Purchasing Super User Training. 2 BRITE Purchasing Super User Have fun and enjoy the opportunities we have to contribute to SBBC’s future success!

PurchasingPurchasingSuper User TrainingSuper User Training

2BRITE Purchasing Super User

Have fun and enjoy the opportunities we have to contribute to SBBC’s future success!

Please turn off or silence cell phones and pagers

Please do not read or send email messages during class time

Respect those speaking and asking questions by keeping side discussions to a minimum

Please do not interrupt the person speaking We will start, break, and end on time All unanswered questions will be placed in

the “Parking Lot” and answers will be distributed later

Welcome and Ground RulesWelcome and Ground Rules


LogisticsLogistics

Before we get started ...


SAP Master DataSAP Master Data


SAP Master DataSAP Master Data

Master Data Records contain information that rarely changes

Using Master Data Records in purchasing documents reduces data entry, errors, and redundancy

Material Master Records include information such as unit of measure, description, and purchasing data

Vendor Master Records include information such as address, contact information, and payment terms


Material Request FormMaterial Request Form

A material request form will be completed and submitted to the Data Strategy Group whenever a new Material Master Record needs to be created


Demonstration and ExerciseDemonstration and Exercise

Scenario: Display a Material Master Record

Transaction Code: MM03


Vendor Profile FormVendor Profile Form

The Vendor Profile Form must be completed and submitted to the Data Strategy Group whenever a new Vendor Master Record needs to be created



Scenario: Display a Vendor Master Record

Transaction Code: MK03


Purchase RequisitionsPurchase Requisitions


Types of Purchase RequisitionsTypes of Purchase RequisitionsThere are three types of Purchase Requisitions that will be discussed in this course:

Standard RequisitionsFramework Requisitions

FNS Commodity Requisitions

Are used for external procurements

Created manually by schools & depts or automatically for MRP items

Used for both materials & services

Can be entered with or without reference to a Material Master Record

Require a Goods Receipt

Are used for external procurements

Can be created using an attached list for orders of 25 or more line items

Are created for items for which pricing is unknown until invoice is received (for example, fuel, landscaping, utilities)

Cannot be used for assets

Invoicing Plan

Generated by FNS department to receive commodities received from government


Material Order FormMaterial Order Form

Requestors will provide details about the materials they wish to order by completing a material order form and forwarding it to the appropriate requisitioner

To-Be External Purchase Requisitions2.

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3. Falls under p-card policy?

9. Procure via standard

requisitionME51N

15. Review purchase requisition

ZMPU_ME55

Yes

8. Item on contract?

CCM

17. Add’l approval due to

mat. group?

18. Review purchase requisition

ZMPU_ME55

10. Enter text item or attached list

ME51N

5. Create requisition

ME51N

No

Yes

12. Complete requisition

ME51N

16. Req. approved?

SAP

External

19. Req. approved?Yes

No

13. Pass system budget

check?ME51N

Yes

No

20. Req ready for PO creation

6. Item in warehouse?

CCM

No

Yes

7. Procure via stock

transport requisition

ME51N

No

1. Identify need

2. Fill out

order form

14. Contact Budget

Analyst to resolve issue

4. Procure via p-card

Yes

Yes

No

No

11. Standard / framework req.

ME51N


Account Assignment CategoriesAccount Assignment Categories

Each line item on a Requisition must have an Account Assignment Category. The following five account assignment categories will be covered in this course:

– <Blank> - Inventory (Warehouse, PPO, Cafeteria Groceries)

– Z – Asset (Use in Phase 1)– A – Asset (Use in Phase 2)– K - Cost Center– P - Project– Y - Grant


Item CategoriesItem Categories

Each line item on a purchase requisition will have an Item Category:

Standard – Used for material line items for which there is a specific quantity/unit price and a goods receipt requirement. The Item Category is left blank. (Ex: items on contract or invoicing plans.)

Limit – Used for line items for which there is a funding limit but not a specific quantity/unit price and no goods receipt requirement The Item Category is B for Limits. (Ex: Attached lists, landscaping, fuel.)


