MATERIAL MASTER RECORD

Basic Data
It is the division of material for the purpose of account assignment
Material Type & determination. It is a key that assigns material to a group of
materials.
Basic Data 1: Unit of measure, Material group, Division, Product allocation, Weight,
Volume, size EAN.
Way of grouping materials, product or service. Division is used to
Division
determine sales area or business area.
Material Group It is the group of materials having common attributes.
International Article Number is assigned by the manufacturer of
EAN
the material.
Material group Groups together that require similar packings material e.g. Box,
packing material pallet, cylinder etc.
Basic Data 2: Industry standard description, base material used, drawing details, client
specific configuration.
Description of material in accordance with the appropriate industry
Industry Standard
standard.
Dangerous goods Alphanumeric key that uniquely identifies the dangerous goods
indicator profile.
Indicator to show that the dangerous goods are to be transported
In bulk liquid
in bulk
Alpha numeric key uniquely identifying the configurable material;
Cross plant CM
(Material that can have different variants)
Purchasing;
Specifies the unit in which material is ordered & this must be
Order Unit
entered only if it is different than base unit of measure.
Plant specific Indicates whether for a specific plant the material may be used in
material status the following areas like MM, PP, PM, IM etc.
Material Freight This is used to group materials so that they can be classified
Group according to freight code & class.
It is the key which determines how many days before & how many
Purchasing Value days after the vendor must be reminded about the material
Key procurement. Also, it specifies the tolerance limit, shipping
instructions & Order acknowledgement requirement.
MRP1
Key that determines whether & how a material is planned. We have
MRP Type manual reorder point planning, automatic, Forecast based
planning & master production scheduling.
If the stock falls below the predefined quantity the system flags the
Reorder Point
material for requirement planning by creating a planning file entry
Key that determines the day on which material is planned and
Planning Cycle ordered. The planning cycle is planning calendar that is defined un
customizing for MRP.
 Specifies the no of the MRP controller responsible for material
MRP Controller
planning for the material.
Kay that determines which lot sizing procedure the system uses
Lot Size within materials planning to calculate the quantity to be procured
or produced.
Costs that are incurred irrespective lot size, for each PO or
Ordering costs
Production Order & above the PO price & production cost
Assembly scrap in Percentage scrap that occurs during production of the material if
percentage the material is in assembly.
Key that the system uses to adjust the order proposal quantity to
Rounding Profile
deliverable units.
MRP2
Indicator that defines how the material is procured. Following
Procurement Type procurement types are possible 1. Mat is procured in house 2.
Externally 3. Both
Allows you to define the procurement type more exactly. The
Special
system determines the procurement type from material type.
Procurement
e.g. -Consignment, external procurement, sub-contract process
Determines whether it’s possible to JIT delivery schedule. JIT
JIT deliver schedule provides precise information for the vendor
relating the nearing future, exact delivery dates can be specified
Sloc for inhouse produced parts. (Displays available Sloc in a plant
Production Sloc
in drop down)
Storage location Sloc for external procurement
External Proc
In house Time in workdays for inhouse production
production
Planned Delivery No of Calendar Days needed to obtain the material if its possible
Time externally.
Scheduling Margin Key that system uses to determine the floats required for
Key scheduling an order.
Purpose is to satisfy unexpected high demand in the coverage
Safety Stock period.

% specifying what proportion of requirement is to be covered by

Service Level
warehouse stock
MRP3
Period Time Periods in which the material consumption values & forecast
Indicator values are managed.
Fiscal Year variant Used to define fiscal year. We can specify the posting period.
This groups all the planning strategies that can be used for
Strategy Group particular material. Planning strategy represents the procedure
used for planning a material & is controlled by MRP types.
 Factor that the system uses to convert the quantity of the current
Consumption
material measured in the base unit of measure to the base unit
Factor
quantity of planning material.
Consumption Controls the direction on time axis in which the system consumes
Mode the requirement.
Factor that the system uses to convert the quantity of the current
Planning Factor material measured in the base unit of measure to the base unit of
planning material.
MRP4
Indicator determining the selection of alternative BOM when
Alternative BOM
requirement is exploded in MRP.
Discontinuation Identifies the material as a part to be discontinued & includes it in
Indicator the discontinued parts procedure inn materials planning.
Accounting 1
It categorizes the G/L account based on the material type or class
Valuation Class
of material.
Valuation class for Default values for VC for valuated sales order
sales stock
Price Control Indicates price control used to valuate the stock of material.
Indicator
A constant price at which the material; is valuated without taking
Standard price
goods movement & invoices into account.
Price that changes in consequences of goods movement & entry of
Moving avg price invoices & this price is used to valuate a material. It is calculated
by diving the Total stock value by cost over stock.
Price at which material; will be valuated as from the precise date in
Future rice
the future.

VENDOR MASTER RECORD

Classifying feature within VMR. A/C group determines
Vendor Account  Number interval for account number of the vendor.
Group  Whether number is to be assigned by user or system.
 Specifications required for master record
Address of the vendor including name, street address, PO Box
Address
details, tax, contact number etc. are stored.
Control Account control, Tax, Information reference data is stored.
Order Currency, Payment terms, Inco terms with control data is
Purchasing
stored.
Create Vendor:
Alphanumeric key to identify customer & vendor in SAP system.
This is used by payment & dunning programs for clearing open
Customer Number
items. For line item display the link to the customer line items is
established using this number.
 If the customer or the vendor belongs to a group. [ Subdivision of
Group Key companies in the business directory]. You can enter a group key
here. The group key is freely assignable
Tax Number Tax number at different level is specified.
Tax Type Classification of companies are to tax aspects.
Tax office Tax authority responsible for vendor.
responsible
First 7 digits of international location. ILN is assigned when a
Location 1
company is founded.
Location 2 Here we need to enter 8-12 digits of 13-digit ILN.
Industry is a distinct group of companies with th same basic
Industry Key
business activity like chemical, pharmaceuticals.
Payment Transactions:
The account no of the vendor with whom automatic payment
Alternative Payee
transactions are carried out.
DME Data Medium Exchange (Valid for Germany)
ISR In payment slip with reference # -Switzerland
Accounting Information
Reconciliation account in G/L accounting is the subledger account
Reconciliation
for normal postings. For special posting like down payment, bill of
Account
exchange this account is replaced by another account.
Indicates the layout rule for the allocation field in the document
Sort Keys
line number
This field contains the account no of master record for head office
Head Office
account.
The authorization group allows extended authorization protection
Authorization
for particular objects. The authorization group are freely definable.
It is an element authorization concepts. Authorization object
Authorization enables us to define complex authorization by grouping up to 10
Object authorization fields in an AND relationship to check whether a user
is allowed to perform a certain action.
Cash Management Here customers & vendor are allocated to planning groups, by
Group means of an entry made in master record.
Interest calc Enter ICI here if account is to be included in automatic interest
indicator calculation.
Interest calc freq An entry in this field determines the interval in months at which at
in months which interest is to be calculated automatically.
Payment Transactions – Accounting.
Key for defining payment terms composed of cash discount
Terms of Payment percentage and payments periods. This info is used in SO, PO,
Key Invoices & provides info for cash management, dunning procedure,
payment transactions.
Freely definable group code for customer & vendors for G/L
Tolerance Group
accounts. Each tolerance group contains settings that affect cash
 discount and payment differences processing. These settings
become effective during payment entry.
Check double Indicator which means that incoming invoices & credit memos are
invoice checked for double entries at time of entry.
No of days which usually pass until the vendors has cashed your
Check Cashing
check. Value date = Posting date check cashing time. In cash
Time
management value date is used as info about expected cash flow
List of payment methods which may be used in automatic payment
transactions with this customer/vendor if you do not specify a
payment method in the item to be paid.
Payment Method Payment method is a set of parameters & other details that
determine invoices are cleared when using the payment wizard.
Payment transactions is the processing of the outgoing & incoming
payments of the organizations.
Block key is used to block an open item or an account for payment
Payment Block
transaction.
The account number of the vendor with whom automatic payment
transactions are to be carried out. This is required only if the
Alternative Payee
payment is not to be made directly to the vendor to whom the
payable is owed.
The key is used if the customer vendor is always to be paid by the
House Bank
same house bank.
Individual This means that open items are not grouped together for payment,
Payment but every customer or vendor open item is paid separately.
Rules according to which the open items of the account are to be
Group Key
grouped together for payment.
Max amount which may be issued on a bill of exchange if it is to be
used in payment transaction with customer/Vender. Bill of
exchange is a promise to pay in the form of abstract payment,
paper detached from the original legal transaction.

Correspondence Accounting:
Dunning – Dunning is the process of sending dunning notices to
customer with overdue payment item, to customer with overdue
Bill of exchange payment item, requesting payment of the outstanding amount by
limit specified date. For each process the user defines- No of dunning
levels, dunning frequency, amount limits & text for dunning notices.
 Dunning Procedure – This field contains the key for the dunning
procedure to be used.
 Dunning Block Indicator – An indicator that enable us to prevent
accounts & items from dunned.
 Dunning recipient – A/C no of Vendor who is to receive the notice.
 Legal Dunning Proceedings – Date on which the legal dunning
procedure was initiated.
  Dunning level – Numerical indicating how an item or account has
been dunned.
 Local Processing – Indicates payment transaction & dunning
notices are created for branch. Normally dunning notices are
created at Head Office.
 Account Memo – Internal memo of the accounting department.
This serves as a source of info on special features.
Purchasing Data:
Commonly used trading terms that comply with the standards
established by International Chamber of Commerce. It is the set of
Inco Terms
11 rules & regulations that states the responsibility of Buyer &
Seller.
Procedure in IV allowing assignment of deliveries & invoices to an
item of a purchase Order. If GR based IV has been defined for an
GR based IV
order item an invoice for the order item can be entered at the time
of GR. Here separate invoice is created for each GR
Office of Entry Customs office through which goods enters or leaves the country.
Relevant for POD This controls proof of delivery Processing

PURCHASE INFO RECORD

 Standard Info Record: Specifies that the info record is used only
in connection with the standard PO
 Subcontractor Info Record: Specifies that the info record is used
only in connection with subcontract orders
Types
 Pipeline Info Record: Specifies that the info record is used
specifically for pipeline procurement processes
Consignment Info Record: Specifies that info record is used only in
case of consignment withdrawals.
Vendor Material Specifies the material number used by the vendor
Number
Subdivision of vendor’s overall product range according to various
Vendor Subrange criteria. The master data is kept on common basis, certain
condition apply
Two-character key indicating whether return agreement has been
Return Agreement concluded with the vendor. 01-No Return, 02-Return but no
refund, 03-Return with refund
Quantity of the material which is normally ordered from this
Standard PO qty
vendor
Remaining Shelf Minimum amount of time for which the material must keep upon
Life goods receipt to be accepted by the system.
Indicator specifying ERS not possible for deliveries of this material
No ERS Evaluated Receipt Settlement is the procedure for automatic
settlement of Goods Receipt.
Confirmation Determine which confirmation categories are expected for a
Control Key Purchase Order item
Determines whether we can grant the cash discount for payments
No cash discount
made within certain period of time
Attributes used in conditional expressions which, when evaluated,
Conditions
performs specified actions

SOURCE LIST
Key for the factory or branch of a company from which the material
PPI
is to be procured.
Specifies that the source of supply is the preferred procurement
Fix
option within the specified period
Specifies whether the source of supply is blocked for ordering
Blocked
purpose
Key that determines how the source of supply defined in the source
list record is used
“1”- PR generated within the framework of MRP are actually
MRP assigned to this course
“2”- If source of is scheduling agreement, MRP can create delivery
schedule line with respect to the requirement
“ ”-The source of supply is not taken into account by MRP

QUOTA ARRANGEMENT
A particular material can be procured from different vendors depending upon
requirement. In this way, the total requirement of a material is distributed to different
vendors, i.e., the quota is assigned to each source of supply. This is known as quota
arrangement. The key points to note about quota arrangement are as follows −
 Quota arrangement divides the total requirement of material among certain
sources of supply, i.e. vendors, and then assigns a quota to each source.
 This particular quota specifies the portion of material that is to be procured from
an assigned vendor or source.
 Quota rating is used to determine the amount of material that is to be assigned to
a particular source or vendor. The source with the lowest quota rating represents
a valid source.
 Quota rating can be calculated by using the following formula –

Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota

Where Quota Allocated Quantity is total quantity from all orders that is procured from a
particular source. Quota Base Quantity is quantity from new source of supply. Quota is
total requirement of material that is given to a particular source of supply.
 PURCHASE ORDER
Purchase Order is a formal request with conditions to a vendor to supply you with
goods or services
HEADER DATA
Payment Terms Key for defining payment terms composed of cash discount
percentages & payment periods. This info taken from PIR and is
used in PO, SO & Invoices and provides information for cash
management, Dunning Procedure.
Incoterms Commonly used trading terms that comply with the
standards established by International Chamber of
Commerce. Incoterms specify certain internationally
recognized procedures that the shipper and receiving party
must follow for shipping transactions to be successfully
completed. Taken from VMR or PIR
Conditions
Texts
Address Address of the Vendor copied from Vendor Master Record
Communication Contact details of salesperson and References copied from PIR
Your Reference Internal ref no of customer or vendor. This represents the
individual who is responsible for the document at the
customer
Our Reference Details of an individual from other organization who is
responsible for purchasing activities and point of contact in
that org
Partner Functions
Additional Data
Validity Start Date as of which service can be performed or material can be
delivered
Validity End Date up to which service can be performed or material can be
delivered
Collective Number Number or code facilitating the collective management of a
number of individual RFQs or POs
Defines the Org Data like Purchasing Organization, Purchasing
Org Data
Group and Company Code
This tab indicates the status of the Purchase Order, whether its
Status active, qty of material delivered, pending qty to be delivered and
corresponding cost of each
ITEM OVERVIEW (Same for PR)
Account Specifies whether accounting for an item is to be affected via an
Assignment auxiliary account. This determines which accounting assignment
Category data is necessary for item. e.g. Third party, assets, cost centre etc
Key defines how the procurement of material or service is
Item Category controlled. Item category determines the field section & whether
any additional data screens are shown. In addition, this determines
 whether GR IV is to be followed. L-subcontracting, K-consignment,
D-External Services
Short Text Description of material from MMR
Quantity that needs to be procured, it is calculated based on
PO Qty
minimum order value and safety stock maintained in MMR
The date on which buyer is expecting delivery, it is calculated
based on the value planned delivery time in PIR, if PIR is not
Delivery Date
maintained then it will calculate delivery date based on MMR
(planned delivery time MRP2)
The price of the material per unit, its fetched from PIR, if PIR is not
Price
maintained then we need to enter it manually
Number that facilitates the monitoring of the procurement of the
required material or services. This number corelates to the
Requirement
requisition note that was generated in the system. This number
tracking no
enables us to group together the purchasing documents that exists
for a certain material requirement.
Specifies the number of vendor suggested by requisitioner to the
Desired Vendor
purchasing department for PO
Fixed Vendor Number of vendor defined as the free source of supply for this PR.
ITEM DATA
Key that uses to group together several material or services with
Material Group the same attributes & to assign them to a particular material
group. This is copied from MMR Basic Data 1
A revision together with a change number identifies a version of
Revision Level
material management
Assigns a material that is manufactured by manufacturer in
Batch Number
batches or production lot
International article number is assigned by the manufacturer of
EAN the material. EAN identifies the manufacturer uniquely. Fetched
from MMR Basic Data 1
Quantities/ PO Quantities can be seen here, Net weight, Gross Weight, Volume
Weight is copied from Basic Data 1 view of MMR
Delivery Schedule Expected date of delivery as per PIR or MMR
Acceptable tolerance limits, reminders that need to be send to the
Delivery
vendors can be checked here. Data is copied from PIR
No of days representing the time interval at which reminders are
urging letters/ messages are to be issued to vendors negative
Rem/ Exped number of days means reminder is to be issued n days prior to
certain date (generally delivery date, deadline). Positive no of days
means reminder is to be issued n days after certain date
Stock Type Specifies the stock to which material is posted upon GR
This is the latest acceptable dates for goods receipt. If goods are
Latest GR date received after this date, we will get either warning message or error
message, depending upon the system settings.
Invoice Receipt Specifies whether IR is linked to PO item
 Indicates the last invoice from vendor has been received for an item
Final Invoice
and that no further invoices are expected
Indicator specifying the provision has been made for GR based IV.
GR based IV
(PIR)
These are used to indicate gross price, freight charges, rebate,
Conditions
surcharge, discounts etc.
Confirmation Determines which confirmation categories are expected for
control key Purchase Order
Order Number of the vendor acknowledgement
Acknowledgement
Address at which vendor should supply the material. It will copy
Delivery Address receiving plant’s address which is provided while creating org
structure

OUTLINE AGREEMENTS
Outline Agreements are used as a long-term purchasing agreement with vendor. This
can be used for material supply or services. Outline agreements are always maintained
with the validity period. There are two types of outline agreements
1. Contract: It is a long-term outline agreement between a vendor and an ordering
party over a predetermined material or service over a certain framework of time.
 Quantity Contract: In this type of contract the overall value is specified in
terms of total quantity of the material to be supplied by the vendor.
 Value Contract: In this type of the contract the overall value is specified in
terms of total amount to be paid to the vendor for the material supplied
2. Scheduling Agreement: Scheduling Agreement is a long-term agreement between
the vendor and ordering party over a predetermined material or services which
are procured on predetermined dates over a framework of time.
Indicator allowing differentiation between the various kinds of
outline purchase agreement in SAP system
Agreement Type
DC – Distributed Contract GCTR – Value Contract
MK – Quantity Contract PCTR & WK – Value Contract
Item Interval Determines the size of the steps between the default item number
Total value of all materials to be released against the contract. If
Target Value this value is exceeded the user receives a system message when
creating contract release order
This alpha numeric key denotes the vendor invoicing the ordered
Invoicing Party
material or service performed to whom the due amount is payable

BILL OF MAERIALS
A bill of material (BOM) describes the different components that together create a
product. For example- A computer is a product. It is a combination of CPU, Keyboard,
Monitor, Mouse etc. The bill of material contains the item number of each component,
quantity required in the manufacture of a product and the unit of measure of the item.
Role of SAP Bill of Materials (BOM) in SAP PP
SAP bill of materials (BOM) is used for the following functions:
1. Material Requirement Planning (MRP)
2. Product costing
3. Material Consumption
Usage of BOM in MRP
 MRP uses BOM to calculate required raw materials or semi-finished goods (SFG) or components quantity
for customer demand of finished materials.
 MRP performs ‘Net Requirement Calculation’ at all the level of BOM by exploding it to determine the
shortage quantity.
Usage of BOM in Costing
 During finished good (FG) product costing, the SAP system performs costing of its component by
exploding BOM.
 Product costing comprise of raw material, activity and overhead costs. Here, raw material price is
maintained in a material master and its required quantity for a particular FG is maintained in BOM.
 During product costing, the SAP system multiplies quantity in BOM with material master price to
determine its cost against the particular FG.
Usage of BOM in Production Consumption
 When production order is created for an assembly or FG, its BOM components are copied to the order.
 At the time of goods issue against order, the system posts the consumption based on this BOM
components in an order.

