Sap Logistics 13

SAP MM END USER MANUAL
SAP ERP (Enterprise Resource Planning) is commercial software that will integrate
all information altogether in a single software considering various factors like time
and cost. Organizations can easily meet their business demands with the help of
SAP.
SAP Business Process

SAP MM is known as SAP Material Management system. SAP MM role in business
process is as follows:
 A business process in SAP is termed as “Module”.

 SAP Materials Management (MM) is a part of Logistics area and helps to manage the procurement
activity of an organization from procurement.
 It supports all aspects of material management (planning, control etc).
 It is the backbone of the Logistics area which incorporates modules like Sales and Distribution,
Production Planning, Plant Maintenance, Project Systems, Warehouse Management which are extremely
obsessed on Materials Management module.
Features of SAP MM
The features of SAP MM system are as follows:
 SAP MM is one of the modules of SAP that deals with material management and inventory
management.
 Material Management process ensures that there is never a shortage of materials or any gaps in the
supply chain process of the organization. SAP MM speeds up the procurement and material management
activities making the business run smoother with complete time and cost efficiency.
 It deals with managing the materials (products and or services) resources of an organization with the
aim of accelerating productivity, reducing costs and increase improvement and at a similar time be
versatile to accommodate changes in day to day life.
 It deals with the Procurement Process, Determination & Valuation of Material, Requirement Planning
etc.
Master Data (Material & Vendor Master), Account
Inventory Management, Invoice Verification, Material

Procurement of Stock Materials
Procurement of Stock Materials– Raw Material Local / Return
1.1.1 Purpose
This process describes the procurement process of raw materials from indigenous source of supply with
Country Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST)
process.
1.1.2 Prerequisites
The following scenario specific master data must be created for operation of this building block.
Material Master Record

Vendor Master Record
Purchase Info Record (Optional)
Source List (Optional)
CIN Master Data
Excise Condition Record (if Tax applicable for the Vendor-Material Combination)
1.1.3 Material Master Record
Menu PathLogistics Materials Management Material Master Material Create (General)
MM01 – Create T Code MM02 – Change

MM03 – Display Internal Number
Enter the Industry Sector

Enter the Material Type
Press Enter to see the pop-up window.
Select the required views and press Enter to input the organizational levels.
Press Enter to input the details of the Material.
Basic Data Views
Enter the Material
Enter the Unit of Measure and material Group
Enter the division if Stock Transfer will happen for this
Blocking for Procurement or BOM enter here
Enter the Gross and Net Weight for the Finished Goods
Enter here if the material is returnable packing as VERP and non returnable packing as LEIH Press
Additional Data to maintain Alternate Unit of
Enter any Basic Material is there
Press Additional Data to maintain the Alternate Unit of Measures (for e.g. 1000G= 20Nos for the Semi
finished goods)
Press Main data to go to the next view
Purchasing Views
Enter the Purchasing Group

– Person/Group responsible to procure this material
If the Ordering Unit is other than the Base UoM, enter the Unit and make VAR. OUn as 1
Enter the Purchasing Value Key as G1 (5% Delivery Tolerance) or G2 (10%
Select if QM is not active and want to post to Inspection Stock (Mainly used for
Source list should be

maintained for this material
Enter the No. of Days required

for GR Processing once the
material is arrived at factory.
Enter the PO Text normally specification is maintained
MRP Views
Enter the appropriate MRP Type)

Work Scheduling View:
Quality Management View
Accounting Views
Enter the appropriate Valuation Class (Various Valuation Classes given below)
Enter the Price Control as V-Moving Average and S-Standard
If Price Control is V enter the Moving Average price, S enter the Standard Price
Costing Views
Enter Respective Profit Centre of Plant/Depot

After entering all the details, press
to save the Material.
1.1.4 Vendor Master Record
Logistics Materials Management Purchasing Master Data VendorMenu Path Central

XK01– Create
T Code XK02– Change
XK03– Display
Vendor Number to be put manually
Enter Company Code Enter Purchasing Organisation

Enter Account Group (Various
Group given below)
Press Enter to input the details of the vendor.

Vendor Account Groups:
VDOM Domestic Vendors
VIMP Import Vendors
VSRV Service Vendors
General Data
Click on the CIN Details to enter the Vendor Excise and Sales Tax details
Excise Indicator for Vendor as 1
– 100% Taxable
Enter the detail in the respective field

Enter whether this vendor is approved or on Probation
No need to enter in the below screen.

Accounting Data
Enter the appropriate Reconciliation
Accounts (Various Accounts given below)
Reconciliation Accounts:
Enter the appropriate Payment Terms and Select the Chk double inv
Enter the appropriate Payment Methods C – Cheque, E– Cash Payment, T– Bank Transfer
The below screen is explained in detail in FI User Manual:

Purchasing Data
Enter the Order Currency, Terms of Payment and Incoterms
Enter the appropriate Schema group, Vendor (Various groups given below)
1. Select GR-based Inv. Verf if Invoice verification is done after GR

2.. Select the Srv-based Inv. Verf if Invoice Verification is done after Service Entry sheet.
Schema group, Vendor:

DM Domestic Schema
IM Import Schema
Enter the Partner for the appropriate Partner Functions
Press
to save the Vendor master and the no is generated automatically.
1.1.5 Purchasing Info Record
SAP Easy Access

Menu Path
Data Info Record Logistics Materials Management Purchasing Master Create
ME11 – Create T Code ME12 – Change

ME13 - Display
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. You can create purchasing info records for different procurement
types (standard, subcontracting, pipeline, consignment).
Enter the Info Category as
Standard – For normal Procurement (Domestic, Import, etc)
Sub-Contracting– For Sub-Contracting
Press enter the details in the Purchasing Info Record.
If the message is displayed like this,

intimate the Quality Person to maintain
the QM Info Record (TCode: QI01)
No need to enter anything in the below screen as it copies all the data from the Vendor Master.
It is defaulted from the Material Master but change for this VendorMaterial combination if different.
Enter the Standard Quantity

Enter the appropriate Tax Code
Enter the Net Price

Result
Purchasing Info Record is created
Example
Purchasing Info Record 5300000384 is created.
1.1.6 Source List
SAP Easy Access Logistics

Menu Path
Data Source List Maintain
ME01 – Maintain
T Code ME03 – Display
ME04 - Changes
Materials Management Purchasing Master
Enter the Material No. and Plant

Select if the
Select if the Vendor is blocked for Procurement for this particular Vendor is fixed material alone
Enter 1 to be
included in MRP Run
Maintain the Validity Enter the Vendor and

Period till until which you Purchasing Organisation
will procure this material
from this vendor
Result: Source List changed.
1.1.7 CIN Master Data
Menu Path J1ILN SAP Menu Indirect Taxes Master Data Excise Rate Maintenance
T Code J1ID
Chapter IDs
Select Chapter ID and Press

Press New Entries to Create New Chapter ID
Press New Entries to go to the next screen.
Enter the Chapter ID
Enter the Description as per

Press
to save the data.
Material ID and chapter ID combination
Select the Material and Chapter-Id Combination
Select Material and Chapter ID Combination and Press
Press New Entries to Create New Material Number and Chapter ID
Enter the Material No. and Chapter ID Combination

Enter the material type based on the Material Nature
Press
to save the data.
Vendor Excise Details
Either you can maintain here or else in Vendor Master.
Select the Vendor Excise Details

Press New Entries to Create Vendor Master Excise Press
to save the data.
Excise Indicator for Plants
Select the Excise Indicator for Plant
Select Excise Indicator for Plant and Press
Press New Entries to Create Plant Excise
Press
to save the data.
Excise Condition Record
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System automatically
calculates the applicable excise duties using the condition technique.
Procedure
Access the transaction choosing one of the following navigation options: SAP R/3 menu No Menu path
available for this transaction
Transaction code FV11
Enter the appropriate Condition type (various condition types given in next page) and maintain the
respective values.
Enter the appropriate condition type

Various combinations to maintain the condition record
For Raw Material / Packing Material maintain the Plant/Vendor/Material Combination. For Service
Tax /Assets maintain the Plant/Material Group Combination.
.
Enter the Plant and Vendor
Enter the Material No. Enter the Value / amount
3. Press Ctrl+S or
4.
Result Condition records saved.
Request for Quotation (RFQ)

1.2.1 Use
Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.
This transaction is optional for the process.
1.2.2 Procedure
1. Access the transaction choosing one of the following navigation options: SAP R/3 menu
LogisticsMaterial Management Purchasing RFQ/quotation Request for QuotationCreate Transaction
code ME41
2. RFQ can be created with reference to Purchase Requisition, Outline Agreement (Contract) and
another RFQ.
3. On the Create RFQ: Initial Screen, make the following entries:
Enter the RFQ type as “AN”

Enter the Quotation Deadline
Enter Purch. Organisation as 1101
Enter the respective Purchasing group
Press this button to enter the Collective
No and Vendor Reference
Enter the appropriate Item category for SubContracting & Service 1. Enter the Material No
2. Enter the RFQ Quantity
3. Enter the Deliv. Date
4. Enter the Plant if it is Plant specific Enter the Submission date
Choose
(header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter information in
the fields as specified in the table below:
Press this button to enter the vendor
code for which it has to be sent?
Enter the Collective No to have a track of all RFQs related to particular instance
Enter the Your Reference if any
reference given by the vendor
Choose
(vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter
information in the fields as specified below:
After entering the vendor code and pressing enter the details of vendor will be displayed automatically.
Press
to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the
same RFQ data to a new vendor by following the steps outlined above.
1.2.3 Result
RFQ created
Similarly create for other vendor in the same screen and various RFQ Nos will be generated
1.2.4 Example
RFQ created under the number 6000000000.
Message output: RFQ

Use
A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.
1.3.2 Procedure
Access the transaction choosing one of the following navigation options:
SAP R/3 menu

LogisticsMaterials ManagementPurchasing
RFQ/QuotationRequest for QuotationMessages
Print/Transmit
Transaction code ME9A
2. On the Message Output screen, make the following entries: Enter the RFQ Nos to be printed and
Execute (F8)
Press this button to Execute
Select the check box For Printout click this button which will create Spool Request. For Print Preview
click this button For Direct Printout click this button
You will see out put as
Maintaining Quotation
Use
This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates
price for material and as a result the RFQ (Request for Quotation) needs to be updated. This transaction
is optional for the process.
1.4.2 Procedure
Access the transaction choosing one of the following navigation options: SAP R/3 menu
LogisticsMaterials ManagementPurchasing RFQ/quotationQuotationMaintain Transaction code ME47
2. On the Maintain Quotation: Initial Screen, make the following entries:
Choose the Enter key, or choose

green Enter icon to proceed.
View the screen “Maintain Quotation: Header Data” by Choosing on the Header data icon in the toolbar.
Enter information in the fields as specified in the table below. Some fields will not be available for input,
as they are reference fields only.
2. Press to enter the conditions
1. Press to select the line
Once all necessary header data has been maintained, the user can then enter the price information in one
of two fashions:
Enter the Conditions given by vendor.
Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by Choosing
overview icon on toolbar.
To enter more detailed information in addition to the net price, select the line item and choose the Item
Details icon. Choose the green Back arrow to return to the„Overview‟ screen once data has been
maintained.
A vendor ‟s quoted price can be entered in one of two ways.

