The Components of The Logistics Information System
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The Components of The Logistics Information System
Reporting 121
Figure 4-34: List of requisitions. Copyright SAP AG 2011
Demo 4.12: Reporting – lists
PURCHASING INFORMATION SYSTEMS
Recall from Chapter 2 that the purchasing information system (IS) is one of the components of the logistics information system. Purchasing IS provides both standard and fl exible analysis capabilities.
In standard analysis, the characteristics are organizational levels and master data relevant to the procurement process. Key fi gures include quan- tities, such as the amount of a material ordered or delivered; value, such as the value of material ordered or delivered; and counts, such as the number of purchase orders. Companies combine the characteristics and key fi gures over a specifi c time period to generate meaningful information that they can use to evaluate the performance of the process. Examples of this type of information are:
- The quantity of a particular material ordered in the last 30 days
- The quantity of a material delivered by a particular vendor last week
- The number of purchase orders send to a particular vendor last month
- The average time between sending a purchase order and receiving the materials in the last year, for each vendor
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- The average value of purchase orders sent to a particular vendor in the last quarter
Figure 4-35 provides an example of standard analysis using the purchasing information system. In this example, the characteristic selected is purchas- ing group, and the key fi gures are purchase order value and invoice amount, for two months (February and March). The top part of the resulting report shows two purchasing groups (the United States and Europe) and the key fi g- ures (order value and invoice amount) for each one. The fi gure illustrates the drilldown feature, showing that the United States purchased from two ven- dors, Spy Gear and Redwood Kits. It also highlights the data for one of the vendors, Spy Gear, for each of the two months.
Figure 4-35: Standard analysis
122 CHAPTER 4 The Procurement Process
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Demo 4.13: Reporting – standard analysis using the purchasing information system
In contrast to standard analysis, fl exible analysis enables the user to defi ne the content and format of the analysis. We explained in Chapter 2 that in fl exible analysis, characteristics and key fi gures can be combined as needed. Figure 4-36 is an example of fl exible analysis using the purchasing information system. The report in the fi gure is based on combining the characteristics of vendor, material, and month with the key fi gures order value and number of items in the order. Vendor and material are displayed in the rows, while the month, order value, and number of order items are shown in the columns.
Figure 4-36: Flexible analysis
C H A P T E R S U M M A R Y
The procurement process involves the activities required to purchase, receive, and pay for the goods and services that an organization needs for its operations. A company’s procurement process is typically optimized for both the types of goods and services it purchases and the location and use of those goods by other processes, such as manufacturing. Because the procurement process involves signifi cant amounts of collaboration and commerce with suppliers, it must be strategically linked with the manufacturing and material planning pro- cesses to ensure that the proper amount of the correct materials are procured at the right price for the right time. In addition, given the amount of money that companies spend during the procurement process, many of the data and
Chapter Summary 123
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requirements associated with purchasing are designed to ensure proper fi nan- cial accounting and controlling compliance.
The procurement process consists of six key steps: requirements deter- mination, supplier selection, order processing, goods receipt, invoice verifi – cation, and payment processing. To function properly, procurement requires organizational data such as plant, storage locations, purchasing organization, and purchasing group. Master data are also needed to account for the value of the goods and services that are purchased as well as for controlling purposes to manage the process effi ciently. Tolerances, controls, and conditions are predetermined data qualities that enable the procurement process to oper- ate in a more automated fashion. Materials that have been received by the company must be assigned to a material account in order to properly record the fi nancial impact of the procurement and use of the material. In addition, materials that have been received into stock must be classifi ed according to their availability status to ensure that they are properly allocated to the pro- cesses that utilize them.
Likewise, when materials are moved within the organization, either from one process to another or from one storage location to another, the movement must be recorded to properly account for the quantity, value, and location of the goods.
K E Y T E R M S
Account assignment category
Account assignment object
Account determination
Accounting data
Blocked stock
Company-level purchasing organization
Conditions
Condition types
Consignment
Consumable materials
Contracts
Delivery document
Delivery tolerances
Enterprise-level purchasing organization
Financial accounting data
General data
Goods issue
Goods movement
Goods receipt
Goods receipt document
Goods receipt processing time
In quality inspection
Invoice verifi cation
Item categories
Material document
Movement types
Outline purchase agreements
Packing list
Plant-level purchasing organization
Price control
Purchase order
Purchasing data
Purchasing group
Purchasing info record
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Purchasing organization
Scheduling agreements
Services
Source list
Standard
Stock in transit
Stock materials
Stock transfer
Stock transfer
Stock types
Storage locations
Subcontracting
Third-party order
Three-way match
Transfer posting
Unrestricted use
Valuation class
Valuation currency
Vendor master data
The Components of The Logistics Information System
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