This key defines area where BOM can be used. With this key data
BOM Usage is entered and edited according to org area. The BOM can be
displayed for the specific usage
Categorization of items in BOM according to set criteria such as
such as whether the refer to an object or whether they are kept in
Item Category stock. This allows us to process the data that is relevant to the
individual item in BOM. The item category is used to control the
field selection default values for BOM maintenance

GOODS MOVEMENT
Procurement process starts with gathering requisition & ends with procuring goods
from vendor. Once the goods are procured from vendor, they need to be placed in
companies’ premises in correct place so that they can be consumed when required.
 Inventory management deals with placing and handling the stock received from
vendor in correct place within companies’ premises
 Inventory Management deals with management of stock either on Value or on
Quantity basis
 It includes planning, entry and keeping records of all the movements of goods.
 Goods movement creates a document that updates all the stock quantity & value in
the inventory that is known as material document
 Material Document is referred by a document number and fiscal year
MIGO Transactions
GR is the component which is used to post the receipt of goods
Goods Receipt from an external vendor or from production. A Goods Receipt leads
to an increase in warehouse stock.
 GR can be posted against Purchase Order, Material Document,
Inbound Delivery, Outbound Delivery, Order, Other, Reservations
and Transport id
This is used when we want to return the delivered goods to the
vendor for some reason (may be due to poor quality, damaged
goods etc.) We can use this function to return the goods even
Return Delivery
though we have already posted a GR
Return Delivery document can be posted against Material Document
and Delivery Note
The cancel material document function in transaction MIGO
cancels the material document “as-it-is” with all assigned serial
number and quantity batches. For successful cancellation stock
Cancellation
situation must be the as that of during posting GR
Cancellation Document can be posted with reference to the Material
Document only
Material can flow directly from GR into consumption/ usage or into
warehouse. However, it may also be placed into blocked stock area
first. Using the stock type, you can post the material into quality
inspection stock or into blocked stock. In both the cases the
material is managed in stocks. “Alternatively, the material can be
Release GR
conditionally accepted deliveries are recorded in GR blocked stock”
Blocked Stock
Once the condition of acceptance of delivery are met the material
can be released from GR blocked stock & its GR can be posted into
Stocks or Consumption
Release GR blocked stock can be posted with reference to the
Material Document
In Goods Receipt based Invoice Verification we can post Goods
Receipt as Subsequent Deliveries for previous goods receipt by
referencing the original GR document. In this process the system
Subsequent
copies the original reference document number thereby
Delivery
maintaining the link between GR and corresponding invoice.
Subsequent Delivery can be posted with reference to Delivery Note or
Material Document
Using this transaction, you can post a material withdrawal, a
material issue or a shipment of goods to a customer. Goods issue
leads to a reduction in warehouse stock.
Goods Issue
Goods Issue transaction can be completed with reference to Material
Document, Order, Purchase Order, Reservation or without any
reference also.
This transaction can be used to remove the material from storage
location and place them to another storage location. Stock transfer
can happen either within one plant or between two plants or
Transfer Posting
company code
Transfer Posting can be done with reference to the Material
Document, Reservation or without any reference.
 Correction of GR posting for subcontractor order. If vendor has
consumed more or less items compared to BOM we can adjust that
Subsequent
through this transaction.
Adjustment
Subsequent Adjustment can be posted with reference to a Purchase
Order
FIELD DETAILS
A classification key indicating the type of material movement. This
enables the system to find predefined rules for posting to determine
how the accounts of the FA system are to be posted & how the
Movement Type
stock field in MMR is to be updated.
(MvT)
Goods Movement: Physical or logical movement of material leading
to a change in stock levels or resulting in a consumption of
material
Specifies the special stock type.
Special Stock: Stock of material that must be managed separately
Stock Indicator
for reasons of ownership or location. e.g. Consignment, Pipeline,
Project
It is a document that comes along with the actual delivery. This
Delivery Note contains details regarding quantity, packing lists etc. Delivery Note
is Vendor’s document
Bill of lading is a document that must be issued by the carrier to
Bill of lading the shipper, booking party & so on. It is a receipt for the goods,
proof of the contract of carriage & also document of title.
The Document Header text contains explanation or notes which
Header Text apply to the document as a whole. i.e. not only for certain line
items
Print via O/P Indicates that the output determination function will be activated.
control In this case the system checks whether o/p is to be generated
There are three versions for printing GR/GI slip
Version for  Individual – 1 GR/GI slip for each item
printing GR/ GI  Individual slip with Inspection Text – 1 GR/GI slip for each item
slip along with inspection text. (if available in MMR)
 Collective – 1 document for all items
An accompanying printed document that is created for physical
GR/GI slip
stock movement. It can be used as a transport document for
number
warehouse or stores & as a material identification slip.
GENERAL TERMS
The inbound delivery is a document containing all the data
required for triggering & monitoring the complete incoming delivery
Inbound Delivery process. This process starts on receipt of goods in the yard and
ends on transfer of the goods at the final put way, production or
outbound delivery
The outbound delivery is a document representing the goods to be
Outbound Delivery
delivered together to a goods recipient.
 Extended warehouse management has its own delivery processing
Delivery area. This is significant part of logistic chain. Delivery Processing
Processing offers function for executing goods receipt and goods issue
activities as well as for posting changes & internal stock transfer.
With the component you make request to the warehouse to keep
material ready for withdrawal at a later date and a certain purpose.
This simplifies & accelerates the goods receipt process. A
Reservation
reservation for goods issue can be requested by various
departments for various account assignment object. We can post
the GR against the reservation

INVOICE VERIFICATION
Invoice Verification – The process of verifying the invoice before making the payment is
known as Invoice Verification (IV).

Invoice Date It specifies the date of original Document.

The date that is used when entering the document in Financial
Posting Date
Accounting or Controlling.
It specifies the amount that is on the invoice sent to you by the
Amount
vendor.
Tax Amount of tax for sales/Purchase as specified.
Text Explanatory Text for Invoice Verification.
Reference Reference Document number can contain the document number of
Document the business partner, but a different entry can also be made.
Specifies the number that uniquely identifies an item in a
Item Number
purchasing Document.
Sometimes goods needed to be returned back after the invoice is
Credit Memo posted. In order to tag the original invoice a credit memo can be
entered through the MIRO T-Code.
We enter a subsequent Debit when the vendor has invoiced us too
Subsequent Debit
low price and then sends a second invoice for the difference.
If a PO was invoiced at too high price and the vendor sends a credit
Subsequent Credit
memo, we enter a subsequent credit.
G/L Account It a means of keeping record the company`s financial accounts.
It indicates the difference between the gross invoice amount and
Balance
the sum of the tax, unplanned delivery costs and the net total.
Date to which the periods for the cash discount deadline and the
Base line date
due date for net payment refer.
The due date for net payment is calculated from the baseline date
Due Date for payment and maximum permissible target dates in the Terms of
Payment.
Discount It is the cash discount amount in Invoice Document currency.
Key for defining payment terms composed of cash discount
Payment Terms
percentages and payment periods.
House Bank It determines all the bank data.
Unplanned Del Field for entering unplanned delivery costs.
Costs
It classifies the accounting documents. It is stored in Document
Doc type in MIRO
header.
The assignment number is an additional information reference field
Assignment No
in the line item.
Document Header It contains explanations or notes which apply to the document as a
Text whole, that is not only for certain line item.
VAT reg# Value Added Tax reg# of the vendor or Customer.
Determines which columns are displayed in what order in the item
Layout
list on the G/L account tab page.
Functions of T-Code MIRO –
 Processing Invoice Documents  Accepting & posting variances
 Holding Invoice Documents  Checking message generated
 Simulating Invoice Documents  Posting directly to G/L accounts & material documents.
 Displaying Message

Hold in MIRO – If you are interrupted while entering or parking an invoice you can hold the data you have
already entered, such as the list field selections, header data and item data. The system creates an invoice
document but does not make any checks, updates or postings.

