Inventory Management & Finance Integration

Transcription

1 Inventory Management & Finance Integration July 2009 SCEIS is a project of the SC Budget and Control Board, Division of State Information Technology. State of South Carolina 1

2 Agenda Introduction What is Inventory Business Processes Financial Postings Templates Questions 2

3 Introduction Bruce Burnett SCEIS FI Team Lead (803)

4 Introduction Kevin Lewis SCEIS FI Team, Consultant (803)

5 Introduction Neil Hoare SCEIS MM Team, Consultant (803)

6 What is Inventory? Inventory is material expensed at time of consumption and not at time of purchase Inventory may be Valuated or Non-Valuated Inventory has a unique identifier (Material Master Number) Inventory is stored in designated physical locations Inventory may be replenished automatically by setting system re-order triggers (Material Requirements Planning, MRP) 6

7 What is Inventory? Inventory is NOT a Fixed Asset Inventory may NOT be purchased via P-Card Inventory DOES NOT have to be greater than 100K in value Inventory is any item that is tracked by Quantity and Price or Quantity Only 7

8 Business Processes Business Process Number IM001 IM002 IM003 IM004 IM005 IM006 IM007 IM008 Business Process Description Create Inventory Purchase Requisition Create Inventory Purchase Order Create Material Reservation Create Goods Issue Create Goods Receipt Create Inventory Balance Conversion Write On/Off Physical Inventory Balances Material Scrapping 8

9 Business Processes Business Process Number IM009 IM010 IM011 IM012 IM013 IM014 IM015 Business Process Description Material Revaluation Free and Donated Materials Create Sales Order Create Sales Contract Create Sales Quote Create Sales Delivery Create Sales Billing 9

10 IM001 Create Inventory Purchase Requisition Inventory Purchase Requisitions can be created manually or automatically via Material Requirements Planning (MRP). Requisitions will be converted to Purchase Orders for the procurement of Inventory Items. s Center N/A DR Inventory N/A 10

11 IM002 Create Inventory Purchase Order Inventory Purchase Order is created with reference to the Inventory Purchase Requisition. s commitment is moved from Purchase Requisition Document to the Purchase Order Document s Center N/A DR Inventory N/A 11

12 IM003 Create Material Reservation Material Reservations are created to Reserve Inventory for consumption at a future date. Each Material Reservation has a corresponding s Reservation that is generated automatically by the system. Cost Object s Center N/A DR Consumption N/A 12

13 IM004 Create Goods Issue Goods Issues can be created with or without reference to a Material Reservation. If they are posted with reference to a Material Reservation then the corresponding s Reservation is liquidated and an actual posting is made. Cost Object s Center DR Expenditure CR Inventory DR Consumption CR Inventory DR Due To Account CR Due From Account 13

14 IM005 Create Goods Receipt Goods Receipts are posted with reference to a Purchase Order. Purchase Order commitment is liquidated and an actual posting is made. s Center DR Inventory CR GR/IR DR Inventory N/A 14

15 IM006 Inventory Balance Conversion Initial load of legacy Inventory Balances into SAP Inventory. s Center DR Inventory CR Conversion Account DR Inventory CR Conv N/A 15

16 IM007 Write On/Off Physical Inventory Balances Write on or off Inventory Balances as a result of Physical Inventories. (Stocktake) Cost Centre s Center DR Inventory CR Phys Inv Writeoff DR Inventory CR N/A 16 DR Phys Inv Writeoff CR Inventory DR CR Inventory

17 IM008 Material Scrapping Scrapping of obsolete or damaged material from Inventory Cost Centre s Center DR Scrap Expense CR Inventory DR Expense CR Inventory N/A 17

18 IM009 Material Revaluation Revaluation of On-hand Inventory Cost Centre s Center 18 DR Material Reval CR Inventory DR Inventory CR Material Reval DR Exp CR Inventory NA

19 IM010 Free and Donated Materials Material that is donated or reclaimed s Center DR Inventory CR Donated Items DR Inventory CR Rev N/A 19

20 IM011 Create Sales Order Sales Order for sale of inventory items or services s Center N/A N/A N/A 20

21 IM012 Create Sales Contract Sales Contract for sale of inventory items or services s Center N/A N/A N/A 21

22 IM013 Create Sales Quotation Sales Quotation for sale of inventory items or services s Center N/A N/A N/A 22

23 IM014 Create Sales Delivery Create Delivery and Goods Issue for Sales Order Cost Center s Center DR COGS CR Inventory DR COGS CR Inventory N/A 23

24 IM015 Create Sales Billing Create Billing Documents for Sales Orders Cost Center s Center Deb Customer Credit Rev CR Rev N/A 24

25 25 Questions