Professional Documents
Culture Documents
Material Document
Material Document
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MM BUSINESS PROCESSES
PROCUREMENT - GENERAL
1. MRP
2. Purchase Requisition
3.Vendor Selection
4. Purchase Order
6. Goods Receipt
Accounting entry:
7. Invoice Verification
Accounting entry:
8. Invoice Payment
Accounting entry:
Vendor A/c Dr
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PROCUREMENT - PROCESS
MM Steps-
MM Cycle:
Determination of Requirements:
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In this step, there is a requirement of material or service, which must be procured
externally, from the user for its own process. The requirement must be recorded as
Purchase Requisition (PR) document in SAP MM.
Determination of the source of supply: After the PR has been created, the responsible
department (usually purchasing/procurement department of the company) must process it.
The buyer of the procurement department must determine the possible sources of supply
of the material/service specified in the PR.If there is no valid info record at that time, the
buyer can create Request For Quotation (RFQ) documents to one or some prospective
vendors.
The buyer can access the procurement history of the material/service specified in the PR,
so he can see which vendors that have provided it to the company before.
He can also create the RFQ to the new prospective vendor that might have never
provided the material/service to the company before*In the RFQ, the buyer must include
the information about the material/service needed from the vendors (can be copied from
the PR), the latest submission date of the quotation, the preferred term of delivery, term
of payment, currency, etc.
Vendor Selection: Purchase Order is sent to the selected vendor. After purchase order
processing, buyer will monitor the purchase order for delivery with vendor and also for
confirmations.
Goods Receipt: When the vendor delivers the material or performs the service, the
responsible person of the company must perform the goods receipt (GR) or service
acceptance (SA) transaction. When we perform the GR for the PO item for the first time,
SAP will propose the quantity to be GR as the PO order quantity. Depends on the
delivery terms agreed with the vendor, the vendor might deliver the material partially. We
can post the GR partially too, so when the next material delivery is received, SAP will
propose the quantity to be GR as the remaining quantity that has not been GR yet.
Payment Processing: After the IR transaction has been posted, the vendor’s account
payable will increase and the company must process the payment to that vendor as stated
in the terms of payment of the PO. The payment transaction will be performed in FI
module. After the payment has been posted, the vendor’s account payable will be debited
and the cash or bank account will be credited.
1. Return Delivery can be done by using movement Types 122 and 161
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Movement type 122: Return delivery to vendor
Using movement type 122, you can distinguish real return deliveries for a purchase order
or order from cancellations (102).
In the standard version, you must enter a reason for the return delivery if you are using
movement type 122. In this way, evaluations of return deliveries are possible.
Steps
When we post the document the movement type 122 will be selected by the system.
122 - Movement type used for return delivery of goods referencing a Goods receipt
material document
You can return partial amount of goods to the vendor stating the reason for movement.
If a purchase order item is marked as a returns item, the returns to vendor are posted
using movement type 161 when the goods receipt for purchase order is posted.
Steps
when we post the document the movement type 161 will be selected by the system.
Both Movement type 161 has the same effects as movement type 122.
161 - movement type used for returning the material to the vendor referencing a returns
PO.
The account postings are
Debit - GR/IR account
Credit - Inventory account
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The basic difference between these two movement types is,
MOV-122: you can return material to the vendor when you know the PO number or GR
number. The major advantage here for us is material get returned with same value when
GR taken.
MOV-161: Returns PO, here we will return the material by creating the PO with Returns
flag. As soon as you take GR system returns the material with price given in the PO. Here
system takes the price given in the Returns PO.
The business functionality of the both are, If you taken the 100 qty GR from the vendor
and 80 got accepted and 20 rejected. Then it is advisable to go for 122.
But you have procured material from various vendors and 100 Gr qty only 1 pc got
rejected and like that in case of other vendors. In cumulative you got some 30 pcs that are
not usable. In that case you negotiate with any vendor to take that material at agreed
price. In this case we go for Returns PO. Stocks get returned with the agreed price.
2.Return Delivery can be done bu using movement Types 122 and 161
When we post the document the movement type 122 will be selected by the system.
Delivery document will be created.
===============================================================
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Subcontract PO: You cannot use subcontracting PO in intra-company process (plants
under same company code)
You need to have the material maintained that can be procured externally and you need
have the BOM maintained with components.
3. After completing steps 1 & 2, you can create a subcontracting PO with item category
"L"
4. After creating this PO, you need to make transfer posting and issue the components.
This is done by MB1B transaction using movement type 541.
5. You can receive the finished product by MIGO transaction with Mvt. Type 101.
(1) You have a material that can be procured externally, and you have maintained BOM
with components. Any waste generated and received during subcontracting process can
be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain
Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to
subcontractor. As material remains under your ownership, system does not make any
value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed
in manufacturing of finished goods. Additionally, if you have negative components in
BOM, now you'll also receive subcontracting by-products. There are three events, so
three accounting entries are generated:
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
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DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
Process of Subcontract in MM
SAP process:
1.Create the finished goods material code.
2. Maintain the BOM for the material.
3. Create PO with item category as "L”.
4. Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6. MIRO to account for vendor's invoice for the service charge& material used by him.
===============================================================
Service procurement,
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1. AC01 - Create Service master and assign the Valuation Class and give uom, service
category and do Account Determination in OBYC for transaction Key GBB and
Valuation Modifier VBR and for transaction Key WRX, assign GR/IR Clearing A/c
2. ME21N - In PO (ME21N), use Item category as "D" (Services) along with Account
Assignment Category "K" (Cost Center) or "P" (Project) or "U" (Unknown) and In
"Services" tab, specify the Service Master Number(Activity Number), Quantity and
Gross price.
