MM quizlet

Purch info record

- Allows buyers to quickly determine Which vendors have offered or supplied specific materials - Serves as default information for Purchase Orders

Materials master

- Contains all the information a company needs to manage about a material - It is used by most components within the SAP system - Material master data is stored in functional segments called Views

Vendor master data

- Contains all the necessary information needed to do business with an external supplier - Used and maintained primarily by the Purchasing and Accounting Departments - Every vendor MUST have a master record

Purch req created in 2 ways

- Directly (manually) - Indirectly (automatic)

What will dictate the use of the order and the process that the order will follow for the PO?

- Item category (procurement type) --> defined in PO

Purch req can come from (3)

- Planning (MRP) - Manually - Other

Vendor master views (3)

1. Client level 2. Company code data 3. Purchase org data

Purch group (2 responsibilities)

1. Internally responsible for procuring a material or a class of materials 2. Usually the principal channel for a company's dealings with its vendors

Types of plant facilities (4)

1. Manuf 2. distrib 3. purch 4. maintenence

Procure to pay process

1. Purch req 2. vendor select 3. purch order 4. notify vendor 5. vendor ship 6. goods receipt 7. invoice receipt 8. payment to vendor

Upon verification the:

1. Purchase Order is updated 2. Material Master is Updated (MAP) 3. Accounting Document is created

PTP process can be based on (3) factors

1. company procedures 2. product/service purch 3. others

Client level = general data (3)

Address Vendor Number Preferred Communication

Client

An independent environment in the system

Part 3 of 3 way match

An invoice is received from the vendor [third part of the 3-way match]

Storage location

An organizational unit allowing differentiation between the various stocks of a material in a plant

Info records contain (6)

Data on pricing and conditions Last purchase order Tolerance limits for deliveries Specific lead times Availability periods Vendor Evaluation data

If discrepancies arise between the purchase order or goods receipt and the invoice the system with generate a warning or an error

Depending on system configuration the difference could cause the system to Block the Invoice

Goods receipt: If materials are delivered against a Purchase Order we will reference that Order(5)

Determine if we got what we ordered System can purpose data for us from the PO - Material, quantity Purchase Order History is update with the receipt Updates Physical Inventory Updates Inventory G/L Account

Goods receipt

Goods movement in which we accept goods into our system

Purchase req definition

Internal Document instructing the purchasing department to request a specific good or service for a specified time

Indirectly

MRP Production Orders Maintenance Orders Sales Orders

Plant

Operating area or branch within a company

Elements of the pmt transaction (5)

Payment Method Bank from which they get paid Items to be Paid Calculate Payment Amount Print Payment Medium

Incoming Invoices are referenced against

Purchase Order to verify their content, prices, and arithmetic.

Purchase org data = Materials mgmt or "MM" (3)

Purchasing Currency Salesman's Name Vendor Partners

What is a Key that represents the buyer or group of buyers who are responsible for certain purchasing activities?

Purchasing Group

Company code data = Financial acctg (3)

Reconciliation Account Terms of Payment Bank Account

Purchase Orders can be created manually (4)

Reference a Purchase Order Reference a Purchase Requisition Reference a RFQ/Quotation Without Reference

Components that use material master (6)

Sales and Distribution Materials Management Production Plant Maintenance Accounting/Controlling Quality Management

Company code

Smallest org unit for which you can maintain a legal set of books

PO process (5)

Standard - stock or consumption Services Subcontracting Third-Party Consignment

Part two of the 3 way match

The goods are received (typically at the dock) and then put away [ part two of the three way match]

PMT to vendor process creates

a financial accounting document to record the transaction

After the tolerances/verification of the 3-way match are met...

a payment is made according to the terms agreed to on the purchase order.

When an invoice is saved it applies the liability from the Goods Receipt of our Purchase Order to...

a vendor

Goods usually received

at the dock

Purch order =

document to fill the need

Purch order def

formal request to a vendor for a specific material or service under the stated conditions

Purchasing group

is a group of buyers who are responsible for certain purchasing activities --> channel of communication for vendors

Purchasing org

is an organizational unit within logistics subdividing an enterprise according to the requirements of Purchasing. It procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

PMT to vendor manually =

payment program

Directly

person creating determines: what, how much, and when

PMT to vendor automatic =

post outgoing pmt

another name for MM process

procure to pay process

Purch order includes part one of the 3 way match** (5)

vendor, cost/price, quantity, terms and other pertinent information

Once the Invoice has been posted the

verification process is completed and the payment process is initiated within Financial Accounting