Managing Material Procurement Process for Product Variants

Objective

After completing this lesson, you will be able to use the Procurement of Materials with Variant Configuration.

Material Procurement Process with Variant Configuration

When and Why to Procure Materials

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.

Applicable Process Steps

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

Benefits

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.

How to configure Product Variants using Material Procurement

Introduction: Procuring 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.

Task 1: Create a Reference Characteristic

In the following video, Configuration Modeler Thomas creates a reference characteristic to control price information.

Task 2: Manage classes

After creation of the characteristic Thomas adds it to an existing class. The following video demonstrates this task.

Task 3: Define Object Dependencies

The following video demonstrates how Thomas opens product modeling environment and defines new dependencies for two different seat types.

Task 4: Create a Purchasing Info Record

The following video demonstrates how Purchaser Tom creates a purchasing info record. This record specifies the price at which a forkseat is bought at supplier side.

Task 5: Define Characteristics for Procurement

A purchase order can display a characteristic, relevant for the purchased component. In the following video, Tom creates such a characteristic.

Task 6: Create a Sales Order

Now the real process starts.

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

Task 7: Perform a MRP Run

In the next video, Production planner Nikhil starts a MRP run, due to empty stock for the forklift seat.

Task 8: Manage Materials

Tom wants to find out the purchase requisition number for the forklift seat, which can be seen in the following video.

Task 9: Create a Purchase Order

In the next video, Tom creates a purchase order depending on the purchase requisition.

Task 10: Post Goods Receipt

The next video shows how Warehouse Clerk Jim posts the goods movement when the forklift seat arrives at the warehouse.

Task 11: Create an Invoice

In the last video, Laura, the 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".

Log in to track your progress & complete quizzes