GBI Assignment
ar1000
Ch-04-02ProcurementProcess1.docm
Chapter 04, Exercise 04-02, Revised: 08/28/2012 Page of
Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Multi Company Code
Version 4
Rev: 08/28/2012
Introduction
General Notes and Information
It is strongly recommended that you read through the entire exercise prior to starting. Not all instructions can be provided in a linear manner.
The following symbols are used to indicate important information, as described below:
An arrow highlights an important instruction that must not be overlooked.
A pencil prompts you to write down an important piece of information.
Each student or group will be assigned a unique two-digit identifier. This identifier is used in all exercises to uniquely identify your data. Whenever you see ## in these exercises, replace it with your identifier.
Always work with your data.
Business Process Overview
The procurement process is used to purchase material from a vendor. This process can be used to purchase trading goods as well as raw materials.
In this exercise you will execute the procurement process to purchase the following trading goods: Elbow Pads, Road Helmets, Repair Kits, Off-road Helmets, and Knee Pads. You will be purchasing 50 of each of these goods from Olympic Protective Gear to be delivered to GBI’s Miami plant.
Exercise Prerequisites
See General Instructions Document
Exercise 4-1: Review Procurement Master Data
Exercise Workflow
Exercise Deliverables
Deliverables are consolidated into one worksheet at the end of this exercise. For this exercise you will need the following deliverables.
In the System:
Purchase Requisition
Purchase Order
Goods Receipt
Invoice Verification
Vendor Payment
On Paper:
Completed Exercise worksheet (attachment 1)
Answers to the Questions
You may be assigned additional deliverables. Make certain to check with your instructor.
Step 1: Create Purchase Requisition
In this step, the Purchase Requisition is created for internal purposes only. It is recommended that you keep several windows opened (to view inventory and vendor account balances). Refresh these windows each step of the procurement process to review the consequences of your actions.
Review material inventory
Refer to a previous exercise for instructions on how to review material inventory. Review the inventory of your elbow pads, road helmets, repair kits, off road helmets, and knee pads, and answer the following questions.
How many elbow pads are in inventory before the requisition:
How many road helmets are in inventory before the requisition:
How many repair kits are in inventory before the requisition:
How many off road helmets are in inventory before the requisition:
How many knee pads are in inventory before the requisition:
Review vendor account balance
Refer to a previous exercise for instructions on how to review account balances. Then, review the balance in your vendor’s account and answer the following question.
What is the balance in your vendor’s account before the requisition:
Navigate to the transaction to create a purchase requisition
Navigation
Logistics Materials Management Purchasing Purchase Requisition Create
What is the transaction code to Create Purchase Requisition:
What is the transaction code to Change Purchase Requisition:
What is the transaction code to Display Purchase Requisition:
In the “Create Purchase Requisition” screen, enter the following data:
|
Field Name |
Data Entry |
|
Document Type (shopping cart icon) |
Purchase Requisition (if not already defaulted) |
The screen is divided into three sections – header, item overview, and item. Clicking the icon next to each section will open or close the section. Open the sections as needed to complete the tasks below.
Open the Item Overview section, and enter the following data for the five items to be purchased:
|
Field Name |
Data Entry |
|
Material (one line item for each) |
Code for your Material Number(s) for the five trading good(s) to be purchased from your supplier. |
|
Quantity |
50 of each of your five materials, one per line |
|
Delivery Date |
One week from today |
|
Plant |
Code for your Miami Distribution Center |
|
Storage Location |
Code for your Trading Goods storage location |
|
Purchasing Group |
Code for your North America purchasing group |
|
Desired Vendor |
Code for your Olympic Protective Gear |
You may need to scroll right to see all fields.
What is the code for the trading goods storage location:
What is the code for the North America Purchasing Group:
(ENTER)
If you get a yellow warning message “Can delivery date be met?” press Enter for each item to confirm that it can.
(SAVE)
What is your Purchase Requisition Number?:
Review material inventory
Refer to a previous exercise for instructions on how to review material inventory. Review inventory of your trading goods, and answer the following questions.
How many of your elbow pads are in inventory after the requisition:
How many of your road helmets are in inventory after the requisition:
How many of your repair kits are in inventory after the requisition:
How many of your off road helmets are in inventory after the requisition:
How many of your knee pads are in inventory after the requisition:
Review vendor account balance
Refer to a previous exercise for instructions to review account balances. Then review the balance in your vendor’s account, and answer the following question.
What is the balance in your vendor’s account after the requisition:
Exercise Deliverables
In the System:
Purchase Requisition
On Paper:
Answers to the Questions
Step 2: Create Purchase Order
In this step, a Purchase Order is created from the Purchase Requisition and sent to the vendor.
