Purchasing Super User Training

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PurchasingSuper User Training
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Welcome and Ground Rules

• Have fun and enjoy the opportunities we have to
  contribute to SBBCs 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

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Logistics
Before we get started ...
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SAP Master Data

• Master Data Records contain information that
  rarely changes
• Using Master Data Records in purchasing documents
  reduces data entry, errors, and redundancy
• Material Master Records include information such
  as unit of measure, description, and purchasing
  data
• Vendor Master Records include information such as
  address, contact information, and payment terms

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Material Request Form

• A material request form will be completed and
  submitted to the Data Strategy Group whenever a
  new Material Master Record needs to be created

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Demonstration and Exercise

• Scenario Display a Material Master Record
• Transaction Code MM03

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Vendor Profile Form

• The Vendor Profile Form must be completed and
  submitted to the Data Strategy Group whenever a
  new Vendor Master Record needs to be created

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Demonstration and Exercise

• Scenario Display a Vendor Master Record
• Transaction Code MK03

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Types of Purchase Requisitions

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

Standard Requisitions Framework Requisitions FNS Commodity Requisitions
Are used for external procurements Created manually by schools depts or automatically for MRP items Used for both materials services Can be entered with or without reference to a Material Master Record Require a Goods Receipt Are used for external procurements Can be created using an attached list for orders of 25 or more line items Are created for items for which pricing is unknown until invoice is received (for example, fuel, landscaping, utilities) Cannot be used for assets Invoicing Plan Generated by FNS department to receive commodities received from government
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Material Order Form

• Requestors will provide details about the
  materials they wish to order by completing a
  material order form and forwarding it to the
  appropriate requisitioner

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Account 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
• ltBlankgt - Inventory (Warehouse, PPO, Cafeteria
  Groceries)
• Z Asset (Use in Phase 1)
• A Asset (Use in Phase 2)
• K - Cost Center
• P - Project
• Y - Grant

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Item Categories

• Each line item on a purchase requisition will
  have an Item Category
• Standard Used for material line items for which
  there is a specific quantity/unit price and a
  goods receipt requirement. The Item Category is
  left blank. (Ex items on contract or invoicing
  plans.)
• Limit Used for line items for which there is a
  funding limit but not a specific quantity/unit
  price and no goods receipt requirement The Item
  Category is B for Limits. (Ex Attached lists,
  landscaping, fuel.)

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Material 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

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Organization Structure
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Accounting Data
Legacy Line of Coding
SAP Accounting String
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
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
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Demonstration and Exercise

• Scenario Display a List of Purchase
  Requisitions (By Purchasing Group)
• Transaction Code ME5A

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Purchase Requisition Approval Process

• All requisitions are subject to principal / dept
  head approval
• Standard requisitions with items for specific
  material groups (ex chemicals) are subject to
  approval by Curriculum Specialist, Technology,
  Textbook, or FNS after approval by principal /
  dept head
• All requisitions are subject to final level of
  approval by area superintendent during a budget
  freeze

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Vendor Solicitations

• The following types of Solicitations will be
  discussed in this course

RFQ ITB/RFQ
For procurements between 5K 25K Will now be performed by Purchasing Dept Will be grouped by Collective Number (Req ) Can be electronically submitted to vendors (e-mail or e-fax) For Materials Services over 25K Solicitation of bids/proposals will continue in Demand Star Will be grouped by Collective Number (Demand Star Bid/RFP number)
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Demonstration and Exercise

• Scenario Create RFQ to Three Vendors
  Referencing a Standard Requisition
• Transaction Code ME41

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Demonstration and Exercise

• Scenario Change an RFQ
• Transaction Code ME42

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Demonstration and Exercise

• Scenario Message Output - RFQ
• Transaction Code ME9A

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Demonstration and Exercise

• Scenario Create RFQ Referencing a Framework
  Requisition with an Attached List
• Transaction Code ME41

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Demonstration and Exercise

• Scenario Create ITB
• Transaction Code ME41

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Demonstration and Exercise

• Scenario Display RFQ/RFQ/ITB
• Transaction Code ME43

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Demonstration and Exercise

• Scenario Display RFQs by Material Group
• Transaction Code ME4C
• Display by Material Group from last exercise
• Display by Purchasing Group to view RFQsfor a
  given buyer

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Maintaining Quotations

• Captures vendor responses to RFQs, RFPs, and
  ITBs
• Includes each vendors pricing, delivery, and
  contract terms
• Facilitates faster PO/Contract creation by
  referencing Vendor quotations
• Quotations will be maintained for RFPs and ITBs
  from successful bidders

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Demonstration and Exercise

• Scenario Maintain a Vendor Quotation
• Transaction Code ME47

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Demonstration and Exercise

• Scenario Display a Quotation
• Transaction Code ME48

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Contracts

• The Our Reference field will be the bid number
  advertised in Demand Star
• Can be limited by Plant (Schools Departments,
  Food Nutrition, Warehouses)
• Will replace Open POs where funds do not need to
  be encumbered up-front
• Can have multiple POs issued as releases against
  them when materials or services are required
• Can be for specific items/services or for just a
  total value (Ex catalog bids)

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Demonstration and Exercise

• Scenario Create a Contract Referencing an ITB
• With Line Items
• Without Line Item (Value Contract)
• Transaction Code ME31K

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Demonstration and Exercise

• Scenario Change a Contract
• Transaction Code ME32K

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Demonstration and Exercise

• Scenario Display a Contract
• Transaction Code ME33K

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Demonstration and Exercise

• Scenario Display a List of Contracts
• Transaction Code ME3N

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Purchase Order Text Notes

• Purchase Order text and internal notes can be
  entered, pasted, or updated on the Texts tabs in
  either the PO header or the line item details
  sections.

