Managing Material Procurement Process for Product Variants

In this process, a sales order is created for a configurable material. A MRP run takes place which creates a purchase requisition for a material, as some components are out of stock. This purchase requisition is converted into a purchase order.

The following video shows the roles individual users play in the material procurement process.

As you just saw, the process steps for a procurement process include:

• Internal Sales Representative: Creates a sales order for a configurable material.
• Production Planner: Performs an MRP run. A purchase requisition is created
• Purchaser: Creates a purchase order out of requisition
• Warehouse Clerk: Posts goods receipt
• Payable Accountant: Creates supplier invoice

The benefits of a procurement process for Variant Configuration are:

• Improve your company's manufacturing and procurement performance.
• Enable highly individualized products in manufacturing and Procurement.
• Use object dependencies for allowed combinations.

In this scenario, the process starts with the creation of a sales order. A configuration is performed. An MRP run takes place.

For a configurable component a purchase requisition is created. This requisition is now converted into a purchase order.

As a presetting Configuration Modeler Thomas creates a reference characteristic to control price information.

After the creation of the characteristic, Thomas adds it to an existing class.

Thomas opens the product modeling environment and defines new dependencies for two different seat types.

Purchaser Tom creates a purchasing info record. This record specifies the price at which a forkseat is bought at the supplier side.

A purchase order can show a characteristic relevant for the purchased component. Tom creates such a characteristic.

Now, the real process starts.

Kate, the Internal Sales Representative creates a sales order for a forklift. Some components, like the forkseat, are procured externally.

Production planner Nikhil starts an MRP run, due to empty stock for the forklift seat.

Tom wants to find out the purchase requisition number for the forklift seat.

Tom creates a purchase order depending on the purchase requisition.

Warehouse Clerk Jim posts the goods movement when the forklift seat arrives at the warehouse.

Laura, the Payable Accountant, creates a supplier invoice for the purchase order.

After completing this lesson, you're able to:

• name the benefits of using a material procurement process with Variant Configuration
• name the necessary process steps of a material procurement process
• control the necessary VC master data
• set up a sales order for a configurable material
• perform a material procurement process