Procurement of Stock Material

Topic: Procurement of Stock Material

Purpose of Unit
At the conclusion of this exercise, you will be able to:
Create requests for quotation (RFQ) for regular customers and one-time vendors
Maintain and compare quotations in the system
Display and print RFQs and quotations

Page 1 of 24
 Procurement of Stock Material

Exercise :Request for Quotation/Quotation Processing

Purpose of Exercise
To get the best purchase price for your Personal computer, you send RFQs to several
vendors. Of these vendors, there is one vendor with whom you have had no dealings before.

Create RFQs for a base quantity of 100 pieces of the material PC_ _ _from the following
vendors:
You enter the RFQs under the collective number GR_ _ _. You have heard of a
prospective new vendor, with whom you have never had any business dealings (one-time
vendor). You send an RFQ for the Personal Computers to see how efficient this vendor
is. You send another RFQ to your previous main vendor Kazi_ _ _.

Menu Path: Logistics Materials Management Purchasing  RFQ/quotation

Request For QuotationCreate
Transaction ME41
Code:

Use the following information:

RFQ Type AN
Date of RFQ Current date
Quotation deadline Current date + 2 weeks
Purchasing organization US00/ DE00
Purchasing group N00/ E00
Delivery date Current date + 1 month
Plant (No plant)

If you create an RFQ for a particular plant, and reference the quotation when you create
the purchase order, you can no longer change the plant that is specified in the purchase
order. In the RFQ, you should therefore only specify a plant if you do not intend to
procure the item for other plants.

 Click on Overview Button

Header Details
 Coll. No (Collective RFQ) : GR_ _ _
 Enter

Click on Item Overview

 Material : PC_ _ _
 RFQ Quantity : 100
 To enter the vendor addresses, proceed as follows:
 Header Supplier address

Page 3 of 24
 Procurement of Stock Material

On the screen for the vendor address:

Vendor 1 125016 (one-time vendor)

Message appears
Enter the following address for one-time vendor
Company Sony_ _ _
Search term ___
Street / House Number Himmelsgasse / 67
Postal Code / City 67346 Speyer
Country US
Region NE
Language EN
 (Save)

Record the system messages:

Message

RFQ Number for Vendor 125016:______________________

 Do not leave the screen.

 Enter Vendor 2 : Vendor number for Kazi_ _ _
 Enter
 Address of vendor Kazi_ _ _ is picked up from the vendor master.
 (Save)

Record the system messages:

Message

RFQ Number for Vendor Kazi_ _ _:______________________

Exercise :Display and print RFQ

Purpose of Exercise
Display the RFQ for your main vendor Kazi_ _ _as a printout (message) on your screen.
Print the RFQ. You can also print your other RFQ if you wish.

Menu Path: Logistics Materials Management Purchasing RFQ/quotation

Request For Quotation  Messages  Print/transmit
Transaction ME9A
Code:
 Enter RFQ Number for vendor Kazi_ _ _ : ___________________________

 Execute

Page 4 of 24
 Procurement of Stock Material

 Select the line



 Select the line and Click on to view the print preview of the
RFQ.

Exercise :Enter quotations

Purpose of Exercise
You have received the quotations for your RFQs. Maintain the quotations in the system.
The Vendors gave you the following information about prices and delivery times for PC_ _
_.

Menu Path: Logistics Materials Management Purchasing RFQ/quotation

Quotation Maintain
Transaction ME47
Code:

Page 5 of 24
 Procurement of Stock Material

Step 1: Enter quotation for One-time vendor : 125016 (one-time vendor)

 RFQ Number : _________________
 Enter
 Delivery date : [Current date + 6 weeks]
 Select More and select item Conditions
 Condition Type : PB00 (Gross Price).
 Amount : 79 Eur
 Enter
 Condition Type : RA01 ( Discount % on gross)
 Amount : 3%
 Enter
 Condition Type : FRB1 (Freight Value)
 Amount : 100 Eur


 Back
 (Save)

Record the system messages:

Message

Step 2:Enter quotation for Vendor Kazi_ _ _

 RFQ Number : _________________
 Enter
 Delivery date : [Current date + 4 weeks]
 Select the item and choose item conditions.
 Condition Type : PB00 (Gross Price).
 Amount : 82Eur
 Enter
 Condition Type : RA01 ( Discount % on gross)
 Amount : 10%


Page 6 of 24
 Procurement of Stock Material

 Enter
 Back
 (Save)

Exercise :Compare prices

Purpose of Exercise
Compare the prices of the quotations to determine the most reasonable supplier. Select the
quotations for comparison via the collective number GR_ _ _ and purchasing organization
1000.
Display the mean value quotation using the quotation price comparison list and choose the
effective price.

Determine the most reasonable quotation.

Menu Path: Logistics Materials Management Purchasing RFQ/quotation
Quotation Price comparison
Transaction ME49
Code:

Quotation price comparison list

 Purchasing organization : US00
 Collective RFQ : GR_ _ _
 Mean value quotation : 
 Determine effective price : 
 Execute

Determine the most reasonable quotation and make a note of the vendor and the effective
price.
 Vendor : _________
 Effective price : __________ USD
 Rank : 1
 Do not leave the screen
Exercise :Set Rejection Indicator
Page 7 of 24
 Procurement of Stock Material

Purpose of Exercise
You can set the rejection indicator in the item overview for each item or on the detail screen
for an item you do not want to include. Go directly from the quotation price comparison list
to the quotations.

 Click on the quotation for the vendor/s you do not want to include and choose….
Edit Maintain quotation
(Or choose [Maintain quotation] or double-click the quotation)

 Scroll towards the right of the “Maintain Quotation : item overview” screen
 Set the rejection indicator


 Set Output Message : ABSA

 Logical Destination: LP01
 Print Immediately


 (Save).

Note: You automatically return to the quotation price comparison list.

Exercise :Display and Print rejection letters

Purpose of Exercise
Take print out of the rejection letters that have to be send to the vendor for whom you have
set rejection indicator.

Menu Path: Logistics Materials Management Purchasing RFQ/quotation

Request For Quotation Messages  Print/transmit
Transaction ME9A
Code:
 Enter RFQ Number : ___________________________
 Purchasing Organization : 1000
 Purchasing Group : 000
 Message type : ABSA (Quotation Rejection)
Page 8 of 24
 Procurement of Stock Material

 Execute
 Select the line

 Click on

Exercise : Create a purchase order with reference to the most

reasonable quotation

Purpose of Exercise
After an RFQ/Quotation activity, you want to order the Personal Computer from the most
reasonable vendor. To minimize data-entry time, you reference the vendor’s quotation when
you create the purchase order. Use the document overview in the purchase order transaction
to do this.
 For plants MI00 (Miami) and DL00 (Dallas), you need 100 pieces of the material
PC_ _ _.
 With reference to the most reasonable quotation, create a purchase order for the
purchasing organization US00 and plant MI00 (Miami). The system proposes all the
data contained in the quotation, such as the quantities and conditions.
 Add a second item for 100 pieces of the same material for plant DL00 (Dallas). The
other data is the same as that used for item 10.

Page 9 of 24
 Procurement of Stock Material

Menu Path: (Logistics  Materials Management  Purchasing  Purchase order

Create  Vendor/supplying plant known
Transaction ME21N
Code:

 Select Document Overview On.

 Choose the Selection Variant icon and select Requests for Quotations.
 Enter your purchasing group and Fixed Vendor and deselect
Material No.and all other entries.
 Click onExecute to find your RFQs.
 Select the appropriate RFQ and click on adopt once for the item for Plant
MI00and
 Once again click on adopt for the item for Plant DL00.
 In material Data tab check whether Info update indicator is set so that the system
automatically updates the relevant info records.
 (Save).
Record the system messages:
Message

Exercise :Change purchase order

Purpose of Exercise
The sales employee responsible has informed you by phone that the price has been reduced
further. The gross price for material PC_ _ _ is 80 Eurfor this purchase order. The
remaining conditions are unchanged. Change your purchase order accordingly.

Menu Path: Logistics  Materials Management  Purchasing  Purchase order

 Change
Transaction ME22N
Code:

 Open your purchase order by clicking on

 Choose Conditions tab.
 For both items Change gross price PB00 to 80 Eur.
 Change to 80 Eur the gross price of both items in the conditions tab (item detail)
 (Save).
Record the system messages:
Message

Page 10 of 24
 Procurement of Stock Material

Exercise :Change info record

Purpose of Exercise
The vendor Kazi_ _ _ sends you new purchasing data and conditions for material PC_ _ _.
Change the info record for this vendor and this material in accordance with this data. The
average delivery time (planned delivery time) is 10 days. In addition, the vendor accepts
only purchase orders for quantities above the minimum quantity of 50 pieces.
As of today, the conditions will change as follows:
 Validity period : 1 year
 Gross price : 85 Eur
 Discount from gross (RA01): 15% from 50 pieces or more, 18% from 200 pieces or
more.

