Procurement from a Distribution Center

Purpose

This scenario describes the procurement and management of articles from a distribution center for a store or another distribution center.

The following R/3 components are used:

R/3 component

Functions

Forecast

Carrying out forecasts

Consumption-based planning

Carrying out requirement planning and replenishment

Purchasing

Creating purchase requisitions

Creating warehouse orders

Allocating articles

Warehouse management/Inventory management

Receiving articles, placing them in stock, managing and valuating them

Carrying out physical inventory

Shipping

Creating deliveries

Picking articles

Posting goods issue

Billing

Carrying out intercompany billing for goods movements

Process Flow

Requirements planning/purchase requisition

  1. The first step in the process of article procurement is the creation of a purchase requisition.
  2. – In requirements planning, the system can create the purchase requisition automatically. If the source of supply for an article is unique, it is assigned to the article.

    In replenishment, warehouse orders and deliveries can be created at this stage if the source of supply is unique and the appropriate settings have been made in Customizing.

    – If the article is required in other areas of the company, you must create the purchase requisition manually.

    Purchasing

    Purchase requisitions

  3. You can convert a purchase requisition that contains a source of supply into a purchase order, contract release order, or delivery schedule
  4. – automatically

    – or manually

    In the case of a purchase requisition that does not contain a source of supply, you must assign a supplying site manually before you convert it into a warehouse order.

    Allocation

  5. During allocation you can centrally distribute merchandise among a large number of recipients (for example, stores). Using allocation tables, you can plan the distribution of this merchandise and then trigger the warehouse orders or deliveries.
  6. Shipping

  7. You create deliveries from warehouse orders that are due for shipping.
  8. You then remove the goods from storage during the picking process. Picking waves can be used to create work packages for picking activities.
  9. When picking is complete you post the goods issue.
  10. Billing

  11. Invoices are created for deliveries of goods to sites in a different company code.
  12. Goods receipt

  13. As soon as the goods arrive in the ordering site you post a goods receipt.