mmbb001 - purchasing

8/22/2019 MMBB001 - Purchasing

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BUSINESS BLUEPRINT DOCUMENTMMBB001

Process Purchasing

Client Makino Asia Project Phase Business Blueprint

Doc. Date 01/08/2012 System ECC 6.0

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Document Control

Version Control

Ver. Prepared by Dated Purpose/Project Phase Effective Date

1 Connie Phan 06/08/2012 Process Definition234

Approval

Project Role Name / Designation Signature Date

Project Lead Alvin Lee

Project Manager Ricky Lai

Process Owner Yap Wai Kuen

Process Champion Catherine Chang

Process Champion Catherine Fok

Process Champion Sean Sheu

Process Champion Prathap Bavi Srinivasa

Process Champion Toh Eng Toon


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1. Requirements / Expectations

1.1. Master Data

1.1.1. Procurement from a single vendor may be carried out in more than one currency.To be able to capture for the same vendor, different materials, the price in differentcurrencies.

1.1.2. For one material, to be able to buy from different vendors in different currencies.

1.1.3. For common parts used in production as well as customer service, currently, PICprocures at a price which is different from that by customer service. If customer

service is modelled under the same plant as production, to be able to capture forthe same material, same vendor, different price.

1.1.4. For some materials, to be able to split requirement quantity to be procured fromvarious sources of supply based on a predefined quota.

1.1.5. To be able to create material master records for commonly procured indirectmaterials, this is to avoid having to manually enter data in PR/PO, to eliminatetypo errors. Prices for such materials are to be kept in Purchasing Info Records.Not all indirect materials need to have material master record created.

1.1.6. To be able to capture the vendors part number in Vendor Cross Reference (PIR).Purchase orders will be created using Makinos part number but the vendors partnumber must be captured and printed on the POs.

1.1.7. Periodically, a report is executed to show cost savings due to vendors pricechange, in some cases, price change may be due to change of source of supply.The basis of this comparison is the price captured in the vendor cross reference(VCR).

1.2. Request For Quotation (RFQ)

1.2.1. Quotation to be captured for SET as well as at its components level. Theaccepted quotation must be saved so that when Engineering makes changes, theyare able to run cost evaluation to see the cost impact of their changes.

1.2.2. To be able to transmit RFQ & receive quotation electronically (e.g. using EDI or ifvendor does not have EDI, using Adobe Interactive Forms).

1.2.3. RQF to be sent to vendor with attachments such as drawings.

1.2.4. To be able to use vendor evaluation information as decision support for selectionof vendor after quotation has been received from vendors.

1.2.5. Selected quotation to be approved by purchasing manager before Vendor CrossReference (Purchasing Info Record) can be updated and used in purchase orders.($1000 3 levels).

1.3. Purchase Requisition

1.3.1. To be able to update PR price from quotation and if required, subject to anotherround of approval based on the changed prices.

Note: PR updating not required anymore, to solution using release strategy.

1.3.2. PRs created by MRP need may not be subjected to approval.


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1.3.3. PRs created manually for direct materials are to be approved at the document totallevel; maximum of 2 approval levels is required for direct material PRs & 4 levelsfor indirect materials.

1.3.4. Currently, there is a budget for each cost center for non-stock purchases. To beable to create budget by G/L account and at the point of PR creation, a year-to-date budget statement will be captured in the PR. If budget is exceeded, theapproval party will decide if the PR should be approved.

1.3.5. To control such that Purchase Requisitions can only be changed by requestors.Buyers must not change PRs, if any changes are required, should always revert torequestor to make the necessary changes and subject the changed PRs toanother round of approval if required.

1.3.6. Multiple purchase requisitions are to be combined and converted into onepurchase order to allow for volumetric discounts.

1.4. Purchase Orders (PO)

1.4.1. To be able to capture other than gross price other surcharges such as freight,discounts at PO item level. Discounts at PO header level are also required.

1.4.2. To be able to capture volumetric discounts as well as step discounts for use inpurchase orders.

1.4.3. Purchase orders are to be approved at document total level; maximum of 3approval levels for direct materials, 4 approval levels for indirect materials.

1.4.4. Two levels of PO acknowledgement is required per PO line item, 1st is purelyacknowledgement of PO receipt (email); the 2nd is delivery date & quantityconfirmation.

1.4.5. In the to-be system, to be able to define multiple delivery dates against 1 PO lineitem.

1.4.6. Goods receipt for indirect materials must be carried out as valuated GR. Invoiceverification is always 3-way match.

1.4.7. To be able to purchase high value fixtures for asset account and depreciated overtime. Multiple POs may be raised for one asset, to be able to capitalise into oneasset number. Total amount to be depreciated over time.

1.4.8. For procurement of some direct & indirect materials, to be able to make advance

payment as well as progressive payment reference to purchase order.1.4.9. To be able to list all purchase orders that have been invoiced but goods receipt not

carried out or not completely carried out.

1.4.10. The vendor might issue only a pro-forma invoice for advance payment. Thisnumber might be different when the final invoice is being issued by vendor. To beable to capture this invoice number instead of the pro-forma invoice number.

1.4.11. To be able to run a report on the number of payments made and the amountpaid against purchase orders.

1.4.12. Come the stipulated date on the invoicing plan, to be able to change the amountof the progressive payment dependent on cash flow situation. In some cases,may choose not to pay at all.

1.4.13. In the case of foreign currency, if an invoice is entered upfront, exchange diffmust be able to be cleared off by the system from the Accrual acct when goodsreceipt is being carried out.


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1.4.14. To be able to procure components of a SET individually through the normalprocurement process and inventories them.

1.4.15. To be able to raise purchase orders to procure additional materials directly for aproduction order, by-passing warehouse.

1.4.16. There are cases where purchase orders are raised to buy certain products froma vendor but the vendor would deliver the ordered goods incomplete, with someadditional work to be done. Makino would receive the goods and complete thework internally without raising any work orders to capture the work done and thecost incurred. To be able to capture cost incurred in such cases.

1.4.17. To be able to download approved purchase orders into CSV format and transmit

to Makino Japan.1.4.18. In the event of scraps due to vendor's fault, to be able to return defective parts

to vendor using a Return PO as long as the original PO has already beeninvoiced. In such cases, since the demand is still valid, to be able to reflect thatthe quantity returned will still be supplied (replaced) by the vendor.

1.4.19. When procuring SETs, must be able to capture BOM details on purchase ordersso that vendor can see the details of the SETs to be procured.

To look into how standard revision can be used to avoid having to create a newitem master and a new BOM every time a change affecting SET is made. Also, tolook into how the revision numbers of the SET & its details can be captured inpurchase orders, and also how existing open purchase orders can be traced and

changed to buy the SET with the new component instead of the originalcomponent.

