Sap Document Change Control

Document Change Control :
Release Description Created by Date Reviewed Date Approved by Date

by
01 Source List Ramanan.P.V 04.06.2009 Puneeta Singh Som
Venkatanarayan
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_SL

Process Source List
Applicable Business Types All
Applicable countries USA
1. Requirements / Expectations
A brief definition of the process and its requirements.
The purpose of the source determination process is to automatically assign the source of supply to a purchase
requisition.
2. General Explanations
This Contains the Knowledge Transferred from the Gate Gourmet.
Source list records can be maintained for individual sources of a material as follows,
Manual maintenance
Use this method if you have to make numerous changes to, or new entries in, the source list.
Maintenance from within an outline agreement

With this procedure, you can adopt an outline agreement item in the source list when creating or
changing an outline agreement.
Maintenance from within an info record

With this procedure, you can enter a vendor in the source list when creating or changing a purchasing
info record.
Automatic maintenance
You can have a source list for a material created automatically. The system creates a source list record
for each info record that has been defined for the material or for each outline agreement item in which
the material is specified.
Prerequisites
Before you create a source list, you must consider the following points:
Material and plant: In each source list, you must enter the material number and the relevant plant key
for each source.
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Validity period: Consider for which period the source list is to be valid. You can define several validity
periods.
Source list requirement for plant: If a source list requirement has been defined for a plant, you must
maintain the source list for each material in the plant before a material can be procured for the plant.
Source list requirement for material: It may be necessary to include possible vendors of a material in
the source list before the material can be ordered. The Source list requirement field in the purchasing
data of the material master record indicates whether a source list requirement exists for a material.
Gate Gourmets Process:

Source list records are maintained manually, for the plant and material combination. Automatic
generation of source list records is not used in GG process.
The maintenance of source list from the info record is not presently used in GG process, but in later
stages this may be adopted.
Generally the validity period, Vendor and the relevance for Material Requirements planning is
maintained for the source list.
The concept of fixed vendor in the source list is not used. All most all the source identifications are
having MRP relevance 1.
The source blockage indicator is very rarely used, which happens when there are multiple master
records available in the SAP, and to restrict one of the master records the blockage may be used.
The source list mandatory operation is not carried out at plant level or at material level.
There is no source determination carried out for the manual purchase requisitions. Since the Request
for Quotation (RFQ) process is not practiced in GG process, maintenance of source list records from
RFQ is not used.
3. Special Organizational Considerations.

If there are any special organizational considerations. Where in the organization a particular process exists or if it is unique
to a business division or if there are exceptions made to individual employees.
Nil
4. Process Diagrams
Provide links to all related process maps or diagrams.
C:\01_MyWorkPlace\
101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_SAPL2Support_MM_SL.vsd
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5. Process Map in SAP
6. Description of Functional Deficits.

Observation of differences ( GAP )
Nil.
7. Integration considerations
Integration with other modules.
Nil.
8. Reporting Requirements
Document the various reports.
None
9. Authorization Requirements
Level of authorizations available in each process in the system.
As per Gate Gourmet authorization Matrix.
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Release Description Created by Date Reviewed by Date Approved by Date
01 Purchase Ramanan.P.V 04.06.2009 Puneeta Singh Som
Info Record Venkatanarayan
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_PIR

Process Purchase Info Record
Applicable Countries USA

Purchasing/ Price info records (PIR) are relationships that are defined between a vendor and a material. They
carry the details of a material supplied by a specific vendor. This means that, in case there is a material being
supplied by three vendors, it is necessary to have three info records created in the system.

This Contains the Knowledge Transferred from Gate Gourmet.
Purchasing info records are the secondary master data which facilitates during purchasing for automatic price
determination. This serves as a source of information during purchase.
The purchasing info record (also referred to in abbreviated form as the info record) contains information on a
specific material and a vendor supplying the material. For example, the vendor's current pricing is stored in the
info record.
The info record allows buyers to quickly determine:

Which materials have been previously offered or supplied by a specific vendor
Which vendors have offered or supplied a specific material
The info record contains:
Data such as prices and conditions that you can store for the relevant purchasing organization or plant
The number of the last purchase order
Tolerance limits for over deliveries and under deliveries
The planned delivery time (lead time required by the vendor to deliver the material)
Vendor evaluation data
An indicator showing whether the vendor counts as the regular vendor for the material
The vendor sub-range to which the material belongs
The availability period during which the vendor can supply the material.
An info record can apply to the following organizational levels:
Purchasing organization
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Plant
Procurement Types in Info Records

Standard
A standard info record contains information for standard purchase orders. The info records can be
created for materials and services with and without master records.
Subcontracting
A subcontractor info record contains ordering information for subcontract orders. For example, if you
subcontract the assembly of a component, the subcontractor info record would include the vendor's
(subcontractors) price for assembling the component.
Pipeline
A pipeline info record contains information on a vendors commodity that is supplied through a pipeline
or pipes (for example, oil or water) or by similar means (for example, electricity through the mains).
The info record contains the vendors price for the consumption of such commodities by the buyer
(pipeline withdrawals). You can store withdrawal/usage prices for different validity periods.
Consignment
A consignment info record contains information on a material that vendors keep available at their own
cost on the orderers premises. The info record contains the vendors price for withdrawals by the
orderer from consignment stock. As in the case of the pipeline info record, you can store prices for
different validity periods.
Gate Gourmets Process
Purchase Info Records are created both manually and automatically. Automatic is done using an
Upload Program. In both manual and automatic, the authorization matrix will be checked for the
maintenance of Info Record.
PIR serves like a contract and gives important information to the purchaser like - Price, Purchasing
Group, Delivery Tolerance, Vendor Material Number, etc.,
An Over Delivery Tolerance of 10% is maintained at purchasing organization level as Gate
Gourmet Standard, which will be applicable to all plants. Over Delivery Tolerance field is not a
mandatory field.
The Upload program will be used both at Purchasing Organization Level and at Plant (Unit) level. A
flat file will be required while we create the PIR using Upload program. ZMMPIR is the transaction
used for uploading the flat file.
Update the purchasing info record

To update the purchasing info record; during creating or maintaining of quotations, scheduling
agreements, contracts, and purchase orders, tick the Info Update field to specify that the info
record is to be created or updated.
In Gate Gourmet case, the automatic update of PIR is turned off based on the user parameters
(EVO). Hence during the creation of purchase order, since the info Update is turned off, the same
will not be updated automatically. This is to ensure the manual price maintained in the PIR is
secured. This indicates the price changes during purchases are not automatically updated.
A Vendors material (Ex: - Loaf Bread) can be supplied to different Airlines. When Gate Gourmet is
supplying this Vendors material to different Airlines, this will be supplied at a different price. In order
to store the contractual data in SAP for the same Loaf Bread, different Material Masters were
created based on airlines. The information of vendor material number and the vendor contract
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reference number if available will be tracked using the Vendor Material Number from the PIR.
Vendor This Vendor may supply the same Material to Different

