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SAP Materials Management Lateral Cross Training Material

26th June, 2007

Agenda Name of the section Duration (hours) Objective Pre-requisites SAP overview 6 Hrs To understand what is SAP and its various applications.

Knowledge on ERP Solution

Course Content

SAP Overview Industry Solutions from SAP Main Modules of SAP

SAP Overview

SAP stands for Systems, Applications and Products in data processing". SAP is the worlds third-largest independent software provider. SAP was founded by 5 former IBM employees in 1972 and head quartered in Walldorf,Germany. SAP is the global market leader in ERP and in collaborative and inter-enterprise business solutions

SAP overview

Various SAP Business suite : mySAP Enterprise resource planning

mySAP Supply chain management


mySAP Customer relationship management mySAP Product life cycle management mySAP Supplier relationship management

SAP overview Industry solutions from SAP

Aerospace & Defense


Banking Engineering, Construction & Operations Healthcare Industrial Machinery Consumer Products Higher Education & Research

Automotive
Defense & Security High Tech Higher Education & Research Chemicals Life Sciences Industrial Machinery & Components

Life Sciences
Media

Logistics Service Providers


Mill Products

Health Care

High Tech
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SAP overview Industry solutions from SAP (..Contd)

Mining
Postal Services Public Sector Retail Utilities

Oil & Gas


Professional Services Railways Telecommunications Wholesale Distribution

SAP-Overview

Small and medium business solutions


mySAP all-in-one SAP business one

New dimension products


Strategic enterprise management Advanced planer and optimizer Enterprise buyer profession edition Business information warehouse

mySAP technology
SAP Net weaver

SAP-Overview

SAP R/3 main modules are



Financial Accounting (FI) Controlling (CO) Materials Management (MM) Sales & distribution (SD) Production Planning and Execution - Discrete, Repetitive, Process (PP) Logistics execution (LE) Quality Management (QM) Project Systems (PS) Plant Maintenance (PM) Customer Service (CS) Human Resources (HR)
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SAP Application Modules SAP has several layers. The Basis System is the heart of the data operations and should be not evident to higher level or managerial users. Other customizing and implementation tools exist also. The heart of the system from a managers viewpoint are the application modules.

Introduction to SAP

SAP overview SAP stands for "systems, applications and products in data processing". SAP is the worlds third-largest independent software provider. Founded by 5 former IBM employees in 1972 and head quartered in Walldorf, Germany. SAP is the global market leader in collaborative and inter-enterprise business solutions SAP is the global market leader in ERP.

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Course Begins

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Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

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Agenda

Name of the section


Duration (hours) Objective Pre-requisites

Introduction to procurement
1 Hrs To understand the various organizational structures from legal and business transaction point of view.

Functional experience in Sales. Understanding of Organizational structure. Introduction to procurement Internal Procurement External procurement Methods of procurement
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Course Content

Introduction To Procurement

Definition

The process of obtaining services, supplies, and equipment from a


vendor is called Procurement.

The procurement department or the purchase department within an


organization manages all the purchases.

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Organizational levels in a procurement cycle

Client

A client can be termed as a corporate group

Company Code Plant

A company code is a company (accounting unit) within the corporate group (client)

A plant is the manufacturing facility or branch within the company


Storage location is a area in the plant where all the materials procured for the plant gets stored. Inventory management and physical inventory is carried out at the storage location level The Procurement activity is taken care by this department in the plant

Storage Location Pur Org

Note:- A plant can be one of the following # Central delivery # warehouse #Regional sales office #Manufacturing facility # Corporate headquarters

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Types of Procurement

Internal Procurement External Procurement

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Internal Procurement
In a company, goods movements do not only occur in the form of goods receipts and goods issues. Depending on the organization of the company and its sales policy, internal stock transfers may also be necessary. Stock transfer with delivery is a plant-to-plant scenario. You are posting a goods issue in plant A and a goods receipt in plant B. This type of stock transfer can only be carried out from unrestricted-use stock of the issuing plant to unrestricted-use stock of the receiving plant. In a second step, you post the placement into storage at the receiving plant. Only then is the event complete and the transferred quantity part of unrestricted-use stock. The following are a must for internal procurement between plant to plant within the same company code. Creating a stock transport order in plant B Generating a delivery in plant A Picking the material in plant A Posting the goods issue in the delivering plant i.e. Plant A Posting the goods receipt in the receiving plant i.e. Plant B The quantity posted from stock is first of all managed as stock in transit for the receiving plant. The quantity is only posted to the unrestricted-use stock of the receiving plant once the goods receipt has been posted. This enables the quantity 'on the road' to be monitored.

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Internal Procurement
You post a stock transfer from company code to company code in the same way that you post a stock transfer from plant to plant, except that both plants belong to different company codes. During the stock transfer, two accounting documents are created in addition to the material document An accounting document for the removal from storage at the issuing company code An accounting document for the placement into storage at the receiving company code The following are a must for internal procurement between plant to plant between 2 different company codes. Creating a purchase order at the receiving plant Creating delivery and billing documents at the issuing plant Posting the goods receipt at the receiving plant Posting the invoice receipt at the receiving plant The key points in this kind of procurement is The issuing plant enters a delivery for the stock transport order and a billing document. This is an inter company billing document. Pricing takes place as normal. When the goods arrive, the receiving plant posts a goods receipt for the purchase order. The unrestricted-use stock increases and an accounting document get created. The invoice is checked with reference to the purchase order. 18

External Procurement
General cycle of activities:

Payment

Determinatio n of requirement

Invoice Verification

Selection of vendors from the vendor database

Goods Receipt

Procurement

Vendor Selection and Comparison of Quotations

PO Monitoring

PO processing

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External Procurement 1. Determination of Requirements


Materials requirements are identified either in the user departments or via materials planning and control & passed on to the Purchasing department via a Purchase requisitions. You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system. 2. Source Determination The Purchasing component helps you identify potential sources of supply based on old orders and existing longer-term agreements with the vendor. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors. 3. Vendor Selection and Comparison of Quotations The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically. 4. Purchase Order Processing The Purchasing system takes up input datas from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. 20

External Procurement
5. Purchase Order Monitoring The buyer can check the status of the PO i.e. if the goods or invoices have been received for a particular PO. The system checks the reminder periods you have specified and - if necessary -automatically prints reminders or expediters at the predefined intervals. 6. Goods Receipt Goods receiving personnel can confirm the receipt of goods simply by entering the PO number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods. 7. Invoice Verification Vendor invoices are checked for accuracy of prices and contents. 8. Payment Processing Based on the invoice verification, the Accounts Dept / Finance Dept normally deals with vendor payments.
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Methods of Procurement

Procurement for Stock


A stock material is a material that is kept in stock. These materials are kept in stock once received from the vendor. The stock of this materials keeps on increasing or decreasing based on amount of the quantity received or issued. To order a material for stock, the material must have a master record.

Procurement for Direct Consumption


When you procure for direct consumption, you specify the consumption purpose by entering an account assignment (for example, a cost center). To order a material for consumption, the material may have a master record.

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There are 3 basic forms of external procurement supported by MM Purchasing component.

One-time purchase orders Longer-term contracts with the subsequent issue of release orders Longer-term scheduling agreements and delivery schedules

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Forms of Procurement One-Time Purchase Order


You use one-time orders for materials or services that you order irregularly. You can reference a purchase requisition, RFQ, or another PO when creating a onetime order.

Contract and Release Orders


For materials that are being ordered regularly and in large quantities, we can negotiate a deal with the vendor for pricing or conditions & record then in a contract. In a contract you also specify the validity date.

Scheduling Agreement
If a material is ordered on a regular basis and is to be delivered according to an exact time schedule, then you set up a scheduling agreement. This method of procurement is typically used when Just-in-Time deliveries are required from the vendor (for example, in the automobile industry).
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Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

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MM Enterprise Structure

Client

Plant
Purchasing Org.
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Client

Is the Highest Legal Entity An Independent Unit in R/3 System

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Company

An Independent accounting unit within the client. Each has its own P&L account and Balance Sheet

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Plant

A unit under the company All Operation of the company take place here (e.g.

Manufacturing, sales, storage Unit, Admin Building)

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Storage Location

The storage location is an organizational unit that allows the


differentiation of material stocks with in a plant. Physical Inventory is carried out at storage location level.

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Purchasing Organization

Responsible Organizational Unit for Procuring material /

Service Procure the Material / Service for one or more plants within the company

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Purchasing Groups

The groups which are responsible for day to day buying


activity in the Purchasing organization

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MM Enterprise Structure
ASPL

CLIENT COMPANY PLANT STORAGE LOCATION

PURCHASE ORGANIZATION

BDC

PURA

MDC

REF PURCHASE ORGANIZATION

BDC1

BDC2

MDC1

MDC2

Bay11

Bay12

Bay21

Bay22

Bay31

Bay32

Bay41

Bay42

PURB

PURM

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Configuration Enterprise Structure

Define here

Assign here

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Defining Organizational Elements Client : SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define Company > New Entries

Company Code : SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code > Copy, Delete, Check Company Code

Controlling Area : SPRO > IMG > Enterprise Structure > Definition > Controlling > Maintain Controlling Area > Maintain Controlling Area Use Currency type : 10 & Chart of Accounts as : INT
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Defining Organizational Elements


Plant : SPRO > IMG > Enterprise Structure > Definition > Logistics General > Define , copy, delete , check plant > copy, delete , check plant

Storage Location : SPRO > IMG > Enterprise Structure > Definition > Materials Management > Maintain Storage Loc ( w.r.t plant ) > New Entries

Purchase Organization : SPRO > IMG > Enterprise Structure > Definition > Materials Management > Maintain Pur. Org >New Entries.

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Assigning Enterprise Structure

SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting >
Assign Company Code to Company. Company Code to Controlling area Assign Plant to Company Code Assign P.Org to Co . Code Assign P.Org to Plant

SPRO > IMG > Enterprise Structure > Assignment > Controlling> Assign SPRO > IMG > Enterprise Structure > Assignment > logistics General > SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt >
Assign Standard P.Org to Plant

SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt >
Assign P.Org to Reference P.Org
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Activate Company code for Materials Mgmt


SPRO > IMG > Logistics General > Material Master > Basic Settings >Maintain Co.Code for Materials Mgmt

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Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

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Agenda

Material master

Material master contains the information on all the materials that a company procures or produces, stores or sells 1 To get familiar with Material Master

Duration (Hours) Objective Pre-requisites Course content

Material Master Introduction Material Master Demo1_ Creation of Material master Demo2_Customization settings
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Note Fields in red boxes are mandatory fields.

Introduction

What is Material Master ? How the Material master is used in all the departments ? How it is useful in creating PO ?

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Material Master

Material master contains the information on all the materials that a


company procures or produces, stores or sells. The material master record is a companies main source of material specific data. It is used by all components in the R/3 logistics system.
Material Master Data
Basic data Purchasing

Materials planning Material Master Record

S&D

Stocks in Plant/ stor Loc

Work scheduling

Accounting

Quality management

Storage

Forecasting

Warehouse Mgmt

Classification

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Material Master

Integration of all material data in a single database , prevents the


problem of data redundancy. Data contained in material master record is required for many functions with in the R/3 logistics system, for example: Purchasing data for ordering Inventory management data for posting a goods movements and managing physical inventory. Accounting data for material valuation. MRP data for material requirements planning.

Each department in company has its own view in material master Some material is valid for all organization levels, while some is valid
only for certain levels. Data at client level Data at plant level Data at storage location level

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Material Master
Maintain a material master record: screens
Material (Industry sector) (Material type)

Selective views - Basic Data - Purchasing - Accounting

Organizational levels - Plant -Storage location -..

Data screens

When creating or editing a material master data, you go through a number of

screens. From initial screen you go to two successive dialogue boxes . In the first dialogue box, you specify the view you want to process. In second you specify the relevant organizational levels. You then go to the data screens. You can change the standard screen sequence by changing the default values
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Material type

Materials with the same basic attributes are grouped together and
assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. Examples of material types are given in the graphic below
Material type

Number assignment

Raw materials
Control

Procurement type User departments Field selection Account determination

Semi finished

Finished products

..............

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Industry sector
Industry sector Selection Screen Control Operating suppliers Field selection

Raw materials

Like material type, the industry sector has a control function in SAP

R/3 When you create a material master record, the industry sector defines. which screens are displayed and in which order which industry specific fields are displayed in each screen Industry sector you assigned to material cannot be changed latter. In customizing , you can define new industry sectors and maintain field reference for field selection control according to your companyspecific requirements. 46

Material Type Material type controls : The type of number assignment (internal or external). The permitted number range interval. Which screens are displayed and in which order. Which user-department-specific data (view) is suggested for entry. Which procurement type is permitted for a material; that is, whether the material is produced in-house, procured externally, or whether both options are allowed. Along with the plant, the material type determines a material's inventory management requirement; that is, whether the system updates quantity changes in the material master record or updates changes in value in the stock accounts in Financial Accounting. The material type also determines which accounts are posted when a material is posted to stock or leaves the warehouse. Various material types are provided in the standard SAP R/3 System. If your company needs additional material types, you can define these in Customizing according to your requirements
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Unit of measure

In addition to the base unit of measure the system uses for stock
keeping unit and to execute all its calculations, other departments use their own unit of measure. For example Purchasing can use another unit of measure to sales and distribution or to the warehouse.

Base unit of measure: stock keeping unit. All the other unit of

measure that you use, are converted to base unit of measure. You must enter the conversion factor for the unit of measure in the material master.

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Purchasing data in material master record

In the Purchasing view of the material master Source list requirement Quota Arrangement usage Automatic PO

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Valuation class
Valuation class Material type Valuation class 1
Accounting 1

300000

Valuation class

Valuation class 2

300100

Material Master

You can use the valuation class to Combine the materials for

assigning G/L accounts so that you do not have to manage a separate stock account for each material. You maintain the valuation class in accounting view of the material master record. The valuation class allowed for a material depends on the material type and can be configured in customizing.
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Material Valuation procedures

Material valuation

Price control ( In material master )

S Standard price

V Moving average price

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Price Control

Valuation of goods receipts depends on the price control procedure


you set in the material master record. In the R/3 System, material valuation can be carried out according to the moving average price procedure (V price) or the standard price procedure (S price).

In the standard price procedure (price control S), the system


carries out all stock postings at a price defined in the material master. Variances are posted to price difference account

In the moving average price procedure (price control V), the

system valuates goods receipts with the purchase order price and goods issues with the current moving average price. The system automatically calculates the latter upon every goods movement by dividing the total value by the total stock quantity. Differences between the purchase order price and the invoice are posted directly to the relevant stock account if there is sufficient stock coverage.
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Demo1_Create Material Master


Objective To create a Material Master

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Demo1_Create Material Master


Objective Selective views for creating material master

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Demo1_Create Material Master Objective To maintain the data in Basic data1 view

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Demo1_Create Material Master Objective To maintain the data in Purchasing view

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Demo1_Create Material Master


Objective To maintain the data in Accounting1 view

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Demo2_Cutomizing settings Objective To create Purchasing group, purchasing Value keyetc

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Important T Codes in Material Master

MM 01 MM02 MM03 MM 17 MMAM MM11 MM50

Create Material Master Change Material Master Display Material Master Mass Maintenance Change Material Type Schedule creation of Material Master Extend the material view(s)

Once material masters are created from one plant same can be extended to other plants using T- Code MM 01.

