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MM Cookbook - Process Flow
By Subhajeet Behera
Determination of Requirements
user department responsible is manually passing a requirement for materials to
the purchasing department via Purchase Requisition. Purchase requests are
generated when business runs the MRP and Request are also generated based in
Consumption based planning (CBP) for Production and Engg.Stores.
Determination of Source of Supply
purchasing component helps the buyer determine the sources of supply. User use
the determination of the source of supply to create Requests for quotation (RFQs)
and then to enter quotations. User is accessing the existing Purchase Orders and
Conditions in the System.
Vendor Selection and Comparison of Quotations
System is capable of simulating pricing scenarios and simplifies the selection
of vendors by making price comparisons between the various quotations.
Purchase Order Processing
purchasing system adopts information from purchase requisition and the quotation
to help to create Purchase Orders. They are also creating manual purchase order
directly for stock, non-stock items, services etc.
Purchase Order Monitoring
buyer monitor the processing status of the purchase order online at any time and
determine whether goods or an invoice have been received for the relevant
purchase order item.
Goods Receipt and Inventory Management
Goods receiving requester confirms the receipt of the materials by simply
entering the Purchase Order Number. The system compares the goods receipt
quantity with the purchase order quantity. By specifying permissible tolerances,
buyers can limit over deliveries and under deliveries of ordered materials.
Purchasing Functionality is integrated with Inventory
Management and Invoice Verification within MM.
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