SAP MM

[ENTERPRISE STRUCTURE]
ENTERPRISE STRUCTURE
MM Organizational Levels:

1. Purchasing Organization (Top Level in MM)

2. Plants
3. Storage Location (Least Level in MM)

CUSTOMIZATION OF ENTERPRISE STRUCTURE:

SAP Easy access SAP Menu Tools Customizing IMG Projects

Execution

 IMG = (Implementation Guide)

SPRO Or SAP Reference IMG Enterprise Structure Definition Financial

Accounting Define Company

 New Entries
 Name of the Company (TSTEEL)
 Alias Name
 Detailed Information

Detailed Information:

Fill all the required information i.e., address, city, state and currency.

Click new entry button and fill all the information as earlier sheet

 Click save button

 In Customizing request Screen click create request button
 Short Description

**Source Client -- 800, Target ( In real time it is quality and Provider service)

 Click enter again click enter

 Back to IMG
 Edit/Copy, Delete, Check company Code
 Double click or Copy,delete, check company code (TCODE: EC01)
 Click Copy or Object button
 From Company Code : 1000 (Existing Co. Code)
 To Co. Code TSPC (Our New Co. Code) Click
 Do you want to copy the Co. Code G/L acct data?
 Then Click Yes
 Do you want to allocate a different currency to target company code then click yes.
( Because the company currency is different Currency)

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  Click enter several times
 Repeat same process for other Co. Codes by clicking Copy or Object Button
 Back to Pop-up ( )
 click Edit Co. Data
 Select Our Company Code (TSPC) and click address button in address screen enter
address name, address details, common details etc., of this Co. Code.
 Click Enter again select same Co. Code and click details for that Co. Code enter
Co. Code name, city, country etc.,
 Repeat the same process for the other Co. Codes
 Click Save
 Back to IMG

Definition Logistic-General Define Valuation Level

(Material values maintained at Plant Level or Co. Code Level)

If the valuations are is at plant level is selected then material prices are unique for plant
level. That means material prices may vary from plant to plant.

If PP module is there then valuation area at plant there then valuation area at plant level is
must.

If valuation level is Co. code then material prices are unique at Co. Code level, that means
material prices is same in all the plants under one Co. Code. But it may vary in other Co.
Code level. * recommended is plant level.

Note: In the middle of business if option has been changed from plant level to Co. Code level
or Co. Code level to Plant level there it is very difficult. Because for any material stock
should not be there and no open (Pos) or production orders, sales orders etc., superior.

 Back to IMG
 Define Copy,delete,check Plant
 Click Define Plant
 Click New Entries
 Enter Plant Name (TSJU)

In SCAL Code factory Calendars are defined by HR or FI people with working days and
holiday list and assigned the factory calendar to the plant.
 Click Address Button in address screen
 enter Plant name, Address and communication details etc.,
 Click Enter
 Click New Entry Button
 Enter Plant name on factory calendar click address and repeat the same process
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  repeat the same process for other plant.

Customization request Nos will be transported from development server (Development

Server 100) in SE09, SE10 to Quality and Target servers (Quality & Production).

 Back to Pop up
 Click Copy,delete,Check Plant
 Click Copy or object button
 From Plant (Already existing Plant 1000) To Plant (New Plant)
 Click Enter
 Then click on Yes… Click enter several times ….

Repeat the same process for the plants by clicking copy or object button.

Creation of Storage Locations:

Back to IMG

Material Management Maintain Storage Location Plant TSJU

If already Storage Locations are copied from the existing Plant to this New Plant due to
copy function then delete all the storage locations and maintain our new storage locations
as follows…

Click Select all button and delete all click save Click New Entries

Sl No Description
0001 Raw Materials

0002 Finished Materials

If any storage Locations address is defined at plant address then select the storage location
(Say 0001) and click address of Storage Location on left side

Click New Entries No (address No) Click address button

In address screen enter storage location, name, address and communication details.