(V1) Airlines (Ex: - Loaf Bread). A Vendor Master Record is
created for this Vendor in SAP.
SAP SAP SAP This Vendor can supply the same

Material Material Material material to different Airliner, but the
Number Number Number price may be different for the airliner,
(M1) (M2) (M3) i.e. the contract. Hence in SAP
different material numbers were
399 & 399 & 399 &
created.
69999 78888 58888
This is Vendors This is the contract reference

Material Number. number, which is unique
There is no purchase order text and Info Record Texts maintained in the PIR.
Number ranges for PIR are maintained as mentioned below,
Number Range Object Purch. info record

Group
Number
From number To number status Ext
Purchasing info record for stock material (IL)
5300000000 5399999999 5300045479
5400000000 5499999999 X
PIR for material group (non-stock

mat.) - IN
5500000000 5599999999 5500000019
5600000000 5699999999 X

If there are any special organizational considerations. Where in the organization a particular process exists or if it is
unique to a business division or if there are exceptions made to individual employees.
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Purchase Info Record is only maintained for General category.
Other categories like Sub-Contracting/Consignment/Pipeline, is not practiced in Gate Gourmet (USA).
13. Process Diagrams

C:\Users\ramananpv\
Desktop\GG_BPS_MM\GG_MLBS - Purchasing Info record.vsd

Since the PIR is maintained both different at purchasing organization level and at plant level, it is imperative
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to maintain authorization matrix to the possible organization objects, otherwise there is possibility of Plant
level price being altered by the Purchasing organization level.
The Over delivery tolerance is practiced for some specific products and this field in PIR is not a mandatory
field. Presently this is maintained based on user, while creating the PIR; hence there is every possibility that
non relevant products can also have Over Delivery Tolerance.

Nil.

None

In General PIR which all are specific to purchasing organization will be created by the Accounts Service
Group centrally. The users in the Account service group will be having the authorization to create /
Change / Display and Delete. In this case the Plant (Unit) level users will not able to Create / Change the
Info Records.
However when the info records are created with plant level data then the users of the particular plants will
be able to create / Change / Display / Delete the plant level data of Info Records.
This authorization matrix is also valid for automatic upload via program - ZMMPIR

by
01 Purchase Ramanan.P.V 04.07.2009 Puneeta Singh Som
Requisition Venkatanarayan
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_PR

Process Purchase Requisition

Purchase requisitions are internal documents for asking your Purchasing department to procure a particular
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quantity of a material or a service for a particular date.

2.1 Purchase Requisition:
A purchase requisition can be created directly or indirectly.
Direct means that a purchase requisition is created manually in the department that made the request. Whoever
creates the purchase requisition determines which material or service is ordered, and the quantity and date.
Indirect means that that purchase requisition from another SAP component is created automatically. Purchase
requisitions can be created automatically, as follows:
in MRP
with maintenance orders
with production orders
with networks
When you create a purchase requisition for materials that have a material master record, the system transfers
data in the material master record to the purchase requisition. You can convert purchase requisitions into RFQs,
purchase orders or outline agreements.
If you want to request materials or services directly for an account assignment object, for example, for your cost
centre or for an asset, you must specify in the item overview the corresponding account assignment category.
This means that you have to enter additional account assignment data in the item detail on the Account
assignment tab.
If you want to distribute the quantity in a purchase requisition item with account assignment to the different
account assignment items, you just need to enter the account assignments, but not the sub quantities. The
system automatically distributes the requested quantity in equal parts to the existing account assignment items.
If you do not know the account assignment object for which the material is being procured when you create the
purchase requisition, you can use account assignment category U (unknown) in the purchase requisition.
Automatic Purchase Requisition.

The MRP controller is to monitor stocks and create procurement proposals for purchasing or production. The
main function of material requirements planning is to guarantee material availability, that is, it is used to procure
or produce the requirement quantities on time both for internal purposes and for sales and distribution. This
process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for
purchasing and production.

Purchase Requisitions are created both Direct (Manually) and Indirect (Automatic in MRP only).
Purchase Requisitions are grouped together based on documents, i.e. the document type. The other
controls document type attributes are 1) link various follow on documents, 2) Number Range etc,3)
Screen layout etc.,
Apart from the standard Document Types there are few customized document types created for GG US
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process. These are ZB and ZAIR (Airline Equipments).
The most actively used purchase requisitions document type are NB and ZB.ZAIR is not used in GG
US Process.
Requisitions generated from Material Requirement Planning (MRP) uses the Document type NB. These
types of requisitions are not subjected to release procedure (That is Requisitions created using the
document type NB). There is no authorization controls or user exits used to restrict the edit access of
automatically created purchase requisitions.
It is also not mandatory for the purchase process to have the purchase requisition as a pre-requisite. In
general manual creations of purchase requisitions for materials which are requested through MRP are
not practiced, but the same is not restricted in SAP P-REQ process.
Requisitions created manually uses the Document Type ZB. These are all account assigned purchase
requisitions, with account assignment categories K and Z (Account assignment Z was created
especially for GG process). The Non-Stock Purchase requisition is created using this document type
ZB.
As a standard process all the Purchase requisitions created using the document type ZB will go through
Release Procedure. Please refer the release procedure documentation given below for further
reference.
Purchase requisitions for the following is not used in GG US process,
Stock Transport Order.
Sub Contraction.
Vendor Consignment.
Service.
Standard Screen layout is used for the purchase requisition process.
The Price from the Purchasing requisition will not be adopted to the purchase orders if there are info
records for those vendor + Material combination.
Number Ranges maintained for the purchase requisition is mentioned below, one for internal numbering
and the other for external numbering. External numbering is presently not used in GG US process
Number
No From To status Ext
01 10000000 19999999
02 90000000 99999999 X
03 2000000000 2999999999 X
04 3000000000 3999999999
2.1 Release Strategy in Purchase Requisition
You use this component if you wish to set up approval procedures for purchase requisitions or other purchasing
documents. Under such a procedure, if a purchase requisition or external purchasing document fulfills certain
conditions (e.g. the total order value exceeds $10,000), it has to be approved (by the cost center manager, for
instance) before it can be processed further. This process of approving (clearing, or giving the green lightto) a
proposed item of expenditure is replicated in the SAP System by the release procedure.
It is sensible to define separate release procedures for different groups of materials for which different
departments are responsible, and to define separate procedures for investment goods and consumption goods.
Release Procedure for Purchase Requisitions
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Two different procedures are available for requisitions:
With classification: With this procedure, requisitions can be released both at item level (i.e. item-by-
item) and in total. The latter approach is also termed overall release.
Without classification: With this procedure, requisitions can only be released at item level.
To enable a release strategy to be assigned to it, a requisition or an external purchasing document must have
one of the possible values for each characteristic.
Account Assigned purchase requisitions which are manually created using document type ZB will go
through release procedure, based on selected conditions. The procedure used in GG process will
check for the Overall Release, i.e. Total
There are two release groups created. Group 10 and Group 30. Group 10 is used for GG US
process.
Group 10 has various release codes, release codes 01 to 05 is used for Unit level release, and
release codes 10 to 50 is used for corporate level release.
There are five strategies created each for Unit level release and corporate level release. The
conditions (characteristics) used for all the strategy is common and the same is given below,
Characteristics Description Strategy Strategy Value
PURCHASINGORG Purchasing Organization 6139