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Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

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Agenda
Vendor Master The vendor Master record contains all the information about the vendor that is needed to be able to conduct business with them.

Duration (hours)
Objective Pre-requisites

1
To get familiar with Vendor master N.A

Course content

Introduction Concept Important Data for Vendor Master. Demo1_Customizing Settings Demo 2_Creation,Change and display of
vendor master

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Introduction

What is meant by vendor master ?


How is it useful in purchasing?

How is your organization maintaining this master record?

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Concept

All the relevent data on vendors is managed in Vendor master


records that is specifically related to purchasing. It contains information about external suppliers like vendors name and address as well as data such as :

- General data
- Accounting data

- Purchasing data

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Account Group

When creating a vendor master record, you must specify an account group. The account group determines : The type of number assignment. Whether or not a one time vendor is involved. Which fields screens contain and whether entries in these fields are mandatory or optional.

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Partner Function

A vendor can take up different roles depending upon the requirement. these roles are called Partner roles or partner Function. some of the roles are given below: Ordering address Supplier of goods Invoicing party Payee

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Demo1_Customizing Settings

Define Define Define Define Define

Account group Number Ranges the term of payment the Partner function the Partner schemas

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Demo1_Customizing Settings

Objective

To create an account group

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Demo1_Customizing Settings

Objec To create an account group tive

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Demo1_Customizing Settings

Objec To create an account group tive

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Demo1_Customizing Settings

Objec To create an account group tive

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Demo1_Customizing Settings

Objec To define Number Ranges tive

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Demo1_Customizing Settings

Objecti Assign vendor Account group to number ve ranges.

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Demo1_Customizing Settings

Objecti To Define Terms of payment ve

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Demo1_Customizing Settings

Objec Define Partner function tive

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Demo1_Customizing Settings

Objec Define partner determination procedure for tive schema.

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Demo1_Customizing Settings

Objecti Define partner function in schema. ve

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Demo2_Creation of vendor master

Objecti To create a new vendor ve

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Demo2_Change of vendor master

Objecti To change a Vendor master. ve

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Demo2_Display of vendor master

Object To display a master record. ive

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Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

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Customizing settings for material master

Customizing settings for material master Duration (Hours) Objective Pre-requisites Course content

Customizing the Material Master, according to our business requirement.

1
To get familiar with customizing settings with material master Material Master

Introduction Concept

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Introduction

What is customizing settings for material master ? How is it useful for end users ? How does it satisfy companys own business requirement ?

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Concept

Customizing settings for material master, we can customize fields

according to the business requirements. Most cases standard SAP providing is enough, but some case you need to customize( i.e your own industry sector, material type, no ranges.. ).

We can restrict the material number length


When ever you are creating a Material , if u select you select your
own material type and industry sector, it will display the selective views required views for our material( i.e., what we have customized )

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Demo1_Cutomizing settings for Material Master

Objecti Material number length Material (OMSL) ve

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Demo1_Cutomizing settings for Material Master

Objecti To create Industry sector ve

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Demo1_Cutomizing settings for Material Master

Objecti To create Material type (OMS2) ve

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Demo1_Cutomizing settings for Material Master

Objecti To maintain a number ranges (MMNR) ve

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Demo1_Cutomizing settings for Material Master

Objectiv To copy the standard screen sequence to e own

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Demo1_Cutomizing settings for Material Master

Objecti To assign the screen sequences to material ve type and industry sector

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Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

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Agenda

Purchase This component use to give requisition notification of requirements

of materials and/or external services and keep track of such requirements.

Duration 1 (Hours) get familiar with PR Objective Note Fields in red To boxes are mandatory fields.
Material Master, Vendor
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Introduction

Define Purchase Requisition


What are the procurement types exist?

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Concept

A purchase requisition is a request to Purchasing to procure a

certain quantity of a material or a service so that it is available at a certain point in time.

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Purchase Requisition

Requisitions can be created


Directly Indirectly

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Purchase Requisition

PR contains number of Items, for each of which a procurement type


is defined.

Following procurement type are exist.


Standard Subcontracting Consignment Stock Transfer External Service

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Concept

Changing a Purchase Requisition


If the requisition has already had a PO issued against it then it is required to inform the purchasing group If the requisition has been approved then changes are only possible to a limited extent and may themselves be subject to approval If the requisition was created by Materials Planning then you may not be able to change the requisition or it is require to notify the materials planner before making any changes.

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Demo1_Customizing Settings

Define Document Types


Define Number Ranges Define Screen Layout at Document Level

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Demo1_Customizing Settings

Objec To create different document types for PR tive

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Demo1_Customizing Settings

Objec To assign Number ranges to a document type tive

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Demo1_Customizing Settings

Objec Define Screen Layout at Document Level tive

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Demo2_ Create Purchase Requisition

Objec To create a Purchase Requisition tive

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Agenda

Request For Quotation

Duration (Hours) Objective Pre-requisites

This tool is used to manage and compare requests for quotation (RFQ) issued to vendors and the quotations submitted by the latter in response to them. 1

To get familiar with RFQ/Quotation

Purchase Requisition Course Introduction Note Fields in red boxes are mandatory fields.

Material Master, Vendor Master,


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Introduction

What is a quotation? What is RFQ ? What is the difference between the two? What is the process of vendor selection in your organization?

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Concept

Request For Quotation (RFQ) is an invite made to a vendor by

purchasing organization to submit a quotation for the supply of goods or service performance.

A quotation is a reply by a vendor to a purchasing organization related


to the supply of goods or service performance subject to specified conditions.

Price Comparison is the process of comparing the prices for all the
quotations received from vendors.

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Demo1_Creation of RFQ

Objec To create an RFQ tive

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Demo1_Creation of RFQ

Objec To create a RFQ tive

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Demo1_Creation of RFQ

Objec To create a RFQ tive

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Demo1_Creation of RFQ

Objec To create a RFQ tive

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Demo2_Maintaining the quotation

Object To maintain a quotation ive

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Demo2_Maintaining the quotation

Object Price comparison of quotations ive

Vendor1 is ranked as 1st (green highlight) and can be selected for further processing

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Demo3_Customizing Settings

Define Document Types Define Number Ranges Define Screen Layout at Document Level

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Demo3_Customizing Settings

Objec To create different document types for RFQ tive

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Demo3_Customizing Settings

Objec To assign Number ranges to a document type tive

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Demo3_Customizing Settings

Objec Define Screen Layout at Document Level tive

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Agenda

Source list Source list specifies the possible sources of supply for a material over a given period of time Duration 1 (hours) Objective To get familiar with Source list

Prerequisites Course

Material master Vendor master Introduction


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Note Fields in red boxes are mandatory fields.

Introduction

What is meant by source list ? How does your organization maintain this master record ? Source list specifies the possible sources of supply for a material over a
given period of time. It shows the time period in which a material may be ordered from a given vendor or under a certain long-term purchase agreement.

Source list is used in the administration of source of supply. Source list can be created manually or generated automatically. Source list you can be copied from one plant to another plant
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Demo1_Source list

Objective Maintain a source list ME01

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Demo1_Source list

Objecti Material Master settings for Source List ve

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Demo1_Source list

Objectiv Source list requirement at plant level e

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Agenda

Info record

Duration (Hours) Objective

Purchasing info record contains the concise information on a vendor and the material( i.e., the vendors current price is stored in the info record ) 1

To get familiar with info record

Prerequisites

Material master Vendor master


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Note Fields in red boxes are mandatory fields.

Introduction

What is meant by info record? How is your organization maintaining this master record? How is it useful in purchasing? The purchasing info record ( Info record )contains the information on a
specific material and vendor supplying the material, For example, the vendor's current pricing is stored in the info record.

Info records can be created at purchasing org / plant level or Purchasing


organization level.

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Introduction

When you create a purchase order, the system searches for info

record for purchasing organization/plant combination. If there in no record for this combination, the system searches for purchasing organization only.

You can maintain info record manually or automatically from


quotations, purchase orders or outline agreements.

Info record can be maintained for different procurement types


Standard Subcontracting Pipeline Consignment
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Demo 1_ Info record

Objec To create an Info record Purchasing org / Plant tive level

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Demo 1_ Info record

Objec To create an Info record Purchasing org / Plant tive level

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Demo 1_ Info record

Objec To create an Info record Purchasing org / Plant tive level

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Demo 2_ Info record

Objec To create an Info record at Purchasing tive Organization level

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Demo 2_ Info record

Objec To create an Info record at Purchasing tive Organization level

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Demo2 _ Info record

Objec To Create an Info record at Purchasing tive Organization level

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Demo3 _ Info record

Object Info Update in quotation ive

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Demo3 _ Info record

Objectiv Info Update in Purchase order e

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Demo3 _ Info record

Objec Info Update in contract ( Outline agreement ) tive

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Agenda

Purchase Order

Duration (Hours) Objective To get familiar with purchase order. PreMaterial master, Vendor master requisites

A purchase order is a formal request to a vendor to supply or provide goods or services at a certain point of time with certain quantity. 1

Note Fields in red boxes are mandatory fields.

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Concept

It represents the formal and final confirmation to the vendor to supply


material or service.

Its an external document created with ref to PR / RFQ/PO/Outline

agreement by the Purchasing group as per the agreed terms & conditions.

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Important Data for Purchase order


Prerequisites required for maintaining purchase order are as follows.

Header data
Vendor Order(doc.) type Purchase organization Purchase group Company code

Item data
Material no. Plant no. Quantity Delivery date Price
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Important Data for Purchase order


Item category
Item category controls the procurement process and defines whether an item requires material number, account assignment, goods receipt, and/or invoice receipt.

Standard Item categories


Standard Subcontracting Third Party Consignment Stock Transport Order

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Important Data for Purchase order Account Assignment Category


It determines the nature of account assignment and accounts to be charged when the incoming invoice or goods receipt is posted.

Standard Account assignment categories :


Asset Order Production Order Cost Center Project Unknown Sales order

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Document type

The purchasing documents are differentiated via document type, also determines which is the relevant number ranges and which field should be offered during maintenance purposes.

137

Process flow

Purchase Order

With ref.to PR

With ref. to Outline Agree.

With ref.to RFQ

138

Demo1_Creating a Purchase Order

Objectiv To create a Purchase Order e

139

Demo2_Customizing Settings

Define document type Define number ranges Define screen layout Set tolerance limit for price variance

140

Demo2_Customizing Settings

Objectiv To Define the document type purchase order e document.

Select the document Type(NB)

141

Demo2_Customizing Settings

Objectiv To Define the number ranges for purchase e order document.

142

Demo2_Customizing Settings

Objectiv To change the screen layout for Purchase e Order

Select the field ME21 And double click.

143

Demo2_Customizing Settings

Objectiv To change the screen layout for Purchase e Order

Marked the check box as Per requirement

144

Demo2_Customizing Settings

Objectiv To change the tolerance settings e


Click on radio button As per requirement And enter the % also

145

Agenda

Outline Agreement

Duration (Hours) Objective Pre-requisite

This component can be used to enter into longer-term purchasing arrangements with vendors regarding the supply of materials or the performance of services. 3

Note Fields in red boxes are mandatory fields.

To be familiar about Outline agreement Vendor Master Material Master


146

Outline agreement

In the R/3 System, an outline agreement is a longer-term purchase agreement concerning the supply of goods or the services performance according to predetermined conditions. These are valid up to a certain period of time and cover a predefined total purchase quantity or value. In SAP outline agreements are again subdivided into the following categories Contracts Scheduling agreements

147

Definition

Structure of an Outline Agreement


Document header: It contains information relating to the entire agreement. For example, the vendor information and header conditions are in the document header. Items: It contains the information specific to the relevant material or service. Quantity or price of the item Conditions, such as quantity discounts and surcharges

148

Contracts

A contract is a type of Outline agreement between the company and the vendor for a agreed material or service which can be issued as and when required during a certain overall time frame. There are two types of Contracts Quantity contract Value contract

149

Contract

You can also set up corporate buying contracts with your vendors. Plant contract/Centrally agreed contract Contract 1 Plant 1 Plant 2 Contract 2 Plant 3

Distributed contracts are centrally agreed contracts that are made


available to other R/3 Systems for the purpose of issuing release orders against them.

150

Structure of a contract

The contract consists of items defining the individual materials, material groups, or services with prices and in many cases quantities. An item is assigned to an item category, which defines the type of procurement (e.g. item category K for consignment, or L for subcontracting).

151

Contract

Contract items can relate to a single plant or to all plants belong to


a same purchasing organization (centrally agreed contract).

All the plants belong to a single purchasing organization can order


against a centrally agreed contract.

An enterprise working with a central purchasing organization hold


several plants can negotiate better conditions at a high level.

Centrally agreed contracts can be entered into with a vendors

entire corporate group. The individual contract release orders can be issued to other individual companies belonging to the vendor corporate group. This can be made possible when the partner 152

Quantity Based contract


Target Quantity as specified in the contract

Quantity contract

This type of contract is used when if the total quantity of goods to 153

Value Based contract


Target Quantity as specified in the contract

Value contract

This type of contract is used when if the total value of all release orders issued against the particular contract is not to exceed a certain predefined value.

154

Scheduling Agreements

It is a longer-term purchase arrangement with the vendor under


which materials are procured on predetermined dates within a certain time period.

Working with scheduling agreements can shorten processing times


and reduce the amount of paperwork.

You can carry out your manufacturing operations on the Just-InTime (JIT) principle.

155

Scheduling Agreements

A scheduling agreement consists of a number of items for which a

procurement type has been defined. The procurement types which are defined are as follows Standard Subcontracting Consignment Stock Transfer

Delivery of the total quantity of material specified in the agreement


is spread over a certain time period, consisting of lines indicating the individual quantities with the corresponding delivery dates.
156

S A can be created in two ways

Manually By entering all the data manually. For this the prerequisites are Account assignment-For each item to be posted to an account you need the account assignment data. Purchase organization/ Purchasing Group-You must assign the scheduling agreement to a purchasing organization & a purchasing group. Referencing Technique- By referring other documents like PR RFQs/Quotations Other Scheduling agreements

157

Demo1_Creation of Contracts

Objec To create a contract tive

158

Demo1_Creation of Contracts

Objec To create a contract tive

159

Demo1_for Creation of Contracts

Objec To create a contract tive

Fill in all the details related to the material

160

Demo1_for Creation of Contracts

Objec To create a contract tive

161

Demo2_Customizing Settings

Objec To assign Number ranges to the contract tive

162

Demo2_Customizing Settings

Objec To assign Number ranges to the contract tive

163

Demo2_Customizing Settings

Objec Define Screen Layout tive

164

Demo3_Creation of scheduling agreements

Objec To create a Scheduling Agreement tive

165

Demo3_Creation of scheduling agreements

Object To create a Scheduling Agreement ive

166

Demo3_Creation of scheduling agreements

Objecti To create a Scheduling Agreement ve

Fill in all the details related to the material

167

Demo3_Creation of scheduling agreements

Objec To create a Scheduling Agreement tive

Agreement Number gets created

168

Demo3_Creation of scheduling agreements


Objecti To create Scheduling Lines ve

Enter the scheduling agreement Number

169

Demo3_Creation of scheduling agreements

Objecti To create Scheduling Lines ve

Select the line items & click here to enter the schedule lines

170

Demo3_Creation of scheduling agreements

Objecti To create Scheduling Lines ve

Enter the scheduled Quantity Enter the date on which you need the material to be delivered

171

Demo4_Customising Settings

Objec To assign Number ranges to the Scheduling tive agreement

172

Demo4_Customising Settings

Objec To Define Document types for scheduling tive agreement

173

Agenda

Quota Arrangement

This tool forms a part of the Sourcing Administration. A quota arrangement divides the total requirement of a material over a period among certain sources of supply by assigning a quota to each source

1 To be familiar about the process of Quota Arrangement Pre-requisites Material Master Info Record Source List Course content Concept Note Fields in red boxes are mandatory fields.Arrangement 174 Important Data for Quota

Duration (hours) Objective

Concept

Quota Arrangement is a tool which is used in Sourcing


Administration

A Quota Arrangement divides the total requirement of a Material

among the certain Sources of Supply (Vendors) and then assigns the Quota to each Source.

This particular Quota specifies the portion that is to be procured


from that assigned Source.

175

Important Data for Quota Arrangement

Following are the important datas required for maintaining a Quota


Arrangement Material No/Plant No to which the Quota Arrangement applied Procurement Type of the Material Vendor Number Validity period of the Quota Arrangement Quota to be assigned to the each source of supply
176

Quota Rating Formula

Quota Rating = Quota-allocated Quantity + Quota Base Quantity


Quota Quota-allocated quantity: Total quantity from all purchase requisitions, purchase orders, release orders, and scheduling agreement schedules allocated to a given source of supply. (The quantities of quota-allocated planned orders are also taken into account)

Quota base quantity: This is the Quantity used to control the quota arrangement when new sources of supply are identified /included.
Quota: This is the number indicating the portion of total requirement of the Material that is to be given or assigned to a particular source/vendor.

177

Source Determination based on Quota Rating

The Source with the Lowest Quota Rating represents the Valid Source. If more than 1 source has the quota rating as 0, then the source with the highest quota is selected. The Concept States that higher the quota, lower the quota rating and higher the probability that the relevant source will be determined as the valid source of supply.

178

Demo 1_Quota Arrangement

PROCESS FLOW

Customization Settings for Material Master

Create Info Record

Maintain Source List

Maintain Quota Arrangement

Display Quota Arrangement

Create Purchase Order

Assign & Process Purchase Requisition

Create Purchase Requisition

Click on the text mentioned inside the Box to go to the respective slides.

179

Demo1_Quota Arrangement

Objec To make settings in material master to enable tive Quota Arrangement

180

Demo1_Quota Arrangement

Objec To create an Info Record tive

181

Demo1_Quota Arrangement

Objecti To maintain a source list ve

182

Demo1_Quota Arrangement

Objec To create a quota arrangement. tive

183

Demo1_Quota Arrangement

Objec To create a Purchase Requisition tive

184

Demo1_Quota Arrangement

Object To assign vendors automatically to purchase ive requisitions depending upon their Quota

185

Demo1_Quota Arrangement

Objec To assign and process Purchase Requisitions tive


.

Select the 1st Req & Click on Assign Automatically.

186

Demo1_Quota Arrangement

Objec To assign and process Purchase Requisitions tive

Depending upon the Quotas the system will assign the Vendors.

187

Demo1_Quota Arrangement

Objec To assign and process Purchase Requisitions tive

Select the 1st Req & Click on Assignments.

188

Demo1_Quota Arrangement

Objec To assign and process Purchase Requisitions tive

Vendor Information is displayed.

189

Demo1_Quota Arrangement

Objec To assign and process Purchase Requisitions tive

Click on the vendor & save the document then click on Process Assignment.
A Purchase Order Dialog Box will open and you will have to click on ok to draft in the Purchase Order.

190

Demo1_Quota Arrangement

Objec To create a Purchase Order with reference to a tive Purchase Requisition

Select the Purchase Requisition & Click adopt.

191

Demo1_Quota Arrangement

Objec To create a Purchase Order with reference to a tive Purchase Requisition

Click on Save

192

Demo1_Quota Arrangement

Objec To display a Quota arrangement tive

Note that the allocated qty has changed on the account of qty covered under the earlier 2 requisitions.

193

Agenda

Automatic creation of Purchase Order Duration (Hours) Objective

Automatic Purchase Order is a process by which the system automatically creates the purchase orders from a particular Purchase Requisition 1

To be familiar with the process of Automatic Purchase Order Pre-requisites Knowledge about Material Master, Vendor Master, Info Record, Source Note Fields in red boxes are mandatory fields. 194 List & Purchase Requisition

Concept

Automatic Purchase Order is a process by which the system


automatically creates the purchase orders from a particular Purchase Requisition

195

Demo 1_Automatic Purchase Order


PROCESS FLOW

Customization Settings for Material Master

Customization Settings for Vendor Master

Creation of Info Record

Maintaining Source List

Automatic Creation of Purchase Orders From Requisitions

Creation Purchase Requisition

Click on the text mentioned inside the Box to go to the respective slides.

196

Demo 1_Automatic Purchase Order

Objecti ve

To make settings in Material master for Automatic PO to be enabled.

197

Demo 1_Automatic Purchase Order

Objec To make settings in Vendor master for tive Automatic PO to be enabled.

198

Demo 1_Automatic Purchase Order

Object To make settings in Info Record for Automatic ive PO to be enabled

199

Demo 1_Automatic Purchase Order

Objec To maintain source list in order to enable tive Automatic Purchase Order

200

Demo 1_Automatic Purchase Order

Objec To create a Purchase Requisition. tive

201

Demo 1_Automatic Purchase Order

Objec To create Purchase Orders automatically from tive Purchase requisitions

Click Here

202

Demo 1_Automatic Purchase Order

Objec To observe the Purchase orders created tive automatically

Note the Following

203

Agenda

Account Assigned PO Duration (Hours) Objective

It is a option in a Purchase Order by which procurement of material is possible for direct consumption 1 To be familiar with about Account Assignment PO Purchase Order Creation

Pre-requisite
Course content

Definition Concept Purpose Procurements Note Fields in red boxes are of mandatory fields.

204

Account Assigned PO

It is a option in a Purchase Order by which procurement of material is possible for direct consumption.

205

Procurement of external services

External services

Company occasionally requires small maintenance tasks( for example, changing the defective lights ) to be carried out by external contractors. This is called service PO or External services management.

To be familiar with the process of Service procurement of external services Note Fields in red boxes are mandatory fields. Pre Procurement of materials requisites Course

Duration (Hours) Objective

Introduction

206

Introduction

How does your company procure an external service?


Company occasionally requires small maintenance task ( for
example, changing the defective lights, house keeping, painting ) to be carried out by external contractors. This is called External services management or service PO

Procurement of services are of two types :


planned services un planned services

207

Concept

Master records for creating service PO: Service master record Master conditions for services Standard service catalogue Model service specifications

A service master record contains a service description and unit of


measure.

Assign a price to each service master record via conditions or can


be entered manually.

208

Concept

Stock material are subjected to inventory management, whereas

services are procured for direct consumption for eg., a cost centre, a project

The system stores services that have been performed in service

entry sheets. The relevant postings are made in financial accounting and cost accounting.

209

Concept

When entering the services , you reference the purchase order. You
can copy the planned services directly from the purchase order into the service entry sheet.

Un planned services can be entered manually. The invoice verification procedure is carried out with reference
purchase order. This means that all service entry sheets accepted for this purchase order are suggested for invoice verification.

210

MM,FI/CO,PM,PS integration

Determination of Needs PM plant maintenance PS project system

MM

External procurement Purchasing

Master data Service master record Material Creditor G/l accounts

Entry of services

Receipt of invoice Invoice verification

performed Account assgt.update

Financial accounting

211

Process Flow

Payment

Determination of Requirements

Creation of Service specifications Source determination Bid invitation

Invoice verification

Service acceptance Quotation entry Service entry sheet Award phase PO monitoring / Follow-up PO processing

212

Objecti To Create a Service PO ME21N ve

Demo1_Procurement of External services

213

Demo1_Procurement of External services

Objec Create service entry sheet ML81N tive

214

Demo1_Procurement External services

Objec Invoice verification - MIRO tive

215

Concept

Scenario handled in MM for Procurement for Consumption is


Account Assignment of PO

In Account Assignment while doing GR the relevant GL account gets


Debited

216

Options of Account Assignment

Single Account Assignment Multiple Account Assignment

217

Purpose of Procurement

Procurement for Stock Procurement for Direct Consumption

Procurement for Stock

Procurement for Consumption

218

Account Assignment Category

A key indicating whether an item is to be assigned to an auxiliary account (such as cost center) . The account assignment category determines which account assignment details are required for the item for ex : cost center or account number.

219

Account Assignment Category

Usage of Account Assignment Category in MM


Purchase Order

ASSET Cost Centre Production Order Project Sales Order Order

220

Procurement for stock v/s consumption


Procurement for Stock Procurement for Consumption

With Mat.Master Record

With Mat.Master Record

Without Mat. Master Record

Account Assignment

Enter Acc. Ass. Category Manual Acc. Assgn


Data Entry Required

Automatic Acc.Assgt
Data from Mat. Master

Stock Account

Consumption Acc. Cost Centre Asset

221

Procurement for stock v/s Procureme consumption Procureme


nt for Stock

nt for Consumpti on

Material Number is Required

Material Number is not mandato and it is possible Account Assignment Category mandatory

No Account Assignment Category

Posting to Stock Account

222 Posting to Consumption Account

Demo1_Account Assigned PO

Objec To Create Account Assignment PO by using Cost tive Centre

223

Demo2_Customising settings

Objec To Maintain Account Assignment Category tive

224

Demo2_Customising settings

Objec Defining combination of Item Category & tive Account assignment category

225

Agenda

Release Procedure

To be familiar with the process of Release Strategy Pre-requisites Different kinds of Purchasing documents present in an organization Note Fields in red boxes are mandatory fields.

Duration ( Hours) Objective

This tool forms a part of MM Purchasing. A Release Strategy is the process of approving purchasing documents electronically. 2

226

Introduction

What is a release procedure in the SAP R/3 System? How does your company currently handle this approval process? What criteria currently drive your approval process? Who currently has to approve your documents? Do certain people have to approve before others? What happens if your documents are not approved?
227

Concept

Release Procedure is the electronic approval process for releasing / approving any purchase document in SAP. It can be used to release internal documents such as Purchase Requisition or external documents such as Purchase order, contract, scheduling agreement.

228

Release procedure are of two types

Release procedure with classification Release procedure without classification

229

Demo1_Release Procedure with Classification

Creation of Characteristics

Grouping the Characteristics in a Class

Defining the Release Procedure

Definition of Release Group

Definition of Release Codes

Definition of Release Indicator

Creation of Release Strategies

Defining the Release Prerequisites

Specify the Release Status for each Release Code

Classification

Simulation of Release Strategy

230

Characteristics

Characteristics are the criteria upon which release condition are satisfied. Example - Plant, Account Assignment Category, Total Value, Material Group etc.

231

Demo1_Release Procedure with Classification

Objec To create different characteristics for the release tive procedure

Click on Edit Characteristics

232

Demo1_Release Procedure with Classification

Objec To create different characteristics for the release tive procedure

233

Demo1_Release Procedure with Classification

Objec To create different characteristics for the release tive procedure

234

Demo1_Release Procedure with Classification

Objec To create different characteristics for the release tive procedure

235

Class

Class is used to group together characteristics that are used to constitute a release condition for release strategy.

236

Demo1_Release Procedure with Classification

Objec To group the Characteristics in a class tive

Click on Edit Class

237

Demo1_Release Procedure with Classification

Objec To group the Characteristics in a class tive

238

Release Group

It is the grouping of one or more release strategies. This permits multiple usage using the same release key. Example Release group 01 is defined for purchase requisitions and release group 02 for purchase orders. You can define release strategy S3 for both purchase requisitions and purchase orders.

239

Demo1_Release Procedure with Classification

Objecti To define a Release Group ve:

Click on Define Release Procedure

240

Demo1_Release Procedure with Classification

Objecti To define a Release Group ve: Click on Release Groups

241

Release Code / Point

It is a two-character ID given to a person to release (approve) a purchasing document. Example 01,02, or AA, AB, EN for Engineer, MG for Manager etc.

242

Demo1_Release Procedure with Classification

Objecti To define a Release Code ve:

Click on Define Release Procedure

243

Demo1_Release Procedure with Classification

Objecti To define a Release Code ve: Click on Release Codes

244

Demo1_Release Procedure with Classification

Objecti To define a Release Code ve:

Define Release Codes here and their descriptions

245

Release Status / Indicator

It is a code that represents a release status. The release status is the current standing of the item or the purchase document. Example If the proper approval has not yet been received, the release status would display as blocked. The status tells the system what is allowed for the item or document

246

Demo1_Release Procedure with Classification

Objecti To define a Release Indicator ve:

Click on Define Release Procedure

247

Demo1_Release Procedure with Classification

Objecti To define a Release Indicator ve:

Click on Define Release Indicator

248

Demo1_Release Procedure with Classification

Objecti To define a Release Indicator ve:

Define Release Indicators here

249

Release Pre requisite

It indicates the order in which individual release codes may release the purchasing document. Example 01,02,03 are release codes. 03 has prerequisite of code 02 and 01, which means 03 can release the document only if 01 and 02 have released it.

250

Demo1_Release Procedure with Classification

Objecti To define a Release Pre-requisite ve: Click on Release Strategies

251

Demo1_Release Procedure with Classification

Objecti To define a Release Pre-requisite ve:

Double Click on Release Strategies


252

Demo1_Release Procedure with Classification

Objecti To define a Release Pre-requisite ve: Click on Release Pre requisites

253

Demo1_Release Procedure with Classification

Objecti To define a Release Pre-requisite ve: Flag the release codes in the required sequence and click on continue

254

Demo1_Release Procedure with Classification

Objecti To define a the status of the purchase ve: document after each release

Click on

Release status Flag the Release codes

255

Demo1_Release Procedure with Classification

Objecti To define a the classification of the release ve: strategy Click on Classification

256

Demo1_Release Procedure with Classification

Objecti To define a the classification of the release ve: strategy

Give the

different values for the characteristics Click on the right arrow as indicated to go back to the release strategy screen

257

Demo2_Release Procedure with Classification

Release procedure without classification can be used only for

Purchase requisitions . This procedure has four preset characteristics namely A/c Assignment group, Material Group, Plant and Purchase requisition value.

In order for release procedure without classification to be


configured, the following must be defined.

Release codes Release indicators Assignment of release indicators Release prerequisites Determination of release strategy

258

Demo3_Release of a Purchase Order

Objecti To Release a Purchase Order ve:

259

Demo3_Release of a Purchase Order

Objecti To Release a Purchase Order ve:

Click on Individual release

260

Demo3_Release of a Purchase Order

261

Demo3_Release of a Purchase Order

P O released by all the release codes

262

Agenda

Pricing and The term Pricing is used broadly to Conditions describe the calculation of prices & costs. Conditions enables you to store pricing stipulations agreed with the vendor Duration 3 (Hours) Objective To be familiar with Pricing and Conditions PreInfo record requisites Material master Vendor master Purchase Order Note Fields in red boxes are mandatory fields. 263 Course Concept

Concept

Pricing
The term Pricing is used broadly to describe the calculation of prices & costs Pricing in SAP is triggered through principle of Condition Technique. Gross price Price excluding any possible discounts or surcharges Net price Price taking discounts, surcharges, and possibly taxes into account Effective price Net price plus delivery costs, cash discount, and miscellaneous provisions for accrued costs or rebates
264

Concept

Conditions
Conditions enables you to store pricing terms agreed with the vendor

Time dependent Condition


Validity periods and scales can be specified for these conditions.

