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SAP Best Practices for
Wholesale DistributionDE
Scenario Overview
W30 Procure to Pay with
Load Building
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Overview
Procure-to-Pay
The SAP Best Practices for procure to pay demonstrates the entire process chain in a
typical procurement cycle for a Wholesale Distributor, which includes the following
phases:
Source Determination
Vendor Selection and Comparison of Quotations
Determination of Requirements
Purchase Order Processing Purchase Order Follow-Up
Goods Receiving (with quality management) and Inventory Management
Invoice Verification
Payment execution.
The scenario focuses on procurement of trading goods. Additionally, the ability to
monitor contracts with suppliers is also demonstrated. In Procurement using leanWM, it is also demonstrated how to perform the goods movements between
warehouses and different stock types to better manage the inventory.
.
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Overview
Business View
Following steps are involved in the process:
1. Source Determination and Creation of an Agreement
2. Request for Quotation and Price Comparision
3. Outline Agreement and Contract Creation
4. Source List
5. Determination of Requirements
6. Create Purchase requisition using MRP
7. Demonstrate 3rd Party Processing
8. Create Purchase Orders with Reference to Purchase Requistion
9. Process Inbound Delivery with Lean WM
Transfer Order
Posting goods reciept
10. Invoice Verification Process Blocked Invoices
Payment Execution
11. Outline Agreement Contract Monitoring
12. Goods Movements and Quality Managementt
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Component ViewProcure to Pay
Partner 2Partner 1
Purchasing Vendor
Create
Request forQuotation
Maintain
Quotation
Compare
Prices
Create Contract
Update Info
Record
Submi
Price
MRP Controller
Create
Purchase
Requisition
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Component ViewProcure to Pay
Partner 2Partner 1
Purchasing Vendor
Create
PurchaseOrder
Receive
Goods
Logistics
Invoice
Verification
Payment Run
Submit Shi
Notificati
MRP Controller
Send
Invoice
Create
Inbound Delivery
Send
Goods
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Component ViewProcure to Pay with QM
Partner 2Partner 1
Purchasing Vendor
Create
Purchase
Order
Receive
Goods in
RestrictedStock
Inspect
Goods
Send
Goods
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Business BenefitsBusiness Benefits Receiving Plant Issuing Plant
Creation of a picking listis possible.Packing is possible
The transfer posting isvaluated at thevaluation price of thematerial in the issuingplant
Delivery costs can beentered in the stocktransport order
Control of the stock intransit
Business View Stock Transfer with Delivery
Internal Stock
Transfer Order
Outbound Delivery
Picking
Stock Overview
Goods Issue
Goods Receipt
Inbound Delivery
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Overview
Load Building
The SAP Best Practices scenario for Procure to Pay with Load Building was designed tominimize transport costs by:
making the best possible use of the means of transport (for example, ship, rail freightcontainer, truck)
reduce stock on-hand as much as possible by ordering as late as possible
and achieve more favorable purchase price conditions, for example by ordering whole
truck loads.
The process optimizes quantities for procurement from a single supplier, and converts allexisting purchase requisitions to a collective or multiple purchase orders. If necessary, newpurchase orders are generated (for example, if the range of coverage is increased). Severalpurchase orders are combined into a load under one collective number to fulfill the existingload conditions and then executed through the rest of the procurement process.
Business View
The SAP Load Building gives the possibility to optimize procurement processes likeMinimize transport costs by making best possible use of the means of transportReduce stock on-hand as much as possible by ordering as late as possibleAchieve more favorable purchase price conditions by ordering whole truck loads, for example
To help you do this, SAP attempts to optimize quantities for procurement and convertsexisting purchase requisitions to purchase orders, if necessary generating new purchaseorders. Several purchase orders can be combined in a load under one collective number.
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ManagementAccounting
FinancialAccounting
ProfitabilityAnalytics
Human ResourceManagement
Procurement
Demand & SupplyPlanning
Distribution Planning
Order Optimization
Order Management
Distribution &Fulfillment
Commissions & ChargebackManagement
WarehouseManagement
Order Optimization
Load Building and Quantity Optimization (line buy) attempts to optimize
quantities for procurement and converts multiple existing purchase requisitions to a
single purchase order, additionally when you enter purchase orders, you can havethe system optimize the quantities to make the most out of agreement restrictions
you have with vendors granting you better conditions when you order in complete
logistics units
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Load Building: Overview
Req. Planning Promotion Orders
OtherOrder
Processes
EDI to Vendor
Without Existing
Requirement
ElementsPurchase Requisitions
Purch. Req.
Purch. Req.
Purch. Req.
Purchase Orders
Purchase Orders
Purchase Orders
Automatic Load Building
Process
Simulation List Process
Manual Load Building
Process
Purchase Orders
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Purchase Requisitions Purchase OrderRevised
Purchase Order
Order Optimization
Load Building Quantity Optimizing
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