ZP Procure to Pay Workshop I - Nelson Mandela Universitytutor.nmmu.ac.za/norma/VEL2/VEL2001/VEL2016/ESEFA5B ZP Procur… · ZP Procure to Pay Workshop I ... purchasing for creating
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Product SAP ERP G.B.I. Release 6.07 Level Undergraduate Graduate Beginner Focus Materials management Authors Bret Wagner Stefan Weidner Anjali Ramburn Version 3.6
MOTIVATION The data entry requirements in the exercises are minimised because much of the data is stored in the SAP system. This stored data, known as master data, simplifies the processing of business transactions. In this workshop, we will display a master record, create a purchase order, a goods receipt, and an invoice and post a payment to a particular vendor. You will then run a purchasing report and create a dashboard.
PREREQUISITES Before you use this workshop, you should be familiar with navigation in the SAP system.
NOTES This workshop uses the ESEFA data set, which has been created exclusively for the SAP UA African curriculum.
ZP Procure to Pay Workshop I
This workshop explains an integrated procure to pay process in detail
and thus fosters a thorough understanding of each process step and
Learning objective Understand and perform a procurement cycle.
Scenario In order to execute a complete procurement process you will take on different roles within the Zambikes company, e.g. a purchasing agent, a warehouse employee, an accounting specialist. Overall, you will be making use of the Materials Management (MM) and the Financial Accounting (FI) modules of SAP ERP.
Employees involved Viera Funjika (Finance manager) Wyson Nkwazi (Production supervisor) Benjamin Banda (Warehouse / factory employee) Margret Mwaanga (Admin & inventory manager)
The procure to pay process starts with the displaying of master data records. A vendor (Get A Brake) master record is displayed. Then a raw material master record is displayed (Brake Kit). From the information in the raw material and the vendor master records, the system creates a purchasing info record. You then create a purchase order. Once goods are received, a goods receipt is issued to verify the physical receipt in stock. After the creation of an invoice, the procure to pay cycle ends when payment is made.
Task Display vendor master data using the SAP Easy Access menu.
Short Description Zambikes has numerous vendors both locally and overseas. Margret wants to view the details of one local vendor (Get A Brake).
Name (Position) Margret (Admin & inventory manager)
Vendors are established in both accounting and purchasing. In order to be active, the vendor master record requires three views – general, accounting, and purchasing. Vendors can be created centrally, meaning that all views are generated at the same time, or responsibility can be distributed to accounting and purchasing for creating and maintaining their respective views.
Vendor master
To display a new vendor, follow the SAP menu path:
Logistics ► Materials Management ► Purchasing ► Master Data ► Vendor ► Central ► Display (XK03)
This will produce the following screen.
Menu path
XK03
Use the F4 help to find the vendor number in the Vendor field.
On the Basic Data 1 tab, record your material number and division as per Exercise ZP2 (refer to exercises below).
Choose the Purchasing tab and note the purchasing group.
On the Accounting 1 tab, note the moving price of the material and currency used.
Material Number Division Purchasing Group Moving Price Currency
Answer questions for Exercise ZP 2.
After answering the questions, click (Exit) once to return to the initial screen.
ZP 3: Create a purchasing info record
Time 20 min.
Task Use the SAP Easy Access menu to create purchasing info record.
Short Description Viera creates a new purchasing info record to record agreed conditions between a vendor (Get A Brake) and a material (brake kit)
Name (Position) Viera (Finance manager)
Purchasing info records store information about the terms for purchasing a specific material from a vendor. They are maintained for a vendor/material combination and can contain data for pricing and conditions, over-delivering and under-delivering limits, planned delivery date and availability period.
Purchasing info
record
To create a new purchasing info record, follow the SAP menu path:
Logistics ► Materials Management ► Purchasing ► Master Data ► Info Record ► Create (ME11).
This will produce the following screen.
Note: Some of these fields might already be populated. Enter the information below where necessary.
