Mhkjhkjhkhkhkjhkjhkhkhjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj
Jjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjk
Procurement 4 and Payment Process
Procurement process
Procurement process – the organization acquires the basic materials that it uses to produce goods and services.
MM Menu Options in the SAP System
Procurement Process
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
Procurement Process - Steps
1. Determination of requirements (Requisitions) – By user - The user department responsible can pass a requirement for materials to the Purchasing department manually, via a purchase requisition.
– By MRP - If you have set a MRP procedure for a material in the material master, then MRP will automatically generate a purchase requisition.
2. Approve requisition – purchase requisition created has to be approved by the relevant authorities.
Create Purchase Requisition
Enter the valuation Price and click enter
Purchase Requisitions
Manual – users Automatic – MRP
Supply Chain Management
Supplier Relationship Management
Determination of requirements
Determination of source of supply
Procurement Process (cont..)
3. Determination of the source of supply – Source identification - ERP supports the buyer responsible in many different ways when determining sources of supply. Source can be from internal (eg. subsidiary, factory) or external (eg. vendor).
– RFQ – A pre-qualification and bid list may be prepared.
You can use determination of the source of supply to create requests for quotation (RFQs) to qualified list of vendors. Quotations received are then entered into the system.
RFQ Process
Create Request for Quotation
RFQ is created
Converting a Purchase Requisition to a Purchase Order
The Purchasing system adopts information from the requisition and the quotation to create a purchase order.
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
Procurement Process (cont..)
4. Vendor selection - The system supports you during vendor selection by : –
Procurement process
Procurement process – the organization acquires the basic materials that it uses to produce goods and services.
MM Menu Options in the SAP System
Procurement Process
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
Procurement Process - Steps
1. Determination of requirements (Requisitions) – By user - The user department responsible can pass a requirement for materials to the Purchasing department manually, via a purchase requisition.
– By MRP - If you have set a MRP procedure for a material in the material master, then MRP will automatically generate a purchase requisition.
2. Approve requisition – purchase requisition created has to be approved by the relevant authorities.
Create Purchase Requisition
Enter the valuation Price and click enter
Purchase Requisitions
Manual – users Automatic – MRP
Supply Chain Management
Supplier Relationship Management
Determination of requirements
Determination of source of supply
Procurement Process (cont..)
3. Determination of the source of supply – Source identification - ERP supports the buyer responsible in many different ways when determining sources of supply. Source can be from internal (eg. subsidiary, factory) or external (eg. vendor).
– RFQ – A pre-qualification and bid list may be prepared.
You can use determination of the source of supply to create requests for quotation (RFQs) to qualified list of vendors. Quotations received are then entered into the system.
RFQ Process
Create Request for Quotation
RFQ is created
Converting a Purchase Requisition to a Purchase Order
The Purchasing system adopts information from the requisition and the quotation to create a purchase order.
Magal and Word | Integrated Business Processes with ERP Systems | © 2011
Procurement Process (cont..)
4. Vendor selection - The system supports you during vendor selection by : –