U01 to U91 &
PURCHASINGROUP Purchasing Group UZ2
Account assignment
ACCOUNTASSIGNMENT category K, Z
Strategy 01 to 05.
PLANT Plant 1001 to 1041
Total value of requisition
TOTALPURCHASEREQVALUE for
TOTALPURCHASEREQVALUE_EUR for
Purchase requisition
PREQDOCTYPE document ZB
Characteristics Description Strategy Strategy Value
PURCHASINGORG Purchasing Organization 6139

U53,UZ1 to
PURCHASINGROUP Purchasing Group UZ5
Account assignment
ACCOUNTASSIGNMENT category K, Z
Corporate
PLANT Plant Strategy 10 to 50 1001 to 1041
Total value of requisition is used.
TOTALPURCHASEREQVALUE for
TOTALPURCHASEREQVALUE_EUR for
Purchase requisition
PREQDOCTYPE document ZB
In all the above strategies, the characteristics values for the entire characteristic are constant,
except the value for the characteristics TOTALPURCHASEREQVALUE.
The value for this characteristic will be different based on the strategy. Ex: - For strategy 01 the
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value is 0 to 500 USD, for strategy 02 the value is 500.01 - 5000.00 USD and so on.
No Workflow is used in GG US process.

Nil

C:\
01_My_Workplace\101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_SAPL2Support_MM_PR.vsd
Page 12 of 39
Nil.

Nil.

None


Rel Descriptio Creat Date Review D Approved Dat
eas n ed by ed by at by e
e e
01 Organizatio Raman 04.04. Puneeta Som
n Structure an.P.V 2009 Singh Venkatanara
yan
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_ORG

Process Organization Structure
Applicable Business All
Types

The Enterprise structure of Gate Gourmet US is explained in this document.

Page 13 of 39
Organization Structure
Operating Concern
This is used for Profitability Analysis reports. Gate Gourmet uses GG00 as Gate Gourmet operating
concern. However, the users in US region are not using any functionalities of this Operating Concern.
Controlling Area
It is an Organizational unit in an organization that represents a closed system used for cost accounting
purposes. Controlling Area for US region is US00.
Company code:
Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be
drawn up for external reporting. This involves recording all relevant transactions and generating all
supporting documents for financial statements, such as balance sheets and profit and loss statements.
Gate Gourmets Case:
The Controlling Area (US00) has ten Company Codes (10).Company Codes are uniquely
identified by four digit numbers which all are in 2000 Series. (There is few company codes
created with Alpha Numeric keys / Alpha Keys, which all are used for Country Templates).
Though there are 10 Company Codes under the US00 controlling area, the most active Company
Code is 2139. The intended financial transactions and logistics transactions are being carried out
in this Company Code.
The other Company Codes Ex: - 2168, 2189,2226,2231,2240 has only financial transactions and
no inventory postings happens in these Company Codes.
In Company Code 2168, E- Gate Matrix which is established for selling IT services to other
airlines has only financial process mapped. Later the Sales process from Order to Billing (Without
Delivery) was mapped into SAP. There are no Inventory postings happening currently in this
Company Code.
Company
Company Code Company Name
2139 2139 GG Inc
2140 2140 GG US Inc
2141 2141 GG Holdings Inc
2168 2168 E-gate matrix llc.
2189 2189 Gate Safe Inc
GG Delaware Holding
2203 2203 Inc
2204 2204 GG Borrower LLC
2226 2226 Gate Serve LLC
2231 2231 HQ US
2240 2240 Global Aviation
Page 14 of 39
Services
Plant
An organizational unit that serving to subdivide an enterprise according to production, procurement,

maintenance, and materials plan aspects are called as Plant. It is a place where either material produced or
goods and services provided.
A plant can be subdivided into storage locations, allowing stocks of materials to be broken down according to
predefined criteria (for example, location and materials planning aspects).
A plant can be subdivided into locations and operational areas. Subdivision into locations takes geographical
criteria into account, whereas subdivision into operational areas reflects responsibilities for maintenance.
All data that is valid for a particular plant, as well as for the storage locations belonging to it, is stored at plant
level. The plant plays an important role in the following areas:
Material valuation: If the valuation level is the plant, the material stocks are valuated at plant
level. If the valuation level is the plant, you can define the material prices for each plant. Each
plant can have its own account determination.
Inventory management: The material stocks are managed within a plant.
MRP: Material requirements are planned for each plant. Each plant has its own MRP data.
Analyses for materials planning can be made across plants.
Production.
Costing.
Gate Gourmets Case:
Plant is the Valuation Area.

Plants are generally termed as Units in Gate Gourmet terminology. These Units are identified by
the End Users referring the airport names. Ex: - Plant in Washington D.C. may be identified as
IAD Unit (International Airport Dulles).
Plants are uniquely identified by four digit numeric numbers.
1. Plants which are all under US Company codes are numbered in1000 series.
2. Plants which are all under Europe Company codes are numbered in 3000 series, whereas
3. Plants which are all under Asia Pacific Company codes are numbered in 5000 series.
There are about 70 Plants created under CC: 2139. Plants from 1000 to 1042 and 1076 are
operational plants.
Plants 1102 to 1112 do not have any Purchase to Pay and Inventory operations. These are only
used at company code level to track some finance transactions.
Plants 1042 to 1052 having descriptions Amtrak is Non-Inventory plants, mostly used for
maintaining some service charges like Truck Repair.
Plants in the series 1800, which all are under Company Code 2189, is currently used for Non-
Inventory purchase process.
A detailed list of plants with Jurisdiction codes is attached for further reference.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Maralbs_GG_Plants.xls
Purchasing Organization
The organization elements pertaining to Procurement is Purchase Organisation.
An organizational unit that subdivides an enterprise according to the requirements of Purchasing. It procures
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materials and services, negotiates conditions of purchase with vendors, and is responsible for such
transactions. The purchasing organization is integrated within the organizational structure.
Vendor Evaluation also happens based on the purchasing organization.
Gate Gourmets Case:
The concept of Purchasing is kept in such a way, that there will be a single purchasing
organization which will take care of entire company purchasing. Hence all plants under one
company code will have a single purchasing organization. There are about Seven purchasing
organizations (7) created.
The most active purchasing is 6139, which takes care of the entire purchase for all plants under
the active Company Code 2139.
Company Purchasing Description

Code Organization
2139 6139 GG Americas
2140 6140 GG US Inc.
GG Holdings
2141 6141 Inc.
2189 6189 GG Safe Inc
2226 6226 Gate Serve LLC
Corporate
2231 6231 Reston
Global Aviation
2240 6240 Serv
The Purchasing Organization is uniquely identified by Numeric numbers. The logic used to
number the purchasing organizations is starting with number 6., and concatenating the last
three digits of company codes. (Example: - For Company Code 2139 P- Org is 6139).
Please refer the process diagram attached below for the assignments of Purchasing
Organization.
Storage Location
A storage location is the place where stock is physically kept within a plant.
A storage location has the following attributes:

