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Questions and Answers
What is the key that represents the buyer or group of buyers responsible for certain purchasing activities?
What is the smallest organizational unit for which you can maintain a legal set of books?
What is the purpose of a Purchase Requisition?
What is the purpose of a Purchase Order?
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What is the purpose of Vendor Evaluation?
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What is the purpose of a Reconciliation Account?
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What is the purpose of a Quotation From Vendor?
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What is the first step in the procure-to-pay process?
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What is a Storage Location?
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What is the purpose of a Bill of Materials?
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What is a Scheduling Agreement?
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What is Master Production Scheduling?
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What is Dynamic lot sizing?
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What is Independent Demand?
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What is a Routing?
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What is a Production Order?
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What is the purpose of submitting a request for quotation to vendors?
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What is the difference between a quotation and a purchase vendor selection?
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What is the purpose of an outline agreement?
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What is the function of a storage location in a plant?
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What is the purpose of a routing?
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What is the purpose of an availability check?
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What is the purpose of inventory management?
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What is the purpose of a purchase information record?
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Study Notes
Procurement Process
- An RFQ (Request for Quotation) is an invitation to a vendor to submit a bid for the supply of materials or services.
- A quotation received from a vendor is a legally binding offer, containing prices and conditions for the materials specified in the RFQ for a predefined period of time.
Quotation and Pricing
- Buyers can perform Quotation Price Comparisons.
- Contracts consist of items defining the individual materials, material groups, or services with prices.
Inventory Management
- Inventory Management deals with the management of stock, either on value or quantity basis.
- Storage Location is an organizational unit allowing differentiation between the various stocks of a material in a plant.
Purchasing Organization
- A Purchase Organization is an organizational unit responsible for procuring services and materials.
- The buying activity for a plant takes place at the Purchasing Organization.
- Purchasing Information Record can be created manually.
- Purchasing Group is the key that represents the buyer or group of buyers who are responsible for certain purchasing activities.
Vendor Evaluation
- Vendor Evaluation helps purchasing evaluate vendors for sourcing while also enabling the company to monitor vendor relationships through performance scores and criteria.
Procure-to-Pay Process
- The first step in the procure-to-pay process is Purchase Requisition.
- Purchase Requisition is an internal document requesting the purchasing department to procure a specific good or service for a specified time.
- A Purchase Order is a formal request to a vendor for a specific material or service under the stated conditions.
Production Planning
- Production Planning is an integrated planning tool for batch-oriented process manufacturing.
- Routing is used as a template for production orders and run schedules.
- Availability check is used to determine whether the component, production resource tools, or capacities in an order are available.
- Sale and Operations Planning usually consists of three steps.
- Accurate forecasts are not optional in the manufacturing sector.
Production Processes
- Scheduling Agreement is a total quantity of material spread over a certain period, consisting of line items indicating quantities and their planned delivery date.
- Bill of Materials is used as a basis for product costing.
- SAP divides production into multiple processes.
- Variant bill of materials refers to several products with a large proportion of identical parts.
- Shop Floor Documents are printed upon release of the Production Order.
Master Production Scheduling
- Master Production Scheduling is planned at an aggregate level in time buckets.
- Dynamic calculates the optimum lot size for a several periods of net requirements.
Sales and Operations Planning
- Sales and Operations Planning information origination excludes Accounting.
- Independent demand is the source of demand that resides at another level.
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