BTM 226 > Module 4: The Procurement Process > Flashcards

Module 4: The Procurement Process Flashcards

(56 cards)

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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?

Study These Flashcards
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?

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A

Separate for each Purchasing Organization
Applies to the specified Purchase Org

25
What is the Purchasing Info Record?
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
What are Pricing Conditions?
Gross price Discounts and surcharges Freight / shipping
27
Where are pricing conditions obtained from?
Purchasing info records Contracts and agreements Other sources
28
What are the key concepts of the procurement process?
Item categories Account determination Stock type/status Goods movement
29
What are item categories?
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
What are account assignment categories?
Used when purchasing material without material master Assets, production order, cost centre, sales, order, project Automatic GL account determination based on category
31
What are stock types/status?
They are based on usability of material Unrestricted use In quality inspection Blocked stock (damaged, unusable; wrong delivery) Stock in transit
32
What is goods movement?
A transaction that causes a change in stock (value or status) Categories of Goods Movement Specific Movement types
33
What is in the Header of a material document?
Document number Created by Date Reference Transaction code
34
What is in the Items (detail) of a material document?
Quantity Material Location (plant/sloc) Movement type Other data depending on process (vendor, customer)
35
What are goods movements?
Goods receipt from vendor or production process, increase in quantity and value of stock Goods issue to sales order or internal
36
What is stock transfer?
Physical movement of material between storage locations
37
What is transfer posting?
Results in a change in material status May or may not include a change in location
38
What are process steps?
Trigger: Requirement from other processes, Manually determined Data: Master Data, User Input Task details: Create requisition Outcomes: Purchase requisition
39
What are the elements of the purchase order step?
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
What is the purchase order?
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
What is the Header?
Document number, dates Vendor, currency, terms PO total
42
What are line items?
Material number, description Quantity, price, item total Delivery date
43
What are the elements of the good receipt step?
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
What are the elements of the invoice verification step?
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
Elements of invoice verification
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
What are the elements of the payment step?
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
What is payment processing?
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
What is reporting?
Source data Instance level reporting Process level reporting
49
What are reporting sources?
Organizational data Master data Transaction data (documents)
50
What is reporting instance?
Status of a requisition, purchase order
51
What is reporting standard?
Process level reporting Standard reports/list displays
52
What are the components of the reporting logistics information system?
Purchasing information system Sales information system Quality management information system Inventory control Transportation information system Shop floor information system Plant maintenance information system
53
What are information structures?
Special tables of statistics from various modules that is constantly updated
54
What are the key figures of selection criteria?
Quantitative values on measurable facts Numbers Quantities Cost, delivery time
55
What are characteristics
They are used to organize key figures
56
What is timeframe?
Day, week, month, etc
BTM 226
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