SAP Cycles Flashcards
OTC (Order To Cash) Cycle
- Receive Sales Order/ Spot buy
- Run ATP (Availability to Promise)
- 5 create sales order
- Notify customer re: order confirmed
- Order is Shipped or Service Performed
- 5 Notify Customer Re:Shipment
- Invoice Created & Sent to Customer
- Customer Sends Payment or requests his bank to pay your bank
- 5 Sends payment details
- 6 your bank sends account statement or lockbox data
- Payment Recorded in GL
P2P (Procure to Pay) Cycle
- MRP (Material Resource Planning)
- Vender Selection
- Request for Quotation
- PR/Preq (Purchase Requisition)
- Purchase Order
- Goods Receipt
- Goods Receipt Invoice
- Invoice Verification
- Payment to Vendors
MRP (Material Resource Planning)
Refers to Technique of using Projected Manufacturing Production Schedule to plan what supplies will be needed and when. •MRP Type controls: 1. MRP Procedure 2. Pricing 3. Material Valuation
Vendor Selection
Vendors are selected by obtaining various Quotations & Comparing them.
RFQ (Request for Quotation (840)
Requests from various Vendors to Submit Quotation for Materials or Services.
*Quotes will also contain Vendors Terms & Conditions
PR (Purchase Requisition)
An internal request made to the Buyer for provision of certain Materials by specified date.
A PR converts to RFQ, PO or outline Agreement.
PO (Purchase Order)
- “Promise to Pay”
- Formal Request to a Vendor to Supply Certain Goods
Usually specify:
Terms of Payment, Incoterms (International Commercial Terms), Delivery Date, Specifications, Material Qty, Price & Material Numbers
GR (Goods Receipt)
Created to reflect Goods Receipts for goods ordered using PO Process.
GRIN (Goods Receipt Invoice)
Vendor’s Invoice
Matching the Goods with the PO. Goods Movement is entered into the System, Stock Accounts Updated and Material Documents Posted once Qty and Condition of Materials are confirmed.
Invoice Verification (Payment Invoice)
Once the Goods Receipt has been verified, the Invoice for the Vendor is Approved and Created.
Payment To Vendors
Vendors are Paid as Per Payment Terms
Check Banking, Lockbox
ATP
•(Available to Promise)
•Checking Availability (ATP Quantity) by Verifying:
1. Current Stock
2. Inward Movement: Can be Purchase Order (Procured Externally) or Planned Order (Planned Manufacturing)
3. Outward Movement: Goods Reserved for Sales Orders & Planned Deliveries (To be Shipped out)
Actual Warehouse Stock vs. ATP Quantity
Actual Stock is all Current Physical Stock
•ATP Qty is Actual Stock plus Inward Movement minus Outward Movement
RLT
- Replenishment Lead Time
- The Time it takes to Make the Material Available.
•if Purchasing:
1. Purchasing Lead Time + 2. G/R Proc. Time + 3. Planned Delivery Time
•if Producing in-House:
- Current Time + 2. Production Time + 3. G/R Processing Time
* set up in MRP
G/R Processing Time
•Goods Receipt Processing Time:
(confirm, account, unpack, store goods)
- Operating Time of the handling resource
- Working time per day (Hrs)
- End of last order activity