Reminder 1, 2, 3 (1st, 2nd, 3rd Rem./Exped.): These three fields indicate reminders to be issued to the vendor. Negative value indicates that the vendor should be notified prior to quotation or delivery date.
Vendor Mat. No: material number that is used by the vendor for this material.
Vendor Material Group: material group used by the vendor for this material.
Salesperson: Name of the contact person.
Return Agreement: this can indicate if goods return is possible and if refunds are possible.
In the field Certif. Cat. under Origin data, enter the type of certificate issued by the vendor that applies to this material.
7
BRKT1###
RAW
Your name
03
After entering all the desired data, click Purch. Org. Data 1 in the top left corner of the screen. This takes you to the screen for entering Purchase Organization dependent information, shown below.
This view is maintained separately for every procurement type. We have chosen the standard procurement type, and we can populate several relevant fields here.
Enter 7 in the PL Deliv.Time field.
Enter 10 in the Standard Qty field.
Enter 5 in the Minimum Qty field.
Enter 100 in the Max Quantity field.
Enter 600 in the Net Price field.
Choose EXW using the F4 key in the Incoterms field.
Enter Location Mungwi next to EXW.
Planned Delivery Time: default time in days in which the material delivery is planned.
Standard Quantity: standard purchase quantity for material.
Minimum Quantity: do not allow procurement of a quantity less than stated here.
Maximum Quantity: we do not want to purchase more than this quantity at a time.
Net Price: net price of material per procurement unit.
Incoterms: trading and delivery terms.
7
10
5
100
600
EXW
Mungwi
Once you have entered all the desired information about our material/vendor combination you can save the data.
Record your purchasing information record (PIR) number.
Answer questions for Exercise ZP 3.
After answering the questions, click (Exit) once to return to the initial screen.
ZP 4: Create a purchase order
Time 20 min.
Exercise Use the SAP Easy Access menu to create a purchase order.
Task Create a purchase order (PO) for a brake kit. Submit the PO to the vendor, Get A Brake. When received and accepted by the vendor, the PO creates a legally binding contract between the two parties.
Name (Position) Viera (Finance manager)
In order to create a purchase order, follow the SAP menu path:
Logistics ► Materials Management ► Purchasing ► Purchase Order ► Create ► Vendor/Supplying Plant Known (ME21N).
Menu path
ME21N
In the Vendor field, enter the vendor displayed in ZP1 (Get A Brake) or press F4 to find the number. To search for the vendor number, enter your three-digit number (###) as a Search term on the Vendors (General) tab, and Lusaka in the City field. In the result list, double-click the vendor number to choose it.
### Lusaka
Back on the Create Purchase Order screen, open the header data by clicking (Header).
In the Org. Data view, choose or enter ZM00 for Purchasing Org.
Exercise Use the SAP Easy Access menu to create a goods receipt.
Task Receive into inventory the stock items ordered from Get A Brake in the previous exercise. A goods receipt document will be created referencing our purchase order. This will ensure that we receive the products ordered within the timeframes requested and in quality condition. Goods on hand will be increased and an accounting document will be generated recognizing the value associated with these goods.
Name (Position) Benjamin (Warehouse / factory employee)
To create a goods receipt, follow the SAP menu path:
Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO)
This will produce the following screen.
Menu path
MIGO
Make sure that the GR goods receipt field (top-right corner) is set to 101.
Enter your PO number from the previous exercise. If you do not have the number, find it by using the F4 help (Purchasing Document per Vendor tab or Purchasing Document for Material tab). Then press Enter.
101
PO number
Ensure that the box in the OK column is populated with for each item. Checking it indicates that you want to adopt it into the goods receipt document and the right materials and right quantity have been delivered. If a line is grayed out,
minimize the Item Detail Data by clicking (Close detail data). For each item, ensure that the box in the OK column is populated with .
Click (Exit) to return to the SAP Easy Access menu.
ZP 6: Enter invoice receipt from vendor
Time 10 min.