Time independent depend Condition


No validity periods and scales can be defined for these conditions.

Condition technique
Specifies method by which the system determines prices from 265 information stored in condition record

Important Data for Conditions and Pricing


Key / Description

Control

PB00 Gross Price

Condition class Calculation Type Condition category Access sequence

: Prices : Qnty dependent : Base Price : Gross price

FRB1 Freight Absolute

Condition class : Discount/surcharge Calculation Type :Fixed amount Condition category : Delivery cost

SKTO Cash discount

Condition class Calculation Type Condition category

: Discount/surcharge : Percentage : Cash discount

266

Condition Technique

Access sequence It is a search strategy which searches for valid records of a certain condition types. Condition Type It represent pricing elements in the system, Example - percentage discounts ,freight costs, taxes or custom duties Condition Table A combination of fields that defines the key of a condition record.
267

Condition Technique

Calculation Schema A calculation schema groups together all condition types that play a part in calculating the price. It sets out the order in which the condition types are taken into account in the calculation. Schema Group Group of vendor or purchase organization that use same calculation schema.

268

Schema Determination

A predefined calculation schema can be determined for


Standard Purchase order Based on the schema group vendor and schema group pur org Stock transport orders Based on supply plant/pur org ,Document type and schema group purchase organization . Market price determination Based on the purchasing organization, a separate calculation schema can apply for the determination of the market price.

269

Schema Determination

Pur order

Schem a gr pur org

Schem a gr vendor

Calcul ation schem a

Pur org Vendor

1000 A

RM00 00
XM00 00 0001 0002 01 02 YM00 Vendor00A ZM000 0
270

Schema group 02

Important Data for Conditions and Pricing

The condition group embraces a number of different materials supplied by a vendor to which a uniform discount or surcharge applies. The condition group is a freely definable, four-character, alphanumeric string that is assigned in the info record.

271

Important Data for Conditions and Pricing

Info record Condition Group Vendor A Material 1 Condition Group XY Info record Vendor A Material 2 Condition Group XY Purchase Order Item Condition Group RGRO Vendor A Condition Group XY 2 % discount 10 Material 1 2 % discount 2 2 % discount Info record Vendor A Material 3 Condition Group XY 272 30 3 200 150 Price 100

Price Determination Process

When you create a PO, a contract release order, or a delivery schedule, the R/3 System searches existing documents for valid conditions and adopts it it as default values in the new document. The price determination process is carried out in a number of steps: First, the relevant calculation schema is determined. Then the system searches for condition records for all condition types listed in the calculation schema that have an access sequence assigned to them. The search for condition records is carried out in the order specified in the access sequence. The search is concluded when a valid condition record is found. 273

Price Determination Process : overview


Calculation schema Step 1 . . cond .type PB00 Pur org Vendor For Plant Material Condition Type : PB00 Access Sequence 0002 Condition Tables Access Sequence 0002 Condition Tables: 1. Contract item 2. Plant information 3. Info record . . Contract item No record exits Condition Tables 10 Pc 1000 A 1000 1 30.0 Purchase Order

Plant info record


Material 1 30.0 28.0 274

From 500 Pc

Header, Item & Group Condition

Header conditions are entered in the header of a document and relate to all the items of that document. Item conditions are conditions relating to a single item of a document. If the same condition occurs in different document items, the item values are added up and the result used as the basis for determining the scale level. If the condition type is entered at header level, the value is divided among the items

275

Important Data for Conditions and Pricing

276

Condition Exclusion

Condition exclusion procedure: If several condition records are valid for price determination purposes, you can define rules specifying which condition records are to be chosen and which are not to be taken into account. An exclusion group is a list of condition types that are compared with each other during the price determination process and lead to the exclusion of an entire group of condition types or individual condition types within a group.

277

Condition Records & Condition Tables

Condition type PB00

Vendor material Pur org Plant Condition table A017 (info record with Plant )

------

Condition record No

1000

1000

------

1234

Condition type PB00

Condition - -out - - - - Plant) Pur org with material Condition Vendor table A018 (info record record No A

1000

------

4321

-----record No table KONP item type condition 1234 PB00 ------

Condition

Condition

Condition Amount 10.0 11.0

------

------

4321

PB00

------

------

278

Demo1_Customizing Conditions and Pricing

Object To create an Access Sequence ive


Select 002 for gross price and click on Access

279

Demo1_Customizing Conditions and Pricing

Object To create an Access Sequence ive

280

Demo1_Customizing Conditions and Pricing

Object To define Condition types ive

281

Demo1_Customizing Conditions and Pricing

Object To define Condition types ive


Select PB00 And click on detail button

282

Demo1_Customizing Conditions and Pricing

Object To define Condition types - Control Data ive

283

Demo1_Customizing Conditions and Pricing

Object To maintain Condition tables ive

284

Demo1_Customizing Conditions and Pricing

Object To maintain Condition tables ive


Select a table No. other then from the list Eg - 965

285

Demo1_Customizing Conditions and Pricing

Object To maintain Condition tables ive


Select the Required field from the cat log and double click on it

286

Demo1_Customizing Conditions and Pricing

Object To define Condition control at plant level ive

287

Demo1_Customizing Conditions and Pricing

Object To define Calculation Schema ive

Select RM0000 And click on control

288

Demo1_Customizing Conditions and Pricing

Object To define Calculation Schema ive

289

Demo1_Customizing Conditions and Pricing

Object To defining a Schema determination ive


Select the calculation schema

290

Demo1_Customizing Conditions and Pricing

Object To defining a Schema determination ive

RM0000 is calculation schema for standard PO

291

Demo1_Customizing Conditions and Pricing

Object To defining a Schema Group ive


Double click on respective Schema groups

292

Demo1_Customizing Conditions and Pricing

Objec Defining Condition Exclusion tive

Click for defining condition exclusion

293

Demo1_Customizing Conditions and Pricing

Objecti Defining Condition Exclusion ve

294

Demo1_Customizing Conditions and Pricing

Objec Defining Condition Exclusion tive

Assignment of Condition Exclusion to Condition Types

295

Demo1_Customizing Conditions and Pricing

Objecti Defining Condition Exclusion ve

Assignment of Condition Exclusion to Calculation Schema

296

Demo2_ Creating purchase order

Objecti To observe the conditions in a purchase order ve


Header Conditions

297

Demo2_ Creating purchase order

Objecti To observe the conditions in a purchase order ve


Item conditions

298

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

299

Agenda

Goods Receipt

Duration (hours) Objective Prerequisites

Goods Receipt is the term used to describe an increase in warehouse stock due to receipt of goods from external vendors or from internal stock transfer 1

To get familiar with Goods Receipt Material Master Info Record 300

Goods Receipt

The term used to describe an increase in warehouse stock due to receipt of goods from external vendors, from internal stock transfer, as initial stock balance or for quality inspection.

301

Reference documents for Goods Receipt are

Purchase Order Order Reservation Inbound delivery Outbound delivery

302

Effects of a Goods Receipt

Stock & Consumption A/c updated Material & Accounting document created Stock and value updated in material master PO /PO history update QM lot created.

303

Demo1_ Goods Receipt for PO

Objecti Goods Receipt for PO (MIGO) ve

304

Agenda

Goods Issue

Duration (Hours) Objective Pre-requisites Course content

A reduction in warehouse stock due to a withdrawal of stock or the delivery of goods to a customer. 1 To get familiar with Goods Issue Purchase Order

Introduction Concept Goods Issue - General Note Fields in red boxes are mandatory fields. Demo1_Goods Issue Without

305

Introduction

A reduction in warehouse stock due to a withdrawal of stock or the


delivery of goods to a customer.

306

Features

The Inventory Management system supports the following types of goods issues:
Withdrawal of material for production orders Scrapping and withdrawal of material for sampling Return deliveries to vendors Other types of internal staging of material Deliveries to vendors without the involvement of the SD Shipping component

307

Purpose

Companies usually differentiate between various types of Goods Issues, each of which is handled in R/3 system as follows. Stock Scheduled for Delivery Material Withdrawals for Production Orders Other Types of Internal Staging of Material Return Deliveries to Vendors Scrapping/Sampling
308

Demo1_Goods Issue_ Without Reference

Objecti To post a Goods issue ve

309

Demo1_Goods Issue_ Without Reference

Objecti To post a Goods issue ve

310

Demo2_Goods Issue _ With Reference to Reservation

Object To post a Goods Issue With reference To ive Reservation

311

Demo2_Goods Issue _ With Reference to Reservation

Object Goods Issue With reference To Reservation ive

312

Results Of A Goods Issue Posting


A goods issue has the following results in the system.

Material document is created Accounting document is created Goods receipt/issue slip is created Stock update Update of G/L accounts Consumption update Reservation update Order update

313

Agenda

Transfer Posting

This component helps us to get an insight on the process of Transfer Posting.

Posting Master, Movement Note Fields in red Material boxes are mandatory fields. PreTypes

Duration Hr (Hours) Objective To get familiar with Transfer


314

Introduction

What do you mean by Transfer Posting?


What is the difference between a stock transfer and a transfer
posting ?

315

Concept

A Transfer Posting usually refers to a change in a materials stock

for example release from quality inspection, accepting consignment material, etc.

316

Demo1_Transfer Posting Process

Object To get to know the status of the Material ive

317

Demo1_Transfer Posting Process

Object To get to know Quantity of Material in Quality ive Inspection and to transfer to Unrestricted use.

318

Demo1_Transfer Posting Process

Object Transfer all the stock from Quality to ive Unrestricted use

319

Demo1_Transfer Posting Process

Object Transfer all the stock from Quality to ive Unrestricted use

320

Demo1_Transfer Posting Process

Object Observe the Stock Balances ive

321

Demo1_Transfer Posting Process

Object Observe the Stock Balances ive

322

Agenda

Stock Transfer

This component helps us to get an insight on the Stock Transfer process.

of Stock Transfer Master, Movement Note Fields in red Material boxes are mandatory fields. PreTypes

Duration 1 Hr (Hours) Objective To get familiar with process


323

Introduction

What do you mean by Stock Transfer?


What are the levels at which the Stock Transfer can occur?

What are the different procedures for Stock Transfer?

324

Concept

Stock Transfers are components used to remove stock from one


storage location and place them in another storage location.

Depending upon the organization of the company and its sales


policy, internal stock transfers also might be necessary.

325

Stock Transfers can occur at 3 different levels

Stock Transfer from Company Code to Company Code Stock Transfer from Plant to Plant From Storage Location to Storage Location (within a Plant)

326

Stock Transfers can be carried out in 3 different ways

Stock Transfer using the 1 step procedure Stock Transfer using the 2 step procedure Stock Transfer using the Stock Transport order

327

Demo1_ Stock Transfer Plant to Plant -1 Step

Object Check for stock balance of Material, ive Fluconazole in Plant 1000

328

Demo1_ Stock Transfer Plant to Plant -1 Step

Object Check for stock balance of Material, ive Fluconazole in Plant 1000

329

Demo1_ Stock Transfer Plant to Plant -1 Step

Object To transfer 20 Qty of Material, Fluconazole ive from Plant 1000 to Plant 1100

330

Demo1_ Stock Transfer Plant to Plant -1 Step

Object To transfer 20 Qty of Material, Fluconazole ive from Plant 1000 to Plant 1100

331

Demo1_ Stock Transfer Plant to Plant -1 Step

Objec To check whether 20 quantity of Fluconazole is tive received in Plant 1100 after the stock transfer.

332

Demo1_ Stock Transfer Plant to Plant -1 Step

Objec To check whether 20 quantity of Fluconazole is tive received in Plant 1100 after the stock transfer.

333

Agenda

Reservation A request to the warehouse to keep materials ready for withdrawal at a later date and for a certain purpose. Duration 1 (Hours) Objective To get familiar with Reservation Prerequisites Course content Material master and Purchase Order.

Concept Demo1_Create Reservation

334

Reservation

Make a request to the warehouse to keep materials ready for withdrawal at a certain date and for a certain purpose. it simplifies and accelerates the Goods receipt process. A reservation for goods can be requested by various departments for various account assignment objects (such as cost center, order, asset, etc.).

335

Manual and Automatic Reservations

In R/3 system Manual reservations are entered directly by the user. In R/3 system Automatic reservations are generated automatically by two types. Reservations for orders, networks, WBS elements: The components from the warehouse are automatically reserved When an order, a network, or a project is created. Stock transfer reservations: The system generates a stock transfer reservation in the plant for the replenishment quantity when the available stock on hand falls below the reorder point If reorder 336

Concept

When a reservation is created in the system, the following activity takes place: In the material master record, total stock and unrestricted-use stock of the material remain unchanged. Reserved stock is increased by the reserved quantity. In MRP, available stock is reduced by the reserved quantity. This is visible in the current stock/requirements list. The reservation causes an entry to be made in the requirements planning file.

337

Creating a Reservation

In Inventory Management Choose, Reservation -> Create. The initial screen appears, Enter the following data: Base date Movement type Plant The collective entry screen appears. Enter an Account Assignment Some of the account assignment fields (for example, G/L account) need not be maintained manually. The relevant information is automatically copied from the account assignment object Enter a G/L Account If you do not enter an account, the system will automatically determine the G/L account when the 338

Creating a Reservation Using a Reference Document

You use this function to copy items from an existing reservation when entering a new reservation. When doing this, In Inventory Management Choose, Reservation -> Create. Enter the base date of the new reservation. Enter a movement type only if you want a movement type that differs of the reservation to be copied. Enter the reservation No. to be copied in the Reservation field (under Ref.). You can also choose Reservation -> Create w. reference To reference. The item selection screen is displayed. The list contains all items from the reference reservation. If necessary, change the account assignment. 339 Select the items to be copied to the new reservation. You can

Displaying a Reservation

Display an individual reservation (MB23) In Inventory Management Choose, Reservation ->Display. Display a list of all reservations(MB25) In Inventory Management Choose, Reservation -> Reservation list.

340

Changing a Reservation

Even after withdrawn the reserved quantity, You can change a manual reservation at any time. You can change the data (for example, quantity or storage location) directly on the collective processing screen. Alternatively, you can select one particular item and change the data on the detail screen You cannot change the account assignment data (for example, cost center or order). If the account assignment is incorrect, you must delete the reservation and enter a new reservation.
341

Demo1_Create Reservation

Objec To create a reservation tive

342

Demo1_Create Reservation

Objec To create a reservation tive

343

Demo1_Create Reservation

Objec To create a reservation tive

344

Agenda

Sub Contracti ng

Duration (Hours) Objective Prerequisite s

The vendor (the subcontractor) receives components from which he manufactures a product. The product is ordered in a purchase order. The components required by the vendor to manufacture the ordered product are listed in the purchase order and provided to the subcontractor 2 To become familiar with Sub-Contacting Info record, Material master 345 Vendor master

Sub-Contracting

This unit will cover

( Purchase order ) Sub-Contacting order Provision of parts for sub contracting Goods receipts and postings Posting a Subsequent Adjustment By-products in Subcontracting Subcontracting for Project and Sales order stock Scheduling Agreements with Subcontracting

346

Concept In subcontracting, the vendor (the subcontractor) receives components from which he manufactures a product. The product is ordered in a purchase order. The components required by the vendor to manufacture the ordered product are listed in the purchase order and provided to the subcontractor. The components can be determined by the system via a bill of material (BOM).