Repeat the same for second storage location.

Back to IMG (again go to storage location maintain and repeat the same process for other
plant’s stores.

Purch Purch
org. Descrip.

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Maintaining Purchase Organizations: JUPO Jamshedpur
Pur Org.
Click New Entries RPPO Rai Pur Pur.
Org
BPPO Bangalore
PUr Org.
JPRP Cross Plant
Pur Org
TSCP Central Pur
Org. TSPC
Co.Code

Back to IMG Financial Accounting Assign Co. code to Company

Company Code City Company

TMPC Hyderabad TMOTOR
TSPC Hyderabad TSTEEL

Note; One company can have multiple Co. codes, but one Co. code can be assigned to only
one Company.

Click save Back to IMG Assignment Logistic General

Assign Plant to Co. Code New Entries

Co. Code Plant Name of Plant Country Name State

TSPC TSJU Jamshedpur Plant India Delhi
TSPC TSRP Raipur Plant India Raipur

One Plant is assign to one Co. Code, but one Co. Code can have multiple plants.

Back to IMG Assignment Material Management Assign Pur Org to

Company Code.

Pur. Org. Co. Code

TSCP TSPC

One Purchase Organization is assigned to only one Co. Code but One Co. Code can have
multiple Central Purchase Organizations.

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Click Save Back to IMG Assign Pur. Org to Plants New Entries

Pur. Org Plant

BPPO TSBP
JMPO TSJU
RPPO TSRP
JPRP TSJU
JPRP TSRP Click Save

Note: Central Purchase Organization is assigned only at Co. Code Level and not assigned at
Plant level then Central Purchase Organization only an execution for contracts are possible
but PO’s are not possible. Suppose PO’s also wants to create with Central Purchase
Organization that again assign Central Purchase Organizations at the required Plant level
also.
One Plant can have One Pur. Organization, One Purchase Organization can assign to
multiple Plants. Which belongs to same or multiple Co. Codes.

Back to IMG Assignment Assign Standard PO to Plants

If Plant is having more than One Purchase Organization assign any one Purchase
Organization as a Standard Purchase Organization to that plant, So, that this Standard
Purchase Organization only involves in special Procurements. I.e., in pipeline,
Consignement Procurement Process for that plants.

Plant Standard Pur. Org.

TSJU JMPO
TSRP RPPO

Note: for above plants more than one Pur. Organization is there, that’s why only one is
possible.
Note: In Enterprise Structure
Co. Code data Table T001
Plant data Table T001W
Storage Location Table T001L
Pur. Org. Data Table T024E

MM Master Records:

1. Material Master Record

2. Vendor Master Record

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 3. Purchasing Info Record
4. Source List Record
5. Quota arrangement Record
6. Batch Master Record
7. Service Master Record
8. Condition Record
Note: If you maintain Master Records say Material Master Records, Vendor Master Records
in database server, later this master records data will be retrieved from date base server to
business documents (Transaction data) i.e., to PR,PO etc.,. to await manual invoices and to
speed up documentation process and to control Procurement Process.

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SAP MM

BY MR. SUDHAKAR REDDY

PREPARED BY SRINIVAS KOSANA

[MATERIAL MASTER RECORD]

[MATERIAL MASTER RECORD, MATERIAL TYPES, CREATING & EXTENDING MATERIALS, MATERIAL
MASTER CUSTOMIZATION.]
 MATERIAL MASTER RECORD

1. Material Master Record:

It Contains information on a material that a Company procures or sells a product.
For Each material, the relevant department must be maintained information in
material master record for their user department point of view.
Material Type:
The materials are having same attributes are grouped together and assigned to a
material type. It is nothing but classification of all our materials into material types (Raw
materials, semi finished, finished etc.,) based on their attributes.

