UNIT 6 Source to Pay Processing

true or false in a cross-company code purchasing organization, purchasing organization is assigned to company code

false, purchasing organization is not assigned to anything, when you create a purchase order the system then asks you to enter the company code

Foreign Trade solution is not available on SAP S/4HANA because

global trade service (GTS) is the successor

purchasing requisition

internal document that the purchasing department uses to procure a material or service

documents that result from invoice verification

invoice document accounting document - vendor, GR/IR, input tax

major innovation for SAP S/4HANA MM

significant increase of transactional data put through for high volume transactions, especially goods movements.

material and accounting documents for goods movements are created

simultaneously

foreign trade is a part of

standard materials management (MM)

if plant belongs to your company but if external supplier

stock transport order purchase order

organizational unit that facilitates the differentiation of stocks of materials in a plant - inventory management is carried out at this level

storage location

price control standard

- fixed price inventory valuation - no parallel statistical moving average valuation - only dedicated business transactions change unit costs - increased transactional data throughput for goods movements

purchasing info record is divided into three organizational level (categories)

- general data (maintained at the client level) - purchasing org data (maintained at purch org level) - purchasing org & plant data (maintained at plant level)

the material ledger in S/4HANA aims for

- improved and more flexible valuation methods in multiple currencies & parallel accounting standards - simultaneously reducing required system resources and improving scalability of the business processes

text types in the purchasing info record

- internal info record memo internal comment (not printed) - PO text used to describe the PO item (printed)

results of GR in purchasing process

- inventory increased (stock material) - accounting document (FI) - updates purchase order history) if consumable: controlling document in CO material ledger document

enterprise structure in inventory management

- key of plant is unique to the client - plant can only belong to one company code

effects of GR to PO

- material document - accounting document - update PO history

in invoice verification you compare

- material document for GR - PO - supplier invoice

you can identify a material document by the

- material document number - fiscal year

stock material procurement

- must have a material master record - does not have account assignment category - no entries required for account assignment - stock account is determined automatically at GR

characteristics of consumable material with a master record

- no value based inventory management - system automatically updates consumption in the material master record

statistical moving average price

- option to deactivate - moves everytime there is a GR - when MAP updates to the table, it is locked.

you need to enter an account assignment object under the following circumstances

- order a material that is not subject to value-based inventory management (consumption) - if you order a service - if you order an item that does not have a material master record

results of automatic payment run

- posts payment documents - clears open items - prepares data for printing the payment media

you can use the data in the MM for these activities

- purchasing data for ordering purposes - inventory management data for posting goods movement and physical inventory management - accounting data for material valuation - materials planning data to plan your material requirements

you can maintain conditions while entering

- quotations - info records - outline agreements - purchase orders

SAP S/4HANA analytics

- real time operational reporting approach - functionality is designed for ultimate simplicity - concept based on Odata & open CDS

conditions (maintained in the vendor record)

- represent the elements such as gross price & discounts of a vendor price

SAP output management supports the following print technologies

- smart forms - adobe forms - adobe forms using fragments

SAP S/4HANA digital core

- system of record - handling all operational transactions for product planning, procurement, S&D

price control moving average

- unit costs of material inventory might be changed by any business transaction - transactional data throughput is limited by exclusive locking

stocks type you can use to post GR to warehouse

- unrestricted use - quality inspection - blocked stock

ways you can enter a purchase order in these ways

- w/o reference - prior PO - purchase requisition - quotation - contract

consumable material procurement

- with or without a material master record - has an account assignment category - account assignment manually - consumption account and account assignment object