347

Creating a Subcontract Order

In PO screen, enter the material number which you want to order the

vendor and item category as L. Other entries as applicable for the PO. entered or by means of BOM explosion.

The components being supplied from the enterprise shall be manually


The requirement date of the material need not be entered which will be
automatically calculated by the system. i.e delivery date of the item minus planned delivery time.

348

Providing Components With No Order Reference

To post components from the unrestricted-use stock to the stock of material provided to vendor, proceed as follows: From the Inventory Management menu, select Goods movement Transfer posting. Enter the issuing plant ,storage location. &Choose Movement type Transfer posting Stock with subcontractor From unrestricted use Press ENTER. The collective entry screen appears. Enter a vendor and the individual items. Post the document.
349

Providing Materials From Another Vendor

If components to be provided to the subcontracting vendor are supplied


not by your company but by a third-party, you can order the components from the third-party and specify the subcontractor in the purchase order as the delivery address. At GR, the components are posted directly to the stock of the material provided to vendor.

To order components for a subcontract order from a vendor and have


them delivered direct to the subcontractor, enter a standard purchase order with a different delivery address

350

Providing Materials From Another Vendor

From the Purchasing menu, choose Purchase order Create Vendor known. Maintain the data on the initial screen. Make sure you enter the vendor of the components and the plant concerned. Enter the items. Then choose Item More functions Delivery address. A dialog box appears in which you enter the delivery address of the subcontractor. In the field Vendor, enter the number of the subcontractor and select the SC vendor box. Selecting the box causes the components at goods receipt to be posted directly to the stock of the material provided to vendor when the goods receipt is posted. 351 Save the purchase order.

Posting the Goods Receipt of the Components When the vendor delivers the end product (semi-finished item), you
post a GR for the subcontract order in the same way as for a standard PO. The system determines the components for each order item and creates a goods issue item for each component. the materials supplied by the vendor and Goods issue items for the components

As a result, the material document consists of Goods receipt items for


After you have copied an order item, you can change the quantities in
the goods issue items.

A goods receipt posting has the following results in the system:

the stock of material provided to vendor at plant level is increased. The stock of material provided to vendor is not managed at storage location level, since the stock is no longer stored at your company. Valuated stock at plant level increases.
352

Posting a Subsequent Adjustment

If the subcontractor informs you after these GR postings that a greater or smaller quantity of the components was actually consumed than planned in the purchase order, you must post a subsequent adjustment to correct the component consumption. If the component is a by-product, you must post the corrected byproduct receipt (excess receipt) or by-product issue (short receipt). When returning subcontracting components (under-consumption), the system checks that the quantity returned is not larger than the quantity originally transferred to the subcontractor. This check takes place on material and plant level.

353

Posting a Subsequent Adjustment

In the transaction goods movements MIGO, select the business operation Subsequent Adjustment from the list box. The system automatically chooses PO as the reference document. Enter the document number of the PO and the item number for which you want to post a subsequent adjustment. For the selected item, enter the difference quantity specified by the vendor and determine with the Under-consumption/Short Receipt indicator, whether a receipt or an issue is concerned. If you set the indicator, it is an under-consumption or short receipt. If you do not set the indicator, it is an excess consumption or excess receipt. Post the subsequent adjustment. The specified quantities of the originally posted GR are corrected 354 by the system to the subsequently adjusted quantities

By-Products in Subcontracting In the GR for the Sub-Contract purchase order, the system automatically posts the receipt of the by-products. (In the material document, you can identify the by-product items from their movement type 544. Note that the by-products are posted to the "stock of material provided to vendor, also referred to as "subcontracting stock"). The receipt can still be corrected using the Subsequent Adjustment function. Due to the receipt of the by-products, the value of the manufactured material is reduced. To transfer the by-products quantities from the "stock of material provided to vendor" (or subcontracting stock) to the unrestricteduse stock, you enter a transfer posting using movement type 542 (reversal of the provision of the components).
355

Subcontracting for Sales Order Stock and Project Stock

The subcontracting orders are account-assigned to a sales order or a WBS element. Thus, the components are not transferred (using a transfer posting) to the "stock of material provided to vendor" but are directly withdrawn from the sales order stock or the project stock at the time of the GR. The material manufactured is also posted to the sales order stock or to the project stock. The cost of subcontracting is then debited to the sales order or WBS element.

356

Entering Scheduling agreement and Delivery Schedules


To enter several delivery dates for a subcontract order item, Display the scheduling screen for the item and enter the quantities and dates.

If the ordered material has a bill of material, the components are


copied from the bill of material.

If you do not use bills of material, you must either enter the

components manually or refer to an existing purchase requisition. You have to enter the components for every delivery schedule.

357

Entering Scheduling agreement and Delivery Schedules


Position the cursor on a schedule line and choose Item Component Overview to display the screen for processing components. You can enter or change the individual components in the same way as an order item. To make entering the schedule lines easier, copy the components for other delivery schedule items. To do this, select Edit Repeat components Activate Save the delivery schedule. When you print the scheduling agreement, the quantity required per component and date required are reprinted.

358

Demo_1 Creating a Sub-contact PO


Objective To create Sub-Contracting Purchase Order
L Item Category for Sub-Contracting

To Enter a Components for Main material Click on Components Or click on Explode BOM

359

Demo_1 Creating a Sub-contact PO


Objective To enter components in the Sub contract PO

Enter components required for Main Material

360

Special stocks

Special stocks

Special stocks are stocks that are managed separately because, they do not belong to your company or being stored at a particular location

Duration 3 (Hours) Objective To become familiar with special stock PreInfo record, material master and vendor requisites master and Purchase order Course
Concept Consignment Stocks

361

Concept

Special Stocks
Special stocks are stocks that are managed separately, Because they do not belonging to your company or being stored at a particular location Special stocks and special procurement types are divided into the following areas. Consignment Third-party processing Returnable transport packaging Pipeline handling Sales order stock Project stock Subcontracting 362 Stock transfer using stock transport order

Consignment Stocks

The vendor provides materials and stores them in your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. The advantage of this is that the companys liabilities increase only for the quantity withdrawn. Only then is the vendor required to pay. The invoice is due at set periods of time, for example, monthly.

363

Procurement of Consignment Material


You can procure consignment material via purchase requisitions, purchase orders and outline agreements for consignment material. Creating Purchase Requisitions for Consignment Material You enter purchase requisitions for consignment materials in exactly the same way as for other materials. You accept the order category (such as NB) that the system proposes as a default and enter the item category K (for consignment).

364

Creating Purchase Orders / Outline Agreements for Consignment Materials

The procedure for creating consignment orders is the same as for standard purchase orders or outline agreements. However, you must note the following Enter the item category K for the consignment item. Ensure that the goods receipt is posted to the consignment stores

Do not enter a net price in the Purchase Order

365

Goods Receipt for Consignment Purchase Order

From the Inventory Management menu, choose Goods movement

Goods receipt For purchase order PO number known. The initial screen is displayed.

Enter the purchase order number to which the goods receipt refers. You can also enter the plant and storage location.

Select the movement type with Movement type PO to warehouse. Press ENTER to display the item overview.
Select the items you wish to process and check the quantities delivered. If required, enter a stock type in column S. Copy (adopt) the selected items.
366

Goods Receipt Without Purchase Order


Choose Goods movement Goods receipt Other from the

Inventory Management menu.

On the initial screen choose Movement type Receipt W/o purchase order To consignment unrestricted. Enter the plant and storage location. Press ENTER to display the collective entry screen. Enter the vendor number. Enter the number and quantity of the consignment material. Post the goods receipt.
367

Updating of Consignment Stock

After a GR for consignment material has been posted, the consignment stock of the material increases &This is stock is available for MRP. However, the material's valuated stock does not increase since the consignment stock still belongs to the vendor.

368

Consignment Stocks

Displaying the stock overview


From the Inventory Management menu, choose Environment Stock Stock overview. Maintain the data on the initial screen and carry out the evaluation. An overview is displayed of your own stock and the consignment stock according to your selection criteria.

Displaying consignment stocks


This function allows you to display the consignment stocks. From the Inventory Management menu, choose Environment Consignment

Vendor consignment Stock. Maintain the data on the initial screen and carry out the evaluation

369

Goods Issue from Consignment Stock

You can only post a goods issue from consignment stock to consumption, if the material belongs to unrestricted-use stock. If the consignment material is in quality inspection or blocked stock, you must first transfer it o the unrestricted-use stock. From the Inventory Management menu, choose Goods movement Goods issue. Enter the data as required, including movement type, account assignment object.

After the goods issue, the vendor is due the net value of the goods issue.

370

Transferring Consignment Stocks

From the Inventory Management menu, select Goods movement Transfer posting. The initial screen is displayed.

type

Enter the plant and the issuing storage location. Choose Movement Transfer posting Consignment SLoc unrestricted use. To unrestricted use. (It is also possible to transfer quality inspection stock or blocked stock). Press ENTER. The collective entry screen appears. Enter Receiving storage location, Vendor, Material and Quantity. Post the stock transfer.

The transferred quantity is now managed in the consignment stock 371 of the receiving plant.

Settling Consignment Liabilities

Removing material from consignment stores or transferring material to your companys own stock results in liabilities towards the vendor. You should settle these liabilities at regular intervals. Consignment materials are settled without the vendor issuing an invoice. The vendor can only manage its consignment stock by taking deliveries and payments into account. You settle posted withdrawals and return deliveries yourself in logistics Invoice verification and send the vendor a statement of the settlement. You can perform this settlement periodically in the background. The documents involved are 372 Invoices and Credit memos.

Pipeline Stocks

A pipeline material is a material that flows directly into the

production process from a pipeline (for example, oil, tap water, electricity). the pipeline material is always available, i.e. it can be withdrawn from the pipeline at any time and in any quantity. They are not stored or kept in stock. No physical inventory is taken. Pipeline movements are mandatory in all valuation areas; i.e. no other goods movements may be posted.

Creating a Pipeline Material


When creating a pipeline material, it is important that you note the following: Assign the material to material type PIPE that allows pipeline movements. 373

Creating a Pipeline Info Record

You determine the price of a pipeline material from a vendor in a


pipeline info record. You create a pipeline info record as follows:

From the Purchasing menu, choose Master data Info record


Create.

Select the info category Pipeline & On the initial screen enter the
vendor, material and standard purchasing organization assigned to the plant.

Maintain the info record data and save.

374

Maintaining the Source List

If only one pipeline info record has been defined, Then it


appears as a default when you post goods movements.

If you have more than one pipeline info record for a material,
you can enter the preferred vendor in the source list. This vendor then appears as a default when you enter goods movements. If no vendor has been entered in the source list, you have to select a vendor with every goods movement.

375

Posting Goods Issue from the Pipeline

A withdrawal from the pipeline is posted as follows:


From the Inventory Management menu, choose Goods
movement Goods issue.

Maintain the data on the initial screen. Choose Movement


type Consumption To cost center (or order, network, account assignments) From pipeline (Movement types :
201 P, 261 P, 281P, or 291 P)

You do not have to enter the vendor If more than one vendor exists, a pop-up window appears
376 with a list of pipeline vendors, from which you can select the

Pipeline Stocks

A Goods Withdrawal from the pipeline results in the following updates in


the system:

The vendor liability that must be settled periodically in a similar


way to the management of consignment stocks.

A consumption history is kept. The pipeline withdrawal has no effect on existing warehouse
stock or on the availability of the material.

377

Settling Pipeline Liabilities

If pipeline and consignment liabilities are to be posted to the


same account, you have to settle consignment and pipeline liabilities together.

If pipeline and consignment liabilities are to be posted to


different accounts, you settle them separately.

You settle pipeline liabilities for a vendor in the same way that
you settle consignment liabilities.

378

Third party Stocks

Third-Party Processing In third-party processing, you place a purchase order with a vendor to deliver goods or perform a service for a customer (third party). This means that your company forward the order to an external vendor who then sends the material directly to the customer and invoices you. Company
PO

Order

Customer

Delivery (Goods )

Vendor

379

Third party Stocks

Third-Party Processing in Sales If a material can only be procured externally, you can specify it in the material master record that it is always processed as a third-party item when a sales order is processed. Resulting Activities in Purchasing A purchase requisition is automatically created when a Sales Order is created If a third-party item from the sales order calls for more than one delivery schedule, the system creates a purchase requisition item for each individual quantity. The number of the purchase requisition is updated in the sales order. The item is scheduled automatically. The delivery time required by the vendor and the processing time in Purchasing are taken into account.
380

Creating a Third-Party Item Manually

If you do not use SD, you can plan a third-party business transaction using a purchase requisition as follows

Enter the item category S and an account assignment category Enter the account assignment data (for example, the number of
the G/L account). Which account assignment data you have to maintain depends on the account assignment category.

Save the purchase requisition.

381

Third party Stocks -Purchase Order

A third-party order is usually created referencing a third-party

item in a purchase requisition. You can create purchase orders in this way individually or collectively. If you do not use SD and have not entered a purchase requisition, you can also enter a third-party order manually. Enter a third-party item manually in the same way as the purchase requisition. After entering the account assignment, you can see a screen in which you can enter the address of the sold-to party. Enter either the customer number or a delivery address. Check whether goods receipts can be made for the third-party item. Goods receipts are possible if the goods receipt indicator is set in the item. Save the purchase order.

382

Third party Stocks

Third-Party Processing in Inventory Management


Third-party order involves a movement from the vendor direct to
the customer, Inventory Management is not in any way affected. If you want to document the movement in the system, you can create a GR for the third-party order.

Entering a Goods Receipt ( GR ) You enter a GR for a third-party order in the same way as a
standard GR for a PO with account assignment.

Results of the Goods Receipt.

No stock update is made, as the GR is posted to consumption.


The value of the purchase order is posted to a GR/IR clearing 383
account for the purposes of Invoice Verification.

Third-Party Processing in Invoice Verification

When the vendor invoice arrives, You enter the invoice in the

same way as an invoice for a standard PO, for the third-party order also.

If you posted a statistical GR for the PO, the invoice receipt

results in an offsetting entry on the GR/IR clearing account, which is cleared.

If the customer is to be billed in SD based on the invoice

quantity specified in the vendor invoice, this quantity is used as the basis for the billing document in SD. The billing document can only be posted once the vendor invoice has been posted.

384

Returnable Transport Packaging (RTP) Stock

Returnable Transport Packaging (RTP) Stock


It is a multi-trip packaging medium (for example, pallets or containers) in which goods can be transported more than once between vendors and customers. RTP from a vendor that is stored at your premises is managed as special stock and clearly assigned as belonging to the vendor. It is the property of the vendor and is therefore not included in the customers valuated stock RTP stock is always unrestricted-use stock. The stock can neither be in quality inspection nor blocked To enable you to manage the returnable transport packaging stocks of material belonging to different vendors separately, special stock data is required in addition to material master data. This special stock data is defined for every vendor at the storage 385 location level.

Posting Other Goods Receipts to RTP Stock

From the Inventory Management menu, choose Goods movement Goods receipt Other. The initial screen for this function appears.

Two movement types are available for goods movement for material with RTP: When a receipt is not for a purchase order, choose Movement type Receipt W/o purchase order To RTP unrestr. (501 M)

When stock balances are entered for the first time, choose
Movement type Receipt Initial stock entry (ext) To RTP unrestricted (561 M) vendor and enter the items.

Maintain the data on the collective entry screen i.e., enter the Post the goods movement.