Material Types control Functions:

1. Number assignment i.e, internal or external or both.
2. Field selection i.e., which fields are mandatory, which fields are
optional hid or display etc.
3. External procurement or Internal procurement (In House Production).
4. Inventory is received or not on Quantity and value basis.
5. Which valuation classes to be allowed or not.
6. Which user department views should be allowed or not in selection
view.

Material type Customization Path:

SPRO Logistic General Material Master Basic settings

Material types Define attributes of Material types (T Code- OMS2)

Note: In real time also Pre defined material types already exist, as per client business
requirement. New Material types also defined as follows…
Select any existing material type say ROH (Raw Material) and click Copy (F6) as button.
Enter New Material type as YOH
Description --- Raw Material
In user dept screen Select require views
In external Purchase Order Select – 2 (Allowed)
In Internal Purchase Order Select-0 (Not allowed)
Click Enter Click Save
 Back to IMG

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Following are Important Existing material types:
DIEN -- Service;
ERSA -- Spare Parts
FERT -- Finished Products;
FHMI -- Prod Resource/tools
FRIP -- Perishables (Less Life Materials i.e., vegetables, food products.)
HALB -- Semi Finished Products
HAWA -- Trading Goods
HERS -- Manufacturer parts
KMAT -- configurable material (Variant Configuration materials)
LEIH -- Returnable packaging
NLAG -- Non stock Material
PIPE -- Pipe Line Material
ROH -- Raw Material
UNBW -- Non- Valuated Material
VERP -- Packaging Material

 Back to IMG

Define Number Ranges for Each Material Type: (T Code- MMNR)

 Click Groups

Note: Number ranges are maintained at Group level and for which material type
same number ranges are required, assign those material types to that group as follows..
From Menu Bar Click Group Arrow Insert enter group in the text
(Group for external material)
From Number To Number Ext--- Uncheck
Click Enter
Select our new group and check Mark .
Select our new material type YOH Click Select Element Button
Click Element/Group
Note: Same group number range received for any other material type, assign that material
type also to this group. One group can have multiple material type and one material type is
assigned to only one group.
Click Save

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Note: Number Ranges are manually transported request nos. that’s why when we click save
button, automatically customization request screens is not coming. If you want then only
include number range settings in customization request manually as follows..

Back to Insert Screen From Menu bar chose Interval arrow transport
Click Yes
(One manual request will come for own request) here manually existing request no. or we
can create any new request No.
Note: Types of Customization request:
1. Automatic transport request,
2. Manual transport request
3. No Transport requestBack to IMG.

Create Material Master (end User side):

Logistics Material management Material Master Material

Create (General) MMO1(T Code) Immediately Material Number.
It is internally by system or externally by user based on material type selection below.
(Maximum material type number length is 18 digits only)
Industry Sector Mech engg.: It controls screen sequence, field selection of material
master.

SPRO Logistics General Material Master Field Selection

Define Industry Sectors and Industry Sector Specific field Selection.
New Entries
Industry Sector Description Field Selection
X Plastic M
M It Controls field reference selection in material master Click save

Material Type:
Click select views
Here select MM views i.e. basic data 1 Purchasing General Plant data/storage1
Accounting 1.
Click Organizational levels Click enter Basic Data1 View

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Material Description:

General Data:
Base Unit of Measure Material Group

Old Material Number Ex Mat group

Division: Lab office

With this unit of measure this material stocks are maintained and stock (material) prices
also maintained with this unit of measure.
SPRO SAP Netweaver General Settings Check units of measurement
(Tcode: CUNI)

Material Group:
Materials are having the same characteristics are grouped together and assigned to a
material group like material type, the material group is not a control function and only for
FI reporting purpose, we can classify all our materials into material groups.
SPRO Logistics General Material master Settings for key fields
Define material groups
New Entries add a new material group click save old material no.
Enter which material no. was using for this material in old ERP system or in existing legacy
system.
It is optional here.

External Material Group:

Enter material group which is using for this material in other external legacy system.

