Purchase Orders and GR/IV with Valuation

SAP AG

SAP AG

TAMM10 4.0B

13-1

Purchase Orders and GR/IV with Valuation:

Objectives
At the conclusion of this unit, participants should be

able to:
Enter and process purchase orders.
Post goods receipts and invoices for a purchase order.
Explain account postings at goods receipt and invoice

receipt.
List the other effects of goods receipts and invoice

receipts.
Outline the difference between material valuation using

the standard price procedure and moving average price

procedure.
Process purchase orders with planned delivery costs.
R

SAP AG

SAP AG

TAMM10 4.0B

13-2

Purchase Order
Purchasing
Purchase
requisition

Vendor

Purchase
order
RFQ

Another plant

Master data

SAP AG

A purchase order is a formal request to a vendor to supply certain goods or services under the stated
conditions.
Purchase orders can be created without reference, or with reference to a purchase requisition, a request
for quotation or another purchase order.
When you enter the purchase order data, the system suggests values to use. For example, the ordering
addresses, as well as the terms of payment and freight (Incoterms) are suggested from the vendor master
record. If you have maintained a material master for a certain material in the R/3 System, the material
short text or the material groups, among other things, are suggested for you. If a purchasing info record
already exists in the system, a default price is copied to the purchase order.
The purchase order is either sent to a vendor or you carry out a stock transport order in another plant
belonging to your company or group. With a stock transport order, you can take into account the
associated freight costs in the purchase order.
Note: You can find more information about stock transport orders in the Materials Management
documentation on the topic of Inventory Management: Special stocks and special forms of procurement
in Materials Management.

SAP AG

TAMM10 4.0B

13-3

Purchase Order
Manually

Quotation

Requisition

PO history
Item 20
Goods receipt:

Purchase
order
10
20
30
.
.
.

............................
... 10 pcs SL-01 ...
............................
.
.
.
.
.
.

21.01.98
23.01.98
27.01.98

5 pcs ...
3 pcs ...
2 pcs ...

Invoice received:
30.01.98

10 pcs ...

Reference
R

SAP AG

The purchase order is a formal request to a vendor to supply you with goods or services at the
conditions stated in the purchase order. In the purchase order, you further define whether the material is
delivered for stock or direct consumption (for example, cost center, asset or project). Goods Receipt and
Invoice Verification are normally carried out based on the purchase order.
You can minimize the work involved in entering data, by creating purchase order items with reference to
an existing purchase requisition, RFQ or purchase order. Of course, you can also enter a purchase order
without reference to preceding documents in the system.
If you do not know the vendor when you create a purchase order, you can use the source determination
in the R/3 System. The system suggests possible vendors to you on the basis of the defined sources of
supply (outline agreements, info records, source list entries, quota arrangements).
For each purchase order item, you have the option of determining the current processing status. For
example, you can determine whether there are goods receipts or incoming invoices for an item. From the
purchase order history screen you can display the subsequent documents (material document and invoice
document).

SAP AG

TAMM10 4.0B

13-4

Purchase Order Structure

Header data
Purchase
order
10
20
30

Purchase order no.

Terms of payment
Purchase order date

Vendor
Currency
...

Item: 10
Item: 20
Item: 30
Material number
Short text
PO quantity

Del. date
PO price
...
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SAP AG

Like other purchasing documents in the R/3 System, the purchase order consists of a document header
and one or more items.
The document header contains information that refers to the entire purchase order. Examples of this
include the document currency, document date and the terms of payment.
The item part of the document contains data describing the materials or services ordered. You can
maintain additional information for each item, for example, delivery schedules or item-based text.
In a purchase order, you procure materials or services for all plants attached to your purchasing
organization.

SAP AG

TAMM10 4.0B

13-5

Conditions
PO

Quotation

Conditions
Key

Description

Amount

PB00

Gross price

UNI 10.00

FRA1

Freight

5.0%

RA00

Discount from net

8.0%

ZOB1

Abs. customs duty UNI 3.00

Outline

Info record

agreement

SAP AG

Conditions are used in purchase orders to determine price. When you create a purchase order with
reference to a contract or purchasing info record, or if certain criteria in extended conditions apply, the
system automatically includes the condtions in the purchase order. They therefore influence its effective
price.
The following types of conditions are used in Purchasing:
Conditions in a contract apply to all contract release orders created with reference to this contract.
Conditions in a purchasing info record apply to all purchase order items that contain the material
and vendor contained in the purchasing info record.
Extended conditions are only included in the purchase order if it meets certain criteria. For
example, you can use extended conditions to define vendor discounts or include discounts for a
material type. Extended conditions are more flexible than conditions in info records or contracts in
that you can define which criteria must be met if the conditions are to apply to purchase orders.

