INVENTORY TRAINING MODULE 3 Inventory Order Processes

Transcript INVENTORY TRAINING MODULE 3 Inventory Order Processes

Inventory Training Module 3 Inventory Order Processes

North Carolina Department of Public Instruction Transportation Services December 2014 Craig Warren Transportation Consultant

INVENTORY TRAINING MODULE Inventory Order Processes

3

Order Creation Determine Order / Delivery Schedule Utilize Vendor Parts Catalogs Vendor Price Sheets Warranty Documents BSIP Transaction NCDPI Transportation Services December , 2014

Order Dates / Delivery Schedule

 Determine the day orders can be placed and the delivery timeframe in order to streamline the process and help reduce frequency of ordering and inventory quantities on hand.

Parts Catalog

 Electronic or paper catalogs are recommended to insure the correct parts are ordered and to assist when cross reference guides or specific warranty information is needed.

Price Lists

   Contract Vendors are required to supply pricelists to LEA’s and it is recommended that you request them from non contract vendors in order to maintain consistent pricing. Price levels depend on quantity but many times better pricing can be achieved through negotiation or repeat business with a vendor.

Example: List Price, Wholesale, Jobber Price

Freight Cost

 Understand the related shipping cost for all vendors used to reduce or eliminate freight cost entirely. This is easily determined on state contracts but can be arranged with non contract vendors through agreements of minimum quantities in many instances.

Warranty Information

 Always know warranty policies of the vendor and sometimes this will assist in the order process by knowing that in the event of a defective part you will have the support of the vendor.

Order Creation

 Create an order form for each Vendor to be used during the entire order process  Electronic TD-21 with Calculations  Printed Paper Version TD-21

Quantity

Vendor: Bus Auto Parts Company Material Document Number: _________________________ DOT Number Manufacturer Number

TD-21 Form

Inventory Receipt Report - TD-21 Invoice Number: ________________________ Date: _________________________ Purchase Order Number: _________________________ Unit Price Total Storage / Bin Location Description < Total Qty.

Total >

Form Retention

This form should be retained even after the order process is complete for future reference in the following areas.

 Price comparisons  Warranty issues  Backorder History

ME-21 N / MIGO BSIP Transaction

This BSIP transaction is used once the order is ready to enter.

The process instructions follow.

Use this procedure to enter materials (except fuel) into inventory. A purchase order must be created.

Basic Commands 101 102 261 262 311 971 Back Cancel Help Exit Enter Save Movement Types

Reversal of receipt of materials into inventory Issue materials to work order Reversal of materials issued to work order Transfer material within storage locations Receipt of bulk fuel shipment

Entering Inventory (Purchase Order/Goods Receipt) ME21N MIGO

10.

11.

12.

13.

14.

From the

SAP R/3 System Easy Access

screen or from your favorites, enter or select transaction code

ME21N.

Click or press

Enter

. The

Create Purchase Order

screen displays. - Defaults set are displayed. See

Setting up ME21N

Enter

Vendor

field (in space to the right of the word Vendor)

For each item, enter the following: -

PO Quantity - Unit of Measure (Oun) - Material

(DOT material number)

- Net Price

(this is

Price

per

Unit

of the item) Click on

Check

icon.

- System may display messages in a dialog box about delivery dates and info records- these can be ignored..*

Any other error messages must be resolved

*. Click on the green check .

Click on . Record Purchase Order number on invoice.

Receive Material Into Inventory

: Enter

/NMIGO

from the

Create Purchase Order

screen.

- Alternatively, you can click on to return to the

SAP Easy Access Screen MIGO.

and enter or select transaction code In the first

Matchcode

field, select

Goods receipt

In the second

Matchcode

field, select

Purchase order

. The

Movement type

should change to

101 GR goods receipt

Enter Purchase Order in field with blinking cursor. Click .

- System pulls in items from Purchase Order.

Put a check in the

box next to each item you want to receive.

Click on . System puts the

Material Document

number in the

Status Bar

. Note this on the invoice.

* See ME22N on how to correct Purchase Order*.

12 DPI Vehicle Fleet Management December, 2003 Revised 8/17/2005

Summary

This module on Inventory Order Processes should be used as a guide to correct or possibly eliminate issues you are currently having in Inventory management. Many times bad ordering practices drive up inventory costs due to overstock, inconsistent pricing and enormous freight charges. The use of forms created to assist in the order process may also eliminate errors if utilized. Transportation Services hopes this module will be another reference tool you will use to insure accuracy in the daily operation of your facility.