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SAP Purchasing and Inventory Guide

The document discusses the key steps and concepts in the SAP ECC procurement process, including purchase requisitions, requests for quotation, contracts, scheduling agreements, purchase orders, goods receipt, goods issue, invoice verification, and external services management. It provides definitions and transaction codes for each step to explain how materials are procured and received in the SAP ECC system from the initial request through invoice payment. The overall process involves requesting, sourcing, ordering, receiving, and paying for both goods and external services.

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162 views5 pages

SAP Purchasing and Inventory Guide

The document discusses the key steps and concepts in the SAP ECC procurement process, including purchase requisitions, requests for quotation, contracts, scheduling agreements, purchase orders, goods receipt, goods issue, invoice verification, and external services management. It provides definitions and transaction codes for each step to explain how materials are procured and received in the SAP ECC system from the initial request through invoice payment. The overall process involves requesting, sourcing, ordering, receiving, and paying for both goods and external services.

Uploaded by

KaRaN ChAnDrA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SAP - ECC

System Application and Products in Data Processing

Purchase Requisition:
Defn: It’s request generated from Purchasing department (Ex:Plant and Storage
Location) related for the required Material, Quantity to be Purchased from which
Vendor

Step1: Define Number Ranges T’Code: [OMH7]

Path: Display IMG -> Material Management -> Purchasing -> Purchase
Requisition -> Define Number Ranges [Execute]
RFQ[Request for Quotation]/Quotation:
Defn: It’s request generated from Client towards Vendors related
required Material, Quantity, Quality and Price to be delivered based on
Purchase Requisition.
Path: Display IMG -> Materials Management -> Purchasing ->
RFQ/Quotation [Execute]

Contract :
Defn: It’s an agreement between Two Parties (like Client and Vendor)
to full fill Certain Thing, Certain Value, Certain Period and Certain
Service
@ Types of Contract:
(i) Quantity Contract
(ii) Quality Contract
(iii) Value Contract
(iv) Service Contract
(v) Group Master Contract (It’s a
Combination of all the above Contract’s)

Scheduling Agreement :
Defn: It’s an agreement between Vendor and Client to full fill Certain
Things for the Future Purpose like Material, Quantity...etc.,

Physical Inventory:
Defn: Physical Inventory is the Process of determining the
Stock by verifying or comparing with the requirement, where
stock must show equal quantity as per the requirement.
Purchase Order:
Defn: It’s a Confirmation message from Client to Vendor regarding
requirement of Material, Quantity and Price based on Quotation send by
the Vendor.
Purchase Order can be generated based on Two ways
(I) With Reference of Purchase Requisition,
RFQ/Quotation or existing Purchase Orders
(II) Without Reference of any Previous Orders

Release Procedure: It’s set of Procedure to be followed before


releasing the Orders.
Release Procedure is applicable for the following business scenario’s:
(i) Purchase Requisition
(ii) RFQ/Quotation
(iii) Purchase Order
(iv) Contract
(v) Scheduling Agreement
(vi) External Service
Management

Standard Release Procedure contains certain set of Conditions:


(a) Edit Characteristics
(b) Edit Class
(c) Release Procedure
(d) Check Release Strategies
Goods Receipt:

Defn: Goods Receipt is generated based Purchase order, Which contain


Ordered Material, Quantity, Quality and Price.

Note: Movement Type

Moving the Goods from One location to another Location based on


requirement
Ex: (i) Plant to Plant
(ii) Plant to Storage Location
(iii) Storage Location to Storage Location
(iv) Storage Location to Shipping Point
(v) Shipping to Shipping Point.....etc.,
Ex: 101 – GR, 102 – Reversal of GR,714 – GR for Quality diff,
521 - 331 - GI

Goods Issue/Transfor Postings:


Defn: Transferring the goods to related Plant/Storage Location
from which the Purchase requisition has been generated.
Movement Type:231 – GI for Sales order

Logistics Invoice Verification:


Defn: Verifying the Invoice by Comparison with Purchase Order
and Goods Receipt to confirm and send it for Finance Department for
Payment

External Services Management:


Defn: Special Settings are made to complete the Procurement Process of
Client goes for the Third party Service or External Service is Called
External Services Management

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