SPRO Logistic General Material Master Setting for Key fields

Maintain external material groups

External Material Group External material group Description

123 Chemicals

XPlant material Statuses ( Cross Plants) :

If material has to block for purchasing and inventory transactions etc. for client level i.e., in
all plants then select option as (BP) or (01) etc.
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SPRO Logistic General Material Master Settings for Key Fields
Define material statuses New Entries
Material Status Y1 Blocked for Pur IN Prod
Purchase Msg B Inventory Mgmt B
Click Save

Valid From:
From this date material will be blocked for purchasing and inventory
transactions etc. as per material statuses.

Gross Weight:

Gross weight Net Weight

Suppose material based unit of measure is Cartoon, then one cartoon equals to how much
gross weight we have to enter and Net weight.

Volueme Volume Unit

Suppose base unit of measure is bottle then enter 1 bottle equals to
Volume—2 Volume Unit – 2L

EAN/UPC:
EAN -- International or European Article Number
UPC -- Universal Product Code
The Original Manufacturer will provide this UPC No and later PO will be given with our
material No. as well as with EAN/UPC No. also then it is easy for Vendor to identify the
ordered material With UAN/UPC number. So, that quick business transaction and quick
deliveries are possible from Vendor.

EAN Category:
It Controls EAN/UPC number assignment .
SPRO Logistic General Material Master Settings for Key fields
International article Nos.
Note: EAN’s are generally required for retailed Sector.

Material Group/ Packaging Material:

If created material is packaged material then assign the packaged material group here (It is
the part of SD, Shipping)
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Note: Material master Basic Data-1 and Basic Data-2 view details maintaining at client
level. Ie., in MARA Table.

Purchasing View:

Base unit measurement --- L Order Unit ---

If order is giving is other than Base unit of measure then only enter that order unit here. If
Order unit is blank here then system will treat the same base unit of measure as order unit.

Note; Other than base unit of measures are called as alternative units, those are
1. Order Unit, 2. Unit of Issue, 3. Sales Unit, 4. WM Unit etc.

Variable Order Units:

If active is selected here still this order unit can be editable in PO

Purchasing Group:
It is a group of buyers or an Individual buyer and it is responsible to procure material or
services in day to day activities.
Purchase group is a floating entity, that means it procures for any plants under any
purchase organization. That’s why purchase groups will both be assign to any
organizational level in IMG (i.e., to plant or purchase Organization)

SPRO Materials Management Purchasing Create Purchase Groups

New Entries
Pur Des Pur Group Telephone EXT Email.

Plant Special Material Statuses:

If material has to block for purchasing and Inventory Transactions etc., in a particular plant,
then select option as BP or 01 etc.,

Valid From:

From this date material will be blocked for purchasing or Inventory transactions.

Quality for Free Goods Discount:

For this material if any vendor is giving free goods or bonus goods then select option as 1
or 2
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(Ex: Buy 2 get 1 free).

Note: This is prerequisite here then only in PO's free goods are possible.

Automatic PO:

Generally in Industries daily 100s of PR's will be created automatically with MRP run
program. PO's will be created with reference to PR automatically in the system. But
following are pre requisite for automatic PO's.

1. In material master, select automatic PO

2. For this material maintained suitable or fixed vendor in quota arrangements (First
Priority) or

Source List or Contracts or Info record.

3. In selected Vendor master records also select automatic PO Indicator.

4. For this material and Vendor Combination maintain Info record to pick the price to
automatic PO.(Automatic PO T Code ME59N)

It requires we can define back ground setting job for automatic PO process in (T Code
SM36).

Tax Indicator for Material:

It specifies whether this material is liable or not for the tax.

It determines suitable tax code (0% tax code, 5% tax code etc.,) in PO Invoice tab.

