Procurement process

[Former Member]

Hello

Try to give the information about procurement steps wit hcase studies.

like

procuring from local vendor (inner state) ,

Out of state (in side of coutery) ,

Import purchase .

what are the taxes will come in the above cases . Give the clear steps of the above cases.

Regards

gopal

[Former Member]

Hi,

Procurement process is as follows

MM flow (Material management flow)

1. Material requisition: Production dept to stores – called internals

If the material not available, stores department raises Requisiton forr material..

2. Purchase requisition – stores to purchase dept

3. Purchase dept call for enquiry, quotations & price comparisons

4. Raising the purchase order by purchase dept

Purchase order contains  Vendor, Material, plant, quality, rate, delivery terms and payment terms

5. Release procedure – Work flow

Up to 10000  Manager Purchases

6. Goods receipt  (G.R)

G.R should be against purchase

Inventory Raw material local Dr – Balance sheet current asset – BSX To GR/IR clearing raw material local – Balance sheet current Liabilities – WRX

7. Invoice verification  Verification against GR (or)/Purchase orders

GR/IR clearing Raw material Dr – Balance current Liabilities – WRX

To party – Sundry creditors – Balance sheet current liabilities – Feam po

8. Consumption:

Raw material consumption local Dr – P&L debit – GBBVBR

To Inventory raw material local – B/S current assets - BSX

refer

help.sap.com/bp_hightechv1500/HighTech_JP/documentation/General/HT_Solution_Scope.doc

help.sap.com/bp_afsv1500/CP_AFS_DE/documentation/AFS_Solution_Scope_EN_DE.doc

www.sap.info/.../INT/int/index/PrintEdition-78313c678e2476d97-int/0/comvArticleContainer-198983c63c5...

Regards

[Former Member]

Hi

See the following and check the links .it will be useful

for more details refer MM functional forum

PR >Release the PR>RFQ>Quotation>Quotation Comparison>PO>Release the PO>GR>Invoice Verification

MM Process flow:

Process Flow

The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements

Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.

2. Source Determination

The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management (GR)

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered goods.

7. Invoice Verification (IV)

The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.

Pur info record is nothing but a master data like thing which will be maintained for different materials to determine the prices etc.It Specifies the number that uniquely identifies a record.

For Example: an info record is based on Plant Vendor and Material

Based on these three the Material Prices will be calculated

for different combinations different values are taken into consideration.

During pricing it brings these values automatically based on this info record.

Use ME11 Tcode to create this record.

Common Tables used by SAP MM

Below are few important Common Tables used in Materials Management Modules:

EINA Purchasing Info Record- General Data

EINE Purchasing Info Record- Purchasing Organization Data

MAKT Material Descriptions

MARA General Material Data

MARC Plant Data for Material

MARD Storage Location Data for Material

MAST Material to BOM Link

MBEW Material Valuation

MKPF Header- Material Document

MSEG Document Segment- Material

MVER Material Consumption

MVKE Sales Data for materials

RKPF Document Header- Reservation

T023 Mat. groups

T024 Purchasing Groups

T156 Movement Type

T157H Help Texts for Movement Types

MOFF Lists what views have not been created

A501 Plant/Material

EBAN Purchase Requisition

EBKN Purchase Requisition Account Assignment

EKAB Release Documentation

EKBE History per Purchasing Document

EKET Scheduling Agreement Schedule Lines

EKKN Account Assignment in Purchasing Document

EKKO Purchasing Document Header

EKPO Purchasing Document Item

IKPF Header- Physical Inventory Document

ISEG Physical Inventory Document Items

LFA1 Vendor Master (General section)

LFB1 Vendor Master (Company Code)

NRIV Number range intervals

RESB Reservation/dependent requirements

T161T Texts for Purchasing Document Types

Tcodes:

RFQ to Vendor - ME41

Raising Quotation - ME47

Comparison of Price - ME49

Creation of PO - ME21N

Goods Receipt - MIGO

Invoice (Bill PAssing) - MIRO

Goods Issue - MB1A

Physical Inventory - MI01( Create doc)

MI04 (Enter Count)

MI07 (Post)

http://www.sapgenie.com/abap/tables_mm.htm

http://www.sap-img.com/sap-download/sap-tables.zip

http://www.allsaplinks.com/material_management.html

http://www.training-classes.com/course_hierarchy/courses/2614_SAP_R_3_MM_Invoice_Verification_-_Rel_...

http://www.sapfriends.com/sapstuff.html

check this out

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PSMAT/PSMAT.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CAARCMM/CAARCMM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MYSAP/SR_MM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LOMDMM/LOMDMM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/BCBMTWFMMM/BCBMTWFMMM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMIVMVAL/MMIVMVAL.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMWMLVS/MMWMLVS.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMISVE/MMISVE.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PSMAT/PSMAT.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CAARCMM/CAARCMM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MYSAP/SR_MM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MYSAP/SR_MM.pdf

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Regards

Anji