That SAP Business ByDesign The Planning-Driven Procurement scenario enables you to purchase inventory products (including those based on product specifications) based on demand that can be generated from a planning system such as material requirements planning.

This scenario covers all phases of the procurement process, from requirements planning and the creation of a purchase order to the automatic or manual assignment of the sources of supply, sending the purchase order to a supplier to goods receipt and service provision, invoice verification and payment.

The business process planning procurement enables your company to carry out material and capacity planning efficiently. You receive an up-to-date overview of the requirements and access situation for a combination of product and planning area or for a combination of product, product specification and planning area. The multi-level planning run calculates the required access and then, taking into account the selected product specification, creates the corresponding accesses and the network for verifications of pegged goods. When a planned order is created manually, you must enter product specifications for certain products.
If planning problems arise, the system throws exceptions to notify you. You can then decide what action to take, e.g. For example, you can create or update planning proposals manually. The utilization leveling function is also available to check the feasibility of the procurement plan and to balance the capacity requirement if it is not possible to increase the available capacity.

The business process Create and Prepare Purchasing enables you to create purchase requisitions on the basis of purchase proposals including product specifications and to forward these purchase requisitions to the purchasing department.

The business process Process purchase requisitions – group and order enables you to convert purchase requisitions into purchase orders. You can assign missing sources of supply and then group several assigned purchase requisitions into purchase orders.

The business process process tenders enables your purchasing department to group the purchasing requirements of your company and to determine suitable sources of supply for the required materials and services. The process includes, for example, the determination of sources of supply for purchase requisitions or for negotiating new or expiring purchasing contracts.
You can invite new or existing suppliers to participate in tenders. Incoming offers can then be easily compared in the system in order to determine the most suitable supplier for your needs.
After you have determined the bid that will win, the bidders will be informed of the outcome of the bidding process. Follow-up documents (such as purchase orders or contracts) can now be created.

The Process Purchase Orders business process enables you to process purchase orders that have been created automatically and to manually create an order with or without reference to a contract or list price. You can also search for the products to be ordered in a supplier catalog. The order can contain stock materials with or without product specification, services or non-stock materials that can be ordered for specific purposes (e.g. for cost centers, projects or as an inventory part within a plant procurement process). You can also manually create third-party orders for materials and services that can be assigned to sales orders, service orders, or customer projects. When all relevant data has been processed, the order is sent to the supplier. This can also be an affiliate using SAP Business ByDesign or SAP ERP. In addition, there may be an approval process that depends on the order value. An order confirmation can also be used as an option. The process can have multiple levels of manage- ment.

The business process Edit delivery notes – standard delivery notes enables you to create delivery notes manually or via business-to-business communication from your supplier. This can also be an affiliated company that uses SAP ERP. You can process your standard deliveries with or without warehouse tasks.

The Process Inbound Deliveries – Based on Orders Without Task Management business process enables you to book products received in the warehouse using an order. You post the goods receipt directly, and the system records the products as delivered and confirms the standard delivery. If necessary, the system automatically creates a quality inspection. The incoming goods can be stored in a quality storage area.

The Edit Inspections business process enables you to edit, monitor, and analyze the inspections of products.
Part of this process is to examine the samples taken for the test, record the results, make a decision about the quality of the tested products, and take corrective or preventive measures if necessary.
Planned tests are automatically triggered based on a suitable process or production model. Unscheduled checks are triggered manually by the user.

The business process Process Supplier Invoices gives you, the accountant, the option of entering invoices, credit memos and down payment requests that you have received from your supplier by fax or e-mail into the system, and checking and posting them there. Alternatively, the supplier, who can also be an affiliated company, can send you these documents electronically in the form of XML messages. With an automated invoicing process, all supplier invoices are compared with the associated purchasing documents, if available.
You can also bill the partner companies for supplier invoice items, and you can distribute incidental costs, such as freight costs, to all other supplier invoice lines.
When the supplier invoice is complete and correct, you can post it. It is then used to pay the suppliers. If necessary, the system also creates new attachments automatically.

The Process Payables and Payments business process enables you to process outgoing payments that have been initiated either internally by your company or externally by your suppliers.
Payments can be made manually or automatically during a payment run in which the system proposes open items for payment. You then release the payments, whereupon they are posted by the system in accounting. You create the payment medium either manually or as part of an automatic run. The standard work center offers you checks, outgoing transfers and credit memos, as well as other country-specific payment methods. As soon as the payments have been debited from the bank account, the bank statement is recorded in the system. It is uploaded electronically or entered manually and then confirmed. If payments are initiated externally, the bank statement informs you that a payment has been made. The payments are matched with the open invoices in the system before they are cleared.

Source: help.sap.com, as of March 2017