Material Master

Q: How can I extend all material to a new plant?

A: The SAP program - RMDATIND is used to create /update material master
record.

Q: How can we delete materials permanently from Material master?

A: Use transaction MM70 - Material Master->Other->Reorganization-
>Material->Choose.
Build variant with selection range of material master records to be selected
for deletion and maintain run parameters. Execute.
Use transaction MM71 - Material Master-> other-> Reorganization-
>Material->Reorganization
Build a second variant
Maintain run parameters and execute.
It is also important to remove the records manually from info record, POs,
PRs, reservation etc for successful deletion of the material.

Q: SAP only provides moving average value for current, previous period, and
previous year. SAP does not provide transactions/reports that will provide
moving average value for a given date.
How can I report moving average price for material number 10000000 at
plant 0001 on July 4, 1998.
A: Try any of these solutions:
1. Change the updating level of the structure (S031) to "daily". In LIS the
total value and the total stock are available. Divide value by the stock. It is
possible to calculate this dynamically when the analysis is run and to display
the result.
2. Create your own structure in LIS and populate it by copying the Moving
Average Price from the material master every time there is a transaction.
You will have data on those days when there was a transaction.

Q: We have defined all the variables for the materials. However, when I
attempt to use Material Matchcode object MAT1, I get the response "No
possible entries found". Why?
A: Matchcode i.d. "B", "Material by bill of material" has a selection condition
for field STLNR NE ' '. STLNR is the BOM number associated with a material
in table MAST. Hence the message - "no possible entries..." pops up if there
are no bills of materials associated with your material numbers. You get the
matchcodes as long as the material referred by you has BOM number
associated with it.

Q: The matchcode object selection is defaulted to matctcode ID "B". Iwould

like to change to M "Material by Description" What is the solution?
A: Press the pull down arrow on the material number field and matchcode
"B" is displayed, press F5 double-click matchcode i.d. "M", then press F6 .
This will set matchcode "M" as the default.

Q: We have one material master : X and the unit of measure is 'pcs' and two
serial number : A,B
For this material we make two Pos
First PO calls material X , 1 pcs price 100 (will use serial number A)
Second PO calls material X , 1 pcs price 250 (will use serial number B)
Goods Receipt is done and by filling serial number for the fist PO with A and
the second PO with B.
We want to transfer material X serial number A to another plant and want
the valuation of this material as 100. How we can do it ?
A: Use "split valuation". Stocks may be received into separate storage
locations. Transfer stocks may be done from a storage location/plant to
another storage location/plant.

Q: We want to change the calculation of Moving Average Price. We know

that the same is in MBEW-VERPR and two transactions to consider - MRHR,
MB01. Is there a transaction to change MAV or all the places it is needed?
A: Any Goods receipt or issue (in case of split valuated material) changes
Moving Average price depending upon the valuation type which is used when
posting the goods issue. You have to go through all the transactions
involving those!
For Example:
Material X is using split valuation by origin:
Malaysia : MAV 60 USD - total stock 100 units
India: MAV 50 USD - total stock 200 units
Total stock 300 units MAV 53.33
Here , goods issues will also affect the global MAV, despite not changing
MAV from origin country.

Q: What is the use of configurable material.?

A: Configurable material is useful if you have a large number of combination
of parts that go into a product. It means different permutations and
combinations of the parts for same material. If you maintain a unique
material code for each combination , you require a large number of material
numbers. KMAT may be used in such a case where you maintain just one
generic product code. A super BOM is maintained for such a material
consisting of all possible alternatives. A routing is also maintained consisting
of all possible operations that could be used. Typically configurable material
is used in Made To Order (MTO) environment. However frequently ordered
configurations may be planned with a material variant which needs to have a
material master record. Thus Material variants may have stock and value.
Depending upon characteristic values chosen at sales order entry Sales
Order BOM is created. Routing operations are also chosen depending upon
which BOM components are assigned to them.

Q: Will Source List automatically appear in Material Master as default if

maintained at plant level using OME5?

A1: If you have maintained source list requirement in OME5 and have not
maintained the source list for the material , Po can not be released. You are
required to maintain source list for all materials in the plant where the
indicator is set if you maintain source list at plant level. Else you can make
use of info record to do so automatically.

Q: We have One company with a plant and another company with a sales
organization. Which is better option between these - PO or Stock Transfer
Order ?

A: Cross company Stock Transport Orders can be done.

# Configure using transaction OMGN.
# Depending upon the sending and receiving plants, maintain sales
organization and customer data in customizing.
# Maintain the supplying plant as a vendor and attach the plant to the
vendor in the Vendor Master.
# Material type has to be HALB or HAWA.
# Ensure that the company with sales Organization has a plant to take care
of stocking.
# The PO used is NB and not Stock Transfer PO.
Configure SD for inter-company billing to enable picking up the pricing
procedure for billing.
# Carry Out delivery through process delivery due list and billing through
process billing due list.

