Procurement 201. 2 BRITE Procurement 201 Have fun and enjoy the opportunities we have to contribute...

Procurement 201Procurement 201

2BRITE Procurement 201

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 ...


ConceptsConcepts

DemonstrationDemonstrationss

ExercisesExercisesBRITE BRITE

Classroom MaterialsClassroom Materials

(Let Me)(Let Me)

(Tell Me)(Tell Me)

(Show Me)(Show Me)


At the end of this course, you should be able to:

Describe the requisition process

Create various types of requisitions

Describe the goods receipt/return process

Perform a goods receipt

Create a list of purchase requisitions based on your

own search criteria

Course ObjectivesCourse Objectives


AgendaAgenda

Unit Time

Introduction 30 minutes

Unit One: Requisition Processing 3 hours

Unit Two: Goods Movement 1 hour

Unit Three: Purchasing Reporting 1 hour

Summary 30 minutes


Requisition ProcessingRequisition Processing


At the end of this Unit, you should be able to:

Define key terminology

Describe the various types of purchase requisitions

Display a purchase requisition

Identify the three sections of a purchase requisition

Create requisitions (standard, stock transport, and framework)

Describe the function of Catalog Content Management

Unit ObjectivesUnit Objectives


At the end of this Unit, you should be able to:

Describe the process for procuring assets

Describe the process for creating requisitions against a grant

Describe the process for creating a textbook requisition

Display a purchase order for a given requisition

Unit Objectives (cont.) Unit Objectives (cont.)


BRITE Key Terms BRITE Key Terms

Master Data Information that rarely changes. For example, Material Master Record or Vendor Master Record

Catalog Content Management

Online catalog of materials available for purchase both internally and externally that are on contract.

Document Type Used to identify the various types of purchasing documents (Standard Requisition, Framework Requisition, Stock Transport Requisition)

Business Area Used to identify an area of responsibility such as Food Services, Budget Office, or a specific school

Item Category A classification of the material or service being procured (standard, stock transport, service, etc.)


BRITE Key Terms (cont.) BRITE Key Terms (cont.)

Account Assignment Category

Designates how the expense for a procurement will be charged (cost center, project, grant, etc.)

Material Group Category of materials; similar to a commodity code (classroom supplies, computer hardware, office supplies)

Cost Center/Fund Center

A unit of responsibility for capturing cost within a Business Area. Includes location number.

GL Account Number

Used to categorize expenses in the general ledger. For example, Consumable Materials or Computer Equipment (legacy system’s Class & Object Code)

Grant A source of funding against which materials and services may be procured

Invoicing Plan Used to schedule regular, periodic payments to a vendor


Types of Purchase RequisitionsTypes of Purchase Requisitions

There are three types of Purchase Requisitions that will be discussed in this course:

Standard Requisitions Framework Requisitions

Stock Transport Requisitions

Are used for external procurements

Can be entered line-by-line or via Catalog Content Management (CCM)

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

Are used for external procurements

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

Cannot be used for assets

Invoicing Plan

Are used for internal procurements

Will always be entered via Catalog Content Management (CCM)


Requisitions Requisitions

All Requisitions have three sections:

Header—Contains a Text tab where internal information can be entered

Item Overview—Shows an overview of all the line items on the Requisition

Item Details—Shows detailed procurement information about each line item on the requisition.


Purchase RequisitionPurchase Requisition

Header

Item Overview

Item Details


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


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


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


Demonstration and ExerciseDemonstration and Exercise

Scenario: Display a Purchase Requisition

Transaction Code: ME53N


Display a Purchase RequisitionDisplay a Purchase Requisition

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Scenario: Create a Standard Purchase Requisition



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Scenario: Change a Standard Purchase Requisition


Change the requisition you created in the previous exercise.


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What is Catalog Content ManagementWhat is Catalog Content Management

Catalog Content Management (CCM):

Is a web-interface that allows end-users to search for and order standard catalog items from established suppliers with active contracts

Allows end-users to select materials by pointing and clicking on catalog items

Allows end-users to create a Requisition in SAP directly from an on-line shopping cart

Reduces data input errors and redundancy


CCM RequisitionsCCM Requisitions

Click the “Catalog” icon to access the on-line catalog.


Catalog Content ManagementCatalog Content Management

CCM allows “point and click” selection of materials to be purchased



Scenario: Create a Standard Purchase Requisition Using CCM



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Assets (Interim Process – Wave 1)Assets (Interim Process – Wave 1)

A Requisition item is considered an asset if its value exceeds $1,000

The account assignment category on the requisition is coded as “Z” for asset

For assets ordered against a grant, a Work Breakdown Structure (WBS) element will also be required

- WBS contains details about who owns the grant and where the money is being spent

Asset tracking will continue to be performed in PROPS (Property & Inventory)


Requisitions for GrantsRequisitions for Grants

Non-assets ordered against a grant will have an account assignment category of “Y”

Assets ordered against a grant will have an account assignment category of “Z” during Wave 1

A WBS element must be entered on the requisition


Requisition Against a GrantRequisition Against a Grant

The WBS element for items ordered against a Grant appears on the “Account Assignment” tab.