There may be one or more storage locations within a plant.
A storage location has a description and at least one address.
It is possible to store material data specific to a storage location.
Stocks are managed only on a quantity basis and not on a value basis at storage location level.
Physical inventories are carried out at storage location level.
Storage locations are always created for a plant.
Gate Gourmets Case:

Storage Locations are uniquely identified by Numeric four digit numbers.
As mentioned above, the most active company code is 2139. All the plants under this
company code have identical storage locations. There are about 22 storage locations
maintained under these plants.
Storage locations 0101, 0200, 0301, 0401, 0402,0403,0404,0501 and 0801 are mostly
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actively used storage locations.
In the above mentioned storage locations, the SLOC: 0200 is the Production WIP storage
location which is used for material staging. The materials will be transferred from various
storage locations to this WIP storage location for Back flushing, i.e. consumption. This is
also the finished product storage location.
Storage Location 0601 to 0705 is used for stocking other Airlines materials, which are
generally non-valuated.
Storage Location Address concept is not used in Gate Gourmets case.
Storage locations 0001, 0088, and 0100 which are created under plants 1800 series are
currently not used.
Storage loc.
Plant SLoc description. Remarks
1005 0101 Dry Stores
1005 0200 Prod. / WIP All
1005 0201 Supermarket-D&D Not Used
1005 0202 Stand By Not Used
1005 0301 Freezer
1005 0401 Main Cooler
1005 0402 Dairy Cooler
Plant 1005 is for Example
1005 0403 Produce Cooler

1005 0404 Juice Cooler
1005 0501 Disposable Equip
1005 0601 Beverage/Liquor
1005 0602 Delta Liquor
1005 0603 United Liquor
1005 0604 American Liquor These Storage
1005 0605 BA Liquor Locations are
used
1005 0606 Other AirlinLiqr
for stocking
1005 0701 Delta Equipment Other Airlines
1005 0702 United Equipment Materials
1005 0703 AA Equipment
1005 0704 BA Equipment
1005 0705 Other Equipment
1005 0801 Chemical
WM: Ware House Management concept is not used in Gate Gourmets case.
Purchasing Group
A purchasing organization can be divided into several purchasing groups that are responsible for different
operational areas. Purchasing group is a free floating entity without any assignment; this is used for reporting
purpose. This can be also used for organization release strategy.
Gate Gourmets Case:

Purchasing groups are uniquely identified by 3 digit Alpha Numeric number through out the GG
group. The first alphabet represents the continent of operation. Ex: - US is U, Europe is E and
for Asia Pacific it is A.
In the case of US operations the purchasing group numbers will start with letter U followed by
numbers and alphabets.
Page 17 of 39
The purchasing groups are classified broadly as FoodBuyer-1 / FoodBuyer-2 / Air. Equip.
Buyer1 /Charter & Miscellaneous. There are some other general classifications, which is given
in the attached file for the further details.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Marlabs_GG_PurcGroup.xls
Purchasing group USA is used for purchasing organization level data, which is Non-Plant
specific. This is mostly used for a specific Vendors (Ex: - Michael Lewis) to store the contractual
price at purchasing organization level.
Purchasing Groups are also used as one of the characteristic for purchase requisition release
process.

Nil.

C:\01_MyWorkPlace\
101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_US_SAP_L2_KT_MM_ORG.vsd

Some of the Purchasing organizations which are assigned to the respective plants were not assigned to
their company codes.

Nil.

None.

Page 18 of 39
by
01 Master Ramanan 04.07. Puneeta Som
Data .P.V 2009 Singh Venkatanara
yan
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_MD

Process Master Data
Types

1.1 Material Master.
To have a uniform process for creation of new material code or extension of material code in different plant/
locations
1.2 Vendor Master.
To follow uniform process for creation of vendor master across GG process and adhere to group guidelines.

2.1 Material Master:
The material master contains information on all the materials that a company procures or produces, stores,
and sells. It is the company's central source for retrieving material-specific data. This information is stored in
individual material master records.
The material master database (often referred to simply as the "material master", comprising all the individual
material master records stored in the system) contains descriptions of all materials that an enterprise
procures, produces, and keeps in stock. It is the central repository of information on materials (such as
inventory levels) for the enterprise.
The integration of all material data in a single materials database eliminates the problem of data redundancy
and permits the data to be used not only by Purchasing, but by other applications (such as Inventory
Management, Materials Planning and Control, Invoice Verification, and so on).
Page 19 of 39
Industry Sector
When you create a material master record, you are required to classify the material according to
industry sector and material type. This is basically to have a Screen Sequence control and Field
Selections. In the Case of Gate Gourmet, a specific industry sector termed as Gate Group (K) is
created and the standard screen control M is used.
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. Apart from the standard material types, there is few customized material types created
for GG process. Please find a list attached for the detailed information on material type and it
controls. Mostly used material types in GG process are,
1. DIEN - Services
2. FERT Finished Products
3. HALB Semi Finished Products
4. KMAT Configurable Materials
5. ROH Raw Materials
6. YEIN Services EGM
7. ZAEQ Airline Equipments
8. ZAFM Airline Food Materials
9. ZASB Airline Sales On Board
10. ZCSM GC Catering Supplies
11. ZDIE Services For Delta
12. ZGSB GG Sales on Board
13. ZKEQ - GG Kitchen Equipment
14. ZOFM GG Office Materials.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Marlabs_GG_MatType.xls
Material Types ZAEQ, ZAFM, ZASB are Airline materials (Not GG Materials), which are Non
Valuated materials. Only there will quantity update and there would not be any value update.
Accounting view is also maintained for these material types.
Material Type ROH: is used for Food related raw materials used to compose the meals delivered to
the customers. Example: - Milk, Rice, Meat, Wine etc.,
Material Type ZCSM: is similar to raw materials but this is non food related items ( Disposable Items)
used in catering business directly. Example: - Paper Cups, Napkins etc.,
KMAT material type is used in GG process. In the Bill of Material under each KMAT material there
can be one or more FERT materials. There are screen modifications customized for KMAT materials
in Sales View 1 &2.
Page 20 of 39
Classification
A classification system (Class Type: Material Class - 001) with characteristics is used, which is
applicable for all material types. The Class used is ZMIG01: Material Master Migration, with some
characteristics as given below,
ZMIG01_09: GG DE old material number