Material GroupsMaterial Groups

The Material Group is a code used to group together materials with the same attributes (e.g., office supplies)

The Material Group will be the three-character National Institute of Governmental Purchasing (NIGP) code (e.g., 615 for “Office Supplies, General”

The Material Group will default for those items that have a Material Master Record

For those items that do not have a Material Master Record, the Material Group must be entered on the requisition


Organization StructureOrganization Structure


Accounting DataAccounting Data

Accounting Object Number of Digits

Fund 3 or 4

Class 1

Function 4

Object 3

Phase 1

Sub-Object 2

Location 4

Type 1

Activity 5

Legacy Line of Coding

Accounting Object Composition

General Ledger (G/L) Account Number

Class + Object + Zeros

Eight Digits

Ex: 5 511 0000

Fund

Previous Fund # + 0 (if required)

Four Digits

Ex: 100 0

Functional Area

Function + Activity + Zeros

Sixteen Digits

Ex: 5101 00000 0000000

Cost Center

Business Area + Type

+ Location + 0

Ten Digits

Ex: 3307 1 1091 0

SAP Accounting String



Scenario: Display a List of Purchase Requisitions (By Purchasing Group)

Transaction Code: ME5A


Purchase Requisition Approval ProcessPurchase Requisition Approval Process

All requisitions are subject to principal / dept head approval

Standard requisitions with items for specific material groups (ex: chemicals) are subject to approval by Curriculum Specialist, Technology, Textbook, or FNS after approval by principal / dept head

All requisitions are subject to final level of approval by area superintendent during a budget freeze


Vendor SolicitationsVendor Solicitations


Vendor SolicitationsVendor Solicitations

The following types of Solicitations will be discussed in this course:

RFQ ITB/RFQ

For procurements between $5K & $25K

Will now be performed by Purchasing Dept

Will be grouped by Collective Number (Req #)

Can be electronically submitted to vendors (e-mail or e-fax)

For Materials & Services over $25K

Solicitation of bids/proposals will continue in Demand Star

Will be grouped by Collective Number (Demand Star Bid/RFP number)



Scenario: Create RFQ to Three Vendors Referencing a Standard Requisition

Transaction Code: ME41



Scenario: Change an RFQ




Scenario: Message Output - RFQ

Transaction Code: ME9A



Scenario: Create RFQ Referencing a Framework Requisition with an Attached List




Scenario: Create ITB




Scenario: Display RFQ/RFQ/ITB




Scenario: Display RFQ’s by Material Group

Transaction Code: ME4C

Display by Material Group from last exercise Display by Purchasing Group to view RFQ’s

for a given buyer


Maintaining QuotationsMaintaining Quotations

Captures vendor responses to RFQ’s, RFP’s, and ITB’s Includes each vendor’s pricing, delivery, and contract

terms Facilitates faster PO/Contract creation by referencing

Vendor quotations Quotations will be maintained for RFP’s and ITB’s from

successful bidders



Scenario: Maintain a Vendor Quotation




Scenario: Display a Quotation



ContractsContracts


ContractsContracts

The Our Reference field will be the bid number advertised in Demand Star

Can be limited by Plant (Schools & Departments, Food & Nutrition, Warehouses)

Will replace Open PO’s where funds do not need to be encumbered up-front

Can have multiple PO’s issued as releases against them when materials or services are required

Can be for specific items/services or for just a total value (Ex: catalog bids)



Scenario: Create a Contract Referencing an ITB With Line Items Without Line Item (Value Contract)

Transaction Code: ME31K



Scenario: Change a Contract




Scenario: Display a Contract




Scenario: Display a List of Contracts

Transaction Code: ME3N


Purchase OrdersPurchase Orders


Purchase Order Text & NotesPurchase Order Text & Notes

Purchase Order text and internal notes can be entered, pasted, or updated on the Texts tabs in either the PO header or the line item details sections.


Delivery AddressesDelivery Addresses

The initial delivery address defaults from the storage location, but it can be overridden by either the requisitioner or the buyer by typing an alternate address or selecting a different standard address code on the Delivery Address tab in the line item details section.