Change of Requirement (27/7/12)

No need to explode SET BOM on PO, BOM details sent as attachment is goodenough.

1.4.20. To indicate in the PO line item that the item master is having a FAI (First ArticleInspection) and to capture this information on PO output form so that vendor isinformed of such requirement. QIR (Quality Information Record) to be updated bypurchasing department based on the requirement

1.4.21. To have a report of all the PO which are overdue by 3 months to be send /forwarded to respective vendors/ departments for expediting.

1.4.22. For replenishment through external procurement, to look at how schedulingagreement can be used with Kanban to handle the supply of bulky materialsdirectly to the shop floor by vendor, taking into consideration the shop floor spaceconstraints (parking lots).

1.4.23. For bulky materials, to raise purchase orders without delivery dates, only triggerdelivery when space is available in shop floor.

1.5. Sub-Contracting (From Inventory)

1.5.1. To be able to handle the procurement of MTCs from a supplier with componentssupplied by Makino.

1.5.2. For sub-contracting, system generated delivery note to be printed for the deliveryof components to the vendors.

1.5.3. For the processing of MTCs, to be able to handle the process of MTC supplierbuying one of the components from Makino.


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1.5.4. Besides components to be provided to sub-con vendor for services, to be able tocapture other components which are provided by the sub-con vendor in the BOM,purely for information only. The PO price for sub-contracting will already includethe price of the components provided by the sub-con vendor.

1.5.5. On the delivery note for component delivery, to print the BOM level belowcomponent provided to vendor.

1.5.6. Some components provided to sub-con vendors are serialised. To be able tocapture the same serial number on the processed part (different part number fromthat of the component) so as to have serial number traceability (where-use, where-from). This scenario is applicable in Buy-to-Stock only.

1.6. External Service Procurement

1.6.1. To be able to model painting arrangement for machined parts as well as boughtparts and to be able to charge cost of painting to the final produced machine.Painting is priced by machine by model.

1.6.2. To be able to capture the cost of painting at machine model level in some form ofmaster data or document, to be used as a reference whenever painting services isincurred and payment has to be made.

1.6.3. To be able to capture procurement of painting services as a logistic process, withcorresponding GR and IR processes.

1.6.4. Other than painting the standard parts of a machine, if special options are selectedby customers, painting may also be required for the selected options. The

standard rate per model for painting does not include the painting of specialoptions. PIC to provide more details on how the vendor charges for the painting ofspecial options, by surface area?


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2. Detailed Explanations

2.1. Overall Process

Request For Quotation (RFQ) Reference 1.2


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Purchase Orders Reference 1.4


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Scheduling Agreement Without Kanban


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Scheduling Agreement without Kanban

NoteScheduling Agreements createdfor Kanban must be assigned theKanban storage location.JIT schedule is not required ifKanban is used.

Kanban & MRP can be integrated,i.e. dont exclude kanban loc fromMRP. But must make sure theschedule lines generated by MRPare only used as preview, notdelivery. Delivery is only triggeredby kanban container status.


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Sub-Contracting with Components supplied to Vendor Reference 1.5


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External Service Procurement Reference 1.6


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2.2. Detail explanation

2.2.1. Reference 1.1 (Master Data)

All purchasing master data are created for a specific purchasing organization. Purchasinginfo records are created for material/vendor/purchasing org/plant combination. For eachvendor, a default currency code is defined in the vendor master record, but it is possible tocreate info records for the same vendor, different material using different currency.

As such, it is possible to capture for different materials, from the same vendor, in differentcurrencies and for one material, to be able to buy from different vendors in differentcurrencies. In the event the same material from the same vendor is required for the sameplant, but priced differently, a purchasing info record can be created using a different

purchasing organisation.

To prevent over dependency on a single source of supply, quota arrangement can beused. The system will automatically determine the source of supply to award the requestto base on quota rating calculated taking into consideration the cumulated allocatedquantity to each source of supply. However, it is also possible for planning run toautomatically split the requirement quantity across the several sources of supply based ona predefined quota.

Direct materials (inventoried) as well as indirect materials (non-inventoried) can beprocured using the various purchasing document in SAP. For direct materials, material

master records must be created with the relevant views. However, for indirect materials, itis possible to create purchasing document without material master records. In thepurchasing document, the description, the unit of measure, material groups etc. info mustbe specified each time such materials are to be purchased. If such items are to beprocured repeatedly, it is recommended that a material master record (with a non-stockmaterial type) be created to capture all relevant info. Such materials will be not beinventoried even though the material master record exist.

2.2.2. Reference 1.2 (RFQ)

RFQs can be created manually or created reference to PRs. Info captured in RFQincludes the materials/services required, quantity required and delivery dates. Additional

information may be specified in the form of text or attachments. Selected vendors will beinvited to participate in the bidding exercise and upon these vendors submitting theirquotations with other relevant conditions; selection will be carried out, not just base oncost, but also taking into consideration other factors (vendor evaluation info). Theselected quotation will be subjected to approval before the quoted price gets updated intopurchasing info records and used in subsequent purchases. In SAP, approval ofquotation can be defined using release strategy, up to maximum of 8 approval levels canbe defined.

Note: For attachments (linked documents) to be transmitted electronically to vendors, toconsider the volume & size. The number of attachments & the size of file may be very big,thus, may not be practical to transmit electronically. To take this into consideration ifelectronic transmission is required.

In Makino, RFQs can be used for getting quotations from vendors for materials which mayor may not be SETs. It is a requirement in Makino for SET components prices to be


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captured so as to allow R&D to carry out cost evaluation in the event engineering changesare to be made.

If SET materials are to be quoted for, RFQs will be created for the SET as well as for thecomponents of the SET. Exploding BOM for purchased parts is not a standard function inSAP, an enhancement is required. When the quotation is received from vendor, theselected quotation will be subjected to approval and the price for the SET as well as itscomponents will then be updated into purchasing info record.

For R&D to carry out cost evaluation, a special costing run will have to be carried outusing a costing variant that reads the material price from purchasing info records. Theresult of this costing run will not affect the valuation of inventory; this is purely forevaluation purpose. Please refer to processes in Costing Module for more info.

Upon receiving quotations from vendors, if quoted price is less than PR price, the PRscan be converted to PO but if the quoted price is more than the PR price, the PRs will bereturned to the requestors for amendments. This scenario of go-ahead for conversion ofPRs or to reject PRs can be solutioned by defining a final release level in the releasestrategy. The buyers will set the final release codes for the PRs that are to be convertedto PO or reject PRs if quoted price is higher than that in PRs. Requesters will amend thePRs and the changed PRs will then be subjected to another round of approval.