3. ML81N - Create Service Entry Sheet w.r.t. Service PO and press release flag for
acceptance. You will get service entry sheet number and a material document number.
Consignment stock is special kind of stock .The stock is lying at your storage location but
the responsibility vendor .Consignment stocks are not valuated. When the material is
withdrawn it is valuated at the price of the respective vendor.
Vendor liability will arise at the moment when you are withdrawing the stock or transfer
the stock to your own stock.
Info records with info category Consignment are created before creating the PO (you
must maintain the consignment price for the vendor in an info record).The price is
required for material valuation and accounting purposes.
Steps:
2. You enter purchase requisitions for consignment materials in exactly the same way as
for other materials.( item category K).
3. Creat Purchase Orders / Outline Agreements for Consignment Materials in the similar
way (item category K).
4. Goods receipt with 101 as its item Cat K it will not create the AC doc.
5. You can transfer stock to your storage location or goods issue for the consumption
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whatever may the case with movement 411
6.Consignment materials are settled through MRKO... and payment will run in FI.
OR
A. Goods Receipt:
No Accounting Documents
B.Goods Issues:
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VL10B - Create Delivery
Introduction
Most of the times we need to transfer stock of material from one plant to another plant or
plants. In SAP R/3 the following type of procedures are available.
It has the following advantages over the transfer of stock without a stock transport order:
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3. Delivery costs can be entered in the stock transport order.
4. The stock transfer order is part of MRP
5. The goods issue is possible via a delivery or via Shipping.
6. The goods receipt can be posted directly to consumption.
7. The entire process can be monitored via the purchase order history.
As per Indian Law, if the material is subject to Excise Duty, even moving between plants
needs to be accompanied with Excise Invoice. The following process describes the full
cycle of from stock transport order, goods issue, excise invoice and goods receipt
processes.
If the stock of material is available in Supplying Plant then Supplying Plant will create a
delivery against the above Stock Transport Order.
SAP menu> Logistics> Sales and Distribution> Shipping and Transportation> Outbound
Delivery> Create> Collective Processing of Documents Due for Delivery>Purchase
Orders
T. Code: VL10B
To Pick the Material and to do the Post Goods Issue supplying plant will change the
above outbound delivery document.
SAP menu> Logistics> Sales and Distribution> Shipping and Transportation> Outbound
Delivery> Change> Single Document
T. Code: VL02N
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Creating Billing Document
After PGI, A billing Document known Commercial Invoice is created to update the
corresponding GL Accounts and same is send to receiving plant (Customer).
T. Code: VF01
To meet the legal requirement and to submit it to Excise Authorities the supplying plant
will create an Excise Invoice. It is a legal document and it must accompany the goods
when these are being sent to the Receiving Plant (Customer).
SAP User menu> Indirect Taxes> Sales / Outbound Movements> Excise Invoice> for
Sales Order> Outgoing Excise Invoice Create
T. Code: J1IIN
With reference to Stock Transport Order as created above goods are received at the
receiving plant. During entering this goods movement at receiving plant we can capture
and post the Part I and Part II of excise duty. To get Excise Invoice tab at Header Data
choose Check icon at third row at the top of the screen.
T. Code: MIGO
For stock transport orders with delivery via shipping, note the prerequisites described
below.
-Supplying plant
In the material master for the supplying plant, you must record the following data:
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Basic data
Shipping data
Accounting data
-Receiving plant
In the material master for the receiving plant, you must record the following data:
Basic data
Purchasing data
Accounting data
For stock transport orders with delivery via shipping, note the prerequisites described
below.
-Supplying plant
In the material master for the supplying plant, you must record the following data:
Basic data
shipping data
Accounting data
-Receiving plant
In the material master for the receiving plant, you must record the following data:
Basic data
Purchasing data
Accounting data
You must create a customer master record for the receiving plant. From this, both the
address and other data that is relevant for shipping, such as transportation zone and
shipping condition, are taken.
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The customer master record must be created for the organizational units. From the menu,
choose Logistics –> Sales and Distribution –>Master Data –>Business Partner –
>Customer–> Create (account group Sold-To Party).
Customizing
You assign schedule line categories and movement types in Customizing for Sales and
Distribution, under Sales –> Sales Documents –> Schedule Lines –> Assign Schedule
Line Categories.
-Shipping point
Shipping point determination depends on the supplying plant, the shipping condition of
the customer master record belonging to the receiving plant, and the loading group of the
material.
You assign the shipping point to the supplying plant in Customizing for Logistics
Execution under Shipping–> Basic Shipping Functions –> Shipping Point and Goods
Receiving Point Determination –>Assign Shipping Points.
(See also Enterprise Structure –>Assignment –> Logistics Execution –>Assign shipping
point to plant.)
Purchasing
-Delivery type
Assign delivery type NL to the combination of order type UB and supplying plant
(replenishment delivery for intra-company-code stock transfers).
If you do not assign a delivery type, you can only post the goods issue in inventory
management.
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You define the delivery type in Customizing for Purchasing under Purchase Order –> Set
up Stock Transport Order –>Assign Delivery Type and Checking Rule.
If the document type contains a delivery type but another requirement is missing (for
example, shipping data), you receive either a warning message or an error message
(depending on the system configuration) when you try to enter the stock transport order.