Stock Transport RequisitionsStock Transport Requisitions

Stock Transport Requisitions: Will have an Item Category of “U” (Stock Transfer) and an

Account Assignment Category of “K” (cost center) Will go through an approval process similar to external

requisitions Will be automatically converted to stock transport orders

after all budget checks and approvals have been accomplished

Can be used for B-stock as well as procurements from the central warehouse


Stock LocationsStock Locations

Stock Transports can come from any of these locations


Stock Transport Requisition Process FlowStock Transport Requisition Process Flow

Requisition entered by school or

department

Budget check performed

Requisition approved by principal or department

head

Stock transport order

created from requisition

Material delivered from

warehouse



Scenario: Create a Stock Transport Requisition for Material from the Central Warehouse



Create a Stock Transport Req Using CCMCreate a Stock Transport Req Using CCM

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Framework RequisitionsFramework Requisitions

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 Requisition Using an Attached List



Create a Framework Req Using an AttachedCreate a Framework Req Using an AttachedListList

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Payments for Framework Purchase OrdersPayments for Framework Purchase Orders

A two-way match (purchase order to invoice) is required—no goods receipt

A copy of the invoice is routed to the receiving school or department for verification and signature

Accounts Payable pays the invoice after it is approved


All Textbooks From FSBD (Core and Non-All Textbooks From FSBD (Core and Non-Core) – Elementary & Middle SchoolsCore) – Elementary & Middle Schools

Requisitions for textbooks are stock transport requisitions

Textbook Requisition Process:

Create a Stock Transport

Requisition to Textbook

Warehouse Non-Core Textbook

Warehouse bundles PR’s &

orders from FSBD

Non-Core Textbooks shipped to

warehouse or directly to school

Note: These Stock Transport requisitions are entered as text items.

Core Textbooks fulfilled from the

Warehouse

Core Textbooks shipped to

schools

Requisition Approved by Principal &

Instructional Materials Facilitator


All Textbook Requisitions From FSBD – All Textbook Requisitions From FSBD – High Schools (Core and Non-Core)High Schools (Core and Non-Core)

Requisitions for textbooks are “framework requisitions”

Textbook Requisition Process:

Select books on FL School Book

Depository (FSBD) Website

Attach PDF File to Requisition

and Save

Requisition Approved by Principal &

Instructional Materials Facilitator

Purchase Order Created by

Buyer

Get Order Total from Website

Create & Hold Framework

Req w/Order Total

Enter Req # in FSBD Order on

Website and Save

PDF File is Automatically Printed From

FSBD Website


You should now be able to:

Define key terminology

Describe the various types of purchase requisitions

Display a purchase requisition

Identify the three sections of a purchase requisition

Create requisitions (standard, stock transport, and framework)

Describe the function of Content Catalog Management



You should now be able to:

Describe the process for procuring assets

Describe the process for creating requisitions against a grant

Describe the process for creating a textbook requisition

Display a purchase order for a given requisition



Knowledge CheckpointKnowledge Checkpoint

Question: What three types of requisitions did you learn how to create in this unit?

Answer: Standard, Framework and Stock Transport


AgendaAgenda

Unit Time





Summary 30 minutes


Goods MovementGoods Movement


At the end of this Unit, you should be able to: Describe the Goods Receipt and Return processes Perform a Goods Receipt Perform a Goods Return



Goods Receipts and Returns in SAPGoods Receipts and Returns in SAP

A Goods Receipt is executed in SAP any time material is received against a standard purchase order

When a Goods Receipt is executed, a material document is created in SAP that includes details of the transaction (date, quantity, storage location, etc.)

A Goods Return is executed to return material to a vendor

Goods Returns must be coordinated with Purchasing and Accounts Payable

Goods Receipt and Returns have different movement types in SAP, such as:

– 101: Goods Receipt for Purchase Order into Warehouse

– 122: Return Delivery to Vendor



Scenario: Perform a Goods Receipt

Transaction Code: MIGO_GR


Perform a Goods ReceiptPerform a Goods Receipt

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Scenario: Perform a Goods Return

Transaction Code: MIGO


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You should now be able to: Describe the Goods Receipt and Return

processes Perform a Goods Receipt Perform a Goods Return




Question: What type of Purchase Order requires a Goods Receipt?

Answer: Standard


AgendaAgenda

Unit Time





Summary 30 minutes


Purchasing ReportingPurchasing Reporting


At the end of this Unit, you should be able to: Describe the use of List Displays in SAP Display a list of Purchase Requisitions



List Displays in SAPList Displays in SAP

A List Display in SAP is a powerful and flexible tool that allows End-Users to:

Generate a list of purchasing documents, materials, vendors, etc. that match a set of search criteria

Perform real-time, ad-hoc reporting

Change the content and layout of reports

Print hard copy reports or export them to other applications such as Excel



Scenario: Display a List of Purchase Requisitions

Transaction Code: ME5A


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You should now be able to: Describe the use of List Displays in SAP Display a list of Purchase Requisitions




Question: What are some advantages of using list displays in SAP?

Answer: Real-time information, ad-hoc reporting, ability to change content and layout, export to Excel.

Follow-Up & Support OptionsFollow-Up & Support Options


HELP DESK 754-321-8120 BRITE Website:

web/erp -or-

http://www.broward.k12.fl.us/erp/

e-Learning

Context Sensitive Help

CAB Conference

BRITE LITES (By Role)

User Support OptionsUser Support Options

ESS Appraisal

BlackboardFollow-UpFollow-Up

Procurement 201. 2 BRITE Procurement 201 Have fun and enjoy the opportunities we have to contribute...

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