Note: Makino to confirm if there is any audit violation for buyers to carry out finalrelease of PR.

2.2.3. Reference 1.3 (Purchase Requisitions)

Purchase Requisitions can either be created manually by users or automatically byMPS/MRP run or by production orders (for externally processed operation). PRscreated by MRP need may not be subjected to approval but PRs created manually fordirect materials are to be approved at the document total level; maximum of 2 approvallevels is required & 4 levels for indirect materials. Release strategy can be set up tosubject PRs to total release, number of approval levels depending on accountassignment, if blank - 2 levels, else, 4 levels.

Currently, there is a budget for each cost center for non-stock purchases. In SAP, it is

possible to define a budget by G/L account, however, at the point of PR creation, tocarry out budget check and capture a year-to-date budget statement in the PR will onlybe possible through an enhancement. If budget is exceeded, the approval party willdecide if the PR should be approved.

For direct materials, purchase requisitions created must not be changed by buyers, ifany changes are required, the PRs should always be reverted to requestors to make thenecessary changes. In the case of indirect materials, it is possible that buyers changethe price captured in PRs since the original price may just be an estimated price. Thechanged PRs may be subjected to another round of approval if required. In SAP,authorisation can be set such that only requestor can amend the PR, additionally,buyers may be authorized to change the price for indirect materials PRs and set release

code to carry out the final release of PRs.


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2.2.4. Reference 1.4 (Purchase Orders)

Purchase Orders can be creating by converting purchase requisitions and in somecases, purchase orders may be created manually. Against each PO line item, there canbe 1 or several delivery dates specified. Typically PRs are converted to POs on a 1-to-1basis so that the link to the PR can be referenced. However, there may be cases thatmultiple PRs are created for the same material, may or may not be of the same deliverydates, and in order to benefit from volume discounts, the PRs are to be combined into 1PO line item. In SAP, it is possible to achieve the many-to-1 conversion while keepingthe PR reference using transaction ME59 (Create PO automatically via PR), withschedule line indicator marked. Other than volumetric discounts, it is also possible tocapture step discounts. (Please refer to slides used in the process walk-thru for

purchasing.)For each PO line item, other than capturing the gross price, it is also possible to captureother pricing elements such as freight, custom duty, discount etc. in percentage well asabsolute amounts. It is also possible to capture discounts at PO header level if required.

Purchase orders can be created to procure materials directly for consumption (e.g. forproduction orders). Account assignment category in PO line item determines if the itempurchased is for inventory (blank acct assignment) or for consumption (specifiedaccount assignment).

When procuring SETs, it is required that the SET BOM details be sent to the vendoralong with the PO. This is so that vendor can see the details of the SETs to beprocured. As BOM explosion for purchased items is non-standard in SAP plus the factthat some SETs may consist of hundreds of components, the BOM details can be sentas a purchase order attachment to the vendor.

Normally, parts belonging to a SET are not purchased individually, the complete SETsare purchased. However, in special cases (e.g. damages of loose components),components of a SET may be purchased as loose items. As long as material masterrecord is created with relevant purchasing data for the SET components, the normalpurchasing process can be used.

Purchase orders are to be approved at document total level; maximum of 3 approvallevels for direct materials, 4 approval levels for indirect materials. Release strategy canbe set up to subject POs to total release, based on account assignment, if blank - 3approval levels, else, 4 approval levels.

Once POs have been finally approved and sent to vendors, two levels of PO

acknowledgement is required per PO line item, 1st is purely acknowledgement of POreceipt (email) by vendor; the 2nd is delivery date & quantity confirmation. In SAP, POline items can be set with confirmation control to include 2 levels of confirmation, 1stbeing just an acknowledgement of PO receipt & 2nd being a shipping notification whichis MRP & GR relevant.

Goods receipt carried out for direct materials will always be valuated, in the case ofindirect materials, it is possible to carry out GR non-valuated but in Makino, GR forindirect materials will always be carried out as valuated.

One or several POs may be created to procure high value fixtures for asset account and,the total amount will be depreciated over time. In SAP, PRs/POs for assets will beraised with account assignment "A- Asset". The asset numbers must have already beencreated in Asset Management module. In some cases, at the point of PR creation, it is

possible that the asset number has yet to be created, thus the PR can be created withUnknown account assignment. However, at the point of PO creation, the assetnumber must have already been created and used as account assignment. Makino


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team has been informed of this prerequisite. If asset number can only be assigned uponreceipt, an alternative would be to buy & receive into inventory first and then issued toasset at a later point in time.

For procurement of some direct & indirect materials, advance payment (certain % oreven 100%), and in some cases, progressive payment may be required before vendorsdeliver the ordered goods. Advance payment & progressive payment, amount (absoluteamount or %) & date can be captured in PO line item as invoicing plan. When requestfor payment is received (in the form of profoma invoice), the invoice should be enteredinto the system reference to purchase orders. Payment run can be carried out as pernormal (Db GR/IR Vendor, Cr Bank), and when the goods are received eventually, thegoods receipt will be carried out reference to the purchase order (Db Inventory, Cr

GR/IR Accrual), Invoice receipt (Db GR/IR, Cr Vendor). The actual invoice number canbe updated against the original invoice document in the system. For progressivepayment, based on the dates captured on the invoicing plan, a settlement program canbe executed to create the account payable item for payment; this can also be carried outusing the standard IV transaction. Invoice plan amount can be changed during invoiceverification (manual). If invoice amount is more, invoice will be blocked for payment, butat the time of payment after unblocking the total amount, Finance department (AP) candecide how much to pay. The remaining will be an open item for the vendor. If invoiceamount is less then invoice amount will not be blocked. Report can be executed todisplay the number of payments made and the amount paid against purchase orders.

There are cases where upon goods receipt of purchased parts from vendors, additionalwork need to be carried out on the parts before they can be used in production (could bedue to minor quality issues that dont warrant a return to vendor). Rework orders can becreated to track the process and cost of the rework can also be captured and expensedto cost center(s) or to a specific G/L account.

Scheduling Agreement

Other than using purchase orders to procure materials/services, Scheduling Agreementscan also be used. Scheduling Agreements are especially useful in cases where the totalquantity required over a period of time & price can be determined ahead but deliverydates are to be determined later based on demands that will arise over time. Base ondemands along the timeline, planning run can create schedule lines and with that, aforecast schedule can be generated and provided to vendors as a preview, not relevantto delivery. For a shorter interval closer to current date, a JIT schedule, which is

delivery relevant can be generated and provided to vendor to trigger delivery.Scheduling agreement can also be used in conjunction with Kanban, and in such cases,delivery will be triggered by kanban status, JIT schedule will not be required.