If you receive a warning message, you can create the stock transport order, but you can
post the goods issue for this item only in Inventory Management.
-Organizational units
Assign the organizational units (sales organization, distribution channel, and division) to
the supplying plant and receiving plant (Purchasing –>Purchase Order –> Set up Stock
Transport Order –> Define Shipping Data for Plants).
Assign the customer number to the receiving plant (Purchasing –> Purchase Order –> Set
up Stock Transport Order–>Define Shipping Data for Plants).
To better depict the customizing, Jimmy Zhang collected those settings into one picture.
Maybe it will help you to understand the settings and see the relationships more clearly.
Otherwise, You need to configure your Stock Transport Order settings for your Cross-
Company:
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Business Transaction to work.
1. Customer No. for the Goods Receiving Plant - OMGN
2. Availability Check- Checking Rule (if necessary) - OMGN
3. Assign a Delivery Type for the Delivering Plant - OMGN (for Stock Transport Orders,
NLCC)
4. PO type (which i belive you have done) - OMGN
5. Assign Vendor No. to the Supplying Plant (done) - VK02
6. Assign Customer No. to the Purchasing Plant for the Inter-Compnay Invoice (but you
need to assign this to the Sales Organization pre-assigned to the Purchasing Plant),
IMG-SD-Billing-InterCompany Billing-Define Internal Customer No. by Sales Org
***and by the way for the Invoice to work between Cross-Compnay Plants, you need
also to have a Sales Org for the Supplying Plant and a Pricing Determination Procedure
Explain STO.
STO is Stock Transport order. It is used for inter company transfer of goods. Plant to
plant transfer and even transferring raw material to Third party contractors (Job Work).
The Process is you create a STO do delivery against the STO and create a Billing
Document against the STO.
Internal customer should be assigned to the ordering plant ( MM -> Purchasing ->
Purchase Order -> Setup stock transport order -> assign the internal customer to the
ordering plant and assign the Sales area of the internal customer.
Tcode : OMGN
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Assign its Sales area to the delivering plant
Vendor master has to be created and assign the supply source ( Delivering Plant).
Delivery VL10 G —> Calculation rule (appropriate) –> Assaign the purchase order
number here and execute.
Select the Delivery creation line and do the back ground process.
Start the log display and see the delivery document number by the documents button
Goto VL02N –> do picking and PGI –> Then do the MIGO with respect to the delivery
document.
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Configure Intercompany Stock Transport Order
Internal customer should be assigned to the ordering plant ( MM -> Purchasing ->
Purchase Order -> Setup stock transport order -> assign the internal customer to the
ordering plant and assign the Sales area of the internal customer.
Vendor master has to be created and assign the supply source ( Delivering Plant).
Delivery VL10 G ---> Calculation rule (appropriate) --> Assign the purchase order
number here and execute.
Select the Delivery creation line and do the back ground process.
Start the log display and see the delivery document number by the documents button
Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery
document.
The SAP R/3 System allows you to valuate stocks of a material either together or
separately, that is, according to different valuation criteria. Split valuation is necessary
if, for example:
1. Stock from in-house production has a different valuation price than externally procured
stock.
2. Stock obtained from one manufacturer is valuated at a different price than stock
obtained from another manufacturer.
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4. Value damaged and repair part differently from a new part.
To change split material valuation once it has been set, you must
1. First post out all stocks (for example, to a cost center or with movement type 562)
2. Then change the control parameters
3. If necessary, change the automatic account determination
4. Finally post the stocks back in again
In split valuation, you 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.
Your entries are only relevant if you set split valuation as active in the function "Global
settings".
In the standard SAP R/3 System, the following valuation categories are default settings :
B procurement type
H Origin
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1. Determine the valuation categories and valuation types that are allowed for all
valuation areas:
global valuation categories via menu "Goto --> Global Categories"
global valuation types via menu "Goto --> Global Types"
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accounting data on the data screen.
Proceed likewise for the other materials, distinguishing between them by valuation
type. To do this, call up the material in
creation mode again. Due to the fact that a valuation header record exists, the system
requires you to enter a valuation
type for the valuation category.
8. Repeat step seven for every valuation type planned.
You want to valuate the stock of material XYZ that you obtain from manufacturer A in
Los Angeles at a different price than the stock you obtain from manufacturer B in Detroit.
In this case, the valuation category is H for origin. Your valuation types can be LOS
ANGELES and DETROIT.
If a material is subject to split valuation, every quantity (sub-stock) of this material must
be assigned to a valuation type (for example, country of origin).
For every valuation type, there are two types of data in the system, as follows:
Valuation data (for example, valuation price, total stock quantity, total stock value),
which is defined for every valuation type at valuation-area level and applies to all
dependent storage locations.
Stock data, which, like batch data, is managed separately for each storage location. If a
material that is subject to split valuation is also subject to management in batches, its
stock data is not managed by valuation type, but rather by batch. Every batch is assigned
to a valuation type.
The stock quantity, stock value, and valuation price for all valuation types are managed
cumulatively at valuation-area level.
Must the Valuation Type Exist Before the First Goods Receipt?
You can post the goods receipt of material of a certain valuation type only if the valuation
data for this valuation type already exists, because the system valuates the goods receipt
at the price defined in the valuation data. On the other hand, the stock data for the
valuation type is created automatically during the first goods receipt into the storage
location, if this is defined in Customizing for Inventory Management.
If you want to enter goods movements for materials subject to split valuation, you must
enter the valuation type in addition to the material number.
