Since this process cannot be circumvented, management can be assured of the fact that no untoward practices can prevail in the company. Needless to say, procurement against a PO is only possible if it authorized/approved by the concerned authority. ![]() SAP Business One allows you to set up value based rules that help the system determine automatically, as to whose approval is required for a particular PO in the system. ![]() It is important to have an established authority matrix in any purchasing organization. Buyers who are at fault, will have explain the reason for such procurement to higher ups before being able to get their ad-hoc PO (at higher rate) approved. No material will be allowed to enter the premises without a PO in the system. These instances will be either eliminated or reduced drastically with SAP Business One. Only authorized users from purchase department can raise Purchase Orders in the system.Īd hoc procurement will be minimized or eliminated SAP Business One will put a complete end to such procurement and will instill a much disciplined process for procuring material and services. Maverick spend means placing orders at prices higher than the prices negotiated in contract, usually done without consulting the procurement department. Further, the system recommends procurement proposals based on the trigger of inventory falling below the minimum level. SAP Business One provides a functionality by which users can store the minimum and maximum inventory quantity (location wise). Procurement of consumables based on inventory levelsĬertain items, normally found in C class, need to be planned based on consumption. This process can take care of all the items are a part of the bill of material of any FG or WIP. System aggregates all demand elements and does backward calculation of materials and sub-assemblies required and makes recommendation on what item needs to be procured, in how much quantity and what should be the PO release date. SAP Business One provides a functionality called Material Requirement Planning (MRP) which automates the process of finding out the potential material shortages with respect to a proposed fulfillment of a sales plan.
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