Efficient Plant May 2020 - 28

enterprise software tips

Darren McGregor, Illumiti

Manage Contracts,
Purchases with S/4HANA
BUYERS WILL REALIZE much better results
with a holistic view that breaks the job into
daily, weekly, and monthly duties. SAP S/4HANA users should align the Materials Management module with the rest of ERP Central
Component (ECC). Looking ahead, consider
integrating your work into the business by
collaborating with other departments. Making
these changes will help the operation run more
smoothly and could yield significant savings.
Following is a quick rundown of how S/4HANA is used to monitor contracts and execute
purchases.
A first step is to evaluate contracts to ensure
they have not expired and that spend is in line
with the contract amount. Use the overview tile
to reveal contracts. This contract is valid until
the end of May 2020 and has a consumption
percentage of almost 45%.

Stock tile to reveal the Stock Requirements
Situation window. As we can see, we do not
have any of the material in stock and need to
activate Material Requirements Planning
(MRP) action. The reorder point is 25 and the
maximum stock is 40. Run MRP by selecting
icon at the top of the page.
the

The system generates a requisition for a
quantity of 40.

Go to the Manage Contracts page, update the
date, and press "Renew." The contract will now
reflect the new expiration date.
Darren McGregor is
Logistics Solution Architect at
Illumiti, Thornhill, Ontario
(illumiti.com). If you have SAP
questions, send them to editors@
efficientplantmag.com and
we'll forward them to Darren.

28

EP2005rmcsap.indd 28

To create a PO for the material, press the
Purchase Order button. A PO is created against
the contract for a quantity of 40. EP

One of the materials in the contract has
reached the reorder point. Use the Monitor

| EFFICIENTPLANTMAG.COM

MAY 2020

5/1/20 10:40 AM



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Efficient Plant May 2020

Table of Contents for the Digital Edition of Efficient Plant May 2020

Efficient Plant May 2020 - loc
Efficient Plant May 2020 - Cover1
Efficient Plant May 2020 - gatefold1
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Efficient Plant May 2020 - IFC
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