Quality Management for Procurement with Vendor Evaluation

1. Quality Management for Procurement with Vendor Evaluation SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario deals with quality inspection activities during the procurement process. A customer orders goods from a specified vendor. On goods receipt, an inspection lot is generated according to the defined material specification. A usage decision is then made as to whether to accept or reject the material, based on the inspection result (in this scenario, the rejection is made). Subsequent processes such as quality notification and vendor evaluation then follow. • Benefits • Inspection lot creation at goods receipt • Key Process Steps • Quality inspection • Results recording / Usage decision • Defects and returns • Vendor evaluation

3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Warehouse Clerk • Quality Specialist • Purchaser

4. Detailed Process Description • Quality Management for Procurement with Vendor Evaluation • Receive goods from vendor based on purchase order • Inspection report / Inspection lot worklist • Quality inspection at goods receipt / Defects recording • Usage decision after inspection • Quality Notification creation and completion • Move of the amount of material to the appropriate stock - unrestricted or blocked quality stock • Goods return to vendor and return delivery creation • Vendor evaluation process

5. No Yes Process Flow Diagram Quality Management for Procurement with Vendor Evaluation Event MRP Generated Procurement Needs Purchaser Procurement w/o QM (130) Warehouse Clerk Goods Issue Slip Goods Issue for Return Delivery Inspection Lot Receive Goods from Vendor to Purchase Order Goods Receipt Slip Quality Specialist Usage Decision & Quality Notification Creation Goods are OK? Quality Inspection Record Results Defects Recording Create Return Delivery Usage Decision Call Inspection Lot Worklist Print Inspection Report Complete Notification Move Material to Unrestricted Stock Purchaser Vendor Evaluation

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision