Page 106 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes The Purchasing component has the following tasks:
1. External procurement of materials and services

2. Determination of possible sources of supply for a requirement identified by the materials
planning and control system or arising directly within a user department
3. Monitoring of deliveries and payments to vendors
Good communication between all participants in the procurement process is necessary for
Purchasing to function smoothly.
Purchasing communicates with other modules in the ERP System to ensure a constant flow of
information. For example, it works side by side with the following modules:

Controlling (CO)

The interface to the cost accounting system (Controlling) can be seen above all in the case of
purchase orders for materials intended for direct consumption and for services, since these can
be directly assigned to a cost center or a production order.

Financial Accounting (FI)

Purchasing maintains data on the vendors that are defined in the system jointly with Financial
Accounting. Information on each vendor is stored in a vendor master record, which contains
both accounting and procurement information. The vendor master record represents the creditor
account in financial accounting.
Through PO account assignment, Purchasing can also specify which G/L accounts are to be
charged in the financial accounting system.

Sales and Distribution (SD)

Within the framework of materials planning and control, a requirement that has arisen in the
Sales area can be passed on to Purchasing. In addition, when a requisition is created, it can be
directly assigned to a sales order.

Inventory Management

ERP’s Inventory Management system allows you to:
1. Manage your stocks on a quantity and value basis
2. Planning, Entry, and Proof of Goods Movements

3. Carrying Out the Physical Inventory
1. Managing Stocks by Quantity: In the Inventory Management system, the physical stocks
reflect all transactions resulting in a change in stock and thus in updated inventory levels.
The user can easily obtain an overview of the current stocks of any given material. For
each material, not only the stocks in the warehouse are shown, but also the stocks ordered
but not yet delivered, reserved for production or for a customer, and the stocks in quality
inspection can be monitored. For example, if a further subdivision by lots is required for
a material, one batch per lot is possible. These batches are then managed individually in
the stock. Special stocks from the vendor or from the customer (for example, consignment
stocks) are managed separately from your company’s own stock. This guide discusses the
various stock types used in the ERP System and how the corresponding stocks vary due to
goods movements.

100 LoveLy professionaL university