Exercise Use the SAP Easy Access menu to enter an invoice receipt.
Task Enter an invoice received from Get A Brake for (6 960 ZMW) associated with the recent PO and goods receipts. This invoice will be posted to an existing G/L account in your Chart of Accounts and saved as an Accounts Payable to Get A Brake. It will be settled by issuing a cheque to Get A Brake at a later date.
Enter today’s date as Invoice date (you can use F4 to display the calendar and press Enter to choose today’s date).
In the Amount field, enter the total amount from the invoice document.
In the drop-down menu next to the Tax Amount field, choose Code V1.
In the Text field, enter INVOICE 00-### (replace ### with your 3-digit SAP number).
Click the box next to Calculate tax. Check whether your screen looks like the screen below.
Today’s date
6 960
V1
INVOICE 00-###
Calculate tax
Choose Purchase Order/Scheduling Agreement in the bottom drop-down list and enter your PO number from the first exercise in the Text field next to it. Again, to find it you can use F4 and helpful search criteria such as vendor.
If the transaction is entered correctly (in respect to Debits and Credits), we will have a green light with a zero (0.00) ZMW balance.
Note: Refer to questions for ZP6 before proceeding. Questions ZP6 1 and 2 should be answered at this stage.
We want to view what the actual postings will look like in the general ledgers. It is here that we can ensure that the Debit/Credit posting is correct and that the
accounts are affected correctly. Click to see whether the postings are correct.
Click (Save posting) to save the invoice receipt.
The system will again create a unique document number in the lower-left corner of
the screen.
Record the document number and answer the questions below.
Invoice document number
Answer questions for Exercise ZP 6.
Click (Exit) to return to the SAP Easy Access menu.
Exercise Use the SAP Easy Access menu to post a payment to a vendor.
Task Issue a payment to Get A Brake to settle the Accounts Payable. An accounting entry is made to Accounts Payable for Get A Brake and to the applicable bank account in the G/L.
Name (Position) Viera (Finance manager)
To post a payment to a vendor, follow the SAP menu path:
If requested, enter Company Code ZM00 and Currency/Rate ZMW.
In the Bank Data field group, use F4 to find and choose 10 0000 as the Bank Account and enter the amount you are going to pay (Enter Invoice Amount).
Today’s date
ZM00 ZMW
100000
6960
In the Open Item Selection field group, search for the account number for your Get A Brake vendor (use your search term ###) and enter it in the Account field.
All other settings remain unchanged. Your screen should resemble the one above.
Click (Save) to post your payment. Again, the system creates a unique document number. Record the document number:
Payment
document number
Answer questions for Exercise ZP 8.
The Post Outgoing Payments screen is again blank, ready for another payment to
be entered. Click (Exit) to return to the SAP Easy Access menu. A pop-up box with the SAP warning message shown below will appear. Choose Yes. You have posted your payment, so no data will be lost.
Unless stated otherwise, each question is worth one mark.
1. What is the SAP username you used for this workshop?
QUESTIONS ZP 1: Display vendor master [7]
1. SAP categorizes vendor master data into three groups. What are they? Under each group, give one example of the master data. [3]
2. What is the ‘vendor number’ and ‘vendor name’ displayed? [2] 3. State the country of origin of the selected vendor. 4. State the order currency used for the selected vendor?
QUESTIONS ZP 2: Display material master [5]
1. What is the material number displayed? 2. What is the division of the selected material? 3. What is the purchasing group of the selected material? 4. What is the moving price of the material? 5. What currency is used for the selected material?
QUESTIONS ZP 3: Creating a PIR [1]
1. What is your purchasing info record number?
QUESTIONS ZP 4: Create a purchase order [2]
1. What is the total value of the purchase order? 2. What is your PO number?
QUESTIONS ZP 5: Goods receipt [2]
1. Enter your PO number as recorded in ZP4.
2. Choose the PO history from the Item detail tab. What does the
entry tell you?