Q: We can make field mandatory. We want to make a default value to a

Particular field in the Material Master. Say, We want that the period indicator
in the MRP2 view as "P". What is the best way?
A: Use transaction variant. Transaction SHD0 and then Transaction SE93.

Purchasing

Q: How can we track requisitions that have the deletion indicator set? Can
we track the date in which the deletion indicator was set?
A: You can refer the change document tables cdpos and cdhdr. You can also
refer Transaction ME53 under menu path goto-statistics-changes, where the
complete audit trails of changes, including deletion are stored.

Q: Is it possible to generate Purchase requisition (PR) with reference to

Scheduling Agreement?
A: PR can be created with reference to another PR and can not be created
referencing a PO or Scheduling agreements. PO & Scheduling are created
and controlled by purchasing organizations. PR can be created by even end
users. For creating PR with reference to another PR, follow the menu path:
Purchasing->Requisition->Create.
Requisition->Copy reference and enter.
However requirement can be generated with reference to Scheduling
agreement when MRP is run. For this to happen, source list has to be
maintained for that item-vendor combination and the MRP shall be properly
set.

Q: Where can I locate the latest Purchase Order price and the latest
purchase order number for a material?
A: Logistics-Material Management-Purchasing-Master data-Info record-List
display-Order Price History

Q: Automatic generation of PO is by using 'Automatic Via Purchase

Requisition' option in purchasing- Requisition-Follow on Functions- Create
PO. However PO can not be created automatically after MRP run. Is there a
provision in SAP to release Purchase Orders automatically after MRP run?
A: Tick the automatic PO and Source List fields in purchase view of the
material master for the vendors on whom you would like to release PO
automatically. Create a purchase info record. Create source list. In the last
column in the details screen of the source list check the field relevant for
MRP set the correct parameters for running MRP. But PO can not be created
automatically after MRP run.
The automatic PO creation flag enables you to run a batch job that will
convert all selected Purchase Requisitions to be converted Purchase Orders
in the background.
You may consider scheduling agreements if you want MRP to kick out
Purchase Orders. Set the flag in the source list for the scheduling agreement
to "2" enabling MRP to kick out delivery schedules for future requirements. If
you want to fix the schedule within a certain period you have two options.
1. Using firm zone - firms all orders within this period . Refer additional data
screen of the scheduling agreement at the vendor material level.
2. Planning time - all new orders outside of the planning time fence - refer
MRP 1 view of the material master
Q: I would like Convert MRP generated 100 PRs into 100 POs automatically.
Not one by one manually. Is it possible?
A: Use transaction ME59

Q: How can I print an Un-invoiced Receipts Report which shows Purchase

Orders for which goods are received , but not yet invoiced ? We require this
report with sub-totals and tied to Un-invoiced Receipts G/L Account
A: Report RM07MSAL analyses GR/IR balances according to goods received
but not invoiced and invoices received where good have not been fully
delivered.

Q: How can I calculate the net price of an inforecord for a given date?
A: Run price simulation in the LIS-Purchasing on the Vendor-info record and
Specify the required date. (Transaction code is : MEIL)

Q: Can we release a Purchase Order with price equals zero? ( like in SD- free
of charge sales Order)
A: Create the PO with IR field un-ticked in Item Detail screen and change
the line item price to 0.

Q: The net price is calculated by summing up the gross price condition type
and subtracting /adding all discount/surcharge type condition types
respectively. Any condition type which is not marked as statistical will be
considered for net price calculation. We have a surcharge that is not marked
as statistical and should be included in the net price but excluded in the
taxation base value. Can I have a procedure where the taxes are calculated
on the net price calculated till the condition type NAVS and then have this
additional surcharge type?
A: Create Pricing Schema with all condition not marked in Statistical column
if you need all condition Record to be calculated.
For Example :

Level CondTy Description From To

100 PB00 Gross Price

200 RA01 Discount % on Gross
300 ZMUP Mark Up (value)
400 Base Value for Tax 100 300
500 ZDIS Disc. Excluded Tax
600 Net Amount
700 MST Tax 400 400
800 Net Amount
With this Schema:
- Net Amount will be calculated from PB00, RA01, ZMUP, ZDIS.
- Tax will be calculated from PB00, RA01, ZMUP.
Total amount will be calculated from net amount and Tax. So, ZDIS will
included in Net Amount and excluded for Tax.

Q: Can we change the name of the Vendor in a PO released on another

Vendor?
A: NO. You may create another PO on the vendor required by referencing
any PO.

Q: We want to return unused material procured from a vendor and update

stock or expense Account. How to do this effectively?
A: 1. Use movement type - 122 to reverse receipt and reopen purchase
order. This can be done if you can identify the PO against which the material
was received. And also credit shall be same as PO Price
2. Special movement type has to be setup if the PO is not known. The price
may have to be negotiated with vendor.

Q: How do I define a new currency ? How can i set number of decimal places
more than two?
A: Define a new currency in Customizing with transaction OY03
If you change the current currency all of your accounting documents will be
re-evaluated by R3 and this could cause adverse affects to your financials.
Use transaction
OY04 to assign number of digits to new currency
OBBS to define conversion factors for currency conversion
OB08 to enter exchange rates
XK02 to assign new currency to Vendor Master
ME11 to create a Purchase Info record
Create MM documents with the new extended price.
However you notice that accounting documents will still reflect the 2 digit
price and rounded to the nearest 1/100th.

Q: Our supplier delivers his product for an Auction. We sell it in auction and
pay the supplier. What is the best way to handle this?
A: You can try consignment process. In this process, Vendor holds the goods
until they are sold. The price to the supplier can be reset when the goods
are sold in settle consignment liabilities.

Q: How can I open a previous MM period?

A: Transaction - MMPV
Menu path - Logistics->Materials Management->MaterialMaster->Other->
Close Period
Q: We can make a particular indicator mandatory. Can I have a defaulted
value for the indicator while creating Material master that can be changed later
in MM02?
A: Try using transaction variant, transaction code SHDO. And then SE93. In
SE93 choose the option of variant transaction

Q: How can I generate a report of cancelled PO?

A1: Use a Query with table EKKO whose field LOEKZ is the deletion
indicator.

A2: Go to the initial screen of purchasing. Then go to PURCHASING -> LIST

DISPLAYS -> BY PO NUMBER -> EDIT -> DYNAMIC SELECTION. This allows
you to select certain fields from the EKKO table and EKPO table. Deletion
indicator can also be seen here. Use 'dynamic selections' to determine your
selection criteria and run the report.

A3: You can also do this via the IMG

Go to Transaction OMEM or Menu path - MM -> Purchasing -> Reporting ->
Maintain Purchasing Lists
Click on Scope of List Create New entry.
Check on Change Documents field. Name the new Scope with relevant
name. This will now appear in Scope of List field in all Purchasing List Display
screens. The output will show the details of the changes like date and time
of change, old value, new value etc.

Q: How can we detect a change in a Purchase Order?

A: For Header level changes: Go to Header -> Statistics -> Changes
For Item level changes: Go To Item-> Statistics -> Changes

Q: We want to pop-up a screen to show the total value of PO before saving

the PO so that user can decide whether to save the PO or discard it. What is
the best way ?
A: Try using EXIT_SAPLEINS_001. It is entered during the saving operation
of a PO. You can review the PO, present a popup dialog using one of the
POPUP_* functions enabling the user to decide either to save or abort the
PO.

Q: PO item text is being adopted from the Material master. The text has got
adopted status and is not stored in the text ID tables STXH and STXL. Hence
print program is not able to print these texts. How can we solve this?
A: Purchase order texts can be adopted from Info record or material master.
All the texts finally gets stored in table STXH with different text application
objects. Incase of PO header text it is EKKO and PO Item text it is EKPO.
Even if the texts are adopted from either of these, there is a possibility that
it can be altered at PO level. Here it will get stored with object EKKO or
EKPO.
There is no need to store this at PO level if there is no change made to the
text at PO level,.
Try these: Check for texts in EKKO or EKPO ( depending on header or item
level)
If no text gets returned back check in object EINA for info record or
MATERIAL for material master long text.( table is same i.e. STXH)

Q: While creating a purchase order we can see that there is the "Info rec.
update" in the box item detail screen. How can we change the default setting
for this box?
A: In MM Purchasing configuration (use Transaction code: OMFI), you can
assign the default value of info records update for buyers then assign it
through parameter ID EVO (check the configuration documentation)

Vendor Evaluation

Q: I want to have multiple addresses of a vendor - for ex: mailing, shipping,

payment remittance, several billing addresses, etc. Suppose we have 25
addresses for one company, what is the best way without creating 25
separate companies and their addresses?
A: You can solve this problem by using Partner functions. Using Transaction
WOLP, Partner roles and partner schemas at vendor level and purchasing
Document level can be defined. Create as many vendor numbers as required
(say 25 -in this case) and assigning to the respective partner roles.

Q: The source list is created for a material ie. source list required is marked.
When a PO is created a different vendor can still be selected and even if 'fix'
indicator in source list is marked, system only shows warning msg. How can
we fix a purchase order to only a fixed vendor for a material ?
A1: Try changing the warning message into an error message. Note the
message number. Then use menu
OLME -> Environment-> system message.
A2: Tick the indicator "Source List" in the material master (purchasing view)
By ticking this, the procurement would be only possible from sources
specified in the source list. You may also think of making the field
mandatory in the material master.

