LML SAP MM Configuration Document V0

Configuration Document
For
Materials Management
Submitted
to
Prepared by
Tamilvanan R
Indus Novateur softtech Pvt Ltd

Annasalai
Okkiyam Thoraipakkam, Chennai – 600 096
Tel: +91 44-49098874
Fax: (+91) 44-49098875
Configuration Document Page 2 of 103

Revision history
VERSIO
DATE AUTHOR REVIEWER APPROVER REMARKS
N
1.0 04.02.201 Tamilvana
9 n
Confidentiality Statement
This document contains information that is proprietary and

confidential to Indus, which shall not be disclosed outside Lokesh
Machine, transmitted, or duplicated, used in whole or in part for
any purpose other than its intended purpose. Any use or
disclosure in whole or in part of this information without express
written permission of Indus is prohibited.
Any other company and product names mentioned are used for
identification purposes only, and may be trademarks of their respective
owners.
© Copyright 2019,.
Configuration Document Page 2 of 103

Table of Contents
Materials Management : Configuration..........................................................................................7

1.0 Purpose..............................................................................................................................................7
2.0 Scope of the Document...............................................................................................................7
3.0 Configuration MM Module............................................................................................................7
4.0 General Settings.............................................................................................................................8
4.1 Units of Measurement..................................................................................................................8
5.0 Enterprise Structure......................................................................................................................9
5.1 Define Valuation Area...................................................................................................................9
5.2 Define, copy, delete, and check Plant..................................................................................10
5.3 Maintain Storage Location........................................................................................................11
5.4 Maintain Purchasing Organisation..........................................................................................14
5.5 Assign Plant to Company Code...............................................................................................15
5.6 Assign Purchasing Organisation to Company Code.........................................................16
5.7 Assign Purchasing Organisation to Plant.............................................................................17
6.0 Logistics General..........................................................................................................................19
6.1 Define Company Codes for Materials Management.........................................................19
6.2 Define Attributes of Material Types.......................................................................................19
6.3 Define Number Ranges for each Material Type.................................................................20
6.4 Maintain Field Selection for Data Screens..........................................................................21
6.5 Assign fields to field selection groups..................................................................................21
6.6 Define Material Groups..............................................................................................................23
6.7 Define Account Groups and Field Selection (Vendor).....................................................24
6.8 Define Number Ranges for Vendor Master Records........................................................25
7.0 Batch Management......................................................................................................................27
7.1 Define Inventory Management Condition Tables.............................................................27
7.2 Define Inventory Management Access Sequence............................................................27
7.3 Define Inventory Management Strategy Types................................................................27
7.4 Define Inventory Management Search Procedure...........................................................29
7.5 Allocate IM Search Procedure / Activate Check................................................................30
7.6 Define Selection Characteristics.............................................................................................31
Configuration Document Page 3 of

103 Materials Management
7.7 Define Selection Classes...........................................................................................................32
7.8 Define Sort Rules.........................................................................................................................33
8.0 Materials Management...............................................................................................................35
8.1 Define Purchasing Value Keys.................................................................................................35
8.2 Check Inco Terms........................................................................................................................35
8.3 Create Purchasing Groups........................................................................................................36
8.4 Processing Time............................................................................................................................37
8.5 Release Procedure of purchase requisition – Edit Characteristics.............................38
8.6 Release Procedure of purchase requisition – Edit Classes............................................39
8.7 Release Procedure of Purchase Requisition – Set Up Procedure with
Classification..............................................................................................................................................40
8.8 Define Screen Layout at Document Level...........................................................................43
8.9 Define Number Ranges for Purchasing Documents.........................................................44
8.10 Define Document Types for Purchase order.....................................................................44
8.12 Item Texts Purchase Order......................................................................................................46
8.13 Copying Rules for Item Texts Purchase Order..................................................................47
8.14 Release Procedure for Purchase Orders – Edit Characteristics for Company Code,
Purchase Order Document Type, PO Net Value1, PO Net Value2 and Purchase Group.47
8.15 Release Procedure for Purchase Orders – Edit Class......................................................50
8.16 Setup Stock Transport order – Define Shipping Data for Plants................................51
8.17 Setup Stock Transport order – Assign Delivery Type & Checking rule....................53
8.18 Define Document Types for Contract...................................................................................54
8.19 Item Texts Contract....................................................................................................................54
8.20 Define Document Types for Scheduling Agreement........................................................55
8.21 Item Texts Scheduling Agreement........................................................................................55
8.23 Conditions - Define Condition Types...................................................................................56
8.24 Conditions - Define Calculation Schema............................................................................59
8.25 Conditions - Define Schema Group......................................................................................64
8.26 Conditions - Define Schema Determination......................................................................65
8.27 Define Transaction / Event Keys............................................................................................66
8.28 Maintain Account Assignment Categories...........................................................................67

8.29 Version Management - Purchase Requisitions.................................................................67
8.30 Version Management - Purchasing Documents...............................................................68
8.31 Messages – Define texts for Purchase Orders...................................................................69
8.32 Messages – Define texts for Contracts................................................................................70
8.33 Messages – Define texts for Scheduling Agreement.......................................................70
8.34 Messages – Define change texts............................................................................................70
8.35 Messages – Output Control – Message Types RFQ.........................................................71
8.36 Messages – Output Control – Message Types PO............................................................72
8.37 Messages – Output Control – Message Types Outline Agreements..........................73
8.38 Messages – Output Control – Message Types Delivery Schedules............................74
8.39 Messages – Output Control – Field Relevant to Printout of Changes.......................75
8.40 Partner Determination – Partner Roles per Account Group..........................................76
8.41 Partner Determination – Partner Settings in Vendor Master.......................................77
8.42 Partner Determination – Partner Settings in Pur. Documents....................................77
8.43 Authorization Management – Define Function Authorization for buyers.................78
8.44 External Service Management................................................................................................78
8.45 External Service Management................................................................................................79
8.46 Define Price Control for Material Types...............................................................................80
8.47 Activate Split Valuation..............................................................................................................81
8.48 Configure Split Valuation..........................................................................................................81
8.49 Account Determination – Define Valuation Control.........................................................82
8.50 Account Determination – Group together Valuation areas...........................................82
8.51 Account Determination – Define Valuation Classes.........................................................83
8.52 Account Determination – Configure Automatic Postings...............................................85
8.53 Inventory Management and Physical Inventory : Field Selection for MIGO...........93
8.54 Inventory Management and Physical Inventory : Field Selection per Movement
Type 93
8.55 Inventory Management and Physical Inventory : Goods Issue / Transfer Posting
– Create Storage Location Automatically........................................................................................94
8.56 Inventory Management and Physical Inventory : Goods Receipt – Create
Storage Location Automatically..........................................................................................................95
8.57 Inventory Management and Physical Inventory : Goods Receipt–Set Expiration
Date Check.................................................................................................................................................95

8.58 Inventory Management and Physical Inventory : Goods Receipt – Set Tolerance
limits 96
8.59 Inventory Management and Physical Inventory : Automatic Postings – Create
Storage Location Automatically..........................................................................................................96
8.60 Inventory Management and Physical Inventory : Physical inventory – Allow
Freezing of Book Inventory Balance in Storage Location.........................................................97
8.61 Inventory Management and Physical Inventory : Movement Types – Record
Reason for Movement type..................................................................................................................98
8.62 Invoice Verification – Maintain Default Values for Tax Codes...................................100
8.63 Invoice Verification – Configure how Unplanned Delivery Costs are to be treated
101
8.64 Invoice Verification – Set Check for Duplicate Invoices..............................................101
8.65 Invoice Verification – Set Tolerance Limits......................................................................102

Materials Management : Configuration
1.0 Purpose
Purpose of this document is to provide the Customization / Configuration settings

done in SAP R/3 – MM module under the SAP implementation project at Lokesh
Machine; Chennai Intended audiences are the SAP MM core team personnel from
Chennai.
2.0 Scope of the Document
Materials Management System Document contains the configuration and customizing

details of the Materials Management module which are required to map all the MM
business processes as required by Lokesh Machine. It addresses the organizational
setup of the Lokesh Machine as well as the various functional aspects of the MM
business processes to be carried out.
3.0 Configuration MM Module
R/3 configuration details have been broadly dealt under the following headings:
 General Settings
 Enterprise Structure
 Logistics General
 Materials Management
This document may not include all the parameters in the system. The configuration
values or parameters are documented under the following conditions:
 A new value or a set of values has been added in the system.

 A specific value has been chosen when many options were available. Example:
Date Format
 Important SAP default settings are used without change. In this case the
default settings are just mentioned. The details of the settings may be omitted.
Example: MRP types & Standard Movement types.

4.0 General Settings
In this section, you define application independent system settings.

These settings are a prerequisite for handling all business transactions.
4.1 Units of Measurement
T.Code SPRO
IMG  SAP NetWeaver  General Settings  Check Units of
Path
Measurement
LOKESH MACHINE Configuration :
Following new Units of Measurement has been added :
Measurement
Unit Commercial Technical Unit Text
Unit Text
BOX BOX BOX Boxes Boxes
SET SET Sets Sets Sets
KIT KIT Kit Kit Kit
PCK PCK Pck Pck Pck
ROL ROL Roll Roll Roll
Added Additional UoM Dt. 20.01.2015.
MU MU MU MU MU
KU KU KU KU KU
Procedure

. To carry out the activity, execute the above IMG Node.
2. Choose Units of measurement.
3. In the drop down box select ‘Mass’ or ‘Volume’, in case of weight / capacity
based unit of measure or select NO dimensions in case of defining units such as
boxes, tins etc.
4. Give the following details in the relevant fields depending on whether it is a

dimensional unit or a Non dimensional unit of measure. Always as a rule copy
an existing SAP standard unit of measure.
Unit Commercial Technical Text ISO Decimals Numerator Denominator Decimal

code Rounding
5. Save the settings
5.0 Enterprise Structure
5.1 Define Valuation Area
T.Code SPRO – OX14

IMG  Enterprise Structure  Definition  Logistics General 
Path
Define Valuation Area
Valuation area is defined by specifying the level at which material stocks are to be
valuated. Material stocks can be valuated at the following levels:
 Plant level
 Company code level
LOKESH MACHINE Configuration:
Valuation area has been defined as Plant.

5.2 Define, copy, delete, and check Plant
T.Code SPRO
IMG  Enterprise Structure  Definition  Logistics General 
Path
Define, copy, delete, check Plant
Plant is an operating area or branch within a company in which all the logistical
functions of the organization are carried out.
Plant is embedded in the organizational structure as follows:
 Plant is assigned to a single company code. A company code can have several
plants.
 Several storage locations in which material stocks are managed can belong to a
plant.
Plant Name Factory Calendar
1000 LOKESH MACHINE-MFG, POONAMALLE IN

1001 LOKESH MACHINE-REAGENT, POONAMALLE IN
Procedure

. To carry out the activity, execute the above IMG Node.
2. Choose Define plant.
3. On the following screen, make the following entries:
Field name Description

Plant
Name 1
Factory
calendar
4. On the main screen, Choose “Copy, delete, check” function and create plants with
reference to any standard SAP defined plants. Here all the dependant entries get
copied, using the ‘copy all’ function.
5. Settings saved.
6. Go to ‘Define plant’ screen and change the addresses and other details relevant for
that plant.
5.3 Maintain Storage Location
T.Code SPRO
IMG  Enterprise Structure  Definition  Materials Management
Path
 Maintain Storage Location - OX09
Storage location is the place where stock is physically kept within a plant. Hence a
storage location is always defined for a plant. Stocks are managed only on quantity
and not on value basis in a storage location. Physical inventories are carried out at
storage location level.

Storage Location
Plant Storage Location Code Description
1100 Component Stores
1101 FG Stores
1000
1102 Rejection Stores
1103 Scrap Yard
Storage Location
Plant Storage Location Code Description
1101 FG Stores
1001
1103 Scrap Yard
Procedure

1. To carry out the activity, execute the above IMG Node.
2. Enter the plant for which the storage locations are to be created.
SLOC Description
1101 FG Stores
1103 Scrap Yard
4. Settings saved.
Select each of the storage locations and maintain their addresses if required - Storage
location -> Addresses of storage location.
5.4 Maintain Purchasing Organisation
T.Code SPRO
IMG  Enterprise Structure  Definition  Materials Management
Path
 Maintain Purchasing Organisation
Purchasing organization is responsible for all purchasing activities (including the

processing of requests for quotations and purchase orders, for example).
Masters such as Vendor masters, Info-record are maintained for a purchasing
organization.
A purchasing organization can be assigned to several company codes = Corporate-
group-wide purchasing.
A purchasing organization can be assigned to one company code = Company-specific
purchasing.
A purchasing organization can also exist without being assigned to a company code.
A purchasing organization must be assigned to one or more plants = Plant-specific
purchasing.

Purchase Organization Purchase Organization Description
1000 Purch. Org. LOKESH MACHINE
C100 Central P.Org. LOKESH MACHINE
Procedure
2. Select the New entries
3. And make the following entries:
Purchasing
Description
Organization
1000 Purch. Org. LOKESH MACHINE
5.5 Assign Plant to Company Code
T.Code SPRO
IMG  Enterprise Structure  Assignment  Logistics General 
Path
Assign Plant to Company Code - OX18
Plant is assigned to a company code. Plant is always assigned to only one company
code. Company code is as defined in the financial accounting module.
Company
Plant
Code
1000 1000
1001 1000

Procedure
2. Choose Assign.
3. Select the appropriate row for e.g.: Company code 1000 and assign all the plants
relevant for that company code.
4. Settings saved.
5.6 Assign Purchasing Organisation to Company Code
T.Code SPRO
IMG  Enterprise Structure  Assignment  Materials
Path
Management  Assign Purchasing Organisation to Company Code
Purchasing Organisation is assigned to a company code. Purchasing Organisation can

be assigned to multiple company code. Company code is as defined in the financial
accounting module.
Company
Pur.Organization
Code
1000 1000
C100 1000
Procedure

2. Choose Assign.
3. Select the appropriate row for e.g.: Company code 1000 and assign all the
purchase organization relevant for that company code.
4. Settings saved.
5.7 Assign Purchasing Organisation to Plant
T.Code SPRO
IMG  Enterprise Structure  Assignment  Materials
Path
Management  Assign Purchasing organisation to Plant - OX17
Purchasing organization has to be assigned to plants for which they are responsible.
One purchasing organization procures for one plant. This is plant-specific purchasing.
One purchasing organization procures for several plants.
Several purchasing organizations procure for one plant.
Pur.
Organizatio Plant
n
1000 1000
1000 1001
1000 1002
1000 1003
1000 1004
1000 1005
1000 1006

1000 1007
1000 1008
1000 1009
C100 1000
C100 1001
C100 1002
C100 1003
C100 1004
C100 1005
C100 1006
C100 1007
C100 1008
C100 1009
Procedure
2. Select the row, which has the purchasing organization and choose ‘Assign’.
3. Assign all the plants to the purchasing organization.
6.0 Logistics General
6.1 Define Company Codes for Materials Management
T.Code SPRO
IMG  Logistics General  Material Master  Basic Settings 
Path
Maintain Company Codes for Materials Management

Company codes are to be maintained for transactions to be done in Materials
Management. Here the period of material accounting postings are to be maintained. It
can also be specified if Back postings are allowed or not.
Note : To initialize company codes during productive operation, use the period closing
program
T.Code MMPV and use T.Code MMRV if Back postings are allowed or not.
Compan Company Current

Year FYr MP FYr LM ABp DBp
y Code Name Period
Lokesh 1
1000 2013 11 2012 10 2012 X
Machine 2
6.2 Define Attributes of Material Types
T.Code SPRO
Path
Material Types  Define Attributes of Material Types
The following material types are added

1. ZAST – By copying the material type ERSA
2. ZNBW – By copying the material type UNBW
3. ZSCR – By copying the material type HALB
6.3 Define Number Ranges for each Material Type
T.Code SPRO
Path
Material Types  Define Number Ranges for each Material Type

The purpose of this activity is to define internal and external number ranges for the
different material types.
External number ranges have been assigned for all material types, which has been
assigned with an number range 000000000000000001 to ZZZZZZZZZ999999999
Procedure
1.To carry out the activity, execute the above IMG Node.
2.Go to screen Maintain number range groups.
3.Select ‘Group’ in the menu bar and choose ‘insert Group’.
4.Maintain the new number range; mark it as external or internal.
5.Use the ‘+’ icon to insert the new number range for the new group.
6.The new number range should not overlap the existing number range.
7.To assign the material type to the new number range, select the check box next to
the new group and then select the material type, which is to be assigned to
the new group.
8.Choose the ‘Element/Group’ icon to assign the material type to the new number
range, as represented by the new group.
9.Save the settings.
6.4 Maintain Field Selection for Data Screens
T.Code SPRO
IMG  Logistics General  Material Master  Field Selection 
Path
Maintain Field Selection for Data Screens
When material master records are maintained, the field reference determines for each
field selection group if the field selection group is set to Hide, Display, Required entry,
or Optional entry.

SAP Standard Settings
6.5 Assign fields to field selection groups
T.Code SPRO
IMG  Logistics General  Material Master  Field Selection 
Path
Assign fields to field selection groups
The purpose of this activity is to isolate certain fields or group of fields in the material
master and define whether these fields are to be hidden, displayed, to be made
mandatory or optional.
All the SAP standard settings have been maintained except for fields such as Division,
Account assignment group, profit center, external storage location and strategy group
which has been made mandatory.

Procedure :
1. To carry out the activity, execute the above IMG node.
2. On the above screen, make the following entries:
Field reference Hide Display Required Optional

Entry Entry
For Material Type
(ROH,UNBW,ERSA
FHMI,HALB,FERT
VERP,HAWA,HIBE
etc)
Per Transaction
(MM01, MM02
etc)
6.6 Define Material Groups
T.Code SPRO
IMG  Logistics General  Material Master  Settings for Key
Path Fields 
Define Material Groups – T-Code- OMSF
The purpose of this activity is to define material groups to group together materials
with the same attributes or purpose.

Procedure
1. To carry out the activity, execute on the above IMG Node.
2. Choose new entries and give the code and description of the material group.
3. Save the settings.
6.7 Define Account Groups and Field Selection (Vendor)
T.Code SPRO
Path IMG  Logistics General  Business Partner  Vendor  Control

 Define Account Groups and Field Selection (Vendor)
Account groups for vendors can be defined which determines :
Which fields are ready to accept input and which fields require entries when master
records are created and changed
 Whether the account is a one-time account
 Assign Number Range for the Account Group
Vendor account groups for LOKESH MACHINE has been broadly defined as :
ZDOM : LOKESH MACHINE Domestic Vendor
ZEMP : LOKESH MACHINE Employee Vendor
ZIMP : LOKESH MACHINE Import Vendor
ZONE : LOKESH MACHINE One Time Vendor
ZPLT : LOKESH MACHINE Plant Vendor
ZSUB : LOKESH MACHINE Sub Contractor Vendor
Procedure
1. To carry out the activity, execute the above IMG node.

Group - ZDOM Domestic Raw Material Vendors
(Internal No.)
General Data Name (Description)
Number range (01)

One time account or leave it
blank
Field Status – Use this to Suppress, Display, General data
and Hide, make mandatory or optional any Company code data
field in the vendor master of this account group
Purchasing data
in the given data screens.
6.8 Define Number Ranges for Vendor Master Records
T.Code SPRO
IMG  Logistics General  Business Partner  Vendor  Control
Path
 Define Number Ranges for Vendor Master Records
The purpose of this activity is to create and assign number ranges for defined vendor
account groups.
Procedure

2. Select Intervals for maintaining the number range intervals
3. On the following screen, make the following entries by selecting
From Current
No To Number External
Number number
01 0000110000 0000119999
Y3 A00000 Z99999
02 0000120000 0000129999
05 0000150000 0000159999
XX 0000001000 0000009999
04 0000140000 0000149999
4. Settings saved.
5. Select Number range in the main screen and make the following entries

Group Name Number Range
ZDOM LOKESH MACHINE Domestic Vendor 01
ZEMP LOKESH MACHINE Employee Vendor Y3
ZIMP LOKESH MACHINE Import Vendor 02
ZONE LOKESH MACHINE One Time Vendor 05
LOKESH MACHINE - One Time
ZONE 15
Vendors
LOKESH MACHINE - OSL Inside
ZOSL 14
Contractors
LOKESH MACHINE - Sub
ZSUB 14
Contractors
0007 LOKESH MACHINE - Plants XX
7.0 Batch Management
7.1 Define Inventory Management Condition Tables
T.Code SPRO
IMG  Logistics General  Batch Management  Batch
Path Determination and Batch Check  Condition Tables  Define
Inventory Management Condition Tables
7.2 Define Inventory Management Access Sequence
T.Code SPRO
Path IMG  Logistics General  Batch Management  Batch
Determination and Batch Check  Access Sequence  Define

Inventory Management Access Sequence
7.3 Define Inventory Management Strategy Types
T.Code SPRO
Path Determination and Batch Check  Strategy Types  Define
Inventory Management Strategy Types
In this IMG activity, you define strategy types for batch determination in Inventory
Management.

Procedure
1. Click on the IMG as per above Node
2. Select the line item of ME01 and click details

3. Remove the tick mark of check box “Dialog batch determination” to run batch in
background
7.4 Define Inventory Management Search Procedure
T.Code SPRO
Path Determination and Batch Check  Batch Search Procedure
Definition  Define Inventory Management Search Procedure
The purpose of this activity is to create and specifies the conditions that are allowed
for a document and defines the sequence in which they are used.

Inventory Management Search Procedure for LOKESH MACHINE has been defined as
THC001 - LOKESH MACHINE Search Procedure
Procedure
1. To carry out the activity, execute the above IMG Node.:
2. Click Copy as after selecting the SAP standard procedure
3. Make the following entries:
4. Here all the dependent entries get copied.
5. Settings Saved
7.5 Allocate IM Search Procedure / Activate Check
T.Code SPRO
Determination and Batch Check  Batch Search Procedure
Path
Alloacation and Check Activation  Allocate IM Search Procedure /
Activate Check
The purpose of this activity is to search procedure determines the sequence of the
strategy types for which the system tries to determine strategy records within the
framework of batch determination.


7.6 Define Selection Characteristics
T.Code = CT04
In this step, you create characteristics which will be assigned in classes.
LOKESH MACHINE Configuration

Procedure

1. Go to CT04
2. Give characteristics name which you want to create as mentioned above
3. In additional data tab, provide the table name and batch creation and shelf life
expiry date field in field name
7.7 Define Selection Classes
T.Code SPRO
Path
Determination and Batch Check  Define Selection Classes
In this step, you define selection classes. With the help of these selection classes,
you define according to which criteria, that is, using which characteristics, batches are
to be selected.
As a rule, all characteristics (this applies to standard characteristics as well as to user-

defined characteristics) you want to use for selection must also be contained in the
batch class.

Procedure

1. Click on IMG Node as above
2. Give Class Name which you want to create as mentioned above
3. In Char. tab, provide the characteristics

which has been created in CT04 transaction
7.8 Define Sort Rules
T.Code SPRO
Path
Determination and Batch Check  Define Sort Rules
In this step, you define sort rules. With the help of sort rules, you define according to
which criteria, that is using which characteristics batches are to be sorted.
As a rule, all characteristics (this applies to standard characteristics as well as to user-
defined characteristics) you want to use for selection must also be contained in the
batch class. Characteristics LOBM_MENGE and LOBM_LGORT are an exception. They
can be used for selection but not for classification.

Procedure
1. Click on IMG Node as above
2. On the main screen, Select create sort sequence
3. Provide sort sequence name as mentioned above
4. The above screen will appear once clicked on the Characteristics tab
5. Provide the name of the characteristic which has been created in CT04 transaction
and tick the check box of Ascending
8.0 Materials Management
8.1 Define Purchasing Value Keys
T.Code SPRO
IMG  Materials Management  Purchasing  Material Master 
Path
Define Purchasing Value Keys
A key defining the valid reminder days and tolerance limits applicable to this material
for the purchasing department.
8.2 Check Inco Terms
T.Code SPRO
IMG  Materials Management  Purchasing  Vendor Master 
Path
Check Incoterms
The following Info Terms have been created

S No Inco Terms Description (Max 30 Char)
1 CAS Cost & Insurance
2 CFR Cost and Freight
3 CIF Costs, Insurance & Freight
Carriage and Insurance Paid
4 CIP
To
5 CPT Carriage Paid To
6 DAF Delivered at Frontier
7 DAP Delivered at Place
8 DDP Delivered Duty Paid
9 DDU Delivered Duty Unpaid
Delivered Ex-Quay (Duty
10 DEQ
Paid)
11 DES Delivered Ex-Ship
12 EXW Ex-Works
13 FAS Free Alongside Ship
14 FCA Free Carrier
15 FED Federal Express
16 FOB Free on Board
17 FOR Free on Road
8.3 Create Purchasing Groups
T.Code SPRO
IMG  Materials Management  Purchasing  Create Purchasing
Path
Groups
Purchasing group can be an individual or a group of individuals responsible for all the
procurement activities in an organization
S No Purchase Group Purchase Group Description

1 100 IMG (D) – LOKESH MACHINE

CLSS (D) – LOKESH
2 101
MACHINE
3 102 DIA (D) – LOKESH MACHINE
4 103 OPH (D) – LOKESH MACHINE
5 104 DEV (D) – LOKESH MACHINE
Corporate – LOKESH
6 105
MACHINE
7 106 TMTPL Reagent
8 107 MFG – LOKESH MACHINE
9 108 R & D – LOKESH MACHINE
10 110 IMG (S) – LOKESH MACHINE
CLSS (S) – LOKESH
11 111
MACHINE
12 112 DIA (S) – LOKESH MACHINE
OPH (S) – LOKESH
13 113
MACHINE
DEV (S) – LOKESH
14 114
MACHINE
Added Purchase Group
S No Purchase Group Purchase Group Description

1 106 Reagent Purchase
2 115 NBS and POC purchase
3 116 IVD R&D Purchase
Procedure
2. Choose new entries.
3. Make the following entries:
Purchasing Description of Tel.NO. Fax Telephone Extn. E-mail

Group Purchasing Pur.Grp Number Address:
group

8.4 Processing Time
T.Code SPRO
IMG  Materials Management  Purchasing  Purchase
Path
Requisition  Processing Time
Plant-specific purchasing department processing time defines :
 Processing time is the time required by the buyer to convert a requisition into a
purchase order.
 Processing time is taken into account during the scheduling process for externally
procured materials within the framework of materials planning and control.
8.5 Release Procedure of purchase requisition – Edit Characteristics
T.Code SPRO
Path Requisition  Release Procedure  Procedure with Classification 
Edit Characteristics
In this step, you create characteristics for a release procedure with classification.
Classification characteristics constitute the criteria for a release condition.
If the criteria of a release condition are satisfied, the associated release strategy is
assigned to the purchase requisition.

