SAP S/4 Hana Sourcing and Procurement Transaction Codes

Contributed By
SAMARTH D

GB
Under the Guidance of Mr. PRASHUN SHETTY

In SAP MM some short-cut codes are provided to save time and effort. These are
known as transaction codes. Transaction codes are the short-cut codes that will directly
take us to the screen desired. This will help in eliminating long path that we go through
implementation guide to reach a desired screen. These codes are provided in command
field. Some of important transaction codes are as follows below.

 A transaction code (T-code) is used to access functions or running programs

including executing ABAP Code in the SAP Application more rapidly.
 By entering a T-code instead of using the menu , navigation and execution
are combined into a single step, similar like shortcuts in the windows OS
 SAP transaction codes can be entered into the transaction code field to
navigate the user directly to the screen or program tasks bypassing the SAP
menu.
 This is the preferred method of using sap because navigating the menu is
time-consuming and you need to know where to look in the menus.
However, the user must know the transaction codes.
 The favorite menu can be structured by the user to coincide with the
procedural usage of the SAP Software.

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 1) Master Data :
1.1) Material Master:
SAP MM Material Master is an important element of master data in SAP which is used
by most of the departments in a company. SAP MM material master enables the
company to store all the information about a particular material (or product). The
material master data is uniquely identified by a material number which can be internal
or external. Internal numbers are automatically generated by SAP system while
external numbers can be explicitly chosen by users.

Topic T-Codes Details

MM01 Create Material Master
MM02 Change
MM03 Display
MM04 Display Changes.
MM06 Flag of Deletion
Material MM60 List of Materials
Master MMSC Enter Storage location
MMBE Stock over view
MMPV Close Period
MMRV Allow Posting to Pervious period
Material Type (We need to Change
OMS2 or create)

1.2) Business Partner (BP):

In SAP S/4HANA, Business Partner is the leading object and single point of entry to
maintain Business Partner, Customer, and Supplier (formerly known as Vendor) master
data.
This is to ensure the ease of master data maintenance and to achieve
harmonization between them. Compared to classical ERP transactions, maintenance of
Customer and Supplier master data via Business Partner has many advantages:
 A legal entity is represented with one Business Partner.
 Can only be associated to one account group. But in Business Partner, multiple
roles can be associated to the same Business Partner.

Topic T-codes Deatils

Business BP Create
Partner BP Change

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1.3) Purchase Info Record:
Serves as a source of information for Purchasing. The purchasing info record (also
referred to in abbreviated form as the "info record") contains information on a specific
material and a vendor supplying the material. For example, the vendor's current pricing
is stored in the info record.
The info record allows buyers to quickly determine:
 Which materials have been previously offered or supplied by a specific vendor
 Which vendors have offered or supplied a specific material

Topic View's T-codes

ME11 Create of Info Record
ME12 Change of Info Record
ME13 Display of Info Record
Purchase Info
ME14 Display Changes
Record
ME15 Flag for Deletion
ME1L List of Vendors Record
ME1M List of Material

1.4) Source List:

 Create, edit, delete, or manage source lists
 Use purchasing info records or contracts as the sources of supply for purchase
requisitions and purchase orders
 Search and assign suppliers to a source list
 Check the status of a particular supplier and change the status
to Fixed or Blocked
 Create a new source list by copying a source from existing source list
 Generate a source list from existing sources of supply contained in purchasing
info records or contracts

Topic T-codes Details

ME01 Create / Change
ME03 Display
Source List
ME04 Display Changes
MEOM List of Source List

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1.5) Quota Arrangement:
It’s a defined Quota Arrangement as a distribution method for same material for
same material supplying from different vendors.
Quota Rating is an important part in Quota Arrangement.
Quota Rating determines the total percentage of a material assigned to a specific
vendor or supply source.
We can assign many vendors to source list, at that time system will propose all
vendor in source of supply field and we have to choose one from the list.
But via quota arrangement, we can give the quantity and percentage for a
vendor, so if we maintain many vendors in source list, system will take the
correct vendor with comparison of quantity of document and quota arrangement.