Q: We want the Vendor code as 'abc1234' where first 3 characters are alpha
and the last four digits are digits serial numbers. What is the solution?
A: Use an user exit. With this user exit, you can check but can not force the
user to enter the value correctly.

Q: We want to set up a Preferred Vendor list to enable users to determine

the Vendor to be called for the material required while raising the
Requisition. What is the best way?
A: Use Transaction ME01 to Maintain Source List. At the preferred vendor,
click the Fix check box. By this preferred vendor is automatically assigned
whenever 'Follow on function' is called for your PR (Create PO).

Q: What is the SAP standard way for deleting all the vendors centrally from
the system?
A: 1. Mark vendors for deletion: XK062.
2. Run SAPF047 which creates an entry in an internal SAP table which is
used later
3. Run SAPF058. Check "General Master record" and "MM Data" boxes on,
"Test Run " off. Enter Purchase Organizations.
4. Run SAPF058. Check "General Master record" and "FI Data" boxes on,
"Test Run " off. Enter Purchase Organizations. ABAP programmer can create
an ABAP program to do it.

Inventory Management

Q: How can we create one inventory doc with all your materials to count
instead of generating one doc for each material?
A1: You can carry out transaction MI01 - by referencing your plant &
storage location. You can then enter as many inventory materials as you
want.

A2: Set maximum number of items to say 50 using Transaction MICN. The
same can be preset using transaction OMCN.

Q: How is GR/IR account related to Inventory?

A: If you are involved with inventory, then you need the GR/IR account
(Inventory Account) when the IR is posted.
If you are not involved about inventory, then the system does not need the
GR/IR account when the IR is posted, the system needs a G/L instead of the
GR/IR account.

Q: We tried RMCB0300 to find out logical value for stock item by date. But
after re-valuation, stock value is supported by month instead of date. How
can we find the logical value for stock item by date?
A: Use Transaction MC49
Menu path :
1. Information systems -> Logistics -> Inventory management->Material ->
Document Evaluations -> Stock value -> Mean inventory or
2. Logistics -> Logistics controlling -> Inventory Controlling Environment ->
Document evaluations -> Stock value -> Mean Stock Value.

Q: How can we transfer stock from one vendor to another vendor?

A: DO 542 and then 541 to the new vendor.

Invoice verification

Q: How can I cancel a posted invoice? The error message 'BSEG-GSBER is

not an input field' is appearing. Even OSS note -94932 did not help.
A: The error is due to suppression of Business area field in the field status
group. Due to this, while reversing the document, the system finds this field
is suppressed and hence does not proceed further.
Locate the field status group for the recco account entered in the vendor
master and the relevant field status variant.
In IMG, go to FI Global settings-Documents- Line items-Control-Maintain
field status variant.
Here for the relevant field status variant and the field status group you may
find the business area field has been suppressed.

Ware House

Q: A storage location from different plant can be assigned to the warehouse

of any Plant. But different storage location within the same plant cannot be
assigned to the same warehouse number. Why ?
A: Different storage locations from different plants can be assigned to the
same warehouse. But different storage locations within the same plant can
not be assigned to the same warehouse number. These storage locations
may be defined as storage types or storage sections.

Q: We are using only fixed bins and do not want to use automatic bin
creation nor any strategy for removing/loading goods to the storage? In
what way Ware Housing helps me?
A: You may go for Ware House module if,

you have materials in more than one bin

 you manage several different types of storage (high rack, block ...)-
you need a very flexible control for printouts

Consumption Based Planning

Q: We have a lot size procedure here which is creating more order

proposals. How do you set the limit value for maximum number of MRP
order proposals per date in IMG?
A: Under customization, play around with materials
management/consumption based planning/maintain all plants

Q: What is the difference between "planned consumption" and "Unplanned

consumption"? Can safety stock calculation be done on either of these?
A: While customizing movement types (OMJJ) it is defined as to which set of
consumption values gets posted during the material movement. For some it
may always be the total consumption and for some it is always the
unplanned one and for some it is dependent on whether the issues were
done with reference to a reservation ie., a planned consumption. The way
these consumption values are taken into account in MRP is defined in the
customizing of MRP types.
For Reorder point planning (VM) the total consumption is used to calculate
the safety stock and the reorder point.
For Forecast based planning (VV) the total consumption is used to build the
forecast which will be used to compile the order proposals.
For Deterministic MRP (PD) the unplanned consumption is used to calculate
the forecast which in turn is added to the actual demand.

