Ch 4 - The Procurement Process

What is a storage location?

A place within a plant where material are kept until needed.

What is a purchasing organization?

A unit within an enterprise that performs strategic activities related to purchasing for one or more plants.

What is a purchasing group?

An individual or a group of individuals who are responsible for purchasing activities for a material or group of materials.

What is an enterprise-level purchasing organization?

Cross-Company Code. Most centralized model. Only one purchasing organization for the overall enterprise.

What is a company-level purchasing organization?

Cross-plant. A single purchasing organization is responsible for multiple plants in one company code.

What are the three models of a purchasing organization?

Enterprise (Cross-Company Code) level, Company Code (Cross-Plant) level, and Plant (Specific) level.

What are the views of Vendor master data and what level is each defined at?

General Data (Client Level) Accounting Data (Company Code Level) Purchasing Data (Purchasing Organization)

What are the views of the Purchasing Info Record?

General Data and Purchasing Data

What are the 5 pieces of master data associated with procurement?

Vendor, Material, Conditions, Output, Purchasing Info Record

What are the steps in the procurement process?

1. Create Purchase Requisition 2. Select Source of Supply (if unknown) 3. Vendor Selection 4. Create Purchase Order 5. Purchase Order Monitoring 6. Goods Receipt 7. Invoice Verification 8. Payment

What are the views of the Material master data and what level is each defined at?

Basic Data (Client Level) Sales Data (Sales Level) Purchasing Data (Plant Level) Accounting Data (Plant Level)

What is a plant-level purchasing organization?

Plant-Specific. Most decentralized. Each plant has its own purchasing organization.

What are some views on the Conditions master data?

Price, Discounts, Taxes, Freight, etc. (These are not defined for a specific combination of vendor and material. They are based on over all agreements and contracts with vendors. Determines pricing for purchase orders.)

What are some examples of output in the procurement process?

Purchase Requisition, Purchase Order, Invoice, etc.

What is a Purchasing Organization?

The unit within an enterprise that performs strategic activities related to purchasing for one or more plants.