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BTM 226 > Module 4: The Procurement Process > Flashcards

Module 4: The Procurement Process Flashcards

1
Q

What is organizational data?

A

Client
Company code
Plant
Storage location
Purchasing organization
Purchasing group

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2
Q

What is master data?

A

Material Master
Vendor Master
Purchasing info record
Conditions

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3
Q

What are some key concepts of the procurement process?

A

Item categories
Account determination
Stock type/status
Goods movement

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4
Q

What are the process steps

A

Trigger
Data
Task details
Outcomes

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5
Q

What is reporting?

A

Source of data
Instance level reporting
Process level reporting (lists and reports, purchasing information system)

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6
Q

What is a plant?

A

It is a location that a) holds valuated stock for distribution, b) where production planning is carried out, c) where products and services are created, d) that contains service or maintenance facilities
Factory, warehouse, distribution centre
Can be assigned to one CC only
A CC can have many plants

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7
Q

What is a storage location?

A

A place within a plant, where material are stored
Areas designated for different types of material
More sophisticated divisions including storage bins, cabinets, trays
A plant must have at least one storage location
A storage location can belong to only one plant

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8
Q

What are purchasing organizations?

A

Identify and select vendors
Negotiate general conditions of purchase and contracts for one or more plants or companies
Determine pricing conditions
Typically three models for purchasing organization: Enterprise level, company level, plant level

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9
Q

What is an enterprise level purchasing organization?

A

It is one purchasing organization for the entire enterprise

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10
Q

What is a plant-level purchasing organization?

A

Also known as plant-specific model
Each plant has its own purchasing organization
Highly decentralized

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11
Q

What is a reference purchasing organization?

A

One centralized purchase organization for high-level decisions across the enterprise
Multiple CC-specific and plant-specific purchase Organization

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12
Q

What is a Purchasing Group

A

A buyer or group of buyers responsible for certain materials or groups of materials
Can be internal to the company or external (decide to purchase land, but use a realtor to execute purchase)
Not assigned to or related to purchasing organization

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13
Q

What is Material Master data?

A

It is data needed to execute transactions related to materials
Data are grouped by different user areas
Data are specific to different organizational levels

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14
Q

What are the material master views?

A

Basic Data: Description, unit of measure, weight, material group
Purchasing: purchasing group, GR processing time, delivery (under/over) tolerances
Accounting: currency, valuation class, price control
Forecasting
Sales
Plant/Storage: storage requirements
Work Scheduling
MRP
Classification
Warehouse Management
Shelf life: weight, volume

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15
Q

What are the material master views for other processes?

A

Different material types have different required views
Forecasting
Sales
Work scheduling
MRP
Classification
Warehouse Management

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16
Q

What are Material Master Org Levels?

A

It defines the level at which the master data is maintained
Can have different data for different combinations of Org data: Purchasing - plant, storage, location / Sales - Sales Area (Sales Org, Distribution Channel) / Warehouse - Warehouse #, storage type

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17
Q

What is the vendor master?

A

It is data needed to do business with vendors and to execute transactions related to vendors
It is data specific to (defined for) different organizational levels.

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18
Q

What are the three segments of vendor master data?

A

Client level data (General)
Company code level data (Accounting)
Purchasing organization level data (Purchasing)

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19
Q

What is contained in General Data (Client)?

A

Name
Address
Communication (phone, fax)
Search term

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20
Q

What is contained in Accounting Data (Company Code)

A

Account information
Bank information
Reconciliation account
Payment terms and methods
Communication (dunning)

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21
Q

What is contained in Purchasing Data (Purchasing Organization)?

A

Partner function
InCo Terms

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22
Q

What is the general data for the vendor master?

A

Client-level data
Valid across all CC in a client

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23
Q

What is the accounting data for the vendor master?

A

Company code specific data
Valid for the entire company code across purchasing areas

24
Q

What is the purchasing data for the vendor master?

A

Separate for each Purchasing Organization
Applies to the specified Purchase Org

25
Q

What is the Purchasing Info Record?

A

Relates vendors and materials
One info record per combination of vendor and material (or material group)
General data
Conditions: pricing, discounts, free goods (current and future)
Vendor data
Texts (notes)

26
Q

What are Pricing Conditions?

A

Gross price
Discounts and surcharges
Freight / shipping

27
Q

Where are pricing conditions obtained from?

A

Purchasing info records
Contracts and agreements
Other sources

28
Q

What are the key concepts of the procurement process?

A

Item categories
Account determination
Stock type/status
Goods movement

29
Q

What are item categories?