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SAP Batch Handling
What is a batch no. of a materail? and where can we mention batch no for material?
Can we maintain batch no in mm01 Tcode while creating material?
In simple terms SAP Batch Handling means an additional keys fields for users to identify
the same materials.
The structure of the material master record allows you to manage stocks of a material by
value at plant level or company-code level and by quantity down to storage-location
level. Under certain conditions, you may need to make further subdivisions for a material
and manage batches.
Materials that require such precise identification, for example pharmaceutical products,
are identified and managed in stock not only according to material number, but also
according to batch number.
With batch handling, you can manage not only production lots from in-house production,
but also production lots from vendors as separate entities.
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Level of Batch Number Assignment
If a material is subject to management in batches, every quantity of that material must be
assigned to a batch. Each batch of a material is identified by a unique batch number,
under which it is managed. This number is either entered by the user (external number
assignment) or assigned automatically by the system.
In the standard R/3 System, numbers are assigned to the individual materials at plant
level.
- General data on the batch (for example, shelf life expiry date, date of the last goods
receipt), which is defined in the master batch. The master batch applies to all storage
locations in which the batch is located. No stocks are managed at this level.
- Stock data, which is managed separately for every storage location in which the batch is
located.
For example, if the batch C1 of a material is spread across two different storage locations,
the stock quantity is tracked for each storage location.
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Config Setting In Batch Management
This will help you for config setting:
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1.10. Batch Determination – Strategy Types
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define Production Order Strategy Types Transaction
OPLE
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1.20. Batch Determination – Sort Rule
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define Sort Rules Transaction CU70
Use MB5M trxn and choose radio Button for " Rem.shelf life whse"
What is shelf life, and remaining self life expiration date? What is the significance in
Batch?
Shelf life is that length of time that food, drink, medicine and other perishable items are
given before they are considered unsuitable for sale or consumption. In some regions, a
best before, use by or freshness date is required on packaged perishable foods.
Shelf life is the time that products can be stored, during which the defined quality of a
specified proportion of the goods remains acceptable under expected conditions of
distribution, storage and display.
Shelf life is different from expiration date; the former relates to food quality, the latter to
food safety. Pharmaceuticals are similar. Regulations can restrict the sale and use of
pharmaceuticals which have exceeded their expiration date.
In SAP R/3 the expiration date is based on the production date and the total shelf life.
This refers for purchased materials (the date of production is entered at goods receipt), as
well as internal production of materials (date of production from a process order). The
shelf life of a material is a fixed time span in the material master and cannot be defined
on the batch level. In SAP R/3, the production date is defined as the date of goods receipt
from a production order.
In simple terms SAP Batch Handling means an additional keys fields for users to identify
the same materials.
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The structure of the material master record allows you to manage stocks of a material by
value at plant level or company-code level and by quantity down to storage-location
level. Under certain conditions, you may need to make further subdivisions for a material
and manage batches.
What is the field for " Batch Code Date " and "Shelf Life days"? And in which table
are they present.
To achieve Batch Determination with LIFO & FIFO rule you have to complete following
steps:
1) Define Batch Search Strategy: - Here you can find five different areas for which you
can define the Batch search Strategy.
Transaction Code: SPRO (Logistic General --- Batch Management ---- Batch
Determination and Batch Check Batch Search Procedure).
2) Define Batch Search Procedure: - Here you have to assign your Batch Search Strategy
to this Batch Search Procedure.
Transaction Code: SPRO (Logistic General --- Batch Management ---- Batch
Determination and Batch Check Batch Search Procedure).
You have to assign batch Search Procedure to the different Movement types.
In case of Production / Process orders you have to assign your batch search Procedures to
Production scheduling profile.
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Transaction codes are OPL8 or CORC or COR4.
As per your requirement of FIFO or LIFO rule you have to assign related Characteristic
(LOBM_HSDT , LOBM_VFDT etc.)
For FIFO purpose you have to assign characteristic with Ascending Rule and for LIFO
assign in Descending.
Here you have to assign your earlier created Sort rule with reference to material / material
types / Movement types / Production material type /Plant and Batch class which you have
maintain in the material Master.
I have done batch determination successfully in LIFO & FIFO criteria in the
following way. It worked. Try it if you like.
If you want to select the batch in FIFO criteria that is first in first out i.e. the batches that
are received first will be selected, then
- You have to create a characteristic for last Goods receipt date with table name MCH1 &
field LWEDT
- Then create batch search strategy in MBC1 transaction if you want batch determination
in production order
- Give the no. of batch splits as much as you want or just keep 999, give the batch
selection criteria if u want or just give the indicator for no selection criteria
- Then try doing the batch determination & check if you are getting what you want
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Similarly If you want to select the batch in LIFO criteria that is last in first out i.e. the
batches that are received last will be selected, then
- You have to again create a characteristic for last Goods receipt date with table name
MCH1 & field LWEDT
- Then create batch search strategy in MBC1 transaction if you want batch determination
in production order.
- Give the no. of batch splits as much as you want or just keep 999 , give the batch
selection criteria if u want or just give the indicator for no selection criteria.
- Then try doing the batch determination & check if you are getting what you want.
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chart of accounts and the actions to be taken for the different postings when the SAP
system is being installed in your company.
The SAP accounts are defined in a chart of accounts. The following accounts are
particularly important for Invoice Verification:
Vendor Accounts
There is a separate account in the sub-ledger for each vendor that all amounts concerning
this vendor are posted to . Making a posting to the vendor account is not the same as
making a payment; payment is only made when the Financial Accounting department
posts the vendor's payment to a bank account.