Enter the net price per unit in the Net price field. This price includes the vendor's normal discounts and
surcharges only. Cash discounts (for prompt payment) and taxes are calculated separately.
Enter the gross price in the Net price field, and maintain the conditions for the item. Then the system
automatically replaces the entered gross price with the calculated net price. If the net price for an item is
entered for which pricing conditions have been maintained, the system always replaces the price entered
with the calculated net price. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales
Taxes etc.) in the Tax code field. If a purchase order is created by referencing an RFQ, this code
facilitates the determination of the tax amount when the invoice is entered in the system.
After entering tax code, after choosing this system may give an information message showing the
effective price, Choose Enter to continue.
Once all quotation information has been successfully entered, save the data by Choosing on the Save
button, or Choose the <Ctrl + S> keys. A message will be displayed that the data has been saved.
1.4.3 Result
Quotation is maintained.
Maintain the same for other RFQs.
1.4.4 Example
Quotation for RFQ 6000000000 maintained.
Price Comparison
1.5.1 Use
Required to compare prices from all quotations received as a result of a competitive bidding process.
1.5.2 Procedure
LogisticsMaterials ManagementPurchasing RFQ/QuotationQuotationPrice Comparison Transaction
code ME49
2. On the Price Comparison List screen, make the following entries:
Enter the Purchasing Organisation
Enter the Quotations to be compared or the Collective RFQ
Parameters included for Comparison
Choose the comparison values to be used:
Reference quotation: You can compare the quotations within the list with a sample quotation. The
system displays the percentage deviation between each quotation in the list and the sample quotation.
Mean/minimum value quotation: The price comparison list can also display a "fictitious" quotation
reflecting the average or minimum value of all quotations. Select either the "Mean value" or "Minimum
value" quotation field to choose the type of fictitious quotation. Percentage basis: The price comparison
list displays the percentage of each item in relation to the maximum, minimum, or average price. To
determine the display type, enter one of the following:
+: The highest value for each item is the 100% value

: The lowest value for each item is the 100% value _:
The mean value for each item is the 100% value
Select the desired price computations:

Select the appropriate field to determine which of the following should be included in the determination
of the comparison price:
Include cash discounts

Include delivery costs
Determine effective price
Once all entries have been made, Choose the Execute.

On screen “Price Comparison List in Currency INR”, view the Price Comparison list.
Rank is Mean and

generated Effective Price is
automatically highlighted
To view any of the following information for a particular quote included in the comparison, Choose the
RFQ number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar:
6. Display Material:
7. Display Vendor:
8. Additional Info: Allows the user to view the purchasing data in the material master record. Allows the
user to view the vendor master record.
Allows the user to view payment terms, bid dates, currency information for all the vendor quotations in
the list.
If any information has been modified through the comparison list, save the RFQ before exiting. If
changes have been made and the user attempts to exit without saving, the system will return a message
to verify action. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose
the F3 button.
1.5.3 Result
Price Comparison List in Currency INR is displayed on the screen.
Creating Purchase Requisition Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant Maintenance
Purchase Requisition is generated automatically from Plant maintenance Order.
Procedure

SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchase RequisitionCreate
Transaction code ME51N
2. On the Create Purchase Requisition screen, make the following entries:
Enter Material No. Enter required

Quantity
Enter the Desired Vendor if Vendor is known to the person who is creating PR
Press
or Ctrl+S to Save the Purchase Requisition.
Result
Example
Purchase requisition number 0010000000 created.

Release Purchase Requisition
Procedure

SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchase RequisitionRelease Individual
Release
Click Other Purchase Requisition
Enter PR No.
Click This Icon to Release PR
Click This Icon to Release Click This Icon to Save
Assign and Process Purchase Requisition Use
This section explains the functions provided by the SAP System for converting requisitions into external
purchasing documents (purchase orders, contract release orders, scheduling agreement delivery
schedules, RFQs), and the processing options thereby available to you:
Assigning means defining the desired source for each purchase requisition item Further processing
involves generating lists of requisitions that have been assigned or flagged as outlined above, and the
subsequent creation of RFQs, purchase orders, or lines of delivery schedules under scheduling
agreements.
Procedure
2. Access the transaction choosing one of the following navigation options:

SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchase RequisitionFollow-On Functions
Assign and Process Transaction code ME57
The assignment of sources to and further processing of purchase requisitions are two distinct functions.
You can choose whether you wish to perform the functions in two separate steps or in just one.
Below are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate Purchasing Group

2. Enter the Scope of List as B1 for PR generated through MRP Run and A for remaining PR
3. Enter the appropriate Plant
1. Select the Assigned Purchase Requisition (For Spares PR normally the End User may have entered
the Vendor in the PR) 2. Select the appropriate Check boxes for Processing the PR
5. Press
or F8 to enter into the next screen.
1. If Source List is
available click this button

After assigning the source
click on to this button to
process the PO or else save
for the assignment of source
1. Select the check boxes required PR which are to be converted in to Pos. 1. Since only one source is
assigned in Source list system assigns the source automatically or else if more than one source available
a Popup window will be coming where one vendor has to be selected.
O is explained in next chapter.

1.8.3 Result
The source is assigned to PR and can be processed for PO.
Purchase Order Use
A purchase order is a legal document used to record an individual purchase with the vendor. It also
provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice
verification) processes. The purchase order is a commitment to a vendor for a given material, in a
specified quantity at a predetermined price and delivery date.
This transaction is mandatory for the process.
Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
1.9.2 Procedure
LogisticsMaterials ManagementPurchasingPurchase OrderCreate Vendor/Supplying Plant Known
If you want create purchase order with reference to the purchase requisition, on item details screen enter
the purchase requisition number and item number at Purch. Req. field. System will automatically adopt
all the data from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt
Press this button to view
the Tax Calculation
Press this button to

view the message
Check the PO
before Saving
1.9.3 Result
Purchase Order is created.
1.9.4 Example
Standard PO created under the number 210000000.
1.10. Release Purchase Order

1.10.1. Procedure

SAP R/3 menu
LogisticsMaterials ManagementPurchasingPurchase Order Release Individual Release
Click Other Purchase Order
Enter PO No.

Click This Icon to Release
Click This Icon to Save

1.11Message Output 1.11.1 Use
A Purchase Order needs to be printed for transmitting to vendor.
Procedure
LogisticsMaterials ManagementPurchasingPurchase OrderMessagesPrint/Transmit
Transaction code ME9F
3. On the Message Output screen, make the following entries
4. Choose
to Execute.
5. On screen Message Output select the appropriate Document number and perform the following:
Choose Output Message and/or

Choose Display Message
and/or Choose Message Detail
and/or Choose Trial Printout.
Goods Receipt for Purchase Order Use
Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods
movement is entered into the system referencing this PO and a goods receipt material document is
posted. Appropriate general ledger accounts are also posted and stocks are updated.
1.12.2 Prerequisites
Purchase Order
1.12.3 Procedure
SAP R/3 menu

LogisticsMaterials ManagementInventory Management Goods MovementGoods
ReceiptFor Purchase Order PO Number Known
Transaction code MIGO
On the Goods Receipt Purchase Order screen, make the following entries:
Check for correct
movement type whenever doing goods movement

Enter the Purchase Order No and Press Enter
After pressing Enter system will fetch all the data from the Purchase Order as shown below:
Whichever material is in Blue those detail will be seen in the Item detail
System defaults the balance quantity in PO, change the quantity to the received quantity:
Enter the Storage Location in which

the material to be placed.
Enter the Delivery Note
details of the vendor
Select Item Ok and Press Enter and the Excise
tab will appear both in Header and Item Level
Field name Goods
Receipt
Purchase Order
Description Goods Receipt
Purchase Order
Movement Type
R/O /C User action and values R Select from drop down list for action
R input the PO number which generated above

4500000277
101
Comment
Document
Date
Delivery Note Document Date
Enter
R Enter document date
in Header
Vendor Vendor
Posting Date Bill of lading Header text Posting date Bill of lading Header text
O Delivery Number from Vendor
R Defaulted from purchase order
R Enter posting date O Enter bill of lading O Enter header text
Close Header Detail data to enlarge the Detail data. Select Material tab at Detailed Data.
Material Material tab R Defaulted from Purchase Order
Grayed out
Grayed out
Select Quantity tab in Detail data. Qty in unit of Quantity in unit ofR entry entry
Qty in Quantity in delivery O delivery note note
Select Where tab in Detail data. Movement type R Movement type

Stock type Stock type R
Plant Plant R
Storage location Storage location R
Goods
Recipient
Goods Recipient O Enter the quantity you have received from vendor. As a default system will give
purchase order quantity Enter the quantity as per vendor delivery challan Quantity
defaulted from Purchase Order
Defaulted from header screen
Defaulted from material master or purchase order Defaulted from purchase order
1000
Defaulted from purchase order if entered
1010
Enter the name of person who received goods
Unloading Unloading point O
point
Text Text O Enter the text if required
Select Purchase Order tab in Detail data.
Purchase Purchase Order RDefaulted from header data Grayed out Order
Qty = GR Qty
Del. Delivery completion O Defaulted by system if PO completed indicator
ind.
Select Partner tab in Detail data.
Vendor Vendor name OGrayed out
For this material batch management is not active. Just for reference purpose the
following data is given.
Select Batch tab in Detail data.
This tab will come only if material is managed in batches.
Proceed with the following steps if material is batch managed only. Batch Batch
number
Vendor batch Vendor batch R
Enter batch number as date for batch managed

materials
O
Enter vendor batch number for reference
Select the Check box Item OK, after entering all the data.
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and
for posting Part I and Part II.
6. On the Excise Invoice tab at Header Data make the following entries. Select Appropriate Excise
settings While posting in Case of dealer only
System defaults the Excise Duty (BED & ECS)
Field name
Capture &
Post Excise invoice
Excise Group Excise

