MM Process Flow The typical procurement cycle for a service or material consists of the following phases: 1.

Determination of Requirements Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) 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 past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired. 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 adopts information from the requisition and thequotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported. 5. Purchase Order Follow-Up The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders. 6. Goods Receiving and Inventory Management 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 The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the systemhas access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment Hi The dataflow as functional process below are the points: 1) Purchasing Requsition -> sent by inventory dept to purcharsing dept 2) Request for Quotation(RFQ)-> Purchasing Dept shall ask the vendors to give the quotation for the requested materials by inventory. 3) Quotation -> Quotation is sent by vendors to the company 4) Purchase order-> Based on all paramers of a quotation sent by vendors. Vendors are selected from whom the material has to be obtained. The company gives purchase order to the vendor. 5) Good's receipt -> vendors sends the goods to the company with goods receipt 6) Invoice verification -> this done based on good's receipt. this means that the ordered goods have reached or not. 7) Payment -> payment is done based on invoice verification. this is (FI/CO) Full MM Transaction Codes Flow:

RFQ to Vendor - ME41 Raising Quotation - ME47 Comparison of Price - ME49 Creation of PO - ME21N Goods Receipt - MIGO Invoice (Bill PAssing) - MIRO Goods Issue - MB1A Physical Inventory - MI01( Create doc) MI04 (Enter Count) MI07 (Post)

MI21 Print Physical Inventory Document

MI04 Enter Count MI05 Change Count MI11 Recount MI07 Post Differences MI20 Differences List MM Reports Materials Management: Master Data Reports Master Data MM03 Display Material Master MK03 Display Vendor Purchasing MK04 Purchasing Vendor Changes XK03 Display Vendor Central XK04 Central Vendor Changes ME1L Info Records by Vendor ME1M Info Records by Material ME1P Purchase Order Price History ME1E Quotation Price History ME13 Display Info Record ME14 Display Info Record Changes ME03 Display Source List ME04 Display Source List Changes MEQ3 Display Quota Arrangement MEQ4 Display Quota Arrangement Changes MKVZ Display Purchasing Vendor List MKVG Display Vendor Condition Groups MSC3N Display Batch MEKA Display Purchasing Conditions

MN03 Display Message Condition RFQ MN06 Display Message Condition Purchase Order MN09 Display Message Condition Scheduling Ag. MN12 Display Message Condition Delivery Sched. MM60 Display Materials List Materials Management: Procurement and Stock Reports Logistics Information Reports (Stock) MCBA Plant MCBC Storage Location MCBE Material MCBR Batches MC.9 Material Stock MC.A Material Receipts / Issues MC.B Inventory Turnover Material MC.1 Plant Stock MC.2 Plant Receipts / Issues MC.3 Plant Inventory Turnover MC.5 Stock Storage Location MC.6 Storage Location Receipts / Issues MC.7 Storage Location Inventory Turnover Purchasing Information System MCE1 Purchase Group Analysis MCE3 Vendor Analysis MCE5 Material Groups Analysis MCE7 Material Analysis MC$G Material Purchasing Values MC$I

Material Purchasing Quantities MC$O Material Frequencies MC$4 Vendor Purchasing Values MC$6 Vendor Purchasing Quantities MC$: Vendor Frequencies MC$0 Purchasing Group Values MC$2 Purchasing Group Frequencies MC$< Material Group Purchasing Values MC$> Material Group Purchasing Quantities MC$E Material Group Frequencies Purchasing Reports ME80FN General Analysis of Purchasing Documents ME81N Analysis of Order Values ME23N Display Purchase Order ME53N Display Purchase Requisition ME5A List Display Of Requistions ME33L Display Scheduling Agreement ME39 Display Delivery Schedule ME43 Display RFQ ME4L List RFQ by Vendor ME4M List RFQ by Material ME4S List RFQ by Collective Number ME48 Display Quotation ME2L Purchasing Documents per Vendor ME2M Purchasing Documents per Material ME2K Purchasing Documents by Account

Assignment ME2W Purchasing Document by Supplying Plant ME2V Expected Goods Receipts MD13 Display Planned Order Single MD16 Display Planned Order Collective Invoice Reports MB5S List of GR/IR balances MIR6 Invoice Overview MIR4 Display Invoice MIR5 Display Invoice List Stock Reports MMBE Stock Overview MB51 Material Document List MB03 Display Material Document MB54 Vendor consignment stocks CO09 Material Availability MB5C Batch Where Used Pick Up List Physical Inventory Reports MI22 Physical Inventory Document material MI23 Physical Inventory Data material MIDO Physical Inventory Overview MI03 Display Physical Inventory Document MI06 Display Count Document MRP Reorder Point MD21 Display Planning File Entries MDRE Planning File Entries Consistency Report MD04 Stock Requirements List MD05 MRP List Material Display

MD06 MRP List Collective Display MD07 Stock Requirements List Collective