This comprehensive procedural document outlines the Indirect Purchasing process in SAP MM. The procedure is designed to support efficient operational sourcing while maintaining strict control over expenditure in accordance with the company’s Delegation of Authority (DOA). It formalizes the approach to managing requisitions for indirect purchases within the SAP system, detailing the processes to be followed by Requisitioners and Procurement teams alike. This standardized procedure ensures compliance, transparency, and efficiency in the procurement of non-production materials, equipment, and services across the organization. By implementing this robust process, the company aims to optimize its procurement operations, reduce risks, and drive value in its indirect spend management.
The document provides a detailed breakdown of the indirect procurement process. It is structured into three main subsections:
- Principles for Procurement: This subsection outlines the fundamental rules and considerations governing the indirect procurement process. It covers critical aspects such as when to raise requisitions, the importance of proper vendor selection, and special considerations for purchases.
- Procurement Process: A comprehensive step-by-step guide to the entire procurement lifecycle is presented here. It details each stage from initial requirement identification through to final payment, including the creation of purchase requisitions, approval workflows, purchase order generation, goods receipt, and invoice processing. The roles and responsibilities of different stakeholders at each step are clearly defined.
- Main SAP Screens Within Process for Procurement: This subsection provides practical guidance on navigating the SAP system to execute the procurement process. It includes detailed instructions and screenshots for key transactions such as creating purchase requisitions (ME51N), approving requisitions (ME54N), creating purchase orders (ME21N), and generating PO outputs (ME9F). This hands-on guide ensures users can effectively interact with the SAP system to carry out their procurement responsibilities.
The document serves as a comprehensive manual for all parties involved in the indirect procurement process, ensuring consistency, compliance, and efficiency in operations.