Q: We are trying to use reservations to block our existing un-restricted plant

stock against a Sales Order Line Item. But the reservation is included in the
Planning file when MRP is run.. We want to disable the reservation in MRP.
How can I do this?
A: Use transaction OPPI.
Menu path : Customizing->Production->MRP->Planning->MRP Calculations-
>Stock->Define Availability
Check "block Stock"

Q: We do not want to convert Planned orders to requisitions in our MRP run

and keep some materials in the step of planned orders. Can we do this?
A: Check the indicator in transaction 'OPPR'. Assign the indicator specifying
planned orders only.
Other

Q: We could create two Purchase Orders for full amount & quantity out of
one Purchase Requisition. two goods receipts and invoice receipts on their
respective POs. How can We avoid this kind of double transactions?
A:
For PO's:
Define buyers' functional authorizations in the customizing for purchasing,
there you can unmark PO w/o reference allowed. Buyer's functional
authorization , say 'abc' can be created using transaction code OMET. Assign
this 'abc' to a particular user by using parameter ID "EFB" (trans su52).
For GR and IR:
Make the warning message as an error in customizing of messages under
Inventory Management or Invoice Verification, respectively.
For IR:
Mark the indicator in the vendor master for checking of double invoices.

Q: Is there a transaction or Report available to see the scrapped quantity of

a particular material where goods issue is done using movement type 551?
A: If you want to manage the inventory of Scrap, create another material ID
for scrap and receive as by-product. When you issue goods against
Movement type 551, the material is removed from inventory by writing it off
the books.

Q: We want to run multi-plant planning for 3 plants A, B and C , where the

requirements of plant A and B are transferred to Plant C. Plant C is expected
to consolidate the requirement and convert these requirements into
requisitions and then into POs. When we do a planning at Plant C, we are
unable to see the requirements for plant A and plant B. We are using the
special procurement key 40 for all the materials being planned. Can we do
multi plant planning at plant level as well as Material level?
A: The special procurement key is defined for the Planning plant and does
not contain supplying plant. This key may be copied to create new key. Then
enter the supplying plant in it. Use this key in material master. Now all the
requirements of plant A and B will be called in planning plant C.

Q: We are doing goods receipt with PO. How can we find whether there is
any USER EXIT available which is triggered before the document is saved?
A: The User exit in your case could be MB_CF001 and use transaction SMOD
to look for user exits
Q: In MM pricing schema, there are a list of selection from A to M and 1 to 8.
How can we make use of the condition sub-total field ?
A: Subtotal field on Pricing schema are useful in number of cases.
# For Ex: 1 is Carry over value to KOMP-KZWI1.
# 7 is used for deciding on the basis for which to calculate Rebate
subsequent settlement.
# S is used for the final net inclusive, cash discount, rebates and any other
conditions including statistical
# For reporting in LIS
# Used in the layout for printing.

Q: There are some complaints that though the data is correct in User Info
(USR03) , Purchase order is being printed with wrong information . For
Example: telephone Number. Where can I find correct Purchase group
Information?
A: Purchase group information is in table T024.

Q: What are the tables generally used for MM Queries ?

A: Some tables are listed below . However a host of others can be seen
using Technical help after activating the query

Purchasing Tables Purchase Requisitions CEBAN

Purchase Order EKPO

Material Master Description MAKT

Material master MARA

Material master - MARC

segment C
MAST
Material to BOM Link
MBEW
Material Valuation

BOM Tables BOM Header STKO

BOM item STPO

BOM Sub-item STPU

Purchase Group T024

information

MRP Tables MRP Header MDKP

MRP Table MDTB

Q: What are the typical transaction codes for IM & PO?

A: Transaction codes can be checked using menu path System->Service-
>Status.
IM transaction codes start with MBxx.
PO transaction codes start with Mexx.

Q: During a good issue for a inventory product (HIBE), we assign by the

automatic account assignment a GL account in relation to the valuation class
of the product. However we would like to change this GL account
automatically depending of the cost center requested the product for
consumption. How can we do it?
A: Try OKB9 where you can find the cost center account assignment table.
However this GL account becomes defaulted for all the products used by the
cost center.
Note that GBB/VBR process key governs the credit posting for cost center
issues in Automatic Account Assignment (AAA) .
If you want change Account assignment for exception materials , try the
following options:
1.For all exception materials define a new valuation class and setup all
inventory posting accounts for this exception valuation class. Here the AAA
automatically picks up the G/L a/c.
2.In the inventory screen allow the user to enter G/L a/c manually .
Configure the IMG in inventory so that user account overrides the AAA
determined account
3. Define a new movement type by copying 201 to say 901. Then in
Valuation IMG define a transaction key for 901 under account grouping for
movement. types. Define G/L accounts for this new transaction key. For
exception issues users have to use this new movement type.