Invoice
Description R/O/C
Capture & Post Excise R Invoice on Excise

Action
Excise Group R Excise invoice R

Excise Inv. Date
BED
Excise Invoice Date R
Basic Excise Duty R
AED Additional Excise Duty R
SED Special Excise Duty R
NCCD NCCD R
ECS Education Cess R
User action and values
Choose Capture & Post Excise Invoice from drop down list
Defaulted by the system Enter the vendor Excise Invoice number

For example:
D013
Enter the excise invoice date of vendor
Defaulted from purchase order
Defaulted form purchase order
Comment Defaulted
Grayed out
Grayed out
Grayed out
Grayed out
Grayed out
MRP MRP Indicator O Indicator
Tick the check box

Note: If the Base Price in PO is the inclusive of both the Material Cost and Excise Value choose the
check box
Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed
Data (at the last). Chapter ID Chapter ID of material
EI Quantity Excise Invoice Quantity
Base Value BED

AED
NCCD
SED
ECS
Base value of material Basic Excise Duty Additional Excise Duty NCCD
Special Excise Duty Education Cess
R Defaulted by the system No action required
R Defaulted by the system from Goods Receipt quantity
R Defaulted by the system R Defaulted by the system O Defaulted by the system O Defaulted by the
system O Defaulted by the system O Defaulted by the system
Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor Excise
Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All other
information is defaulted by the system. Hence, no action required by the user.
Choose Check at the top of screen.
Choose Post to post the document. Enter Excise Invoice

No. and Date vendor
Also See the account postings
1.12.4 Result Material document 5000000009 posted

1.12.5 Example
Material document 5000000009 posted

1.13 Logistics Invoice Verification 1.13.1 Use
In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their
content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The
system updates the data saved in the invoice documents in Materials Management and Financial
Accounting.
1.13.2 Procedure
LogisticsMaterials ManagementLogistics invoice VerificationDocument EntryEnter Invoice Transaction
code MIRO
If you are opening for the first time this transaction, system will ask for Company Code, please give
1000 to go in side the transaction.
On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:
Enter Invoice Date
Enter the PO No. Change Defaulted V0 Tax

code and tick Calculate
tax tab
If Part II entry is not done then system will not allow you to POST Invoice
Unless and until you post part2 system will not allow invoice verification
Enter the amount
Field name Description R/O /C User action and values Comment

Transaction Invoice R
Header Data Basic tab

Header data of Invoice R Basic information tab R
Invoice Date Invoice Date R

Reference Invoice reference O
Posting date Posting Date R Select Invoice from drop down list
Defaulted by system
Select basic information tab to give initial information Enter the Vendor invoice date
Enter the vendor invoice reference
For Example
USERMANUAL
Enter the posting date of document
Amount Invoice Amount R
Currency R
Calculate tax Check box calculate O tax
Tax code R
Bus.place/se ctn
Business place or R section code
Text Text O
Payment tab BaselineDt Payment tab R
Base line date for R payment

Enter invoice gross amount including taxes and duties 299,960.20
Enter the currency in which the bill is presented by vendor, if not entered by user system will default the
document currency from purchase order
INR
Check this tick box, system will calculate tax amount Select the tax code from drop down list
V1
Enter section code if Tax deduction for source is active for this vendor
Enter text if required for reference

Select payment details tab
Enter the base line date for payment

Leave blank for this process
Will be defaulted if payment terms entered in PO
Pmnt terms Payment terms O

Due on Payment due on O
Payment terms of
document, if entered will be defaulted from purchase order
Will be calculated by
system
System will give current date as default
Amount
mentioned is
only an example
Grayed out Discount Cash discount O Enter if cash discount is offered by vendor
Hide Header data for getting full screen of items if required. Purchase order /
Schedule Agreement
Purchase order number
Goods / service items
Layout Layout of invoice verification
R Select Purchase order / Schedule Agreement in the reference document category from drop down list
R Enter the first purchase order number generated above
R Select Goods / Service items in indicator from drop down list
R Select All information from drop down list

Choose Enter Defaulted
Choose Enter to complete the document feeding part. Defaulted for user
To check the document credit and debit is balanced on the top right corner of your screen a traffic light
is displayed. Beside that Balance of the document is displayed.
Ensure that the Balance is ZERO before posting the document and the traffic light is green or
yellow color.
If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth
row of your screen.
Check Simulate Tab
7. Choose Save / Post, for posting the document.
1.13.3 Result
Logistics Invoice verification document is posted.
1.13.4 Example
Document no. 5105600102 created
1.14 Returning Delivery 1.14.1 Use
A material has been received and it needs to be returned for various reasons (i.e. poor quality,
incomplete, damaged). The user can use this transaction to return the material to the vendor via the
original GR document.
This transaction itself is an independent transaction and it is not mandatory in J81 process. This Return
Delivery transaction is used only when material is rejected and needs to be returned to vendor.
If material is rejected by using QM process there is no need to this transaction. This transaction
can be used only without QM process materials.
This transaction is used basically when purchased material is needs to be sent back to vendor
because of various reasons like poor quality, incomplete items, damaged etc.
b)
Bore proceeding with return delivery to vendor please ensure that sufficient stock is available in
storage location and if batch managed in particular batch stocks also. Other wise system will give error
message.
Before doing Return Delivery to vendor, check if you have already done Invoice Verification to that
Goods Receipt. If you have already done invoice verification please raise Credit Memo to the extent of
Returns quantity and then proceed with this process. Other wise system will give an error message. How
to create Credit Memo transaction is explained in the chapter mentioned 1.17 below.
1.14.2 Procedure
SAP R/3 menu

Select Return Delivery from drop down list to make Return Delivery to vendor.
On the Return Delivery Material Document screen, make the following entries:
Enter the quantity to be returned to vendor
Select Blocked Stock to Return the rejected Material
Enter the appropriate Reason for Movement
Field name Return
Delivery
Material
Document
Description
Return Delivery
Material Document number
Document
Date
R/O /C User action and values Comment R You have already selected
in above step 2
R Select from drop down list
5000000189
Enter the material

document number which
you have made at the time
of Goods Receipt for
purchase order
Enter
in Header
Posting Date Posting date
O Delivery Number. Will be defaulted if you have already entered in original document
R Enter posting date

Bill of lading Header text Via Delivery
Bill of lading Header text Via Delivery
O Enter bill of lading. O Enter header text R Tick the check box
Grayed out
Select Quantity tab in Detail data.
Qty in unit of entry

Quantity in unit ofR entry
Qty in
delivery note
Select Where tab in Detail data.
Movement type
Stock type Quantity in deliveryO note

Enter the quantity you want to return to vendor. As a default system will give original Goods Receipt
quantity
5000
Enter the quantity
100000
You can not

return more than what you have in stock
Movement type R
Stock type R
Plant Plant R
Goods
Recipient Unloading point
Reason for Movement
Goods Recipient O Defaulted by the system with 122 movement
Enter stock type from drop down list

Defaulted from original Goods Receipt
1000
Enter the store location from which you want to return to vendor
Unloading point O
Reason for Movement R
Text Text O
Select from the drop down list the reason for this movement of material 0001
Enter the text if required
Select Purchase Order tab in Detail data. Purchase Purchase Order R Order
Defaulted from header data Grayed out
Grayed out Del. Delivery completion R completed indicator

ind.
Select Partner tab in Detail data. Vendor Vendor name O
Select Batch tab in Detail data. Defaulted from purchase order
Grayed out
Proceed with the following steps if material is batch managed only. Batch Batch
number
Vendor batch Vendor batch R
Enter batch number if externally maintained by you or system will allocate batch number
O
Enter the Goods Issue Indicator as IPD

Enter the Sub type as PR for Vendor Returns
Field name
Select Create Excise

Invoice
Excise Group Series Group Removal time
BED
Description R/O /C Select Create Excise R Invoice
User action and values Choose Create Excise Invoice from drop down list
Comment
Select from drop down list
Excise Group R Excise Series group R
Removal time of R goods

Basic Excise Duty R
Defaulted by the system Defaulted by the system

System defaults current time, change if required Defaulted from purchase order
Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed Data (at
the last). Chapter ID Chapter ID of material R Defaulted by the system No action required
Grayed out
Grayed out
Grayed out EI Quantity Excise Invoice R Quantity
Base Value BED
Goods Issue Indicator
Base value of material R Basic Excise Duty R Goods Issue Indicator R
Defaulted by the system from return delivery

document
2
Defaulted by the system Defaulted by the system Select from drop down list IPD for this process
Choose Check at the top of screen. Choose Post to post the document.
Result Return Delivery document created Example
Return Delivery Document No. 50000000011 created.

Note: Excise Invoice for Return delivery also will be generated in the back ground for this transaction
1.15 Excise Invoice Other Movements
1.15.1 Procedure
1. Access the activity choosing one of the following navigation options:

SAP CIN R/3 Indirect taxes Sales / Outbound Movements Excise Invoice User menu For Other
Movements Excise Invoice for Other Movements Transaction Code J1IS
2. On the Excise Invoice Other Movements– Main Menu screen, make the following entries:
3. Choose Display Excise Invoice icon to start the transaction

Enter the Sub type as PR
for Vendor Returns
Field name Reference Doc Number
Description R/O/C User action and values Comment

Document Number
Doc Year Document year
R Enter the return delivery document number which you have created in above step
0000000126
R Enter the year of document created

Example: 2006
Enter
1.15.2 Result
Excise invoice generated is displayed.
1.15.3 Example
Excise invoice 0000000014 generated and displayed.
1.16 Posting and Printing the Excise Invoice 1.16.1 Use
Excise Invoice has to be printed and sent along with the material. This is legal requirement in India.
Excise Invoice Document is generated and posted.
1.16.3 Procedure

SAP CIN R/3 Indirect taxesSales / Outbound MovementsExcise Invoice User menu For Other
MovementsPost and Print
Transaction code J1IV
2. On the SAP screen, make the following entries:
3. If the document is not posted in step mentioned above, Choose Release to Accounting to post
Financial Accounting document.
This transaction is used to just printing of excise invoice.