SAP AG

TAMM10 4.0B

13-6

Issuing Messages
Purchasing doc.

Output
Printer

Printout

EDI

Delivery
schedule

Expeditor/
Reminder

Fax
Telex
Teletex

Rejection
letter

Order
acknowledgement
expeditor
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SAP AG

You can issue purchase orders, purchase order changes and order acknowledgements as messages.
Output can be via a printer, fax machine or EDI, for example.
You can set which header texts and item-based texts the system issues. The header text is printed at the
start of the purchase order and contains generally applicable information. Item texts describe a purchase
order item more precisely. You can also include and issue standard texts.
Note: You will find more detailed information about purchasing document output in the Materials
Management documentation on Purchasing: Entering Texts, Print Functions and Information Transmission.

SAP AG

TAMM10 4.0B

13-7

Goods receipt
Vendor
Another plant

Purchase
order
GR area

Material
document

Accounting
document(s)
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SAP AG

Posting a goods receipt to stock with reference to a purchase order has a number of advantages for you,
including:
The goods receiving department can check whether the goods delivered are what was actually
ordered.
The system suggests data in the purchase order when you enter the goods receipt (for example
material ordered, quantity). This makes it easier to enter the goods receipt and check overdeliveries
and underdeliveries when goods arrive.
The purchase order is automatically updated with the delivery. The Purchasing department can
send a reminder about late deliveries.
When a goods receipt to the warehouse is posted, a material document is created that contains
information such as the material delivered and the quantity delivered. The storage location in which you
place the material into stock in the associated plant is also recorded.
In transactions relevant for material valuation, at least one accounting document is created which
records the effects the material movement has on the value of the stock.

SAP AG

TAMM10 4.0B

13-8

Material and Accounting Documents

Material document

Accounting document
Document header

Document header

Accounting header 4900000642

Material header 49000757

Document items

Document items

Date 04/06
Quantity

Date 04/06

001
002

10 liter
25 pcs

Material

Plant

paint
mirror

3000
3000

Account
001
002
003

300000
300000
400000

Short text

75Stock
400Stock
Consumption 475-

The
The material
material and
and accounting
accounting documents
documents for
for aa
goods
goods movement
movement are
are created
created simultaneously.
simultaneously.
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SAP AG

The material document consists of a document header and at least one item. The header information
includes the posting date and the name of the creator. Which quantity of which material is posted to
which storage location of the associated plant is recorded at item level.
The accounting document records the effects of material movements on the accounts. The document
header contains generally applicable data, such as the document date, posting date, posting period, and
document currency. The G/L account numbers and the associated amount posted are recorded at item
level.
The material and accounting documents are independent documents. You can identify the material
document by the material document number and the material document year. The accounting document
can be clearly identified by the company code, accounting document number and fiscal year. The
company code in which the accounting document is posted is taken from the plant in which the goods
movement takes place.

SAP AG

TAMM10 4.0B

13-9

Effects of a Goods Receipt

Material
master

Stock value:

+100

Quantity:

+50

Valuation price

Purchase
Purchase order:
order:
50
50 pcs
pcs @
@ UNI
UNI 2.00/pc
2.00/pc
Goods
Goods receipt:
receipt:
50
50 pcs
pcs

Accounting

Stock account

GR/IR account

100

100

SAP AG

This example applies to the procurement of stock materials and assumes that the material delivered is
valuated with the purchase order price in the goods receipt (You will receive more detailed information
about material valuation in the next unit of this course).
Entering the goods receipt increases the stock quantity in the material master record. The stock value of
the material increases by the purchase order price multiplied by the goods receipt quantity.
The goods receipt creates a debit posting to the stock account established by the automatic account
determination. The system determines the amount from the purchase order price of the item and the
goods receipt quantity. Since the vendor invoice is not usually available at goods receipt, but the
material becomes valuated stock in your plant at this point, provisions are created in a GR/IR clearing
account (GR: goods receipt, IR: invoice receipt) until the vendor invoice is posted. This creates the
liability to the vendor that is expected at invoice receipt.

SAP AG

TAMM10 4.0B

13-10

Effects of a Goods Receipt

Material
Material delivery
delivery
PO history
and PO
updated

Material
master

Stock and value

updated

Goods receipt
Accounting
Material
document
Notification of
goods receipt
(optional)

Movement
documentation

GR slip

QM

Hard copy
(optional)
Transfer request to
warehouse management
(if active)

WM

Stock and
consumption
accounts
updated

Creation of an
inspection lot to
trigger a quality
inspection

SAP AG

The diagram shows once again an overview of all the key effects of a goods receipt referencing a
purchase order.

SAP AG

TAMM10 4.0B

13-11

Invoice Processing
Master data

Invoice Verification
Invoice

Purchase
order

Invoice
document

Payment
program

Material document
for goods receipt
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SAP AG

In Materials Management, the procurement process is completed by Invoice Verification. There, invoices
and credit memos are entered and checked for accuracy of the contents and prices. However, payment
and evaluation of invoices is not part of Invoice Verification; the appropriate information for these tasks
is passed on to other departments. Therefore, Invoice Verification creates a link between Materials
Management and external or internal accounting.
When you enter an invoice with reference to a purchase order, the system suggests data from the
purchase order and the goods receipts for the purchase order, for example, vendor, material, quantity
still to be invoiced, terms of payment and so on.
If there are variances between the purchase order or goods receipt and the invoice, the system warns the
user and blocks the invoice for payment, if necessary.
Posting the invoice completes the process of Invoice Verification. The purchase order history is updated
and Financial Accounting can pay the open invoice item.

SAP AG

TAMM10 4.0B

13-12

Invoice Verification Environment

Purchase
order

G/L accounts

Goods receipt

Incoming
invoice

Assets
Cost centers

Material master
record

Invoice Verification
Projects

Vendor master
record

Orders

Conditions

SAP AG

In Invoice Verification, the system uses data from Purchasing, Inventory Management, the material
master and the vendor master. For example, the material number, short description, and base unit of
measure are determined from the material master. The vendor master contains, for example, the terms of
payment applicable to that vendor. The system can determine the different conditions for a vendor on the
basis of so-called condition records.
If an invoice is posted in the SAP R/3 System with reference to a purchase order, the invoice receipt is
stored in the purchase order history.

SAP AG

TAMM10 4.0B

13-13

Information in an Invoice
T

Thompson
Thompson&&Sons
Sons
39
39Second
SecondSt.
St.
Tampa,
Tampa,Fl
Fl24973
24973
Motor
MotorSports
SportsInternational
International
672
672Lancaster
LancasterAve.
Ave.
Radnor,
Radnor,PA
PA19010
19010

04/03/98
04/03/98

Purchase
Purchase order
order

With
Withreference
referenceto
toyour
yourpurchase
purchaseorder
order45000895
45000895of
of
03.02.98,
03.02.98,we
wedelivered
deliveredthe
thefollowing
followinggoods:
goods:

Invoice
Invoice items
items

VGE-raw
VGE-raw 11
VGE-sem
VGE-sem11

Material
Material

1.000
1.000pcs
pcs
300
300kg
kg

plus
plus10%
10%tax
tax

Quantities
Quantities

Document
Document date
date

$$ 2,500
2,500
$$ 1,500
1,500
_________
_________

Amount
Amount per
per item
item

$$ 4,000
4,000
$$ 400
400
_________
_________

Tax
Tax amount
amount

$$ 4,400_
4,400___

Unit
Unit of
of measure
measure
Terms
Terms of
of payment
payment

Invoicing
Invoicing party
party

Invoice
Invoice amount
amount
Tax
Tax rate
rate

Payable
Payablewithin
within20
20days
daysof
ofinvoice
invoicedate.
date.
2%
2%cash
cashdiscount
discountfor
forpayment
paymentwithin
within10
10days.
days.
Account
no.
11223344,
Bank
of
Florida
Account no. 11223344, Bank of Florida(code
(code300
300210
21055).
55).

Bank
Bank information
information
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SAP AG

When entering a vendor invoice, the user enters some of the data, some of the data is adopted from the
purchase order as default values and some is suggested on the basis of the system settings
(for example, the tax rate).
The invoice document can be optically archived and sent to the department responsible for Invoice
Verification via Workflow. This represents an important contribution to the realization of the paperless
office.