Navigate to the transaction to create a purchase order:
Navigation
Logistics Materials Management Purchasing Purchase Order Create Vendor/ Supplying Plant Known
What is the transaction code to Create a Purchase Order:
What is the transaction code to Display a Purchase Order:
What is the transaction code to Change a Purchase Order:
You can close the window “Enjoy SAP: Purchase Order” (if it is open) so you can view more of the screen.
In the “Create Purchase Order” screen enter the following information:
|
Field Name |
Field Value |
|
Top Field (shopping cart icon) |
Standard PO (should be defaulted) |
|
Vendor Number |
Enter the code for your Olympic Protective Gear (box to the RIGHT of “Vendor” |
On the very left side of the screen, if you have the helpful “User Interface Help to Use Purchase Order”, you may (CLOSE) out of this for now.
Document Overview should be visible (open) on the left side of the screen. If it is not, then click on the “Document Overview On” button near the top left area of the screen to open it.
Within the Organization Data tab, make sure to enter your Purchasing Organization, your Purchasing Group, and your Company Code.
Click on “Selection Variant” (first icon to far left -- click and hold on the right side of icon).
Scroll down and select “My Purchase Requisitions.” Your purchase requisition number(s) should now appear in the document overview.
Highlight your purchase requisition (click on it ONCE ONLY), and click on (ADOPT) icon to the right of selection variant.
If you double click on the purchase requisition, the system will display the requisition. You are no longer in the application to create a purchase order. If this happens, you must exit back to the main menu and start at the beginning of this step.
The screen is divided into three sections – header, item overview, and item details. Clicking the icon next to each section will open or close the section. Open the sections as needed to complete the tasks below.
Once your Purchase Requisition is adopted, you may be prompted to enter your organizational levels (purchasing organization, purchasing group, and company in the header section). Provide the necessary values.
In addition, you may be prompted to provide the “Net Price” for each type of material ordered. To find this price, look in the “Moving Price” column from the table you created in Exercise 4-1. You can also find this value in the Accounting 1 view of the material master. It is easier to enter these data in the Item Overview section of the screen. Type in the price of each material, not the total ordered.
(ENTER)
The system may issue a warning message asking if the delivery date can be met as well as a warning about the delivery date not being a working day. You must acknowledge each warning by clicking “Enter” once for each line item.
What is the net value of the purchase order:
Hint: it is in the header – conditions
Click “Enter” or to validate the data on the screen. Correct errors, if any.
(SAVE)
If the system displays a message “Do you want to save document or process data?” then click Edit to see the messages. If all the messages are warnings (yellow), then select continue (Enter). Then Save it again, but this time when you get the message, select Save instead of Edit. If the messages are error messages, then you must correct the errors before saving the document.
What is your standard PO Number:
Review material inventory
Refer to a previous exercise for instructions on how to review material inventory. Review inventory of your trading goods, and answer the following questions.
How many of your elbow pads are in inventory after the PO:
How many of your road helmets are in inventory after the PO:
How many of your repair kits are in inventory after the PO:
How many of your off road helmets are in inventory after the PO:
How many of your knee pads are in inventory after the PO:
Review vendor account balance
Refer to a previous exercise for instructions on how to review account balances. Then, review the balance in your vendor’s account, and answer the following question.
What is the balance in your vendor’s account after the PO:
Exercise Deliverables
In the System:
Purchase Order
On Paper:
Answers to the Questions
Step 3: Receive Shipment from the Vendor
Navigate to the transaction to create a receive goods:
Navigation
Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known
What is the transaction code to receive the goods:
In the “Goods Receipt Purchase Order - Username” screen enter the following data:
|
Field Name |
Data Entry |
|
Next to Purchase Order |
Enter your Purchase Order number |
If you don’t remember your purchase order number, then you can search for it. Click on the search icon next to the field. The system defaults to the “purchase documents per asset” tab. Scroll through the tabs until you are on the “purchasing documents per vendor” tab and click on the tab. Enter your vendor number (or search for it!) and click enter. Your purchase orders for this vendor should be displayed. Select (double-click) the appropriate one (the one you created in the last step – it should be the one with the highest number). The PO number should now be populated in the goods receipt screen.