A

Defines the process used to procure the item including categories, standard, subcontracting (components provided, finished product received), consignment (liability only when withdrawn from stock), service, stock transfer, third party order (ship to third party; bill to us)

30
Q

What are account assignment categories?

A

Used when purchasing material without material master
Assets, production order, cost centre, sales, order, project
Automatic GL account determination based on category

31
Q

What are stock types/status?

A

They are based on usability of material
Unrestricted use
In quality inspection
Blocked stock (damaged, unusable; wrong delivery)
Stock in transit

32
Q

What is goods movement?

A

A transaction that causes a change in stock (value or status)
Categories of Goods Movement
Specific Movement types

33
Q

What is in the Header of a material document?

A

Document number
Created by
Date
Reference
Transaction code

34
Q

What is in the Items (detail) of a material document?

A

Quantity
Material
Location (plant/sloc)
Movement type
Other data depending on process (vendor, customer)

35
Q

What are goods movements?

A

Goods receipt from vendor or production process, increase in quantity and value of stock
Goods issue to sales order or internal

36
Q

What is stock transfer?

A

Physical movement of material between storage locations

37
Q

What is transfer posting?

A

Results in a change in material status
May or may not include a change in location

38
Q

What are process steps?

A

Trigger: Requirement from other processes, Manually determined
Data: Master Data, User Input
Task details: Create requisition
Outcomes: Purchase requisition

39
Q

What are the elements of the purchase order step?

A

Trigger: Purchase requisition, RFQ, Quotation, Purchase order
Data: Master data, Transaction documents, User input
Task: Determine source of supply, Create purchase order
Outcomes: Purchase order, Purchase requisition update, Communicate with vendor

40
Q

What is the purchase order?

A

Creation: Manually or automatically, with or without reference to other documents
Data: Documents (purchase requisition, purchase order, RFQ, quotation)
Master data: Material, Vendor, Info Record, Conditions
Tasks: Data automatically included from input sources, Source determination using info records, agreements and contacts, and source lists
Outcomes: Purchase order, Purchase requisition history - PO added, Communicate with vendor (external procurement) using messages (fax, EDI, print) and Plant (internal procurement) using transfer orders

41
Q

What is the Header?

A

Document number, dates
Vendor, currency, terms
PO total

42
Q

What are line items?

A

Material number, description
Quantity, price, item total
Delivery date

43
Q

What are the elements of the good receipt step?

A

Trigger: Delivery from vendor
Data: Master data, Transaction documents, User input
Task: Verify receipt of material, Create goods receipt document
Outcomes: Material document, FI document, Update GL accounts, Purchase order update, Material master update, Inspection lots (QM), Transfer requirement (IWM), Communication, Output

44
Q

What are the elements of the invoice verification step?

A

Trigger: Invoice from vendor
Data: Master data, Transaction documents, User input
Task: Three-way match, Create invoice document
Outcomes: Invoice document, Purchase order update, FI document, Material master update

45
Q

Elements of invoice verification

A

Data: vendor invoice, purchase order, material document
Tasks: three-way match
Outcomes: financial accounting documents
Outcomes: GL (vendor account, A?P, GR?IR), PO history (invoice document added)

46
Q

What are the elements of the payment step?

A

Trigger: verified invoice
Data: Master Data, Transaction documents, User input
Task: select method, select bank, select items, calculate amount, post payment, print
Outcomes: Payment (check or electronic), FI document

47
Q

What is payment processing?

A

Creation: Manually or via automatic payment program
Data: Three-way match (or other process), Payment method, account, items to pay
Tasks: Calculate payment amount (discounts), Post payment document (accounting document)
Outcomes: Financial accounting documents, Payments (checks, EFT, notifications), Updates (GL accounts, material master)

48
Q

What is reporting?

A

Source data
Instance level reporting
Process level reporting

49
Q

What are reporting sources?

A

Organizational data
Master data
Transaction data (documents)

50
Q

What is reporting instance?

A

Status of a requisition, purchase order

51
Q

What is reporting standard?

A

Process level reporting
Standard reports/list displays

52
Q

What are the components of the reporting logistics information system?

A

Purchasing information system
Sales information system
Quality management information system
Inventory control
Transportation information system
Shop floor information system
Plant maintenance information system

53
Q

What are information structures?

A

Special tables of statistics from various modules that is constantly updated

54
Q

What are the key figures of selection criteria?

A

Quantitative values on measurable facts
Numbers
Quantities
Cost, delivery time

55
Q

What are characteristics

A

They are used to organize key figures

56
Q

What is timeframe?

A

Day, week, month, etc

BTM 226 (15 decks)

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