386

Posting RTP Quantities at Goods Receipt for Purchase Order A quantity of RTP can be entered at GR for a PO as follows: From the Inventory Management menu, choose Goods

movement Goods receipt For purchase order PO number known / PO number unknown. On the initial screen enter the movement type (usually 101) and the order number. From the overview screen, choose Edit W/o purchase order. A window appears in which you can enter the movement type and the special stock indicator (e.g. 501 M) for the quantity of RTP. Enter the RTP items and post the Goods Movement.

387

Returnable Transport Packaging (RTP) Stock

Stock Updates This goods movement results ,increase in the unrestricted-use

RTP stock from the vendor. The total valuated stock remains unchanged.

Displaying Returnable Transport Packaging Stock RTP stock can be viewed using the following functions: Stock overview Plant stock availability Both functions can be found in the Inventory Management
menu under Environment Stock stock overview

388

Sales Order Stock

Stock that is used for a sales order and materials can only

be produced or procured only when they are ordered by the customer and the finished product can only be delivered to the customer via the sales order. You can manage valuated or non-valuated sales order stock.

Sales order stock is not valuated, if it is managed via a cost

collector. The system does not carry out invoice verification postings for goods until the end of the settlement period in Controlling.

If sales order stock is valuated, you can access its value in

Financial Accounting. The assigned accounts are debited and 389 credited as a result of the valuated goods movements.

Entering Goods Movements

When you enter a goods movement for sales order stock, you
should consider the following:

When you enter a goods movement with reference to a

purchase order or a production order, the sales order number and item are copied from the reference document. When you enter other goods movements, you must specify the sales order umber and item. Goods movements for sales order stock are entered as follows

Enter the relevant movement type with the special stock


indicator E and the sales order number and item.
390

Transfer to own stock

On the initial screen, enter movement type 411 and the special stock indicator E. This movement allows you to change the material number. This is required if the material is not managed in valuated stock (for example, configurable materials).

Goods receipt for purchase order/for order:


Enter a goods receipt for a purchase order or for an order as usual using the movement type 101. If an item is assigned to a sales order (account assignment category E), the system automatically sets the special stock indicator at GR.

391

Project Stock

Quantity of Material which is kept in stock for the completion of a project. The project stock is allocated to a work breakdown structure (WBS) element and the items can only be withdrawn for the WBS element. You can manage valuated or nonvaluated project stock.

If the project stock is not valuated, it is managed via a cost collector. The system does not carry out invoice verification postings for goods movements, until the end of the settlement period in Controlling.

If the project stock is valuated, you have immediate access to its value in Financial Accounting. The assigned accounts are debited and credited as a result of the valuated goods movements. Project stock is available for the project from an MRP point of view. 392

Project Stock

Creating Valuated Project Stock


If you want to work with valuated project stock, in the Accounting view of the material master record you can define your own Valuation Classes and thereby create your own stock accounts under Project Stock valuation class. Display the valuated project stock. Choose Environment Stock Valuated special stock.

Entering Goods Movements

When you enter a goods movement with reference to a purchase order or production order, the WBS element is taken from the reference document. When you enter other goods movements, you must specify the 393 WBS element manually.

Project Stock

Goods movements for project stock are entered as follows:


Other goods receipts, goods issues, transfer postings: Enter the relevant movement type with the special stock indicator Q and the WBS element.

Transfer to own stock: Enter movement type 411 and the special stock indicator Q. Goods receipt for purchase order/for order:

Enter a goods receipt for a purchase order or for an order as normal using the movement type 101. If an item is assigned to a project (account assignment category Q), the system automatically 394 sets the special stock indicator at GR.

Demo_ Create consignment Info-record


Menu Path T.Code Materials management Purchasing Master data Info-record create ME11

Select Info-Record Category as Consignment

395

Demo_ Procuring consignment Material


Menu Path
T.Code

Materials management Purchasing Purchase Order Create Vendor/Supply Plant Known


ME21N

Select Item Category K For Consignment stock Procurement

Net Price Must be Zero

396

Demo_ Goods Receipt for consignment Material


Menu Path Materials management Inventory Management Goods movement Goods Receipt GR for purchase Order
MIGO
Select Mov.type 101 and Special stock indictor K

T.Code

397

Demo_ Create Returnable Transport Packaging Material (RTP)


Menu Path T.Code Materials management Material Master Create General Immediate MM01
Select Material type as Returnable package

398

Demo_ Create Pipe line material Menu Path T.Code Materials management Material Master Create General Immediate MM01

Select Material type Pipe line Material

399

Demo_ Create purchase requisition for Third party


Menu Path T.Code Materials management Purchasing Purchase requisition Create ME51N
Here we need to Enter Customer Address to whom the material is to be Supplied

Select item Category S

400

Demo_ Create purchase Order for Third party


Menu Path T.Code Materials management Purchasing Purchase Order Create ME21N

Select item Category S

Here we need to Enter Customer Address to whom the material is to be Supplied

401

Agenda

Inventory Management Customization Duration (Hours) Objective Pre-requisites Course content

This Part shows the customization of Inventory Management

8
To get familiar with Customization part of Inventory Management

Inventory Management
Customization
402

Inventory Management Customization

Objecti Inventory Management Customization ve

403

Inventory Management Customization

Objecti Define Plant Parameters ve

404

Inventory Management Customization

Objec Define Attributes of System Messages tive

405

Number assignments

Objec Define Number Assignments For Goods tive Receipt/Issue Slips

406

Field Selection for Goods Movements Initial /Header Screens

Objec Field Selection for Goods Movements Initial tive /Header Screens

407

Field Selection For MIGO

Objec Field Selection For MIGO tive

408

Field Selection Per Movement Type

Object Field Selection Per Movement Type ive

409

Create Storage Location Automatically

Object Create Storage Location Automatically ive

410

Define Screen Layout

Objecti Define Screen Layout ve

411

Allow Negative Stocks

Objec Allow Negative Stocks tive

412

Set Tolerance Limits

Objec Set Tolerance Limits tive

413

Create Purchase Order Automatically

Objec Create Purchase Order Automatically tive

414

Set Delivery Completed Indicator

Object Set Delivery Completed Indicator ive

415

Set Missing Parts Check

Object Set Missing Parts Check ive

416

Record Reason For Goods Movements

Objecti Record Reason For Goods Movements ve

417

Copy, Change Movement Types

Objecti Copy, Change Movement Types ve

418

Change Movement Types

Objectiv Change Movement Types e

419

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

420

Agenda

Invoice The main task of the Invoice verificatio Verification component is to n complete the procedure of materials procurement by posting the vendor invoice and to pass on information concerning the invoice to Financial Accounting and subsequent applications. Duration 1 (Hours) Objective To get familiar with Invoice 421 Note Fields in red boxes are mandatory fields. verification

Concept

Your Company receives a large number of invoices from the vendor


everyday. The data on the invoice is based on the Purchase order.

You want to review the data on the invoice sent by the vendor.

422

Exchange rate differences

Exchange rate Purchase order is entered in foreign differences currency, the amounts are translated from foreign currency into local currency at goods receipt. If you enter the invoice for the purchase order in the foreign currency, this can lead to currency translation differences between the goods receipt and the invoice receipt. Duration 1 (Hours) Note Fields in redTo boxes mandatory Objective get are familiar with fields. Exchange rate 423

Introduction

What are Exchange rate differences ?

Are you following Fixed exchange rate or Current Exchange rate ?


How does your company post these exchange rate differences ?

424

Concept

Purchase order is entered in foreign currency, the amounts are

translated from foreign currency into local currency at goods receipt. If you enter the invoice for the purchase order in the foreign currency, this can lead to currency translation differences between the goods receipt and the invoice receipt. These differences are called as Exchange rate differences.

According to business policy We can use :


fixed exchange rate current exchange rate

425

Concept

If the exchange rate is fixed in the Purchase Order, the R/3 system
uses this exchange rate to convert the foreign currency to local currency at goods receipt and at invoice receipt.

If the Exchange rate is not fixed in the Purchase order, the R/3

system uses the current exchange rate to convert the foreign currency to local currency goods receipt. In Invoice verification , it also suggests the current exchange rate.

The exchange rate differences are same as the Price differences.

The way that R/3 system posts exchange rate differences depends on the settings in the customizing for invoice verification.

426

Demo1_Fixed Exchange Rate

Object To fix Exchange rate at Purchase order ive

427

Demo1_Fixed Exchange Rate

Object To make a Goods receipt for fixed exchange ive rate PO

428

Demo1_Fixed exchange rate

Object Logistics invoice verification ive

429

Demo1_Fixed exchange rate

Object Purchase order history ive

No differences exist between GR and LIV

430

Demo2_Current Exchange Rate

Object To Create a Purchase Order without fixed ive Exchange Rate

431

Demo2_Current exchange rate

Objecti Goods receipt for PO ve

432

Demo2_Current exchange rate

Object Logistics invoice verification ive

433

Demo2_Current exchange rate

Object Purchase order history ive

We observe difference between the GR and IR

434

Demo3_Customizing setting for Exchange rate differences

Object Customizing for How the exchange rate ive differences are treated

435

Demo3_Customizing setting for Exchange rate differences

Object Customizing for current exchange rate ive

436

Information on a Invoice

Invoicing Party
Addressee Reference Purchase order Price per unit Material Details Invoice amount

Unit of measure Terms of payment

437

MM overview of Invoice Verification

Material Planning
Internal Procurement External Procurement

Stock transfer Goods receipt along with invoice Invoice Verification MM Invoicing doc & FI invoicing doc

Vendor

438

MM overview of Invoice Verification


Invoice receipts
Invoices can be posted in the R/3 System in several different ways. The company receives invoices by post, then an employee enters and posts them. The company receives invoices via electronic transfer and the R/3 System posts them automatically (if the information transferred matches that expected by the R/3 System). The R/3 System creates invoices using settlement programs that run at regular intervals (evaluated receipt settlement, invoicing plan, consignment settlement). 439

MM overview of Invoice Verification

Account Movements
In the case of material with a moving average price, the R/3 System posts the stock account with the value of the net order price multiplied by the quantity of goods received.

In the case of material with a standard price, the R/3 System posts the stock account with the value of the standard price multiplied by the quantity of goods received. The R/3 System posts the difference to an account for expenses or revenue from price differences.
440

Basic Invoice verification procedure

Purchase order based Invoice verification

Good receipt based Invoice verification

441

Basic Invoice verification procedure P. O based invoice verification


Delivery 1- 50pcs Delivery Note No:GR1 Purchase order Material XXX Qty-100pcs

Delivery 2- 25pcs Delivery Note No:GR2


Delivery 3- 25pcs Delivery Note No:GR3

Item list Po: XXX 100pcs

Selection via PO

Invoice for PO: XXX Qty:25

442

Basic Invoice verification procedure G.R based invoice verification


Delivery 1- 50pcs Delivery Note No:GR1 Purchase order Material XXX Qty-100pcs Delivery 2- 25pcs Delivery Note No:GR2 Delivery 3- 25pcs Delivery Note No:GR3

Item list Po: XXX 25pcs

Selection via Delivery Note

Invoice for PO: XXX Qty:25

443

Other Functions in Invoice verification


Simulating the posting Hold Documents Search for allocation Error Log

Environment Information

Note last setting

Communicatio n with vendor


444

Demo1_Invoice Verification

Objecti Purchase order based Invoice Verification ve

445

Demo1_Invoice Verification

Objecti Purchase order base Invoice Verification ve

446

Demo1_Invoice Verification

Objecti Purchase order based Invoice Verification ve

447

Demo1_Invoice Verification

Objecti Purchase order based Invoice Verification ve


Simulate

448

Demo1_Invoice Verification

Objecti Purchase order based Invoice Verification ve

Post

449

Demo1_Invoice Verification

Objecti Purchase order base Invoice Verification ve


Save

Document Gets created

450

Agenda

Delivery Costs

To Understand about the Delivery cost PrePurchase Order, Note Fields in red boxes are mandatory fields. Goods Receipt requisites 451

Duration (Hours) Objective

Delivery costs are costs that are invoiced for a delivery over and above the value of the delivery itself

Introduction

Define Delivery Cost What are the types of Delivery Cost

452

Concept

Delivery costs are costs that are invoiced for a delivery over and

above the value of the delivery itself. This includes freight charges, customs duty, or other costs.

453

Types Of Delivery Costs

There are two types of Delivery costs Planned Delivery cost Un planned delivery cost

454

Demo1_ Enter Incoming Invoice

Objec Posting of Planned Delivery Cost tive

455

Demo2_ Enter Incoming Invoice

Objec Posting of Unplanned Delivery Cost tive

456

Agenda

Invoice block

Duration (Hours) Objective To know about Invoice Block PrePurchase Order requisites Note Fields in red boxes are mandatory fields. 457 Course Introduction

Invoice block means Financial Accounting cannot pay the invoice. 1

Introduction

What do you mean by Invoice Block


What are the reasons for Payment Block

458

Concept

Invoice block means Financial Accounting cannot pay the invoice.


Invoice blocking can be done either automatically or manually.

459

Reasons for Invoice Block

Variance in an Invoice Item Amount of an invoice item Stochastic Block Manual Block

460

Demo1_Customizing Settings

Objec To Create Reasons for Blocking Payment tive

461

Demo1_Customizing Settings

Objec To Set a Tolerance Limit tive

462

Demo1_Customizing Settings

Objec Activate Block Due To Item Amount tive

463

Demo1_Customizing Settings

Objec To Create Stochastic Block Values tive

464

Demo2_Enter incoming Invoice

Objec Entering incoming Invoice tive

465

Demo3_Releasing the Blocked Invoice

Objec Releasing The Blocked Invoice tive

466

Agenda

Invoice verificati on in Backgro und

The system checks the invoice with hundreds of line items the system should compare total invoice amount to the expected value from the purchase order using background processing.

Duration 1 (Hours) Objectiv To get familiar with Invoice verification 467 e in background

Concept

For invoices with hundreds of line items the system should compare total
invoice amount to the expected value from the purchase order using background processing.

The system checks the invoice in the background. If no errors occur, the
system also posts the invoice in the background. If errors do occur, the system saves the invoice and you then have to process it in a separate step.

468

Concept

The Invoice document which is saved does not contain any line items,
hence no item check is required.

The settlement program which is regularly started in the background

creates the item for this invoice document based on quantities and values to be invoiced. The system check if the total of the items and the amounts already set (gross invoice amount, tax amount, unplanned delivery costs) results in a zero balance.

469

Important data

Document header data :


Document date Posting date Gross invoice amount Tax information.

Program name:
Invoice Verification in the background is run using program RMBABG00.

470

Customizing Settings (For status)

Objectiv To set the indicator for invoice status. e

471

Demo2_Create invoice document in background

Objectiv To create a invoice document entry in e background

472

Agenda

Evaluated Receipt Settlement

Evaluated Receipt Settlement allows you to settle or pay for the goods receipt without entering or processing of an Invoice.

Duration Objective
Pre-requisites

Course content

1 hr To get to know the process of Evaluated Receipt Settlement Knowledge about Material Master, Vendor Master, Info Record, Purchase Order & Goods Receipt Concept Evaluated Receipt Settlement Process Benefits of Evaluated Receipt Settlement Demo1_Evaluated Receipt Settlement 473

Concept

Evaluated Receipt Settlement (ERS) allows you to settle or pay for


good receipts without entering or processing an invoice.

This eliminates the need to handle and process invoices received


from vendors.

