Procurement of WM-Managed Stock Materials

1. Procurement of WM-Managed Stock Materials SAP Best Practices for Chemicals

2. Purpose, Benefits, and Key Process Steps • Purpose • Thescenario dealswiththebusinessprocess of procurement of WM-managed stock materials.Target group are buyers, warehouse employees and accounting clerks. • Benefits • Integration of Warehouse Management (LE-WM) • Key Process Steps • Display and Assign Purchase Requisitions • Convert Assigned Requisitions to Purchase Orders • Create Purchase Order Manually • Release Standard Purchase Order (if required) • Goods Receipt for Warehouse-Managed Materials (MIGO_GR, Purchase Orders)

3. Required SAP Applications and Company Roles • Required SAP Applications • SAP ECC 6.00 enhancement package 5 • Company Roles • Purchaser • Purchasing Manager • Quality Specialist • Warehouse Clerk • Accounts Payable Accountant

4. Detailed Process Description • Procurement of WM-Managed Stock Materials • Purchasing is a component of Materials Management (MM). It supports all the phases of materials management: materials planning and control, purchasing, goods receiving, quality inspection of procured materials, inventory management, warehouse management and invoice verification. • This scenario also includes the use of the Warehouse Management component (LE-WM). Business transactions that are initiated in other SAP components result in corresponding tasks in Warehouse Management (WM) which activates the physical transfers within the warehouse. • The purpose of this scenario is to procure raw materials, receive the delivered quantity into inventory, maintain required batch information for production / expiry date, and finally place the goods into warehouse bin location(s).

5. No Yes Process Flow Diagram Procurement of WM-Managed Stock Materials Event Purch Req exists? MRP Generated Create Purchase Requisition Send Purchase Order (to Vendor) Pur-chasing Manager Yes No Release Standard PO Purchaser Display and Assign Purch. Reqs Print Purchase Order PO Approval required? Purchase Order (PO) Convert Assigned Reqs to POs Warehouse Clerk Display the Bin Stock of the Material Confirm Transfer Order Create Transfer Order Goods Receipt for Warehouse-Managed Materials Stock GR/IR PPV Quality Specialist 841 – QM in Procurement? Not active Quality Inspection in Goods Receipt (905) – Process Usage Decision for Inspection Lot Quality Inspection in Goods Receipt (905) – Quality Inspection in Goods Receipt w/Supplier Cert. Accounts Payable Invoice Verification GR/IR PPV Small differences Use tax payable Vendor AP – Accounts Payable (158) Active MRP = Material Requirements Planning, RFQ = Request for Quotation, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision