Integrated Business Processes with ERP Systems Ch 4 – Flashcards
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Purchasing organization
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the unit within an enterprise that performs strategic activities related to purchasing for one or more plants
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Enterprise-level purchasing organization
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AKA cross-company code; the most centralized model
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Company-level purchasing organization
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AKA cross-plant model; a single purchasing organization is responsible for multiple plants in one company code
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Plant-level purchasing organization
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AKA plant-specific; each plant has its own purchasing organization
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Purchasing group
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an individual or a group of individuals who are responsible for purchasing activities for a material or a group of materials.
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Purchase order
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a formal communication to a vendor that represents a commitment to purchase the indicated materials under the stated terms
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Valuation currency
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the currency that the materials will be priced in, such as U.S. dollars
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valuation class
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identifies the general ledger accounts associated with the material
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price control
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identifies the method that is used to value the materials
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goods receipt processing time
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the amount of time required to receive materials from a vendor and place them into storage
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delivery tolerances
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specify how much over delivery and under delivery the ordering party will accept
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Vendor master data
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include the data needed to conduct business with a vendor and to execute transactions related to the purchasing process
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General data
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include the vendor's name, address, and communication information such as phone and fax numbers
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accounting data
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include tax-related data, bank data and payment terms and methods
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Purchasing data
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include various terms related to determining prices, creating and communicating purchase orders, verifying invoices and other steps involved in executing purchases with the vendor.
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Purchasing info records
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an intersection or a combination of material and vendor data
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Item categories
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determine which process steps and data are needed when a company purchases materials or services
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Consignment
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purchase under this pays the vendor only when it uses or sells the materials
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Third party order
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refers to items that the vendor ships directly to a customer
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subcontracting
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under this arrangement, a company sent materials to a vendor, who uses them to create semi-finished products
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stock transfer
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the process whereby an organization uses the same procurement process to obtain materials from another plant within the same organization
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Stock materials
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raw materials acquired for later use in the production process and trading goods for subsequent sales to customers
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Account determination
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the process whereby the system determines which general ledger accounts to use in a given situation
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consumable materials
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materials that are acquired to be consumed by or used within the organization
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Account assignment object
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identifies the bearer of the cost of the purchase and is the entity for which the materials were purchased
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account assignment category
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determines the specific accounting data needed
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stock types
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stock or inventory of materials is classified into different ___________ or statuses that determine the usability of materials
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Unrestricted use
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materials that can be used in any manner that management feels will benefit the enterprise
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Quality inspection
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can be withdrawn only for sampling or for scrap
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Stock in transit
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when materials are being moved from one plant to another they are classified as __________
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Goods movement
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a process step that results in a change in stock results in a _______________
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Goods receipt
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records the receipt of materials into storage, which results in an increase in inventory quantity
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goods issue
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when materials are removed from storage, in which case inventory is reduced
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Transfer posting
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used by an enterprise to change a material's status or type
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material document
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records data related to a goods movement, such as the receipt of goods from a vendor
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movement types
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required by every goods movement
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Source list
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when the company selects a vendor from a list of potential supplies
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Outline purchase agreements
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longer-term agreements between an organization and a vendor regarding the supply of materials or the performance of services within a specified period according to predefined terms and conditions
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Delivery document
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AKA Packing list; identifies the materials included in the delivery and the purchase order
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goods receipt document
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where the relevant data from the purchase order, such as material data and quantities are automatically copied into
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Invoice verification
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when a company receives a vendor invoice, it verifies that the invoice is accurate before it makes payment
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three-way match
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the most common method of invoice verification; between the purchase order, the goods receipt or delivery document and the invoice