2.2.5. Reference 1.5 (Sub-Contracting From Inventory)

The process of subcontracting can be used for the procurement of parts such as MTCswhere components are provided by Makino to vendors for the processing of a higherBOM Level. The vendor may also provide additional components to assemble thematerial ordered. The price charged by the vendor includes the price of materials thevendor provides and the value-adding services, it does not include the cost of partsprovided by Makino.

Sub-con purchase orders are created just like normal POs, with item category L.System will either explode BOM of the purchased part if BOM is available orcomponents to be provided may also be specified against the PO line item manually.


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The PO will be sent to the vendor, and meanwhile, the components provided to vendorwill be physically picked & delivered to the vendor. Logically, these componentsdelivered to the vendor will be transferred into Sub-con stock. Upon goods receipt ofthe purchased part (higher level of BOM), the sub-con stock will be drawn downautomatically.

Procurement of MTCs in Makino will be processed using sub-contracting purchaseorders. A BOM will be created to capture the components provided to the vendor for theassembly of MTCs. Besides that, it is also required to capture parts provided by thevendor in the BOM. In SAP, parts provided by vendors can be defined just like anyBOM components but the Material Provision indicator must be set for such itemsindicating that they are provided by vendor. This is required so that MPS/MRP will

exclude such items in planning run.For the delivery of components to vendor, outbound delivery will be created for issuingcomponents to vendors. Delivery note can be printed against the outbound delivery.For the processing of MTCs, the vendor also purchases components from Makino; thesewill be handled as normal sales process in Makino.

Some components provided to sub-con vendors are serialised. In order for the serialnumber of the component to be reflected as the serial number of the assembled part,serial number profile (mandatory serial number for inventory management) is assignedto both the component & the processed part. When the component is received intoinventory, serial number will be captured. At the point of transferring the component tothe sub-con vendor, serial numbers will be specified for the quantities physically issuedto the vendor. When the components have been processed and returned to Makino, at

the point of receiving, the processed part will be received with serial numbers (assignmanually), the serial number is the same as the serial number of the component.

Upon completing the sub-con processes, vendor will invoice Makino; invoice verificationwill be carried out as per normal (3-way match).

2.2.6.Reference 1.6 (External Service Procurement)

Painting for machine parts is done by vendor on an on-going basis but painting servicesis not priced for individual parts painted, rather it is priced at machine level by model.Currently, no purchasing document is created for painting as it is operationally notfeasible.

For scheduling purpose, painting operations will be modeled as internal operations inroutings of individual parts, to be carried out in a work center SUBP, which is definedas relevant to scheduling but not relevant to costing. Cost for painting will not becaptured at the parts level, but added into the final assembly by means of an operationwith a unit rate equivalent to that of painting the machine model, thus capturing paintingcost into the cost of goods manufactured.

The procurement of painting services will be modeled using External ServiceProcurement in MM. A Service PO (item category D) with account assignment (nettingoff the amounts charged into production orders of machines) can be created for thewhole year capturing the agreed rate for painting per machine model. Based on thenumber of machines completed, service entry (GR) can be made. When the vendorinvoice is received, 3-way invoice match can be carried out, thus invoices verification islinked to logistic processes, not a direct entry in AP.

Other than painting the standard parts of a machine, if special options are selected bycustomers, painting may also be required for the selected options. The standard rate


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per model for painting does not include the painting of special options. Such servicesmay be modeled as a misc. service with an agreed rate by surface area, captured in theservice PO along with the normal painting rates per machine model.

External service procurement can also be used for procurement of general services, aslong as there is a need to receive the services rendered for the purpose of subsequentinvoice verification. Service master records can be created to represent type of servicesto procure. Create service purchase orders, subject to approval and when the serviceshave been carried out, process service entry (GR) and subsequently, carry out invoiceverification (3-way match).


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3. System Processes/Functionalities

3.1. Organizational LevelsThe structure of an enterprise is represented in the SAP System by the following organizationallevels:

ClientA grouping or combination of legal, organizational, business and/or administrative units with acommon purpose.Example: a corporate group.

Company codeThis level represents an independent accounting unit within a client. Each company code has its

own balance sheet and its own profit and loss statement.Example: a subsidiary company, member of a corporate group.

PlantThis represents the operational unit within a company code where buying, selling, production andinventory control is carried out.Example: production facility, branch office.

Purchasing organizationAn organizational unit responsible for procuring materials or services for one or more plants andfor negotiating general conditions of purchase with vendors. The purchasing organizationassumes legal responsibility for all external purchase transactions.

Purchasing group

Purchasing organization is further subdivided into purchasing groups (buyer groups), which areresponsible for day-to-day buying activities.A purchasing group can also act for several purchasing organizations.

Assignments of Organizational Levels "Plant", "Purchasing Organization", and"Company Code"

Plant - purchasing organization/company codeIn the SAP system, a plant must be assigned to one or more purchasing organizations.

Furthermore, a plant must always be assigned to a company code.

Purchasing organization company code

A purchasing organization can (but need not) be assigned to a company code.

If you do not assign a company code to a purchasing organization, the latter can engage inprocurement operations for every company code.A prerequisite for this is that the plant for which procurement is carried out is assigned to thepurchasing organization.

3.2. Master Data for Purchasing

MM Purchasing processes the following types of data:

Material Master Data

The material master database (often referred to simply as the "material master",comprising all the individual material master records stored in the system) contains

descriptions of all materials that an enterprise procures, produces, and keeps in stock. Itis the central repository of information on materials (such as inventory levels) for theenterprise.


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Vendor Master Data

The vendor master contains information about the vendors that supply goods and/orservices to an enterprise. Vendor master record contains the vendors name andaddress, as well as data such as currency used for ordering, payment terms, names ofimportant contact persons (sales staff). Since, to the accounts department, vendors aregenerally creditors (accounts payable), the vendor master record also containsaccounting information, such as the relevant control account (reconciliation account) inthe general ledger. As such, vendor master records are maintained by both Accountingand Purchasing.

Purchasing Info Record

Equivalent to Vendor Cross Reference in Makino. . An info record thus represents amaterial-vendor relationship. Capturesinformation such as unit of order, price, vendorspart number, discounts, surcharges, maximum order quantity etc. for a specific vendor,specific material at purchasing organization and/or plant level. You can createpurchasing info records for different procurement types (standard, subcontracting,pipeline, consignment).

Source ListThe source list specifies the possible sources of supply for a material. It shows the time periodduring which a material may be ordered from a given vendor.

Quota ArrangementQuota arrangement specifies which portion of the total requirement of a material over a

certain period is to be assigned to particular vendors on the basis of quotas.