Topic T-codes Details

MEQ1 Create / Change

Quota MEQ3 Display

Arrangement
MEQ4 Display Changes
MEQM List of Quota Arrangement

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 2) Purchase Requisition:
A purchase requisition is a request or instruction to Purchasing to procure a
certain quantity of a material or a service so that it is available at a certain point
in time.
Procurement in every organization starts with gathering requirements. Once
requirements are gathered, we need to inform the purchasing organization. A
Purchase Requisition is a document that contains a list of requirements. The key
points to note about a purchase requisition are as follows −
 A purchase requisition is a request that is made to the purchasing
organization to procure a certain list of materials.
 It is an internal document and remains within the organization.
 Purchase requisition needs approval from the purchasing organization.
 If a purchase requisition has already been approved, then it can be
modified only to a limited extent.
Purchase requisition can be created for the following procurement types −
 Standard − Getting finished material from vendor.
 Subcontracting − Providing raw material to vendor and getting finished
material.
 Consignment − Procuring material that is kept in company’s premises and
paying to vendor for that.
 Stock transfer − Getting material from within the organization.
 External service − Getting services like maintenance from third party
vendor.

Topic T-Codes Details

Create Purchase
ME51N Requisition
Change Purchase
Purchase ME52N Requisition
Requisition Display Purchase
ME53N Requisition
ME54N Release PR
ME5A List of PR

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 3) Request for Quotation:
This request is known as the request for quotation (RFQ). Listed below are
the key points to note about a request for quotation −
 Request for quotation is a form of invitation that is sent to the vendors to
submit a quotation indicating their pricing and terms and conditions.
 It contains details about goods or services, quantity, date of delivery, and
date of bid on which it is to be submitted.
 Quotation is a reply by a vendor in response to a request for quotation.
 An RFQ can be created by the following two ways −
 Manually
 Automatically from Purchase Requisition

Topic T-Codes Details

ME41 Create RFQ
ME42 Change RFQ
Request for
ME43 Display RFQ
Quotation
ME4L List of RFQ as per Vendor
ME4M List of RFQ as per Materials

4) Quotation Management:
The following step guides you to maintain quotation in SAP step by step.
Vendor communicates price for material and the Request for Quotation
(RFQ) needs to be updated in SAP.
 Step 1: – Access the transaction using one of the following navigation
options
 Step 2: – On the Maintain Quotation: Initial Screen, enter the RFQ and
press enter to continue

Topic T-Codes Details

Quotation ME47 Maintain (Create / Change)
Management ME48 Display

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 5) Price Comparison:
You can compare the price from all quotations received as a result of a
competitive bidding process using the price comparison list. The
comparison list ranks the quotations by items from lowest to highest
price.
Process:
 Step 1 Access the transaction choosing one of the following navigation
options:
 Step 2 Price Comparison screen is displayed. Enter the selection criteria
for the quotations that are to be compared.
You can enter either a range of quotation numbers or, by entering the
collective number, select all quotations belonging to a certain competitive
bidding process. It is also possible to select by vendor number and by
material number. You must specify either a range of quotation numbers
or the collective number

Topic T-Codes Details

Price Comparison ME49 Price Comparison

6) Purchase Order:
 It is an outgoing document. It is an ultimate document
 It is a legal document
 A purchase order is a request to a vendor to supply certain goods
or services under the stated conditions.
 It is confirmation from the company regarding Materials,
Quantities, and Delivery details
 You can create Purchase Order
 Manually
 With respect to PR, RFQ, Contract, another Purchase Order
 With respect to PR, RFQ, contract, and other PO at a time

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 The Standard Document Types for Purchase Order are:
 NB – Standard PO
 FO – Framework order (Blanket PO/Limit PO)
 DO – Dummy PO

Topic T-Codes Details

ME21N Create Purchase Order
ME22N Change PO
ME23N Display PO
Purchase Order ME29N Release PO
ME59N Automatic Generation of PO
ME2N Purchase order by PO no
ME2M List of PO as per Material

7) Goods Movement:
Here we would like to draw your attention to MIGO transaction
code in SAP. As we know it is being used in the SAP MM-IM
(Inventory Management in MM) component which is coming
under MM module (Material Management).MIGO is a transaction
code used for Goods Movement in SAP.

