Assignment 3.1 Materials Management - Case Study

Mariano, Raquel C.
ACTCY41S2
Assignment 3.1 Materials Management - Case Study
Step 1: Create New Supplier
The first step in this case study is to create a new supplier. Like in the first step of the Sales and
Distribution case study, the first app we used was the Maintain Business Partner app. We will use the
“I affirm that I have not given or received any unauthorized help on this assignment, and that this work
is my own.”
Maintain Business Partner app to create a vendor master record for a new supplier, Mid-West Supply –
MARIANO. I am somewhat familiar with encoding the given information because we used this app in the
prior case study. (Business Partner 52277)
Step 2: Create Material Master for Trading Goods
Question: Under Net requirements calculation you can enter a Safety stock. What does that mean?
Answer: Safety stock refers to extra inventory or quantity of a product kept on hand in case demand
spikes unexpectedly, or supply is uncertain, preventing an out-of-stock situation.
is my own.”
In this step, I created a trade good material master record for a chain lock in the wholesale
distribution channel using the Create Material app. (Material CHLK1128)
Step 3: Extend Material Master for Trading Goods
To maintain a different condition, I used the Create Material app to copy the sales views of the
new trading good (Chain Lock) from the Miami plant to the San Diego plant.
is my own.”
Step 4: Display Stock/Requirements List
In this step, we are instructed on how to display the stock/requirements list. I used the Display
Stock Overview app to check the stock/requirements list for your Chain Lock on-hand balance and the
demand for this item.
is my own.”
Step 5: Create Purchase Requisition
is my own.”
In this step, I used the Create Purchase Requisition app to request a purchase for 200 chain locks
for 32.00 USD. (Purchase requisition 10000125)
Step 6: Manage Stock
is my own.”
In this step, we will display and review the stock/requirements list again of the Chain Locks on
hand and the demand against this product. I used the Manage Stock app to look over the inventory of
chain locks on hand.
is my own.”
Step 7: Create Request for Quotation
is my own.”
I learned how to create a request for a quotation for your requisition in this step. I used the
Create Request for Quotation app to create three separate RFQs for different vendors: Mid-West Supply,
Dallas Bike Basics, and Spy Gear.
is my own.”
Step 8: Maintain Quotations from Vendors
is my own.”
For this step, I used the Maintain Quotations from Vendors app to keep the relevant data in the
SAP procurement system so that a comparison can be made to help with vendor selection.
Step 9: Evaluate quotations on price
is my own.”
In this step, I use the Evaluate Quotations on Price app to create a price comparison list for each
of the vendors. Since Mid-West Supply - MARIANO was chosen as the successful bidder based on its
lowest bid, the other two vendors must be notified that their bids were unsuccessful and will not be
accepted. We must notify those vendors by flagging them, and to do so, we will use the Evaluate
quotations on price app.
Step 10: Create Purchase Order Referencing an RFQ
is my own.”
In this step, I use the Create Purchase Order app to create a PO by referencing the successful
vendor's quotation. (4500000113)
Step 11: Display Purchase Order
In this step, I learned how to review the purchase order that I created in the previous steps. To
review the purchase order that was delivered to Mid-West Supply, I used the My Purchasing Document
Items app.
Step 12: Create Goods Receipt for Purchase Order
is my own.”
For this step, I used the Post Goods Receipt for Purchase Order app to create a receiving
document that references the Mid-West Supply purchase order.
Step 13: Verify Physical Receipt of Goods
In this step, we must verify the physical receipt of goods. We'll need to use the Manage Stock
app to accomplish this. I utilized the app to look up the chain lock's current inventory status.
Step 14: Create Invoice Receipt from Vendor
is my own.”
We must create an invoice receipt from your vendor for this stage. I use the Create Supplier
Invoice – Advanced app to encode a receipt for $3,200.00 from Mid-West Supply - MARIANO, which is
linked to the recent PO and goods receipts.
Step 15: Display Purchase Order History
is my own.”
is my own.”
Question: In Step 11 you had the following overview. What is the difference to you screen now? Try to
explain!
Answer: The status of the first PO of chain lock from Mid-West Supply – MARIANO is not yet sent in step
11. However, we can see that the status of the first PO is already completed in this step, indicating that
the first order from Mid-West Supply – MARIANO has already been delivered, and the order is complete.
is my own.”
In this step, I checked the status of the Chain Locks PO using the My Purchasing Document Items
app.
Step 16: Display Document Flow
In this step, I used the Materials Document Overview app to review the goods receipt document
as well as the material's document flow.
Step 17: Create Goods Receipt for Purchase Order
For this step, we have to create a goods receipt for the purchase order. I created a receiving
document referencing the purchase order using the Post Goods Receipt for Purchase Order app, just like
is my own.”
I did in step 12.
Question: The stock increased from 100 to 200. Can you explain why?
Answer: The stock has increased from 100 to 200 chain locks since the purchase order of 100 chain locks
from Mid-West Supply – MARIANO was completed.
Question: To which stock type is your material assigned?
Answer: Unrestricted-Use Stock