Menu Path: Logistics Materials Management Purchasing  Master Data

Info rec. Change (ME12)
Transaction ME12
Code:

 Vendor Kazi_ _ _
 Material PC_ _ _
 Purch. org. 1000
 Enter
Purchasing organization data 1
 Planned delivery time 10 days
 Standard Order Quantity 50 pcs
 Minimum quantity 50 pcs

 Click on
 Click on
 Validity Current date
 To Current date + 1 year

Condition type Amount

PB00 gross price 85 Eur
RA01 % discount from gross 15 %

 To maintain the discount scale, select the condition type RA01 and choose
GotoScales (or choose [Scales]).
Scales for % discount from gross (RA01)

Scale qty Amount

50 pcs 15 %
200 pcs 18 %

 (Save).

Page 11 of 24
 Procurement of Stock Material

Quantity-dependent price
Finally, answer the questions below:
 You want to order 20 pieces of the material PC_ _ _from the vendor Kazi_ _ _. Is
this possible? What message does the system issue?

 If you create a purchase order for 20 pieces of material PC_ _ _from the vendor
Kazi_ _ _ the system issues the message below. "Quantity is less than the
minimum purchase order quantity of 50 pieces in the info record."
However, you can still save the purchase order.

 What net price would you have to pay per piece if you wanted to order the
following quantities of material PC_ _ _ from vendor Kazi_ _ _?

Net price per piece of material PC_ _ _ based on the order quantity:

Check for prices in conditions tab

20 pieces 50 pieces 150 pieces 320 pieces

Page 12 of 24
 Procurement of Stock Material

Exercise :Stocks, Valuation, and Goods Receipt

Purpose of Exercise
At the conclusion of this exercise, you will be able to:
Work with the stock overview
Interpret current stock and valuation data in the material master
Explain the difference between standard and moving average price in material valuation
Outline the effects of the various valuation procedures on how accounts are updated in
Financial Accounting
You enter the goods receipts for your purchase order. You see the effects of the various
valuation procedures on how the accounts are updated in Financial Accounting and how the
material valuation prices are updated.

Stock overview
Analyze the stock overview for the material PC_ _ _in plants MI00and DL00.
Make a note of the stocks for plants MI00 and DL00 in table (1) (stock overview).

Menu Path: Logistics Materials Management Inventory Management

Environment Stock Stock Overview
Transaction MMBE
Code:

Material PC_ _ _
Plant MI00 to DL00
 Execute
Table (1): Stock overview PC_ _ _ (Transaction Code: MMBE)
a)
Plant MI00 SLoc TG00 Plant DL00 SLoc TG00
Unrestr.- Quality OnStock Unrestr.- Quality On Stock
use insp. use insp.

Before (GR) 100 100

After (GR) 100 0 100 - 0

Table (2): Accounting data PC_ _ _, Plant DL00 (Transaction Code : MM02)

Price control: Moving average price

Moving Standard Total Total
avg Price Stock Value
Price

Before (GR) 80 - 0 0
Page 13 of 24
 Procurement of Stock Material

After (GR) 72 - 100 7200

Table (3):Accounting data PC_ _ _, Plant MI00 (Transaction Code : MM02)

Price control: Standard average price

Moving Standard Total Total
avg Price Stock Value
Price

Before (GR) - 80 0 0
After (GR) 80 100 8000

Exercise: Enter goods receipt for plant MI00

Purpose of Exercise
In plant MI00, storage location TG00, unrestricted-use stock, enter a goods receipt for the
purchase order. Refer to the delivery note for other data that is required. Ignore the goods
receipt for plant DL00 (Dresden) for the time being.

Menu Path: Logistics Materials Management Inventory Management

Goods Movement  Goods Receipt  For Purchase Order PO
Number Known
Transaction MIGO
Code:

 Choose your PO number via F4 help or enter it manually.

