Procurement

Procurement Process Overview

Procurement in mySAP ERP covers not only traditional processes such as requisitioning,
purchase order management, and invoice verification, but also catalog-based sel-service
requisitioning for maintenance, repair, and operations (MRO) materials and services.
The basic Procurement (or Purchase to pay) cycle for a service or material consist or the
following phases :

Determination of Requirements
Material requirements are identified either in the user departements or via materials
planning and control.

Source Determination
SAP ERP helps you indentify potential sources of supply based on past orders and
existing longer-term purchase agreement.

Vendor Selection and Comparison of Quotations

The system capable of simulating pricing scenarios, allowing you to compare a number of
different quotations

Purchase Order Creation

The purchase order adopts information from the requisition and the quotation to help you
create a purchase order

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.
Good Receiving and Inventory Management
Goods receiving personnel can confirm the receipt of goods simply by entering the
purchase order number.

Invoice Verification
The system supports the checking and matching of invoices

Purchase Orders
A purchase order is a formal request to a vendor to supply certain goods or services under
the stated conditions

Sel-Service Procurement
Procurement allows employees to create and manage their own requisitions.

Inventory Management
Posting a goods receipt to stock with reference to a purchase order has a number of
advantages for you.

Invoice Verification
The procurement process is concluded by the invoice verification process, during which
invoices and credit memos are entered and the contents and prices are checked fo accuracy.

Messages
You can issue all purchasing documents as messages. Each time you create an RFQ,
purchase order, contract, or scheduling agreement, the system can create a message from
the document affected

Sales Order Management

mySAP ERP provides superior insight into sales back office processes, inquiries,
quotations, order generation, contract, and billing cycle management. The Sales Order
Processing scenario describe the complete process, starting with pre-sales activities, moving
to the creation of the sales order, continuing with the sales order fulfillment, and ending
with the invoicing of the sales order and the parallel process of the creation of the posting
in financial accounting.
The basic sales order processing cycle for a service or material consists of the following
phases :

 Pre-Sales Activities
 Sales Order Creation and Availability Check
 Delivery and Goods Issue
 Billing
 Sales Order
 Delivery
 Shipping Functions
 Range of functions
 Picking the Delivery
 Picking Functions

Production
With support for all manufacturing strategies for businesses in the discrete process and
consumer products industries , mySAP ERP helps enterprises manage the full range of
manufacturing activities, form planing to execution and analysis, in a single, end-to-end
system.

Planing Process Overview

multiple forecasting models and strategies can assist you in making the best choice. Models
are selected through the system using built-in intelligence, while mySAP ERP continuously
 checks the validity of the model. The overall manufacturing planning and execution process
is as follows :

 Sales and Operations Planning (SOP)

 Demand Management
 Master Production Scheduling (MPS)
 Materials Requirements Planning (MRP)
 Manufacturing Execution
 Order Settlement

Order Confirmation and Goods Receipt

You confirm production order operations to deliver feedback to sales order processing and
shop floor planning. Completion confirmation collect important data, such as quantities
produced, scrap, production times , and completion dates.

Completion Confirmations
The following types of completion confirmations are possible :

 Milestone completion confirmations

 Standard completion confirmations
 Normal competion confirmations
 Collective completion confirmations
 Completion confirmations at order header level
 Goods Receipt

Settlement
Order settlement for a production order means clearing the differences between the actual
costs incurred and the credits that the order received froom goods receipts.You can analyze
production costs at product level, for example, with the online variance reports. You can
interactively analyze the variances and use a drilldown technique to display individual cost
allocations.