PURCHASING MODULE

By
Prashanth Maturi (453) Karthika Reddy Dubba (440) Anusha Karuturi (433) Gaurav Kumar (437) Haribabu Yerram (438) Ashish Anand (434)

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Table Of Contents:
1) Suppliers And Sites 1.1 Create an Item at Master level 1.2 Creating Supplier and Supplier Sites

2) Requisitions
2.1 Purchase Requistion 2.1.1 Create Requisition 2.1.2 Verify Requisition Status 2.2 Internal Requisition

3) Types of Purchase Orders

3.1 Standard Purchase Order
3.1.1.a 3.1.1.b 3.1.1.c 3.1.1.d 3.1.2.a 3.1.2.b 3.1.2.c 3.1.2.d 3.1.2.e 3.1.2.f 3.1.2.g

3.1.1 Standard Purchase Order with Direct Receipt Routing.

Generation of Purchase Order Verification of Purchase Order in Purchase Order Summary Generation of Receipts Check the On Hand Availability Generation of Purchase Order Verification of Purchase Order in Purchase Order Summary Get Approval from the next higher level person in the Hierarchy Recheck the Purchase Order Status Generation of Receipts Receiving the items into Sub Inventory Check the On Hand Availability

3.1.2 Standard Purchase Order with Standard Receipt Routing

3.2 Planned Purchase Order

3.2.1.a 3.2.1.b 3.2.1.c 3.2.1.d 3.2.1.e

3.2.1 Planned Purchase Order with Direct Receipt Routing

Generation of Purchase Order Verification of Purchase Order in Purchase Order Summary Release the Items Generation of Receipts Check the On Hand Availability
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3.2.2 Planned Purchase Order with Standard Receipt Routing

3.2.2.a 3.2.2.b 3.2.2.c 3.2.2.d 3.2.2.e Creation of Planned Purchase Order Release the Items Generation of Receipts Receiving the items into Sub Inventory Check the On Hand Availability

3.3 Blanket Purchase Agreement

3.3.1 3.3.2 3.3.3 3.3.4 3.3.5

Creation of Blanket Purchase Agreement Release the Items Generation of Receipts Receiving the items into Sub Inventory Check the On Hand Availability

3.4 Contract Purchase Agreement

3.4.1 Creation of Contract Purchase Agreement 3.4.2 Create the Standard Purchase Order against Contract Purchase Agreement 3.4.3 Release the Items 3.4.4 Generation of Receipts 3.4.5 Receiving the items into Sub Inventory

4) Auto Create 5) Hierarchy

5.1 Position Hierarchy
5.1.1 Create job 5.1.2 Create Position 5.1.3 Creating Employee 5.1.4 Assign Job and Positions to employees 5.1.5 Create User and assign Employee to User and Responsibility Assignment 5.1.6 Create Position Hierarchy 5.1.7 View Diagrammer 5.1.8 Run Fill Employee Hierarchy Module 5.1.9 Assign Position Hierarchy to Document types 5.1.10 Create Approval Groups 5.1.11 Assign Approval Groups to Positions
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5.1.12 Buyer Setup

5.2 Job Hierarchy

5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7

Create job Creating Employee Assign Job and Supervisor to employees Create User and assign Employee to User and Responsibility Assignment Create Approval Groups Assign Approval Groups to Jobs Buyer Setup

6) Technical

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1) Suppliers And Sites 1.1 Create an Item at Master level

Inventory ::::: Change the organization to V1(Master Organization)

Inventory :::: Items :::: Master Items Enter Item name , Description of the Item To get the predefined template Tools :::: Copy from :::: < Template Name > (Purchased Item) Save it.

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Make sure that the Purchased and Purchasable check boxes are enabled in the Purchasable tab. To assign item to the child organization Tools :::: Organization Assignment :::: < Organization Names > ( M1 and M2 ) Save it.

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To check the items in the child organization Inventory :::: Items :::: Organization Items Enter the item defined at the master organization in ITEM text box

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Click find.

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1.2 Creating Supplier and Supplier Sites Change the Responsibility to Purchasing Vision Operation(USA)

Purchasing Vision Operation(USA) :::: Supply Base :::: Suppliers Enter the Supplier name ( PCH ) Save it

Click on Sites Enter the Site name ( Tarnaka )Save it.

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2) Requisitions
2.1 Purchase Requistion
2.1.1 Create Requisition
Only the member of the organization can create the requisition. Purchasing Vision Operation(USA) :::: Requisitions :::: Requisition Select Type as Purchase Requisition Enter the item name ( Air Conditioner ) , Quantity ( 5 ) , Price ( 10000 ) Change the organization to the child organization to which the item is already assigned ( Boston Manufacturing ) Change the Location to any Sub Inventory ( FGI )

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Click on Distributions Click on Charge Account text box ( 01- 000 1410 0000 000 ) Save it

Note the Requisition Number ( 5779 ) Click Approve Click OK.

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2.1.2 Verify Requisition Status Purchasing Vision Operation(USA) :::: Requisitions :::: Requisition Summary Enter the Requisition Number ( 5779 ) and Click on Find

Observer that the Approval status as Approved.

2.2 Internal Requisition

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3) Types of Purchase Orders

3.1 Standard Purchase Order

3.1.1 Standard Purchase Order with Direct Receipt Routing.

3.1.1.a Generation of Purchase Order Purchasing Vision Operation(USA) :::: Purchase Orders :::: Purchase Orders Enter the Supplier ( PCH ) , Site ( Tarnaka ) , Change Organization ( M2 Boston ) Enter the Item ( Air Conditioner ) , Quantity ( 5 ) , Price ( 10000 ) , Need-By ( 23-May -2011 ) and Save it . Note the PO,Rev Number ( 4738 )

Click on Shipments

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Click on Distributions Save it. Click on Receiving Controls Enter the Receipt Routing as Direct Routing Click OK.

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Close the Shipments window Click on Approve Click OK. Observe that the Status is changed to Approved.

3.1.1.b Verification of Purchase Order in Purchase Order Summary Purchasing Vision Operation(USA) :::: Purchase Orders :::: Purchase Order Summary Enter the Number ( 4738 )
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Click Find

Notice that the Approval Status is Approved

3.1.1.c Generation of Receipts Purchasing Vision Operation(USA) :::: Receiving :::: Receipts Enter the Purchase Order ( 4738 )
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Click Find

Close the Receipt Header window Enable the Check Box beside the Quantity text box Enter the Sub Inventory ( FGI ) Save it.

3.1.1.d Check the On Hand Availability Change the Responsibility to Inventory Change the Organization to Child Organization ( M2 Boston Manufacturing )
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Inventory :::: On Hand Availability :::: On Hand Quantity Enter the Item / Revision ( Air Conditioner )
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Click Find

Check the Material Workbench

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Select Item ( Air Conditioner ) Click on Availability

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3.1.2 Standard Purchase Order with Standard Receipt Routing 3.1.2.a Creation of Planned Purchase Order Change Responsibility to Purchasing Vision Operation(USA) Generation of Purchase Order with existing Purchase order ( 4738 ) Purchasing Vision Operation(USA) :::: Purchase Orders :::: Purchase Orders Go to Query Mode (F11) Enter the PO,Rev ( 4738 ) Retrieve the data ( Ctrl + F11 ) To get the Existing Document

Tools :::: Copy Document To get the Existing Document Tools :::: Copy Document Click OK Note the new Purchase Order Number ( 4739 ) Click OK

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Click Ok. Note the new Purchase Order Number ( 4739 ) Click Ok.

Change the required fields Modify the Quantity ( 11 ) Save it Click on Shipments Click on Distributions Save it Click on Receiving Controls Enter the Receipt Routing as Standard Routing Click OK.

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Close the Shipments window Click on Approve Click OK.

3.1.2.b Verification of Purchase Order in Purchase Order Summar y

Purchasing Vision Operation(USA) :::: Purchase Orders :::: Purchase Order Summary Enter the Number ( 4739 ) Click Find Observe that the Approval Status is changed to In Process. ( Status is in In Process because the approval limit is more than the limit specified for the user ( limit is 1,00,000 ) )

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3.1.2.c Get Approval from the next higher level person in the Hierarchy Login as higher level person in the Hierarchy who has approval limits more than the previous user ( limit for previous user is 1,00,000 )

Purchasing Vision Operation(USA) :::: Notification Summary

Click on the hyperlink containing your purchase order number ( 4739 )

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Click on Approve.

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3.1.2.d Recheck the Purchase Order Status

Login as the previous user

Check the status of the Purchase Order ( 4739 ) in the Purchase Order Summary (Refer 3.1.2.b) Notice that it has changed to Approved. 3.1.2.e Generation of Receipts Purchasing Vision Operation(USA) :::: Receiving :::: Receipts Enter the Purchase Order ( 4740 ) Click Find Close the Receipt Header window Enable the Check Box beside the Quantity text box Save it. ( Observe that the sub inventory field is not editable as it is Standard Receipt routing method ) ( Refer 3.1.1.c )

3.1.2.f Receiving the items into Sub Inventory Purchasing Vision Operation(USA) :::: Receiving :::: Receiving Transactions