QUESTIONS ZP 6: Enter an invoice receipt [3]
1. What is the tax amount of the above transaction?
2. What is the total value of the transaction?
3. What is the document number for the invoice?
QUESTIONS ZP 7: Display purchase order history [3]
1. Display your PO history and list all the entries.
Unless otherwise stated, each question is worth one mark.
[25]
1. What is the SAP username you used for this workshop?
QUESTIONS ZP 1: Display vendor master [7]
1. SAP categorizes vendor master data into three groups. What are they? Under each group, give one example of the master data. [3]
2. What is the ‘vendor number’ and ‘vendor name’ displayed? [2]
3. State the country of origin of the selected vendor. 4. State the order currency used for the selected vendor?
General Data – Vendor name, Company Code Data – Company code, Purchasing Data - Purchasing org.
Vendor number – 127###
Vendor name – Get A Brake
Country of origin –
Zambia
Currency - ZMW
QUESTIONS ZP 2: Display material master [5]
1. What is the material number displayed? 2. What is the division of the selected material? 3. What is the purchasing group of the selected material? 4. What is the moving price of the material? 5. What currency is used for the selected material?
Material number - BRKT1###
Division – BI
Purchasing Group - Z00
Moving price - 600
Currency - ZMW
QUESTIONS ZP 3: Creating a PIR [1]
1. What is your purchasing info record number?
Purchasing info record no. – 53000000xx
(xx)- To be replaced by the unique number generated
QUESTIONS ZP 4: Create a purchase order [2]
1. What is the total value of the purchase order? 2. What is your PO number?
Total value of PO – ZMW
6 000.00
PO number – 45000000xx
(xx)- To be replaced by the unique number generated
QUESTIONS ZP 5: Goods receipt [2]
1. Enter your PO number as recorded in ZP4.
PO number – 45000000xx
The POH confirms and displays the order and value of the order: The
SAP Business Intelligence provides a broad range of reporting tools to facilitate decision-making for different end users. SAP Dashboard Reports and SAP Crystal Reports are two reporting tools which are increasingly being used to generate various management as well as operational reports from data generated by business processes and transactions.
SAP Crystal Reports makes it easy to create simple reports. However, it also has a comprehensive set of tools needed to produce advanced or specialised reports. As part of Global Bike Group, Zambikes middle-level management now has access to Crystal Reports for analysing operational activities to facilitate decision-making by middle management.
SAP Dashboard Reports is a tool for creating interactive reports that allow decision-makers to quickly view key information that is core to strategic decision-making. They provide simple-to-use interfaces which can be embedded in a number of applications, including web pages and presentations.
ZP 9: Using Crystal Reports Time 20 min.
SAP Crystal Reports is reporting tool that is used to format reports. SAP Crystal Report makes it easy to create simple reports, and, it also has the comprehensive tools you need to produce complex or specialised reports.
EXERCISE ZP 9A: Using ZP Procurement Operational Report 1 [6]
From the ESEFA portal in the ES Fundamentals for Business course, choose and open the ZP Procurement Operational Report 1.
(Ask your tutor/lecturer for the link).
An exception purchase order report can be generated on a daily basis for structured decision-making. Familiarise yourself with the information shown on-screen before answering the questions below.
1. In a few words, explain the purpose of the procurement exception report.
2. Provide a list of departments within an organization where such a report might be useful and explain how the report could add value to these departments. [2]
3. Can you think of how the historical information in the exception report could be useful for the organization in the future?
4. Zambikes would like to send a delivery reminder to all the suppliers from whom they are expecting deliveries in October. Based on the report, list the suppliers who would be sent a delivery reminder.[2]
5. What additional information would you add to improve the report? [2]
EXERCISE ZP 9B: Using ZP Procurement Operational Report 2 [4]
The expenditure report shows the monthly expenditure report for different categories of raw materials. Familiarise yourself with the information shown on-screen before answering the questions below.
