SAP MM SET UP

PR->PO->GR->IR

VAISHNAVI JINDAM 6/22/21 SAP MM Configuration

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SAP MM Set up
Define Company:

SPRO-> SAP Reference IMG->Enterprise Stricture->Definition->Financial Accounting->Edit, Copy,

Delete, Check company code

Click on Edit Company Code Data

Click on “New Entries”

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Enter Below Details

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Click on “Next Entry” to enter address details

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Click on Save

If we are not getting transport request number click on as below and give short description and save

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Define Plant:

SPRO-> SAP Reference IMG->Enterprise Stricture->Definition->Logistics-General->Define, Copy,

Delete, Check Plant-> Define Plant

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Define Storage Location:

SPRO-> SAP Reference IMG->Enterprise Stricture->Definition->Material Management->Maintain

Storage Location

Enter plant

Enter Storage locations

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Define Purchase organization:

SPRO-> SAP Reference IMG->Enterprise Stricture->Definition->Material Management-> Maintain

Purchase Organization

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Define Purchase Group:

SPRO->SAP Reference IMG->Material Management->Purchasing->Create Purchasing Groups

Assignments
Assign plant to company code

SPRO-> SAP Reference IMG->Enterprise Stricture->Assignment->Logistics general-> Assign plant to

company code

Assign Purchasing Organization to company code

SPRO-> SAP Reference IMG->Enterprise Stricture->Assignment->Material Management->Assign

Purchasing Organization to company code

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Assign Purchasing Organization to plant

SPRO-> SAP Reference IMG->Enterprise Stricture->Assignment->Material Management->Assign

Purchasing Organization to plant

Maintain Fiscal year variant

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate

CDS views and field mapping->Ledgers->Fiscal year and Posting periods->Maintain Fiscal year variant

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Assign company code to fiscal year variant

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate

CDS views and field mapping->Ledgers->Fiscal year and Posting periods->Assign company code to
fiscal year variant

Define Variants for open posting periods

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate

CDS views and field mapping->Ledgers->Fiscal year and Posting periods->Posting Periods->Define
Variants for open posting periods

Assign Variants to company code

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate

CDS views and field mapping->Ledgers->Fiscal year and Posting periods->Posting Periods->Assign
Variants to company code

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Define Open and Close Posting Periods

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate

CDS views and field mapping->Ledgers->Fiscal year and Posting periods->Posting Periods->Open and
Close Posting Periods

Maintain posting period variant and values

Define Field status variants

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate
CDS views and field mapping->Ledgers->Fields->Define Field status variants

Assign company code to field status variants

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Regenerate

CDS views and field mapping->Ledgers->Fields->Assign company code to field status variants

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Define Chart of accounts List

SPRO-> SAP Reference IMG->Financial Accounting->General Ledger accounting->Master data->G/L

accounts->Preparation->Edit Chart of accounts List

Assign company code to Chart of accounts

SPRO-> SAP Reference IMG->Financial Accounting->General Ledger accounting->Master data->G/L

accounts->Preparation->Assign company code to Chart of accounts

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Define account group

SPRO-> SAP Reference IMG->Financial Accounting->General Ledger accounting->Master data->G/L

accounts->Preparation->Define account group

Define Retained Earnings Account

SPRO-> SAP Reference IMG->Financial Accounting->General Ledger accounting->Master data->G/L

accounts->Preparation->Define Retained Earnings Account

Select your Chat of accounts

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Define global parameters

SPRO-> SAP Reference IMG->Financial Accounting->Financial accounting global settings->Global
parameters for company code->Enter global parameters

Once all the above settings are created and the same has reflect in the above path as below

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Maintain Company code with below parameters in T169P in SM30

Maintain Company code with below parameters in T169V in SM30

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Create G/L Accounts

TCODE: FS00

Create Reconciliation account per AP/PR

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Click save

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Create Material Management Account:

TCODE: FS00

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Click Save

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Create GR/IR Clearing account under Material Management Account

TCODE: FS00

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Click save

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Create income statement account:

TCODE: FS00

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Click Save

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Create price difference Account:

TCODE: FS00

If this is not done while creating GR error will come

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Click Save

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Create subcontracting service account

TCODE: FS00

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Click Save

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Create consumption without cost element account:

TCODE: FS00

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Click Save

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Maintain Plant Parameters

SPRO->SAP Reference IMG->Material Management->Inventory Management and Physical Inventory-
>Plant Parameters

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Maintain Controlling Area

SPRO->SAP Reference IMG->Enterprise Structure->Definition->Controlling->Maintain Controlling Area

