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.
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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
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Purchasing Items: Process Overview
Purchase Goods Outgoing
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.
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Purchasing Items: Process Overview
Purchase Goods Outgoing
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.
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Purchasing Items: Process Overview
Purchase Goods Outgoing
A\P Invoice Payment
Order Receipt PO
A/P invoice is the document
into which Accounts Payable
enters the vendor’s request
for payment.
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Purchasing Items: Process Overview
Purchase Goods Outgoing
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.
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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
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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
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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
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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
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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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