4. Follow the steps mentioned below for taking print of Excise Invoice.
Excise
internal
reference
Select internal excise invoice number from drop down list, you can find it with reference to the Excise
Invoice number generated in above step 1100400070 for example with the combination of Excise Group
10 and vendor code 10006.
Document Document Number R

No.
Enter the Excise Invoice
Document Number
generated in above step
For example: 127
Document Document Year R

year
Enter the document year
2006
To take printout, select Goto from the top main menu and select Print Document from the list. Or
Choose Control + P to get the access of Excise Invoice Printing screen.
6. Choose Execute icon to get list of excise invoice ready to be printed.
From the list select the excise invoice number by choosing the check box left side of number.
To take printout on printer Choose the Printer icon or Choose F8.
To display excise invoice on screen Choose Display icon or Choose F9.
System will give popup asking for pre-printed invoice serial number, Enter pre-printed excise invoice
number. In this process Choose 99 for testing purpose (since it is not expected to have pre-printed
invoice for testing purpose).
Select printer from the drop down list. Check box for Print Immediately and New spool request.
Choose Print Preview or Print icons to display on screen or to print on printer mentioned above. If
printer is connected system will print the document on printer.
1.16.4 Result
Excise Invoice is printed.
1.17 Credit Memo 1.17.1 Use
In this process of Logistics Invoice Verification a credit memo is generated on vendor . Please be
careful that during the total process after making logistics invoice verification you have made
return delivery to vendor. To recover that money you need to do this credit memo transaction.
Logistic Invoice Verification is already made
1.17.3 Procedure
code MIRO
3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:
Select Credit Memo in this tab
Put the Qty and Price
to be returned
Transaction Credit memo R

Posting date Posting Date R
Select Credit memo from drop down list
Defaulted by system

Amount Credit memo Amount R

Currency R
Tax code R
Bus.place/se ctn
Text Text O

Enter invoice (credit memo) gross amount including taxes and duties



Discount Cash discount O
Payment terms of
system
Enter if cash discount is offered by vendor
Hide Header data for getting full screen of items if required. Purchase order / R Select Purchase
order / Grayed out
Defaulted for Schedule Agreement
Purchase order
number
Layout Layout of invoice verification Schedule Agreement in the user reference document
category from drop down
list
R Enter the purchase order

number
R Select Goods / Service Defaulted items in indicator from drop

down list
R Select All information from

drop down list
Choose Enter
Choose Enter to complete the document feeding part.
yellow color.
row of your screen.
7. Choose Save posting the document.
1.17.4 Result
1.17.5 Example
1.18 Reversals / Cancellation of Invoice or Credit Memo 1.18.1 Use
Invoice documents in Invoice Verification are either invoices or credit memos. These documents can be
cancelled. There are two different cases:

If an invoice is cancelled, the system automatically creates a credit memo. If a credit memo is
cancelled, the system automatically creates an invoice.
The system takes the amount and quantity for the credit memo or invoice from the invoice or credit
memo to be cancelled, thus avoiding any differences between the invoice and the credit memo or the
credit memo and the invoice.
An invoice document can only be cancelled if:

 it was posted in Logistics Invoice Verification 
It has not already been cancelled
It is not a cancellation document for another document
When you cancel documents in Logistics Invoice Verification, the document line items are not
automatically cleared in Financial Accounting. We recommend that you periodically clear such items
(using daily background jobs, for example).
1.18.3 Procedure

SAP R/3 menu
LogisticsMaterials ManagementLogistics invoice VerificationFurther ProcessingCancel
Invoice Document Transaction code MR8M
2. The initial screen for reversal appears.
In the fields Invoice doc. number and Fiscal year, enter the data for the invoice document you want to
cancel.
In the Reversal reason field, select the reason for cancelling the invoice. This allows you to differentiate
between different types of cancellations.
Enter the
reversal reason
You can display the document to check. Choose Display document to do this. You can look at the items
of the document to be cancelled. Return to the initial screen by choosing Back.
6. Choose Invoice document and reverse or Press Ctrl+S or
.
1.18.4 Result
Document Reversed and Clear FI Documents Manually.
1.18.5 Example
Document Reversed with no. 5105600114.
1.19 Reversals / Cancellation of Goods Receipt (GR) 1.19.1 Use
When any data entered incorrect during GR posting it has to be reversed. To do the cancellation of GR,
all the follow on documents should be reversed.
A GR can only be cancelled if:

Invoice Verification posted if any should be reversed. 
Procedure

SAP R/3 menu

2. Choose Cancellation and enter the respective Material Document No. (GR No.)
Press enter so that all the data will be captured automatically by the system. If any comment is there to
mention it can be mentioned in the Head Text and Text which is available at the Item level.
4. Press Enter to continue and check all the details
5. Select the Check box Item OK, after entering all the data.
You will get Excise Invoice tab at Header Data and Item Details.
6. Choose Check at the top of screen.
7. Press Ctrl+S or
to post the document
1.19.4 Result
Material document posted, please note the document number.
1.19.5 Example
Reversing CENVAT Postings

Purpose
When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.
Material Document (GR) should be reversed.
Procedure

SAP R/3 menu
Country India User Menu Indirect Taxes Procurement  Excise Invoice  Incoming
Excise Invoice  Central Processing Capture / Change / Cancel / Display / Post
Transaction code J1IEX

Select Post CENVAT.
Select Vendor Excise Invoice.
Enter the excise invoice number.
Press Enter to continue

Choose Simulate CENVAT
A dialog box appears, showing which postings the system will make to reverse the CENVAT.
Choose Post CENVAT.
1.20.4 Result
CENVAT Posting Reversed.
1.20.5 Example
CENVAT Posting Reversed with document no. 0000000008.
Canceling Excise Invoices

Purpose
When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.
Prerequisites

Material Document (GR) should be reversed.
CENVAT Posting should be Reversed.  


Procedure
SAP R/3 menu

Country India User Menu Indirect Taxes Procurement  Excise Invoice  Incoming
Excise Invoice  Central Processing Capture / Change / Cancel / Display / Post
Transaction code J1IEX

Select Cancel.
Select Vendor Excise Invoice.
4. Enter the excise invoice number.

5. Enter the Rejection Code.
Enter the Rejection Code
6. Save the excise invoice.

7. Press Yes to Cancel the Excise Invoice.
1.21.4 Result
Excise Invoice has been successfully cancelled.
1.21.5 Example
Excise Invoice 0000000008 / 2008 ( 1234 ) has been successfully cancelled.
Procurement of Imported Materials– Business Proc ess Procedure Procurement of

Imported Materials 2.1.1 Purpose
This process Procurement of Imported Materials shows you how to handle the Countervailing duty
(CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs duties, such as
basic customs duty or special customs duty, you can credit CVD paid on imports to your CENVAT
account.
Prerequisites
The following scenario specific master data must be created for operation of this building block and
subsequent dependent building blocks.

Material Master record
(Refer User Manual – Procurement of Stock Materials (Domestic) 

Vendor Master record
Ensure that GR based IV is not selected in Purchasing Data. (Refer User Manual– Procurement of
Stock Materials (Domestic) 

CIN Master Data
(Refer User Manual– Procurement of Stock Materials (Domestic)
2.2 Creating Purchase Order 2.2.1 Use
provides the vendor with a reference document to link to goods receipt and invoice verification
processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity
at a predetermined price and delivery date.
2.2.2 Prerequisites
Before starting the process, please ensure the following information:

 Commissioner of Customs is created as domestic vendor, for example: vendor code 600000 
- RBI Commissioner in this process.
In master record of main imported vendor GR-based invoice verification tick should not be there on
Purchasing Data screen of vendor master. And Schema group, Vendor is filled with schema group ZI.
For example vendor code 200000 in this process.
These are basic master data changes with respect to this process only.
For all purchase order a release procedure is applied.
Procedure
6. On the Create Purchase Order screen, make the following entries: Put Doc Type as Import
Don‟t Put Tick in GR BasedMention Tax code as V0
For Basic Customs Duty(JCDB),CVD(JCV1),Addition Customs Duty(JADC),E-cess on CVD(JECV) E-
Cess (JEDB)
Enter the Customs Duties in respective Condition type fields

Select Each Condition Type related to
Customs and click this Details Button
.
To change the vendor for condition type select JCDB condition type and Choose on Condition detail
icon located at left bottom side of your screen.
System will take to new Item – Conditions– Detail: screen. In this screen at right bottom of screen you
can find the vendor code 60000 the main imported vendor is defaulted here. You have to replace this
vendor code with respective vendors and Choose enter and green arrow to come back (F3) to condition
tab of purchase order.
Change DS200 to DS250(appropriate
vendor) for each condition types
10. Repeat the same for other condition types such as JCV1, JECV, JADC, and JEDB etc.
11. Purchase Order may be posted by Choosing on the Save icon.
Result
A message will be displayed stating that the purchase order was saved, with the purchase order number,
please note the purchase order number.
Example
Release Purchase Order Procedure

SAP R/3 menu
LogisticsMaterials ManagementPurchasingPurchase Order Release Individual Release
Click Other Purchase Order
Enter PO No
Click This Icon to Release

Click This Icon to Save
Message Output 2.4.1Use
2.4.2Procedure
10. Choose
to Execute.
11. On screen Message Output select the appropriate Document number and perform the following:

Choose Display Message and/or
Choose Message Detail and/or
Choose Trial Printout.
CAPTURING BILL OF ENTRY Use
Accounting.
2.5.2Procedure
code MIRO
Choose Planned Delivery Costs
Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO.
Transaction Invoice R


Posting date Posting Date R Select Invoice from drop down list
Defaulted by system
For Example
USERMANUAL
Currency R
Tax code R
Bus.place/se ctn
Text Text O

Enter invoice gross amount including taxes and duties 39.80
USD
V0



Payment terms of
system
Amount
mentioned is
only an example
Grayed out Discount Cash discount

Purchase order /
Schedule Agreement
Planned Delivery Costs
Layout Layout of invoice verification O Enter if cash discount is
offered by vendor
R Select Purchase order / Defaulted for Schedule Agreement in the user reference document
category from drop down
list
R Enter the first purchase
order number generated
above
R Select Planned Delivery

