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SAP
Purchase Requisition Processing
May 12, 2020 1
Welcome!
Housekeeping
• Attendance Sheet
• Washrooms
• Fire exits
Expectations
• Ask questions
• One speaker at a time
• Respect others
• Turn off /silence phones
• Computers are for course
exercises
• Have fun!
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Objectives
After completing this course, you should be able to:
– Describe SAP ordering methods
– Describe order types and their uses
– Customize purchase requisition settings
– Search for materials
– Determine if material is ordered from a warehouse or vendor
– Create orders for materials and services
– Generate a list of existing purchase requisitions
– Describe the SAP release strategy and approval workflow
– Change a purchase requisition
– Confirm received services
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SAP Terms
Refer to the “Terms & Concepts” sheet
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Module 1
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Getting Started with Ordering
After completing this module, you should be able to:
– Describe SAP ordering methods
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Supply Chain Master Data
Material Master Records
Purchasing Info Records
Contracts
Source Lists
Vendor Purchasing Data
Material Master Records
In SAP, each material and service the
Winnipeg Health Region orders is:
– Referred to as a “material”
– Assigned a unique SAP material number
that has a corresponding material master
record in the system
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Material Types
• SAP organizes material master records by material type –
a group of materials with the same basic attributes
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Physical Materials Services
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Ordering Materials and Services
• Orders created using SAP identify the material or service
and contain specific information from the material master
record
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• Base unit of measure
• Material Description
• Material Group
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Physical Material Stock and Non-Stock
• At the site and department levels, physical materials are
broken down into two types
– Stock
– Non-stock
• Stock and non-stock materials may be ordered from a plant
warehouse or an external vendor
• Services that are not provided internally are ordered from
an external vendor
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SAP Ordering
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Requisitioning Inventory Management
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Inventory Management (IM)
• In IM, materials regularly ordered and used by an area are
maintained as inventory in a storage location (SLoc)
• For each physical stock material kept in an SLoc, certain
information is maintained in SAP, including:
– A maximum quantity (MAX) to be stocked in storage
– A reorder point (ROP) that determines when the material needs to
be reordered
– An assigned bin location to store the material
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Inventory Management
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Material Requirements Planning (MRP)
• For each SLoc, SAP’s Material Requirements Planning
(MRP) functionality runs automatically according to a set
schedule, and:
– Determines the stock that needs to be replenished
– Calculates the replenishment quantity
– Creates an order to replenish the stock
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Requisitioning
• Requisitioners use SAP to create a variety of order types
for materials and services
• The order type depends on where the material or service is
ordered from:
– An external vendor
– A plant warehouse
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Requisitioning Cycle
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Requisitioner
Accounts
Payable
Approver
Receiver
Buyer
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Review Questions
1. What are the two SAP ordering methods?
2. How are physical materials (stock and non-stock) and
services ordered?