1. Assuming that the criteria for vendor selection is cost of product, quality and compliance to agreed delivery time, list the vendors with whom Zambikes should avoid signing a long-term contract. Justify your answer.
Zambikes currently uses a spreadsheet to analyse their expenditure information. The managing director has indicated to his team that while the report contains all the necessary information, it is not easy to interpret and perhaps this information can be supplied in a more user friendly format. In response to these concerns, it was decided to build a reporting dashboard that was interactive, easy-to-use and supplied the necessary information.
A dynamic expenditure report was implemented. It enables users to have a quick overview of the data and to zoom and filter on particular aspects and extract further detailed information as required. The specific information they are concerned with is:
Purchasing expenditure for different categories of raw materials for the previous fiscal year (2013)
The actual expenditure details of each raw material in a particular category
The vendor information relating to each raw material
The countries from which a raw material can be procured
The yearly expenditure trend of each raw material.
Download and save the Zambikes expenditure html and Zambikes expenditure swf files to your local drive.
Zambikes expenditure html
Open the Zambikes expenditure html file and browse through the different charts. Familiarize yourself with the information displayed before answering the questions below.
EXERCISE ZP 10: Using the ZP Expenditure Report [10]
1. What are the countries of origin for the different raw materials in the Wheel and Tyre category?
2. What is the number of units imported for raw material DerailZMW Chain in the Derailleur and Brake category? [2]
3. What is the amount spent on procurement of materials in the Seat and Pedal category in 2011, 2012 and 2013. What can you say about the trend of expenditure? [4]
4. Assuming that the criteria for Vendor selection are the cost of product and the delivery time, list the vendors with whom you would recommend that Zambikes sign a long-term contract. Your focus is only on the following raw materials from the Frames category. Justify your answer. [3]
Steel Frame Racing Handle Bar Trailer Load Platform
Unless otherwise stated, each question is worth one mark.
QUESTIONS ZP 9: Using Crystal Reports
1. In a few words, explain the purpose of the procurement exception report.
2. Provide a list of departments within an organization where such a report might be useful and explain how the report could add value to these departments.
3. Can you think of how the historical information in the exception report could be useful for the organization in the future?
4. Zambikes would like to send a delivery reminder to all the suppliers from whom they are expecting deliveries in October. Based on the report, list the suppliers who would be sent a delivery reminder.
5. What additional information would you add to improve the report?
To view the outstanding overdue goods movements or deliveries.
Procurement & purchase – escalations and follow up
Accounting & Finance – forecast/penalty fee
Production – forecast effect on product/
Assess performance of suppliers for renewal of contract
Allows the purchasing department to estimate when to purchase goods from specific suppliers
GetABrake
Malawheels
Steel Lite
Location – the further away, the bigger the probability of being late
Number of reminders sent
Overall % late deliveries per supplier
QUESTIONS ZP 9B: Using ZP Operational Report 2
1. Assuming that the criteria for vendor selection is cost of product, quality and compliance to agreed delivery time, list the vendors with whom Zambikes should avoid signing a long-term contract. Justify your answer.
Those vendors who have the highest item costs, a high % of defects and a higher % of late deliveries in their respective categories
1. What are the countries of origin for the different raw materials in the Wheel and Tyre category?
2. What is the number of units imported for raw material DerailZMW Chain in the Derailleur and Brake category?
3. What is the amount spent on procurement of materials in the Seat and Pedal category in 2011, 2012 and 2013? What can you say about the trend of expenditure?
2011 2012 2013
Off Road Seat Kit ZMW 196,320 223,805 219,329
Pedal Assembly ZMW 69,997 60,897 60,288
Racing Seat Kit ZMW 135,953 110,112 106,818
TOTAL ZMW 402,270 394, 814 386,435
4. Assuming that the criteria for Vendor selection are the cost of product and the delivery time, list the vendors with whom you would recommend that Zambikes signs a long-term contract. Your focus is only on the following raw materials from the frames category: