Procurement Overview

This document is an overview of the basic procurement flow, which includes purchase orders, confirmations, and goods receipt. This document also highlights some special functions in the procurement area.

Description

The basic procurement flow includes both the manual creation of purchase orders and their automatic creation from planned orders and purchase requisitions.

  1. Planned Purchase Order

    You can create Planned Purchase Order manually, via MRP calculation, or by PO Requisition.

  2. Purchase Order

    This step includes both the manual creation of purchase orders and their automatic creation from planned orders and purchase requisitions.

  3. PO Confirmation

    Confirming a purchase order can consist of one or more of the following activities:

    • Purchase order confirmation
    • Shipment advice
    • Transport notification.

    These activities are optional and they can be performed independently from one another.

  4. Good receipt

    Goods receiving can be done in different ways and with different activities in M3.You can perform goods receipt and put-away. You can also perform quality inspection, either after the goods receipt or after the put-away. The quality inspection portion of the goods receiving flow is important. Normal inspection or extended inspection can be used, including inspection activities and inspection plans.

  5. Invoice Control

    To complete the procurement flow, invoice control is included. This includes booking supplier invoices in accounts payable and verifying them according to the purchase order.

To complete the procurement flow, invoice control is included. This includes booking supplier invoices in accounts payable and verifying them according to the purchase order.

The quality inspection portion of the goods receiving flow is important. Normal inspection or extended inspection can be used, including inspection activities and inspection plans.

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