 Copy only the first item from the purchase order

 Delete the second item by clicking on (the line without OK will be

deleted)
 Under Header data, tab page General, enter the document date : <today’s date>
 And the delivery note number : Delivery 1_ _
 In the item overview, line 1, enter the storage location TG00.
 (Save).
Record the system messages:
Message

Exercise :Display material document (1)

Page 14 of 24
 Procurement of Stock Material

Purpose of Exercise
Display the material document that was created as a result of the goods receipt. Choose the
corresponding accounting document.
Which accounts are updated for which amount?

 Switch from the goods receipt entry screen to the display mode.

 Choose your material document from the document overview.

 Enter
 The Docmt Info (Header data) tab page contains the [FI documents] button,
which you choose to go to the accounting document.


 Exit the accounting document

 Go directly from the material document to the material master record by double
clicking on the material short text.
 Choose the accounting view and add to table (2) the current accounting data for
plant MI00.
 To go to the material master record, choose Environment Stock. In table (2),
make a note of the values that have changed in Financial Accounting.

Page 15 of 24
 Procurement of Stock Material

Exercise: Enter goods receipt for plant DL00

Purpose of Exercise
Now enter the goods receipt for plant DL00, storage location TG00, in accordance with the
following delivery note.

 Choose your PO number via F4 help or enter it manually.

 Copy only the first item from the purchase order


 Under Header data, tab page General, enter the document date : <today’s date>
 And the delivery note number : Delivery 2_ _
 In the item overview, line 1, enter the storage location FG00.
 (Save).

Record the system messages:

Message

Exercise : Display material document (2)

Purpose of Exercise
Display the material document that was created as a result of the goods receipt. Choose the
corresponding accounting document.
Which accounts were posted for which amount?

 Exit the accounting document

 Go directly from the material document to the material master record.

Page 16 of 24
 Procurement of Stock Material

 Choose the accounting view and add to table (3) the current accounting data for
plant DL00.

Exercise:Compare posting results

Look again at tables (2) and (3). Why do both the accounting documents and the total
value of material PC_ _ _ differ for each plant?

In plant DL00, the material is valuated using the moving average price control
procedure. The stock value increases by the product of the goods receipt quantity and the
price of the purchase order item.
The new moving average price is calculated as follows:

Moving average price = stock value /stock quantity

In plant MI00, the material is subject to standard price control. The stock value
therefore increases by the product of the goods receipt quantity and the standard price in
the material master.

The GR/IR clearing account is posted with the amount of the expected liabilities
(GR quantity x purchase order price) for both items.

For materials managed with the standard price control procedure, the system posts the
difference from (GR quantity x standard price) and (GR quantity x purchase order price)
to a price difference account.

Page 17 of 24
 Procurement of Stock Material

Exercise :Display Purchase Order History in the Purchase Order

Purpose of Exercise
Display the purchase order. Check whether the purchase order history was updated as
expected for both items.
Can you tell immediately whether the full quantity of your purchase order was delivered?
The header details contain the Status tab page.

Menu Path: Logistics Materials Management Inventory Management

Purchasing  Purchase order Display
Transaction ME23N
Code:

Item detail – Tab page : Purchase order history

Header detail – Tab page : Status

Exercise :Stock overview

Purpose of Exercise
Analyze the stock overview for material PC_ _ _ in plants MI00and DL00again.
In table (1), make a note of the current stocks. Display the material document for the last
goods receipt again. Where in the material document does it tell you that goods were posted
into stock in quality inspection? Where is this information derived from?

Menu Path: Logistics Materials Management Inventory

ManagementEnvironment Stock Stock Overview
Transaction MMBE
Code:

 On the selection screen, first enter material number PC_ _ _ and plants MI00 and
DL00.
 In table (1), make a note of the stock values.

The item overview in the material document tells you to which stock the material is
posted.
The "Stock in quality inspection" flag for the second item (plant DL00) is derived from
the purchase order. Since the “Quality inspection” indicator is set in the Purchasing
data in the material master for material PC_ _ _, plant DL00, the system copies it as a
default value to the purchase order.

Page 18 of 24
 Procurement of Stock Material

Exercise :Transfer material to unrestricted-use stock

Purpose of Exercise
Quality Inspection in plant DL00has made a positive usage decision for material Personal
Computer.
Post the material from quality inspection stock to unrestricted- use stock. The material
remains in storage location FG00even after it has been released.