3. What two ways can orders be created in SAP?
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Module 2
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Getting Started
After completing this module, you should be able to:
– Describe order types and their uses
– Customize purchase requisition settings
– Search for materials
– Determine if material is ordered from a warehouse or vendor
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Creating Orders in SAP
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Requisitioner-generated
– Materials from the plant warehouse or a vendor
– Services from a vendor
System-generated (IM-MRP)
– Materials from the plant warehouse or a vendor
to replenish SLoc stock only
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Purchase Requisition Document Types
• A variety of SAP purchase requisition types, known as
document types, can be created to order materials and
services from a vendor source
– A document type must be
specified in SAP each time
a purchase requisition is
created
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Purchase Requisitions
• Purchase requisitions contain a number of fields and tabs
that are organized into three main areas
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Purchase Requisition Area Important Fields And Tabs
Header Field:
• Header Note
Item Overview Field:
• Account Assignment Category*
• Item Category*
• Material*
• Quantity*
Item Detail Tab:
• Account Assignment tab*
• Source of Supply tab
• Delivery Address tab*
• Texts tab
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May 12, 2020
T-code: ME53N Display Requisition
• Refer to job aid:
−Display a Purchase Requisition
Activity 1: Demo
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Preparing to Create Purchase Requisitions
• Before you create purchase requisitions, your SAP settings
need to be customized
– Ensures that only the relevant data fields display in the SAP
create requisition window
– Reduces data entry effort
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May 12, 2020
T-code: ME51N Customize Purchase Requisition Settings
• Refer to job aid:
−Customize Purchase Requisition Settings
Activity 2: Exercise
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Searching for Materials in SAP
• Before you order a material or service using SAP:
– Perform a search in the system to determine if the material or
service has been assigned a corresponding material number
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• Material searches can be
performed in a number of ways,
including from directly within the
ordering t-code
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May 12, 2020
T-code: ME51N Search for Material
• Refer to job aid:
−Search for a Material or Material Group Number
Activity 3: Exercise
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Determining the Order Type
• Always check to see if a material is available from your
plant warehouse first, to determine if it is ordered:
– Internally from your plant warehouse
– Externally from a vendor
• Requests can be made to have a material extended to a
plant for ordering
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May 12, 2020
T-code: MM03 Determine Order Type
• Refer to job aid:
−Determine Order Type
Activity 4: Exercise
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Display Stock of Materials
• SAP can be used to display the current quantity on-hand for
a material at:
– A plant warehouse
– Storage locations (SLocs) within the plant
– SLocs within the Winnipeg Health Region
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May 12, 2020
T-code: MB52 Display Warehouse Stocks of Materials
• Refer to job aid:
−Display Warehouse Stocks of Materials
Activity 5: Exercise
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Review Questions
1. What should you do before ordering a material or a
service?
2. Why should you always check to see if the material that
you want to order is available from the warehouse before
creating an order?
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Module 3
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Ordering Materials and Services
After completing this module, you should be able to:
– Create orders for materials and services
– Generate a list of existing purchase requisitions
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Ordering Materials from a Vendor
• If a material is not available from the plant warehouse, it is
ordered from an external vendor
• Always perform a search to ensure you create the order
using an SAP material number
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Ordering Materials from a Vendor
• Some vendor catalogs can be accessed online directly from
within the ME51N screen in SAP to make
– Search and select items to order from their website
– Items will populate into the purchase requisition
• Standard requisition approval process applies
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Ordering Free Text Materials
• A “free text” requisition can be created to order materials
that do not have an assigned SAP material number
• Drop-downs menus are used to search for the applicable
entry in the requisition fields:
– Material Group
– Purchasing Group
– Source of Supply (Desired Vendor)
– Address
– Unit of Measure
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! A realistic valuation price is
required for a free text request.
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May 12, 2020
T-code: ME51N Create a Purchase Requisition (Vendor)
• Refer to job aid:
−Create a Purchase Requisition
−Purchase Requisition Reference
Activity 6: Exercise
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Suggested Order Unit
• A prompt appears when the ordered quantity in a purchase
requisition does not match the Winnipeg Health Region
standard purchase unit of measure