ZMIG01_10: GGZ old material number
ZMIG01_11: GG GVA old material number
ZMIG01_12: GGBSL old material number
ZMIG01_13: GGUS material number
ZMIG01_14: GGUS Airline Material Numbers
Some of the Characteristic used are GGUS Airline Material Numbers and GG DE old material
number .
Number Range
For every material that company uses, there must be a material master record in the material
master. This record is uniquely identified by a material number. Both Internal and external numbering
are practiced in Gate Gourmet process. For Further details please refer the detailed file attached
herewith.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Marlabs_GG_NumberGroups.xls
Material Group
Material groups are classified as per United Nations Standard Products and Services Code
UNSPSC codes. Apart from the above standard codes, there is some customized material groups
created for GG process. Please find a list of material groups used for detailed information.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Marlabs_GG_MaterialGroup.xls
Price Control
The Price control adopted for all the materials are Standard Price S. This is also applicable to
ROH: Raw materials.
Master Creation
Material Master is created both Manually and Automatically. In both the cases authorization matrix
will be checked.
Material Master is created Automatically with a help of LSMW program. This is mostly used in the
case if the airlines send the data electronically. The data required for automatic upload is saved in an
Excel file. This file will be validated in SAP and then uploaded using the LSMW program.
The transaction used to convert the electronic data file is ZMMFILECONV, with this program the
Page 21 of 39
file will be converted to a flat file, which will be the input for LSMW automatic Upload. Automatic data
upload is carried out by the ASG (Account Service Group Team).
The LSMW program is,
Project : MIGRAT2005
Subproject: MATERIAL
Object: CREATE_NEW
2.2 Vendor Master
The vendor master database contains information about the vendors that supply an enterprise. This
information is stored in individual vendor master records. A vendor master record contains the vendors
name and address, as well as data such as:
The currency used for ordering from the vendor

Terms of payment
Names of important contact persons (sales staff)
Since, for accounting purposes, the vendor is also a creditor of the enterprise, the vendor master record
also contains accounting data such as the reconciliation account from the general ledger.
The vendor master record is therefore maintained by both purchasing and accounting. This is also the
reason for the subdivision of the data in the vendor master record into different categories.
The data in the vendor master record is subdivided into the following categories:
General data: This data is valid for the whole client. It includes the vendors address and bank
details, for example.
Accounting data: This is maintained at company code level. It comprises data such as the
number of the reconciliation account and the payment methods for automatic payment
transactions.
Purchasing data: This data is maintained for each purchasing organization. It includes the
purchase order currency, Incoterms, and various control data pertaining to the vendor. You can
also maintain different data for specific plants or for vendor sub ranges.
Payments to vendors are based on the terms in the purchase orders / Invoice and these terms may be
indicated in the vendor master records. Based on the terms agreed with the vendor, the payment made
may be a down payment or and full payment as per credit terms. Payments may also be made through a
bill of exchange in some cases
The terms of payment may be specified in the vendor master. These will indicate the number of days
credit offered by the vendor, any cash discount available and installment payments if applicable.
Account Group
When creating a vendor master record, we must decide which account group you are going to
assign to this vendor. The account group has control functions. When we maintain the vendor master
record, for example, only the screens and fields that are needed for the relevant role of your
business partner appear and are ready to accept user input. This is controlled by the account group.
There is customized account groups created to take of Gate Gourmet process. The detailed list is
Page 22 of 39
attached herewith for further reference.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Marlabs_GG_VenAccGrp.xls
Number Range
The type of number assignment (internal or External), the number range are decided based on the
account group for vendor master creation. Please refer the detailed list for the number range details.
C:\
01_My_Workplace\101_GG_BPS_MM\05_Marlabs_GG_Excel\Marlabs_GG_Vend_NR.xls
Reconciliation Account
Reconciliation account number is uniquely identified by numeric number based on each account
group. The Reconciliation account for Vendor (Creditor) used are given below,
209100 Trade payables third-party
209170 Trade Payables Employees
209200 Trade payables inter company
209290 Trade payables- inter company balancing
209500 Advanced payments received
209900 Re class account debit balances
Partner Roles
The maintenance of partner roles in the vendor master record enables you to distribute one or more of
these roles among different vendor master records. Using the partner role functionality, you can define a
different creditor as a freight forwarder for a certain vendor, for example.
The Partner roles / Partner Schema used in the Vendor Master records,
L1 Vendor
L2 Vendor sub-range
L3 Vendor Plant
L4 Vendor + Manufacturer
L5 Invoice address
L6 Airline vendor
Mostly used partner schema for the vendor master is L1, L3 and L6.
Payment Terms
There are various customized Terms Of Payment (TOP) used in the process. One of them may be
keyed in based on the Vendor.

Page 23 of 39

Material Master: Observed for the Non Valuated Material Types / Material Masters the
accounting view is activated, but the price is maintained at Zero (0). Also observed in contest to
that the costing view is not activated for these material types.
Material Master: Observed both the type of Raw materials, i.e. ROH, ZCSM the price control is
maintained as S standard price, also an Info Record is maintained may be at a different price.
This may result in Price different at Goods Receipt. Is any analysis being practiced to correct
the standard price on monthly / quarterly / Yearly basis?

Nil.

None


by
01 Inventory Ramanan.P.V 04.21.2009 Puneeta Singh Venkatanarayan
Management Som
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_IM

Process Inventory Management
Page 24 of 39
1.1 Goods Receipt
Mentioned below are goods receipt process,

GR from Vendor is practiced in SAP, whereas
GR from Customer is not in use.
The vendor goods receipt will be for the following categories,
Receipt of Stock Materials

Receipt of Non Stock Materials
Receipt of Spares
Receipt from other Gate Gourmet Business Units
The receipts from the vendor will be against the reference document. Goods receipt without
reference document should not be allowed.
2.1 Goods Issue
Most of the Goods issue in GG US is by the way of Back flush.
3.1 Rejection Process
There are various possibilities of rejection can happen and the same has to be handled in SAP.
4.1 Stock Transfer
Stock transfer happens in GG US with in Company code and mostly restricted to Storage location
to Location, and in some cases plant to plant.

Goods Receipt:
The materials received are either kept in stock or directly charged to consumption (Cost centre, internal order
for assigning cost to equipment in case of maintenance and process like blending, doping etc) as applicable.
Stock Items: Normally all GRs (Goods Receipts) are prepared against Purchase orders (POs). In initial
upload of stock in to SAP systems goods may be received without referencing PO, such receipts are directly
posted to stock after obtaining necessary approval as per GG policy. In case of stock items stock and values
are updated in material master during GR.
Consumable items: In case of consumable items (Like machineries) materials are received and GR is
prepared by the stores and immediate possession of the material is taken by the user department. Quantity
is not updated in this scenario as the material is charged directly to the consumption account on receipt.
Page 25 of 39
Consignment stock: Materials received as consignment stock is received and GR is prepared by the stores.
Quantity is updated as vendor stock and material is not valuated in EOL book of accounts at the time of GR.
Stock Types: Material received shall be maintained (available) on following stock types.
Quality inspection stock
Unrestricted stock
Blocked stock
GR Blocked Stock
System facilitates the visibility of stock across GG at each storage location as well as at each storage type
level.
Unrestricted stock: Materials not required to be inspected during material receipt or materials cleared from
Quality inspection stock are received / transferred as unrestricted stock. These stocks are available both for
MRP and issue.
Quality inspection stock: Materials required to be inspected are maintained as quality inspection stock.
These materials are available for MRP but cannot be issued from stores for consumption or for transfer until
these materials are moved from quality inspection stock to unrestricted stock after quality clearance.
Blocked Stock: Received materials may be maintained as blocked stock due to quality rejection, obsolete
etc. These stocks are not available for MRP and issue. But the stock is valuated.
GR Blocked Stock: Materials may be received in GR blocked stocks incase of early deliveries by Vendors,
inadequate information of materials / documents / vendor etc. This stock is not available for MRP or issue.
These stocks are not valuated. These stock may be later transfer posted to either quality inspection stock or
unrestricted stock upon clarification
Receipt of Services:
The Services which are actually performed by the service provider are recorded in Service entry sheet
(SES) with reference to Purchase order. The SES will be subject to approval process.
System allows entering the planned and unplanned services. Planned means which are already
planned in Purchase order and unplanned means which are not planned in purchase order but the limits
are maintained in Purchase order.
In case of Plant maintenance when the account assignment is known only when the maintenance job is
completed for the plant, the account assignment will be entered at the time of entry of Service entry
sheet. Service entry sheet is equivalent to the goods receipt in inventory management. The only
difference is that Service entry sheet is subject to approval process. Only the competent authority can
approve the service entry sheet.
The financial entry got posted only when the service entry sheet is fully accepted, meaning vendor
liability will get cleared only after accepting the SES.

