Material Procurement Process for Managing 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. 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

Note

This process flow is covered in scope Item: 2XU- Procurement of Materials with Variant Configuration

In this scenario, the process starts with the creation of a sales order. A configuration is performed.

A MRP run takes place for this sales order.

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

To run this scenario, some predefinitions have to be executed.

Configuration modeler Thomas creates a reference characteristic to control price information.

After creation of the characteristic Thomas, our product configuration modeler, adds it to an existing class.

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

Tom, our purchaser, creates a purchasing info record. This record contain information, for which price a forkseat is bought at supplier side.

Inside purchase order it is possible to display a characteristic, relevant for the purchased component. Tom creates such a characteristic.

Now the real process starts.

Kate, our internal sales representative creates a sales order for a forklift. Some components, like the forkseat are procured externally.

Nikhil our production planner, starts a 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, as the forklift seat arrives at warehouse.

Laura, our payable accountant, creates a supplier invoice for the purchase order.

Now you should have an impression of "How to maintain an material procurement process with Variant Configuration".