MM Cookbook - Process Flow

By Subhajeet Behera

Determination of Requirements

The user department responsible is manually passing a requirement for materials to the purchasing
department via Purchase Requisition. Purchase requests are generated when business runs the MRP
and Request are also generated based in Consumption based planning (CBP) for Production and
Engg.Stores.

Determination of Source of Supply

The purchasing component helps the buyer determine the sources of supply. User use the
determination of the source of supply to create Requests for quotation (RFQs) and then to enter
quotations. User is accessing the existing Purchase Orders and Conditions in the System.

Vendor Selection and Comparison of Quotations

The System is capable of simulating pricing scenarios and simplifies the selection of vendors by making
price comparisons between the various quotations.

Purchase Order Processing

The purchasing system adopts information from purchase requisition and the quotation to help to create
Purchase Orders. They are also creating manual purchase order directly for stock, non-stock items,
services etc.

Purchase Order Monitoring

The buyer monitor the processing status of the purchase order online at any time and determine
whether goods or an invoice have been received for the relevant purchase order item.

Goods Receipt and Inventory Management

The Goods receiving requester confirms the receipt of the materials by simply entering the Purchase
Order Number. The system compares the goods receipt quantity with the purchase order quantity. By
specifying permissible tolerances, buyers can limit over deliveries and under deliveries of ordered
materials.
PURCHASING

Purchasing Functionality is integrated with Inventory Management and Invoice Verification

within MM.