Topic T-codes Details

MIGO Goods Movement
Goods
MSEG (Table) Document Segment : Material
Receipt
BSEG (Table) Accounting Document segment

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 8) Invoice Verification:
Before paying to the vendor, we need to verify the invoice. This
process of verifying the invoice before making a payment is
known as invoice verification. The key points to note about
invoice verification are as follows −
 Invoice verification marks the end of procurement, after
purchase order and goods receipt.
 Invoice posting updates all the related documents in
financials and accounting.
 Blocked invoice that vary from actual invoice can be
processed through invoice verification.
One normally comes across the following terms in invoice
verification −
 Posting of Invoice
 Blocked Invoice
 Evaluated Receipt Settlement(ERS)

Topic T-codes Details

MIRO Invoice Verification
Invoice
MR8M Cancel Invoice Doc
Verification
RKPF (Table) Document of Entries

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 9) Outline Agreement:
This is a long term agreement vendor and company to purchase creation
materials of certain quantity / value with a validity period.

In SAP MM Purchasing, such agreements are subdivided into

“Contracts” and Scheduling agreements.”

Contracts:
 Longer- term contract with subsequent issue of release orders
 Different POs can be released for same contract
 Mainly used for frequent non-predictable requirements e.g.
Purchasing office supplies

 Value contract (MK): The contract is regarded as fulfilled when

release orders totaling a given value have been issued. Use this
contract type when the total value of all release orders should not
exceed a certain amount.
 Quantity contract (WK): The contract is regarded as fulfilled
when release orders totaling a given quantity have been issued.
Use this contract type when the total quantity to order over the
duration of the contract is known.
Quantity Contract: [Agreement Type: MK]

Topic T-codes Details

ME31K Create Quantity Contract
Quantity
ME32K Change Quantity Contract
Contract
ME33K Display Quantity Contract

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 Value Contract: [Agreement type: WK]

Topic T-codes Details

ME31K Create Value Contract
Value
ME32K Change Value Contract
Contract
ME33K Display Value Contract

Scheduling Agreement:
A scheduling agreement is a long-term outline agreement between the vendor
and the ordering party over a predefined material or service, which are procured
on predetermined dates over a framework of time. A scheduling agreement can
be created in the following two ways −
 Creating scheduling agreement
 Maintain scheduling lines for the agreement

(Target Qty) + (Pre-defined Dates)

[Agreement Type: LP]

Topic T-codes Details

ME31L Create Scheduling Agreement
Scheduling
ME32L Change Scheduling Agreement
Agreement
ME33L Display Scheduling Agreement

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 10) Physical Inventory:

Physical inventory is a process of determining that the inventory quantities are

exact, or if there are differences in quantity mentioned physically present and
that mentioned in the SAP system. Basically, after you are finished with physical
inventory, your system and physical stock levels must be the same.

It is mandatory for legal reasons, and in the most of the times it is conducted
once a year.

Creating Physical Inventory Document:

Topic T-codes Details

MI01 Create Physical inventory document
Physical
MI02 Change Physical inventory document
Inventory
MI03 Display Physical inventory document

Entering the Counting Results:

Topic T-codes Details

MI04 Entering the Count
Physical
MI05 Change or Recount Physical inventory document
Inventory
MI11 If needed

Posting the Differences:

Topic T-codes Details

Physical MI07 Posting Difference
Inventory MB03 We can check the material doc

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