Purchase Requisition - CASE STUDY for SAP Implementation

Purchase Requisition - CASE STUDY for SAP Implementation Case1: Production Relevant Materials (Raw, Semi-Finished, Trading and Pa... 3:17 AM

Purchase Requisition - CASE STUDY for SAP Implementation

Case1: Production Relevant Materials (Raw, Semi-Finished, Trading and Packaging Materials)

All production relevant materials are subject to MRP. The requisitions for these materials will be raised automatically as soon as requirement is generated. The system will check whether the quantity required for the scheduled production order is available in the stores. If it is not, a purchase requisition will be raised. (Refer MRP BP).

The purchase requisition is an internal document and will be approved online using a three level release strategy depending on the total value of the purchase requisition, by the concerned reviewer, then if it is less than one million the Planning Manager and if it is exceeding one million the Head of Supply Chain. The release strategy will be applied at the overall value of the purchase requisition and will not be open to editing once it has been approved.

Case 2: Non- Production Items (Engineering Materials)

If the material is subject to MRP then automatic requisition will be raised, otherwise the engineering department will raise a manual requisition. The department will enter the material code and the quantity, and pass it on to the Purchase Department for subsequent procurement activities.

The purchase requisition for Engineering Materials will be approved online using a two level release strategy depending on the total value of the purchase requisition, if it is less than one million the Divisional Head and if it is exceeding one million the Head of Department. The release strategy will be applied at the overall value of the purchase requisition and will not be open to editing once it has been approved. In case of new items price will be entered by the purchase department in the purchasing info record and for regular item it will be picked by the system.

                                                                                                                            

Case 3: Marketing Items (Promotional Items)

Promotional items are requested by the Marketing Department. The marketing department will raise a purchase requisition for the promotional items using the material code created in the SAP system. Additional details of the promotional items will be provided on the purchase requisition, along with the marketing cost centre assignment. (The charging of the purchase requisition on cost centre basis will be finalized after the finalization of FI/CO).

The purchase requisition for Promotional Items will be approved online using a four level release strategy depending on the total value of the purchase requisition. It will be decided in the realization phase who will have the authority to release the purchase requisition and at which value it will be applied.

Case 4: Miscellaneous Items (with Item code/without item code)

Miscellaneous items will be charged off to their respective cost center and depending on their material type will be maintained in the inventory only on the basis of quantity. Such items may be identified with an item code, however it is not mandatory. The requesting department will raise a purchase requisition. For materials procured on a frequent basis, the user will enter the material code. However, if the requisition is for non-regular items, the requisition will not contain any material code, only the text and the quantity is to be mentioned in the PR. The material group will be specified in the purchase requisition and the requisitioner will enter his cost center number.

                                                                                                                                               

The purchase requisition for Miscellaneous Items will be approved online using a two level release strategy depending on the total value of the purchase requisition, if it is less than one million the Divisional Head and if it is exceeding one million the Head of Department. The release strategy will be applied at the overall value of the purchase requisition and will not be open to editing once it has been approved.

The Purchase and Marketing Department will run the purchase requisitions list, and will select all open purchase requisitions. The open purchase requisitions will include all types of requisitions, raised automatically via MRP and manually by user departments.

In case any changes need to be made to the PR, the Purchase Department will enter the changes required in the text field and the requisitioning department will make the required changes.

In case of any changes need to be made to the PR, the purchase department will enter the changes required in the text field and send back the PR to the requisitioning department. The requisition department will made the required changes and return to purchaser for order. In all this process the PR which sent back by purchaser will not be visible in the outstanding purchase requisitions record if the check-box ‘released requisitions only’ has been activated by the user.