TolerancesTolerances

The following tolerances apply to purchasing and material documents:

Purchase Order line items can be created for the lesser of 10% or $100 over the value of the Requisition line item

Goods Receipt tolerances are set in the Purchase Order Invoice line items can be paid for the lesser of 1% or $10

over the unit price of the item


Types of Purchase OrdersTypes of Purchase Orders

The following Purchase Order types will be discussed in this course:

Standard Framework Emergency Conversion Student Assessment


Standard Purchase OrdersStandard Purchase Orders

Standard PO’s are created referencing standard purchase requisitions

Standard purchase order creation can be accomplished through:

– Manual creation by a purchasing agent– Auto PO created by SAP

All items are accepted through a goods receipt Information brought in from requisitions includes:

– Item details– Account assignment category– Delivery addresses– Vendor if specified– Texts



Scenario: Create a Standard Purchase Order



Printing Purchase OrdersPrinting Purchase Orders

Using transaction code ME9F, you can select purchase orders (by PO number, Vendor number, Purchasing Group, etc) that you want to print.



Scenario: Message Output – Purchase Orders

Transaction Code: ME9F


Purchase Orders MaintenancePurchase Orders Maintenance

Purchase Order change requirements will be communicated to Purchasing via a Purchase Order Maintenance form submitted through CAB


Purchase Order VersionsPurchase Order Versions

PO Versions are tracked on the Versions tab in the Header section of the PO.

In order for a version to be printable, you must select the Version Completed checkbox or the Complete Version flag.



Scenario: Change a Standard Purchase Order




Scenario: Display a Standard Purchase Order


For this exercise, display Purchase Order 450000578 to review PO history


Framework Purchase OrdersFramework Purchase Orders

Framework Requisitions are created for: Items Ordered via Attached Lists

– Must be items that cannot be procured with a P-card

– Must be 25 or more line items– Must be non-assets

Items for which pricing is unknown until invoice is received (for example, fuel, landscaping, utilities)

Items to be paid for via Automatic Payment (Invoicing Plan, ex: lease of a portable)



Scenario: Create a Framework Purchase Order with an Invoicing Plan




Scenario: Create a Framework Purchase Order – Limits with Attached List




Scenario: Purchasing Reporting

Transaction Code: ME80FN



Scenario: Display Purchasing Documents per PO #




Scenario: Display a List of Purchase Orders by Material Group

Transaction Code: ME2C


Emergency Purchase OrdersEmergency Purchase Orders

Necessary if P-card cannot be used during emergency

Issued manually by purchasing agents using external numbering during a crisis and created in SAP after the emergency

No purchase requisition required No system approval required since request comes to

the Purchasing Department from principals, department heads or Emergency Operating Center


Conversion Purchase OrdersConversion Purchase Orders

Open legacy PO’s will be imported to SAP to support outstanding goods receipts and invoice receipts

The document type for conversion PO’s will be ZCNV Legacy PO numbers will start with a Z for FY2000 PO’s

and later; Y for FY1999 PO’s and earlier The MSA PO number will be in the internal notes tab of

the item details section


Student Assessment Purchase OrdersStudent Assessment Purchase Orders

Student Assessment PO’s are created to receive assessment materials into inventory at zero cost

No requisition is required There is no financial impact to the budget There will be one PO for the entire year The document type is ZA


Purchase Orders for the Next Fiscal YearPurchase Orders for the Next Fiscal Year

Requisitions for the next fiscal year will have dates later than July 1st

When the PO is being created, change the document date to July 1st of the next fiscal year

PO’s for contract items less than $25K will be automatically generated

In the Texts tab of the PO Header section, enter the standard text note SBBC Next Fiscal Year


Auto-Generated Purchase OrdersAuto-Generated Purchase Orders

SAP will automatically convert requisition lines under $25,000 with a valid contract

POs will be ready for purchasing agent review before they are transmitted to vendors

POs will be created per location Auto PO indicator on vendor master and material

master record must be checked


Wrap-Up/Q&AWrap-Up/Q&A

Purchasing Super User Training. 2 BRITE Purchasing Super User Have fun and enjoy the opportunities we have to contribute to SBBC’s future success!

Documents

super user training

super user demonstration

super user vendor profile

mk03 slide

mm03 slide

government slide

data vendor master records

super userlogistics