Goods Receipt is handled only against a Reference Document. GR without reference like, Initial
Entry of Stock Balance (561), GR without Reference (501) is used only during data migration time
to SAP.
Standard Screen layouts is used for all the GR process.
Quality Inspection is not practiced in SAP; hence most of the stocks are directed to Un-Restricted
Stocks for use.
Vendor rejections if any noticed during GR will be posted to Blocked Stock, and not to the GR-
Blocked Stock.
Vendor Delivery details during GR process is not captured in SAP.
Page 26 of 39
There is no tax capturing being practiced during the GR process.
Storage Locations: Mostly storage locations are defaulted from purchase order; otherwise the
storage locations are manually entered during the GR process. Storage locations used are
mentioned in the Organization structure document (Marlabs_GG_SapL2_Support_ORG).
Label print out: As explained in the Purchase Order process, a label prints out is taken after the PO
and before the physical goods receipt. Once the Goods are received the appropriate labels will be
stick on the goods for traceability and also to check the counts of goods received.
Goods Receipt of Finished Product is done with the help automatic back flush IDOC program. By
running this program in the background the finished product will come into Un-Restricted Stock,
normally in the Storage Location 0200, WIP Storage Location.
GR process not used in GG- US Process are,
GR for Sub Contracting.
GR for Vendor Consignment.
GR for Customer Materials.
2.2 Goods Issue.

The Inventory Management system in SAP 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 Sales shipping
Entering a Goods Issue with/Without Reference Document: Before entering a goods issue, you
have to find out whether any reference document or data exists in the system. When you enter a
goods receipt, you can reference:
Reservations
Production orders
Goods Issue Without Reference: If no reference document exists, because the goods issue has not
been planned (for example, urgent request of a material), you enter the goods issue without
reference. If you want to issue components of a bill of material, you can reference the relevant
BOM.
Goods Issue with Reference to an Order: When withdrawing components for an order, the system
distinguishes between the following types of goods issues:
Planned Goods Issue (for Reservation/Order): With this type of withdrawal the system automatically
creates a reservation for the components planned in the order. When you enter the goods issue, you can
reference the order or the reservation. The system determines all components to be withdrawn.
Unplanned Goods Issue: With this type of withdrawal, it is determined during the production process that
an additional material or an additional quantity of a component already withdrawn is required for an order.
This withdrawal is unplanned because there is no reservation to be referenced. You enter this withdrawal as
a goods issue without reference
Back flush: This type of withdrawal means that the components are already available at the production site.
They are physically consumed during the production process. However, the quantity consumed is not
reported until it is known how much has been actually consumed, that is not until order completion
confirmation. For these components, you need not enter a goods movement in the
Inventory Management system
Goods Issue With Reference to a Bill of Material: To withdraw all components of a bill of material
(production BOM or equipment BOM), you can reference the relevant bill of material. In this case, all of the
Page 27 of 39
components in the BOM are automatically copied for goods issue.

Almost all the Good Issue (GI) is planned. Goods Issue mostly happens with reference to a
document.
In Gate Gourmet US process, a delivery document will be created against the Sales Order.
Reference to the delivery document an IDOC is generated, and will be processed in the
background.
After the completion this IDOC processing, the finished product will come to Un-Restricted stock. A
Post Goods Issue for the outbound delivery can be processed after this, to complete the sales
cycle, the movement type used for PGI is 601.
After the Back Flush Automated process is completed, a Separate Back flush for the components
will be carried out (MF70). This will back flush the components like Semi Finished Materials (HALB),
Raw Materials (ROH, ZCSM) etc., to automatically issue the components from the storage location
(0200) Un-restricted stock.
If there are not enough stock coverage in this production storage location (0200) then a error log
will be posted, which can analyzed in a separate transaction, (MF47). Then the users will analyze
and take some remedial actions like transfer postings etc., to process those errors.
2.3 Rejection Process
The possibility where the rejection will generated are,
At goods receipt stage before inspection

At goods receipt stage after inspection
Process rejection
Vendor Return because of vendor fault
Rejection of own material at main production line/Projects

Most of the Rejection process is standard SAP best practices.
Return Delivery to Vendors is a Standard SAP process; this does not include any quality process in
SAP.
Process rejections are not practiced in SAP.
2.2 Stock Transfer
A stock transfer from storage location to storage location takes place within a plant. It is usually posted
without value, since the transferred material is managed in the same plant and therefore with the same
valuation data as before. If the material is subject to split valuation, and the valuation type of the material
changes due to the stock transfer, the system also creates an accounting document during the stock transfer.

Stock Transfer in Gate Gourmet US process is mostly towards Storage Location to Storage
Location. This is also practiced as Single Step procedure.
In General all the Raw Materials ( ROH & ZCSM ) will be received in their respective storage
locations like 0100,0301, etc., later this will transferred to the WIP Storage location based on the
Pull list for material staging. This is done with the help of movement type (311).
In the case of Chicago Plant some times the materials will be transferred from plant to plant.
Page 28 of 39
If there is not enough stock coverage of a particular material as per BOM, and alternatively they can
use a different raw material (Ex:- Blue Strawberry instead of Red Strawberry), the same will
transferred from a Material to Material ( 309) with standard SAP pre-requisites.
For a detailed stock transfer process practiced, please refer the Production planning document.
Return Delivery to Vendors is a Standard SAP process; this does not include any quality process in
SAP.


F:\01_My_WorkPlace\
101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_US_SAP_L2_KT_MM_GR.vsd
F:\01_My_WorkPlace\
101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_US_SAP_L2_KT_MM_GI.vsd
50. Process Map in SAP.

Refer Configuration (IMG) document.

It is observed that goods receipt for Airlines materials (Non Valuated) presently is received
against Physical Inventory only. That is Goods Receipt Others or Free Goods Receipt is not
practiced.