ACCOUNT ASSIGNMENT
In SAP-MM, Procurement Process involves the cost of goods and services that needs to
be paid to the vendor by an organization. The cost being paid must be posted in an
organization necessarily in a correct General/ Ledger account. It is quite impossible to
recollect and feed the correct G/L account every time during procurement. To avoid this
inconvenience, the SAP system can be configured so the system will automatically
determine the correct G/L account that needs to be posted. G/L account is posted once
GR is done as well as during clearing Invoice Verification.
Account Determination deals with
-Define Valuation Control
-Group together Valuation Areas
-Define Valuation Classes
-Configure Automatic Posting
Valuation Areas can be grouped together and can be assigned to
one grouping code, if they belong to the same G/L account. For
Define Valuation
example, different plants under same company code can be
Control
assigned to the same valuation grouping code & vice versa. Before
this valuation grouping code must be activated.
In this valuation areas and valuation grouping code are assigned to
the company code. Valuation Group Code makes it easier to set the
Group together
automatic account determination. Within the chart of accounts,
Valuation Areas
you assign the same valuation grouping code to the valuation
areas, you want to assign to the same account. Valuation grouping
 code either reflect a fine distinction within chart of accounts or
they correspond to the chart of accounts. Within chart of accounts
we can use grouping code
 To define individual account determination for certain valuation
areas
 To define common account determination for several valuation
areas.
Valuation Class categorize G/L account on the basis of material
Define Valuation type. For example, Raw Material will have different G/L account
Classes that FERT as the cost will be different in both the cases. Account
reference is also maintained along with the valuation class
G/L account is automatically determined for each of the
Configure
transaction. It happens so because automatic postings are
Automatic Posting
configured in SAP system
SAP Reference Image
This section covers the introduction of applications which are
Logistic General
generally part of logistics
In this step you make the configurations required for processing
Material Master
business transactions in MM
Whenever we create MMR, we assign it to Material Type. Before
that we must define the attributes of each material type. Material
Define Attribute of types are used in following neighbouring areas, where they are also
Material type configured in customizing.
-Profit Centre Accounting -Product Cost Planning
-Sales & Distribution -Valuation and Account Assignment
Organization level at which material is valuated. (Plant, Company
Valuation Area
Code)
Specifies that the material is managed in quantity basis in MMR
Quantity Updating
for the relevant valuation area.
Specifies that the material is managed on a value basis in MMR for
Value Update
the relevant valuation area.
Makes Pipeline Handling Mandatory
Pipeline materials are not planned because they are constantly
available. The price of pipeline material is recorded in pipeline info
record for the relevant vendor, pipeline withdrawal has the following
Pipeline Handling effects
-Stock levels are changed
-Consumption is updated
-Pipeline liability towards vendor is incurred that must be accounted
for & settled on periodic basis
Materials This covers all the info relevant to the implementation of materials
Management management.
Valuation & Acc In this section we can make the system settings required for the
Assignment areas like Material Valuation, link between MM & FA
 In this section we make the configurations relevant to transactions
Account in Inventory Management and Invoice Verification (Without wizard
Determination enables to make more complex configuration than with wizard, With
wizard always reads the existing customizing stings first)
Specifies the type of document that constitutes the basis for the
movement, this is necessary to distinguish between GR for
Purchase Order and GR for Production Order
Movement
“ ” – Goods Movement without reference
Indicator
“B” – Goods Movement for Purchase Order
“F” – Goods Movement for Production Order
“L” – Goods Movement for Delivery Note
Specifies that the consumption is to be posted to which of the
following account
“ ” – No Consumption
Consumption
“V” – Consumption
Posting
“A” – Asset
“E” – Sales Order
“P” – Project
Posting String for Indicates the posting rules that always contains the same account
Values assignment characteristics for certain transaction
Transaction Event Key is an internal processing key facilitating
TEKey automatic account determination for the various materials and
invoicing party
Indicator for account assignment. If this is set the system checks
Check Account whether a G/L account for an account assignment has been
Assignment specified on the item screen. If so the system copies the data to the
posting lines
A classification scheme consisting of group of G/L accounts. A
chart of accounts provides a framework for recording of he values
Chart of Accounts
to ensure an orderly rendering of an accounting data. The G/L
accounts it contains are used by one or more company code.
These are structured in accordance with the legal requirement of
the company for the country.
Country specific chart of accounts is also called alternative chart of
Country specific account. CCOA is used in addition to the operating COA in a
Chart of Accounts company code. CCOA contains all the general ledger a/cs that are
required to meet the legal requirements of that specific country for
which it’s created. With this you can create country specific
financial statement.
Group Chart of This is structured in accordance with requirement pertaining to
Accounts consolidation

OUTPUT DETERMINATION
Condition Table A combination of fields that define the key of condition record.
 An access sequence is a search strategy the system uses to find the
Access Sequence
valid data from the condition record.
Specifies the kind of output to be produced. The O/P is predefined
Output Type
for your area of SAP system.
Access to Output Indicates whether the system determines the O/P by searching for
Condition valid condition records.
Multiple issuing of Indicates whether the same O/P may be issued to the same
O/P in PO partner more than once.
Partner During O/P processing when the indicator has not been set the
Independent O/P system allows only certain partners in specific partner functions.
Dispatch Time It is the key that defines when the O/P must be processed
Communication A communication strategy describes a sequence of communication
Strategy method.
To define the mode of PO storage post processing. Print only,
Storage Mode
Archive only, Print & Archive.
Print Parameter Defines the requirements that determine the printing parameters.
Specifies the conditions that are allowed for a document and
Procedure in defines the sequence in which they are used. They are used in SD
message schema for pricing, Calculating accrued costs in Profitability analysis,
Output control (Printed Confirmations, EDI, Electronic Mail).
A possible requirement would be for example that the difference
Requirement
should be made between document currency & Local currency.
It is a document for which the print function has been selected.
Spool Request
However, it has not yet been O/P on a printer or another device.
Three-part name of a spool request the name is determined
Spool Request
automatically by spool system. But can be entered by user or
Name
program generating request.
TCode Path
SPRO SAP Reference Project
Object

MM01 Create Material Master SAP Menu > Logistics > Material
Management > Material Master >
Material > Create (General) > MM01 –
Immediately.