Stock Accounts
In the R/3 System, you do not set up a separate account for each material. Instead,
different materials with similar features are grouped together in a common account (for
example, raw materials: acids). The account relevant for a material is defined in the
material master record when a material is created. The system only posts to the stock
account when a price difference occurs for an invoice.
Tax Accounts
The system makes postings to special tax accounts when invoices include tax.
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Step 1
Vendor Account Group
IMG->LOGISTICS GENERAL->BUSINESS PARTNER->VENDOR->CONTROL
->DEFINE
ACCOUNT GROUPS AND FIELD SELECTION
Step 2
Defining Partner Schemas
IMG->MATERIALS MANAGEMENT->PURCHASING->PARTNER ->
DETERMINATION -
>PARNER SETTINGS IN VENDOR MASTER RECORD
->DEFINE PARTNER SCHEMAS
Step 3
Assign Partner Schema
IMG->MATERIAL MANAGEMENT->PURCHASING->PARTNER
DETERMINATION->PARTNER
SETTINGS IN VENDOR MASTER RECORD->DEFINE PARTNER SCHEMA
„« THEN ASSIGN PARTNER SCHEMA
Step 4
Define Permissible Partner Role Per Account Group
IMG->MATERIAL MANAGEMENT->PURCHASING->PARTNER
DETERMINATION -
>PARTNER ROLES ->DEFINE PERMISSION PARTNER ROLES
If you want a partner schema for your own document type then define your partner
schema and assign to document type using the below mentioned path.
IMG->MATERIAL MANAGEMENT->PURCHASING->PARTNER
->DETERMINATION -
>PARTNER SETTINGS IN PURCHASING DOCUMENTS ->DEFINE PERMISSION
PARTNER SCHEMAS
And then
ASSIGN PARTNER SCHEMAS TO DOCUMENT TYPE
Once you have this configuration then you change your vendor in easy access menu
(XK02-select partner function) define the partner roles.
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PO is normal where you issue the PO to a vendor and expect the delivery. The PO is
termed completed when the vendor has delivered the PO quantity or when you have
preclosed the PO when the vendor has delivered partial quantity and he has agreed not to
send anymore with ref to the PO.
Contract is where you have a contract with the vendor,may be a for a predetermined
quantity or predefined value. So everytime you need the matl, you need to make PO ref
the contract asking for the delivery of the matl. In such instance when PO is ref with
contract its called contract release orders or call off orders.
Scheduling agreement is a long term purchase agreement, where you will keep issuing
the delivery schedules whenever there is a change in requirement or at predetermined
time intervals. The delivery schedule can be on hour/daily/weekly/monthly basis. But it
will contain different zones viz. firm/tradeoff/Forecast. Firm zone schedules are
confirmed requirement and need to be taken by ordered party. Tradeoff zone requirement
is to purchase the raw materails and ordering party is liable to pay raw material cost, in
case of requirement cancellation. Forecast zone requirement is to help the vendor to plan
his requirements.
SA is also an agreement with the vendor for the supply of matl, may be a quanity or
value. The delivery dates will be maintained in ME38 ref the SA which are called
delivery schedules.So you can maintain the delivery schedule and communicate the
vendor on Forecase basis or JIT basis. And when you need some more matl then will only
create SA deliveries using ME38. SA could be of 2 types:- without release
documentation-system will transmit the delivery info to the vendor once you save the
document.
With release documentation- after creating the delivery schedules you need to create SA
release using ME84.
The main difference between contract and SA is volume of docs generated would be
higher in contract since everytime you need to make a PO ref the contract and its time
consuming, whereas SA can be integrated with MRP such that it automatically creates
delivery schedules during MRP run provided if there is a requirement to the matl.
You just have to make sure, you set up the following to run this function perfectly:
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1. Maintain account determination
2. Check field status compatibility at G/L account, posting keys in the IMG or run
SE38/RM07CUFA to display fields compatibilities.
5. Create Info record for the consigned material and vendor-consignor. Be sure the info
category is Consignment
This paper will provide you with a step by step guide to the configuration of the
Inventory Management under the MM modules.
Table of Contents
Objective
IMG Menu – The Starting Point
Start of the SAP MM Inventory Management Configurations
The Basic Material Master Configuration : Units of measurement
Where does the user maintain the UOM?
Industry Type for Material Master
Delete or Add in Storage Location for the new Plant
General Plant Settings in Inventory Management
Define the Attributes of System Messages
Start of the Number Range Configurations
Define Number Assignment for Accounting Documents
Define Number Assignment for Material and Phys. Inv. Docs
Define Number Assignment for Reservations
Start of the Individual Fields IMG Settings
Field Selection for Goods Movements Initial/Header Screens
Field Selection for MIGO
Field Selection per Mvt Type
Define Screen Layout for Movement Type
Settings for Transactions and Reference Documents
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Create Storage Location Automatically
Set Manual Account Assignment for Movement Type
Maintain Copy Rules for Reference Documents
Set Up Dynamic Availability Check
Generate Physical Inventory Documents for Goods Movements
Allow Negative Stocks
Set Missing Part Check
Default the “Delivery Completed” Indicator
For GR-Based IV, Reversal of GR Despite Invoice
Record Reason for Goods Movement
How to Define, Copy or Change a Movement Types?
