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BRITE Procurement Fundamentals

BRITE Procurement Fundamentals. Course Description.

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BRITE Procurement Fundamentals

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  1. BRITE Procurement Fundamentals

  2. Course Description During this course, you will learn how the implementation of the BRITE Procurement process will change, and how it will improve the way business is conducted in SBBC. You will also be introduced to some basic SAP Procurement structures and vocabulary. Budget Professional Development Enterprise Resource Planning Payroll Enterprise Management Information Finance Operations Human Resources

  3. Course Objectives After completing this course, you will be able to: • Explain the “To-Be” (future SBBC SAP) business processes • Describe the SBBC SAP organizational structure • Describe the use of Master Data in SAP • Explain the use and structure of various purchasing documents in SAP • Describe functions that are executed after the procurement process is complete

  4. Key Purchasing Terms

  5. Terms Glossary

  6. Key Improvements: Need to Receipt For those who alreadydo purchasing, this is an overview of the changes coming. Current State Future State

  7. Key Improvements: Need to Receipt For those who alreadydo purchasing, this is an overview of the changes coming. Current State Future State

  8. Key Improvements: Need to Receipt Current State Future State For those who alreadydo purchasing, this is an overview of the changes coming.

  9. Organizational Structure

  10. Unit Objectives After completing this unit, you will be able to: • Describe the SBBC Organizational Structure • Explain the usage of Purchasing Groups in SAP

  11. Organizational Structure The companycode andPurchasingOrganization will always be SBBC. All buyers have a Purchasing Group Letter. There are sevenplants within theorganization. Each Plant has various storage locations some of which may/may not contain inventory – e.g. Plant 1000 (schools/departments) do not have inventory in SAP

  12. Purchasing Group • The SAP term for Buyer Code is Purchasing Group. Commodities will be assigned to Purchasing Groups within the SBBC purchasing organization • Each Buyer in SBBC has a Purchasing Group letter, which allows them to manage their Requisitions and Purchase Orders more effectively

  13. Purchasing Master Data

  14. Unit Objectives After completing this Unit, you should be able to: • Define key terminology related to SAP Master Data • Explain the concept of Master Data in SAP • Describe the purpose of a Material Master Record

  15. Material Master Records • The following information is essential to understanding the tasks discussed in this unit: • Material Master Records contain information about a material that rarely changes (such as description, unit of measure, etc.) • Material Master Records can be incorporated as default data in transactional documents such as RFQs (Request for Quote) and Purchase Orders

  16. Material Master Records A Material Master Record: • Is the central repository for all details about a material number (description, dimensions, purchasing group, etc.) • Eliminates the need for redundant data entry • Reduces the likelihood of duplicate material numbers

  17. Material Master Records (cont’d) • There are six types of Material Master Records: • Stock materials: Items stocked at the central warehouse or the textbook warehouse • Food: Commodity materials managed at the external food warehouse • Spare Parts: Spares used by Physical Plant Operations and Transportation • Non-Valuated Materials: Items stored in B-stock and student assessments • Non-Stock Items: Materials whose quantity will not be inventoried and will support purchasing functions • Services: Services ordered by schools and departments

  18. Material Master Record Data Flow Material MasterRecord Purchase Requisitions Contracts Requests for Quotation Purchase Orders Invoices The Material Master Record can be used as input for any of the Purchasing Documents shown above.

  19. Purchasing Documents

  20. Unit Objectives After completing this unit, you will be able to: Describe the procurement process flow • Describe the structure and use of a Purchase Requisition • Describe the Catalog Content Management (CCM) process • Name the three types of Purchase Requisitions • Describe the Requisition approval process • Describe the structure and use of: • Requests for Quotations • Quotations • Purchase Orders

  21. Procurement Process Flow Data Strategy Group Creates Purchasing Master Data Requisitioner Creates Purchase Requisition Site Administrator Approval Buyer Creates RFQ (if necessary) Buyer Maintains Quotations (if necessary) Buyer Creates Purchase Order Recipient Performs Goods Receipt Accounts Payable Pays Invoice

  22. Requisitions All Requisitions have three (3) sections: • Header – Contains a “Text” tab where internal information can be entered • Item Overview – Shows an overview of all the line items on the Requisition • Item details – Shows detailed procurement information about one particular line item. There is an item details section for each item on the Requisition

