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Magal Chapter 3 - Chapter 3 The Procurement Process Click...

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Unformatted text preview: Chapter 3: The Procurement Process Click to edit Master subtitle style 1 1 Magal and Word | Essentials of Business Processes and ! and Information Systems | © 2009 Information Systems | © 2009 2/25/11 Outline A Basic Procurement Process (manual process) Role of Enterprise Systems in the Procurement Process Exercise Using Simulated SAP 2 2 Magal and Word | Essentials of Business Processes and 2/25/11 ! and Information Systems | © 2009 Information Systems | © 2009 A Basic Procurement Process Definition Requisition to pay All the steps needed to acquire/procure material Key Concepts and Assumptions B2C vs. B2B commerce Importance of standardized processes in B2B Conceptual Framework Physical Flow Document and Data Flow 3 3 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Physical Flow What is the trigger? What are the steps? What is the purpose of each step? Who is involved in each step? How is communication and coordination accomplished 4 4 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 2/25/11 Physical Flow 5 5 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Document flow Purchase Requisition Purchase Order Packing List Goods Receipt Document Vender Invoice and Payment Key questions regarding documents What is the purpose? What are the key data? General: Who, when, what, where 6 6 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 Process / step specific: varies 2/25/11 Purchase Requisition 7 7 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Purchase Order 8 8 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Packing List 9 9 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 A Goods Receipt Document 10 10 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 A Vender Invoice 11 11 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Information Flow Instance-Level Information Status of a purchase requisition / order Has a requisition been acted on? Has a PO been created and sent Have goods been received for the requisition / order? When? Where are the goods? If received, has an invoice been received? Paid? If not received, when can we expect the goods? 12 12 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Financial Impact Impact on balance sheet and income statement accounts Example: Procure $500 in materials. 13 13 Process B/S I/S step Purchase requisition Purchase order Goods receipt Vendor Invoice Magal and Word | Essentials of Business Processes receipt and Information Systems | © 2009 2/25/11 Role of enterprise systems in the procurement process Execute the Process Create Purchase Requisition Create Purchase Order Receive Shipment Receive Invoice and Send Payment Capture and Store Process Data Monitor the Process Instance-Level Information Flow Process-Level Information Flow 14 14 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Enterprise systems in 15 15 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Purchase Requisition in SAP 16 16 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Purchase Order in SAP 17 17 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Goods Receipt in SAP 18 18 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Invoice Receipt in SAP 19 19 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Vender Payment in SAP – Initial 20 20 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Vender Payment in SAP – 21 21 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Process monitoring (Information Instance level – status information Status of a purchase requisition / order (PO history) Process level – aggregate information How is the process doing? 22 22 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 2/25/11 Purchase Requisition History 23 23 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Purchase Order History 24 24 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Process-Level Information 25 25 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Exercise Using Simulated SAP The exercises will require you to complete the steps in the procurement process that have been discussed in this chapter. In particular you will: Create a purchase requisition for a number of trading goods Convert the requisition to a purchase order Enter a goods receipt into the system Enter a vendor invoice into the system Record a payment to the vendor Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 26 26 ...
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