Default Print Control for Material Document
Define Stock List Display for MMBE
Define Valuation Class
Configure Automatic Postings to G/L Accounts
Storage Location Indicator to allowed/disallowed Physical Inventory Freezing
Configuration for Vendor Consignment
Business Process Flow for Vendor Consignment
The Initial Inventory during Implementation
Static versus dynamic data conversion
A Sample note on Inventory Balance Conversion
Appendix A: The Inventory Goods Movement Configuration Links Explain
Appendix B: Restrict the Storage Location from any Goods Movement
Appendix C: Allows/Disallowed Goods Movement Posting to Previous Period
Appendix D: How to Archive the Materials Documents?
Appendix E: Configure the Cycle Count in SAP
Automatic Conversion of PR to PO
You created purchase requisition for various material. During creation of purchase order
you used the following path:
Purchase Requisition
.......Follow on function
.........Create Purchase Order
............automatic via purReq.
When you mentioned required purchase requisition number and execute, system give
error that purchase requisition does not contain any suitable item.
Is there any setting in customization where you can monitor and use that function.
In an effort for you to successfully use the Transaction Code ME59 to automatically
convert the current PR into PO, then the following criteria should be met:
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1) In the Purchasing View of the material master data, the "Autom. PO" field must be
clicked;
2) In the Purchasing View of the Vendor Master Data, the "Automatic Purchase Order"
field must be clicked;
3) The Outline Agreement or Purchasing Info Record shall be maintained which will
allow the automatic copying of unit price and other conditions into PO;
4) The Source List shall be maintained for the nominated vendor which was shown in
either the Outline Agreement or Purchasing Info Record.
or
or
If you're not using a source list or automatic creation of PO, you may need to assign the
requisition to a purchase information record using transaction ME56. Then it should
appear in ME58.
Fast links:
SAP version used for this post: SAP ECC (ERP Central Component) 5.0
Release Procedures (approval) can be used for Purchase Requisitions (PR), Purchase
Orders (PO), RFQ's, Outline Agreements and Service Entry Sheets. The principle is
exactly the same for all. If you can master one, you will know them all.
Our company have got 2 plants: Plant 3100 (London) and plant 3600 (New York).
- For New York (plant 3100), if PR item value is between 0 - 1000 dollars, then PR needs
to be released by one person (person B)
- For New York (plant 3100), if PR item value is bigger than 1000 dollars, then PR needs
to be released by two people (first by person B, then person C)
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- For London (plant 3600), if PR item value is bigger than 1000 dollars, then PR needs to
be released by two people (first by person A, then person C).
Key terminology:
- Release Codes - The different levels that the approval will go through.
- Release Groups - Grouping of strategies.
- Release Strategy - Unique, set of condition, sequence and levels of releases. Every line
in diagram is a Strategy (so we have 3).
- Release Indicator / Status - The status of PR as it moves through the strategy. Example
'Block' (can't create PO yet) or 'Final Release' (can create PO from PR) Here is a
summary of the steps to follow to set up our example:
- Create Characteristics & link to comm. structure (CEBAN for PR)
- Create Class & link to characteristic
- Create Release Groups & link to class
- Create Release Codes
- Release Indicator
- Set up strategies
Here we define which fields are used to determine the strategy that will kick in. In our
case we used 'Plant' and 'Item value'. Not all fields in the PR can be used. For a full list of
fields that can be used to determine the release strategy, see tcode se12 table CEBAN.
We need to create a characteristic for every field. Tcode CT04 Any characteristic name
can be used. Keep something descriptive to avoid confusion.
First go to Additional Data tab and enter the table/field (and Enter)
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The Intervals allowed will allow us to assign a range of values, example: If PR value is 0
- 1000 USD .....
Create a class (simply to group the characteristics). Again any name can be used. Tcode
CL01 -- Create Class. The Class Type must be 032.
Above actions was all master data. We now need to do some configuration. Menu: IMG >
Materials Management > Purchasing > Purchase Requisition > Release Procedure >
Procedure with classification > Set up procedure -- (tcode OMGQ in older SAP versions)
We have two groups to create AA and AB. We need to indicate the class we are working
with, in out case Z_PR.
Create all the release code / group combinations. This is all the dots in diagram above. So
we have 4.
Later on, authorization profiles will be linked to these code / group combinations.
Release Indicator
First we create the different statuses that the PR can be in throughout it lifecycle. Later on
(below), we will be linking using these statuses. Here are the standard SAP indicators; we
probably wouldn't need to add any.
Under the Details section, you can indicate which documents can be created from this
PR. For Indicator 2, one can create PO's and RFQ's.
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With Field Selection you can define which fields can be changed. This is the same
indicator that gets used with document type configuration to make some fields read only,
mandatory, hidden.
Every line in our diagram above is a strategy. So We have three Lets call them: Group AA
/ Strategy S1 -- Code L1 (for plant 0001) Group AA / Strategy S2 -- Code L1 & L2 (for
plant 0001) Group AA / Strategy S2 -- Code L1 & L2 (for plant 0002)
Fir every strategy, we need to define a release prerequisites. This indicates if one code
needs to take place before the other. In this case, level 2 (L2) can only take place if level
1 (L1) has been released.
this is also done for every strategy. The screen is dependant on what groups were linked
to the strategy as well as prerequisites that was set up. In this example:
Out of interest, the reason why there is not a L2 only option is because of the setting in
the prerequisites.
The values linked to strategies are master data (not configuration) and can be set in two
places. Either within the configuration itself -- selecting the classification button
Both methods work, the advantage of CL24N is that all the strategies can be viewed
easier.