Nil.

None

Page 29 of 39
by
01 Logistics Ramanan.P.V 04.21.2009 Puneeta Singh Som
Invoice Venkatanarayan
Verification
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_LIV

Process Master Data

The invoice data is based on the purchase orders for stock or non-stock materials requested and shipped to
Gate Gourmet. You want to review the type of information that the vendors send.

Logistics Invoice Verification is the end of the logistics chain comprising Purchasing, Inventory Management,
and Invoice Verification, Logistics Invoice Verification checks incoming invoices for accuracy with regards to
content, price, and accounting.
The main task of Logistics Invoice Verification is to 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.
Logistics Invoice Verification can also process invoices that do not originate in materials procurement.
For each incoming invoice, Logistics Invoice Verification creates an MM invoice document and an FI invoice
document.
The invoice documents update data in:
Materials Management
Financial Accounting
You can post an incoming invoice with reference to a purchase order, a service, or a goods receipt.
When goods are received, the system debits the stock account and posts the offsetting entry to the GR/IR
clearing account.
Page 30 of 39
In the case of material with a moving average price, the stock account is posted 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 stock account is posted with the value of the standard
price multiplied by the quantity of goods received. The system posts the difference to an account for
Expenses or Revenue from Price Differences.
When the invoice is posted, the GR/IR clearing account is cleared and the vendor account is credited.
There are other process possible with Invoice Verification, those are
Subsequent Credit / Debit
Delivery Cost
Credit Memos and Reversals.

The Standard MIRO transaction is used for Logistics Invoice Verification and Posting process.
The Following process are used,
1. Invoice Verification
2. Subsequent Credit / Debit
3. Delivery Cost
4. Credit Memos and Reversals.
Goods Receipt based Invoice verification is mandatory for all materials.
Vendor will send the invoices directly to Data Matrix a separate company. The invoices are entered
and checked in SAP by the person responsible in Date Matrix. If the invoice is blocked, Un-blocking
can only be done by GG Finance Department.
For Non Stock Materials Invoice verification is carried out with reference to a Purchase order.
Subsequent Credit / Debit based on the requirement the standard SAP process are used.
Invoice Verification in Background and Automated Settlements like ERS is not used.
With Holding Tax is not maintained in the Vendor Master and no Tax deductions are carried out during
Invoice Verification process. This is taken care separately for GG-US operations.
GR / IR Clearing:
There is a Customized transaction for GR / IR, which was only created to restrict authorization, i.e.
ZMR11 is only for display and not to Maintain.
GR/IR Account Maintenance is done periodically, Every Quarterly and at the year end closing.
Delivery Cost:
Delivery Cost is not entered in the purchase order as a Gate Gourmet Process. All the delivery cost is
entered during the invoice verification. Since the standard SAP support to post this delivery cost as
Unplanned delivery cost during the invoice verification to a separate General Ledger (GL) account are
distributed among the items, Gate Gourmet customized to automate the Unplanned delivery cost
postings to responsible cost centre, based on Tax Code / Jurisdiction Code.
Taxes:
In Gate Gourmet Taxes are not calculated during the purchase order process. The tax code is normally
kept as I0, which is for Non taxable purchases. However the Jurisdiction codes will be defaulted in
the purchase order invoice Tab.
Taxes are normally calculated at the time Invoice Verification process. Users after entering the basic
details as mentioned in the Invoice will select the appropriate tax codes, and calculate the tax.
After Simulation of accounting documents and verifications, users will post the Invoice documents.
There are Two Tax codes generally used, which are I0 and I1. Condition records are maintained for the
respective tax codes, in this case only for I1, Country and Jurisdiction Code, with a Validity period.
All the condition records are maintained for A/P Sales Tax 3 Exp. Based on the Jurisdiction the tax
Page 31 of 39
rates are maintained.
Some Times taxes are entered manually, instead of system calculating the tax. All the tax are posted to
a separate GL Account, 213000: Liability for Other Taxes.

Nil

C:\
01_My_Workplace\101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_SAPL2Support_MM_LIV.vsd
Page 32 of 39
Manual Tax entry during invoice verification is possible, and there are no tax calculations in PO and GR.
The tolerance limits for LIV against PO is on the net price, excluding the taxes, hence these tax variance
arise cannot block the Invoice.

Nil.

None


Rel Descrip Created Date Review D Approved Dat
eas tion by ed by at by e
e e
01 Physical Ramanan 04.20. Puneeta Som
Inventor .P.V 2009 Singh Venkatanara
y yan
Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_PI

Process Physical Inventory
Types

As per group requirement, physical inventory has to be performed monthly. Objective of the exercise is to have
book-to-physical inventory reconciliation. Individual physical location can conduct their physical inventory at
their agreed date.
Page 33 of 39
Physical inventory process allows to carry out a physical inventory of stocks for balance sheet purposes. A
physical inventory can be carried out both for a companys own stock and for special stocks. 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 (in different physical inventory documents),
The stock in a warehouse can be divided into stock types. A physical inventory can be carried out for the
following stock types:
Unrestricted-use stock in the warehouse
Quality inspection stock
Blocked stock

Inventory of all stock types mentioned can be taken. For the materials to be inventoried, one item line is created
in the physical inventory document for every stock type. Physical inventory takes place at storage location level.
A separate physical inventory document is created for every storage location.
If a material does not exist in a storage location, this means that no goods movement has ever taken place for
the material in the storage location. The material, therefore, has never had any stock in this storage location.
The material does not exist at stock management level in the storage location. It is therefore not possible to
carry out a physical inventory for the material in this storage location.
This is not to be confused with a material for which a goods movement has taken place and for which the stock
balance is currently zero. A physical inventory must be carried out in this case, since storage location data is not
deleted when the stock balance is zero.
There are following physical inventory procedures:
Periodic inventory
Continuous inventory
Cycle counting
Inventory sampling
1 Periodic Physical Inventory:

In a periodic inventory, all stocks of the company are physically counted on the balance sheet key
date. In this case, every material must be counted. During counting, the entire warehouse must
be blocked for material movements.
2 Continuous Physical Inventory:
In the continuous physical inventory procedure, stocks are counted continuously during the entire
fiscal year. In this case, it is important to ensure that every material is physically counted at least
once during the year.
3 Cycle Counting:
Cycle counting is a method of physical inventory where inventory is counted at regular intervals
within a fiscal year. These intervals for physical inventory count depend on the A,B, c
classification of the material. In this fast moving items are counted more frequently than the slow
moving items.
4 Inventory Sampling
In inventory sampling method randomly selected materials stocks of the company are physically
counted on the balance sheet key date. If the variances between the result of the count and the
book inventory balance are small enough, it is presumed that the book inventory balances for the
other stocks are correct.
Page 34 of 39
Physical Inventory in GG is carried out every month end before the Period End closing process. This is
carried out at each location separately.
Continuous Physical Inventory Procedure is used in GG process. The PI process before month end
process (Period End Closing). Except Airline materials, all the other materials are included for PI
documents.
Freezing Book Inventory is not practiced in Physical Inventory process.
PI is carried both manually and automatically. In the case of automatic, a bar code reader is used to
scan the Material Master Number and the quantities need to be entered in the hand held scanner
device. The process of automatic PI using the hand held scanner device is being rolled out for all the
plants. Presently this is practiced in very few plants.
PI Manual Process is carried out in steps as mentioned below,
1. Date(s) is agreed for physical inventory for a particular location.

