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Purchasing Part 2 (Materials Management)
  • Level: Beginner
  • Duration: 09h 23m 13s
  • Release date: 2021-10-15
  • Author: Jella Godlove
  • Provider: Udemy

Purchasing Part 2 (Materials Management)


1. Determination of Requirements: Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.2. Source Determination: The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI if desired.3. Vendor Selection and Comparison of Quotations: The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.4. Goods Receiving and Inventory Management: Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over and under deliveries of ordered goods.5. Invoice Verification: Invoice sent by the vendor is posted in the system so the payment processing can be effected to complete the procure to pay cycle.