procurement cycle
DESCRIPTION
proTRANSCRIPT
![Page 1: Procurement Cycle](https://reader036.vdocuments.us/reader036/viewer/2022082616/5695d00c1a28ab9b0290b932/html5/thumbnails/1.jpg)
7/21/2019 Procurement Cycle
http://slidepdf.com/reader/full/procurement-cycle-56d9e838c5644 1/2
PROCUREMENT CYCLEThis is the back bone of SAP MM, everything will be moving around this only. Let's see the
rocurement cycle in brief !
1. Determination of requirements - The user deartment resonsible can manually ass a
re"uirement for materials to the Purchasing deartment via a urchase re"uisition. #f you have set
a M$P rocedure for a material in the material master, the $%& System automatically generates a
urchase re"uisition.
2. Determination of the source of supply - The $%& System hels the buyer determine ossible
sources of suly. ou can use determination of the source of suly to create re"uests for
"uotation ($)*s+ and then enter the "uotations. ou can also access eisting urchase orders and
conditions in the system.
3. Vendor selection - The system simlifies the selection of vendors by making rice comarisons
between the various "uotations. #t automatically sends re-ection letters.
4. Purchase order processing - The system facilitates data entry by roviding entry aids when you
are entering urchase orders.
5. Purchase order monitoring - The buyer can monitor the rocessing status of the urchase order
online at any time and can determine whether goods or an invoice have been received for the
relevant urchase order item. The system also suorts reminder rocedures.
6. oods receipt - The system comares the goods receit "uantity with the urchase order "uantity.
!. "n#oice #erification - endor invoices are checked for accuracy of rices and contents.
$. Payment processing - )inancial Accounting normally deals with vendor ayments.
![Page 2: Procurement Cycle](https://reader036.vdocuments.us/reader036/viewer/2022082616/5695d00c1a28ab9b0290b932/html5/thumbnails/2.jpg)
7/21/2019 Procurement Cycle
http://slidepdf.com/reader/full/procurement-cycle-56d9e838c5644 2/2