3.3. Purchasing Processes3.3.1. Purchase Requisition (PR)A purchase requisition is a request or instruction to Purchasing to procure a certain quantityof a material or a service so that it is available at a certain point in time.

A purchase requisition consists of a number of items, for each of which a procurement typeis defined. The following procurement types exist:

Standard Subcontracting Consignment Stock transfer External service

An item of a requisition contains the quantity and delivery date of the material to besupplied or the quantity of the service to be performed.

For items to be supplied by subcontractors, you can specify the necessary input materialsor components that are to be provided to the subcontractor for assembly or processing inrespect of each delivery date stipulated.


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3.3.2. Request For Quotation (RFQ)A Request For Quotation (RFQ) is an invitation extended to a vendor by a purchasingorganization to submit a quotation (bid) for the supply of materials or performance ofservices.

An RFQ consists of the RFQ header and the items RFQ header - Contains general information on the RFQ, such as the vendors

address RFQ Items - Contain the total quantities and delivery dates for the materials or

services specified in the RFQ.

A Quotation is the vendors response to a RFQ issued by a purchasing organization for thesupply of materials or performance of services subject to specified conditions. It is legallybinding on the vendor for a certain period.

An item of a quotation may contain a delivery schedule made up of a number of schedulelines in which the total quantity is broken down into smaller quantities to be delivered on thespecified dates over a certain period.

3.3.3. Purchase Orders (PO)Purchase Orders are the buying entitys formal request or instruction to a vendor (externalsupplier) to supply certain quantity of materials services at or by a certain point in time.

A purchase order consists of a document header and a number of items.The information shown in the header relates to the entire purchase order For example, the terms ofpayment and the delivery terms are defined in the header.

A procurement type is defined for each of the document items. The following procurement types exist: Standard Subcontracting Consignment Stock transfer External service

The total quantity of materials to be delivered or services to be performed that is defined in thepurchase order item can be subdivided in the schedule lines into various partial quantities with therelevant delivery dates.

Pricing Conditions can apply at various levels: to the entire purchase order At item level, to the material to be supplied or to the set of service specifications in the case of

services At service line level for individual services (tasks or activities)

For each PO line item, costs can be apportioned among various Controlling objects via the accountssignment. Vendors can issue confirmations to the relevant purchasing organization indicating theircompliance or non-compliance with scheduled delivery dates


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Scheduling Agreement (SA)Scheduling Agreements is a form of outline purchase agreement under which materials areprocured on predetermined dates within a certain time period.

A scheduling agreement consists of a number of items, for each of which a procurement typeis defined. The following procurement types exist:

Standard Subcontracting Consignment Stock transfer

Delivery of the total quantity of material specified in a scheduling agreement item is spreadover a certain period in a delivery schedule, consisting of lines indicating the individualquantities with their corresponding planned delivery dates. These schedule lines may bemanually created or created automatically by planning run based on actual demands.

Scheduling agreements, you can work with orwithout release documentation. If used withrelease documentation, schedule lines stored in the system are not transmitted to the vendoruntil you explicitly create a scheduling agreement release (which may take one of two forms:a forecast delivery schedule or a JIT delivery schedule).

Forecast (FRC) delivery schedule- Provides the vendor with longer-term data regarding the quantities needed of a

material and when delivery is required, the timing of delivery is usually expressedin terms of calendar months or weeks. Forecast schedules are not deliveryrelevant.

Just-in-Time (JIT) delivery schedule- Provides the vendor with data on required quantities and desired delivery

dates/times covering the near future, the timing of delivery is usually expressed interms of specific days or even times of the day. JIT Schedules are deliveryrelevant.

Scheduling Agreement can be assigned to Kanban Control cycle for Kanban replenishment.

3.3.4. External Service ProcurementExternal Services Management is an application component within the Materials Management (MM)

module. It provides a basic process for the procurement of externally performed services, supportingthe complete cycle of bid invitation (RFQ), order placement phase, and acceptance of services, as wellas the invoice verification process.

MM External Services Management offers two basic ways of specifying services:

1. As planned services with description, quantity, and price.

By planned services we mean services whose nature and scope is known to you at the startof a procurement project or transaction.

At the time the services are requested, the individual specifications are entered either with theaid of a service master record or directly as short and long texts. Price and quantity arespecified in both cases.

2. As unplanned services with the setting of a value limit only.

By unplanned services, we mean services that cannot be specified in detail because theirprecise nature and scope are not initially known, or services which - for various reasons - youdo not wish to plan. Unplanned services therefore have no descriptions.


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They are entered in the form of maximum values in the relevant currency. Services may beperformed up to a value not exceeding these value limits. This ensures an element of costcontrol.

You can also carry out a bid invitation process (RFQ) and evaluate the quotations submitted inresponse using the price comparison list function. You can then place an order with the desiredvendor.

Services rendered can be recorded using service entry sheets and subjected to serviceacceptance (equivalent to GR).

Following acceptance, the vendors invoice can be verified and released for payment.

4. RICEFW Considerations

S/N Title/ Description Type Solution

1 Explode SET BOM of a certain revision level (if assigned)& captured in RFQ to be sent to vendors.When quotation is received, the selected quote will beupdated at both the SET level as well as its componentlevel. (this part should be standard)

E

3 Transmit RFQ to vendors using Adobe Interactive Forms. E

4 Transmit documents such as specs & drawings attached toRFQ electronically to vendors

E

5 Checking of budget at time of PR creation and capturingbudget statement in PR.

E

6 PR rejection, in the form of email (e.g. MS outlook), is tobe sent to requesters using workflow.

E

7 Generate the equivalent of the current cost saving report,logics and format of reports will be discussed in a separatesession.

E

8 Quality Information Record to be copied to the PO outputform. (Please see QMR BBP doc).

R

9 Forwarding report on overdue POs to vendor in a specifiedformat via email, to be done via enhancement/Form E+F

10 Transmit PO, PO receive PO acknowledgement &Advance Shipping Notification

E To implement EDI for

sending initial PO (via

output message),

receiving PO

Acknowledgement, &

receiving ASN.


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Page23of33

AnnexureA:Fit/GapAnalysis

Ma

kinoRequirement

To-Be(SAP)

Fit/GapAnalysis

Procurementfromasinglevendorm

aybecarried

out

inmorethanonecurrency.Tobeableto

captureforthesamevendor,differe

ntmaterials,

the

priceindifferentcurrencies.

PurchasingInfoR

ecordismaterial&vendorspecific;thus,

itispossibletoca

pturefordifferentmaterials,fromthe

samevendor,ind

ifferentcurrencies.

Standard.

For

onematerial,tobeabletobuyfro

mdifferent

vendorsindifferentcurrencies.