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Firstly where the groups were created
In our example we will have three people releasing, so three profiles will need to be
created. Authorization profiles can be created using tcode PFCG.
Usages of PFCG are not being discussed here, but see below for relevant screen where
the profile was created.
Lets create a PR, and see if the release procedure kicks in. In our case we will create it for
plant 3600 and any value. So we will expect Strategy AB / S2 to kick in.
Create PR -- me51n
If no 'Release strategy' tab, then it didn't work. In this case all is fine. The user can see the
Release Group (AB), Strategy (S2) and release indicator (X).
(SAVE)
Releasing can be done per PR or collective. Lets' use the collective release. SAP Menu:
Logistics > Material Management > Purchasing > Purchasing Requisition > Release >
Collective Release -- ME55
Select all the items to be released and then hit Save. You will see the status of the item
change to the next Release Indicator.
This is the absolute basics of setting up Release Procedures for Purchase Requisitions.
Standard, Subcontracting, Pipeline, Consignment You use this component if you wish to
store information on a vendor and a material as master data at purchasing organization or
plant level.
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Standard
-------------
A standard info record contains information for standard purchase orders.
The info records can be created for materials and services with and without master
records.
Subcontracting
-------------------
A subcontractor info record contains ordering information for subcontract orders.
For example, if you subcontract the assembly of a component, the subcontractor info
record would include the vendor's
(subcontractor's) price for assembling the component.
Pipeline
-------------
A pipeline info record contains information on a vendor's commodity that is supplied
through a pipeline or pipes
(oil or water) or by similar means (electricity through the mains).
The info record contains the vendor's price for the consumption of such commodities by
the buyer
("pipeline withdrawals"). You can store withdrawal/usage prices for different validity
periods.
Consignment
-----------------
A consignment info record contains information on a material that vendors keep available
at their own cost on the orderer's premises.
The info record contains the vendor's price for withdrawals by the orderer from
consignment stock.
As in the case of the pipeline info record, you can store prices for different validity
periods.
You define source list requirements at plant level. If a source list requirement exists, you
must maintain the source list for each material before you can order it.
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To define a source of supply as "fixed". Such sources count as preferred sources over a
certain period of time. For example, the fixed vendor XXXX for material 100XX is ASA
Company for the first quarter and BSB Co. for the second quarter of the year.
Select the plants for which you wish to specify a source list requirement
You use the source list to determine the valid source of supply at a certain point in time.
The source list contains all the sources of supply defined for a material and the periods
during which procurement from these sources is possible
you make the system settings that are necessary for purchasing operations carried out
using source lists.
Source list requirement for materials, It may be necessary to include possible vendors of
a material in the source list before the material can be ordered.
The Source list requirement field in the purchasing data of the material master record
indicates whether a source list requirement exists for a material.
You can define the Source list requirement at plant level in IMG. Logistics -->Materials
management --> Purchasing --> Source list.
Here you can see the plants for which a source list requirement exists.
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SKT0 Surcharge / discount
ZPB0 Rebates
MWVS Input Tax
MWAS Output Tax
BASB Base Amount
RM0000 Calculation Schema or Pricing Procedure
(PB00 & PBXX)
RM0002 Calculation Schema or Pricing Procedure
(PB00)
PB00 --> AB00
Copy the Standard one and create new one (ours)
RM0000 contains all the condition types
We define the pricing procedure to define condition supplement for the material price.
The condition supplement specifies the discount, surcharge, freight etc that we want a
system every time to access material price condition records.
The total value of the material is calculated or based on all addition and subtraction i.e.
discounts, surcharge, tax freight etc
Condition Table
It is a table, which defines the structure of condition record key.
Condition Record
It is a data record used to store conditions or condition supplements, i.e. condition like,
discount, freight, and surcharge, Tax etc.
Condition Type
It is used for different functions. In Pricing the condition types leads you to differentiate
different types of discounts, in output determination, batch determination, difference
between two output types, such as delivery note or order confirmation, between different
strategy types
Access Sequence
It specifies the order in which system searches or access the condition records from
condition table
Difference between PB00 & PBXX
Calculation Schema
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The main function of calculation schema is to provide framework of steps for the price
determination process to specify the discounts, surcharge, freight rebate etc.
It also determines the sequence of conditions that are to be followed and in which
sequence.
Schema Group
It allows to group together the purchasing organizations, which uses the same calculation
schema.
Steps: -
1. Create Access sequence
2. Create condition types
3. Create pricing procedure or calculation schema
4. Link pricing procedure & access sequence to condition type
5. Create schema group for vendor
6. Create schema group for purchase organization
7. Assign schema group vendor-to-vendor master record in purchasing data view
8. Assign schema group purchase organization to our purchase organization
9. In info record purchase organization data enter condition types and pricing or
calculation procedure
CUSTOMIZE SETTINGS: -
SPRO --> IMG-->MM-->PUR-->Conditions -->Define price determination Process
1. Define access sequence
2. Define Condition type
3. Define cal. Schema
4. Define schema group
o Schema group vendor
o Schema group purchasing group
5. Assignment of schema group to PUR org
6. Define schema determination à determine cal schema for standard PO.
a) Definition of Condition tables ( in case standard condition tables does not suffice the
requirement ) - M/03
b) Creation of Access sequence to include the condition types created in step a - M/07
c) Creation of condition types with Access sequence created in step b - M/06
d) Setting up of calculation schema with the sequence of condition types created in step c - M/08
e) Creation of Vendor schema - OMFN
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f) Assignment of Vendor schema to your vendors XK02
g) Creation of Purchasing organization schema - OMFM
h) Assignment of Purchasing organization schema to your own purchasing organization OMFP
i ) Linking Vendor schema, Purchasing organization schema and Calculation schema. OMFO
MM Tables
EINA Purchasing Info Record- General Data
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MVER Material Consumption
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se80 – object navagator
se30 – ABAP run time analysis
su01 – user maintenance
SCC1 – client copy transport
Physical Inventory
Tickets in SD can be considered as the problems which the end user or the employee in the company face
while working on R/3. Tickets usually occur during the implementation or after theimplementation of the
project. There can be numerous problem which can occur in the production support and a person who is
working in the support has to resolve those tickets in the limited duration, every ticket has the particular
deadline alert so your responsibility is to finish it before that deadline.