Q: We have specified in MRP for requisitions to be created. The document

type of the requisitions created is always the type NB. How can we change
the document type created?
A: Refer transaction 'OMH5'. Define the document type required that you
want in ME51.

Q: We have created a workflow for the purchase requisition approval process

. When the event (BUS2009, RELEASESTEPCREATED) is triggered to kick off
WF , the following error message is appearing
Work item XXXXXX: Linkage to object BUS2009 event REJECTED cannot be
written.
Diagnosis: The instance linkage between the required event and the
specified work item cannot be entered in the type linkage table of the event
manager.
The reason is either a database error or an error when generating internal
linkage numbers.
What to do: Check the number range object 'SWE_EVTID' How can this be
fixed?

A:

1. Must update the number range for events object SWE_EVTID with
transaction SNRO.
Ex: SWE_EVTID: 01 000000000001 999999999999.
2. SWE2, double click on BUS2009 entries, check GLOBAL field, ENABLE field
will be updated
3. Error when executing the Workflow. Transaction code SWLE not defined.
Apply OSS note 43986 to fix.

Q: How can we make a Taxcode as default on purchase order item detail

screen ?
A1: Use condition type NAVS with access sequence 0003 to default the
taxcode in the purchase order item using conditions.
A2: Go to IMG.
Materials Management -> Purchasing -> Purchasing order processing -
>define screen layout at document level.
Search for the transaction ME21.Double click on ME21. Then search for
TaxCode. It is advisable to configure also the info record. The tax code
should be a required entry, and whatever you specify here will be the default
value in the Purchase order.
Materials Management -> Purchasing -> Purchasing info record -> define
screen layout.
When you get here you search for the transaction ME12 ,double click here;
search for Input VAT indicator.

Q: We have defined EA (each) as 0 decimal place in configuration. But

transaction ME2L shows this field with three decimal places. How can I
change to actual number of decimal places?
A: The quantity (MENGE) in that report must have been set for 3 decimal
places. Table EKPO may have to be corrected accordingly.

Q: We have created a new movement type and assigned to a schedule line.

When goods issue is posted, message - movement type zzz is not allowed
for customer goods movement? Why?
A: Use transaction code OMJJ and check the "Allowed Transactions" for
customizing movement types.

Q: Is it possible to generate packing list for goods issued in MM?

A: SD & Ware House management have the functionality of picking/Packing
lists.

Work Flow

Q: The following is set up for workflow:

1. Workflow organization Structure with 2 positions is created and

assigned a person to both positions
2. Assign tasks to agent

TS 00007986 Requisition release - TO JOBS

TS 00008014 Purchase requisition release refused - GENERAL
TS 00008018 Requisition released - GENERAL
TS 00008348 Requisition release reset - GENERAL
WS 00000038 Workflow for purchase requisition release - TO JOBS
3.Activate event linkage
WS 00000038 Workflow for purchase requisition release
WE BUS2009 RELEASESTEPCREATE Purchase
requisition Release step create is activated
4.Activated release codes for workflow
[1= Role resolution with group, code, and plant (T16FW)]
5.Assigned release codes to agent (JOBS created in 1)
The following error appears
"Work item 60772: Linkage to object BUS2009 event REJECTED cannot be
written ".

A: Use transaction SWE2. Make sure "object BUS2009 event REJECTED" is

enabled
Although we have the ability to monitor and correct orders during the transaction, as
an organization we needed access to information that would allow us to evaluate our
overall costs and compare them with all 13 of our acute care hospitals.

This information enables us to analyze expenses by product categories as well as the

performance of various departments.

To achieve this, we needed to ensure that we were consistent in how we categorized

supply expenses across the entire organization and how those expenses are mapped to
the general ledger (G/L).

The United Nations Standard Products and Services Code (UNSPSC) can be used to
properly place products into such correct expense categories as orthopedic implants or
wound care products.

The UNSPSC categorizes products according to a four-level hierarchical structure:

segment, family, class and commodity. Here are a few examples:

42000000Medical equipment and accessories and supplies (segment)

42290000Surgical products (family)
42295500Surgical implants and expanders and extenders and surgical wires
and related products (class)
42295507Orthopedic implants (commodity)

We determine which level to use for financial reporting based on the overall expense.
For example, we use a lower (more detailed) level for orthopedic implants but a
higher level for medical tissue closure and related products to focus attention on areas
that have the greatest impact on supply expense.

BJC made the decision, based on overall spend, to focus only on products or product
areas that contribute more than $2 million in annual expenses.

Once again, this enables us to concentrate our efforts on those areas that can yield the
greatest benefit.

Categorizing supply expenses also requires that product descriptions be consistent

across the organization to assign the correct UNSPSC code.