Purchasepricecanbecapturedinpurchasinginforecord

(material&vendo

rspecific)inthecurrencydefinedforthe

vendor.

Standard

For

commonpartsusedinproductio

naswellas

customerservice,currently,PICprocuresata

pricewhichisdifferentfrom

that

bycustomer

service.Ifcustomerserviceismodeledunderthe

sam

eplantasproduction,tobeabletocapturefor

the

samematerial,samevendor,diffe

rentprice.

Purchasing

Info

Records

are

created

for

Vendor/Material/P

lant/Pur.Organisationcombinatio

n.IfCs

ismodeledunder

thesameplantasproduction,cancreate

adifferentpurch

asingorganisationtoCS

procu

rement,

thus,canpurchas

eatadifferentprice.

Standard

For

somematerials,tobeabletosplitrequirement

qua

ntitytobeprocuredfrom

variou

ssourcesof

supplybasedonapredefinedquota.

Use

Quota

Arra

ngementwith

splitting

onlyfo

rsome

materials.

Standard

Tobeabletocreatematerialmaste

rrecordsfor

com

monlyprocuredindirectmateria

ls,thisisto

avoidhavingtomanuallyenterdata

inPR/PO,to

elim

inatetypoerrors.

Pricesforsuchmaterials

are

tobekeptinPurchasingInfoRec

ords.Notall

indirectmaterialsneedtohavema

terialmaster

recordcreated.

CreatesuchmaterialswithNon-stock(NLAG)

material

type.

Standard


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Tobeabletocapturethevendorspa

rtnumberin

Ven

dorCrossReference(PIR).Purc

haseorders

will

becreatedusingMakinospartnu

mberbutthe

vendorspartnumbermustbecapturedand

prin

tedonthePOs.

FieldinpurchasingInfoRecord:EINA-IDNLF

Standard

Periodically,areportisexecutedt

oshow

cost

savingsduetovendorspricechan

ge,insome

cases,pricechangemaybeduetochangeof

sourceofsupply.Thebasisofthisc

omparisonis

the

pricecapturedinthevendorcro

ssreference

(VC

R).

Thepricecapture

dinthepurchasinginforecordis

tagged

toavalidityperiod.Anypricechangeswillbecapturedas

changehistory,andassuch,itwillbepossibletog

enerate

theequivalentofthecurrentcostsavingreport.

Costsavingrepor

tlogicsandformatofwillbediscussedin

aseparatesession.

Standard

Report

Quo

tationtobecapturedforSETaswellasatits

com

ponentslevel.Theacceptedquo

tationmust

bes

avedsothatwhenEngineeringm

akes

changes,theyareabletoruncostevaluationto

see

thecostimpactoftheirchanges.

UsingthestandardRFQfunctioninSAP,quotation

prices

canbeupdatedin

topurchasingInfoRecords.Forthe

selectedvendor,updatethequotedpriceforbothth

eSET

levelandthecomponentsbelowtheSETs.Inorderto

carryoutcostingforthepurposeofcostevaluationfor

engineeringchange,aspecialcostingrun(usingadifferent

costingvariant)ca

nbecarriedouttousepricefrom

purchasingInfoRecordifavailable,elsepickfromv

aluation

price.

However,forSET

BOMtobeexploded&capturedinRFQ,

enhancementwill

berequired.

Standard

Enhancement

TobeabletotransmitRFQ&receive

quotation

elec

tronically(e.g.usingEDIorifven

dordoesnot

haveEDI,usingAdobeInteractiveFo

rms).

EDItransmissionisavailableaslongasbothMakin

o&

vendorhaveEDIsetups.

ElseAdobeIntera

ctiveForms.

Standard

Enhancement


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Page25of33

RQF

tobesenttovendorwithattachm

entssuch

asd

rawings.

DocumentlinkscanbecreatedforRFQitemstolink

documentssucha

sdrawingswhicharecheckedinto

centraldocument

repository.Thedoclinkisprinted

on

RFQ&transmittedtovendor.

Asforlinkeddocu

mentstoalsobetransmitted

electronically,toc

onsiderthevolume&size.Then

umber

ofattachments&thesizeoffilemaybeverybig,thus,may

notbepracticalto

transmitelectronically.Totakethisinto

considerationifelectronictransmissionisrequired.

Standard

Enhancement

Tobeabletousevendorevaluationinformation

asd

ecisionsupportforselectionofve

ndorafter

quo

tationhasbeenreceivedfromven

dors.

StandardSAPfun

ction.VendorEvaluationcanbec

alledat

thepointofcomparingquotationsenteredtoaiddecision

support.

Standard

Selectedquotationtobeapprovedby

purchasing

managerbeforeVendorCrossRefere

nce

(PurchasingInfoRecord)canbeupdatedand

usedinpurchaseorders.($1

0003levels).

ReleaseStrategie

scanbesetuptosubjectRFQst

ototal

release,numbero

fapprovallevelsdependingonam

ount,if

$1000-3levels.

Standard

TobeabletoupdatePRpricefromquotationand

ifrequired,subjecttoanotherroundofapproval

basedonthechangedprices.

PRupdatingnotR

equiredanymore,tosolutionusin

g

releasestrategy.

BuyerwillcarryoutfinalreleaseifPRpricePIRprice(quotationprice),

reject(workflow).

RequestorchangePR,re-approv

al,then

buyerwillconvert

PRtoPO.

IfPRrejectionistobesentasemail(e.g.outlook),minor

enhancementisrequired.

TosetauthorisationPRscanonlybechangedby

requestor.Buyerswillbeauthorisedtosetthefinal

release

code.

Standard

Enhancement

Standard


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Forindirectmaterials,PRspricecanalsobechangedby

buyers.

Note:Makinoto

confirmi

fthereisanyauditvio

lation

forbuyerstocar

ryoutfinalreleaseofPR.

PRs

createdbyMRPneedmaynotb

esubjected

toa

pproval.

PRs

createdmanuallyfordirectmaterialsareto

bea

pprovedatthedocumenttotallev

el;maximum

of2

approvallevelsisrequiredfordirectmaterial

PRs

&4levelsforindirectmaterials.

ReleasestrategycanbesetuptosubjectPRstoto

tal

release,numbero

fapprovallevelsdependingonac

count

assignment,ifblank-2levels,else,4levels.

Standard

Currently,thereisabudgetforeachc

ostcenter

fornon-stockpurchases.Tobeable

tocreate

bud

getbyG/LaccountandatthepointofPR

creation,ayear-to-datebudgetstatem

entwillbe

capturedinthePR.Ifbudgetisexceeded,the

app

rovalpartywilldecideifthePRsh

ouldbe

app

roved.

BudgetcanbedefinedforG/Lacct(costcenter).

However,checkin

gofbudgetattimeofPRcreation

and

printingofbudget

statementonPRisnon-standard.

Standard

Enhancement

TocontrolsuchthatPurchaseRequis

itionscan

only

bechangedbyrequestors.Buye

rsmustnot

changePRs,ifanychangesarerequired,should

alwaysreverttorequestortomakethenecessary

changesandsubjectthechangedPR

stoanother

roundofapprovalifrequired.

Authorisationcan

besetsuchasonlyrequestorcan

amend

thePR.

AslongasthePu

rchaseRequisitionischanged,it

willbe

subjectedtore-ap

proval.

Standard

Standard

Multiplepurchaserequisitionsaretobecombined

and

convertedintoonepurchaseordertoallowfor

volu

metricdiscounts.

Usingtransaction

ME59(CreatePOautomaticallyv

iaPR),

withscheduleline

indicator,cancombineseveralPRsinto

onePOlineitemwithseveralschedulelines,each

capturingitsPRreference.MustsetautoPOformaterials

inmaterialmaster.

Standard


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Page27of33

Tobeabletocaptureotherthangrosspriceother

surchargessuchasfreight,discounts

atPOitem

leve

l.DiscountsatPOheaderlevela

realso

required.

Freight,discounts

etc.canbedefinedasconditiontypes

in%orinabsoluteamounts,capturedinpurchasing

info

recordsandused

whenpurchaseordersarecreated.

Standard

Tobeabletocapturevolumetricdiscountsaswell

ass

tepdiscountsforuseinpurchase

orders.

Scales(quantitya

swellasintervals)canbedefined

for

conditiontypes.

Standard

Purchaseordersaretobeapprovedatdocument

tota

llevel;maximumof3approvallev

elsfordirect

materials,4approvallevelsforindirectmaterials.

ReleasestrategycanbesetuptosubjectPOstoto

tal

release,basedon

accountassignment,ifblank-3

approvallevels,else,4approvallevels.

Standard

Two

levelsofPOacknowledgementisrequired

per

POlineitem,1stispurelyacknow

ledgement

ofP

Oreceipt(email);the2ndisdeliverydate&

qua

ntityconfirmation.

POConfirmationcansetupconfirmationcontrolto

include2levelsofconfirmation,1st beingjustan

acknowledgementofPOreceipt&2ndbeingashipp

ing

notificationwhich

isMRP&GRrelevant.

Standard

Inth

eto-besystem,tobeabletodefinemultiple

deliverydatesagainst1POlineitem.

Multipledeliverys

chedulescanbedefinedperPOline.

Standard

Goo

dsreceiptforindirectmaterialsm

ustbe

carriedoutasvaluatedGR.Invoicev

erificationis

always3-waymatch.

Canbesetinpurchasinginforecord&defaultedint

o

purchaseordersthatGRmustbevaluated.

Standard

Tobeabletopurchasehighvaluefixturesfor

assetaccountanddepreciatedovertime.

MultiplePOsmayberaisedforoneasset,tobe

able

tocapitaliseintooneassetnumb

er.Total

amounttobedepreciatedovertime.

RaisePRs/POsw

ithaccountassignment"A-Asset".The

assetnumbersmusthavealreadybeencreatedinA

sset

Managementmod

ule.

InSAP,atthepointofPRcreation,itispossibletha

tthe

assetnumberhas

yettobecreated,thusthePRca

nbe

createdwithUnknownaccountassignment.However,at

thepointofPOcreation,theassetnumbermusthave

alreadybeencrea

tedandusedasaccountassignm

ent.

Makinoteamhas

beeninformedofthisprerequisite

.If

assetnumbercan

onlybeassigneduponreceipt,an

Standard


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Page28of33

alternativewouldbetobuy&receiveintoinventory

first

andthenissuedtoassetatalaterpointintime.

For

procurementofsomedirect&ind

irect

materials,tobeabletomakeadvancepaymentas

wellasprogressivepaymentreferenc

eto

purchaseorder.

Whenrequestfor

paymentisreceived(intheformof

invoice),theinvoiceshouldbeenteredintothesystem

referencetopurch

aseorders.Paymentruncanbe

carried

outaspernormal

(DbGR/IRVendor,CrBank),and

when

thegoodsarereceivedeventually,thegoodsreceip

twillbe

carriedoutreferencetothepurchaseorder(DbInventory,

CrGR/IRAccrual),Invoicereceipt(DbGR/IR,CrVendor).

Tocapturedownpayment&progressivepaymenta

mount

&dateinthePOlineitemasinvoicingplan.Theam

ount

canbedefinedas

anabsoluteamountorasapercentage.

Baseonthedates

capturedontheinvoicingplan,a

settlementprogramcanbeexecutedtocreatethea

ccount

payableitemforp

ayment;thiscanalsobecarriedo

ut

usingthestandardIVtransaction.

Standard

Tobeabletolistallpurchaseordersthathave

bee

ninvoicedbutgoodsreceiptnotc

arriedoutor

not

completelycarriedout.

Standardreports/listavailable.

Standard

The

vendormightissueonlyapro-for

mainvoice

foradvancepayment.Thisnumberm

ightbe

diffe

rentwhenthefinalinvoiceisbein

gissuedby

vendor.Tobeabletocapturethisin

voice

num

berinsteadofthepro-formainvoicenumber.

Itispossibletoov

erridethepro-formainvoicenumb

erwith

thefinalinvoicenumbereventhoughtheinvoiceha

sbeen

posted

Standard

Tobeabletorunareportonthenum

berof

paymentsmadeandtheamountpaid

against

purchaseorders.

Standardreports/listavailable.

Standard


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Com

ethestipulateddateontheinvoicingplan,to

bea

bletochangetheamountoftheprogressive

paymentdependentoncashflowsitu

ation.In

som

ecases,maychoosenottopaya

tall.

Invoiceplanamou

ntcanbechangedduringinvoice

verification(manu

al).Ifinvoiceamountismore,invoicewill

beblockedforpayment,butatthetimeofpayment

after

unblockingthetotalamount,Financedepartment(A

P)can

decidehowmuch

topay.Theremainingwillbeano

pen

itemforthevendo

r.Ifinvoiceamountislesstheninvoice

amountwillnotbe

blocked.

Standard

Tobeabletoprocurecomponentsof

aSET

individuallythroughthenormalprocurement

processandinventoriesthem.

AslongasmaterialmasterrecordsofSETcomponents

havebeenmainta

inedwiththerelevantviews&da

ta,they

canbepurchased

individually,justlikeanyother

purchasedpartsu

singthenormalprocurementproc

ess.