Menu Path: Logistics Materials Management Inventory

ManagementGoods Movement Goods Receipt Transfer
Posting
Transaction MIGO
Code:

Movement type Transfer posting Stock to stock QI to unrestricted – ECC 6.0
(You can also enter the number 321 directly in the Movement type field.)
Enter MI00 in the Plant field.

Which movement type do you use?

Movement type : __________________________
Material document number : _____________________

Exercise :Display material document for transfer posting

Why is there no accounting document?
The system does not create an accounting document for this transfer posting because
the material is transferred within the same valuation area (plant). Quality inspection
stock is already part of the plant’s valuated stock.
Check also that the system has updated the stock overview correctly.

Page 19 of 24
 Procurement of Stock Material

Exercise : Invoice Verification with Unplanned Delivery Costs

Purpose of Exercise
At the conclusion of this exercise, you will be able to:
Enter invoices with unplanned delivery costs
Explain the impact of unplanned delivery costs on material valuation
Examine the effects of the various valuation procedures on how the FI accounts and
material valuation prices are updated when you enter an invoice.

 Enter invoice
Use Logistics Invoice Verification to enter the invoice for the purchase order for the PC_
_ _with vendor Kazi_ _ _.
Use the following vendor invoice as a reference.

Invoice Kazi Ltd.

Sonnenweg 3
68415 Mannheim

IDES
Hamburg Plant Invoice Number : IN-B1##
Altersdorferstr ,13 Invoice Date :[Date]
22299 Hamburg

With reference to to your PO No 45000******, we hereby invoice you the following materials:

Item Quantity/Un material no. Name Price

10 100 pc PC_ _ _ Headlight Eur 7200
20 100 pc PC_ _ _ Headlight Eur 7200
+ Freight Charges Eur200
Total net value Eur 14600
+10% VAT Eur 1460
Invoice Amount Eur 16060
Sincerely,
Kazi Ltd.

Page 20 of 24
 Procurement of Stock Material

Note that freight charges are shown on the invoice. Enter these as unplanned delivery
costs.

Navigation

Menu Path Logistics Materials management Logistics invoice verification

Document entry  Enter Invoice
Trans Code MIRO

 Enter unplanned delivery costs on the Details tab page.

Before you post the invoice, simulate the document and answer the questions below.
Which postings are made? Which of the postings are created as a result of the unplanned
delivery costs? _________________

Postings3 and 5 are caused by unplanned freight charges. The stock account materials 1 is
debited as a result of posting 3 because the material is valuated using the moving average
price control procedure in plant DL00. In plant MI00, the material is valuated using the
standard price control procedure. The stock account is not debited as a result of unplanned
delivery costs. But an expenditure account for price differences is posted.

Post the invoice. Invoice document number:__________________

Remove Invoice Block (MRBR)

Page 21 of 24
 Procurement of Stock Material

 Display material master record

Display the material master record for the Personal computer again. Fill in the table
below:
Price Moving Standard Total Total
Control avg Price Stock Value
Price

Plant MI00 S - 80 100 8000

Plant DL00 V 73 - 100 7300

 Display invoice document. Display the invoice document and go from there to the
PO history. Find out how entering the invoice with unplanned delivery costs affects
the purchase order history update.

Navigation

Menu Path Logistics Materials management Logistics invoice verification

Further Processing  Display Invoice Document
Trans Code MIR4

 Double click on Purchase order number to go to PO change view and then go to

PO History Tab Page.

Page 22 of 24
 Procurement of Stock Material

 Due to unplanned freight charges there are variances in the Goods receipt amount and
invoice amount because an extra 100 EUR were posted for each item when the
invoice was entered.

Exercise: Post Payments to Vendors

Purpose of Exercise

The purpose of this exercise it to make payment to the vendors for the goods received. You
will post a payment to the vendor from whom you have purchased trading goods.
Since the invoices are due for payment now. You are requested to clear the invoices by posting
outgoing payments to the vendors using the bank account (100000).

Navigation

Menu Path Accounting Financial accountingVendor Document entry 

Outgoing payment Post
Trans Code F-53

Enter the following information:

 Document date: Today

 Account: 100000
 Amount: 14600

Open items selection:

 Account: Vendor Number for Kazi_ _ _
 All other settings remain unchanged.

 Select
 Review the balance.


 (Save)
Record the system message:
Purchase order Vendor Invoice _ Message

Page 23 of 24
 Procurement of Stock Material

Page 24 of 24