10 Purch 11 Process Process

Purchasing:
Basics
SAP Business One
Version 10.0
PUBLIC
Objectives
At the end of this topic, you will be able to:

 List the basic process steps for procurement
 Use a streamlined procurement process
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Business Example
 Your company purchases items from external vendors.

 Normally you use the full procurement process
 However, sometimes, you submit your order by phone and the vendor
delivers the items immediately.

Procurement Process Overview
Purchase Goods Outgoing

A\P Invoice Payment
Order Receipt PO
The basic four-part process of ordering, receiving, and paying for goods or services

Purchasing Items: Process Overview

A\P Invoice Payment
Order Receipt PO
 Purchase Order (PO) is the document

you provide to a vendor specifying items
or services you want to purchase.
 It represents your commitment to the
vendor.


A\P Invoice Payment
Order Receipt PO
 Goods Receipt PO (GRPO) is the

document that denotes the delivery
of the goods from a vendor.
 It is used to update inventory
quantity and prices.


A\P Invoice Payment
Order Receipt PO
 A/P invoice is the document

into which Accounts Payable
enters the vendor’s request
for payment.


A\P Invoice Payment
Order Receipt PO
 Outgoing Payment is the

document which initiates a
payment to the vendor account.
 Functionality and reporting for
processing payments belong to
the Banking module.

Key Master Data in Purchasing: Vendor
Where Used: Contains:
 All purchasing  Contact persons

transactions  Addresses
 Automatic and  Payment Means
manual financial  Accounting
procurement
information
transactions
Vendors

Key Master Data in Purchasing: Items
Item master fields useful in purchasing

 Preferred Vendors
 Manufacturer Catalog Number
 Purchasing Unit of Measure
 Item dimensions
 Tax information
 Customs group for imported items
 Link to Purchasing Analysis

Inventory and Accounting Effects
Purchase Goods
Order Receipt PO A\P Invoice
No Posting Stock Allocation Allocation

Acc. Acc. Acc. Vendor
100 100 100 100

Streamlined Procurement Process
 You can streamline the purchasing

process using a standalone A/P A\P Invoice
invoice.
 For urgent orders, skip the

purchase order and GRPO.
The A/P invoice will:

 Increase stock Stock
Acc. Vendor
 Show what is owed
to the vendor 100 100

Summary
Here are some key points:

 The four basic steps of the procurement process are: the purchase
order, the goods receipt PO, the A/P invoice and the outgoing
payment.
 Two key types of master data in purchasing are vendor master data
and item master data.
 In a streamlined purchasing process, the only mandatory document
is the A/P invoice.
 The A/P invoice is designed to increase inventory when the invoice
does not reference a goods receipt PO as a base document.

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Purchasing:

At the end of this topic, you will be able to:

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

 Your company purchases items from external vendors.

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Purchase Goods Outgoing

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Purchase Goods Outgoing

 Purchase Order (PO) is the document

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Purchase Goods Outgoing

 Goods Receipt PO (GRPO) is the

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Purchase Goods Outgoing

 A/P invoice is the document

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Purchase Goods Outgoing

 Outgoing Payment is the

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

Where Used: Contains:

 All purchasing  Contact persons

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

Item master fields useful in purchasing

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

No Posting Stock Allocation Allocation

100 100 100 100

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

 You can streamline the purchasing

 For urgent orders, skip the

The A/P invoice will:

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

Here are some key points:

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See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

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