Materials Procurement Planning Seasonal

Procurement planning is essential for businesses to minimize their purchase costs while maintaining
their quality and quantity of goods standards.

A procurement plan is a process in which a company decides what they need, who will provide the
products, and when orders will be fulfilled. Many departments within an organization are involved in
the procurement team to aid in decision-making processes and maintain efficiency. A team member is
assigned to each stage, such as the request proposal, vendor research, and approval process, to
determine what procurement strategy best meets the business needs.
Identify the Need for Goods or Services
 Research and Select Possible Vendors
 Review Bids and Determine Final Supplier

 Punctuality
 Quality
 Cost
 Delivery time
 Reputation
 Discounts

Determine What Contract Types are Appropriate

Purchase Order
Fixed Price
Fixed Price Plus Incentive
ixed Price With Economic Adjustments
Outline Risk Management
 Start the Purchase Order Process
Detail Project Restraints
Keep in Contact With the Vendor
Evaluate Overall Supplier Experience
Its under come to p to p cycle planning

Procurement Process Cycle

Procure to pay Process consists the following processes.
1. Material requirement planning
 2. Vendor Selection
3. Request for Quotation
4. Purchase Requisition
5. Purchase Order
6. Goods Receipt
7. Goods Receipt Invoice
8. Invoice Verification
9. Payment to Vendors

Auto Purchase Requisition

t is a step at which users or departments determine materials requirements manually or automatically

using materials planning and contro

Manual Purchase Requisition

Purchase Requisition (PR) is an internal purchasing document in SAP. It is used to give notification to
responsible department (purchasing/procurement) of requirements of materials and/or external
services.

Approve Purchase Requisition

you can view pending purchase requisitions and approve them. If necessary, you can forward approvals
to a different employee for further processing. You can search for specific purchase requisitions

Create Domestic Purchase Order

choose Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant
Known. The Create Purchase Order screen appears
Approve Purchase Order

Purchase Order Approval by Most Expensive Line Item business option has been selected in scoping,
the system will compare all line items in the purchase order and determine the cost object of the most
expensive line item based

Its belongs to manager and the alternative approvers receive this task in the Approvals view of
the Managing My Area work center.

Advance Payment

can make full or partial payments in advance to suppliers for an entire order or for specific line items on
the order and later adjust the payments against the invoices for the order. When an advance payment is
fully approved, the payment document for the advance payment

Vendor A/C-DR Bank A/C CR ( T CODE-F-48)

Good Receipt

goods receipt is the document that proves the buyer has received the items they ordered, while an
invoice is a document that shows how much money is owed for those items.31-Jan-2023

Inventory A/c DR

GR/IR Account CR

Incoming QC

n a quality inspection, you inspect a material or product, using inspection specifications that have been
predefined in the Inspection planning component

Invoice Verification
Invoice verification marks the end of procurement, after purchase order and goods receipt. Invoice
posting updates all the related documents in financials and accounting. Blocked invoice that vary from
actual invoice can be processed through invoice verification

Vendor Payment

(Account Payable)

the amount of money that a business entity owes to vendors/suppliers for availing of their
goods/services. It is the management of short-term payment obligations to the vendor/supplier.27-Aug-
2021

Payment Means: Credit Card Tab

Credit Card Name

Specify the credit card used to make the payment.

G/L Account

Incoming Payments

The account defined for the selected credit card in the Credit Card – Setup window. If
required, specify another account.

Outgoing Payments

Specify the account to be credited when the outgoing payment is added.

Credit Card No., Valid Until

For incoming payment documents:

Specify the number and valid-until date (in the format MM/YY) of the credit card.

ID No., Telephone No.

Specify the ID number and the phone number of the card owner.

Payment Method
Specify the required payment method.

Amount Due

Specify the amount paid with the credit card.

No. of Payments, First Partial Payment, Each Add. Payment

Specify the number of partial payments for this transaction, and the amount of the first
partial payment.

SAP Business One automatically calculates the amount that is to be paid with future
payments, and displays it in the Each Add. Payment field. Rounding results are added to
the first payment.