(ENTER)
The goods receipt document should be populated with relevant data from your purchase order.
|
Field Name |
Data Entry |
|
Quantity (Qty in UnE) |
The quantity from your Purchase Order (should be populated from your PO) |
|
Storage Location (Sloc) |
Enter the code for the trading goods storage location if required |
|
Movement Type |
Code for Goods Receipt for purchase order into warehouse/stores (should be defaulted) |
|
Stock Type |
Unrestricted use (should be defaulted) |
|
OK |
Check the boxes for each line item |
What does “Qty in UnE” refer to:
· (Hint: click on the column heading and click F1 for help)
What do the boxes in the OK column mean:
(Hint: click on the column heading and click F1 for help)
(ENTER)
(SAVE)
What is your goods movement document number:
Review material inventory
Refer to a previous exercise for instructions on how to review material inventory. Review inventory of your trading goods, and answer the following questions.
How many elbow pads are in inventory after receiving shipment:
How many road helmets are in inventory after receiving shipment:
How many repair kits are in inventory after receiving shipment:
How many off road helmets are in inventory after receiving shipment:
How many knee pads are in inventory after receiving shipment:
Review vendor account balance
Refer to a previous exercise for instructions on how to review account balances. Then review the balance in your vendor’s account, and answer the following question.
What is the balance in your vendor’s account after receiving shipment:
Exercise Deliverables
In the system:
Goods Receipt for Purchase Order
On Paper:
Answers to the Questions
Step 4: Receive an Invoice from the Vendor
You have received the following invoice from your vendor.
The total in this invoice should match the total value of your purchase order (refer to the step and question above).
If the total of your PO is different from the total in this invoice, then use the total of your PO in subsequent steps.
Figure 1
Navigate to the transaction to verify and record an invoice:
Navigation
Logistics Materials management Purchasing Purchase Order Follow-On Functions Logistics Invoice Verification
What is the transaction code to receive the invoice:
On the “Enter Incoming Invoice: Company Code US##” screen enter the following:
|
Field Name |
Data Entry |
|
Invoice Date |
Enter Today’s Date |
|
Posting Date |
Today’s date (should be defaulted) |
|
Amount |
Enter the amount of the invoice. The total in the invoice provided above should match the total value of your purchase order (refer to the appropriate step and question above. If the total of your PO is different from the total in this invoice, then use the total of your PO in subsequent steps. Don’t put in commas or dollar signs. |
In the field next to “Purchase order/scheduling agreement,” enter your Purchase Order number. If you do not remember your purchase order number, you can search for it.
(ENTER)
If you are asked to enter the “Payment Period Baseline Data” enter today’s date.
You should see data about each line item in your purchase order. Enter the following information:
|
Field Name |
Data Entry |
|
Tax Code |
XI (Input tax) |
|
Jurisdiction Code |
Code for Florida |
Scroll to the right to find these above fields.
Verify this information because it may already be entered by default.
Check the boxes in the column that has a check mark symbol, indicating that you have verified the items received as matching what is on the invoice.
(ENTER)
The traffic light in the top right corner, next to “balance,” should be green, and the amount should be zero.
(Hint: To answer the following four questions, simulate the invoice (click the icon).
What is the GL account number that is used for the debit posting:
What is the name of the GL account that is used for the debit posting:
What is the GL account number that is used for the credit posting:
What is the name of the GL account that is used for the credit posting:
click “Back” to return to the previous screen.
(SAVE)
What is your invoice number:
Review material inventory
Refer to a previous exercise for instructions on how to review material inventory. Review inventory of your trading goods and answer the following questions.
How many elbow pads are in inventory:
How many road helmets are in inventory:
How many repair kits are in inventory:
How many off road helmets are in inventory:
How many knee pads are in inventory:
Review vendor account balance
Refer to a previous exercise for instructions on how to review account balances. Then review the balance in your vendor’s account and answer the following question.
What is the balance in your vendor’s account after invoice receipt:
Exercise Deliverables
In the System:
Invoice Verification
On Paper:
· Answers to the Questions
Step 5: Pay the Vendor
Navigate to the transaction to record a vendor payment:
Navigation
Accounting Financial Accounting Accounts Payable Document Entry Outgoing Payment Post
What is the transaction code to pay your vendor:
On the “Post Outgoing Payments: Header Data:” screen enter the following:
|
Field Name |
Data Entry |
|
Document Date |
Enter Today’s Date |
|
Posting Date |
Today’s Date should be defaulted |
“Bank Data” section:
|
Field Name |
Data Entry |
|
Account |
Search for and enter the account number for GBI’s Bank Account (not the alternate bank account) When searching, be sure to search within the chart of account GL##. |
|
Amount |
Enter the amount owed to this vendor. This is the amount of the invoice created in the previous step. |
What is the account number for GBI’s Bank Account:
“Open Item Selection” section:
|
Field Name |
Data Entry |
|
Account |
Enter the number of the your Vendor |
|
Account Type |
K (Vendors) should be defaulted |
Click the “Process open items” icon button (This will show you the unpaid invoices from the vendor).
