• The procurement process begins by a internal purchase request that stems for a specific need. Internally, a requisition is raised and goes for approval to the procurement manager. (SAP Purchase Request)
• The procurement manager analyses and if satisfied that there is need, he/she approves the requisition. (SAP Purchase Request approval)
• Purchase quotations are sort for the specific item in question (Outside SAP)
• The purchase quotations are received and fed into the system (SAP Purchase Quotation)
• The best quote is selected by copying the quote to a purchase order (SAP Purchase Order)
• The purchase order is sent to the supplier as the official order (SAP mailer)
• Once the supplier delivers the item, a Goods receipt note is posted in SAP (SAP Goods Receipt Note)

                                The journal entry for the Goods Receipt note is:

  Dr. Stock a/c & Cr. GRNI a/c

• The next step is to book the supplier invoice into the system (SAP A/P Invoice)

                            The journal entry for the delivery note is:

                                                                                Dr. GRNI a/c & Cr. Supplier a/c

• The final document in this cycle is the outgoing Payment that is posted when we pay the supplier for the item received. (SAP Outgoing Payment)

                                        The journal entry for the incoming payment is:

                              Dr. Supplier a/c and Cr. Bank a/c

I am Caroline Ininga Majute,  a SAP Business One Consultant based in Nairobi, Kenya. For more inquires about sap business one, contact me at: [email protected]