Definition

The scenario covers the processes of purchasing goods that are not normally used in manufacturing (as materials) or in trading (as trading goods) but stored to use them later for the execution of general and supporting activities. A significant amount of consumable goods are purchased and not immediately transferred to the consuming unit but placed into a warehouse and consumed over a period of time.

The cost of goods may include purchasing costs as well as procurement costs, such as custom fees, transportation, storage services, etc.

The goods are normally consumed as an indirect expense, charged to the expense item and dimension: business unit, cost center, line of business, etc.

This scenario can be applied for purchases of office supplies, IT equipment (if not an asset), or for maintenance materials and spare parts.

Legend

- a process group the process belongs to

- a typical business process

- a typical E2E business process scenario

- a typical E2E business process cluster

Scenario Diagram

Business processes list

• Maintain inventory replenishment parameters
• Generate purchase order based on plan
• Confirm purchase order and send to vendor
• Follow-up purchase order progress
• P2M Inbound logistics
• Process vendor invoice by purchase order
• R2R Vendor invoice offset (Based on purchase order)