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Enter the Purchase Order ( 4739 ) Click on Find Enable the check box beside the Quantity Enter the Sub Inventory ( FGI )

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Save it. 3.1.2.g Check the On Hand Availability ( Refer 3.1.1.d ) Change the Responsibility to Inventory Change the Organization to Child Organization ( M2 Boston Manufacturing ) Inventory :::: On Hand Availability :::: On Hand Quantity Enter the Item / Revision ( Air Conditioner ) 3.2 Planned Purchase Order For items whose supply date is tentative. The PO is released when material is required by us / sent by supplier against the release. 3.2.1 Planned Purchase Order with Direct Receipt Routing 3.2.1.a Generation of Purchase Order Purchasing Vision Operation(USA) :::: Purchase Orders :::: Purchase Orders Enter the Type as Planned Purchase Order Enter the Supplier ( PCH ) , Site ( Tarnaka ) , Change Organization ( M2 Boston ) Enter the Item ( Air Conditioner ) , Quantity ( 5 ) , Price ( 10000 ) , Promised ( 23-May -2011 )

Save it Note the PO,Rev Number ( 4743 ) Click on Shipments Click on Distribution
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Save it Click on Receiving Controls Enter the Receipt Routing as Direct Routing Click OK. Close the Shipments window Click on Approve Click OK. Observe that the Status is changed to Approved. ( Refer 3.1.1.a ) 3.2.1.b Verification of Purchase Order in Purchase Order Summary Purchasing Vision Operation(USA) :::: Purchase Orders :::: Purchase Order Summary Enter the Number ( 4743 ) Click Find Notice that the Approval Status is Approved ( Refer 3.1.1.b) 3.2.1.c Release the Items Purchasing Vision Operation(USA) :::: Releases Enter the PO,Rev ( 4743 ) Enter the Quantity you need to release ( 3 ) ( From total 5 Available ) Save it

Click on Distributions Save it

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Click on Approve and Ok. 3.2.1.d Generation of Receipts Purchasing Vision Operation(USA) :::: Receiving :::: Receipts Enter the Purchase Order ( 4743 ) ( Refer 3.1.1.c ) 3.2.1.e Check the On Hand Availability Change the Responsibility to Inventory Change the Organization to Child Organization ( M2 Boston Manufacturing ) Inventory :::: On Hand Availability :::: On Hand Quantity Enter the Item / Revision ( Air Conditioner ) ( Refer 3.1.1.d ) 3.2.2 Planned Purchase Order with Standard Receipt Routing 3.2.2.a Creation of Planned Purchase Order ( Refer 3.2.1.a ) Change the Receipt Routing to Standard Receipt Routing.

3.2.2.b Release the Items ( Refer 3.2.1.c )

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3.2.2.c Generation of Receipts ( Refer 3.2.1.d ) 3.2.2.d Receiving the items into Sub Inventory ( Refer 3.1.2.f ) 3.2.2.e Check the On Hand Availability ( Refer 3.2.1.e ) 3.3 Blanket Purchase Agreement 3.3.1 Creation of Blanket Purchase Agreement Enter the type as Blanket Purchase Agreement Enter the Agreed Amount ( 50000 ) Enter the item ( Air Conditioner ) , Price ( 10000 ) Observe that the Quantity is not editable.

Save it Note the PO,Rev ( 4745 ) Click on Terms Enter the Effective date ( 22-May- 2011 ) and End date ( 22-May-2012 )

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Click Approve Click OK. 3.3.2 Release the Items Enter PO,Rev ( 4745 ) Enter the Quantity ( 3 ) Save it.

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Click on Distributions Click on charge account ( 01 000 1410 0000 000 ) Save it

Click on Approve Click OK 3.3.3 Generation of Receipts

( Refer 3.2.1.d )
3.3.4 Receiving the items into Sub Inventory Purchasing Vision Operation(USA) :::: Receiving :::: Receiving Transactions Enter Purchase Order ( 4745 ) Click Find Enable the check box beside the Quantity Enter the Sub Inventory ( FGI ) Save It

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3.3.5 Check the On Hand Availability ( Refer 3.2.1.e )

3.4 Contract Purchase Agreement

Purchasing diverse items from a single supplier. A Standard PO is created against a CPA 3.4.1 Creation of Contract Purchase Agreement Enter the type as Contract Purchase Agreement Enter the Amt Agreed ( 50000 ) Observe that all fields are not editable.

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Save it Note the PO,Rev ( 4747 ) Click on Terms Enter the Effective date ( 22-May- 2011 ) and End date ( 22-May-2012 )

Click Approve and OK.