  23. Purchase Requisition Header Item Overview Item Details

  24. Types of Purchase Requisitions There are three types of Purchase Requisitions: • Standard Requisition • Used for external procurements • Can be entered line by line or via Catalog Content Management (CCM) • Can be entered with or without reference to Material Master Record • Framework Requisition • Used for External procurements • Will be created using an attached list for orders with 25 or more lines items • Cannot be used for assets • Stock Transport Requisition • Are used for internal procurements (from the warehouse) • Will always be entered via Catalog Content Management (CCM)

  25. Account Assignment Categories Each line item on a requisition must have an account assignment category. SBBC will use the following categories: • Inventory • Asset • Cost Center • Project • Grant

  26. What is Catalog Content Management? Catalog Content Management (CCM): • Is a web-interface that allows end-users to search for and order standard catalog items from established suppliers with active contracts • Allows end-users to select materials by pointing and clicking • Allows end-users to create a Requisition in SAP directly from an on-line shopping cart • Reduces data input errors and redundancy

  27. CCM Requisitions Catalog Icon Click the “Catalog” icon to access the on-line catalog.

  28. Catalog Content Management CCM allows “point and click” selection of materials to be purchased

  29. Requisition Approvals • Two levels of approvals are required during normal operations depending on the materials procured. • Level: Principal/Department Manager/Supervisor approval. • Level: Only certain material groups need second level approval. These material groups will be automatically routed to 2nd level approvers in areas such as Curriculum, Technology, Textbooks, and Food Service. (Food Service items approval will only be for Stock Transport Requisitions involving small equipment obtained from the Central Warehouse). • During a budget freeze an additional level of approval will be required on all purchases, both internal and external with the exception of Food Services and Grant-related, non-asset items. This approval will be done by the district Executive Leadership Team. 1st 2nd

  30. Request for Quotations (RFQs) and Quotations RFQs and Quotations: • Are initiated by purchasing (rather than schools and departments) after a requisition is approved • Facilitate easy on-line quote comparison and vendor selection • Can be used to create purchase orders and contracts

  31. Purchase Orders Purchase Orders: • Are created directly from requisitions or quotations in SAP • Can be created manually by a buyer or automatically by SAP (when a contract exists) • Are transmitted to vendors via e-mail or e-fax. Hard copy PO’s are sent only when a vendor has no e-mail or fax capability

  32. Purchase Orders Just like the Purchase Requisition, All Purchase Orders have three (3) sections: • Header – Contains information applicable to the entire Purchase Order • Item Overview – Shows an overview of all the line items on the Purchase Order • Item details – Shows detailed procurement information about each line item.

  33. Unit Objectives You should now be able to: • Describe the procurement process flow • Describe the structure and use of a Purchase Requisition • Describe the Catalog Content Management (CCM) process • Name the three types of Purchase Requisitions • Describe the Requisition approval process • Describe the structure and use of: • Requests for Quotations • Quotations • Purchase Orders

  34. Goods Receipt and Invoices

  35. Unit Objectives After completing the unit, you will be able to: • Define key terminology • Determine Requisition status • Describe the Goods Receipt process • Explain the Three-Way and Two-Way match processes • Describe the structure and use of invoice documents in SAP

  36. Key Terms

  37. Goods Receipt The Goods Receipt process: • Is executed when material is received against a purchase order • Results in the creation of a material document that acknowledges the receipt of goods and allows the invoice to be paid • Updates stock balances and purchase order history

  38. Material Document – Goods Receipt Overview The Material Document shows details about all the line items included in the Goods Receipt.

  39. Goods Return The Goods Return process is executed: • When material is to be returned to the vendor after a goods receipt has been executed in SAP • Allows material returns to be tracked • Automatically adjust inventory balances

  40. Three-Way Match • A Three-way Match means that the Purchase Order, the Invoice, and the Goods Receipt all match, both in terms of quantity and price • The three-way match principle applies to all PO’s except Framework PO’s

  41. Two-Way Match • A two-way match means that the Purchase Order and the Invoice must match, both in terms of quantity and price • The two-way match principle applies to all framework PO’s

  42. Unit Objectives You should now be able to: • Define key terminology • Determine requisition status • Describe the Goods Receipt process • Explain the Three-Way and Two-Way match processes • Describe the structure and use of invoice documents in SAP

  43. Summary

  44. Course Objectives You should now be able to: • Explain To-Be business processes • Describe the SBBC SAP organizational structure • Describe the use of Material Master Data in SAP • Explain the structure and use of various purchasing documents in SAP • Describe functions that are executed after the procurement process is complete

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