Four functions are available for the purpose of optimized purchasing. These differ from each other in the following respects:

Prerequisites

Manual effort

Result

A prerequisite for the function Ordering with respect to assigned requisitions is the existence of requisitions that have been assigned to sources of supply. The system can assign sources automatically if, for example, quota arrangements or source list records exist.

You get a list showing the number of assigned purchase requisitions per source.

You can convert all requisitions assigned to the same source into standard purchase orders, contract release orders or lines of delivery schedules (issued under scheduling agreements) in a single step.

It is not possible to convert requisitions into RFQs using this function.

As of Release 3.0, you can have purchase orders generated automatically from requisitions to which a source has been assigned. You can perform the function either online or - in the case of large volumes of data - in the background.

For the purposes of automatic PO generation, the system selects only those requisitions in respect of which the Automatic PO indicator has been set for the material and vendor.

A log lists the purchase orders that were generated, indicates which ones are faulty, and provides detailed information on the source of the error for each faulty requisition item.

The system cannot convert a requisition item if data is faulty or incomplete. Possible sources of errors include the following:

Master data is faulty or incomplete(For example, the vendor is blocked or the current order price is not available.)

Input data is missing (For example, account assignment unknown.)

It is not possible to generate RFQs or scheduling agreement delivery schedules using this function.

The Assign and process purchase requisitions function is a combination of the Assign purchase requisitions and Ordering with respect to assigned requisitions functions.

From a list of open requisitions, you can initiate the automatic assignment of sources for all selected requisition items. If more than one source exists for a requested material, you can choose your desired source from a list displayed in a dialog box.

If requisitions have already been assigned, the previous source is overwritten.

You can flag for RFQ processing any requisitions for which no source is found.

After the assignment phase, you can save your requisitions with the assigned sources, or generate standard purchase orders, contract release orders, scheduling agreement delivery schedules, or RFQs.

Assignment and processing can take place as separate processes and be carried out by different persons.

The Purchase order with source determination (= PO with unknown vendor) function is a combination of the Create purchase requisition and Create purchase order functions.

With this function, you

first enter the materials to be ordered

then assign sources to the items

then generate the purchase orders for the assigned items

(or purchase requisitions for any items for which no sources can be determined or which must first be released) As in the case of requisitions, the system suggests possible sources of a material on the basis of existing quota arrangements, source list records, outline agreements and/or info records.

The user parameter EVO allows you to specify default values for certain fields and functions for each user. For example, it allows you to specify default values for

various indicators

the overview screen display the fast entry functions

You define the default values via Customizing and assign them to a user by entering the key for the default values in the user master record under the parameter ID EVO.

If requirements for a material are planned automatically and MRP is active in the plant, the system automatically carries out planning file entries upon transactions relevant to materials planning (goods issues, reservations, change in a materials planning data, execution of a forecast for material ...).You can also enter planning file entries manually.

You can carry out materials requirements planning online or in the background.

Planned orders are an order proposal used for requirements coverage. They are converted to purchase requisitions in a single step. You can also create them manually.

You can also create purchase requisitions instead of planned orders.

From the date of the purchase requisitions creation, the R/3 System calculates the materials availability date by taking into account the three time components, purchasing processing time, planned delivery time, and goods receipt processing time.

The processing time for Purchasing is the time required to convert a purchase requisition into a purchase order and issue it. The time required is measured in working days according to the factory calendar. It is plant-dependent and set in Customizing for Materials Planning.

The planned delivery time is the time from the issue of the purchase order issue to the receipt of the goods at the vendor. This is entered in calendar days in the material master, info record, and /or contract.

The GR processing time is the time required from the goods receipt until the material is available. It is entered in in the material master, and/or contract, in working days, according to the factory calendar.

A stock/requirements list informs you of the available quantity, based on the stock situation, requirements, and receipts.

The stock/requirements list is dynamic, i.e. every time you call up the function, the stock elements, receipt elements, and issue elements (e.g., plant stock, purchase orders, and reservations) are redetermined.

There is an individual display function and collective evaluation function for the stock/requirements list.

The MRP list is another function used for evaluation in MRP. This is a document that describes the status of a material at the time of the planning run.

As of Release 4.0A, it is possible to create purchase order items with an invoicing plan. An invoicing plan consists of a series of invoicing dates and values, and forms the basis for the largely automatic creation and settlement of invoices.

PO items with an invoicing plan are suitable for recurrent procurement transactions (such as rental, leasing, servicing agreements) or for transactions involving settlement in stages.

There are two kinds of invoicing plans: "periodic" and "partial".

The periodic invoicing plan should be used for recurrent procurement transactions. With this type of invoicing plan, the total value of the PO item is invoiced on each due date. The due dates can be suggested automatically by the system.

The invoicing plan type is defined in Customizing and is assigned in the PO item.

There are two kinds of invoicing plans: "periodic" and "partial".

The partial invoicing plan should be used for transactions involving invoicing and payment in stages (for example, in construction projects, where a down-payment is required). With this type of invoicing plan, the total value of the item is spread among the individual due dates defined in the invoicing plan. Thus, only a part of the total item value is payable on each due date.

In the case of the partial invoicing plan, the due dates can only be automatically suggested by the system if date proposals are first defined in a model invoicing plan in Customizing for simplification purposes. Otherwise the due dates have to be entered manually at the time the purchase order item is created.

The total value of the PO item can be split among the due dates on a percentage basis or in absolute amounts.

Automatic invoicing is based on the dates and values specified in the invoicing plan assigned to the PO item.

The invoicing plan type is defined in Customizing and assigned in the PO item.

If you wish to create a purchase order with an invoicing plan, you should use the document type FO (framework order). This document type enables you to enter a validity period in the purchase order header.

You must specify account assignments for PO items with an invoicing plan.

The invoicing plan function is not possible in the case of valuated goods receipts. You must either cancel the GR indicator in the PO item or set the Non-valuated goods receipt indicator.

The automatic generation of invoices on the dates set out in an invoicing plan is only possible if the ERS indicator has been set in the Purchasing data of the vendor master record. If the indicator is set, you must enter a tax code in the PO item.

You create a PO item with an invoicing plan by assigning the key for an invoicing plan type in the PO item. The invoicing plan type is defined in Customizing and determines, for example, whether and according to which rules invoicing dates are suggested.

The automatic creation of scheduled dates for an invoicing plan is controlled in Customizing for Purchasing via the invoicing plan type.

The invoicing plan type defines the basic control data for the invoicing plan. Accordingly, the invoicing plan type contains information such as rules for date determination. It also contains a rule for determining the invoicing plan horizon. The latter indicates the last invoicing date in the plan by specifying a certain time period starting from the current date.

The date category specifies data for each invoicing date that appears in the invoicing plan. A date category can be assigned to each invoicing plan type.

To permit the automatic generation of invoices for invoicing plans, the indicator for Evaluated Receipt Settlement (ERS) must be set in the vendor master record (Purchasing data).

SAP AGTAMM10 4.0B19-20