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Purchase Requisition Templates
• Templates can be created for purchase requisitions so that
they can be used
– As reference to create future identical purchase requisitions,
which reduces the amount of data entry required
– For recurring purchase requisitions
– To maintain a list of defined materials
• Templates can be saved for personal or public usage
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– Public templates are useful for areas where
multiple requisitioners create similar orders
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T-code: ME51N Create a Purchase Requisition (Template)
• Refer to job aid:
−Create, Save, and Load a Personal Requisition Template
−Create a Purchase Requisition
Activity 7: Exercise
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Purchase Requisitions for Services
• If an SAP material number does not exist for a service:
– Create a free text purchase requisition
– Select the Material Group associated with the service
• The material group triggers SAP to request confirmation
that a service is received after the vendor invoice is entered
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SAP Material Numbers
for Service Listing
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Service Approver
• After the vendor invoice is entered in SAP, a “Service
Approver” must confirm if the service was received
• The Service Approver’s SAP user ID must be identified in
the Requisitioned By field within the purchase requisition
– SAP validates the user ID entered into the field
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May 12, 2020
T-code: ME51N Create a Purchase Requisition (Service)
• Refer to job aid:
−Create a Purchase Requisition
−Search for a Material or a Material Group Number
−Purchase Requisition Reference
Activity 8: Exercise
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Ordering from the Plant Warehouse
• If a material is available from the plant warehouse, it can be
ordered directly from the plant warehouse
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Warehouse
HSC
Purchase Requisition
T-Code ME51N
Non-HSC
Reservation
T-code MB21
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May 12, 2020
T-code: ME51N Create a Purchase Requisition
(HSC Warehouse)
• Refer to job aids:
−Create a Purchase Requisition
−Purchase Requisition Reference
Activity 9: Exercise
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Reservation
Non-HSC sites only
• A reservation is created to order material from within a non-
HSC plant warehouse
• Includes both:
– Stock
– Non-stock
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Reservation Movement Types
Non-HSC sites only
• A movement type must be selected in SAP each time a
reservation is created to track material goods movement
– A unique three-digit number identifies each movement type
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# Movement Type
201 Non-stock material expensed to a cost center
261 Non-stock material expensed to an internal order
311 Stock material transferred into receiving SLoc
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T-code: MB21 Create a Reservation
• Refer to job aid:
−Create a Reservation
Activity 10: Exercise
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Reservation Changes
• A requisitioner-generated reservation can be changed for
the following reasons:
– Increase or decrease item quantity
– Delete an item
• Changes can only be made for “open” reservations – those
that have not already been filled by the warehouse
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T-code: MB22 Change/Delete a Reservation
• Refer to job aid:
−Change/Delete a Reservation
Activity 11: Exercise
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Additional SLoc Stock Material
• Stock materials for an SLoc are ordered via MRP after a
unit stock count is entered into SAP
– Enter a zero count into SAP if you need extra
– Submit a Site Inventory Change Request Form to adjust
the MAX/ROP
Site Inventory
Change Request
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Additional SLoc Stock Material
• An order can be created to order stock material in excess of
your MAX for exceptional situations:
– To satisfy a one-time need (e.g. for a specific patient)
– To maintain inventory levels for a specific period of time
(e.g. long weekend)
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Display and Order Materials
• You can generate a report to display materials by material
number and plant number, or use additional search criteria.
• Requisitioners can use the report to,
– Order non-stock materials
– View available stock
– View vendor contracts
– View material images, if available
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Complete the ZMM_MATORDER SAP Byte
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List Display of Purchase Requisitions
• You can display a list of purchase requisitions in SAP based
on specified search criteria, such as:
– A requisitioner
– Storage location (SLoc)
– Cost Center
– Material
– Date
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May 12, 2020
• T-code: ME5A List Display of Purchase Requisitions
• Refer to job aid:
−Display Purchase Requisitions
Activity 12: Demo
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Material Returns
• There are a number of reasons why a material may need to
be returned, for example:
– Damage prior to delivery
– Errors in ordering or shipping
– Patient transferred or discharged
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Returns
Reference Guide
• Information about material returns
is available on Insite
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Review Questions
1. How are orders created for materials that do not have an
SAP material number?
2. When creating a purchase requisition for a service, whose
SAP user ID must be identified in the Requested By field?