2. At the cut-off date and time, a final check on all outstanding goods receipt / goods issue to be
performed by warehouse personnel.
3. Stock valuation report is generated prior to physical inventory.
4. Generate a Post Processing Components of Production to an excel file.
5. Initiate physical inventory count tags. (This is a customized transaction ZMI31).
6. Print the PI Document. ( Transaction ZMI21)
7. Distribute count tags to the persons.
8. Perform physical counts in the storage locations.( All storage Locations Except WIP Storage
Location 0200, and Airline Stock Storage locations like 0601 to 705).
9. Set the Physical Inventory posting block. (MI32)
10. Record physical count into system. (MI04)
11. Enter the Zero Counts for all the Materials not counted. (MI35)
12. Generate variance report. (This is a customized report ZZFI_GLINV which has additionally
Sub totals based on valuation class).
13. If Required the Initiate the Recount Process, enter counts and generate the report as mentioned
in point 12.
14. Submit variance report to Financial Manager or Person Responsible for approval. Once
approved then proceed for further process.
15. Based on the approval post the difference created from PI to Book Inventory (BI).
16. Stock valuation report is generated after the physical inventory.
17. Verify All PI Documents posted with total stock.
18. Unblock affected storage location in the system for material movements.
PI Bar Coded Process is done as Explained Below,
1. The Process Until Step 6 is similar to manual process

2. After the printout is done the PI document needs to be downloaded. A customized transaction is
available to Interface the PI document to Bar Code Device, ZMMPIBS. The Data will be
downloaded to a FTP folder; from there the information will be transferred to the Bar code
reader with a help of Software: PIBS.
3. After the data is downloaded to the Bar Code Reader, physically stocks will be counted and
entered in the Bar Code Reader, once all the PI counting is completed, the data will again
uploaded to FTP folder with the help Software: PIBS. The flat file from the FTP folder will be
uploaded to SAP with the help of customized transaction, ZMI34.
4. Rest all the Process is similar to Manual PI process.
For Further Details please refer the User manual : Physical Inventory with Bar Code Process.
Page 35 of 39
Generally the Sort rule for creating the PI document is based on Plant / Storage Location / Material
Number. Since the material numbers are uniquely generated in SAP as internal numbers, identifying group
of materials like Eggs by MM numbers is difficult; hence a customized sort is created for GG process.
This customized sort is based on Storage location and Material Description.

C:\
01_My_Workplace\101_GG_BPS_MM\03_Marlabs_GG_Visio\Marlabs_GG_SAPL2Support_MM_PI.vsd
Page 36 of 39
Nil

Nil.

None


Rel Descripti Created Date Review D Approved Dat
eas on by ed by a by e
e t
e
01 Customiz Ramanan 04.24. Puneeta Venkatanara
ed .P.V 2009 Singh yan Som
Developm
ents
Doc Control Number Marlabs_GG_SAPL2_Support_MM_DEV

Process Customized development
Types

Based on the business process requirements there are some customized developments in GG US Process.

Page 37 of 39
There are various customized developments created in GG US process, the most active and operative
developments are listed and explained thereafter,
1. Material Status Report (ZMATERIALS)
2. Stock on Posting Date: Material Restriction (ZMB5B)
3. Physical Inventory Documents W/O special Stock. (ZMI31)
4. Control Tool Material Measures (ZMM_CRT_UNIT)
5. Inventory Label Print out (ZMM_LABELS_PO)
6. Purchase Order Creation (ZMM_PO_CREATE)
7. Material Master Display (ZMM03)
8. Flat File Conversion (ZMMFILECONV)
9. List of Info Records (ZMMINFORECNEW)
10. Purchase Info Record Upload (ZMMPIR)
11. Display of GR / IR Clearing (ZMR11)
12. Report Inventory Balance By GL (ZZFI_GLINV)
13. Raw Materials Requirement Report (ZPPMRP)
14. Create & Send IDOCs (ZSDD1)
5 Material Status Report (ZMATERIALS)

This is an ABAP query written to review materials in certain status, and Flag for deletion. This query is
basically executed based on certain selectable conditions like Plant / Material / Material Type / Etc., This
is primarily used to ensure Bill of Materials created for correct Status materials. This is being carried out
at Account Service Group (ASG).
Page 38 of 39
Nil

Nil

Refer Configuration (IMG) document.

Nil.

Nil.

None

Page 39 of 39

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Document Change Control :

Release Description Created by Date Reviewed Date Approved by Date

Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_SL

Maintenance from within an outline agreement

Maintenance from within an info record

Gate Gourmets Process:

3. Special Organizational Considerations.

6. Description of Functional Deficits.

As per Gate Gourmet authorization Matrix.

Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_PIR

10. Requirements / Expectations

11. General Explanations

The info record allows buyers to quickly determine:

The info record contains:

An info record can apply to the following organizational levels:

Procurement Types in Info Records

Gate Gourmets Process

Update the purchasing info record

Vendor This Vendor may supply the same Material to Different

SAP SAP SAP This Vendor can supply the same

This is Vendors This is the contract reference

Number ranges for PIR are maintained as mentioned below,

Number Range Object Purch. info record

PIR for material group (non-stock

12. Special Organizational Considerations.

13. Process Diagrams

14. Process Map in SAP

15. Description of Functional Deficits.

16. Integration considerations

17. Reporting Requirements

As per Gate Gourmet authorization Matrix.

Document Change Control :

Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_PR

19. Requirements / Expectations

20. General Explanations

2.1 Purchase Requisition:

A purchase requisition can be created directly or indirectly.

Automatic Purchase Requisition.

Gate Gourmets Process:

2.1 Release Strategy in Purchase Requisition

Release Procedure for Purchase Requisitions

Characteristics Description Strategy Strategy Value

PURCHASINGORG Purchasing Organization 6139

Characteristics Description Strategy Strategy Value

PURCHASINGORG Purchasing Organization 6139

No Workflow is used in GG US process.

21. Special Organizational Considerations.

22. Process Diagrams

23. Process Map in SAP

25. Integration considerations

26. Reporting Requirements

27. Authorization Requirements

As per Gate Gourmet authorization Matrix.

Document Change Control :

Doc Control Number Marlabs_GG_US_SAP_L2_KT_MM_ORG

28. Requirements / Expectations

The Enterprise structure of Gate Gourmet US is explained in this document.

29. General Explanations

Gate Gourmets Case:

An organizational unit that serving to subdivide an enterprise according to production, procurement,

Gate Gourmets Case:

Plant is the Valuation Area.

The organization elements pertaining to Procurement is Purchase Organisation.

Vendor Evaluation also happens based on the purchasing organization.