MM02 Edit Material Master SAP Menu > Logistics > Material
Management > Material Master >
Material > Change

MM03 Display Material Master SAP Menu > Logistics > Material
Management > Material Master >
Material > Display

MM60 List View of Materials SAP Menu > Logistics > Material
Management > Material Master >
Others > Material List

XK01/ Crate Vendor Master SAP Menu > Logistics > Materials
MK01 Management > Purchasing > Master
Data > Vendor > Central > Create
Vendor

XK02/ Edit Vendor Master SAP Menu > Logistics > Materials
MK02 Management > Purchasing > Master
Data > Vendor > Central > Change
Vendor

XK03/ Display Vendor Master SAP Menu > Logistics > Materials
MK03 Management > Purchasing > Master
Data > Vendor > Central > Display
Vendor

ME11 Create Purchase Info SAP Menu > Logistics > Materials
Record Management > Info Records > Create

ME12 Change Purchase Info SAP Menu > Logistics > Materials
Record Management > Info Records > Change
ME13 Display Purchase Info SAP Menu > Logistics > Materials
Record Management > Info Records > Display

ME01 Create/Change/Display SAP Menu > Logistics > Materials

Source List Management > Source List > Create

MD03 Run MRP SAP Menu > Logistics > Materials

Management > Material Requirement
Planning > MRP > Planning > Single-
Item Single-Level

ME51N Create Purchase SAP Menu > Logistics > Materials

Requisition Management > Purchasing > Purchase
Requisition > Create

ME52N Change Purchase SAP Menu > Logistics > Materials

Requisition Management > Purchasing > Purchase
Requisition > Change

ME53N Display Purchase SAP Menu > Logistics > Materials

Requisition Management > Purchasing > Purchase
Requisition > Display

MD04 Check Material Status Logistics > Materials Management >

Inventory Management > Environment
> Stock > Stock/Requirements List

ME54N Release Purchase SAP Menu > Logistics > Materials

Requisition Management > Purchasing > Purchase
Requisition > Release > Individual
Release

ME41 Create Request for SAP Menu > Logistics > Materials
Quotation (RFQ) Management > Purchasing >
RFQ/Quotation > Request for
Quotation > Create

ME42 Change Request for SAP Menu > Logistics > Materials
Quotation (RFQ) Management > Purchasing >
RFQ/Quotation > Request for
Quotation > Change
ME43 Display Request for SAP Menu > Logistics > Materials
Quotation (RFQ) Management > Purchasing >
RFQ/Quotation > Request for
Quotation > Display

ME47 Maintain Quotation SAP Menu > Logistics > Materials

Management > Purchasing >
RFQ/Quotation > Quotation >
Maintain

ME49 Price Comparison SAP Menu > Logistics > Materials

Management > Purchasing >
RFQ/Quotation > Quotation > Price
Comparison

ME21N Create Purchase Order Logistics > Materials Management >

Purchasing > Purchase Order > Create
> Vendor/Supplying Plant Known

ME22N Change Purchase Order Logistics > Materials Management >

Purchasing > Purchase Order >
Change

ME23N Display Purchase Order Logistics > Materials Management >

Purchasing > Purchase Order >
Display

ME29N Release Purchase Order Logistics > Materials Management >

Purchasing > Purchase Order >
Release > Individual Release

ME31K Create Contract Logistics > Materials Management >

Purchasing > Outline Agreement >
Contract > Create

ME32K Change Contract Logistics > Materials Management >

Purchasing > Outline Agreement >
Contract > Change

ME33K Display Contract Logistics > Materials Management >

Purchasing > Outline Agreement >
Contract > Display
ME31L Create Scheduling Logistics > Materials Management >
Agreement Purchasing > Outline Agreement >
Scheduling Agreement > Create >
Vendor Known

ME32L Change Scheduling Logistics > Materials Management >

Agreement Purchasing > Outline Agreement >
Scheduling Agreement > Change

ME33L Display Scheduling Logistics > Materials Management >

Agreement Purchasing > Outline Agreement >
Scheduling Agreement > Display

MMBE Stock Overview Logistics > Materials Management >

Inventory Management > Environment
> Stock > Stock Overview (MMBE)

CT04 Create Characters for

release strategy

CL02 Create class for release

strategy

MIGO Goods Receipt, Issue of Logistics > Materials Management >

Goods, Transfer Posting, Inventory Management > Goods
Stock Transfer Movement > Goods Receipt > For PO >
GR for Order

SE09 To check Transport

Organizer

MB02 Change Material Logistics > Materials Management >

Document Inventory Management >
Material Document > Change

MIRO Enter Incoming Invoice Logistics > Materials Management >

Logistic Invoice Verification >
Document Entry > Enter Invoice

ME2O SC Stock Monitoring Logistics > Materials Management >

Purchasing > Purchase Order >
Reporting > SC Stocks per vendor
CS01 Create Bill of Material

MB1C Other Goods Receipt Logistics > Materials Management >

Inventory Management > Goods
Movement > Goods Receipt > Others

ME2O SC Stock Monitoring Logistics > Materials Management >

Purchasing > Purchase Order >
Reporting > SC Stocks per Vendor

OMJJ Customizing Movement

Type

OMWD Account Determination

for Valuation Areas

OBYC To setup G/L Account for

automatic posting

MKVZ To list the vendors

ME2N To list the Purchasing

Documents

MBLB To check the stock

available with vendor