Costs in indicator from
drop down list
R Select All information from

drop down list
Choose Enter
yellow color.
row of your screen.
Choose Display Currency which will lead to small pop-up window having the company code currency
and Document Currency, position the cursor on the INR to convert to Document Currency and press the
details button.
Result
Example
Document no. 5105600121created
2.6 Goods Receipt for Imported Purchase Order Use
2.6.2Procedure
SAP R/3 menu


2. On the Goods Receipt Purchase Order screen, make the following entries:
Field name Description Goods Goods Receipt Receipt
Inbound Purchase Order Delivery
Movement Type
R/O /C User action and values Comment R Select from drop down list
for action
R Enter the Purchase Order
No.generated above
3100000000
101
Enter
Since this is imported purchase order and you have already done invoice verification for planned
delivery cost. System will give a new popup Excise Invoice item number screen (which is not there in
normal other process) asking for Commercial invoice number and year.
Please enter the invoice verification document number which you have done in above 5105600792 and
year 2006.
Choose Enter where a small pop-up window will prompt to enter the Commercial Invoice No. and Year
(i.e., the Invoice Verification posted for Bill of Entry)
Enter the No generated for the posting of Bill of Entry
4. After pressing Enter system will fetch all the data from the Purchase Order as shown below:
Whichever material is in Blue those detail will be seen in the Item detail
5. System defaults the balance quantity in Purchase Order.
Enter the
storage location
Select Item Ok and Press Enter and the Excise tab will appear both in Header and Item Level
Field name Goods

Receipt
Inbound
Delivery
Description Goods Receipt
Purchase Order
Movement Type
R/O /C User action and values Comment R Select from drop down list
for action
R input the Purchase Order

number which generated
above
4500000059
101
Document
Date
Enter
in Header
Vendor Vendor
Posting Date Bill of lading Posting date Bill of lading
O Delivery Number from

Vendor
R Defaulted from purchase Grayed out order
R Enter posting date
O Enter bill of lading
Header text Header text O Enter header text
Material Material tab R Defaulted from Inbound Delivery
Grayed out
Qty in Quantity in deliveryO delivery note note

Plant Plant R
Goods
Text
Goods Recipient O
Enter the quantity you have received from vendor. As a default system will give purchase order quantity
Enter the quantity as per vendor delivery challan Quantity
1000
Defaulted from Inbound delivery if entered
1010
Unloading point O
Text O Enter the text if required
Del. Delivery completion O completed indicator
ind.
Select Partner tab in Detail data. Vendor Vendor name O Defaulted from header data Grayed
out
Defaulted by system if PO Qty = GR Qty
Grayed out
Proceed with the following steps if material is batch managed only.
Batch Batch number R Enter batch number as date
for batch managed materials
Vendor batch
Vendor batch
O
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and
for posting Part I and Part II.
8. On the Excise Invoice tab at Header Data make the following entries.
Field name
Capture &
Post Excise invoice
Excise Group Excise

Invoice
Description R/O/C
Capture & Post Excise R Invoice on Excise

Action
Excise Group R Excise invoice R

Excise Inv. Date
BED
Excise Invoice Date R
Basic Excise Duty R
NCCD NCCD R
ECS Education Cess R
User action and values
Choose Capture & Post Excise Invoice from drop down list
Defaulted by the system
Enter the vendor Excise Invoice number

For example:
4500000059
Enter the excise invoice date of vendor

Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed Data (at the last).
Chapter ID Chapter ID of material

EI Quantity Excise Invoice Quantity
Base Value BED

AED
NCCD
SED
ECS
Base value of material Basic Excise Duty Additional Excise Duty NCCD
Special Excise Duty Education Cess
R Defaulted by the system No action required
R Defaulted by the system from Goods Receipt quantity
R Defaulted by the system R Defaulted by the system O Defaulted by the system O Defaulted by the
system O Defaulted by the system O Defaulted by the system
Comment Defaulted
Grayed out
Grayed out
Grayed out
Grayed out
Grayed out
Please cross check the BED, ECS (CVD in this case) amount of item as per the bill of
lading, legally you can not avail more than what mentioned in Vendor Excise Invoice.
In case of imported purchase order in normal case system will default CVD and ECess
(invoice verification made on commissioner of customs) amount as BED and ECS i.e. CENVAT
amount. Choose Check at the top of screen. Choose Post to post the document.
Result
Material document posted.
Example

You can see account posting here
2.7 Logistics Invoice Verification for the Materials Use
Accounting.
2.7.2Procedure
code MIRO
Select Goods /Service Items
Field name Transaction
Description R/O /C Invoice R


User action and values Select Invoice from drop down list
Defaulted by system
For Example
1000
Amount Invoice Amount R Enter invoice gross amount
Comment
Amount
Currency R
Tax code R
Bus.place/se ctn
Text Text O

including taxes and duties 100
USD
V0



Payment terms of
system
Hide Header data for getting full screen of items if required. Grayed out
Purchase order / R Schedule Agreement
Purchase order R number
Goods / service items R
Layout Layout of invoice R verification
Select Purchase order / Schedule Agreement in the reference document
category from drop down list
Enter the first purchase order number generated above
Select Goods / Service items in indicator from drop down list
Select All information from drop down list

mentioned is
only an example
Defaulted for user

Defaulted Choose Enter
yellow color.
row of your screen.
Choose Display Currency to change in INR Choose Display Currency which will lead to small pop-up
window having the company code currency and Document Currency, position the cursor on the INR to
convert to Document Currency and press the details button.
Result
Example
3 Procurement of Subcontracting Materials – Busines s Process Procedure 3.1

Procurement of Subcontracting Materials Purpose
In Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of
what materials you have issued and when they have to be returned by subcontractor. The reason for this
close monitoring has to do with Indian tax law. Under excise law 57AC, when you send materials to a
subcontractor for processing, you are not required to pay any excise duty, even though the materials
have left your premises. However, if the materials have not been returned to you within 180 days
specified by the law, you will have to reverse any excise credit that you posted when you have
purchased the materials. When you send material out of your factory premises you need to send with
57F4 Challan. In this process you are going to do the same.
Prerequisites
Material Master record (Refer User Manual – Procurement of Stock Materials (Domestic)) 
Vendor Master record (Refer User Manual – Procurement of Stock Materials (Domestic)) 
Purchasing Info Record (Optional)


Ensure that Sub-Contracting as Info Category.
(Refer User Manual – Procurement of Stock Materials (Domestic)) 

CIN Master Data (Refer User Manual – Procurement of Stock Materials (Domestic))
o Chapter IDs
o Material ID and chapter ID combination (Ensure Sub-Contract check box is selected for the
Materials that provided to vendor)
o CENVAT Determination
o Vendor Excise Details
o Excise Indicator for Plants
o Excise Indicator for Plant and Vendor
o Excise Tax Rates
3.2 Creation of Subcontracting Purchase Order Use
provides the vendor with a reference document to link to goods receipt and invoice verification
processes. The purchase order is a commitment to a vendor for a given subcontracting activity, in a
Prerequisites
Components stock should be available for providing to subcontracting vendor.
3.2.3Procedure
2. On the Create Purchase Order screen, make the following entries: Select ZSC Document Type for
Subcontracting Order
Enter L as Item Category for
Sub-Contracting Procurement
Click here to enter Bill of components that are supplying to Subcontractor
After filling the above data, choose on Material Data tab at item Details screen. There you will find a
new icon called Components, you have to choose on that icon to give the components list which you are
likely to transfer post to vendors and give the flowing inputs.
3. Click on the Components or Explode BOM and enter the materials that had to be sent:
Choose on Green Arrow or F3 to come back to main purchase order screen.
Ensure appropriate tax code have been entered for both the line items (V0 – Nil Tax for Sub-Contracting
Item)
Ensure Taxcode V0 for Sub-Contracting Item and
click on the Taxes to view the tax calculation
6. The Purchase Order may be posted by choosing on the Save icon.

Result
A message will be displayed stating that the purchase order was saved, with the purchase order number.
Example
Standard PO created under the number 2400000000
3.3 Message Output Use
Procedure
Choose
to Execute.
On screen Message Output select the appropriate Document number and perform the following:

Choose Display Message
and/or Choose Message Detail
and/or Choose Trial Printout.
3.4 Transfer of Components to Subcontractor Use
The Nature of subcontracting purchase order is that company will provide components to subcontractor.
This process describes how to transfer post materials to subcontractor.
Prerequisites
Sufficient stocks of components should be available for making transfer posting.

3.4.3Procedure

SAP R/3 menu
LogisticsMaterials ManagementInventory Management Goods MovementTransfer posting
Transaction code MB1B
2. On the Enter Transfer Posting: Initial Screen, make the following entries:
Description
Document Date
R/O /C User action and values Comment R Input date
Field name Document

Date
Posting Date Movement Type
Plant
Storage
Location
Posting Date Movement Type R Input date R 541
Plant
Storage location
R 1000 R 1010
Press To Purchase Order
Choose on To Purchase Order icon on the top of the screen or choose F9 on key board. System will give
new popup screen asking for purchase order number. Give the 45000000## purchase order number and
choose enter to continue.
System will display components from purchase order with quantities
Choose only the Material that you are sending and enter the Storage Location from which it has to be
issued.
Choose on Adopt + Details icon or F6.
Choose Enter if required the quantity of components can be changed.

Choose Save icon or Control + S to post the document.
Result
A message will be displayed stating that the document posted.
3.4.5 Example
Material document 4900000039 posted.
Creation of Subcontracting Challan Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.5.2 Prerequisites
Select the Sub-Contracting Material in Material and Chapter ID Combination of the Excise Master
(J1ID) for the sending Material.