Source to Pay Process Steps

1. Determination of Requirements 2. Determination of Source Supply 3. Vendor Selection 4. PO processing 5. PO monitoring 6. GR to PO 7. Invoice Verification 8. Payment Processing

process from purchase requisition

1. PurchReq (CO) 2. PO (CO) 3. GR (IM, FI, CO, WM, PO history, ML) 4. IR (FI, CO, PO history) 5. Payment (FI)

a purchase requisition can be created either

1. directly created manually in the department that has the need 2. indirectly created automatically by

organizational levels in the material master record

1. general data material number, language 2.plant data most purchasing data, MRP, quality management 3.storage location data storage bin description, picking area

the material ledger has two roles

1. inventory subledger in Accounting valuates materials inventories in multiple currencies and GAAPS in parallel 2. Actual Costing valuate material inventories, WIP, & COGS with weighted average cost units that are calculated after the fact

material valuation methods for a material

1. price control standard 2. price control moving average

automatic payment run

1. select payment method and bank 2. select items for payment 3. calculate payment amount 4. post payment document 5. create payment medium

accounting data is in the

FI vendor role at the company code level

movement type

- 3 character key to differentiate goods movements - automatic account determination - screen layout for entering data or updating quantity fields

two software services for international trade transactions

- Foreign Trade - Global Trade Services

a purchase requisition can be created automatically by

- MRP - maintenance order - production order - networks SAP ariba

reference document at invoice entry

- PO number - delivery note # - bill of lading number

you can convert purchase requisitions into

- RFQs - POs - outline agreements

effects of posting an invoice

- accounting document - provisions in GR/IR clearing account are neutralized - invoice document entered into PO history - open item in vendor reconciliation account - output tax account is updated

organization levels that support source-to-pay/procurement process

- client - company code - purchasing org & purchasing group - plant - sloc

uses of ariba network in procurement

- collaborate immediately with trading partners - transform paper into electronic transactions - catch and prevent potential errors

you can identify an accounting document by the

- company code - accounting document number - fiscal year

types of conditions in purchasing

- conditions in contract apply to all contract release orders created with reference to the contract - conditions in a purchasing info record apply to all the PO items containing the material and the vendor in the purch info record

SAP ariba

- connection to the business network - collaboration platform (allows all business partners to logon to a single system & exchange information - on boarding new partners

example of account assignment objects

- cost center - asset - project - production order - sales order

information found in the purchasing info record

- current and future prices and conditions - delivery data - vendor data - last PO number - internal comments and text from the purchase order

SAP output management supports the following channels

- email - printout - xml

intelligent spend management key themes

- embedded intelligence and insights through source to pay - connecting procurement to supply chain management and asset management - extending business processes beyond the 4 walls of an enterprise - managing all spend, all buying channels, all suppliers on a common end-to-end platform - connecting suppliers into supply chain planning, and maintenance operations

SAP integrated business planning

- extension of digital core into realm of planning - supports your SOP - bridge to the transactional world in S4 - short and long term demand planning - provides end to end visibility - provides alerting across all your internal & external planning & execution systems

SAP global trade service (GTS) is

an external service that can be installed on a separate instance

cross-plant purchasing organization

assign purchasing organization to the company code, & then assign all plants to that company code BUT, purchasing organization is NOT assigned to plant

material master in source-to-pay process

basic data is at the client level every other

advantage of new MM-IM data model

capability of of simple & fast reporting

business partner master data approach allows you to

centrally maintain the master data for customers and suppliers - single entry point to create, edit, and display master data for business partners , customers, and vendors

general data role in vendor master

client level

the smallest organizational unit of external accounting for which a self-contained bookkeeping system can be replicated

company code

structure of a purchase order

document header items

actual stock quantity data is calculated on the fly in which table?

new material document table, MATDOC

activation of actual costing is still

optional

bp categories

person organization group

organizational unit within logistics that subdivides an enterprise into production, procurement, and materials planning - system defined it in the client

plant

integration points

purchasing - update PO history QM(if active) - inspection lot - WM (if active - MM - update stock quantities - ML (if stock) - CO (consumable) clears commitments/post actual costs

key to represent a buyer or group of buyers responsible for certain purchase activities

purchasing group

organizational unit within logistics that subdivides the enterprise according to purchase requirements

purchasing organization

plant-specific purchasing organization

purchasing organization is assigned to one company code and one plant of the company code

stock overview

report that displays stock quantities, for the various stock types for a single material

the activation of the new lock behavior leads to

the deactivation of the statistical moving average

what is the vendor specific master data record

the purchasing info record

extending the material master

using the create material master transaction you can extend a material master record by adding - views - organizational levels