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Module 5
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Purchase Requisition Approval and Maintenance
After completing this module, you should be able to:
– Describe the SAP release strategy and approval workflow
– Change a purchase requisition
– Confirm received services
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SAP Release Strategy
• After a purchase requisition is saved, each line item
undergoes an approval process based on its dollar value
– Applies to requisitioner-generated vendor orders only
– Does not apply to requisitioner-generated warehouse orders
and MRP-generated requisitions
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Origin Order Type Approval Required
Requisitioner Vendor Yes
Requisitioner Warehouse No
System (MRP) All No
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Requisition Approval Levels
• The release strategy includes seven approval levels
– With corresponding maximum dollar value signing authorities
– Maintained in SAP
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SAP Release Strategy
• After you create and save a purchase requisition, SAP:
– Identifies the person(s) who will be the approver(s)
– Initiates the approval workflow
– Sends an email to notify the approver, which directs the
approver to the Business Workplace t-code in SAP
• Depending on the cost of the line item, the process may
require multiple approvals
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SAP Requisition Approval Workflow
• SAP identifies the approver(s) for a requisition line item
based on the:
– Dollar value of the material or service
– Cost center or internal order
– HR org structure (standard - NB)
– Custom table (special purpose account - ZSPF)
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Capital Requisition Approval
• Initial capital approvals are obtained outside of SAP
– Once obtained, a capital requisition (ZCAP) can be created
• Capital requisition approval workflow involves a maximum
of two approvals that are not based on cost
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The Business Workplace
• Requisitioners and approvers can both access the SAP
Business Workplace
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REQUISITIONERS APPROVERS
• View purchase requisition
approval/rejection messages
• Edit rejected purchase
requisitions
• Confirm received services
• View purchase requisition
approval work item messages
• Approve and reject purchase
requisitions
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Approval Workflow Escalation
• SAP workflow automatically escalates a purchase
requisition to the next approver:
– If the item is not acknowledged within a certain timeline
– To prevent delays in the approval process
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Monday Tuesday Wednesday Thursday Friday
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Approval Workflow Messages
• After an approval workflow is complete, the requisitioner:
– Will receive email notification indicating the result
– May access the SAP Business Workplace to view details
– Edit and resubmit a rejected requisition for approval (if the
rejection reason can be resolved)
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Changing a Requisition
• An existing purchase requisition can be changed in SAP
when a required update is identified, such as:
– Quantity
– Delivery address
– Cost Center
– Internal order
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HSC Requisitioners: will be notified by email if a
requisition created for a warehouse material cannot be
converted into an order, and will be required to make any
necessary corrections.
!
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Release Status
• The status of a requisitioner-generated requisition can be
viewed in the Release Strategy tab in the Change
Purchase Requisition screen
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May 12, 2020
T-code ME52N: Change Purchase Requisition
• Refer to job aid:
−Change a Purchase Requisition
Activity 13: Exercise
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Accounts Payable (AP) Service Workflow
• The Accounts Payable (AP) Service Workflow is used to
automate the goods receipt process for services
• After AP enters a vendor invoice for a service created on a
purchase order, a workflow is triggered to seek confirmation
that the service was received
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Confirm, Hold, or Reject Service
• Service Approver identified in the purchase requisition
receives an SAP-generated email notification in Outlook
– Service Approver is directed to the SAP Business Workplace
to make a selection for invoiced services
– Reminder emails are sent every 3 days until action is taken,
or 60 days have elapsed
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Confirm Reject Hold
AP Service Workflow Escalation
• An escalation email is sent directly to the AP processing
clerk and Buyer every 10 days until the Service Approver
takes action, or 60 days have elapsed
– If the Service Approver does not take action within 60 days,
the item is removed from the Service Approver’s inbox
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M T W TH F M T W TH F M
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Service Items On Hold
• Escalation is stopped for service items that are On Hold
– Service Approver receives a reminder in the Business
Workplace if an item is on hold more than 10 business days
Note: It is important to review your SAP in box regularly to
confirm or reject your service items!
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Hold
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T-code SO01: Business Workplace (Confirm Received Services)
• Refer to job aid:
−Confirm, Reject, or Hold Services
Activity 14: Demo
Review Questions
1. What kinds of purchase requisitions undergo an approval
process?
2. What process is in place to prevent delays in purchase
requisition approval?
3. What happens if a service workflow item is not confirmed
or rejected after 60 days?
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Course Summary
Having completed this course, you should be able to:
Describe SAP ordering methods
Describe order types and their uses
Customize purchase requisition settings
Search for materials
Determine if material is ordered from a warehouse or vendor
Create orders for materials and services
Generate a list of existing purchase requisitions
Describe the SAP release strategy and approval workflow
Change a purchase requisition
Confirm received services
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On-the-job Support
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Insite (SAP)
Quick Reference Non-HSC SAP Help Menu
New User Support Guide
Quick Reference HSC
May 12, 2020
Please Complete the Survey. Thank You!
https://www.surveymonkey.com/r/SAPILT
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