Procurement of Direct Materials (J45)

This purchasing process uses purchase requisitions that are generated either by the Material Requirements Planning (MRP) process or manually by a requester. The conversion from a purchase requisition to a purchase order can either be done manually (in case adoptions are necessary) or automatically (applicable for large volumes). Alternatively, the purchase orders can be generated manually.

The purchase order can be subject to approval before being issued to a supplier. Goods are shipped from the supplier and the goods receipt is created with reference to the corresponding purchase order. Subsequently the invoicing process is triggered. The user can monitor the progress throughout the entire procurement process and can initiate reactive actions if needed.

Key Process Steps Covered

• Manage purchase requisitions
• Manage purchase orders
• Manage goods receipts
• Manage stock
• Manage invoices
• Manage down payments

Benefits

• Streamline procurement processes in an efficient and cost-effective manner
• Ensure highly automated processes for the procurement of direct materials
• Reduce manual effort greatly
• Monitor the procurement progress in real-time
• Use an analytical list page to monitor purchase order items

Where is Procurement of Direct Materials(J45) being used?

This Scope item is used in the following way:

• As a core function of Operational Procurement within Sourcing and Procurement Scope Item Group
• As a management function of Invoice Management within Sourcing and Procurement Scope Item Group
• As a core function of Inventory within Supply Chain Scope Item Group

Process flow of Procurement of Direct Materials (J45)

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management