SAP AG

TAMM10 4.0B

13-14

Types of Invoice Verification

Confirmation

Purchase
order

or

or

Delivery
note

Goods receipt

Invoice
Invoice Verification
Verification

SAP AG

Invoice items can be posted with reference to a goods receipt, a purchase order or a delivery note. The
postings are automatically made to the corresponding G/L accounts. When an invoice is posted, an open
item is credited on the vendor account.
With purchase-order-based Invoice Verification, you can settle all items, irrespective of whether there
have been partial deliveries.
With goods-receipt-based Invoice Verification, you use the goods receipts as the basis of the invoice
entry. Invoices for quantities greater than the goods receipt quantity cannot be posted. You must set this
type of Invoice Verification in the purchase order.

SAP AG

TAMM10 4.0B

13-15

With Purchase Order Reference

Purchase
order
100 pcs

Purchase order
no. 4500012345

GR-IV

Vendor
invoice

Goods receipt

Goods receipt

Goods receipt

GR 1 50

GR 2 40

GR 3 10

Access via
purchase order

Selection screen
Purchase order
X 4500012345

100

SAP AG

If the indicator for goods-receipt-based Invoice Verification was not set in the purchase order, the vendor
invoice can be entered before or after the goods are received.
If the invoice is entered with reference to a purchase order, only the amount that has already been
delivered but not yet invoiced appears on the selection screen as the default value if you are working
with standard settings. You can overwrite the default value and consequently settle the entire purchase
order quantity when partial deliveries have been received. The system automatically blocks the invoice
for payment if tolerances defined in the system are exceeded (for example, if the invoice price varies
greatly from the purchase order price).

SAP AG

TAMM10 4.0B

13-16

Effects of Invoice Verification

Invoice
(for purchase
order)

Post
A
XX

B
XX

Price Variance!

Material master
Moving average price
Value

Purchase order history

Goods receipts
Down-payments

When
When you
you post
post an
an invoice,
invoice,
an
an accounting
accounting document
document is
is
created.
created. The
The individual
individual
items
items are
are posted
posted to
to the
the
corresponding
accounts.
corresponding accounts.

Document no. 51000123

Vendor
GR/IR

100 100 +

Invoices

SAP AG

The effects of posting an invoice in the R/3 System are:

When you post an invoice, an accounting document is created. The individual items are posted to
the corresponding accounts.
The provisions in the GR/IR clearing account are reversed.
The invoice document is entered in the purchase order history.
If the invoice price differs from the purchase order price, the stock value and the current moving
average price is recalculated and updated in the material master, for a material valuated with
moving average price.

SAP AG

TAMM10 4.0B

13-17

Account Postings
Purchase
Purchase order:
order: 50
50 pcs
pcs at
at 2.00
2.00 UNI
UNI // piece
piece
GR
GR for
for this
this purchase
purchase order:
order: 50
50 pieces
pieces
Invoice:
Invoice: 50
50 pieces
pieces at
at 2.00
2.00 UNI
UNI // piece
piece
Goods
Goods
receipt
receipt
Stock
Stock account
account
GR/IR
GR/IR account
account
Vendor
Vendor

100
100 ++
100
100 --

Invoice
Invoice

Incoming
invoice
UNI 100.00

100
100 ++
100
100 --

SAP AG

Invoice receipt creates a liability towards the vendor. Since a provision has already been created for this
liability in a GR/IR clearing account at the time of goods receipt, the invoice receipt now clears this.
The offsetting entry is made to the vendor account and creates an open item there.

SAP AG

TAMM10 4.0B

13-18

Valuation of Goods Receipts

V (Moving average price) = value / quantity
Stock account
Accounting 1
Price control

250

GR/IR
250

Amount from purchase order

S (Standard price) = fixed

Material
master

Stock account

GR/IR

200

250

Standard price * quantity

Amt from purchase order

Price difference
50

SAP AG

Valuation of goods receipts depends on the price control procedure you set in the material master record.
In the R/3 System, material valuation can be carried out according to the moving average price
procedure (V price) or the standard price procedure (S price). The system also takes into account
delivery costs entered in the purchase order.

