Download - Procurement process
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IntroductionEvery organization acquires material or
services to complete its business needs. The process of buying materials and obtaining services from vendors or dealers is procurement.
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Purchasing DocumentPurchasing Document is used for purchasing
for materials and service
Every purchase document consist of Header data, Item overview & Item Details
Internal Documents
External Documents
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Procure to Pay
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Determination of Requirements
The Material requirements are identified by the user departments.
Automatic through MRPTcode-ME51NStandard Doc Type: NB
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Purchase Requisition
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Source DeterminationIdentify the source of
supply
Based on past orders and existing longer-term purchase agreements.
Purchase info record
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Vendor SelectionVendor selection is
mainly Based on Price and Quality
Local vendor
Foreign Vendor
One-time vendor
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PO Processing & MonitoringPurchase order is a
formal request to vendor to supply certain goods under the standard condition
Sending the reminders to vendors in a pre defined intervals.
T-Code: ME21N
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PO in SAP MM
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Goods ReceiptGoods Receipt into
warehouse
Stock update
Creation of material Document
Creation of accounting document
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Invoice VerificationVendor invoices are
checked for accuracy of process and contents.
PO based invoice Verification
GR-Based invoice verification
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