In this process, we found that both purchasing managers and clinicians were not
satisfied with the descriptions. To address this issue, we employed the exchange
company to help normalize product descriptions and provide UNSPSC coding.
Before loading a new item or contract into the systems, the data is sent to the
exchange, and it sends back a standardized description and UNSPSC code.

This information ties the UNSPSC codes to G/L codes in a more consistent manner.
Not only did using an outside source get us out of the description and coding business,
which is not our core competency, but also enabled us to run reports that facilitate
better decision-making.

BJC HealthCare also has built interfaces that enable us to link the information,
including UNSPSC codes, descriptions and contract data, in our materials system with
our inventory, operating room and patient charging systems.

As mentioned earlier, the criteria used to run reports and the technology employed
will vary by institution.

At BJC, we chose the specific criteria for reporting and whether or not to build or use
existing technology based on our specific needs and existing IT capabilities.

Rather than implementing an entirely new ERP system, we instead chose to use
technology provided by GHX and such others as Infor for purchasing, accounts
payable and inventory management, to extend the capabilities of our existing
mainframe system.

Based on your current situation and technological capabilities, you may choose
another route.

The key is to prioritize initiatives, develop metrics to track performance, establish

goals and milestones, and continually monitor progress.

Because health care spending patterns are dynamic, we needed to be able to quickly
identify and evaluate the impact of changes in purchasing and expenses.

Contract prioritization reports are run periodically to ensure we are loading the most
important contracts into our systems first. For example, a contract for a cardiac stent
will have more impact on the bottom line than a contract for tissue closure products.
Understanding where we are incurring the greatest expense and ensuring we are
negotiating and using contract pricing for those products has yielded the greatest
savings.

Efforts to control what we spend, particularly for physician preference items, is an

ongoing process, but to date, we have achieved the following:
 Applied standardized descriptions and consistent G/L coding for 75 percent of
products purchased
Reduced free form orders from 60 percent of total purchase order dollars spent
to less than 25 percent
Reduced price exceptions by 70 percent between 2003 and 2006
Reduced time required to fix pricing problems by one-third
Reduced the time to submit a requisition by one-third
Reduced the time required to add a new item and make it available to all
downstream systems by 20 percent.

Most importantly, the amount of time required to load contract information into the
applicable systems has been reduced.

By enabling our contract managers to add more contracts, there has been a three-fold
increase in savings achieved through better contract negotiations.

Now instead of just projecting the savings potential of a new contract, we are able to
document actual savings. Suppliers benefit, too, by gaining better contract
compliance.

The basic data elements required for efficient supply chain transactions hasnt
changed in decadesyou need the right product, vendor and pricing information.

Unfortunately, when it comes to specific purchases, the data is continually changing.

The key to effectively managing supply chain processes and expenses requires
technology to ensure that you have access to the most accurate and up-to-date
information.

Most providers, large or small, for profit or not-for-profit, spend approximately 22

percent to 30 percent of their operational budgets on supplies alone.

When it comes to interventional cardiology, orthopedics and spinal procedures, supply

costs can represent 70 percent or more of the total cost of care compared with 30
percent for nonsurgical cases.

Clearly, the most beneficial supply chain initiatives are those that enable both
caregivers and managers to use relevant, fact-based information related to the use and
costs associated with physician preference items.
With hospitals under increasing financial pressures, especially related to the rising
costs of pharmaceuticals and new medical technology, we cannot afford to miss out
on the advantages afforded by contract pricing.

To effectively control your spend, you must first evaluate your current position in
terms of technology and access to accurate data.

Determine where gaps exist in both areas and take steps, either on your own or with
the help of outside supply chain partners, to address those deficiencies. Then, evaluate
your spend, determine the areas that will have the greatest impact on the bottom line
and set a strategy.

Working with suppliers, your GPO and technology vendors, you can make changes to
ensure that you can continue to deliver exceptional patient care without compromising
the fiscal health of your organization.

You wish to procure a material using a purchase order. You wish to take delivery of the material at
different times. A graduated discount scale exists for the material. How do you proceed if you wish to
take advantage of the discount arrangement?

Answers:

A) Enter several order items with the same material number and different delivery dates.
B) Enter one order item with the material number and assign the material to different accounts.
C) Enter an order item with the material number and create a number of schedule lines.
D) Enter a number of purchase orders for the material and specify different delivery dates.
Although we have the ability to monitor and correct orders during the transaction, as
an organization we needed access to information that would allow us to evaluate our
overall costs and compare them with all 13 of our acute care hospitals.

This information enables us to analyze expenses by product categories as well as the

performance of various departments.

To achieve this, we needed to ensure that we were consistent in how we categorized

supply expenses across the entire organization and how those expenses are mapped to
the general ledger (G/L).

The United Nations Standard Products and Services Code (UNSPSC) can be used to
properly place products into such correct expense categories as orthopedic implants or
wound care products.