SAP AG

TAMM10 4.0B

13-19

Example: Posting at Standard Price (1)

Material master record: valuation data
Transaction
(1)

Initial situation

Stock

Total value

Standard
price

200.00

2.00

100

Moving ave.
price
2.00

Financial accounting: Account postings

Stock account
(1)

Vendor

200

Income from
price differences

GR/IR clearing account

Expenditure from
price differences

SAP AG

The initial stock quantity and value are displayed in the Initial situation column.
For statistical purposes, the system also calculates the moving average price for materials that are
valuated at standard price. This means that you can spot major differences between the current
procurement price and the standard price, and react accordingly.
The system calculates the total stock value for materials with standard price control as follows: total
value = standard price (per base unit of measure) * total stock.

SAP AG

TAMM10 4.0B

13-20

Example: Posting at Standard Price (2)

Material master record: valuation data
Transaction

Stock

Total value

Standard
price

Moving ave.
price

(1)

Initial situation

100

200.00

2.00

2.00

(2)

GR for PO: 100 @ 2.40

200

400.00

2.00

2.20

Financial accounting: account postings

Stock account
(1)
(2)

GR/IR clearing account

200
200

Income from
price differences

240

(2)

Expenditure from
price differences
(2)

Vendor

40

SAP AG

The system updates stock value and stock quantity at standard price.
It updates the GR/IR clearing account at the purchase order price.
It posts the difference between the purchase order price and the standard price to the price difference
account.

SAP AG

TAMM10 4.0B

13-21

Example: Posting at Standard Price (3)

Material master record: valuation data
Transaction

Stock

Total value

Standard
price

Moving ave.
price

(1)

Initial situation

100

200.00

2.00

2.00

(2)

GR for PO: 100 @ 2.40

200

400.00

2.00

2.20

(3)

IR for PO: 100 @ 2.20

200

400.00

2.00

2.10

Financial accounting: account postings

Stock account
(1)
(2)

GR/IR clearing account

200
200

(3) 240

Income from
price differences
20

(3)

240

(2)

Expenditure from
price differences
(2)

Vendor
220

(3)

40

SAP AG

The system clears the GR/IR clearing account at the purchase order price.
It updates the vendor account at the invoice price.
It posts the difference between the purchase order price and the invoice price to the income from price
differences account. It does not change the total stock value.

SAP AG

TAMM10 4.0B

13-22

Example: Posting at Moving Average Price (1)

Material master record: valuation data
Transaction
(1)

Initial situation

Stock

Total value

Standard
price

200.00

2.00

100

Moving ave.
price
2.00

Financial accounting: account postings

Stock account
(1)

GR/IR clearing account

Vendor

200

SAP AG

Initial stock quantity and value are displayed in the Initial situation column.

SAP AG

TAMM10 4.0B

13-23

Example: Posting at Moving Average Price (2)

Material master record: valuation data
Transaction

Stock

Total value

Standard
price

Moving ave.
price

(1)

Initial situation

100

200.00

2.00

2.00

(2)

GR for PO: 100 @ 2.40

200

440.00

2.00

2.20

Financial accounting: account postings

Stock account
(1)
(2)

200
240

GR/IR clearing account

240

Vendor

(2)

SAP AG

The system updates the stock value, stock account, and GR/IR clearing account at the purchase order
price.
It recalculates the moving average price on the basis of the new stock value.
Moving average price (per base unit of measure) = total value / total stock

SAP AG

TAMM10 4.0B

13-24

Example: Posting at Moving Ave. Price (3)

Material master record: valuation data
Transaction

Stock

Total value

Standard
price

Moving ave.
price

(1)

Initial situation

100

200.00

2.00

2.00

(2)

GR for PO: 100 @ 2.40

200

440.00

2.00

2.20

(3)

IR for PO: 100 @ 2.20

200

420.00

2.00

2.10

Financial accounting: account postings

Stock account
(1)
(2)

200
240

20

GR/IR account
(3)

(3) 240

240

Vendor

(2)

220

(3)

SAP AG

The system clears the GR/IR clearing account at the purchase order price. It updates the vendor account
at the invoice price and posts the difference between the purchase order price and invoice price to the
stock account. It recalculates the stock value based on the invoice price.
The system redetermines the moving average price based on the new stock value.
If the stock quantity is less than the invoice quantity, the system posts part of the difference to the
"Expenditure/income from price differences" account instead of the stock account.

