications and Products in Data Processing”

 Is a company founded in 1972 by five former IBM engineers

 Stands for “Advanced Business Application Programming” language

Deloitte ERDC Bucharest Procurement Processes & Master Data 3

Deloitte ERDC Bucharest Procurement Processes & Master Data 4

• SAP has categorized basic business processes in a basic organization.

Deloitte ERDC Bucharest Procurement Processes & Master Data 5

Deloitte ERDC Bucharest Procurement Processes & Master Data 6

SAP Standard Procurement Processes

Documents used in SAP Standard Procurement Processes

Master Data used in SAP Standard Procurement Processes

Deloitte ERDC Bucharest Procurement Processes & Master Data 7

Topic Content Person responsible Timing

Procurement Processes • Defining Procurement Processes Nicolae Calota 18:00 – 19:20

Entering Invoices • Invoice Receipt Nicolae Calota 18:00 – 19:20

Deloitte ERDC Bucharest Procurement Processes & Master Data 8

Deloitte ERDC Bucharest Procurement Processes & Master Data 9

External Procurement Process

Stock Transfer with Stock Transport Orders

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Plant-specific purchasing organization

Cross-plant purchasing organization

Cross-company code purchasing organization

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Usual checks performed at the time of delivery:

• Was the right material delivered?

• Was the right quantity delivered?

• Are the perishable goods (if any) within their minimum

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Member firms and DTTL: Insert appropriate copyright Presentation title 38

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