The use of ERS is a continuing drive of the business industry. Its


success is predicated on accurate pricing and receiving.

While no invoice is received (either manually or via EDI) SAP

creates an internal invoice during execution of the ERS program.

474

Process

Based on the order price specified in the purchase order and the

quantity entered on the goods receipt, SAP determines the correct invoice amount and obtains tax information and terms of payment from the purchase order..

This information allows the system to settle without having to


process a vendor invoice.

475

Benefits

No GR/IR entries to clear.


No Blocked invoices to clear.

No invoices to process, benefiting you and your vendor.

476

Demo 1_Evaluated Receipt Settlement


PROCESS FLOW

Customization Settings for Vendor Master

Creation of Info Record

Creating a Purchase Order

Posting the Goods Receipt

Evaluated Receipt Settlement

Click on the text mentioned inside the Box to go to the respective slides.

477

Demo 1_Evaluated Receipt Settlement


Objective Make settings in the Vendor Master to enable Evaluated Receipt Settlement.

Mandatory Fields

478

Demo 1_Evaluated Receipt Settlement


Objectiv Make settings in the Info Record to enable Evaluated Receipt Settlement. e

Mandatory Field

479

Demo 1_Evaluated Receipt Settlement


Object Make settings in the Purchase Order to enable Evaluated Receipt Settlement. ive

Mandatory Fields

480

Demo 1_Evaluated Receipt Settlement


Objec tiv e To receive the goods that we have purchased from the Vendor.

Mandatory Fields

481

Demo 1_Evaluated Receipt Settlement


Objec tiv e To settle the account of the vendor without generating the invoice

Execute (F8)

482

Demo 1_Evaluated Receipt Settlement


Object ive This screen shows the list of ERS purchase orders to be executed

Note the Purchase Order & Vendor

483

Period closing and opening

Period closing and opening

Duration (Hours) Objective Pre-requisites

This function sets the new period, making it possible to perform goods movements with reference to the new period. Once the period has been closed, it is no longer possible to make postings to what was the previous period 1 To get to know about the period closing and opening 484 Material master

Introduction

What is meant by period closing and opening ? How it is related to Financial accounting and Materials management
?

485

Concept

Open and Close period for material postings. Once the

system is in productive operation, you normally run the period closing program once a month at the beginning of a new period. This program sets the new period, making it possible to perform goods movements with reference to the new period. Once the period has been closed, it is no longer possible to make postings to what was the previous period

486

Demo 1_Period closing

Objectiv Period closing in material mater record e

487

Demo 2_Period opening

Objectiv Period Opening in material mater record e

488

Logistic Invoice Verification Duration

Agenda

Verification of in coming invoices in the R/3 system before posting to finance

2 (Hours)

Objective
Prerequisites

To get familiar with LIV


To be well familiar with the earlier purchase master data, vendor master. Purchase order and Goods receipt
489

Concept

Logistic invoice verification


LIV is a part of MM. In LIV, incoming Invoices are verified in terms of their content , price & arithmetic . When Invoice is posted , the invoice data is saved in the system . System updates data in MM & FI LIV completes Material procurement process which started with PR . LIV allows to post Invoices that dont originate from MM . EX : Services , Expenses , Training cost etc It allows credit memos to be processed.

490

Concept

Incoming Invoice
Invoice contains various information such as Who issued Invoice Which transaction does the Invoice refer to How much tax do you have to pay You will allocate the Invoice to a business transaction , if such reference exist , the system uses knowledge that it already has & proposes the appropriate values during Invoice verification. For Example: 491 Terms of Payment

Concept

Invoice can be processed in LIV in following ways


Invoice Verification Online Parking Invoice verification in Background Automatic Settlements like: ERS Consignment & pipe line Settlements Revaluation Invoicing Plans EDI Invoices

492

Important Data for LIV

Maintain Number Assignments for Accounting Documents


In this step, you: Define the document types Assign each document type to a number range Assign document types to the Logistics Invoice Verification transactions Standard settings In the standard system, two document types are defined for Logistics Invoice Verification: RE for gross posting RN for net posting

493

Important Data for LIV

Tax Treatment in Invoice Reduction


Here, you can configure how taxes are to be posted for invoice reduction. The system creates two accounting documents for invoice reduction. The first document (original document) contains the invoice data sent by the vendor. The second document (complaint document) contains information about the invoice reduction. If the tax reduction is carried out in the complaint document, the taxes in the original document correspond to those in the vendor invoice. The tax amount for the invoice reduction is credited in the complaint document. If the tax reduction is carried out in the original document, the taxes in the original document are reduced by the tax amount for the invoice reduction. In this case, the complaint document494

Objective

Demo1_Customizing LIV

To create document types for invoice verification

495

Demo1_Customizing LIV
Objective To assign number ranges for the document types

496

Demo1_Customizing LIV
Objective To assign number ranges for the document types

Select Document type from list RE - Goss posting RN - Net Posting

497

Demo1_Customizing LIV
Objective To assign Doc types to T Code

Assign required Doc type To Relevant T,code

498

Demo1_Customizing LIV

Object To assign No. range to Transaction ive

499

Demo1_Customizing LIV

Objective To Set Tax reduction doc to company code

Here we can set Tax reduction doc as a original or Complaint Document

500

Demo1_Customizing LIV

Object To Set Default Tax code to company code ive


Select the required Company code and Click on Detail button

501

Demo1_Customizing LIV

Object To Set Default Tax code to company code ive


Select required Tax code From the list

502

Demo1_Customizing LIV

Objective To mail purchasing when price variance occurs.


Select the indicator For activate mail to Purchasing with respect To company code

503

Demo1_Customizing LIV

Objec To configure vendor specific tolerances. tive

504

Demo1_Customizing LIV

Objec To configure vendor specific tolerances. tive

505

Demo1_Customizing LIV

Objec To activate direct posting to G/L account and tive material account

Select both indicator For activate G/L and Material account

506

Demo1_Customizing LIV

Objec To Set Check for Duplicate Invoice tive

507

Demo2_ Creating Invoice Entry

Objec To create an invoice entry tive

508

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

509

Agenda

Name

Valuation and Automatic Account Assignment Duration 8 hrs Objective To update the knowledge of the audience with the concepts of Material valuation, configuration settings and concepts of Split Valuation & Account Determination. Prerequisite Material Master Vendor Master Purchase Order Goods receipt 510

Material Valuation Material Valuation is a part of MM module. This includes the following application areas: Purchasing Inventory Management Logistics Invoice Verification Material Valuation determines & records the stock value of a material. [ Stock value=stock qty*material price ]

Material valuation is not an independent application area, since most

valuation functions take place automatically in the SAP system. Material Valuation represents an integration between MM & FI modules since it updates the G/L accounts in Financial accounting. Material Valuation serves the following purposes: Adjusting material prices to market price. 511 Perform revaluations

Material Valuation
Control of material valuation is done basically by 2 factors: System settings At which levels are materials valuated. Which types of goods movements affect material valuation. Which G/L accounts must be posted with the material value during a transaction.

Material master record

As a rule every material in the SAP organization should have a Material Master. This master record also controls the valuation data of the material (Accounting view in the material master)

When maintaining Material master you must decide the following: a) Whether the material is to be valuated at all. b) Whether different sub stocks of a material should be valuated differently. c) Whether the stock of a material should be valuated at a constant price (standard price) or delivered price (Moving average price). 512

Material Valuation

Data on a material is valuated using the following structures: Valuation area Valuation category Valuation class Valuation type Material type Movement type The following control features are important for valuation. Does the material movement cause the quantity to be updated. Does the material movement cause the value to be updated. Does the material movement lead to posting in Financial accounting. Is the material movement relevant for LIFO/FIFO valuation 513

Split Valuation

Split valuation enables you to valuate stocks of a material in different ways


For example, according to external procurement or in-house production or by batches, or a material bought from two countries.

514

Split Valuation

Split Valuation Type of procurement Country of origin Quality status

Ext. procurement (H1)

In house mfg (H2)

New (Q1)

Used (Q2)

Reworked/Repaired (Q3)

India (C1)

Germany (C2)
515

Split Valuation The Valuation Area is the level at which materials are valuated, this corresponds either to a certain plant or to all plants belonging to company code. If you have set the valuation level at company code level, G/L accounts can also be assigned according to plant.

Valuation Category is the criteria on which material is Split valuated. Valuation Type describes the characteristics of a Valuation Category.

516

Split Valuation

Objec To configure split valuation tive

517

Split Valuation

Objec To define global categories tive

518

Split Valuation

Objec To define global categories tive

519

Split Valuation

Objec To define global categories tive

520

Split Valuation

Objec To define valuation types tive

521

Split Valuation

Objec To define valuation types tive

522

Split Valuation

Objec To define local categories tive

523

Split Valuation

Objec To create a material master with split valuation tive

524

Split Valuation

Objec To create a material master with split valuation tive

525

Account Determination

When entering the goods movement, the user does not have to enter a

G/L account, since the SAP System automatically finds the G/L accounts to be posted. This is called as automatic account assignment.

This is done based on the following data


Chart of accounts for the company code Valuation grouping code for the valuation area Transaction key Account grouping Valuation class

526

Account Determination

Objec To define a valuation grouping code tive

527

Account Determination

Objec To define account category reference and tive valuation class

528

Account Determination

Value string: It is an internal procurement key which facilitates automatic account determination.
Transaction event key: Internal processing key facilitating automatic account determination for the various material and invoice postings. Posting rule determines how the system has to capture the G/L account. There are 4 posting rules 1) Debit/Credit 2) General Modification 3) Valuation Modification 4) Valuation Class
529

Account Determination Account modifiers are general modification and has been defined in the SAP R/3 system for the following transaction or event keys:

GBB-offsetting entry for inventory postings PRD-cost (price differences) KON-consignment/pipeline liability
In MM in the standard system, a/c grouping is only active for the transaction key GBB. We can change the account grouping for transactions in IM, depending on the movement type and other indicators ( ex: special stock indicators). The account grouping cannot be changed for transactions in LIV.
530

Account Determination

Objec To define Automatic Account postings tive

531

Account Determination
Inventory Management Transaction Posting string for values PRD Invoice Verification

BSX

Transaction

300000

G/L account Number

281000

532

Account Determination

The posting transactions for the transactions in Inventory Management & Invoice Verification that are relevant for accounting are fixed. Posting records are assigned to each relevant movement type in IM and to each transaction in LIV. These posting records are generalized in a value string (posting rule). Instead of fixed G/L account numbers, this contains keys for the respective posting transaction (such as BSX for a stock posting and PRD for a price difference posting).
You do not need to define these transaction keys, the R/3 system determines them from the transaction (in LIV) or from the movement type (in IM). We only 533 need to

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

534

Batch Management

To familiarise Batch Management technique pertaining to Materials Management Pre-requisites Master data, Purchasing, Note Fields in red boxes are mandatory fields. Inventory Management

Batch Management Duration (hours) Objective

Batch Management in MM
1

535

Purpose

Need for Batch Management

In various industries, particularly the process industry, you have to


work with homogenous partial quantities of a material or product throughout the logistics quantity and value chain.

536

Batch Management

Application of Batches in SAP areas

537

Batch Management

Batch Number Assignment


This function is used to assign a unique key to a batch. The batch number uniquely identifies a batch in the SAP System. The batch level you choose determines the area in which the batch number is unique.

538

Batch Management

Batch Specification
This function is used to describe each batch uniquely using characteristics and characteristic values. You specify the permitted value range in the allocated material master record.

Batch status management


This function is used to indicate whether a batch is usable or unusable. You set this status: Manually in the batch master record or at GR Automatically in the usage decision in quality management The basic setting required is that Batch management box should be checked in Material master.

539

Batch Management

Deleting a Batch Master Record Flag a batch master record for deletion so that the archiving and deletion program can delete it. To do so, call the batch master record in change mode. You can set a deletion flag at plant level or at storage location level, but only if a deletion flag has not already been set at a higher level. The batch master record is then deleted at that level and at all lower levels.

540

Batch Management

Batch Classification

All classes used for batch classification are assigned to class 022/023. They are required for batch determination. The material and its batches are related by classes. This is to ensure that the same characteristic is used for the material and batch. Characteristics are identified uniquely by the value or range of values. Batch Specifications An Example Example of Paint production illustrates how batch specifications are used. Characteristics of Material A Target Value Viscosity 41 - 50 Ph value 3.1 6.0 Hydrolizable chloric content 23 25 Epoxy count 23 - 25 Volatile proportion 0.0 0.5
541

Batch Management

Batch Classification

You define these specifications as characteristics and assign them to a class. You then assign this class to a material master record (in classification view). When you maintain the material master record, you can thus specify the target values or range of values of the specifications. In the classification system, you define class for this material called Paint. Under the characteristics, you set up: Viscosity 41 - 50 Ph value 3.1 6.0 and so on. When the batch is produced, the specifications are checked in the laboratory and fixed values for each batch are determined. If these values lie within the specified range, the batch is acceptable. The validity of the specifications you enter is immediately checked. This is possible in the system as the material and the batches belong to the same class. In our example, the actual values attained for the specifications for batch A124495 are as follows:
542

Batch Management

Batch Classification
Characteristics of Batch A124495 Viscosity Ph value Hydrolizable chloric content Epoxy count Volatile proportion Actual Value: 42 3.5 24 23.5 0.10

Since all the values are within the range specified in the characteristic, the batch A124495 is accepted. If you have entered an interval value for a numeric characteristic in the material master record, you will be able to assign either the whole interval (for example, viscosity between 41 - 50 in the above example) a restricted interval (viscosity between 42 44 in the above example) 543 a certain value within this interval to the material (viscosity of 43.5

Batch Management

Batch Management in Inventory Management


Batch determination Batch Where-Used List Active Ingredient Management Entering a batch

544

Batch Management

Two types of master data exist for every batch in the warehouse,
namely: General data for the batch at plant level, material level, or client level (batch master record) Stock data for the batch at storage location level

545

Batch Management

Stock types
The following stock types are managed at batch level: Unrestricted-use stock Quality inspection stock Blocked stock Restricted-use stock (only with batch status management) Stock in transfer (for stock transfers between storage locations) Blocked stock returns All other stock types for the material are managed on a cumulative basis at storage-location or plant level.

546

Batch Status Management

Batch status management can be activated in the Customizing system. The system differentiates between two different statuses: A batch can either have the status unrestricted use or the status restricted use. The status is stored centrally as part of the batch and is used as a batch characteristic in classification, which, in turn, is responsible for batch selection in batch determination.