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Delivery Addresses

• The initial delivery address defaults from the
  storage location, but it can be overridden by
  either the requisitioner or the buyer by typing
  an alternate address or selecting a different
  standard address code on the Delivery Address tab
  in the line item details section.

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Tolerances

• The following tolerances apply to purchasing and
  material documents
• Purchase Order line items can be created for the
  lesser of 10 or 100 over the value of the
  Requisition line item
• Goods Receipt tolerances are set in the Purchase
  Order
• Invoice line items can be paid for the lesser of
  1 or 10 over the unit price of the item

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Types of Purchase Orders

• The following Purchase Order types will be
  discussed in this course
• Standard
• Framework
• Emergency
• Conversion
• Student Assessment

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Standard Purchase Orders

• Standard POs are created referencing standard
  purchase requisitions
• Standard purchase order creation can be
  accomplished through
• Manual creation by a purchasing agent
• Auto PO created by SAP
• All items are accepted through a goods receipt
• Information brought in from requisitions
  includes
• Item details
• Account assignment category
• Delivery addresses
• Vendor if specified
• Texts

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Demonstration and Exercise

• Scenario Create a Standard Purchase Order
• Transaction Code ME21N

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Printing Purchase Orders

• Using transaction code ME9F, you can select
  purchase orders (by PO number, Vendor number,
  Purchasing Group, etc) that you want to print.

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Demonstration and Exercise

• Scenario Message Output Purchase Orders
• Transaction Code ME9F

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Purchase Orders Maintenance

• Purchase Order change requirements will be
  communicated to Purchasing via a Purchase Order
  Maintenance form submitted through CAB

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Purchase Order Versions

• PO Versions are tracked on the Versions tab in
  the Header section of the PO.
• In order for a version to be printable, you must
  select the Version Completed checkbox or the
  Complete Version flag.

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Demonstration and Exercise

• Scenario Change a Standard Purchase Order
• Transaction Code ME22N

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Demonstration and Exercise

• Scenario Display a Standard Purchase Order
• Transaction Code ME23N
• For this exercise, display Purchase Order
  450000578 to review PO history

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Framework Purchase Orders

• 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)

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Demonstration and Exercise

• Scenario Create a Framework Purchase Order with
  an Invoicing Plan
• Transaction Code ME21N

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Demonstration and Exercise

• Scenario Create a Framework Purchase Order
  Limits with Attached List
• Transaction Code ME21N

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Demonstration and Exercise

• Scenario Purchasing Reporting
• Transaction Code ME80FN

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Demonstration and Exercise

• Scenario Display Purchasing Documents per PO
• Transaction Code ME2N

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Demonstration and Exercise

• Scenario Display a List of Purchase Orders by
  Material Group
• Transaction Code ME2C

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Emergency Purchase Orders

• Necessary if P-card cannot be used during
  emergency
• Issued manually by purchasing agents using
  external numbering during a crisis and created in
  SAP after the emergency
• No purchase requisition required
• No system approval required since request comes
  to the Purchasing Department from principals,
  department heads or Emergency Operating Center

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Conversion Purchase Orders

• Open legacy POs will be imported to SAP to
  support outstanding goods receipts and invoice
  receipts
• The document type for conversion POs will be
  ZCNV
• Legacy PO numbers will start with a Z for FY2000
  POs and later Y for FY1999 POs and earlier
• The MSA PO number will be in the internal notes
  tab of the item details section

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Student Assessment Purchase Orders

• Student Assessment POs are created to receive
  assessment materials into inventory at zero cost
• No requisition is required
• There is no financial impact to the budget
• There will be one PO for the entire year
• The document type is ZA

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Purchase Orders for the Next Fiscal Year

• Requisitions for the next fiscal year will have
  dates later than July 1st
• When the PO is being created, change the document
  date to July 1st of the next fiscal year
• POs for contract items less than 25K will be
  automatically generated
• In the Texts tab of the PO Header section, enter
  the standard text note SBBC Next Fiscal Year

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Auto-Generated Purchase Orders

• SAP will automatically convert requisition lines
  under 25,000 with a valid contract
• POs will be ready for purchasing agent review
  before they are transmitted to vendors
• POs will be created per location
• Auto PO indicator on vendor master and material
  master record must be checked

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Wrap-Up/QA