SAP FI FAQs – Procurement Cycle and Documents
1.Â Â Â Name the five major activities (in the order they occur) in the Procurement Cycle.
â€¢Â Â Â Purchase Requisition (MM)
â€¢Â Â Â Purchase Order (MM)
â€¢Â Â Â Goods Receipt (MM)
â€¢Â Â Â Invoice Verification (MM)
â€¢Â Â Â Vendor Payment (FI)
2.Â Â Â What is a Purchase Requisition?
A Purchase Requisition is a document that identifies an organizationâ€™s demand for a product or service from an outside vendor.Â It is an internal document (i.e., it is not visible to the vendor or any other outside organization).
3.Â Â Â What are the two ways a Purchase Requisition can be created?
â€¢Â Â Â Automatically as a result of a Materials Requirements Planning (MRP) run.
â€¢Â Â Â Manually by a user.
4.Â Â Â What is a Purchase Order?
A Purchase Order is a legal contract between a buyer and a vendor.Â It lists the materials or services to be purchased on specified terms and conditions (quantity, price / pricing conditions, delivery date).
5.Â Â Â Name the four steps necessary for creation of a Purchase Order.
â€¢Â Â Â Source Determination
â€¢Â Â Â Vendor Selection
â€¢Â Â Â Purchase Order Processing
â€¢Â Â Â Purchase Order Follow-Up
6.Â Â Â What are the different types of goods movements?
Goods receipts, goods issues, and transfer postings.
7.Â Â Â What is Invoice Verification?
Invoice verification is the process of matching Vendor Invoices to the Purchase Order and Goods Receipt documents.Â For matched vendor invoices, a payable is automatically created in the FI General Ledger.
8.Â Â Â How is the Payment Program used to make Vendor Payments?
The Payment Program is set to maximize cash discounts when paying open vendor items.Â It creates a list of proposed vendor items to be paid and suggests payment methods for each proposed payment.Â The user has the ability to make any changes before payments are made.
Note: The payment program selection strategy (e.g., maximization of cash discounts) is configurable.
9.Â Â Â Name the three different types of Materials Management documents.
â€¢Â Â Â Order documents
â€¢Â Â Â Goods receipt documents
â€¢Â Â Â Invoice Receipt documents
10.Â Â Â From which modules can the above documents be viewed?
â€¢Â Â Â Order documents can be viewed only in Materials Management.
â€¢Â Â Â Goods and Invoice Receipt documents can be viewed from both Materials Management and Financial Accounting modules.
11.Â Â Â What is a Request for Quotation (RFQ)?
A RFQ is a request of quotes from vendors for a particular good or service.Â An RFQ can be created with reference to a Purchase Requisition or be created directly.
12.Â Â Â How is a Purchase Order created in SAP?
A Purchase Order (PO) can be created directly or with reference to a RFQ, a Contract, a Purchase Requisition, or another Purchase Order.
13.Â Â Â What is an Outline Agreement?
An Outline Agreement documents a long-term arrangement with a vendor to provide materials or services at an agreed price.Â It is valid for a period of time or until a pre-defined total quantity or total value is reached.
14.Â Â Â What are the different types of Outline Agreements?
Contracts and Scheduling Agreements
15.Â Â Â For what is an Account Assignment Category used?
Account Assignment category is used to manually create Order documents.Â It determines which account assignment data is required for an item in order to allocate costs.
16.Â Â Â What is the purpose of a Goods Receipt document?
A Goods Receipt document is created when goods are received at a plant/warehouse.Â At this time, an accounting document is created to make a General Ledger entry, and a materials document is created to record changes in physical inventory.
17.Â Â Â What is the purpose of an Invoice Receipt document?
When invoices are received from a Vendor, an Invoice Receipt document is created in the system.Â This document can be linked to a Purchase Order, a Goods Receipt, a Delivery Note, or a Vendor.Â In addition to the materials document, an accounting document is created, which updates the relevant Vendor Account (sub-ledger) and General Ledger Accounts.
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