Ensure that the details of the receiving Material maintained in the Excise Master (J1ID). CENVAT
Determination of the Excise Master (J1ID) Maintained for the both sending and 
receiving Material.
Ensure that the Assessable value for the sending material is maintained in the Excise Master (J1ID)
Procedure
Access the transaction choosing one of the following navigation options: SAP User menu CIN Menu
Transaction code
Indirect TaxesProcurementSubcontracting Subcontracting ChallansCreate
J1IF01
2. On the Subcontracting Challan - Create, make the following entries:
Field name
Material Doc. Mat. Doc. Year Excise Group Series Group
Description R/O /C Material document number R Material document year R Excise Group R Series
Group R
User action and values Comment

4900000039
2006 Appropriate
10 Appropriate W3 Appropriate
Choose Enter to continue, system will take new Subcontracting Challan– Create screen, make the
following entries:
Field name Description
Select Posting tab
Posting date & time
R/O /C User action and values Comment
Posting date and

time
Print Immediately
R Input date and time of

material removal
Print Immediately O Check this box if you want

challan printout immediately.
Select Overview Tab
Preprinted no Preprinted number O Enter pre-printed number if
you have
4. Save challan by choosing on Save icon or Control + S.
3.5.4 Result
A message will be displayed stating that the document posted.
3.5.5 Example
Subcontracting Challan 000010001 2008; Series Group B1 successfully created.
Printing of Subcontracting Challan Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.6.2 Procedure
Access the transaction choosing one of the following navigation options: SAP User menu CIN Menu
Transaction code
Indirect TaxesProcurementSubcontracting Subcontracting ChallansChange
J1IF11
Click the Print Immediately Tab
Press Save Icon
Click the Print Immediately Tab

Press Enter
Click the Icon to be the Print Preview of the Challan
Execute the Print to Get Print Out.
Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant
3.7.2 Prerequisites
Purchase Order
Procedure
SAP R/3 menu

10. On the Goods Receipt Purchase Order screen, make the following entries:
Enter the Purchase Order No and Press Enter
After pressing Enter system will fetch all the data from the Purchase Order as shown below:
First do the posting for the Sub-Contracting Material.

Whichever material is in Blue those detail will be
seen in the Item detail
13. System defaults the balance quantity in PO, change the quantity to the received quantity if it is
different from defaulted quantity:
14. Ensure that the Movement Type is 101.
Select Item
Ok and
Field name Goods
Receipt
Purchase Order
Movement Type
Document
Date
Delivery Note
Vendor
Description
R/O /C Goods Receipt R
Purchase Order R
101
Enter Document Date R
in Header O
Vendor R
Posting date R Bill of lading O Header text O
User action and values Comment Select from drop down list
for action
input the PO number which

generated above
4500000054
Enter document date
Posting Date
Bill of lading
Header text
Close Header Detail data to enlarge the Detail data. Delivery Number from
Vendor
Defaulted from purchase Grayed out order
Enter posting date

Enter bill of lading
Enter header text
Select Material tab at Detailed Data.

Grayed out
Qty in Quantity in deliveryO delivery note note

Plant Plant R
Goods
Text
Goods Recipient O
Enter the quantity you have received from vendor. As a default system will give purchase order quantity
Enter the quantity as per vendor delivery challan Quantity
1000
Unloading point O
Text O Enter the text if required
Del. Delivery completion O completed indicator

ind.
Select Partner tab in Detail data. Vendor Vendor name O Defaulted from header data Grayed
out
Defaulted by system if PO Qty = GR Qty
Grayed out
Proceed with the following steps if material is batch managed only. Batch
Batch number
R
Enter batch number as date for batch managed
Vendor batch Vendor batch O materials

NCCD NCCD O SED Special Excise Duty O ECS Education Cess O Defaulted by the system Defaulted
by the system Defaulted by the system
Choose Check at the top of screen. Choose Post to post the document.
3.7.4 Result
Material document posted.

3.7.5 Example
Material document 5000000028 posted, You can see accounting Entries
Reconciling Subcontracting Challan Use
After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.
Procedure

SAP User menu
Indirect TaxesProcurementSubcontractingCIN Menu Subcontracting ChallansReconcile Quantity
Transaction code J1IFQ
As we have refered challan During Goods receipt here we are getting following message, If you have
not refred challan during Gr following is the Process
2. On the Quantity reconciliation for Subcontracting Challan screen, make the following entriees.
Field name
Material Document
Mat. Doc. Year Year

Chalan No
Description R/O /C User action and Comment values

Goods Receipt document R 5000000344
number
Year of document R 2006

Subcontacting challan year R 2006
Subcontacting challan No R 000000031
Choose on Reconcile icon or F8 to go reconciliation screen.
System will take you to new Quantity reconciliation for Subcontracting Challans.
Here on this you can see system display items from Goods Receipt at top and items from challan at
bottom of screen.
Here you need to allocate the components consumed in GR stage are reconciled with challan to do this,
choose on Allocate based on FIFO icon in the middle of screen with calculator icon.
Or you can do allocation by entering manually also in respective line items at bottom, where Assigned
quantity filed is located in white color.
After assignment save the document by choosing Save icon or choose Control + S
3.8.3 Result
Material document was successfully reconciled.
3.8.4 Example
Material Document 5000000028, 2008 was successfully reconciled.
Completing/Reversal/Re-credit Subcontracting Challan Use
This transaction is basically used to complete the challan if you have reconciled as stated above step.
There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this
case also same transaction is used for reversal of challan or re-crediting the amount.
Procedure

SAP User menu Indirect TaxesProcurementSubcontractingCIN Menu
Subcontracting ChallansComplete/Reverse/
Recredit Transaction code J1IF13
2. On the Subcontracting Challan – Complete/Reverse/Recredit screen, make the following entries:

Field name
Chalan No
Excise year
Description
Subcontacting challan No
Document year
R/O /C User action and values Comment R 0000000031

R 2006
3. Choose enter to go to inside the challan document.
Select the radio button Complete Challan and.

Save the document by choosing Save icon or choose Control + S.
3.9.3 Result
Subcontracting challan successfully completed.
3.9.4 Example
Subcontracting Challan 0000001 2008; Series Group B1 successfully completed.
Logistics Invoice Verification for Subcontracting Material Use
Accounting.
Procedure
code MIRO
Choose only the Subcontracting material to post the document:



Defaulted by system

For Example
USERMANUAL

Currency R Enter invoice gross amount including taxes and duties 19.50
Enter the currency in which the bill is presented by vendor, if not entered by
Comment
Amount
mentioned is
only an example

Tax code R
Bus.place/se ctn
Text Text O
Payment tab BaselineDt

Payment tab R

user system will default the document currency from purchase order
INR
V0



Payment terms of
system
Purchase order /
Schedule Agreement
Layout Layout of invoice verification
R Select Purchase order / Schedule Agreement in the reference document category from drop down list
R Enter the first purchase order number generated above
R Select Goods / Service items in indicator from drop down list
R Select All information from drop down list

Choose Enter Defaulted
5. Choose Enter to complete the document feeding part. Defaulted for user
yellow color.
row of your screen.
3.10.3 Result

3.10.4 Example
Document no. 5105600132 created, Account postings are following
5. Procurement of External Services: Business Process Procedure

Procurement of External Services– Procurement Pro cess
Purpose
External Services Management is an application component within Materials Management Module. It

covers from creation of service master, bid invitation, order placements process, entering and accepting
services and finally invoice verification process.
Prerequisites
Service Master record
AMC Charges for Testing Machine
Vendor Master record  

Refer the document of“Procurement of Stock Materials”
Creating Service Master Use
The service master record counts as part of the master data within External Services Management and
serves as a source of data for you to draw upon when creating services. This enables you to save time
and reduces the frequency of errors, since you need only enter the complete service descriptions in the
service master record once.
Procedure
8. Access the transaction choosing one of the following navigation options: SAP R/3 Menu
LogisticsMaterials ManagementService MasterService Service Master
Transaction code AC03
9. On the Display Service screen, make the following entries:
Click on Create new service icon or press F5 (white paper icon) to create new service master. Then you
will get Create Service Master Record screen, make the following entries:
No Need to Enter as Internal No will be

generated and Enter the Short Text only
Blocking of service procurement can be done by entering appropriately here
Conversion can be maintained here

Field name Service
Number
Description R/O /C Service master record R (internally assigned)
Service description R
Service
Category
Base unit of Measurement Basic Data Mat/srv.grp
Division
Valuation class
Long Text
Service Category R
Base unit of R Measurement
User action and values Comment
You can see %_1 will be Leave blank displayed on this field,
leave it as blank. System
will assign internal service
number
Annual Mait. Contract for Input the value Testing M/C.

Service:ALL complete Select from drop down
AU for Activity Unit
Material Group or R Service Group
Division O Valuation class R
91
3200
This is free input O place. You can fully

input the service
specification.
Press enter to complete the entries.

Press Save icon or Control + S to save the entries.
Result
Service Master Record is created.

Annual Maintenance Contract for Testing Machine.
Creating Purchase Requisition Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant Maintenance
Purchase Requisition is generated automatically from Plant maintenance Order. In this process Purchase
Requisition is created against Quantity Contract created in above step 1.1.4 with exact delivery /
requirement date.
Procedure

SAP R/3 menu
LogisticsMaterials ManagementPurchasingPurchase RequisitionCreate
3. On the Create Purchase Requisition screen, make the following entries:
Enter the A/c Assignment Category Enter the as K for Cost center and Item Short Text Category D for
Services
Enter the appropriate Material Group Plant and Purchasing Group
When Item Category D is enterer one new
tab in the Item Detail Services is
generated to enter the Service No.
Enter the Service No, Quantity and
Gross Price and press Enter
After pressing enter system shows a small pop-up window where respective G/L Account and Cost
Center to be entered.
Enter the appropriate G/L

Account and Cost Center
Enter the Desired Vendor if Vendor is known to the person who is creating PR
5. Press
or Ctrl+S to Save the Purchase Requisition.
Result
Purchase Requisition is created,
Example
Purchase requisition number 0010000180 created.

Assign and Process Purchase Requisition Use
c) This section explains the functions provided by the SAP System for converting requisitions into
external purchasing documents (purchase orders, contract release orders, scheduling agreement delivery
schedules, RFQs), and the processing options thereby available to you:
Assigning means defining the desired source for each purchase requisition item Further processing
involves generating lists of requisitions that have been assigned or flagged as outlined above, and the
subsequent creation of RFQs, purchase orders, or lines of delivery schedules under scheduling
agreements.
Procedure
SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchase RequisitionFollow-On Functions

Assign and Process
Transaction code ME57
The assignment of sources to and further processing of purchase requisitions are two distinct functions.
You can choose whether you wish to perform the functions in two separate steps or in just one. 8. Below
are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate Purchasing Group

2. Enter the Scope of List as B1 for PR generated through MRP Run and A for remaining PR
3. Enter the appropriate Plant
4. Enter the Item category as D
1. Select the Assigned Purchase Requisition (For Spares PR normally the End User may have entered
the Vendor in the PR) 2. Select the appropriate Check boxes for Processing the PR
9. Press
or F8 to enter into the next screen.
1. If Source List is For Manual Assignment available click this button of source click this Icon 1. Select
the check boxes
required PR which are to
be converted in to Pos.
Click SAVE Icon. Source has been assigned for this Requisition
Result
The source is assigned to PR and can be processed for PO. 5.5. For Releasing Purchase Requisition
Refer User Manual for Stock Procurement
5.6 Purchase Order 5.6.1 Use

Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
Prerequisites
1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or
with holding tax please ensures that necessary entries in vendor master is updated.
Procedure
If you want create purchase order with reference to the purchase requisition, on item details screen enter
the purchase requisition number and item number at Purch. Req. field. System will automatically adopt
all the data from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt
Select this check box if Invoice Verification is done after Service Entry Sheet
Press this button to view the Tax Calculation
Condition Record for JSVD and JEC4 should be Maintained in FV11 with Material Group/Plant
Combination.
Select
Invoice
tab
Tax code Enter Tax code R S1 Select S1 tax code Since the procurement services
covered with service tax of 10% (for example only, check for legal requirement), it is advised to select
V1 tax code.
Jurisdiction Jurisdiction code R Will be defaulted from plant

code parameters
Depending on for which plant you are procuring the services system will select Jurisdiction code. In
system the following Jurisdiction codes were configured IN00– Central
Tick this check box

GR-based IV Goods Receipt based O invoice verification Srv.-based IV Service based invoice O
verification
Tick this check box If Invoice Verification will
be done after the Service Entry sheet
8. The Purchase Order may be posted by Choosing on the Save button or Choose Control + S for saving.
Result
Purchase Order is created.
Example

For Releasing Purchase Order Refer User Manual of Stock Procurement
5.8 Message Output Use
5.8.2Procedure
Choose
to Execute.
On screen Message Output select the appropriate Document number and perform the following:

Choose Display Message and/or
Choose Message Detail and/or
Choose Trial Printout.
5.9 Creation and Acceptance of Service Entry Sheet Use
The services actually performed (work actually done) by a service vendor are recorded in a Service
Entry Sheet with reference to the purchase order.
5.9.2Procedure
Access the transaction choosing one of the following navigation options: SAP R/3 Menu
LogisticsMaterials ManagementService Entry Sheet Maintain
Transaction code ML81N
2. On the Service Entry Sheet screen, make the following entries:
3. Click on Other Purch. Orders icon or Shift + F5, system will popup new screen.
In this screen against Purchase Order field give the purchase order number which is created in above
steps and press enter to continue.
You will get new Service Entry Against Purchase Order
Here on this screen click Create Entry Sheet (white paper icon) or Shift + F1 to get new entry sheet.
System allocates service entry sheet number internally and you will get the number on screen.
Press Service Selection and a dialog box appears
8. System will give a popup screen with purchase order number on that, press enter to continue.
9. Select the line item 10 and click on Services or F9 (Adopt services) icon on top of screen.
10. For example the following screen name will come:
You can observe the system copied the service line item from purchase order with open item quantity i.e.
1 AU.
Change the quantity as per your requirement

With this the basic information of service entry sheet is fully completed. As per the requirement you can
fill other fields also if required.
To accept the service click on Accept icon or Control + F1 (Green flag icon).
Press Green Colour Flag Button
15. You can see the traffic light is become Yellow color. That means it is ready to save the service entry
sheet. The colour changes from red to yellow and Press Save
16. Press
or Ctrl+S to save the document.
Result
A message indicates that the service entry sheet saved, acceptance document posted.
Example
Service entry sheet saved, acceptance document 5000000134 posted.
Logistics Invoice Verification Use
Accounting.
5.10.2Procedure
code MIRO


Defaulted by system
For Example
USERMANUAL
Amount Invoice Amount R Enter invoice gross amount including taxes and duties 1122.40
Comment

Amount
mentioned is
only an example Currency R

Tax code R
Bus.place/se ctn
Text Text O

INR
Check this tick box, system will calculate tax amount
Select the tax code from drop down list

S1



Payment terms of
system
Purchase order / R Schedule Agreement
Purchase order R number
Goods / service items R
Layout Layout of invoice R verification

Select Purchase order / Schedule Agreement in the reference document
category from drop down list
Enter the first purchase order number generated above
Select Goods / Service items in indicator from drop down list
Select All information from drop down list
Choose Enter
Defaulted for user
Defaulted Choose Enter to complete the document feeding part.

yellow color.
row of your screen.
Result
Example
6 Asset Procurement – Business Process Procedure. Purchase Order Use
Prerequisites
Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with
holding tax please ensures that necessary entries in vendor master is updated.
Asset Management Module Active.
Procedure

SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchase OrderCreate Vendor/Supplying
Plant Known
Enter Account Assignment „A‟ and Short text of the Assest
Enter PO Qty,Net Price,Currency, Material Group
Enter Code V1
1. Enter the respective Asset No. Enter the Asset No.

3. Click Taxes Tab to View the Tax Details
IIN FV11 maintain Condition record for respective Tax Conditions with Material Group/Plant
combination. 3.Click Save Button to Save the PO.
Result
Purchase Order Created with No. 230000000.
Release of Purchase Order Procedure
For Release of Purchase order Please refer Stock Procurement Manual.
Prerequisites
Purchase Order
Procedure
SAP R/3 menu

Select Only Capture

Excise Invoice
Save the Document.
Result
Material Document 600000098 Posted.
Post Excise Invoice 6.4.1 Procedure

SAP R/3 menu
CIN Easy Screen(J1ILN)Indirect Taxes Procurement Incoming Invoice Central Processing
->Post Excise Invoice Transaction code J1IEX
Click Simulate Cenvat.

Click Post Cenvat.
Click Continue
6.4.2 Result
Excise Invoice Posted.
Logistics Invoice Verification 6.5.1 Use
Accounting.
6.5.2 Procedure
code MIRO
Click Simulate
Click Save.
6.5.3 Result
Invoice Document 90890776655 Posted.
7 Excise Periodic Processing – Business Process Pro cedure Excise Periodic

Processing Purpose
Excise Periodic Processing ‟s that are to be carried out at end of a period. Excise Periodic Processing
helps you prepare and carry out the activities required for day-end or month-end and year-end closing.
 TR6 Challan Posting with PLA Register Updation

 Utilization of CENVAT
 RG1 Register updation
Proforma for Monthly Return under Rule 7 of the Cenvat Credit Rules, 2001
Prerequisites
Before execute business scenarios, you need to post the business processes transactions from other
scenarios.
As part of the integrated scenario, this scenario needs several User Manuals as prerequisites to
demonstrate these include:
Production Planning and Discrete Manufacturing  Procurement of Stock Materials
Sales and Distribution
Excise Report - CENVAT Register Use
Details to submit an Annexure to the Excise Authorities as a Monthly Return Under Rule 57AE of the
Central Excise Rules, 2001. CENVAT Register displays input credit details for Raw materials or Capital
Goods. This report can be generated detailed as Annexure or summary as Abstract.
Prerequisites
User must be assigned the Indian Localization menu.
Procedure
SAP R/3 menu

Country India User Menu Indirect Taxes Registers Excise Tax CENVAT Register
Transaction code J2I9
On the Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule screen, make the
following entries:
Select the Radio Button for Capital Goods / Inputs

to display Annexure / Abstract
Field name Company
Code
Excise Group
Posting Date
Description Company code
R/O /C User action and values R 1000
Comment
Excise Group for which ID for which CENVAT Register is being generated
Posting date range R 10

R
Annexure Output to be
generated Annexure or Abstract
C Select this radio button if the out put is being generated for Annexure
Abstract Output to be
generated Annexure or Abstract
C Select this radio button if the out put is being generated for Abstract
Inputs Annexure to be
generated for Input materials or Capital Goods
C Select this radio button if the out put Annexure is being generated for Input Materials
Capital Goods Annexure to be

generated for Input materials or Capital Goods
C Select this radio button if the out put Annexure is being generated for Capital Goods
The date from the beginning of the month to
end of the
month
At time you can generate an

Annexure or
Abstract

Annexure or
Abstract

Annexure for Input materials or Capital
Goods

Annexure for Input materials or Capital
Goods
11. The out put can be saved into a local file or printed by using the print options.
Result
You are able to generate Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule.
Excise Register Updation 7.3Updation of RG1 Register Use
RG1 register maintained at Manufacturing Plants for excisable finished goods. The register shows goods
movements from the factory to a store and stores to customer, specifically for excisable finished goods.
The R/3 System generates all the necessary entries in the register.
This report only creates register entries for goods movements that have not already been entered. It does
not create duplicate entries.
Using this activity, you can also update the goods issue into RG23A Part I and RG23C
Part I, Register by select the radio button option in the Registers.
Prerequisites
To extract the data to RG1 Register, Material numbers has to be maintained in the table J_2IRG1BAL -
Opening/Closing balance table for RG1.
Procedure

SAP R/3 menu
Country India User Menu Indirect Taxes Registers Excise Tax Update RG23A/C
Issues and RG1
2. On the Update of Registers RG1 and RG23(Part1) screen, make the following entries:
Select appropriate Classification

Select the Radio Button for RG1 / RG23A Part 1 / RG23C Part 1 Updation
Field name Description R/O /C User action and Comment values
Company Code
Plant
Excise Group
Material
Document Number
Document Year
Posting Date Company Code R 1000
Plant – for which RG1 R Register is being

maintained
Excise Group for R which RG1 register is
being maintained
Material document O number

10
Based on the updation criteria enter values
Material document O year
Date of Material R document Posted

Enter the Material Document
Posting Date
Material document year
Movement Type
Storage Location
Material
Document Date
Batch
Stock Type Rule
Classification Movement Type used O for posting the

materials
Storage location used O for posting the

material movements
Material number to O update the RG1

Register
Document date of the O material document

Batch number of the O materials
Stock Type declared O Excise Classification O Rule
Pre-defined R Classifications
1000
IIM
For updating of goods receipts from
Manufacturing plant use RMA
For updating of Goods issue,

i.e. Removal
from factory on payment of duty for home use– IDH
Receipts
RMA- Receipt from
manufacture
ROP-Receipt from
outside under any other provision
Issues
IDH-Removal from
factory on payment of duty for Home use
IDE-Removal on
payment of duty for export under no bond IWE-Removal without
RG23/ RG1 RG23 / RG1 updation R date
Registers Register to update R Select the

appropriate radio button to update the RG1
Register. Please select the
document entry date radio button
Select the
RG23A radio
button to update the RG1
Register,
payment of duty for export under bond