To begin with , we should give “TICKET” to you for not knowing it.
Now you need to solve this ticket. You would analyze the problem and identify that the SP configuration has
to be done for the new plant.
You would request a transport for DEV CLIENT to BASIS. You do the change and Request one more
Transport to BASIS for QA client. The End user will test the same by creating a sales order for the new plant
and approve it.
Finally, you request a transport to move the changes to PRODUCTION. Once the change is deployed in
production the TICKET is closed. What I have given is a small example. You would get some real issues with
severity HIGH in your day-day support.
Handling tickets is called Issue Tracking system. The errors or bugs forwarded by the end user to the
support team are prioritized under three seviority High, Medium and Low. Each and every seviority as got its
time limits before that we have to fix the error.
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The main job of the supporting consultant is to provide assistance on line to the customer or the organisation
where SAP is already implemented for which the person should be very strong in the subject and the
process which are implemented in SAP at the client side to understand,to analyse,to actuate and to give the
right solution in right time.This is the job of the support consultant.
The issues or the tickets(problems) which are arised is taken care of on priority basis by the support team
consultants.
The work process in support projects are given below for your reference.
1. The customer or the end user logs a call through any tool or by mail (RADIX).
3. Whenever a customer logs a call he /she has to mention to which work group (by name).
4. Once the calls came to the work group the support consultant or the team need to send an IR (Initial
Response) to the user depending upon the priority of the calls. (Top,High,Med,Low,None)
5. Then the error is fixed, debugged by the support consultant or the team. Then after testing properly by
generating TR(Transport Request through the basis admin)
6. Then it is informed to the end user/customer/super user about the changes which have moved to the
production server by CTS process.
These are the process. In summary, what I understand is that if any configuration or customization is
required to solve the issue, then the consultant have to work on DEV Client, then the end user will test it in
the QA client and after approval the BASIS consultant has to transport it to the PRODUCTION
For Import PO
- You should have different Pricing Procedure ,with all the Duties conditions defined.
- Import Vendor , with import currency
- Different Document type for import PO, in the PO for the Customs conditions give the Customs
Vendor code.
- In PO tax code to be Zero or Nil %
- Do MIRO for Customs Vendor before doing MIGO
- Aftre doing MIRO do GR for the Item ( in MIGO you will get popup for the MIRO document done,
excise details from this is populated in to the PO )
JCV1, JECV, J1CV and JADC will go to Excise MODVAT Accounts and JCDB, JEDB and JSDB
will get loaded on inventory.
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In M/06, for all above conditions, keep following controls;
Import scenario
In case of Normal Import Purchase, you will be aware of maintaining the Vendor Code of
Customs Office against the following condition types;
Use above conditions and Customs Office Vendor when you have to pay duty to Customs Office.
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In case of Advance License,
Here in this case, create following condition types in addition to above conditions and assign in
the Import Pricing;
And create Vendor Code for each Advance License No and assign this Vendor Code against the
following condition types in Import PO;
1. First you create Import PO and input all the Import duties in PO.
2.Then you do LIV for Customs Office (Here you enter all the Import duties as per Bill of Entry)
and following A/c entry get generated;
4. Then you do GR w.r.t. Import PO (MIGO), Accounting Entry will come as following;
5. Post Bill of Entry in J1IEX, and Accounting Entry will come as following;
CENVAT Receivable A/c (BED, ECS, SECess and ADC) - Dr (From Account Detmn of GRPO with
Sub Trans Type - IP)
CVD Clearing A/c - Cr (From Compnay Code Settings of Excise)
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JCDB IN:Basic Custom Duty
JCV1 IN : CVD
JECV IN : Ed Cess on CVD
J1CV IN : H&SECess on CVD
JEDB IN : Ed Cess on BCD
JSDB IN : H&SECess on BCD
JADC Addnl Duty of Custom
JCDB, JEDB, JSDB will get loaded to Stock and JCV1, JECV, J1CV and JADC will get posted to
CENVAT Receivable A/c
In M/08, assign A/c Key ZCC to JCDB, JEDB, JSDB conditions and Customs Clearing A/c in
OBYC and A/c Key ZCV to JCV1, JECV, J1CV and JADC conditions and CVD Clearing in OBYC.
Note: - Here you don't have to use Tax Procedure Accounting (OB40) in case of Imports. Only
maintain a Zero % Tax Code in Import PO.
SPRO > Logistics - General > Tax on Goods Movements > India > Basic Settings > Determination
of Excise Duty > Maintain Excise Defaults > Here assign following for Tax Procedure;
Also do account determination in OBYC as your have already done for MIRO of Customs Invoice.
Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Basic Settings >
Maintain Company Code Settings > Here Assign CVD Clearing A/c in your Company Cod
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