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Procurement Processes - SAP Implementation

Procurement Processes   Overview of Procurement Processes The Purchase Department carries out procurement from local supplie... thumbnail 1 summary

Procurement Processes

 

Overview of Procurement Processes


The Purchase Department carries out procurement from local suppliers as well as foreign suppliers. The items include raw materials, packaging, trading, engineering materials (machine spares), and other miscellaneous items while the Marketing and Sales Department carries out the procurement of promotional items.

The purchase order is raised when a requirement is generated from the user (planning) department and stock is not available at the store. Thus the purchase process will begin with requirement identification and conclude with the finance department making payments for the purchases. 


Key improvements to be realized from this implementation include:

·    Requisitions can be generated automatically, via MRP, hence reducing the time, costs and efforts involved.
·         The status of the requisition can be viewed at any time, informing the when the goods are received.
·         The goods receipt is entered with reference to the purchase order, thus maintaining a link at all times.
·         The invoice may be entered with reference to a purchase order/GR. This ensures that the correct GR is matched with the invoice.
·         Costs can be apportioned among the requisitioning departments via the account assignment.

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