Click new entries

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TCODE: OMSY

Select company code and maintain below

 CoCd: Company Code

 Company Name: Name of the Company
 Year: Fiscal year of Current Period
 Pe: Current Period of Current Fiscal Year
 FYr: Fiscal year of Previous Period
 MP: Month of Previous Period
 FYr: Fiscal Year of Last Period of Previous Year
 LM: Last Month of Previous Year

Give current year and month and enter and save then it will pick previous year details

TCODE: OMX3: Assignment of material ledger types to valuation area

Select plant for valuation area

TCODE: OMX1: Active Material Ledger

TCODE: OMX2: Define Material Ledger Type

Click new entries

Give plant

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Define settings for ledger and currency types

SPRO->SAP Reference IMG->Financial Accounting->Financial Accounting Global Settings->Ledgers-

>Ledger->Define settings for ledger and currency types

Click ok->select ledger-OL->select currency conversion settings->click ok

Make entry for Company code with below details then click ok

TCODE: OMX1: Active Material Ledger

Check for plant

Now Material ledger is in active state

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Production Startup:

Set Valuation area as Productive

TCODE: CKMSTART

Execute

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TCODE: OMS2

Select plant and click on quantity and value update

Select quantity and value update

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Purchase Requisition- Purchase Order-ME21N Goods Receipt-MIGO Invoice Receipt-MIRO
ME51N

No Accounting No Accounting Stock Account- GR/IR account-

entries entries BSX-Debit(+ve) WRZ-Debit(+ve)

GR/IR account- Vendor account-

WRZ-Credit(-ve) KBS- Credit(-ve)

Create material:

TCODE: MM01

Views: Basic Data 1, Purchasing, MRP 1, MRP 2, General Plant Data/ Storage Location1, General Plant
Data/ Storage Location2, Accounting 1

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ML Active and price determinations should come automatically then only able to do GR

Created material KUSH-01

Go to TCODE: MM60 to see the material

Create Vendor

TCODE: BP

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Purchase requisition

TCODE: ME51N

Enter material, quantity, delivery date, plant, storage location, purchase group

Purchase requisition number 0010002285 created

Create Purchase Order:

TCODE: ME21N
Enter Purchase organization, Purchase Group, Company Code, Material, Quantity, Delivery date, Net
Price, Plant

Enter PR number

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Standard PO created under the number

4500001017

While Goods receipt it creates two documents

Material Document

Accounting Document

Here we need to assign G/L account to Valuation class for the respective Transaction Key then only Stock
account and GR/IR Clearing account hits

Stock Account – it is debited (+ve) because we received stock

GR/IR Clearing account – it is credited (-ve) here we have not yet paid vendor/ not received invoice and
it is temporary account

TCODE: OBYC

Click on inventory posting-BSX

Select your chart of accounts

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Select valuation class

Click save below screen comes

Give valuation class which you have given when creating material in account1 view

Select inventory stock material account

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Click save

Again go back and select GR/IR Clearing account-WRX

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Define Number Assignment for Accounting Documents

SPRO->SAP Reference IMG-> Material Management->Inventory Management and Physical Inventory-

>Number Assignment->Define Number Assignment for Accounting Documents

Select Financial Accounting Number Ranges

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Maintain Entries in OBA3, OBA4 to avoid authorization errors during Invoice Posting

TCODE: OBA3

TCODE: OBA4

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Create GR

TCODE: MIGO

Give purchase order number, delivery note (can give same Po number for now) and enter

Release PO using ME29N

Here you can have multiple approval levels

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Go to MIGO

Give purchase order number, delivery note (can give same Po number for now) and enter

Enter storage location and select checkbox “Item Ok”

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Click on Check

Click on POST

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Material document 5000000535 posted

Go to Display Mode, Check under Doc Info tab and click on FI Documents

You can find accounting entries

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It hits two accounts stock account and GR/IR Clearing account

Check status in PO ME23N

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He order 100 quantities and received 100 quantities still not paid
Invoice Posting: MIRO

Enter Invoice Date, PO number and enter

Enter tax code, amount(match with PO)
Here once we receive the invoice it hits two accounts
GR/IR account – Debit(+ve)
Vendor Account- Credit(-ve)

Enter BaselineDt and payment method

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Click on Stimulate and if everything is ok then save and post

Check status in PO, ME23N

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Click on Follow-On Documents

