Introduction

General Notes and Information

It is strongly recommended that you read through the entire exercise prior to starting. Not all instructions
can be provided in a linear manner.
The following symbols are used to indicate important information as described below:
An arrow highlights an important instruction that must not be overlooked.
A text box prompts you to type-in an important piece of information.
Each student or group will be assigned a unique three digit identifier. This identifier is used in all
exercises to uniquely identify your data. Whenever you see ### in these exercises, replace it with your
identifier.
Always work with your data your vendor, your materials, your general ledger accounts, etc.

Business Process Overview
The procurement process allows GBI to acquire or purchase material from a vendor. This process can
be used to purchase trading goods as well as raw material.
In this exercise you will review the master data relevant to purchasing.

Chapter 04: The Procurement Process
Exercise 04-01: Review Procurement Master Data
Single Company Code
Rev: 08/25/2010



Name(s):
Course & Selection:
Identifier:
Client:
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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Exercise Prerequisites
None

Exercise Workflow



Exercise Deliverables
Deliverables are consolidated into one answer sheet at the end of this exercise. For this exercise
you will need the following deliverables.
In the System:
None
On the answer sheet:
Answers to the Questions
Fill out answer sheet and submit to your instructor
You may be assigned additional deliverables. Be sure to check with your instructor!








Review material
master
Review vendor
master
Review material
inventory
Review account
balance
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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Step 1: Review Material Master

Step 1.1: Navigate to the transaction to display material master:



Q1: What is the transaction code to display (current) a material: ---------------
Q2: What is the transaction code to create (general) a material: ----------------
Q3: What is the transaction code to change (immediately) a material: ---------
Step 1.2: In the Display Material (Initial Screen) enter the following information:
Field Name Data Entry
Material Code for your ELBOW PADS
In order to search for your Elbow Pads, click on the search box next to the text field. In
the search window, enter *### in the Material field. This will bring up all of your materials.
(ENTER)
Step 1.3: In the Select View(s) window highlight the following options:
Basic Data 1
Purchasing
Accounting 1
The first time you go through the above step, click on the Default Setting icon
on the dialog box. This will save these selections as defaults so that they will automatically be
selected the next time through. In subsequent iterations of this step, just click ENTER

Review
material
master
Review vendor
master
Review
material
inventory
Review account
balance
Navigation
Logistics Materials Management Material Master Material Display Display
Current

MM03
MM01
MM02
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Chapter 04
Exercise 04-02
Page 4 of 13


Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code

(ENTER)
Step 1.4: Next, in the Organizational Levels window, specify the desired organization
levels.
Field Name Data Entry
Plant Code for the Miami Distribution Center
Valuation Type Leave Blank
The first time you go through the above step, click on the Default Setting icon
on the dialog box. This will save these selections as defaults so that they will automatically be
selected the next time through. In subsequent iterations of this step, just click ENTER.
(ENTER)
You are now in the Display Material EPAD1### (Trading Goods) screen.
Step 1.5: Using the information in the material master, fill in the Table 1. You will have to
navigate between tabs in order to find all the information. Once you are done
with your elbow pads, exit from the Display Material screen and repeat the steps
for the four materials listed below and complete the following table. Each row in
the table is for one material:
Your Road Helmet
Your Repair Kit
Your Off Road Helmet
Your Knee Pad
You can use the navigation arrows in the upper-right to find all of the views. The simplest
way to access each selected view it to press enter- this will move you through each of the selected
views. Be sure to look at the data in each view; scroll down as well.




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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Your
Material
Number
Base unit
Of measure
Gross
weight and
Unit of
Weight
Material
Group
Purchasing
Group
Moving
Price
Price
Control
Valuation
Class
EPAD1###




RHMT1###
RKIT1###
OHMT1###
KPAD1###
Table 1 Material master data

Exercise Deliverables

In the system:
None
On the answer sheet:
Answers to the Questions
The table with data for your materials













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EA 32 oz SFTY N00 37.50 V 3100
EA 10 oz
SFTY N00 25.00 V 3100
EA 12 oz UTIL N00 16.00 V 3100
EA 15 oz SFTY N00 25.00 V 3100
EA 16 oz SFTY N00 37.50 V 3100

For use with Magal / Word: Integrated Business Process with ERP; Copyright 2011 John Wiley and Sons Publishers, Inc.
Chapter 04
Exercise 04-02
Page 6 of 13


Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Step 2: Review Vendor Master

Step 2.1: Navigate to the transaction to display vendor master:



Q4: What is the transaction code to display a vendor:---------------------------
Q5: What is the transaction code to create a vendor:----------------------------
Q6: What is the transaction code to change a vendor:---------------------------
Step 2.2: In the Display Vendor: Initial Screen screen, enter the following information

Field Name Data Entry
Vendor Code for your Olympic Protective Gear
Company Code Code for the GBI US
Purchasing Organization Code for the US Purchasing Organization
To find your version of Olympic Protective Gear, click on the search box next to the text
field. ( ) In the search window, enter *### in the vendor field and press enter. This will
bring up all of your vendors.

