Create Purchase Requisitions
The Consumable Purchasing solution process can start with a purchase requisition which can be created manually or automatically.
A purchase requisition is an internal document that defines the requirements of a material or a service. This document authorizes the purchasing department to procure the material in the quantity specified for the specified date.
As a purchaser, you can create purchase requisitions for consumables using the Manage Purchase Requisitions - Professional app. If an approval workflow is defined then the purchase requisition is subject to approval otherwise it is approved automatically.
You can use the automatic source determination so that the system searches for the possible sources of supply such as purchasing info record or a contract.
The default values for your user can be set using the Default Values for Users - Purchase Requisitions app by a configuration expert.
You can also create purchase requisitions using the Create Purchase Requisition - Advanced app. You can set the default values for this app using the Personal Settings available on the app. Automatic source determination of source of supply is also available in this app.
Convert Purchase Requisitions to Purchase Orders
As a purchaser you can convert the purchase requisitions using the Process Purchase Requisitions app. Using this app, you can display purchase requisitions. You can also use the app to assign sources of supply to the purchase requisition items and then create the follow-on purchase order. You can only access purchase requisitions if you have authorizations for the respective purchasing group, purchasing organization, and plant.
Whether you can create one or several purchase orders depends on the supplier, purchasing organization, and purchasing group associated with the selected purchase requisition items.
Create Purchase Order
The solution process can also start directly by creating the purchase order for consumables. If an approval workflow is defined then the purchase order is subject to approval, otherwise it is approved automatically.
A purchase order is a request or instruction from a purchasing organization to a supplier or a plant to deliver a quantity of material or to perform services at a certain point in time.
As a purchaser you can create purchase orders for consumables using the Manage Purchase Orders app. You can use this app to manage and search purchase orders for consumables. You can create purchase orders for standard items or limit items.
You have to maintain the Account Assignment Category for the purchase order. You can use multiple account assignment in your purchase order so that the costs covered by the purchase order are distributed to different cost centers or projects.
Using the Process Control tab on the item level, you can enable or disable goods receipt and non-valuated goods receipt.
Default User Settings
Using the Profile → Settings → Default Values, you can maintain the default values for the fields under Materials Management, which can then be used as default values for the filters while using the Manage Purchase Orders app. The default values for fields such as material, material group, plant, and supplier can be entered. They will be displayed as a default value for the filter on the app. You may not see all the setting options; some need to be enabled by your administrator.
Note
The default values are only meant for filtering the displayed list for relevant apps and do not have any effect on the fields of newly-created purchase orders. That is, when you create a new purchase order, the default values that are set will not display as default on the new purchase order.Post Goods Receipt for Purchasing Document
Once the ordered goods arrive and if the good receipt was enabled in the purchase order, you can post the goods receipt for your purchase order. As a warehouse clerk or an inventory manager, using the Post Goods Receipt for Purchasing Document app, you can post the receipt of goods with reference to the purchase order in which the goods ordered are for direct consumption. Since the goods are destined for consumption, only the consumption statistics are updated in the product/material master record.
In the case of goods receipt to consumption, the account assignment object (such as a cost center, order, asset, etc.) is debited. You can post the goods receipt for purchase orders with single or multiple account assignments.
Note
You define the account assignment distribution and the accounting information, and the ordered quantity in the purchase order. You can make these settings for valuated and non-valuated goods receipt.
The Post Goods Receipt for Purchasing Documents app only displays the account assignments as further information. In the case of partial goods receipt, the app does not recalculate the distributed quantity.
If you maintain the Delivery Note while posting the goods receipt, you can use it as a reference instead of referring to the purchase order when creating the supplier invoice.
Goods receipt is not mandatory for consumable purchasing, you can disable it in the process control by deselecting it while creating the purchase order.
Create Supplier Invoice
As an Accounts Payable Accountant for Procurement, using this app, you can create supplier invoices for your purchase orders based on the received document from your supplier. You can also create credit memos, subsequent credits, and subsequent debits.
You enter the Basic Data such as invoice date or reference document number from the received invoice. The Invoicing Party is filled in automatically once you enter the reference purchasing document.
You can choose Show More in the General Information section to edit, for example, the Assignment, Item Text, and Header Text fields. After posting, the system transfers these texts into the corresponding Financial Accounting document.
You can change the Exchange Rate that is displayed according to the configuration settings. You can change the exchange rate until you create an invoice item. If you specify a purchase order reference with fixed exchange rate and you create the invoice item, the exchange rate is created automatically for the invoice.
In the Purchasing Document References, as a reference you use the purchase order number by specifying the reference document category. If there is a goods receipt for the purchase order and if the Delivery Note was maintained for the GR, you can also use the Delivery Note as a reference.
You can create the invoice for all relevant items of the referenced purchase order for which the invoice was received. The system will select the relevant items for the invoice that has arrived and the goods receipt was posted for the referenced purchase order. For the second item in this purchase order, there was no goods receipt posted, hence no supplier invoice can be created for it.
You can change the payment terms. Once the payment terms have been adopted by the system they are no longer changed automatically. If you change the payment terms or the supplier while creating a supplier invoice, you must check the payment terms and reset them manually if required.
Using the Unplanned Delivery Costs tab, you can add the delivery costs that were not planned or included during purchase order creation. It is possible to configure the unplanned delivery costs to exclude G/L account items.
If you select the Simulate or Post function, the system compares the quantity and amount data of each supplier invoice item with the data of the related purchase order item. The difference between the debits and credits (Balance) must not be outside the tolerance limits set. Using the Check function, you can make the system check the invoice before trying to post.
Simulate function allows you to display the account movements before posting the document. On the Simulation view, you can also switch the simulation currency, and post the supplier invoice.
You can Park the invoice document for someone to complete the process and post it later on.
You can display the Purchase Order History. In the document flow, you can see the purchase order document and the good receipts of the referenced purchase order item.
You can reduce the invoice. If you receive a supplier invoice with a deviation either in the amount, quantity, or both, you can document this difference in the detail data of the invoice item by choosing the Reduce Invoice function. For a reduced invoice, the app posts an invoice and a credit memo at the same time and creates a letter of complaint.