Standard

Tobeabletoraiseapurchaseordertoprocure

add

itionalmaterialsdirectlyforaprod

uctionorder,

by-p

assingwarehouse.

PurchaseOrderswillbecreatedforaccountassignment

otherthanblank.StandardSAPfunction.

Standard

The

rewerecaseswherepurchaseor

dersare

raisedtobuycertainproductsfroma

vendorbut

the

vendorwoulddelivertheordered

goods

inco

mplete,withsomeadditionalworktobedone.

Mak

inowouldreceivethegoodsand

completethe

workinternallywithoutraisinganywo

rkordersto

capturetheworkdoneandthecostin

curred.

Tobeabletocapturecostincurredin

suchcases.

Definematerialas

externallyprocured.Buyintoinv

entory,

usestockreworkproceduretocarryoutthenecessary

processestorectifytheincompleteness,costwillbe

capturedinthereworkproductionorder

Standard

Tobeabletodownloadapprovedpur

chaseorders

into

CSVformatandtransmittoMakinoJapan.

ThisisaninterfacerequirementandMakinoMISteamis

alreadylookingintothis.

MakinoMIS

ToindicateinthePOlineitemthattheitem

masterishavingaFAI(FirstArticleIn

spection)

and

tocapturethisinformationonPO

outputform

QualityInformationRecord(materialvendorplant

combination)can

becreatedtocapturetheFirstArticle

information.QIRc

anbesetwithaFAIstatusfornew

Standard


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sothatvendorisinformedofsuchreq

uirement.

QIR

(QualityInformationRecord)tob

eupdatedby

purchasingdepartmentbasedonthe

requirement.

materialsornewvendors.Whilethisstatusissetto

the

QIR,whenaPOiscreated,thisFAIinformationcan

be

copiedtothePOoutputform.

PleaserefertoBB

PdocumentforQMRformireinfo.

Enhancement

TohaveareportofallthePOwhicha

reoverdue

by3

monthstobesend/forwardedto

respective

vendors/departmentsforexpediting.

StandardPOlistr

eportsareavailablebasedonthe

creationdate/deliverydate.

Forwardingthereportinaspecifiedformatto

vendor/departmen

tviaemail.

Standard

Enhancement

Inth

eeventofscrapsduetovendor's

fault,tobe

able

toreturndefectivepartstovendo

rusinga

ReturnPOaslongastheoriginalPOhas

alre

adybeeninvoiced.Insuchcases

,sincethe

dem

andisstillvalid,tobeabletoreflectthatthe

qua

ntityreturnedwillstillbesupplied

(replaced)by

the

vendor.

AdvanceReturns

Managementmaybeusedtoprocess

returns&receivereplacements.

PleaserefertoMSTdocumentforScrapmanagement

inclusiveofreturnstovendor.

Standard

PleaserefertoMST

document


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WhenprocuringSETs,mustbeabletocapture

BOMdetailsonpurchaseorderssoth

atvendor

can

seethedetailsoftheSETstobe

procured.

Tolookintohowstandardrevisionca

nbeusedto

avoidhavingtocreateanewitemma

steranda

new

BOMeverytimeachangeaffectingSETis

made.Also,tolookintohowtherevisionnumbers

oftheSET&itsdetailscanbecapturedin

purchaseorders,andalsohowexistin

gopen

purchaseorderscanbetracedandchangedto

buy

theSETwiththenewcomponentinsteadof

the

originalcomponent.

Cha

ngeofRequirement(27/7/12)

NoneedtoexplodeSETBOMonP

O,BOM

detailssentasattachmentisgood

enough.

NotApplicable

AttachBOMdeta

ilsusingdocumentlink(DMS)

NotApplicable

Standard

For

replenishmentthroughexternalprocurement,

tolo

okathowschedulingagreement

canbeused

with

Kanbantohandlethesupplyofb

ulky

materialsdirectlytotheshopfloorby

vendor,

takingintoconsiderationtheshopfloo

rspace

constraints(parkinglots).

For

bulkymaterials,toraisepurchase

orders

with

outdeliverydates,onlytriggerde

liverywhen

spaceisavailableinshopfloor.

Schedulingagreement(doctype:LPA)canbeused

with

Kanbantoreplenishbulkymaterialsdirectlytothes

hop

floor.

IfKanbanisnotused,schedulelinescanbegenera

ted

automaticallybyM

RP.Forecastschedulewhichis

not

deliveryrelevant,canbegeneratedforvendorsinfo

&JIT

schedulewhichis

deliveryrelevant,canbegeneratedto

triggerdelivery.Intervalsforforecastschedule&JI

T

SchedulecanbedefinedinCreationProfilein

customizing.

Standard

Standard


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(assignmanually),theserialnumberisthesameas

the

serialnumberofthecomponent.

Painting,tobeabletomodelthepain

ting

arra

ngementformachinedpartsasw

ellasbought

partsandtobeabletochargecostof

paintingto

the

finalproducedmachine.Painting

ispricedby

machinebymodel.

Tobeabletocapturethecostofpain

tingat

machinemodellevelinsomeformof

masterdata

ord

ocument,tobeusedasareferencewhenever

pain

tingservicesisincurredandpaym

enthasto

bem

ade.

Tobeabletocaptureprocurementof

painting

servicesasalogisticprocess,withco

rresponding

GR

andIRprocesses.

ExternalServiceP

rocurementinMM.

AServicePOcan

becreatedforthewholeyearcap

turing

theagreedratefo

rpaintingpermachinemodel.Basedon

thenumberofmachinescompleted,serviceentry(G

R)can

bemade.Whenthevendorinvoiceisreceived,3-w

ay

invoicematchcan

becarriedout,thusinvoicesverification

islinkedtologistic

processes,notadirectentryinA

P.

Standard

Otherthanpaintingthestandardpartsofa

machine,ifspecialoptionsareselectedby

customers,paintingmayalsoberequ

iredforthe

sele

ctedoptions.Thestandardratep

ermodelfor

pain

tingdoesnotincludethepainting

ofspecial

options.PICtoprovidemoredetailso

nhowthe

vendorchargesforthepaintingofspe

cialoptions,

bys

urfacearea?

Maymodelamisc

.servicewithanagreedratealon

gwith

thenormalpaintin

gratespermodelintheserviceP

O.

Standard

Externalserviceprocurementcanalsobeusedfor

procurementofgeneralservices,aslongasthere

isa

needtoreceivetheservicesrend

eredforthe

purposeofsubsequentinvoiceverification.

Createservicema

stertorepresenttypeofservices

to

procure.Creates

ervicepurchaseorders,carryout

service

entry(GR)andsu

bsequently,carryoutinvoiceverification

(3-waymatch).

Standard

mmbb001 - purchasing

Documents