The Associated Cement Companies Limited

Purchase Order
PO00 – PO Overview
ACC Mumbai, 11 JULY 2006
Rsubramania.sarma@acccement.com

Classified: INTERNAL USE ONLY Not to be quoted or reproduced without written permission
 Agenda

 Objectives
 Introduction
 Purchasing Functions
 Procurement Process Chain
 Procurement Process Overview
 Procurement Document Flow
 Invoice Verification Environment
 Procurement Organization
 Question & Answer
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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Objectives

 To understand PO functionalities
 To understand overview of main functionalities
in PO module
 To get to know organization structure in PO
module

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Introduction

 Purchase Order process or PO is one of sub-

modules in Material Management (MM) module
 It is an SAP functionality helping users work on
procurement process

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Purchasing Functions

 External Procurement of Material and Services

 Determination on possible Source of Supply for
a requirement
 Monitoring of delivery
 Goods Receipt or Service Entry Sheet
Maintenance

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Procurement Process Chain
SD
Sales
Order PP
Prod.
Order
Manual
MRP Requisition (MM) PR
Run
PM
Plnt.
Maint.

Payment Process (FI)

Purchase Order (MM)
APAY CASH
X X

Invoice Verification (MM) Goods Receipt (MM)

APAY GR/IR Inventory GR/IR
X X X X

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Procurement Process Overview
MRP Unplanned

Determination
of Outline Agreement
requirements Determination
Payment of source of Source List
supply
Info Record

Invoice
RFQ
Verification

Inventory
Goods
Receipt/ Management Quotation
Services Entry
Entry Sheet

Order Vendor
Monitoring Selection

Purchase
Contract
Order
Processing
Processing
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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Procurement Document Flow

Purchase
Requisition

Purchase
Order
Quotation
Vendor A
A

RFQ

Vendor Quotation
B B
Outline
Agreement

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Invoice Verification Environment

Material Price Vendor

Masters Conditions Masters

PO
Open Items

Goods Invoice
Receipt Verification

Invoice

Cost Material G/L

Job Order Assets PO
Center Masters Accounts

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Procurement Organization

 Purchasing organizational unit is responsible for

procuring various materials or services for one or
several plants and for negotiating general conditions of
purchase with vendors. The procurement organization
assumes legal responsibility for all external purchase
transactions
 Purchasing group is a subdivision under purchasing
organizational unit. It is sometimes called “Buyer group”.
Besides working in day-to-day buying activities, a
purchasing group also performs tasks for several
procurement activities

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Q&A

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 We…

Know the way, show the way, go the way

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MM-PO
The Associated Cement Companies 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission