MM process

[Former Member]

Dear Experts ,

Please update me overall MM process in SAP

Regards

Vishal

[Former Member]

thank s

[mohd_uzairhussain]

Hi,

Please go thru the first thread posted by Arif and many others in detail

Regards,

Uzair

Edited by: Mohd Uzair Hussain on Jul 6, 2009 11:24 AM

[Former Member]

ERP MM - Purchasing

Purchasing is a sub-component of Material Management. This page gives information about the Purchasing functionality.

Nomally, Purchasing process is as follow:

1. Generation of material requirement: Material requirement is generated automatically through MRP and/or manually by user dept group or individuals.

2. Request for Quotation (RFQs): Once material requirement is identified then based on the procurement type (external procurment), the requirement is processed for getting the quotations from different vendors (including one time vendor)

3. Maintain Quotation: Vendor will send the quotations back to the purchasing dept giving all informations (terms and conditions) including rates, purchasing dept updates this information by maintaining quotation.

4. Comparision of Quotation and Vendor selection: once all the quotations are updated then purchasing dept generates comparistion list to get the better picture for final selection of the vendor.

5. Release Purchase Order: For selected vendor(s), purchasing dept sends purchase order which contains the information for supplying the material or perform of services, quantity of material/service, delivery schedules, terms & conditions, delivery address etc.

6. Purchase order confirmation: For some organizaiton, purchase order confirmation is very important to manage/plan their resource and space or to find alternative resource incase of short supply.

7. Reminders and Follow-up: In some case, purchsing dept follows up with vendor by sending reminders

8. Advance Notification: Vendor will send information about the supply of material ie. material, qty, against which PO, vehicle number, start date etc. This helps purchasing dept to inform their storage manager for managing their resource and warehouse space.

9. Goods Receipt: Vendor sends material to the plant and storage/warehouse receives material against purchase order

10. Invoice Receipt: Vendor sends invoice for the supplied material or performed services. Sometime, this happens before actual receipt of material. Account dept/ invoice dept checks this invoice against goods receipt and/or purchase order to confirm the qty, rate, schedule etc and post the invoice.

11. Payment: for successful supply, accounting dept will release the payments to the vendor.

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https://www.sdn.sap.com/irj/scn/wiki?path=/display/erplo/erp+mm

Edited by: Jayakumar Raju A.S on Jul 6, 2009 10:13 AM

[Former Member]

HI,

Pls find blw mm process flow

- Purchase requisitions will be auto generated through MRP run. User can also create purchase requisition manually as mentioned below.

--Search approved vendors for the required material in the approved vendors list/ source list.

--§ Send u2018Request for Quotationu2019 to vendors from source list.

--§ Conduct negotiations with the vendors listed as per the -quotations received and finalize the rates.

--§ Maintain quotations in the system.

Create PO/ rate contracts with reference to RFQ only.

--§ Creation of the Contracts purchase order.

--§ First approval of the purchase document by the Commercial head.

--§ Second approval of purchasing document by Finance head.

--§ Third approval of purchasing document by Executive Director.

--§ Send purchasing document copy to the vendor.

--§ Confirmation received from the vendor through E-mail.

--§ Order Follow up through email / telephone.

--§ Goods receipt document will be created with respect to purchase order.

--§ Quality inspection of goods received.

--§ During the goods receipt, vendor excise invoice will be captured in the system. (Part I entry of excise invoice).

--§ In excise verification step, CENVAT credit (if applicable) will be taken (Part II entry of excise invoice)

--§ Invoice verification will be done.

[kunal_ingale]

hi

check following in which check MM

http://help.sap.com/bp_blv1600/V5600/BL_IN/html/scope/Scoping_offline.htm?display=STE-BL_IN_V5600+FU...

regards

Kunal

[Former Member]

The entire procurement process consists of eight main activities: (1) Determination of requirements, (2) Source determination, (3) Vendor selection, (4) Purchase order processing, (5) Purchase order monitoring, (6) Goods receipt, (7) Invoice verification, (8) Payment processing.

The Purchasing process is triggered by the identification of a need for a good or service to be procured. This will be communicated to Purchasing department either by the generation of a MRP Requisition or a manual Requisition created by an individual in the business and sent to Purchasing.

The system helps the buyer/purchasing Group determine which Vendor the requirement should be purchased from, via existing master records (Agreements, PIRs etc) and pick the appropriate source.

The Procurement Officer like Procurement Co-ordinator or Materials Co-ordinator can now convert the Requisition to a Purchase Order to issue to the Vendor.

These activities begin with a requisition for goods and end with a payment to the vendor. In between, you have a buyer who is responsible for entering purchase orders and communicating those orders to the vendor; the goods receipt clerk who is responsible for verifying that the goods received from the vendor match the order, and the invoice verification clerk who ensures that the invoice from the vendor is accurate and that the service is completed/items delivered before the vendor is paid.

If no contract/purchasing agreement for the service/material exists either a service order or a requisition generated to support this requirement.

If a contract/purchasing agreement exists, a call-off order/release order is created

The goods receipt/SES is linked to the purchase order, call-off order/ release order or service order.

There is a direct link to these orders during invoice verification.

Edited by: anjali s on Jul 6, 2009 9:18 AM