Select the following check boxes:
Under General Data: Address
Under Company Code Data: Accounting info
Under Purchasing Organization: Purchasing data
Review
material master
Review vendor
master
Review
material
inventory
Review account
balance
Navigation
Logistics Materials Management Purchasing Master DataVendor Central
Display

XK03
XK01
XK04
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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
(ENTER)
Step 2.3: Scroll through the different screens using the previous screen and next
screen icons at the top and answer the following questions:

Q7: What is the postal code for this vendor: -------------------------------------
Q8: What is the reconciliation account number for this vendor: ----------------
Q9: What are the payment terms: ------------------------------------------------
Q10: What is the order currency: --------------------------------------------------
Q11: What is the minimum order value: ------------------------------------------


Exercise Deliverables

In the System:
None
On the answer sheet:
Answers to the Questions







30319
300000
0001
USD
0.00
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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Step 3: Review Material Inventory

Step 3.1: Navigate to the transaction to display material inventory:





Q12: What is the transaction code to display a materials inventory level: ------
Step 3.2: In the Display Warehouse Stock of Material screen, enter the following:
Field Name Data Entry
Material Number for your elbow pads
(EXECUTE)
Q13: How many of your elbow pads are there in the Miami plant: --------------


Exercise Deliverables

In the System:
None
On the answer sheet:
Answers to the Questions


Review
material
master
Review
vendor
master
Review
material
inventory
Review
account
balance
Navigation
Logistics Materials Management Inventory Management Environment Stock
Warehouse Stock

MB52
0
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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Step 4: Review Account Balance

Step 4.1: Navigate to the transaction to display vendor account balances:





Q14: What is the transaction code to display a vendors balance: ---------------
Step 4.2: In the Vendor Balance Display screen, enter the following:
Field Name Data Entry
Vendor Number for your Olympic Protective Gear
Company Code Code for GBI US
Fiscal Year Current Year

(EXECUTE)

Q15: What is the vendor number for your Olympic Protective Gear: ------------
Q16: What is the current account balance for your Olympic Protective
Gear: ------------------------------------------------------------------------

If you get a message No data read for fiscal year this means that there are no
transactions in the system for your vendor. Therefore the vendor balance is zero.



Review
material
master
Review
vendor
master
Review
material
inventory
Review
account
balance
Navigation
Accounting Financial Accounting Accounts Payable Account Display Balances
FK10N
101031
0
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Chapter 04
Exercise 04-02
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Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Exercise Deliverables

In the System:
None
On the answer sheet:
Answers to the Questions

Print Reset Save

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Chapter 04
Exercise 04-02
Page 11 of 13


Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Attachment 1: Exercise Answer Sheet
Name(s): --------------------
Course & Selection: -------
Identifier: ------------------
Client: ----------------------





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Chapter 04
Exercise 04-02
Page 12 of 13


Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Q1: What is the transaction code to display a material: -------------------------
Q2: What is the transaction code to create a material: --------------------------
Q3: What is the transaction code to change a material:-------------------------
Q4: What is the transaction code to display a vendor:---------------------------
Q5: What is the transaction code to create a vendor: ---------------------------
Q6: What is the transaction code to change a vendor: --------------------------
Q7: What is the postal code for this vendor: ------------------------------------
Q8: What is the reconciliation account number for this vendor: ----------------
Q9: What are the payment terms: ------------------------------------------------
Q10: What is the order currency: --------------------------------------------------
Q11: What is the minimum order value: -------------------------------------------
Q12: What is the transaction code to display a materials inventory level: ------
Q13: How many of your elbow pads are there in the Miami plant: -------------
Q14: What is the transaction code to display a vendors balance: ---------------
Q15: What is the vendor number for your Olympic Protective Gear: -------------
Q16: What is the current account balance for your Olympic Protective
Gear: --------------------------------------------------------------------------

MM02
MM01
30319
XK04
MM03
0001
XK03
300000
XK01
USD
FK10N
0
MB52
0.00
101031
0
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For use with Magal / Word: Integrated Business Process with ERP; Copyright 2011 John Wiley and Sons Publishers, Inc.
Chapter 04
Exercise 04-02
Page 13 of 13


Chapter 04: The Procurement Process
Exercise 04-01



Chapter 04: Procurement Process
Exercise 04-02: Basic Procurement Process
Single Company Code
Your
Material
Number
Base unit
of measure
Gross
Weight and
Unit of
Weight
Material
Group
Purchasing
Group
Moving
Price
Price
Control
Valuation
Class
EPAD1###




RHMT1###
RKIT1###
OHMT1###
KPAD1###
Table 1 Material master data

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EA 32 oz SFTY N00 37.50 V 3100
EA 10 oz SFTY N00 25.00 V 3100
EA 12 oz UTIL N00 16.00 V 3100
EA 15 oz SFTY N00 25.00 V 3100
EA 16 oz SFTY N00 37.50 V 3100