Material Purchasing & Replenishment SOP

1.0  PURPOSE:

The purpose of this procedure is to provide guidelines for managing material master data, purchasing & replenishment of material for better results in any organization. This SOP guide the concerned in a respectable way for the favor of companies..

2.0 SCOPE:

This procedure covers steps involved in material creation, extension, deletion or any other action related to Material Master Data and PR (purchase requisition) creation requests .

3.0 RESPONSIBILITIES:

Stores Incharge / HOD will be responsible for ensuring compliance of this procedure and has the responsibility for managing all the operations related to Material Master Data.

End User shall be responsible to provide the material / PR (purchase requisition) creation request completed in all aspects

Planning and FBA (Finance, Business & Accounting) will be responsible to release / transfer the Budget in SAP as per authorizations

4.0 PROCEDURE

4.1 Material Master (Creation/Extension/Description Change & Deletion)

Following procedure shall be followed in maintenance of material master data:

• For any creation/change/deletion/bulk upload in the material master data, only Store Incharge and SAP administrator are authorized.
• For any material to be purchase the end-user checks availability of material code in SAP, If material already exists in other stations, it shall be requested to extend. If the requisition is for a new item of material i.e. material code not assigned yet, new item code creation request shall be processed by store Incharge upon receiving of approved material introduction form. 
• The Store Incharge / SAP administrator will also verify material codes existence in SAP prior to creating new material.

4.2 PR CREATION REQUESTS:

• Store Incharge / Site procurement Representative shall prepare PR (purchase requisition), upon receipt of PR (purchase requisition) Indent from end-user. The PR Indent should be complete in all respect with required approvals & justification. 
• After creation of the PR, Store Incharge / Site procurement Rep will intimate the PR No. to end-user for review. End-user will follow-up for further approvals within Plant.
• Site procurement Rep will follow & expedite the PR (purchase requisition) approvals, TE (technical evaluation), PAS. PO (purchase orders), Payment and provides updates to end-user. End-user should respond, received TE from SC within (desired time period) working days.

4.3 Replenishment of material (Generating Stores Purchase Requisition): On Re-order level intimation:

Following procedure shall be followed in preparation / generation of purchase Requisition (PR):

• Requisitions will be generated by Store / site procurement rep, based on material requirement Planning (MRP) for material with defined reorder point only.
• The reorder point shall be defined in the material master record of Spares and stock by Store Incharge in consultation with end-user.
• If a material hits re-order level on posting of debit note, intimation (e-mail) will be received to Store and PR (purchase requisition) shall be raised as per plant requirement as well or comment from respective users if required.

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