Efficiently Manage Incoming Quality Certificates in the Procurement Process

  • by Jawad Akhtar, Head of SAP Delivery, AbacusConsulting
  • December 24, 2013
Discover how you can easily configure an incoming quality certificate in the quality management (QM) module and implement it with the requisite and varied levels of controls. Learn how to set up automatic reminders for goods delivered by vendors without the accompanying quality certificates and escalate them for timely action.
Learning Objectives

After reading this article, you’ll know how to:

  • Configure the maintenance of new certificate types and the associated controls
  • Set up the necessary QM master data required at the material master and the material-vendor relationship level
  • Manage the end-to-end process of creating a purchase order (PO) to show how incoming certificate details are managed at this level, as well as the steps for a goods receipt and how the accompanying quality certificate affects this process
  • Record incoming quality certificates with different statuses
  • Use the dunning (i.e., the reminder) process needed if your vendor fails to submit a certificate within the stipulated time period
Key Concept

The procurement process optimization that occurs when you implement incoming quality certificates functionality in quality management (QM) becomes immediately apparent in your system. By following certain steps, you can prevent the release of procured raw material to production or the release of defective procured spare parts to maintenance until the accompanying incoming quality certificate from the vendor is available in the system. If a customer complains about defective material, incoming certificates provide complete traceability of a vendor’s compliance when supplying raw material by displaying whether the details noted in the certificate adhere to your organization’s specifications.

Whether it involves the procurement of raw material for production processes or the spares and consumables for maintenance activities, incoming quality certificates are needed from all your vendors to reflect adherence to a product’s specifications. When incoming quality certificates are implemented in procurement processes, you can optimize your business processes by integrating and automating your organization’s quality management (QM) system with the vendor’s QM system through electronic data interchange (EDI).

Jawad Akhtar

Jawad Akhtar earned his chemical engineering degree from Missouri University of Science and Technology. He has 17 years of professional experience, of which nine years are in SAP. He has completed eight end-to-end SAP project implementation lifecycles in the areas of PP, QM, MM, PM, and DMS in the steel, automobile, chemical, fertilizer, FMCG, and building products industries. He also has worked as an SAP integration manager and an SAP project manager. He has been proactively involved in a business development and solution architect role for seven years. He is the author of Production Planning and Control with SAP ERP, it's filled with in-depth infomation on discrete, process, and repetitive manufacturing types. His profile on LinkedIn is at http://pk.linkedin.com/in/jawadakhtar. You may follow Jawad on Twitter @jawadahl. Currently, he is associated with AbacusConsulting as Head of SAP Delivery.

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