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Prepared by :-

Ravindra S. PujariRoll no 2012123

Various Technology To Better

Material Management

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Describe the basic business process of Procuring Materialsand Services in the SAP R/3 System.

Discuss the integration points in procurement to Financial

Accounting and Inventory management.

Discuss the reporting and analysis tools used in the

procurement cycle.

Discuss the Companys procurement process.

Communicate scope expectations.

Procurement Cycle Workshop- Objectives

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The primary SAP R/3application modules thatsupport the Procurementprocess include:

Materials Management Purchasing

Goods Receipts

Invoice verification

Financial Accounting

Payment processing

Materials Valuation

Procurement

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MM

MM is a component of Logistics in SAP that focuses on

inventory management, warehouse management, vendors and

purchases.

MATERIALS MANAGEMENT

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MM OVERVIEW

Material Planning

Production

Internal Procurement

Purchasing

External Procurement

Invoice

verification

Invoice

entry

Inventory management

Goode

Receipts

Goods issue

stock transfer

Storage Area

Management

MMMASTER DATA

1. Materials

2. Batches

3. Vendors

4. Purchasing

info record5. Sources list

Financial Accounting Sales

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PROCUREMENT

ORGANIZATIONAL AND MASTER DATA

BUSINESS PROCESS FOR PROCUREMENT

REPORTING AND ANALYSIS

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The SAP R/3 Procurement business process uses the following R/3

organizational elements:

ORGANIZATIONAL ELEMENTS

CompanyCode

PlantStorage

Location

Purchasing

OrganizationPurchasing Group

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Material Master

Vendor Master

The following master data is used in theProcurement cycle:

MASTER DATA

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MASTER DATA: MATERIAL

MASTER

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. The vendor masterincludes all data necessary for processing

business transactions and corresponding with vendors.

. Information is shared between the accounting and purchasing

departments.

. Data is grouped into three categories.

MASTER DATA: VENDOR MASTER

1. GENERAL DATA2. ACCOUNTING DATA

3. PURCHASING DATA

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PROCUREMENT

ORGANIZATIONAL AND MASTER DATA

BUSINESS PROCESS FOR PROCUREMENT

REPORTING AND ANALYSIS

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PROCUREMENT ENVIRONMENT

1. Requirement

determination

2. Source

Determination

3. Vendor

Selection

4. OrderProcessing

5. OrderFollow-up

6.Goods receipt

& inventorymanagement

7. Invoice

verification

8. Money

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THE PROCUREMENT PROCESS

Purchase

Requisitions forgoods/ Services

Purchase Order Goods ReceiptInvoice

Processing

PLANNING, REPORTING, AND ANALYSIS

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PROCUREMENT

ORGANIZATIONAL AND MASTER DATA

BUSINESS PROCESS FOR PROCUREMENT

REPORTING AND ANALYSIS

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A. Standard Reporting provides list display by :

1. vendor

2. Material

3. Account assignment

4. Material group5. Purchase order number

B. General Analysis

C. Order value Analysis

D. Inventory Transaction Analysis

REPORTING

ANALYSIS

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ANY QUESTION

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