Procurement Process - Business Processes - Lecture Slides, Slides of Business Policy and Regulation

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The Procurement

Process

Introduction

 The procurement process involves purchasing

goods

 These goods might be used

 for resale

 in a manufacturing process

 as packaging

Materials Management Tasks

 Vendor management

 Purchasing

 Physical Inventory

 Inventory management

 Inventory valuation

 Materials Management (MM)

 MRP

 Product catalogs

Vendors (Introduction)

 Vendors sell goods to us

 Some information is pertinent to the company

 Some applies only to a particular purchasing

organization

 Vendor information is divided into three

categories

 General data (applicable to the client)

 Company code (accounting) data

 Purchasing data

Vendor Data (Taxonomy)

 Company code (LFB1)

 Client / Account number / Company code keys

 Reconciliation and bank account information

(accounting segment)

 Link to GL recon account (AKONT)

Vendor Data (Taxonomy)

 Purchasing organization (LFM1)

 Client / Account number / Purchasing

Organization keys

 Sales person name

 Currency of purchase order

Organizational Structure (1)

 Purchasing Organization (PO)

 An organizational unit in logistics

 Manages the buying activity for a plant

 Procures services and materials

 A purchasing organization can be responsible for

many plants

 Purchasing group

 Group of buyers within a PO responsible for

certain activities

Organizational Structure (2)

 Purchasing can be centralized or

decentralized

 Centralized (one purchasing organization for

many plants)

 Decentralized (many purchasing organizations)

 Global bikes has a hybrid purchasing

organization

 Global / US / DE

Purchasing Organizations

(GBI)

Organizational Structure

(Plants)

 In plants, we make things or store things

 A plant has a purchasing organization assigned

to it

 Client

 Company Code

 Plant (Table T001W)

 Storage Location (Table T001L)

Storage Location Table T001L

GBI Organizational Structure

Material Master Data

 Everything our company needs to know about

the material

 Data is stored in functional segments called

views

 Basic data

 Sales

 Materials Management

 Accounting

 MRP

Material Views