Procedure
2. Give characteristics name which you want to create as

mentioned above
3. In additional data tab, provide the table name and purchase

group field in field name
8.6 Release Procedure of purchase requisition – Edit Classes
T.Code SPRO
Edit Classes
In this step, you create classes for a release procedure with classification.

In a class, you group the characteristics that are to constitute a release condition for a
release strategy. In the step “Set up Procedure with Classification", you assign this
class to the release procedure.
Activities
1. Create a class of class type 032. You have a free choice of names for the new class
(e.g. REL_PREQ for the release of purchase requisitions).
2. Assign a description for the new class on the tab page Basic data.
3. You can view an error message if different characteristics with identical values have
been assigned to a class. To do so, select the Check with error message indicator in
the area Same classification.
4. If appropriate, maintain search terms for your class on the tab page Key words.
5. Assign your characteristics to the class on the tab page Characteristics.
8.7 Release Procedure of Purchase Requisition – Set Up Procedure with

Classification

T.Code SPRO
Set Up Procedure with Classification
In this step, you set up the release procedure with classification. You can also link the
release procedure to workflow. (Note that in this context "releasing" means
"approving", or giving the "green light" to a document.)
Requirements
In the case of a release procedure linked to workflow, you must have previously
created in the organizational plan the user names, positions, jobs, etc. that you here
assign to the release code, and must have linked them to the relevant standard tasks
in task-specific Customizing (Basis -> Business Management -> Business Workflow ->
Perform Task-Specific Customizing).
You must assign the authorization M_EINK_FRG to the persons who are to be
involved in this release procedure (Authorization Management -> Create Authorization
Profiles and Assign to Users).
Activities
Here you specify the following:
 Release group
 Release codes
 Release indicators
 Release strategy
Release Groups and Release Codes

Release Indicator and Release Strategies

8.8
Define Screen Layout at Document Level
T.Code SPRO
Path
Requisition  Define Screen Layout at Document Level
The purpose of this activity is to determine the allowed screen layout for the different
document types.
The following new field selections have been created by copying the SAP standard
field selection and it will be attached against purchasing document types
Procedure

2. Choose New entries
3. Make the following entries
S No Field Selection Description
8.9 Define Number Ranges for Purchasing Documents
T.Code SPRO
IMG  Materials Management  Purchasing  Purchase Order 
Path
Define Number ranges
Number Ranges for purchasing documents are defined.
Procedure

2. Select Intervals for maintaining the number range intervals
3. On the following screen, make the following entries by selecting
4. Settings saved.

8.10 Define Document Types for Purchase order
T.Code SPRO
Path
Define Document Types
The purpose of this activity is to configure purchase order types. The new documents
were created for business requirements.
Number range assignment to be maintained for each document.
Procedure
2. Select the row with Order type NB for external procurement and UB for Stock
transfers
3. Choose ‘Copy as’.
4. On the above screen, make changes if necessary.
8.11 Define Screen Layout at Document Level

T.Code SPRO
Path
Define Screen Layout at Document Level
The purpose of this activity is to determine the allowed screen layout for each filed
selection key.
The following changes were made for the following field selection group
i) Tax code and Validity end has been made as mandatory for the following
document types
ZCOST, ZFOC, ZHSS, ZNBF, ZRET, ZUBF, ZSERVICE and ZSUBCONT
ii) Account Assignment Category has been made as mandatory for following
document types
ZCOST, ZHSS and ZSERVICE
iii) Item category has been made as mandatory for following document types
ZHSS, ZSERVICE and ZSUBCONT

8.12 Item Texts Purchase Order
T.Code SPRO
Path
Texts for Purchase Order  Define Text Types for Item Texts
The following text has been added by copying the SAP standard
Contact Person
8.13 Copying Rules for Item Texts Purchase Order
T.Code SPRO
Path
Texts for Purchase Order  Define copying rules for Item texts

8.14 Release Procedure for Purchase Orders – Edit Characteristics for
Company Code, Purchase Order Document Type, PO Net Value1, PO Net
Value2 and Purchase Group
T.Code SPRO
Path
Release Procedure for Purchase Orders  Edit Characteristics
In this step, you create characteristics for a release procedure for purchase orders
(POs).
Classification characteristics are the criteria for a release condition. If the criteria of a
release condition are satisfied, the associated release strategy is assigned to the
purchasing document (e.g. purchase order or RFQ).
Procedure
2. Click on create icon for company code, PO document type, PO Net Value 1,
PO Net Value 2 and purchase group
3. On the following screen, make the following entries as given below

8.15 Release Procedure for Purchase Orders – Edit Class
T.Code SPRO
Path
Release Procedure for Purchase Orders  Edit Class
In this step, you create classes for a release procedure for purchase orders (POs).
You use a class to group together characteristics that are to constitute a release
condition for a release strategy. In the step “Define Release Procedure for Purchase
Orders" you assign this class to the release strategy.
Procedure
2. Click on create icon for PO release at header level.

3. On the following screen, make the following entries as given
4. Create a class with the class type 032. You have a free choice of names for the
new class (e.g. REL_RFQ for the release of RFQs).
5. Assign a name for the new class on the tab page basic data.
6. You can view an error message if different characteristics with identical values
have been assigned to a class. To be able to do so, select the check with error
message indicator in the same classification area.
7. If appropriate, select terms to be used as search criteria in searches for your
class on the keywords tab page.
8. Assign your characteristics to the class via the tab page characteristics.
9. Settings saved
8.16 Setup Stock Transport order – Define Shipping Data for Plants
The purpose of this activity is to assign the Customer, Sales organization and
Distribution channel for stock transport orders.
T.Code SPRO
Path
Set Up Stock transport order  Define Shipping Data for Plants

Create each Plant as Customer and assign in this node. Create Plant Code = Customer
Code for Distribution Channel – 01 (Stock Transfer)
Sales Distribution
Plant Customer Division
Organization Channel
1001 1001 1000 01 00
1002 1002 1000 01 00
1003 1003 1000 01 00
1004 1004 1000 01 00
1005 1005 1000 01 00
1006 1006 1000 01 00
1007 1007 1000 01 00
1008 1008 1000 01 00
1009 1009 1000 01 00

Procedure
2. Create the plant with reference to the SAP standard plant.
3. Specify the Customer, Sales organization and the distribution channel in the
details screen.
4. Settings saved.
8.17 Setup Stock Transport order – Assign Delivery Type & Checking rule
T.Code SPRO
Path Set Up Stock transport order  Assign Delivery Type & Checking
Rule
If an SD delivery is to be created in the case of a PO with a certain combination of

supplying plant and document, specify which delivery type is to be used. The delivery
type in Sales and Distribution (SD) determines how a delivery is handled. In the
standard system, the delivery type 'NL' is used for stock transfers without a billing
document.

8.18 Define Document Types for Contract
T.Code SPRO
IMG  Materials Management  Purchasing  Contract  Define
Path
Document Types
The purpose of this activity is to configure Contract. The new documents were created
for business requirements.
Procedure
2. Select the row with Order type “MK” for quantity Contract and “WK” for value
Contract
3. Choose ‘Copy as’.
8.19 Item Texts Contract
T.Code SPRO
IMG  Materials Management  Purchasing  Contract  Texts
Path
for Contract  Define Text Types for Item Texts

8.20 Define Document Types for Scheduling Agreement
T.Code SPRO
IMG  Materials Management  Purchasing  Scheduling
Path
Agreement  Define Document Types
The purpose of this activity is to configure Scheduling Agreement. The standard

documents were followed for business requirements.
Procedure
2. Select the row with Order type “LP”
3. Choose ‘Copy as’
8.21 Item Texts Scheduling Agreement
T.Code SPRO
Path Agreement  Texts for Scheduling Agreement  Define Text
Types for Item Texts

8.22 Define Screen Layout at Document Level
T.Code SPRO
Path
Agreement  Define Screen Layout at Document Level
The purpose of this activity is to determine the allowed screen layout for the field
selection key.
8.23 Conditions - Define Condition Types
T.Code SPRO
IMG  Materials Management  Purchasing  Conditions  Define
Path
Price Determination Process  Define Condition type
Condition types are used to represent pricing elements such as prices, discounts,
surcharges, taxes, or delivery costs in the SAP System. Conditions are used to enter
prices in purchase documents. It is possible to specify if the condition type is a basic
price or delivery costs and if a condition type is quantity dependent, fixed price etc.
Following New Pricing condition types has been created:
Cond.Typ Cond. Cal. Cond.

e Name Class Type Cat
R000 Discount % on Gross A A
R001 Discount/Quantity A C
R002 Disc.Value on GP A B

P&F1 Before ED P&F (%) A A B
P&F2 Before ED P&F (Amt) A B B
P&F3 Before ED P&F (Qty) A C B
FRA2 Freight %-Before ED A A B
FRB2 Frt Value-Before ED A B B
JINS Insurance % A A
JINV Insurance Value A B
FRA1 Freight %-After ED A A B
FRB1 Frt Value-After ED A B B
ZHAN Handling Charges A B B
ZMIS Miscellaneous Charges A B B
JOCM IN Octroi A A B
JOCN IN Octroi Value A B B
FRC1 Import Freight % A A B
FRC4 Import Freight Value A B B
ZCVD CVD-Invent A A B
ZECS Edu-cess-CVD-Invent A A B
ZSEC Highr-ECess-CVD-Inve A A B
ZADC Additional Duty-Inven A A B
FRA3 Local Freight % A A B
FRC2 Local Freight(Value) A B B
ZSU1 Discounted Price A A
ZSU2 Discounted Price+P&F A A
ZBXX Assl Value FOC B B H
ZFCD Customs Duty : FOC A A
CustomDuty ECESS
ZFEC FOC A A
ZFSC Cus Duty S ECESS FOC A A
ZBX1 Stat.Val. Actual FOB A B

ZIN1 Insurance / Qty A C B
ZIN2 Insurance Value Item A A B
ZIN3 Insurance % A A B
ZLC1 LC Charges % A A B
ZLC2 LC Charges – Value A B B
ZCL2 Clg.ChargeValue Item A B B
ZCLA Clg.ChargeHeader A B B
ZFRA Freight Charge Header A B B
ZINA Insurance Header A B B
ZFLA Local Freight Header A B B
Note: Those conditions that have been defined as delivery cost can be used to create
liability to another vendor from one purchase order. The conditions defined as delivery
costs allows the user to enter a different vendor (in the condition type) than the one

defined for the document. This in turn allows the user to post an invoice (as planned
delivery cost) to the vendor in the condition type.
Procedure
2. Decide what the condition type should do in pricing table (Pricing procedure)
(i.e.) do you want it to add or subtract, if so is it from the gross price or net
price, is it a tax or a delivery cost, surcharge or discount?
3. Select any one of the standard condition types and use the copy function. Give
a new code for the condition type.
4. If incase there is a need for condition record (in case of time dependant
conditions) for that condition type, then copy an existing access sequence with
a suitable condition table and assign the access sequence to the condition type.
5. Settings saved.
8.24 Conditions - Define Calculation Schema
T.Code SPRO
Path
Price Determination Process  Define Calculation Schema
The pricing procedure defines the conditions permitted for a document and the
sequence in which the system takes these conditions into account during pricing. In
the MM area, a calculation schema - a framework of steps used to calculate or
determine something - is used among other things to calculate costs, prices and
taxes. Calculation schema (pricing procedure), specifies which condition types are to
be taken into account in which sequence.
The following calculation schema’s have been defined for LOKESH MACHINE
1. THCL Domestic Schema

2. THCL Import Schema
3. THCL Import FOC
4. Stock transfer Schema (Copy of SAP
Standard RM2000 procedure)
5.
1. Domestic Schema

2. Import Schema

3. Import Free of Cost Schema

4. Stock transfer Schema
Procedure
1. To Carry out the activity, execute the above IMG node
2. Create new calculation schemas by copying similar existing ones and changing
them.

3. Enter a key (length max. six characters) for the schema you wish to create, and a
descriptive text.
4. For each schema, specify the condition types in the order of their usage, and
maintain the relevant data.
5. The system uses steps and counter to read which conditions apply for a particular
calculation.
6. The columns ‘from and to’ define the level at which the conditions should be
totaled.
7. A condition type should be made manual if it should not appear by default at the
time of order creation.
8. Use the accrual keys if you want the value for the condition type are to be posted
to a different clearing account, at the same time as the value gets inventoried
during goods receipt.
9. To enable the system to determine accounts for condition types, it uses

‘Transaction / Event keys’, which are then assigned in the accruals columns.
10. If the interim total 'S' is not set at the final total level, the PO values cannot be
updated in the Purchasing Information System (PURCHIS).
8.25 Conditions - Define Schema Group
T.Code SPRO
Path
Price Determination Process  Define Schema Group
Purpose of this activity is to group together vendors for whom the same calculation
schema is valid. These schema groups are then assigned to master records of vendors
for whom the schema groups in the relevant. These allow you to group together
purchasing organizations that use the same calculation schema.
One Schema Group for Domestic and One Schema Group for Import has been created

Procedure
Click on the Node and select Schema Group : Vendor
Click on the Node and select Schema Group : Purchasing Organization
Click on the Node and select Assignment of Schema Group to Purchasing

Organization.
8.26 Conditions - Define Schema Determination
T.Code SPRO
Path
Price Determination Process  Define Schema Determination
The purpose of this activity is to assign purchasing transactions and processes to a

calculation schema; that is, you specify the cases in which a certain schema is used.

For standard purchase orders: Depending on the schema group of the vendor and the
purchasing organization.
For stock transport orders: Depending on the supplying plant, the document type and
the schema group of the purchasing organization
Click on the Node and select Determine Calculation Schema for Standard Purchase
orders
Click on the Node and select Determine Schema for Stock transport Orders
Procedure

2. Select ‘Determine calculation schema for standard purchase orders’.
3. Give a combination of ‘schema group vendor and calculation schema’ or ‘Schema

group purchasing organization, schema group vendor and calculation schema’.
4. This depends on the need to isolate a particular calculation schema for a group of
vendors or for a purchasing organization.
5. Repeat the same for determination of schema for stock transport order, with
reference to the purchasing document type, supplying plant or purchasing
organization.
8.27 Define Transaction / Event Keys
T.Code SPRO
Path
Price Determination Process  Define Transaction / Event Key
The purpose of this activity is to define transaction/event keys for condition types
involving accruals. To enable the system to find the relevant account for such
conditions as delivery costs or miscellaneous provisions, for example, a
transaction/event (internal processing) key should be assigned to each condition type
in the step Define Calculation Schema. You must specify the transaction / event key in
the field 'AccKy'
The following account key has been created
i) FR5 - Hand / Misc Charges

ii) FR6 - Insurance Clearing
Procedure
2. Select any one of the standard account key’s and use the copy function. Give a
new code and description for the account key.
3. Settings saved.

8.28 Maintain Account Assignment Categories
T.Code SPRO
IMG  Materials Management  Purchasing  Account Assignment
Path
 Maintain Account Assignment Categories
Account assignment category indicates whether an item is to be assigned to an

auxiliary account (such as a cost center). The account assignment category
determines which account assignment details are required for the item (for example,
cost center or account number).
SAP Standard Account Assignment Categories have been used except “Y”
which is High Sea Sales
8.29 Version Management - Purchase Requisitions
T.Code SPRO
IMG  Materials Management  Purchasing  Version
Path management  Setup Version Management for Purchase
requistions
In this step, set up the Version Management facility for purchase requisitions.
8.30 Version Management - Purchasing Documents
T.Code SPRO
IMG  Materials Management  Purchasing  Version
Path management  Setup Version Management for External
purchasing Documents
In this step, set up the version management facility for external purchasing
documents. For a combination of purchasing organization, document category, and

document type, Activate version management. If version management is active,
changes to a purchasing document are managed in versions.
Purchasing Organization using copy function
Purchase Order

Similarly maintain for all Purchasing Organization and Purchase Order Document types
using copy function
8.31 Messages – Define texts for Purchase Orders
T.Code SPRO
IMG  Materials Management  Purchasing  Messages
Path
 Texts for Messages  Define Texts for Pruchase Orders
In this step, you define the texts for purchase order messages.
LOKESH MACHINE Configuration
8.32 Messages – Define texts for Contracts

T.Code SPRO
Path
 Texts for Messages  Define Texts for Contracts
SAP Standard Settings.
8.33 Messages – Define texts for Scheduling Agreement
T.Code SPRO
Path
 Texts for Messages  Define Texts for Scheduling Agreement
8.34 Messages – Define change texts
T.Code SPRO
Path
 Texts for Messages  Define Change Texts
The purpose of this activity is to define whether and in which field is relevant to
creation of new versions and printouts of changes in a purchasing document.
8.35 Messages – Output Control – Message Types RFQ
T.Code SPRO
Path  Output Control  Message Types  Define Message Types for
Request for Quotation

In this step, you define the message types for RFQs.
In the SAP System, the message type denotes different kinds of message (in
Purchasing, mainly communications sent to vendors, such as purchase orders, order
acknowledgments, and expediters).
The following New message type has been created which is copy of SAP standard NEU
Copy NEU and Maintain for ZNEU
Click on Node Fine-Tuned Control: Request for Quotation
8.36 Messages – Output Control – Message Types PO
T.Code SPRO
Purchase Orders

In the SAP System, the message type denotes different kinds of message in
acknowledgments, and expediters.
For ZNEU Message type, attach the Program & Form.
Click on Node Fine-Tuned Control: Purchase Order

8.37 Messages – Output Control – Message Types Outline Agreements
T.Code SPRO
Outline Agreement
Click on Node Fine-Tuned Control: Outline Purchase Agreement

8.38 Messages – Output Control – Message Types Delivery Schedules
T.Code SPRO
Scheduling Agreement Delivery Schedules
Click on Node Fine-Tuned Control: Forecast Delivery Schedule/Expediter

8.39 Messages – Output Control – Field Relevant to Printout of Changes
T.Code SPRO
Path
 Field Relevant to Printout of Changes
The purpose of this activity is to define whether and in which field is relevant to
creation of new versions and printouts of changes in a purchasing document.
8.40 Partner Determination – Partner Roles per Account Group

In this step, specify for each account group of the vendor which roles the vendor may
assume.
T.Code SPRO
IMG  Materials Management  Purchasing  Partner
Path Determination  Partner Roles  Define Permissible Partner Roles
Per account Group
The following Partner Roles has been created
OA, VN, PI, GS
Procedure
2. Select “Define Partner Roles’
3. Click New Entries and give above roles or copy any standard
role and give the respective roles.
4. Setting Saved

8.41 Partner Determination – Partner Settings in Vendor Master
T.Code SPRO
Path Determination  Partner Settings in Vendor Master Record 
Assign Partner Scehma to Account Group
In this step, specify for each account group of the vendor which roles the vendor may
assume.
8.42 Partner Determination – Partner Settings in Pur. Documents
In this step, you can assign the partner schemas to the various types of purchasing
document.
T.Code SPRO
Path Determination  Partner Settings in Purchasing Documents 
Assign Partner Schema to Document Types

8.43 Authorization Management – Define Function Authorization for buyers
In this step, you can define certain purchasing authorizations for one or more users
using Parameter ID EFB.
T.Code SPRO
IMG  Materials Management  Purchasing  Authorization
Path
management  Define function authorization for Buyers
8.44 External Service Management
T.Code SPRO

IMG  Materials Management  External Service Management 
Path Messages  Output Control for Service Entry Sheet  Define
Message Types for Service Entry Sheet
In this step, you define the message types for service entry sheets.
In the SAP System, the message type denotes different kinds of message (in
acknowledgments, and expediters).
Click on Node Fine-Tuned Control: Service Entry Sheet
8.45 External Service Management
T.Code SPRO
Path IMG  Materials Management  External Service Management 

Messages  Output Control for Service Entry Sheet  For Service
Entry Sheet
In this step, you define the valid partner roles for the message types.
If, when creating message records, you then enter a partner role that is not defined
as a valid one, the system will issue a warning.
Actions
Specify which partner roles are allowed for the message type.
8.46 Define Price Control for Material Types
T.Code SPRO
IMG  Materials Management  Valuation and Account Assignment 
Path
Define Price Control for Material Types
SAP R/3 provides for two types of price control:

V – Moving Average
S – Standard Price
For each material in the accounting view the price control has to be specified. It is
possible to set such that a default price control is proposed / stipulated by the system.
The following changes have been made to standard SAP settings :
Material Price
Description
type control

FHMI Tools V
ERSA Spare Parts V
FERT Finished Product S
8.47 Activate Split Valuation
T.Code SPRO
IMG  Materials Management  Valuation and Account
Path
Assignment Split valuation  Activate Split Valuation
In this step, configure whether split valuation is allowed. If you generally allow split
valuation, this does not mean that it is a must to valuate each material on this basis.
Decision can be taken whether to do so or not for a particular material when creating
the material master record.
8.48 Configure Split Valuation
T.Code SPRO
Path
Assignment Split valuation  Configure Split Valuation
Split valuation can distinguish between partial stocks of a material according to

certain criteria and valuate them separately.
The material stock is divided according to valuation category and valuation type:
The valuation category determines how the partial stocks are divided, that is,
according to which criteria.
The valuation type describes the characteristics of the individual stocks.

8.49 Account Determination – Define Valuation Control
T.Code SPRO
Path Assignment  Account determination  Account determination
without wizard  Define Valuation Control
For account determination, group together valuation areas by activating the valuation
grouping code.
8.50 Account Determination – Group together Valuation areas
T.Code SPRO

without wizard  Group together Valuation areas
For account determination, group together valuation areas by activating the valuation
grouping code.

8.51 Account Determination – Define Valuation Classes
T.Code SPRO
without wizard  Define Valuation classes
Valuation classes groups together G/L accounts to which postings can be made.
Various valuation classes can be defined. Each material type is allocated to a valuation
class in the material master record. The valuation class is a group of materials with
the same account determination.
The link between the valuation classes and the material types is set up via the
account category reference.
Define Account Category Reference :

Define Valuation Classes :

Define Material Type & Account Category Reference assignment
8.52 Account Determination – Configure Automatic Postings
T.Code SPRO
without wizard  Configure Automatic Postings
In SAP R/3 postings with respect to Inventory management and Invoice verification
are done automatically by the system using the automatic postings. Each movement
type is linked to an account key which in turn through the valuation grouping code
and the valuation class determines the account to which the postings are to be made.
Expenditure/income from stock transfers (AUM)

This transaction is used in Inventory Management when stock is transferred between
plants or transferred from one movement type to another (with split valuation), if the
price at the receiving point differs from the price at the delivering point.
Expenditure/income is posted at the receiving point.
Stock change (BSV)

Stock changes are posted in Inventory Management when goods are received for
subcontract orders or they are subsequently charged. If the account assigned is
defined as a cost element, you must enter an assignment in the automatic account
assignment table in the Customizing system of Controlling before you can post GRs
for Subcontract orders.
Stock posting (BSX)

This internal processing key is used for all postings to stock accounts.
Examples of postings to stock accounts can be found
- In Inventory Management for goods receipts for your own stock or goods issues
from your own stock
- In Invoice Verification when price differences occur in invoices received for
materials with moving average price and sufficient stock coverage
- In Order Settlement when the order is assigned to a material with moving average
price and the actual costs settled differ from the costs posted at goods receipt
Since this transaction is dependent on the valuation class, you can manage materials
with different valuation classes on different stock accounts.
Caution
Please ensure that
A stock account is used for no transaction other than BSX
The account cannot be posted manually
Account assignments are not changed in your production system without first posting
all stocks from the account
Differences therefore occur between the total stock value of the material master
records and the balance on the stock account.
Small differences in Materials Management (DIF)

This transaction is used in Invoice Verification when you define a tolerance limit for
small differences and the balance of the invoice does not exceed the tolerance.

These transactions are used for posting delivery costs when goods and invoices are
received for purchase orders which transaction is used for which delivery cost depends
on the condition type defined in the purchase order.
You can also enter your own transactions for delivery costs in condition types.
Externally performed service (FRL)

This transaction is used for goods receipts and invoice receipts for purchase orders for
subcontracting work.
If the account assigned is defined as a cost element, you must enter an assignment in
the automatic account assignment table in the Customizing system of Controlling
before you can post goods receipts for subcontract orders.
Offsetting entry to the stock posting (GBB)

The offsetting entry to the stock posting is used in Inventory Management and
depends on the accounting grouping assigned to the movement type in question. The
following account groupings are defined in the standard system:
- AUA: for order settlement
- AUF: for GRs for orders (without account assignment)
- BSA: for initial entry of stock balances
- INV: for expenditure/income from inventory differences
- IOS: for consumption of High sea sales
- VAX: for goods issues for sales orders with no assignment object (the account is not
a cost element)
- VAY: for goods issues for sales orders with account assignment object (the account
is a cost element)
- VBO: for consumption from stock provided to vendor
- VBR: for internal goods issues (e.g. for cost center)
- VNG: for scrapping/destruction
- VQP: for sampling without account assignment
- VQY: for sampling with account assignment
- ZOF: for goods issues with no production order reference (movement types 521 and
531)
Exchange rate rounding differences for open items (KDM)

Exchange rate rounding differences for open items occur when an invoice for a PO is
posted with a different exchange rate than the GR and the material cannot be
credited/debited to because it is subject to standard price control or there is
insufficient stock coverage.
Price differences (PRD)

Price differences occur for materials subject to standard price control for all
movements and invoices valuated at a price other than the standard price.
Examples: Goods receipts for purchase orders when the purchase order price differs
from the standard price; goods issues
When an amount is entered manually; invoices when the price invoiced differs from
both the purchase order price and standard price. Price differences can also occur for
invoices for materials with a moving average price when there is insufficient stock
coverage for the quantity invoiced.
Price Differences from Lower Levels (PRV)

In multi-level periodic settlement in the material ledger, some of the price differences
posted during the period in respect of the raw materials, semi finished products, and
cost centers performing the activity used in a semi finished or finished product, are
transfer posted to that semi finished or finished product.
Price differences for the material ledger (PRY)

If the material ledger is active, goods receipts for purchase orders are posted at the
material price, invoices at the price in the invoice.
When the material ledger is closed, the price differences which then occur are posted
with the transaction PRY.
Expenditure/income from revaluation (UMB)

This processing key is used both in Inventory Management and in Invoice Verification
when the standard price has changed and a goods movement or an invoice is posted
to the previous period at the previous price.
Unplanned delivery costs (UPF)

Unplanned delivery costs are delivery costs (incidental procurement costs) that were
not planned in a purchase order (e.g. freight, customs duty). In the SAP posting
transaction in Logistics Invoice Verification, instead of distributing these unplanned
delivery costs among all invoice items as hitherto, you have the option of posting
them to a special account.
GR/IR clearing (WRX)