IWT-Removal without payment of duty for transfers
IWO-Removal without payment of duty for other purpose
Date to be considered by the system for updation of RG1 Register

Document Entry date
Document posting date System date
By using this Transaction you can update the

following Registers
RG23A Part1
RG23C Pat1
RG1
Please press enter and ignore any messages.
Update the Receipts to RG1 Register and then update the issue to RG1 Registers. Follow
the sequence of transactions.
You can update the RG1 Register by selecting material document header values or
Material document line item level details or both together.
The following Classification codes need to be used while updating the Excise Registers: Register Type
Goods issues Goods receipts
RG 23A IIM ROP IPD

IWD
RG23C IIM ROP IPD

IWD
RG1 IDH RMA IDE ROP IWE
IWT
IWO
3. System will display the ‘Update of Registers RG1 and RG23 (Part1’) screen:
Displays all the line items to meet the selection criteria to update the RG1 Register.
Select Check Boxes for which Updation to be
Select the line items which needs to be updated to RG1 Register by selecting the check box at the
beginning of the each line item
Press Simulate
5. Simulate the selection by using the Simulate function or use Shift+F10 to simulate the selection
System will display the selection Green or Red Traffic lights. The line items which can be updated will
be displayed with Green Traffic Lights and the line items which can not be updated will be displayed
with Red Traffic Lights.
After selecting the right documents select the line item and use the Create button to update the RG1
Register or use CTRL+Shit+F11 to make register entry.
Processing over for 3 records
Result
Processing over for <number of records selected> records
RG1 Register Extraction Use
This step needs to be performed in order to create the RG1 details into the respective tables.
Prerequisites
You have to complete the update of RG1 Register before performing this step.
Procedure
SAP R/3 menu

Country India User Menu Indirect Taxes Registers Excise Tax Extract
2. On the Excise Registers Extraction screen, make the following entries:
Choose Execute
Field name Excise Group

State Date
End Date
Selection Registers
Description R/O /C
Excise group for which R RG1 Register being

generated
Starting date of R Extraction

Ending date of R Extraction
Mass extraction of R data to all registers
User action and values 10
Comment
Starting date of data to be extracted for RG1 registers Ending date of data to be extracted for RG1
registers
Select the radio button Select Any Register option User can
generate all the registers
together or
individual
register wise
Select
individual
Registers
Display Last Extracted

dates
Selection of individual R register
Displays the O previously upto what

date the register has
been extracted for
information
Activate the RG1 Check box to extract the RG1 Register
3. Click on execute icon or Press F8 or Program Execute
Press Yes which appears in the Dialog
If the RG1 Register is being generated for the Period First Time, system will execute the report and
display the pop-screen with Register name and Green Tick mark, if it is successfully extracted,
otherwise it will show the Red Cross.
Result
RG1 data has been extracted
Using this activity, you can also extract the following Excise Registers in addition to RG1.
 RG23A Part I
 RG23A Part II
 RG23C Part I

RG23C Part II
PLA
In the Registers select option, if you select All registers, the system will create an extract for all
registers. If you only want to create an extract for specific registers, select Select any register and then
the registers that you want to extract.
RG1 Register Print Utility Use
The objective of this process is to print the RG1 Register or to display on the screen.
Prerequisites
The data must be extracted to the RG1 Register for the period to which RG1 Register need to be printed.
Procedure

SAP R/3 menu Country India User Menu Indirect Taxes Registers Excise Tax Print Utility
program
2. On the Print Excise Registers screen, select the RG1 Radio button to print the RG1 Register.
Choose
Click on Execute icon or Press F8 or Program Execute On the Print RG1 Register screen, make the
following entries:
Choose
Start Date
End Date
Description R/O /C
Excise group for which R RG1 Register is being

generated
Starting date of the R period for which

currently RG1Register
is being generated
Ending date of the R period for which

currently RG1Register
is being generated

Comment
Enter the Excise Group
For example 01.09.2005 Starting Date
For example: 29.09.2005
5. Click on Execute icon or Press F8 or Program Execute
Ending Date
System will display the Print parameters maintenance screen assign the out put device name and select
the Print Preview option. System will display the output on the screen.
See the output on the screen and based on the requirement print the output using Ctrl + P option or
through menu Text Print.
Result
RG1 Register ready to print or you can see on the screen.
Using this activity, you can also view or print the following Excise Registers in addition to RG1 
RG23A Part I
 RG23A Part II
 RG23C Part I

RG23C Part II
PLA
You have to print or see the registers one after another.
8. PLA Register Extraction PLA Register Extraction Use
This step needs to be performed in order to extract the data relating to PLA Register to respective tables.
Prerequisites
The following process has been executed, if any transactions took place during the period of PLA
register extraction for payment of CENVAT and Sale of goods

TR6 Challan Updation Utilization of CENVAT
Procedure
SAP R/3 menu

Country India User Menu Indirect Taxes Registers Excise Tax Extract
2. On the Excise Registers Extraction screen, make the following entries:

Choose
State Date
End Date
Selection Registers
Description R/O /C
Excise group for R which PLA Register

being generated
Starting date of R Extraction

Ending date of R Extraction
Mass extraction of R data to all registers
Comment
Starting date of data to be extracted for PLA registers Ending date of data to be extracted for PLA
registers
Select the radio button Select Any Register option

User can
generate all the registers
together or
individual
register wise
Select
individual
Registers
Display Last Extracted

dates
Selection of R individual register
Activate the PLA Check box to extract the PLA Register
Displays the O previously upto

what date the
System will
display the last extraction date register has been on the screen extracted for
information
3. Click on execute icon or Press F8 or Program Execute
If the PLA Register is being extract for the Period First Time, system will execute the report and display
the pop-screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will
show the Red Cross.
Result
PLA data has been extracted
PLA Register Print Utility Use
The objective of this process is to print the PLA Register or to display on the screen.
Prerequisites
The data must be extracted to the PLA Register for the period to which PLA Register need to be printed.
Procedure

SAP R/3 menu
Country India User Menu Indirect Taxes Registers Excise Tax Print Utility
program
2. On the Print Excise Registers screen, select the PLA Radio button to print the PLA Register. Choose
Click on Execute icon or Press F8 or Program Execute

On the Print PLA Register screen, make the following entries:
Choose

Start Date
End Date
Description R/O /C
Excise group for which R PLA Register is being

generated
Starting date of the R period for which

currently PLA Register
is being generated
Ending date of the R period for which
currently PLA Register
is being generated

Comment
Enter the Excise Group
For example 01.09.2005 Starting Date
For example 30.09.2005
5. Click on Execute icon or Press F8 or Program Execute
Ending Date System will display the Print parameters maintenance screen assign the out put device
name and select the Print Preview option. System will display the output on the screen.
See the output on the screen and based on the requirement print the output using Ctrl + P option or
through menu Text Print.
Result
PLA register displayed on screen or printed.

9. Reports Purchasing Purchasing Documents per Vendor (ME2L)
Chose Execute Icon

Purchasing Documents per Material (ME2M)
Choose Execute
Source List for Material (ME0M)

Purchase Info Record per Material (ME1M) Purchasing Values(MC$G)
Choose Execute
Click Switch Drill Down Icon
Inventory Material Document List (MB51)
Choose Execute
THANKS
Click this Icon to
have Detail View.
9.2.2 Diplay Warehouse Stock (MB52)
Choose Appropriate
Input for your selection.
Choose Execute or Press F8.
9.3.3 Stock on Posting Date (MB5B)
Select Apropriate Entries

For your selection
Choose Execute or Press F8
9.3.4 Stock Overview (MMBE)
Choose Execute or Press F8

9.3.5 Stock in Transit (MB5T)
Choose Execute or Press F8.
This means no stock in transit

9.3.6 Slow Moving Items (MC46)
Select Appropriate Input

Entries
Choose Execute and Press F8.

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SAP MM END USER MANUAL

SAP Business Process

 A business process in SAP is termed as “Module”.

Inventory Management, Invoice Verification, Material

Material Master Record

1.1.3 Material Master Record

Menu PathLogistics Materials Management Material Master Material Create (General)

MM01 – Create T Code MM02 – Change

Enter the Industry Sector

Enter any Basic Material is there

Enter the Purchasing Group

Source list should be

Enter the No. of Days required

Enter the appropriate MRP Type)

Enter the Price Control as V-Moving Average and S-Standard

Enter Respective Profit Centre of Plant/Depot

1.1.4 Vendor Master Record

Logistics Materials Management Purchasing Master Data VendorMenu Path Central

Enter Company Code Enter Purchasing Organisation

Press Enter to input the details of the vendor.

Enter the detail in the respective field

No need to enter in the below screen.

The below screen is explained in detail in FI User Manual:

1. Select GR-based Inv. Verf if Invoice verification is done after GR

Schema group, Vendor:

1.1.5 Purchasing Info Record

SAP Easy Access

ME11 – Create T Code ME12 – Change

Press enter the details in the Purchasing Info Record.

If the message is displayed like this,

Enter the Standard Quantity

Enter the Net Price

SAP Easy Access Logistics

Enter the Material No. and Plant

Maintain the Validity Enter the Vendor and

1.1.7 CIN Master Data

Select Chapter ID and Press

Enter the Description as per

Enter the Material No. and Chapter ID Combination

Select the Vendor Excise Details

Excise Condition Record

Enter the appropriate condition type

Request for Quotation (RFQ)

Enter the RFQ type as “AN”

RFQ created under the number 6000000000.

Message output: RFQ

Access the transaction choosing one of the following navigation options:

SAP R/3 menu

Transaction code ME9A

Choose the Enter key, or choose

Enter the Conditions given by vendor.

A vendor ‟s quoted price can be entered in one of two ways.

Quotation for RFQ 6000000000 maintained.

+: The highest value for each item is the 100% value

Select the desired price computations:

Include cash discounts

Once all entries have been made, Choose the Execute.

Rank is Mean and

Price Comparison List in Currency INR is displayed on the screen.

Creating Purchase Requisition Use

Access the transaction choosing one of the following navigation options:

Enter Material No. Enter required

Purchase requisition number 0010000000 created.