Sign Document for Procurement Simple

Department sign procurement document simple

hello and welcome to sap learning academy and welcome to this tutorial in this tutorial i will be telling you about the procurement like what is procurement and its tape so i'll be telling you in detail about all the steps how the procurement is done in a company so let's begin uh with the definition i'll be talking about what is procurement because before understanding the process we need to understand what is procurement in a company and also i'll be telling you how it is different than a than a normal purchase and next is the i'll be talking about the process and that is the main part of the tutorial i'll be telling you in a graphical way how the the process of the procurement so first it is important to know the definition what is procurement procurement refers to a structured method and means used to streamline an organizational procurement process and achieve digital result while saving cost reducing time and building win-win supplier relationship and in other word if i talk about the procurement procurement is a act of acquiring works goods or services from external sources so here we are talking about the external sources means when you're buying some product for from some other external vendors that's what we'll be discussing here in this tutorial so uh before going into the charts or process crop current process i want to tell you that and it is for the basic idea for all the viewers that how it is then what is the difference with the procurement and the purchase like purchase means if i talk about a normal purchase like if you go to a shop and you want to buy some product and which is cost you thought to be ten dollar but when you went to the shop and you saw that its price is twelve dollar so that's uh that's what he thought and the the price that you're paying at the store that different so that's called b that's that can be called normal purchase but the procurement is a method so where the price i mean has been fixed already or you have already an agreement with the vendor before buying the article or material so that's what done in the procurement process and this process are being followed in the in most of the bigger companies where they do automatic processing of the orders and they get the you know where the process will be done alternately right okay so we'll be moving with the steps the first step is in this case need or requirement means that you need to have a requirement first about the materials what you want to buy like you need to create a manual and a purchase requisition to inform the purchasing department about the material requirement like like whatever material you need and if i talk about the sap system particularly or any other system uh which which determines the erp solution so here if you have set the mrv of the material then it will automatically create a purchase requisition to the department so that's what i have just talked about the difference between purchase and the procurement like in the case of this because you have already set the price of the material so you can easily create the the requisition for the all the material that you want to buy so first step is that you need to you need to have a need or requirement which you want to buy and also you can you can call it as a uh purchase requisition now we are coming ahead then next part of this process is the vendor selection suppose you want to buy milk so there can be multiple vendors for that so here you need to define or you need to identify which vendor you want and that has a different process like if i talk about the prices of different vendors or you know the quality of the goods so you can you can define you can identify which handler is good so once your vendor is identified then you move it to the next big part of this process is the purchase order processing because this why i'm telling you this part is the biggest part because it involves your budget so once your requisition is ready meaning that when your requirement is ready your vendor is selected now your order that purchase requisition has to go into the finance department in order to approve the budget do you have the available money to buy all this all this material so once your purchasing department approves the all the requisition then this officially your purchase orders will be made by the system then it can move to further processing into the vendors then this purchase orders can be sent to the vendors and vendors then we'll deliver the products and that's come into the next step so the next step is the goods received so once your purchase order is done and you have sent to vendors and and vendors will provide you the all the goods in terms of the modes they want like like you know like all the supply chain parts are there involved then once you receive the goods in your stores then you need to verify it right so and also the vendor will send you the invoice invoice once they send the goods so you need to verify that whether do i have received all the goods or is there any difference between the in terms of quantity that your brace in the purchase order or the prices so that you need to verify in the inverse verification and if i talk about the bigger system like sap or any other any other erp system so it does automatically all kinds of verification and once your inverse verification is done now the last part comes as the payment so now now you need to pay the money that you have ordered to the vendor and that is also a part of the finance department which does this automatic payment or or regular basis payment to the vendors so that's the main process of the procurement uh so if i just tell you again that first you need to have a requirement or the purchasing requisition you need to then spend after selecting the vendors you need to send the to purchase department in order to make it official purchase order then you have to send to the vendor and vendor sends the goods to you and after receiving the codes you need to do a lot of verification that's we are calling as invoice verification here not only the verification of the money that you received here also we verify the quantity the prices and all kinds of quality checks that we do here and then comes at the end the payment processing so that's a part of this uh this process and again this is just a loop i just showed you in this graphical uh way and if you have liked the tutorial you can like in the below comment box and also if you have any question that you want to know from me you can write in the bill account box and i will be happy to answer you and also please don't forget to subscribe our channel i'll be coming up again with more interesting tutorial for you and if you like if you want to know uh any other videos you can write in the comment box what you like to know and also please look into my other tutorials i'm giving the links in the video description thank you for watching have a nice day see you again