PURCHASING

USING SAP
@XLRI

G R O U P 6 , A A D I S H | A N I R U D H | R I C H A | S H I VA M
B16001 | B16009 | B16039 | B16167
 PURCHASING STRUCTURES
Centralised Purchasing Decentralised Purchasing

Corporate group Company specific Plant specific

wide purchasing purchasing purchasing

Purchasing Purchasing
Purchasing
Org. Org. 1 Org. 2
Purchasing
Org.
Plant 1 Plant 2 Plant 3 Plant 4
Plant 1 Plant 2 Plant 1 Plant 2

Company 1 Company 2
Company 1 Company 2
Plant1
ORGANIZATION STRUCTURE @ XLRI
CLIENT
Xavier’s Institute

COMPANY
XLRI (1000) XIMB (2000) XISS (3000) XIMR (4000)

PLANT JAMSHEDPUR
DELHI (1002) MUMBAI (1003)
(1001)

PURCHASING STORAGE
ORG. LOCATION PURCHASING
ORG. (1001)

PURCHASING IT STUDENT
LIBRARY ADMIN HOUSEKEEPING
GROUP DEPARTMENT AFFAIRS
 PURCHASING PROCESS
Determination of
requirements
06 Invoice verification
Invoices are checked
01 Purchase requisition is
created in SAP either
and match for quantity by proper MRP and
and price against the demand based
PO & GR data approach or manually

Source
05 Goods receiving and IM
Confirmation of receipt of
02 Determination
Potential sources of
goods is done against the PO supply are identified
with permissible tolerance based and RFQS are
sent

04 Purchase order processing

PO’s are either created
03
automatically or manually
along with vendor scheduling
agreements and contracts
Vendor Selection
Pricing scenario are
simulated to compare
quotations
MASTER DATA & DOCUMENTS FOR
PURCHASING
01 Request For Quotation
01 Vendor Master

02 Quotation

02 Material Master
03 Purchase Order

Purchasing Master 04 Contract

03 • Source List
• Quota Arrangement
05 Scheduling Agreement
 PHASES OF PROJECT LIFECYCLE Stabilization
Cut-Over Work
Preparation performed
Business
System Acceptance Final business post the
Integration Testing and system goes
Design & Testing Acceptance, technology “live” and is
Construction training and oriented the longest
Perform
Matching & Conduct integrated operating checks step
Prototyping review and testing and procedures
Project Initiation document all sign-off
Mapping firms give “rollout
Designing and business to configuration system” as the
staffing SAP and and output Step 07
implementatio finding gaps in programming
n team working the same work
Step 06
with specific Step 05
objectives and
scope. Step 04
Step 03
Step 02
Step 01
 PROJECT LIFECYCLE Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12
Project Initiation
Scope Analysis
Resource Estimation
Implementation Strategy
Methodology
Matching & Prototyping
Work Estimates
Gather Business Requirements
Complete Blueprint document
Prepare Change Management
Design & Construction
Customization
Validate Business Processes
Plan cutover
System Integration Testing
Unit Tesing
Functional testing
Business Acceptance Testing
Transport Charges
Integration Testing
Defect Tracking
Complete Training Documentation
Cut-Over Preparation
Execute Cut-over
Stabilization
Quality Check
Publishing Project Documentation
Handing Off Operations
 BENEFITS OF USING SAP MM FOR
PURCHASING
Ad hoc procurement
PO approvals will be minimized or
eliminated Improved
communication &
Tracking of performance
Procurement of of vendors
consumables based
on inventory levels

Eliminate the business

Reduction in transactions carried out
maverick spends with mala fide intention

System Control on
buying prices
THANK
YOU