Business Process Procedure

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Icon Meaning
Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field
names, screen titles, pushbuttons as well as menu names, paths and
options.
Cross-references to other documentation.
Example text Emphasized words or phrases in body text, titles of graphics and tables.
EXAMPLE TEXT Names of elements in the system. These include report names,
program names, transaction codes, table names, and individual key
words of a programming language, when surrounded by body text, for
example, SELECT and INCLUDE.
Example text Screen output. This includes file and directory names and their paths,
messages, source code, names of variables and parameters as well as
names of installation, upgrade and database tools.
EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the
ENTER key.

Example text Exact user entry. These are words or characters that you enter in the
system exactly as they appear in the documentation.
<Example text> Variable user entry. Pointed brackets indicate that you replace these
words and characters with appropriate entries.

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 Business Process Procedure

Abbreviations
R Required entry field
(used in the end-user procedures)
O Optional entry field
(used in the end-user procedures)
C Conditional field
(used in the end-user procedures)

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 Business Process Procedure

Contents

Sl No Description Page No

1 Purpose 4
2 Create Purchase Order 4
3 Release Purchase Order 5
4 Post Goods Receipt 6
5 Invoice Verification 7

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 Business Process Procedure

Procurement for Consumables

1. Purpose
 When you procure for direct consumption, you specify the consumption purpose by entering an
account assignment (for example, a cost center). On goods receipt, the material or service counts
as having been consumed. If a material is procured for direct consumption, the consumption
accounts in Financial Accounting are posted when the goods receipt is entered. The total quantity
and value of existing stocks of the material are not affected.
 The business process procedure walks you through the steps required to create a purchase order
for a consumable material from a vendor. Since the quantity and value of existing stock will not be
updated after goods receipt of consumables, the step for goods receipt is optional. Finally, invoice
verification is posted for the purchase order.

2. Create Purchase Order

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Purchasing  Purchase
Order  Create  Vendor/Supplying Plant Known
Transaction code ME21N

2. On the Create Purchase Order Screen, make the following entries:

Field Description R/ O/ C User action and values Comment
name
Vendor R 1000
Document R NBP BP Stan. PO-consum.
Type
Purchase PAP0
Org.
Purch. R PMG If you use this purchasing
Group group, the release strategy
will be triggered.
Company PAPL
Code
Button Enter
Item position 10
A Account K Cost Center
assignment
Short text R PEN Short description of the
consumable goods

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 Business Process Procedure

PO R 10
quantity
Order unit R EA Piece
Delivery O 15.07.2005
date
Net price R 10
Material R 01 Other ingredients
group
Plant R PM01
Button Enter
G/L On Account O If not defaulted
Account assignment Tab
No.
Cost R 1301
Center
Button Enter
Goods On Delivery Tab Check if the indicator is Do not tick the indictor, if no
Receipt ticked goods receipt is required
Item detail On Invoice Tab O if necessary

Button Check or Ctrl + Shift + F3

Button Save or Ctrl + S
Please note purchase order
number.

Handling of Warnings: If warnings appear, please follow the instructions you receive
after double clicking the red or yellow symbol in the item position line.
Verify the yellow warnings with Enter.
You can save the Purchase Order with yellow warnings. It is not possible to save with red
symbols.

3. Release Purchase Order

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Purchasing  Purchase
Order  Release  Collective Release
Transaction code ME28

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 Business Process Procedure

2. On the Release (Approve) Purchasing Document Screen, make the following

entries:
Field name Description R/ O/ C User action and values Comment
Release R MD
Code
Document O PO number from the above
number
Button Enter

3. On the Release Purchasing Documents with Release Code MD Screen, select the PO number.

4. Push Release + save Button, the system goes back to the previous screen with an information
message ‘Release saved’.

5. Repeat the above step 2 to step 4 for Release code 02.

Result
The purchase order is released (approved) for further purchasing processing.

4. Post Goods Receipt (Optional)

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Inventory Management
 Goods Movement  Goods Receipt  For Purchase Order
 GR for Purchase Order
Transaction code MIGO

2. On the Goods receipt Purchase order - <username> screen, make the following
entries:
Field name Description R/ O/ C User action and values Comment
Action O A01 Goods Receipt
Reference O Purchase Order
Document
Type
PO Number R PO Number from Above
Movement O 101
Type
Button Enter

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Delivery note O 25/10/10 Delivery Number

from Vendor

Close Header Data to enlarge the Detail data.

Item OK Bottom of page Select

Button Check or F7

Button Post Ctrl+S

5. Invoice Verification

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Logistics Invoice
Verification  Document Entry  Enter Invoice
Transaction code MIRO

2. On the Enter Company Code dialog box, make the following entries:
Field name Description R/ O/ C User action and values Comment
Company C
Code
Button Enter

3. On the Enter Incoming Invoice: Company Code PAPL screen, make the following entries:
Field name Description R/ O/ C User action and values Comment
Transaction O 1 Invoice
Invoice date O Today’s date
Post date R Today’s date If not defaulted
Tax code O
Amount R
Purchase R PO No from Above
Order/Sched
uling
Agreement
Baseline date On Payment tab R Two weeks from today
Button O Simulate
Button R Post
Please note
document

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 Business Process Procedure

number.

Before post the invoice, consider the traffic light function of the balance. If the invoice
amount corresponds with the value of the position, then a green traffic light is displayed.
Change now the proposed value of the amount in the item summary and press ENTER.
The value is now no longer correct and the traffic light wraps around on red. The voucher
cannot be posted; only a pre- entry is possible. Correct afterwards the amount.
If the amount of the invoice corresponds with the amount of the position, but deviates e.g.
the calculated quantities of the good receipts amount, then you receive a warning and the
traffic light displays yellow. The voucher can be posted, in the following one however it is
blocked for payment. With the help of the Buttons "messages" can be able to be
displayed you further details to occurred "errors".
In order to see, which general ledgers are posted, press the Button "simulating".

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