547

Shelf life expiration date in Batch Management

If the shelf life check expiration date check is active, you must enter the

shelf life expiration date or the production date of the material at the time of a goods receipt. At the time of goods receipt, the system checks whether the remaining shelf life is sufficient. If this is not the case, a warning or error message is issued, depending on the system settings. When the goods receipt is posted, the shelf life expiration date is recorded in the material document. Materials handled in batches: For materials handled in batches, the date is also stored in the batch master record. For a further goods receipt for a batch, the shelf life expiration date entered or determined with the movement is compared with the one from the batch master record. If the dates differ, a warning or error message is issued, depending on the system settings. If the goods receipt is posted despite any warning, the old shelf life 548

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

549

Physical Inventory

Physical Inventory This component is used to carry out a physical inventory of your companys warehouse stocks for balance sheet purposes. Different methods / procedures can be used for doing this. Duration (hours) 8 Objective To get familiar with Physical Inventory component Pre-requisites N. A Introduction Course Content
Demo1_ Create Physical Inventory Document 550

Introduction

Physical Inventory In SAP R/3, physical inventory can be carried out both for a

companys own stock and for special stock. Inventory for a companys stock and for special stocks (such as consignment stock at customer, external consignment stock from vendor, or returnable packaging) must be taken separately i.e., in different physical inventory documents. The stock in a warehouse can be divided into stock types. In the standard system, a physical inventory can be carried out for the following stock types: Unrestricted-use stock in the warehouse Quality inspection stock Blocked stock
551

Introduction

Physical Inventory Process Diagram


Physical Inventory Preparation
Create physical inventory doc.1 Print physical inventory doc. 2

Stock Count Overview

Batch input

Arrange for recount 6a Enter physical inventory count 5 Print list of differences 6
4

Carry out physical inventory count 3


Enter Result in Printout

Physical Inventory Count

Post differences

552 Physical Inventory Analysis

Demo1_Create Physical Inventory Document

Objecti Create a physical inventory document (MI01) ve

553

Print Physical Inventory Document the Print Physical inventory document by using MI21 & Distribute it to
the persons responsible for doing counting

Phy.Inv.Doc

554

Physical Inventory Count

Enter the count by using MI04 During the inventory count, all the materials being inventoried are

counted and entered physically. The stocks are counted for individually for the materials in a physical inventory document. The count results are written on the printout of the physical inventory document. The printout is then directed back to the person responsible, so that he or she can enter the count into the system and analyze it.

555

Demo2_ Enter Inventory Count

Objecti Enter Inventory Count (MI04) ve

556

Recounting

To initiate a recount, proceed as follows: Go to MI11, On the initial screen, enter the physical inventory document for which you want to initiate a recount. By specifying a threshold value, you can limit the number of items in the recount. Select the items for which you want a recount A new physical inventory document is created that contains the selected items. The system confirms the posting and displays the number of the physical inventory document

557

Posting Inventory Differences

The various options for posting inventory differences are:

Posting differences after the count has been posted


A physical inventory document has already been created, and the count has already been posted. You only have to post the inventory differences (MI07). Posting the count and inventory differences simultaneously after the physical inventory document has been created A physical inventory document has been created, but the count has not yet been posted. The count results are available. You enter the count and post the differences in one step (MI08). Entering the count without a document reference You have a count result without reference; that is, no physical inventory document has yet been created for this physical inventory transaction. You create a physical inventory document, enter the 558 count, and post the differences in one step (MI10).

Demo3_ Posting Difference

Objecti To Post Differences ve

559

Account Activity During Posting of Inventory Differences

The account activity during posting of the inventory differences


depends on which stock was inventoried:

Company's own stock


When you post inventory differences, the material master record is changed; total stock is automatically adjusted to the counted quantity. From the accounting point of view, this corresponds to a goods receipt or goods issue, meaning that when the inventory difference is posted, the stock account is debited or credited. Inventory Differences in Consignment Stock When you post inventory differences, the material master record is changed, the vendor consignment stock is automatically adjusted to the counted quantity. Since this stock type is not 560 managed by value, from the accounting point of view, there is no

Account Activity During Posting of Inventory Differences

Counted Stock Smaller than Book Inventory Balance


If the counted consignment stock is smaller than the book inventory balance, the system assumes that the difference was withdrawn from consignment stock and did not "disappear" until afterwards. The inventory difference is posted as a withdrawal and the withdrawal has to be paid to the vendor. When you post inventory differences, thats why the same account movements take place as those that take place when you carry out a transfer posting from consignment stock to your companys own stock, with the exception that the amount that was posted to the stock account is posted to the "Expenditure from inventory differences" account.

561

Account Activity During Posting of Inventory Differences


Counted Stock Greater than Book Inventory Balance If the counted consignment stock is greater than the book inventory balance, the system assumes that larger withdrawals were posted from consignment stores than actually occurred. Thus, the inventory difference is posted as a withdrawal reversal. Since withdrawals are posted to the "Payables from consignment stores" account, postings must be made to this account when the inventory difference is posted
Movement Type Description Account Postings Stock Material Stock Take Clearing Debit Credit Debit Credit X X X X -

701/703/707 GR Physical Inventory: UR, QI, Blk (Gain) 702/704/708 GI Physical Inventory: UR, QI, Blk (Loss)

562

Reports on Physical Inventory

The following functions in the physical inventory menu provide


information on the physical inventory: Displaying the physical inventory documents for a material Displaying Displaying Displaying Displaying Displaying the physical inventory data for a material MI23 the physical inventory overview MIDO the physical inventory list MI24 the list of physical inventory differences MI20 changes to physical inventory documents MI12

MI21

563

Physical Inventory Procedures

Periodic

Continuous

Phy. Inventory Procedures

Sampling

Cycle Counting

564

Physical Inventory Procedures

Periodic Inventory All stocks of the company are physically counted on the
balance sheet key date. Every material must be counted. The entire warehouse must be blocked for material Movements.

565

Physical Inventory Procedures

Continuous Inventory
In the continuous inventory procedure, stocks are counted continuously during the entire fiscal year. In this case, it is important to ensure that every material is counted once at least once during the fiscal year.

566

Physical Inventory Procedures

Cycle Counting Procedure


Create physical inventory documents - MICN Enter the data required Carry out the evaluation Generate session to create batch input session process the session Carry out the phy inv for the docs created

567

Physical Inventory Procedures

Inventory Sampling
Inventory Sampling reduces the time and cost of a physical inventory considerably by counting only the stock of individual materials and carrying out an extrapolation to arrive at an estimated count result for all units of stock managed. There are two methods of carrying out an inventory sampling: Periodic inventory sampling In this procedure, the count is carried out on a key date. During the physical inventory, movements in the warehouse as well as changes to the book inventory balances are not allowed. Continuous inventory sampling In this procedure, stock is counted over an extended period of time. In this case, inventory sampling data is updated from time to time to correspond to the latest book inventory balances. Changes 568 to the book inventory balances are thus reflected in the calculations

Physical Inventory Procedures

Inventory Sampling -Preparation Phase 1. Creating an inventory sampling In this step you have to define several basic parameters, such as: Which currency is to be used for the inventory sampling The area in which the inventory sampling is to be carried out The deviations up to which an inventory sampling is still considered successful 2. Allocating the stock management levels In step 2, we allocate certain quantities of stock management units / levels, to the inventory sampling that is to be included.
569

Physical Inventory Procedures

Inventory Sampling -Preparation Phase 3.Forming the stock population The stock population is the total of all stock management units of an inventory sampling. While forming the stock population Breakdown of the stock population and Classification are carried out automatically. 4. Generating a stratification To reduce the number of stock management units to be counted to a minimum, the sampling area is divided into individual strata. The stratification is generated using classification. The value dispersion in a stratum is considerably smaller than in the entire sampling area. With a small value dispersion, only relatively few 570 elements must be selected to obtain a representative result. This

Physical Inventory Procedures

Inventory Sampling Active Phase 1.Generating the random selection In the process of random selection, the system determines the stock management units to be counted for each stratum. 2.Creating physical inventory documents Phy inventory documents must be created for the stock management units to be counted. These documents are required for all stock management units drawn during random selection and that were allocated to the complete-count area when the stock population was formed.

3.Update

571

Physical Inventory Procedures

Inventory Sampling Active Phase 4. Extrapolation During the extrapolation process, the system estimates the physical inventory value of the sampling area on the basis of the latest counting results. An average physical inventory value per item is calculated in every stratum and multiplied by the number of items in each stratum. The total of the stratum values determined in this way gives the estimate for the sampling area

572

Summary of Physical Inventory


SAP Functionality
Stock materials Special stock

SAP
Stock Count

Stage 1 Create and Print Physical Inventory Document Stage 2 Conduct Physical Count Input Count Results on document printout Stage 3 Enter Count Results in SAP Display Difference List Conduct and Enter Recount Post Inventory Differences
Accounting Document
Co. Co. xyz

Physical Inventory 1 Document


2

MI07 701/702
MI07 703/704

Gain or Loss on UR Stock Gain or Loss on QI Stock


573

Material Document

Co. Co.

xyz

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

574

Consumption-Based planning

ConsumptionBased planning Duration (Hours) Objective Pre-requisites Course content

Consumption based planning is based on past consumption ,it calculates the future requirements. 1 To get familiar with RFQ/Quotation

Material Master,
Introduction Concept MRP procedures MRP and CBP CBP- Reorder point planning Lot sizing

575

Introduction

What is Consumption-Based planning? Distinguish Consumption-Based planning from Material requirements


planning?

What are the various procedures in Consumption-Based planning?

576

Concept

In a manufacturing company, particular materials, such as office

Material or Low-value materials that are needed in production (Screws, washers, Markersetc), are planned in consumption basis. This is called as consumption based planning.

Consumption-Based planning is mostly used in order to plan B and C


materials and Operating supplies.

Material requirements planning is based on current and future


requirements.

MRP is epically useful for planning Finished products and important


assembly groups and Components (A materials).

In MRP requirement elements are the sales orders, planned

577

MRP procedures

MRP procedures:
MRP procedures Consumptionbased planning MRP

Reorder point planning

Forecast-based planning

Time-phased planning

Manual Reorder point

Automatic reorder point

578

MRP and CBP

Materials planning can be executed at plant level or below


the plant level of individual MRP areas.

In order to carry out material requirements planning for a

plant. You have to activate MRP at respective plant You have to maintain MRP parameters at this plant. You have to maintain the MRP data of the Materials in Material Master record

579

MRP and CBP

MRP type is the key that control the MRP procedure to be

used for planning the material. Further data in material master record controls the lot-size calculation or scheduling calculation.

MRP type controls which planning parameters must or can


be entered when maintaining the material master record.

MRP profile is the key in which you can store MRP

parameters that do not dependent on material master record.

580

CBP- Reorder point planning


Re-Order Point Planning

Lot size Stock

Reorder Point

Safety Stock

Release date

Available date Replenishme nt lead time

Time

581

CBP- Reorder point planning

The reordered point planning is the comparison of the available

warehouse stock and the fixed receipts with reorder point. If the available warehouse stock is less than the reorder point, then the net requirements calculation is triggered.

The reorder point is composed of the expected average material


requirements during the replenishment lead time and the safety stock.

The safety stock must cover both the unplanned material excess
consumption during the replenishment lead time, as well as additional requirements caused by the delayed deliveries.

582

Lot sizing

Lot sizing procedure: The system calculates the receipt of quantity


in lot sizes. There are 3 lot sizing procedures are there, 1. static procedure 2.perodic procedure 3. Optimum procedure.

You specify how the system is to determine the lot sizes, by

selecting one of the lot sizing procedures in material master record.

583

Planning run

Planning run: In planning run system carries the following process,


1. The system checks the planning file entries 2. The system carries out a net requirements calculation for every material 3. the system carries out the lot-sizing calculation 4. The system carries out scheduling to calculate the start and finish dates of the procurement proposals 5. The system determines the type of procurement proposals. Depending on the settings, the system creates either planned orders, purchase requisitions or schedule lines for a material Planning run types:
584

Planning run

To execute the planning run The following functions are provided


Total planning Single-item, single-level planning Multi-level single-item planning Interactive planning Multi-level, make-to-order production Individual project planning

585

Planning result and evaluation

Planning result and Evaluation:

The following evaluations are available for evaluating the planning


results in consumption-based planning: MRP list Current stock/requirements list

586

Demo1_ CBP and MRP data in Material master record

Object To maintain the data in MRP1 view of material ive mater record

587

Demo1_ CBP and MRP data in Material master record

Object To maintain the data in MRP2 view of material ive mater record

588

Demo1_ CBP and MRP data in Material master record

Object To maintain the data in MRP3 view of material ive mater record

589

Demo2_MRP

Object To create the planned independent ive requirements

590

Demo2_MRP

Object To maintain the planned independent ive requirements

591

Demo2_MRP

Object To carry out the planning run ive

592

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

593

Reporting in MM

In Purchasing, a variety of documents are maintained such as

Purchase Requisition, Purchase Order, Goods Receipt and Invoice Receipts The R/3 system updates these documents and stores them in database tables. Standard Analysis can be used to analyze the information contained in these documents. For example we would want to know List of Purchase Orders for a Vendor The number of Purchase orders for which you have already received goods. The average value of each PO for a purchasing group Receipts / issues for a given material for a given period Stock at a given plant and storage location 594 Inventory turnover.

Reporting in MM

You can carry out analysis for Master data as well as documents The reports which are outputted can be saved in an MS- Excel

sheet or as a pivot chart The analysis in the R/3 system provides the users with a quick and convenient overview.

Two important fields in a report are


Selection Parameters : It determines which Purchasing documents the report evaluates. Scope of list : This determines which data is displayed for the document.
595

Reporting in MM

Objec To generate a list of Purchase Orders for a tive Vendor

596

Reporting in MM

Objecti To generate a list of Purchase Orders for a ve Vendor

597

Logistics Information System

SAP Logistics offers a range of application related information


systems All have standard interface and similar basic functionality All Logistics Information systems have the same type of data retention. Different information systems available in SAP are SIS : Sales Information System PURCHIS : Purchase Information System INVCO : Inventory Controlling WMIS : Warehouse Management Information System PPIS : Shop floor Information system

Information system in LIS are continuously supplied with data from


transaction systems (Sales and distribution, Purchasing, Production

598

Logistics Data warehouse

The physical tables in the SAP information warehouse are

information structures or info structures. The objects to be analyzed in the real business world go into info structures as evaluation groups in the form of characteristics. Organizational elements, such as, Purchasing group, Material group, Plant are used as characteristics in info structures.

599

LIS reports

Objec To generate standard report from LIS tive

600

LIS reports

Objec To observe the drilldown function in LIS reports tive

601

LIS reports

Objec To observe the drilldown function in LIS reports tive

602

Curriculum

1. Introduction to Procurement 2. Organization Structure 3. Master Data


1. Material Master 2. Vendor Master 3. Customizing settings for master data 4. Purchasing 5. Inventory Management 6. Invoice Verification 7. Account Determination 8. Batch Management 9. Physical Inventory 10. Consumption Based Planning 11. Standard Reports in MM 12. Standard Tables in MM

603

Agenda

Name of Standard Tables in MM the section Duration 1 (hours) Objective To understand the different tables related to Materials Management. Pre Knowledge on SAP MM requisites
Course Content

Material Master tables Purchasing tables

604

Material Master Tables

605

Purchasing Tables

606

Purchase Order Linking of Tables

607

Goods Receipt Linking of Tables

608

List of Tables

EINA EINE MAKT

Purchasing Info Record- General Data Purchasing Info Record- Purchasing Organization Data Material Descriptions

MARA
MARC MARD MAST MBEW MKPF MSEG MVER MVKE RKPF

General Material Data


Plant Data for Material Storage Location Data for Material Material to BOM Link Material Valuation Header- Material Document Document Segment- Material Material Consumption Sales Data for materials Document Header- Reservation
609

List of Tables

A501 EBAN EBKN EKAB EKBE EKET EKKN EKKO

Plant/Material Purchase Requisition Purchase Requisition Account Assignment Release Documentation History per Purchasing Document Scheduling Agreement Schedule Lines Account Assignment in Purchasing Document Purchasing Document Header

EKPO
IKPF ISEG LFA1 LFB1

Purchasing Document Item


Header- Physical Inventory Document Physical Inventory Document Items Vendor Master (General section) Vendor Master (Company Code)
610