Since this step is similar to step 15, I am already familiar with the procedure. I used the Manage
Stock app again to check on the status of the purchase order for chain locks.
Step 19: Create Invoice Receipt from Vendor
is my own.”
This step is the same as step 14. I used the Create Supplier Invoice – Advanced app to create an
invoice receipt from Mid-West Supply – MARIANO for $3,200.00, which was linked to the recent PO and
goods receipts.
Step 20: Post Payments to Vendor
is my own.”
Question: Which bank accounts where used? Try to explain!
Answer: Since we must pay the entire accounts payable that we owe to Mid-West Supply – MARIANO,
Bank 100000 was credited which shows that the amount we owe is deducted from the bank and
Payables-TA 300000 was debited to offset the payable that we owe from Mid-West Supply - MARIANO.
I used the Post Outgoing Payments app to send a payment to Mid-West Supply - MARIANO to
settle their whole Accounts Payable balance in this step.
Step 21: Display Supplier Balances
I used the Display Supplier Balances app to verify and confirm the activity and associated
balance for Mid-West Supply - MARIANO's Accounts Payable.
is my own.”
is my own.”
We'll repeat the process from step 15 in this step. I used the My Purchasing Document Items
app to see the history tab of purchase orders for the chain locks.
Step 23: Display/Review G/L Account Balances and Individual Line Items
is my own.”
In the last step, I used the Display Financial Statement app to double-check the activity and
corresponding balances for numerous accounts in my G/L using specific account numbers.
Reflection:
In this case study, it taught us the integrated materials management process in detail and thus
fosters a thorough understanding of each process step and underlying SAP functionality. I learned how
to perform a purchasing process cycle using the SAP Fiori software. This case study taught us the
integrated materials management process in detail, allowing us to fully understand each process step
and underlying SAP functionality. Using the SAP Fiori software, I learned how to run a purchase process
cycle. The first step in this case study is to create master data for a new vendor in Lincoln, Mid-West
Supply - MARIANO, as well as new trading goods, chain locks before I could start the purchasing process.
I was able to enter information for the vendor and the trading good using apps built into the system. I
was also able to transfer this material master from Miami to San Diego to keep a different condition. I've
learned that the first thing I should do is verify if there are any stocks accessible for use since if there
aren't, the purchase process will begin. When the stock quantity on the list reaches zero, the buyers
must submit a purchase requisition. I've prepared a purchase requisition for 200 chain locks at the price
of 32.00 USD, following the guidelines in the manual. Following that, the handbook instructed me to
write a request for quotation and enter the bids received from various vendors. Mid-West Supply -
MARIANO has a price of 32.00 USD, whereas Dallas Bikes Basics has 36.50 USD and 35.00 USD for Spy
Gear, respectively. I've learned the value of getting quotes from many vendors because it allows us to
compare prices and choose the best offer. Since Mid-West supply has the best offer, in this case,
customers are more inclined to consider purchasing from them. Then they must produce a purchase
requisition using the previous RFQ as a reference. After receiving the materials requested from Mid-
West Supply - MARIANO, I needed to create a receiving document that would confirm delivery and good
is my own.”
condition and validate the physical receipt into stock. I made two partial invoices since I split the order
of chain locks with 200 units in half. Mid-West Supply - MARIANO submitted Global Bike Inc. with three
bills totaling $3,200.00. Finally, I sent a payment to Mid-West Supply - MARIANO to settle their Accounts
Payable balance, altering it from $6,400.00 to $0.00. I discovered that users like me could review
purchase order history, supplier balances, and even G/L account balances using SAP functionality.
I was happy to have completed my case study without making any errors. I've learned a lot
about materials management and the purchasing process due to this manual's precise instructions.
Some of the steps are familiar to me because I performed them in the Sales and Distribution Case Study
prior case study. And, because this isn't my first time using this software, I'm not as frightened as I was
previously. In addition, I can claim that this case study is easier than the previous one because several
processes are repeated. I'm hoping that I won't make mistakes in the following case study and that I'll
learn a lot that I can apply in the future.
is my own.”

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Mariano, Raquel C.

Assignment 3.1 Materials Management - Case Study

Step 1: Create New Supplier

Step 2: Create Material Master for Trading Goods

Step 3: Extend Material Master for Trading Goods

Step 6: Manage Stock

Step 9: Evaluate quotations on price

Step 10: Create Purchase Order Referencing an RFQ

Step 11: Display Purchase Order

Step 12: Create Goods Receipt for Purchase Order

Step 13: Verify Physical Receipt of Goods

Step 14: Create Invoice Receipt from Vendor

Step 15: Display Purchase Order History

Step 16: Display Document Flow

Step 17: Create Goods Receipt for Purchase Order

Step 18: Display Purchase Order History

Question: To which stock type is your material assigned?

Answer: Unrestricted-Use Stock

Step 19: Create Invoice Receipt from Vendor

Step 20: Post Payments to Vendor

Step 21: Display Supplier Balances

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