MM Cookbook - Process Flow

By Subhajeet Behera


Determination of Requirements

The 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

The 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

The System is capable of simulating pricing scenarios and simplifies the selection of vendors by making price comparisons between the various quotations. 

Purchase Order Processing

The 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

The 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

The 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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