Exploring the Procurement of Direct Materials (J45) Scenario

Typically, stock materials are planned through the regularly scheduled requirements planning (MRP) run. For externally procured materials, the MRP run automatically generates a purchase requisition or a scheduling agreement schedule line when a shortage is identified. If necessary, the MRP run can also be triggered manually, and purchase requisitions may be created manually as well.

In the following, consultant Julia will explain to planner Jim how to create purchase requisitions both automatically and manually in SAP S/4HANA Cloud.

View the interactive demo below to learn how to create a purchase requisition from MRP using the Monitor Material Coverage - Net and Individual Segments app.

With the Monitor Material Coverage - Net and Individual Segments app, you can monitor the materials in your selected area of responsibility. When you launch the app for the first time, you must define your area of responsibility by selecting the appropriate combinations of plant and MRP controller. This will reduce the items displayed in the app list to those that match these settings. You can change the area of responsibility at any time in the User Actions Menu.

In the following demo, we'll take a look at the steps required to create a purchase requisition via MRP using the Monitor Material Coverage - Net and Individual Segments app:

In the following demo, we'll take a look at the steps to create a purchase requisition manually.

The next step in the procurement process is to convert purchase requisitions into purchase orders. In the following section, Julia will explain to Jim, the planner, which options are available in SAP S/4HANA Cloud.

We have already introduced this app in the previous section. It's an important tool for planners to monitor the supply situation of their materials. With this app, a planner can also easily convert a purchase requisition.

The advantage of this option is that, while monitoring the supply situation of a selected material, you can directly and immediately convert purchase requisitions without switching to another app. The prerequisite is that the purchase requisition is assigned to a source of supply.

Watch the interactive demo below to learn how to convert a purchase requisition using the Monitor Material Coverage - Net and Individual Segments app.

This option is suitable if you want to process a worklist of purchase requisitions. The system creates bundles of purchase requisitions that can be ordered together. You can then convert these bundles collectively.

With the app, you can also change purchase requisitions and assign them if they have been created without a source of supply. 

Watch the interactive demo below to learn how to convert purchase requisitions using the Assign and Process Purchase Requisitions app.

As an alternative to the Assign and Process Purchase Requisitions app, the Process Purchase Requisitions app is also suitable for changing, assigning, and converting a worklist of purchase requisitions.

However, this application only allows you to assign purchase requisitions one by one, while the Assign and Process Purchase Requisitions app allows you to assign them collectively.

But compared to the Assign and Process Purchase Requisitions app, the Process Purchase Requisitions app offers an SAP Fiori user interface that is easier to use.

Watch the interactive demo below to learn how to convert purchase requisitions using the Process Purchase Requisitions app.

To further streamline and automate the procurement process, you can schedule a job that automatically converts purchase requisitions to purchase orders.

The following prerequisites must be met for the automatic conversion of purchase requisitions to purchase orders:

• The Automatic Purchase Order indicator must be set in the material master record (purchasing data).
• The Automatic Purchase Order indicator must be set in the supplier master record (purchasing data).
• A valid source of supply must be assigned to the purchase requisition item.
• No additional entries may be required during conversion, such as the tax code in case of automatic goods receipt settlement.

Therefore, you decide for which material-supplier combinations an automatic conversion is allowed. 

The job can be scheduled to start after the MRP run for example. All purchase requisitions that meet the prerequisites are converted. As the planner, you only need to process the remaining ones.

Watch the interactive demo below to learn how to schedule a job to automatically convert purchase requisitions.

The following brief conversation between Julia and Jim introduces the topic of MRP change requests.

You can create change requests for existing purchase order items based on rescheduling proposals from the MRP check.

These change requests can then be sent to suppliers via an external system to request updates to the quantity or delivery date of a purchase order schedule line - helping to ensure material availability and meet customer requirements.

Alternatively, change requests can be communicated by email or phone. Suppliers may accept or reject the requests, or submit alternative proposals. Once a response is received, you can choose to adopt or disregard the changes included in the respective change request.

Watch this interactive demo to learn how to create an MRP change request.

Watch this interactive demo to learn how to manage MRP change requests.

In this section, Julia meets Anil, who is responsible for goods receipt processing and is particularly interested in monitoring outstanding incoming deliveries.

View the following interactive demo to learn how to monitor outstanding goods receipts.

The following brief conversation between Julia and Anil introduces the process of posting a goods receipt.

Watch the interactive demo to learn how to post a goods receipt with reference to a purchase order.

In this section, consultant Julia meets with Finn, the inventory manager, who is eager to learn how to monitor stock levels effectively.

Watch the interactive demo to learn how to display stock.

Listen to Julia as she briefly explains how posting the supplier invoice completes the procurement process.

Watch the interactive demo to learn how to post a supplier invoice with reference to a purchase order.