The UNSPSC categorizes products according to a four-level hierarchical structure:

segment, family, class and commodity. Here are a few examples:

42000000Medical equipment and accessories and supplies (segment)

42290000Surgical products (family)
42295500Surgical implants and expanders and extenders and surgical wires
and related products (class)
42295507Orthopedic implants (commodity)

We determine which level to use for financial reporting based on the overall expense.
For example, we use a lower (more detailed) level for orthopedic implants but a
higher level for medical tissue closure and related products to focus attention on areas
that have the greatest impact on supply expense.

BJC made the decision, based on overall spend, to focus only on products or product
areas that contribute more than $2 million in annual expenses.

Once again, this enables us to concentrate our efforts on those areas that can yield the
greatest benefit.

Categorizing supply expenses also requires that product descriptions be consistent

across the organization to assign the correct UNSPSC code.

In this process, we found that both purchasing managers and clinicians were not
satisfied with the descriptions. To address this issue, we employed the exchange
company to help normalize product descriptions and provide UNSPSC coding.
Before loading a new item or contract into the systems, the data is sent to the
exchange, and it sends back a standardized description and UNSPSC code.

This information ties the UNSPSC codes to G/L codes in a more consistent manner.
Not only did using an outside source get us out of the description and coding business,
which is not our core competency, but also enabled us to run reports that facilitate
better decision-making.

BJC HealthCare also has built interfaces that enable us to link the information,
including UNSPSC codes, descriptions and contract data, in our materials system with
our inventory, operating room and patient charging systems.

As mentioned earlier, the criteria used to run reports and the technology employed
will vary by institution.

At BJC, we chose the specific criteria for reporting and whether or not to build or use
existing technology based on our specific needs and existing IT capabilities.

Rather than implementing an entirely new ERP system, we instead chose to use
technology provided by GHX and such others as Infor for purchasing, accounts
payable and inventory management, to extend the capabilities of our existing
mainframe system.

Based on your current situation and technological capabilities, you may choose
another route.

The key is to prioritize initiatives, develop metrics to track performance, establish

goals and milestones, and continually monitor progress.

Because health care spending patterns are dynamic, we needed to be able to quickly
identify and evaluate the impact of changes in purchasing and expenses.

Contract prioritization reports are run periodically to ensure we are loading the most
important contracts into our systems first. For example, a contract for a cardiac stent
will have more impact on the bottom line than a contract for tissue closure products.
Understanding where we are incurring the greatest expense and ensuring we are
negotiating and using contract pricing for those products has yielded the greatest
savings.

Efforts to control what we spend, particularly for physician preference items, is an

ongoing process, but to date, we have achieved the following:
 Applied standardized descriptions and consistent G/L coding for 75 percent of
products purchased
Reduced free form orders from 60 percent of total purchase order dollars spent
to less than 25 percent
Reduced price exceptions by 70 percent between 2003 and 2006
Reduced time required to fix pricing problems by one-third
Reduced the time to submit a requisition by one-third
Reduced the time required to add a new item and make it available to all
downstream systems by 20 percent.

Most importantly, the amount of time required to load contract information into the
applicable systems has been reduced.

By enabling our contract managers to add more contracts, there has been a three-fold
increase in savings achieved through better contract negotiations.

Now instead of just projecting the savings potential of a new contract, we are able to
document actual savings. Suppliers benefit, too, by gaining better contract
compliance.

The basic data elements required for efficient supply chain transactions hasnt
changed in decadesyou need the right product, vendor and pricing information.

Unfortunately, when it comes to specific purchases, the data is continually changing.

The key to effectively managing supply chain processes and expenses requires
technology to ensure that you have access to the most accurate and up-to-date
information.

Most providers, large or small, for profit or not-for-profit, spend approximately 22

percent to 30 percent of their operational budgets on supplies alone.

When it comes to interventional cardiology, orthopedics and spinal procedures, supply

costs can represent 70 percent or more of the total cost of care compared with 30
percent for nonsurgical cases.

Clearly, the most beneficial supply chain initiatives are those that enable both
caregivers and managers to use relevant, fact-based information related to the use and
costs associated with physician preference items.
With hospitals under increasing financial pressures, especially related to the rising
costs of pharmaceuticals and new medical technology, we cannot afford to miss out
on the advantages afforded by contract pricing.

To effectively control your spend, you must first evaluate your current position in
terms of technology and access to accurate data.

Determine where gaps exist in both areas and take steps, either on your own or with
the help of outside supply chain partners, to address those deficiencies. Then, evaluate
your spend, determine the areas that will have the greatest impact on the bottom line
and set a strategy.

Working with suppliers, your GPO and technology vendors, you can make changes to
ensure that you can continue to deliver exceptional patient care without compromising
the fiscal health of your organization.