SAP AG

TAMM10 4.0B

13-25

Delivery Costs
Delivery costs
Unplanned

Planned
PO

PO

100 pcs = UNI 1000

Freight = UNI 2/pcs

100 pcs = UNI 1000

Invoice
100 pcs
Freight

Invoice
UNI 1000
UNI 200
UNI 1200

100 pcs
Freight

UNI 1000
UNI
50
UNI 1050
R

SAP AG

The R/3 System differentiates between planned and unplanned delivery costs.
You arrange planned delivery costs in advance with the vendor, a carrier, or the customs office and enter
them when creating the purchase order. At goods receipt, provision accounts are posted, which are then
cleared when the invoice is received.
Unplanned delivery costs are delivery costs you do not know about when you are creating the purchase
order. You do not enter these until the you receive the invoice.
The advantage of planned delivery costs is that they are included in the valuation of a material at goods
receipt or, for purchase orders with account assignment, the system can debit the account assignment
object. The system only carries out subsequent debits at invoice receipt if the delivery costs in the
invoice differ from those planned.

SAP AG

TAMM10 4.0B

13-26

Planned Delivery Costs

Planned
Planned

Freight
shipping

Customs
DUTY

shipping

Fixed amount per

item or purchase
order

Percentage from
value of goods

Quantity-dependent
amount
R

SAP AG

Planned delivery costs are delivery costs that are arranged with the vendor, carrier, or customs office in
advance. They are therefore entered in the purchase order.
Planned delivery costs could be freight or customs duty costs, for example. In Customizing for
Purchasing, your system administrator can use conditions to create other types of delivery costs.
The system automatically posts planned delivery costs to clearing accounts when you enter the goods
receipt. A special clearing account can be set up for every origin type. When you post the invoice for
these delivery costs, the system clears the relevant clearing accounts.
In Invoice verification, you can list all planned delivery costs for a purchase order, vendor, or bill of
lading. You can then copy the relevant items from the list into the document.
Planned delivery costs are not bound to a vendor. When planning the delivery costs in the purchase
order, you can enter a special vendor for the delivery costs (for example, a freight vendor or customs
office). In Invoice Verification, you can post these delivery costs for a different invoicing party.

SAP AG

TAMM10 4.0B

13-27

Account Postings for Planned Delivery Costs

PO
240

Invoice

(2)

Goods receipt

100 pcs = UNI 130

100 pieces

Freight = UNI 0.10/pc

Duty

Freight clearing acct

IR: 10

GR/IR clearing account

IR: 130

GR: 146

UNI 146.00

= UNI 6.00

Stock account

GR: 10

100 pcs UNI 130.00

Freight UNI
10.00
Duty
UNI
6.00

Vendor

GR: 130

IR: 146

Duty clearing acct

IR: 6

GR: 6

SAP AG

The slide shows how a material with moving average price control is updated. With standard price
control, additional price differences may occur, which are posted to corresponding expenditure or income
accounts for price differences.
At goods receipt, planned delivery costs are posted from a stock account to a special clearing account,
for example, a freight clearing account or clearing account for customs duty. When the delivery costs are
settled, the clearing account is then cleared. (This procedure is similar to how goods receipts and invoice
receipts are cleared from the GR/IR clearing account.)

SAP AG

TAMM10 4.0B

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Purchase Orders & GR/IR: Summary (1)

When creating purchasing documents, you can
reference various documents. For example, you can
create purchase orders with reference to quotations or
purchase requisitions.
Data stored in the header of the purchasing document
is valid for the whole document (vendor, conditions,
currency, texts etc.).
Data that is entered for an item in a purchasing
document is only valid for that item (conditions, texts,
additional data etc.).

SAP AG

SAP AG

TAMM10 4.0B

13-29

Purchase Orders & GR/IR: Summary (2)

Deliveries and invoices referring to a purchase order
must be entered with reference to the purchase
order.
Indicators in the purchase order item control whether
goods receipt and invoice receipt are carried out and
how they are carried out.
External purchasing documents are output via
message determination. Various mediums can be
used to output the documents (printer, dax, EDI, ...).
When goods movements are posted (e.g. goods
receipt) the system creates a material document to
record the quantity flow.

SAP AG

SAP AG

TAMM10 4.0B

13-30

Purchase Orders & GR/IR: Summary (3)

The account postings that are carried out upon
goods movements (e.g. GR), invoice receipt, and
other postings are recorded in an accounting
document. Among other things, the account
postings depend on the price control method of the
material being procured.
Goods movements that do not affect value (e.g.
non-valuated GR) do not generate an accounting
document.
Delivery costs can be planned in the purchase
order.

SAP AG

SAP AG

TAMM10 4.0B

13-31