Postings to the GR/IR clearing account occur when goods and invoices are received.
For more information on the GR/IR clearing account, please refer to the MM online
guide on material valuation.
Caution
The balance indicator must only be set in local currency for the GR/IR clearing account
so that open items are cleared.
Chart of Transactio Valuation Acct Valuation Credit G/L Debit G/L

Accounts n Grouping Code modification Class Account Account
YAIN AUM 400017 400017
YAIN BDS 800007 800007
YAIN BIK 800007 800007
YAIN BIL X 100021 100021
YAIN BSP 800007 800007
YAIN BSV 0001 3000 400009 400009
YAIN BSV 0001 3030 400014 400014
YAIN BSV 0001 3040 400010 400010
YAIN BSV 0001 3050 400012 400012
YAIN BSV 0001 3100 400013 400013
YAIN BSV 0001 5100 400011 400011
YAIN BSV 0001 7900 400029 400029
YAIN BSV 0001 7920 400030 400030
YAIN BSX 0001 3000 250000 250000
YAIN BSX 0001 3030 250005 250005
YAIN BSX 0001 3040 250010 250010
YAIN BSX 0001 3041 250010 250010
YAIN BSX 0001 3050 250006 250006
YAIN BSX 0001 3100 250004 250004
YAIN BSX 0001 5100 250007 250007
YAIN BSX 0001 7900 250002 250002
YAIN BSX 0001 7910 250009 250009
YAIN BSX 0001 7920 250001 250001
YAIN CO1 390101 390101
YAIN DIF 700036 700036

YAIN FR1 150099 150099
YAIN FR2 150011 150011
YAIN FR3 150010 150010
YAIN FR4 150070 150070
YAIN FR5 700010 700010
YAIN FR6 150100 150100
YAIN FRL 404911 404911
YAIN GBB 0001 AUA 7900 400029 400029
YAIN GBB 0001 AUA 7920 400030 400030
YAIN GBB 0001 AUF 7900 400029 400029
YAIN GBB 0001 AUF 7920 400030 400030
YAIN GBB 0001 BSA 3000 L1000001 L1000001
YAIN GBB 0001 BSA 3030 L1000001 L1000001
YAIN GBB 0001 BSA 3040 L1000001 L1000001
YAIN GBB 0001 BSA 3041 L1000001 L1000001
YAIN GBB 0001 BSA 3050 L1000001 L1000001
YAIN GBB 0001 BSA 3100 L1000002 L1000002
YAIN GBB 0001 BSA 5100 L1000001 L1000001
YAIN GBB 0001 BSA 7900 L1000002 L1000002
YAIN GBB 0001 BSA 7920 L1000002 L1000002
YAIN GBB 0001 INV 3000 400032 400032
YAIN GBB 0001 INV 3030 400032 400032
YAIN GBB 0001 INV 3040 400032 400032
YAIN GBB 0001 INV 3041 400039 400039
YAIN GBB 0001 INV 3050 400032 400032
YAIN GBB 0001 INV 3100 400032 400032
YAIN GBB 0001 INV 5100 400032 400032
YAIN GBB 0001 INV 7900 400032 400032
YAIN GBB 0001 INV 7920 400032 400032
YAIN GBB 0001 IOS 3000 700099 700099
YAIN GBB 0001 IOS 3030 700099 700099
YAIN GBB 0001 IOS 3040 700099 700099
YAIN GBB 0001 IOS 3050 700099 700099
YAIN GBB 0001 IOS 3100 700099 700099
YAIN GBB 0001 IOS 5100 700099 700099
YAIN GBB 0001 IOS 7900 700099 700099
YAIN GBB 0001 IOS 7920 700099 700099
YAIN GBB 0001 VAX 3000 400008 400008
YAIN GBB 0001 VAX 3030 400008 400008
YAIN GBB 0001 VAX 3040 400008 400008
YAIN GBB 0001 VAX 3041 400039 400039
YAIN GBB 0001 VAX 3050 400008 400008
YAIN GBB 0001 VAX 3100 400008 400008
YAIN GBB 0001 VAX 5100 400008 400008
YAIN GBB 0001 VAX 7900 400007 400007
YAIN GBB 0001 VAX 7910 400008 400008
YAIN GBB 0001 VAX 7920 400008 400008
YAIN GBB 0001 VAY 3000 400009 400009
YAIN GBB 0001 VAY 3030 400014 400014
YAIN GBB 0001 VAY 3040 400010 400010
YAIN GBB 0001 VAY 3041 400039 400039
YAIN GBB 0001 VAY 3050 400012 400012
YAIN GBB 0001 VAY 3100 400013 400013

YAIN GBB 0001 VAY 5100 400011 400011
YAIN GBB 0001 VAY 7900 400007 400007
YAIN GBB 0001 VAY 7920 400008 400008
YAIN GBB 0001 VBO 3000 400009 400009
YAIN GBB 0001 VBO 3030 400014 400014
YAIN GBB 0001 VBO 3040 400010 400010
YAIN GBB 0001 VBO 3050 400012 400012
YAIN GBB 0001 VBO 3100 400013 400013
YAIN GBB 0001 VBO 5100 400011 400011
YAIN GBB 0001 VBO 7900 400015 400015
YAIN GBB 0001 VBR 3000 400009 400009
YAIN GBB 0001 VBR 3030 400014 400014
YAIN GBB 0001 VBR 3040 400010 400010
YAIN GBB 0001 VBR 3041 400039 400039
YAIN GBB 0001 VBR 3050 400012 400012
YAIN GBB 0001 VBR 3100 400013 400013
YAIN GBB 0001 VBR 3200 400021 400021
YAIN GBB 0001 VBR 5100 400011 400011
YAIN GBB 0001 VBR 7900 400015 400015
YAIN GBB 0001 VBR 7910 400031 400031
YAIN GBB 0001 VBR 7920 400016 400016
YAIN GBB 0001 VKA 3000 400009 400009
YAIN GBB 0001 VKA 3030 400014 400014
YAIN GBB 0001 VKA 3040 400010 400010
YAIN GBB 0001 VKA 3050 400012 400012
YAIN GBB 0001 VKA 3100 400013 400013
YAIN GBB 0001 VKA 5100 400011 400011
YAIN GBB 0001 VKA 7900 400015 400015
YAIN GBB 0001 VKA 7920 400016 400016
YAIN GBB 0001 VNG 3000 400031 400031
YAIN GBB 0001 VNG 3030 400031 400031
YAIN GBB 0001 VNG 3040 400031 400031
YAIN GBB 0001 VNG 3050 400031 400031
YAIN GBB 0001 VNG 3100 400031 400031
YAIN GBB 0001 VNG 5100 400031 400031
YAIN GBB 0001 VNG 7900 400031 400031
YAIN GBB 0001 VNG 7920 400031 400031
YAIN GBB 0001 ZOB 3000 400009 400009
YAIN GBB 0001 ZOB 3030 400014 400014
YAIN GBB 0001 ZOB 3040 400010 400010
YAIN GBB 0001 ZOB 3041 400039 400039
YAIN GBB 0001 ZOB 3050 400012 400012
YAIN GBB 0001 ZOB 3100 400013 400013
YAIN GBB 0001 ZOB 5100 400011 400011
YAIN GBB 0001 ZOB 7900 400015 400015
YAIN GBB 0001 ZOB 7920 400016 400016
YAIN GBB 0001 ZOF 3000 400009 400009
YAIN GBB 0001 ZOF 3041 400039 400039
YAIN GBB 0001 ZOF 3050 400012 400012
YAIN GBB 0001 ZOF 7900 400007 400007
YAIN GBB 0001 ZOF 7920 400008 400008
YAIN KDM 700029 340007
YAIN KDR 700029 340007

YAIN KDW 700029 340007
YAIN OFF ET ET 290052 290052
YAIN OFF GT GT 290051 290051
YAIN OFF ST ST 290053 290053
YAIN PRD 0001 3000 400026 400026
YAIN PRD 0001 3030 400026 400026
YAIN PRD 0001 3040 400026 400026
YAIN PRD 0001 3041 400026 400026
YAIN PRD 0001 3050 400026 400026
YAIN PRD 0001 3100 400026 400026
YAIN PRD 0001 5100 400026 400026
YAIN PRD 0001 7900 400026 400026
YAIN PRD 0001 7920 400026 400026
YAIN PRD 0001 PRA 7900 400026 400026
YAIN PRD 0001 PRA 7920 400026 400026
YAIN PRD 0001 PRF 7900 400028 400028
YAIN PRD 0001 PRF 7920 400033 400033
YAIN QST 290018 290018
YAIN RDF 700033 700033
YAIN SKE 600005 600005
YAIN UMB 0001 3000 400040 400040
YAIN UMB 0001 3030 400040 400040
YAIN UMB 0001 3040 400040 400040
YAIN UMB 0001 3041 400040 400040
YAIN UMB 0001 3050 400040 400040
YAIN UMB 0001 3100 400042 400042
YAIN UMB 0001 5100 400040 400040
YAIN UMB 0001 7900 400041 400041
YAIN UMB 0001 7920 400042 400042
YAIN WIT ET ET 150049 150049
YAIN WIT GT GT 150048 150048
YAIN WIT ST ST 150050 150050
YAIN WIT W1 W1 150001 150001
YAIN WIT W1 W3 150003 150003
YAIN WIT W2 W2 150002 150002
YAIN WIT W4 W4 150005 150005
YAIN WIT W5 W5 150006 150006
YAIN WIT W6 W6 150007 150007
YAIN WIT W7 W7 150008 150008
YAIN WIT W8 W8 150009 150009
YAIN WIT WA WA 150001 150001
YAIN WIT WA WC 150003 150003
YAIN WIT WB WB 150002 150002
YAIN WIT WD WD 150005 150005
YAIN WIT WE WE 150006 150006
YAIN WIT WF WF 150007 150007
YAIN WIT WG WG 150008 150008
YAIN WIT WH WH 150009 150009
YAIN WRX 140005 140005
YAIN ZDI 700033 700033