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Action Path
Define Company SPRO-> SAP Reference IMG- KUSH
>Enterprise Stricture->Definition-
>Financial Accounting->Edit,
Copy, Delete, Check company
code
Define Plant SPRO-> SAP Reference IMG- PDIL
>Enterprise Stricture->Definition-
>Logistics-General->Define, Copy,
Delete, Check Plant-> Define
Plant
Define Storage Location SPRO-> SAP Reference IMG- SB01-RW
>Enterprise Stricture->Definition- SB02-Semi finished
>Material Management- SB03- finished
>Maintain Storage Location
Define Purchase organization SPRO-> SAP Reference IMG- CORG
>Enterprise Stricture->Definition-
>Material Management->
Maintain Purchase Organization
Define Purchase Group: SPRO->SAP Reference IMG- ZPU
>Material Management-
>Purchasing->Create Purchase
Groups
Assign plant to company code SPRO-> SAP Reference IMG- PDIL to KUSH
>Enterprise Stricture-
>Assignment->Logistics general->
Assign plant to company code
Assign Purchasing Organization SPRO-> SAP Reference IMG- CORG to KUSH
to company code >Enterprise Stricture-
>Assignment->Material
Management->Assign Purchasing
Organization to company code
Maintain Fiscal year variant SPRO-> SAP Reference IMG- K4
>Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fiscal year
and Posting periods->Maintain
Fiscal year variant
Assign company code to fiscal SPRO-> SAP Reference IMG- KUSH to K4
year variant >Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fiscal year
and Posting periods->Assign
company code to fiscal year
variant

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Define Variants for open posting SPRO-> SAP Reference IMG- POST
periods >Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fiscal year
and Posting periods->Posting
Periods->Define Variants for
open posting periods
Assign Posting Variants to SPRO-> SAP Reference IMG- POST to KUSH
company code >Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fiscal year
and Posting periods->Posting
Periods->Assign Variants to
company code
Define Open and Close Posting SPRO-> SAP Reference IMG-
Periods >Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fiscal year
and Posting periods->Posting
Periods->Open and Close Posting
Periods
Define Field status variants SPRO-> SAP Reference IMG- GLFL
>Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fields-
>Define Field status variants
Assign company code to field SPRO-> SAP Reference IMG- KUSH to GLFL
status variants >Financial Accounting->Financial
accounting global settings-
>Regenerate CDS views and field
mapping->Ledgers->Fields-
>Assign company code to field
status variants
Edit Chart of account List SPRO-> SAP Reference IMG- CHAC
>Financial Accounting->General
Ledger accounting->Master data-
>G/L accounts->Preparation-
>Edit Chart of account List
Assign company code to Chart SPRO-> SAP Reference IMG- KUSH to CHAC
of accounts >Financial Accounting->General
Ledger accounting->Master data-
>G/L accounts->Preparation-

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>Assign company code to Chart

of accounts
Define Account Group SPRO-> SAP Reference IMG- 1. RECO-
>Financial Accounting->General RECONCILATION A/C
Ledger accounting->Master data- per AP/AR
>G/L accounts->Preparation- 2. MATL-Material
>Define account group Management
account
3. INCO-Income
statement account
Define Retained Earnings SPRO-> SAP Reference IMG-
Account >Financial Accounting->General
Ledger accounting->Master data-
>G/L accounts->Preparation-
>Define Retained Earnings
Account
Enter global parameters SPRO-> SAP Reference IMG-
>Financial Accounting->Financial
accounting global settings-
>Global parameters for company
code->Enter global parameters
1. Create Reconciliation
account per AP/PR
2. Create Material
Management Account
3. Create GR/IR Clearing
account under Material
Management Account
4. Create income FS00
statement account
5. Create price difference
Account
6. Create consumption
without cost element
account
7. Create subcontracting
service account

Define Plant parameters SPRO->SAP Reference IMG- PDIL

>Material Management-
>Inventory Management and
Physical Inventory->Plant
Parameters
Maintain Controlling arear SPRO->SAP Reference IMG- ADIL
>Enterprise Structure-

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>Definition->Controlling-
>Maintain Controlling Area
Active Material Ledger account OXM1
CKMSTART
Enter current year & month OMSY CC: KUSH
against company code
Assignment of material OMX3 Plant: PDIL
ledger types to valuation area
Active Material Ledger OMX1
Define Material Ledger Type OMX2
Define settings for ledger and SPRO->SAP Reference IMG-
currency types >Financial Accounting->Financial
Accounting Global Settings-
>Ledgers->Ledger->Define
settings for ledger and currency
types
Production startup CKMSTART
Set Valuation area as Productive
Quantity and Value update OMS2
Create material MM01
Create BP BP
Create Purchase Order ME21N
Create Goods Receipt MIGO
Give valuation class to WRX, OBYC
BSX
Maintain Tolerance OBA3
OBA4
Maintain relevant parameters in T169P
SM30 T169V
Define Number Assignment for SPRO->SAP Reference IMG->
Accounting Documents Material Management-
>Inventory Management and
Physical Inventory->Number
Assignment->Define Number
Assignment for Accounting
Documents

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Thank you for reading!

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