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3.4.2 Create the Standard Purchase Order against Contract Purchase Agreement Enter the Quantity ( 3 ) , Price ( 10000 )

Open the Reference Documents tab Click on Contract Enter the Contract Purchase Agreement Number ( 4747 )

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Save it Note the Purchase Order Number ( 4748 ) Click on Approve Click OK 3.4.3 Release the Items Enter Po,Rev ( 4748 (Refer 3.2.1.c )

3.4.4 Generation of Receipts

( Refer 3.2.1.d )
3.4.5 Receiving the items into Sub Inventory Purchasing Vision Operation(USA) :::: Receiving :::: Receiving Transactions ( Refer 3.1.2.f )

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4)

Auto Create

Purchasing Vision Operation(USA) :::: Auto Create Enter the Requisition number ( 5779 ) Select the Approved field as YES Clear all the fields except requisition

Click Find Enable the check box beside the requisition Save it

Click on Automatic
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Click on create Note the PO,Rev number ( 4749 )

Click on Shipments Click on Receiving Controls Change the Receipt Routing to Direct Delivery Click OK
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Save it Enter the Supplier ( PCH ) and Site name ( Tarnaka )

Click Approve Click OK.

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5) Hierarchy
5.1 Position Hierarchy
5.1.1 Create Jobs:
US HRMS Manager>Work Structure>Job>Description

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5.1.2 Create Position

US HRMS Manager>Work Structure>Positions>Description

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5.1.3 Creating Employee

US HRMS Manager >People > Enter and Maintain\

5.1.4 Assign Job and Positions to employees

5.1.5 Create User and assign Employee to User and Responsibility Assignment
Change the Responsibility to System Administrator Add Purchasing Vision Operations (USA) responsibility.

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5.1.6 Create Position Hierarchy

US HRMS Manager >Work Structure >Position >Hierarchy

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5.1.7 View Diagrammer

US HRMS Manager> Work Structure >Position > Diagrammer

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5.1.8 Run Fill Employee Hierarchy Module

Fill Employee Hierarchy Purchasing Vision Operations(USA) > View > Request > Submit

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5.1.9 Assign Position Hierarchy to Document types

PO>Setup>Purchasing>Document type

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5.1.10 Create Approval Groups

Specify Approval limits Purchase Order > Setup > Approval > Approval Groups

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5.1.11 Assign Approval Groups to Positions

Purchase Order >Setup>Approval>Approval Assignments

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5.1.12 Buyer Setup

Purchase Order > Setup > Personnel > Buyer

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5.2 Job Hierarchy 5.2.1

( Refer 5.1.1)

Create job

US HRMS Manager>Work Structure>Job>Description

5.2.2
( Refer 5.1.3 )

Creating Employee

US HRMS Manager >People > Enter and Maintain

5.2.3

Assign Job and Supervisor to employee

5.2.4 Create User and assign Employee to User and Responsibility Assignment
Change the Responsibility to System Administrator Add Purchasing Vision Operations (USA) responsibility.

5.2.5

Create Approval Groups

Specify Approval limits Purchase Order > Setup > Approval > Approval Groups

(Refer 5.1.10 )

5.2.6

Assign Approval Groups to Jobs

Purchase Order >Setup>Approval>Approval Assignments ( Refer 5.1.11)

5.2.7

Buyer Setup

Purchase Order > Setup > Personnel > Buyer ( Refer 5.1.12 )

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PURCHASING MODULE TECHNICAL DETAILS

PO_VENDORS Gives information about your suppliers. The primary key is VENDOR_ID. PO_VENDOR_SITES_ALL Gives information about supplier sites. The primary key is VENDOR_SITE_ID. PO_VENDOR_CONTACTS Gives information about supplier site contacts. The primary key is VENDOR_CONTACT_ID. PO_REQUISITION_HEADERS_ALL Gives information about requisition headers. The primary key is REQUISITION_HEADER_ID. PO_REQUISITION_LINES_ALL Gives information about requisition lines. The primary key is REQUISITION_LINE_ID. PO_REQ_DISTRIBUTIONS_ALL Gives information about the accounting distributions associated with each requisition line. The primary key is DISTRIBUTION_ID. PO_HEADERS_ALL Gives information for your purchasing documents. The primary key is PO-HEADER_ID. PO_LINES_ALL Gives current information about each purchase order line. The primary key is PO_LINE_ID. PO_LINE_LOCATIONS_ALL Gives information about purchase order shipment schedules and blanket agreement price breaks. The primary key is LINE_LOCATION_ID. PO_DISTRIBUTIONS_ALL Gives accounting information for a purchase order shipment line. The primary key is PO_DISTRIBUTION_ID. PO_RELEASES_ALL Gives information about blanket and planned purchase order releases. The primary key is PO_RELEASE_ID.

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