In the bottom right part of the screen, the “amount entered” should equal the “assigned” amount. The “not assigned” amount should be zero.
If “not assigned” is not 0.00, then double click on $$ amount under the USD Gross column. If there is more than one open invoice listed, then select (double click) the one(s) that add up to the amount of the payment.
(SAVE)
What is your document number for posting payment:
Review material inventory
Refer to a previous exercise for instructions on how to review material inventory. Review inventory of your trading goods and answer the following questions.
How many elbow pads are in inventory after payment:
How many road helmets are in inventory after payment:
How many repair kits are in inventory after payment:
How many off road helmets are in inventory after payment:
How many knee pads are in inventory after payment:
Review vendor account balance
Refer to a previous exercise for instructions on how to review account balances. Then, review the balance in your vendor’s account, and answer the following question.
What is the balance in your vendor’s account after payment:
Exercise Deliverables
In the system:
Posted outgoing payment
On Paper:
Answers to the Questions
Attachment 1: Exercise Worksheet
Name(s):
Course & Section:
Identifier:
Client:
How many elbow pads are in inventory before the requisition:
How many road helmets are in inventory before the requisition:
How many repair kits are in inventory before the requisition:
How many off road helmets are in inventory before the requisition:
How many knee pads are in inventory before the requisition:
What is the balance in your vendor’s account before the requisition:
What is the transaction code to Create Purchase Requisition:
What is the transaction code to Change Purchase Requisition:
What is the transaction code to Display Purchase Requisition:
What is the code for the trading goods storage location:
What is the code the North America Purchasing Group:
What is your Purchase Requisition Number:
How many of your elbow pads are in inventory after the requisition:
How many of your road helmets are in inventory after the requisition:
How many of your repair kits are in inventory after the requisition:
How many of your off road helmets are in inventory after the requisition:
How many of your knee pads are in inventory after the requisition:
What is the balance in your vendor’s account after the requisition:
What is the transaction code to Create a Purchase Order:
What is the transaction code to Display a Purchase Order:
What is the transaction code to Change a Purchase Order:
What is the net value of the purchase order:
What is your standard PO Number:
How many of your elbow pads are in inventory after the PO:
How many of your road helmets are in inventory after the PO:
How many of your repair kits are in inventory after the PO:
How many of your off road helmets are in inventory after the PO:
How many of your knee pads are in inventory after the PO:
What is the balance in your vendor’s account after the PO:
What is the transaction code to receive the goods:
What does “Qty in UnE” refer to:
What do the boxes in the OK column mean:
What is your goods movement document number:
How many elbow pads are in inventory after receiving shipment:
How many road helmets are in inventory after receiving shipment:
How many repair kits are in inventory after receiving shipment:
How many off road helmets are in inventory after receiving shipment:
How many knee pads are in inventory after receiving shipment:
What is the balance in your vendor’s account after receiving shipment:
What is the transaction code to receive the invoice:
What is the GL account number that is used for the debit posting:
What is the name of the GL account that is used for the debit posting:
What is the GL account number that is used for the credit posting:
What is the name of the GL account that is used for the credit posting:
What is your invoice number:
How many elbow pads are in inventory:
How many road helmets are in inventory:
How many repair kits are in inventory:
How many off road helmets are in inventory:
How many knee pads are in inventory:
What is the balance in your vendor’s account after invoice receipt:
What is the transaction code to pay your vendor:
What is the account number for the GBI's Bank Account:
What is your document number for posing payment:
How many elbow pads are in inventory after payment:
How many road helmets are in inventory after payment:
How many repair kits are in inventory after payment:
How many off road helmets are in inventory after payment:
How many knee pads are in inventory after payment:
What is the balance in your vendor’s account after payment:
Create Purchase Requisition
Creat & Send Purchase Order
Send Payment to Vendor
Receive Invoice from Vendor
Receive Shipment from Vendor
Create Purchase Requisition
Create & Send Purchase Order
Send Payment to Vendor
Receive Invoice from Vendor
Receive Shipment from Vendor
Create Purchase Requisition
Create & Send Purchase Order
Send Payment to Vendor
Receive Invoice from Vendor
Receive Shipment from vendor
Create Purchase Requisition
Create & Send Purchase Order
Send Payment to Vendor
Receive Invoice from Vendor
Receive Shipment from Vendor
Create Purchase Requisition
Create & Send Purchase Order
Send Payment to Vendor
Receive Invoice from Vendor
Receive Shipment from Vendor
Create Purchase Requisition
Create & Send Purchase Order
Send Payment to Vendor
Receive Invoice from Vendor
Receive Shipment from Vendor
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