8.53 Inventory Management and Physical Inventory : Field Selection for
MIGO
T.Code SPRO
IMG  Materials Management  Inventory management and
Path Physical Inventory  Settings for Enjoy Transactions  Field
Selection for MIGO
In this step, you maintain the settings for field selection for the transaction MIGO -
Header.
Following fields has been mandatory :
8.54 Inventory Management and Physical Inventory : Field Selection per

Movement Type
T.Code SPRO
IMG  Materials Management  Inventory management and Physical
Path Inventory  Settings for Enjoy Transactions  Field Selection per
Movement Type
In this step, you maintain all the settings for field selection by movement type.
Following fields has been mandatory / optional :
MvT Field Entry

Name
102 GRUND Required
104 GRUND Required
106 GRUND Required
105 SGTXT Required
122 GRUND Required
124 GRUND Required
161 GRUND Required
162 GRUND Required
202 GRUND Required
541 EBELN Required
541 GRUND Required
542 EBELN Optional
542 GRUND Required
8.55 Inventory Management and Physical Inventory : Goods Issue /

Transfer Posting – Create Storage Location Automatically
T.Code SPRO
Path Inventory  Goods Issue / Transfer Posting  Create Storage
Location Automatically
In this step, specify whether the automatic creation of storage location data is allowed
for goods issues and transfer postings.
1. Plant : Tick for all Plant Nodes

2. Movement Type : No Tick for any Movement Type
8.56 Inventory Management and Physical Inventory : Goods Receipt –

Create Storage Location Automatically
T.Code SPRO
Path
Inventory  Goods Receipt  Create Storage Location Automatically

for goods receipt.

2. Movement Type : Tick only for 561 Movement Type
8.57 Inventory Management and Physical Inventory : Goods Receipt–Set

Expiration Date Check
T.Code SPRO
Path
Inventory  Goods Receipt  Set Expiration Date Check
In this step, you set the material shelf life expiration date check for goods receipts for
each plant and movement type.

2. Movement Type : Enter Value 1 (Enter & Check) for Movement types 101,
105, 501, 561 and Enter Value 3 (No Checks at Goods Issue) for Movement
types 551, 552, 553, 554, 555 and 556
8.58 Inventory Management and Physical Inventory : Goods Receipt – Set

Tolerance limits
T.Code SPRO
Path
Inventory  Goods Receipt  Set Tolerance Limit
When processing a goods receipt, the system checks each item to determine whether
the goods receipt varies from the purchase order or the material master data.

The different types of variances are defined by tolerance keys. For each tolerance key,
tolerance limits can be set per company code.
8.59 Inventory Management and Physical Inventory : Automatic Postings –

Create Storage Location Automatically
T.Code SPRO
Path Physical Inventory  Automatic Postings  Create Storage Location
Automatically
for automatic goods movement.

2. Movement Type : No Tick for any Movement Type
8.60 Inventory Management and Physical Inventory : Physical inventory –

Allow Freezing of Book Inventory Balance in Storage Location
T.Code SPRO
Path Physical Inventory  Physical inventory  Allow Freezing of Book
Inventory Balance in Storage Location
In this step, you determine whether the book inventory balances of items in a physical
inventory document, which have not yet been counted, can frozen in the storage
location. The frozen inventory balance is recorded in the physical inventory document.
It is relevant to calculating inventory differences.

Define for each individual storage location of the plant whether freezing of book
inventory balances in physical inventory documents is allowed.
Enter each Plant and tick for all the Storage Locations as shown below.
8.61 Inventory Management and Physical Inventory : Movement Types –

Record Reason for Movement type
T.Code SPRO
Path Physical Inventory  Movement Types  Record Reason for
Movement type
In this step, you can carry out the following for each movement type:
Maintain the input status of the Reason field
Store a key that gives a reason for the movement (for example, reason for return
delivery) and a corresponding text.

When you enter a goods movement, you can only enter reasons which have been
defined for the movement type here.
1. Control Reason
For the following Movement Types Reason for Movement field as been made
mandatory
MvT Entry
106 Required
122 Required
124 Required
161 Required
162 Required
202 Required
262 Required
343 Required
344 Required
501 Required
502 Required
541 Required
542 Required
2. Reason for Movemen

8.62 Invoice Verification – Maintain Default Values for Tax Codes
T.Code SPRO
IMG  Materials Management  Logistics Invocie Verification 
Path
Incoming Invoice  Maintain Default Values for Tax Codes
The purpose of this activity is to define which tax codes the SAP system should default
when you enter an incoming invoice.
Tax code ‘V0’, has been made as the default tax code for incoming invoices for
company codes 1000

8.63 Invoice Verification – Configure how Unplanned Delivery Costs are to
be treated
T.Code SPRO
Path Incoming Invoice  Configure how Unplanned Delivery Costs are
to be treated
In this step, you specify how the system posts unplanned delivery costs in Logistics
Invoice Verification.
There are two options:
Unplanned delivery costs are distributed among the individual items in proportion to
the item amounts invoiced so far and the item amounts in the current invoice.
Unplanned delivery costs are posted in a separate line.
2  Separate G/L Line
8.64 Invoice Verification – Set Check for Duplicate Invoices
T.Code SPRO
Path
Incoming Invoice  Set Check for Duplicate Invoices
In this step, you can configure for each company code if the system is to check for
duplicate invoices when you enter invoices.
This check should prevent incoming invoices being accidentally entered and paid more
than once.
You can choose whether to activate or deactivate the check criteria of company code,
reference document number and invoice date for each company code.

A configurable message is displayed when the system finds a duplicate invoice with
the above-mentioned characteristics.
8.65 Invoice Verification – Set Tolerance Limits
T.Code SPRO
Path
Invoice Block  Set Tolerance Limits
In this step, you specify the tolerance limits for each tolerance key for each company
code.
When processing an invoice, the R/3 system checks each item for variances between
the invoice and the purchase order or goods receipt.
The different types of variances are defined in tolerance keys.


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Configuration Document

Indus Novateur softtech Pvt Ltd

Configuration Document Page 2 of 103

This document contains information that is proprietary and

Configuration Document Page 2 of 103

Materials Management : Configuration..........................................................................................7

Configuration Document Page 3 of

Configuration Document Page 4 of

Configuration Document Page 5 of

Configuration Document Page 6 of

Purpose of this document is to provide the Customization / Configuration settings

2.0 Scope of the Document

Materials Management System Document contains the configuration and customizing

3.0 Configuration MM Module

 A new value or a set of values has been added in the system.

Configuration Document Page 7 of

In this section, you define application independent system settings.

4.1 Units of Measurement

LOKESH MACHINE Configuration :

Following new Units of Measurement has been added :

Added Additional UoM Dt. 20.01.2015.

Configuration Document Page 8 of

2. Choose Units of measurement.

4. Give the following details in the relevant fields depending on whether it is a

Unit Commercial Technical Text ISO Decimals Numerator Denominator Decimal

5. Save the settings

5.0 Enterprise Structure

5.1 Define Valuation Area

T.Code SPRO – OX14

LOKESH MACHINE Configuration:

Valuation area has been defined as Plant.

Configuration Document Page 9 of

LOKESH MACHINE Configuration :

Plant Name Factory Calendar

1000 LOKESH MACHINE-MFG, POONAMALLE IN

Configuration Document Page 10 of

2. Choose Define plant.

3. On the following screen, make the following entries:

Field name Description

5.3 Maintain Storage Location

LOKESH MACHINE Configuration :

Configuration Document Page 11 of

Configuration Document Page 12 of

3. On the following screen, make the following entries:

1102 Rejection Stores

1103 Scrap Yard

5.4 Maintain Purchasing Organisation

Purchasing organization is responsible for all purchasing activities (including the

Configuration Document Page 13 of

Purchase Organization Purchase Organization Description

1000 Purch. Org. LOKESH MACHINE

C100 Central P.Org. LOKESH MACHINE

1. To carry out the activity, execute the above IMG Node.

2. Select the New entries

3. And make the following entries:

1000 Purch. Org. LOKESH MACHINE

5.5 Assign Plant to Company Code

LOKESH MACHINE Configuration :

Configuration Document Page 14 of

1. To carry out the activity, execute the above IMG Node.

5.6 Assign Purchasing Organisation to Company Code

Purchasing Organisation is assigned to a company code. Purchasing Organisation can

LOKESH MACHINE Configuration :