i am uploading Procurement process

1. Introduction
 Every organization acquires material or services to
complete its business needs. The process of buying
materials and obtaining services from vendors or
dealers is procurement.

2. Purchasing Document
 Purchasing Document is used for purchasing for
materials and service
 Every purchase document consist of Header data, Item
overview & Item Details
 Internal Documents
 External Documents

3. Procure to Pay

4. Determination of Requirements
 The Material requirements
are identified by the user
departments.
 Automatic through MRP
 Tcode-ME51N
 Standard Doc Type: NB

5. Purchase Requisition

6. Source Determination
 Identify the source of supply
 Based on past orders and
existing longer-term purchase
agreements.
 Purchase info record

7. Vendor Selection
 Vendor selection is
mainly Based on Price
and Quality
 Local vendor
 Foreign Vendor
 One-time vendor

8. PO Processing & Monitoring
 Purchase order is a formal
request to vendor to supply
certain goods under the
standard condition
 Sending the reminders to
vendors in a pre defined
intervals.
 T-Code: ME21N

9. PO in SAP MM

10. Goods Receipt
 Goods Receipt into warehouse
 Stock update
 Creation of material Document
 Creation of accounting document

11. Invoice Verification
 Vendor invoices are checked for
accuracy of process and
contents.
 PO based invoice Verification
 GR-Based invoice verification

12. THANK YOU