SPRO Material Management Purchasing Taxes Set Tax indicator for

materials

 By clicking New Entries

Dst Country Material Description

IN 0 No Tax

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IN 1 Half Tx

IN 2 Two third Tax

 Click Save

Batch Management:

It is used to maintain homogeneity (similar) of the material and took place out the quality
material for recalling the product.

*In Sales Companies Batch Management required for the companies only.

* In Production companies Batch Management required for Company and the Vendor.

Purchase Value Key:

It specifies reminders under or over delivery authorizes and shipping instructing etc.,

Note: But output determination has to configure to set right reminders to purchase officer
inbox as well as Vendor's Inbox.

SPRO MM Purchasing Material Master Define Purchasing Value Keys

Click New Entries Say Y1 (Dead Line Maintaining)

1st Reminder 10
2nd Reminder 20 TOL Under Delivery 10%
3rd Reminder 30 TOL Over Delivery 10%

GR Processing Time:
Say 1 day after GR how many No of working days are required to complete Quality
Inspection and to place in store.

Post to Insp Stock:

If this material nature requires quality inspection process then select indicator here. So
that in PO and in GR the stock type defaultly fixed as Quality Inspection.
If Indicator is not selected here then stock type defaultly picks as unrestricted use.

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Source List:
If select this indicator then it is must to maintain source list record for this material in
(ME01- T Code) otherwise it will show error at PR or PO as "maintain Source List for
Material". Though Source List record is maintained but PO also must be given to any one of
Source list record vendor otherwise "Info Error" in PO.

Note: For material Source List required or not is controlled at two levels.
1. at Material Level
2. Plant Level
SPRO MM Purchasing Source List Define Source LIst at Plant Level

Plant Name Source List

TSJU Jamshedpur Plant
The Source List Indicator selected at Plant level that is here, then for this plant all material
source List record is must irrespective of source list Indicator selected or not in material
master.
The Source List is not selected at Plant Level in which material master source list indicator
selected for that material only Source list record is must.

Critical Part:

It is only for information purpose that this material is Imp material to our business.
Note: In Inventory sampling procedure, system will give priority to take critical part
materials in random selection into physical Inventory documents.

JIT Scheduled Indicator:

If we select Automatic here then in Scheduling agreement process system will generate JIT
delivery Schedules automatically along with FRC delivery Schedules.

Manufacture Part Profile:

If material has produced with Original Manufacturer part no. also then select any
manufacturer part profile here.
So that this profile controls how to work with MPN Number in procurement process
1. MPN number is mandatory is or not in PO
2. INFORECORD has to create with only MPN Nos. or with an material Nos. also etc.

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SPRO Materials Management Purchasing Material Master
Define Manufacturer Part Profile.
We can create New Entry or select any existing details and click details button observe the
controlled indicators.

Manufacturer:
Enter original manufacturer (Vendor's nos) of this material.

Manufacturer Part Number

Enter part Number or Material number of the original manufacturer.

Quota Arrangement Usage:

Quota arrangement means allocation of quotas to several vendors for the total required
quantity.
here select to which business documents in Quota Arrangement received data has to be
picked.
Note: In Purchasing view same fields are maintained at Client level i.e., MARA Table, and
some fields are maintained at plant level i.e., MARC.

Plant Data/Storage 1 View:

In this view Control how the stock or Inventory has to maintain at Storage Locations level.

Unit of Issue:
With this Unit of Issue measure material can be issued from store to production or to sales
etc., If this field is blank, Base Unit of measure will be picked as Unit of Issue.

Storage Bin:
Enter in which Bin Number material is placing in this storage Location.
If WM Module is not there then only enter storage Bin No here and it is only for our
information. Because stock maintained only Storage Location Level but not at bin Level.
If WM module is there then don't get the storage bin No. here because storage bin no
automatically proposed by system by placing or removing the material.

Picking Area:
It groups the storage bins together for picking the material to production or sales from
Warehouse in lead WM Module.

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Temperature Conditions:
It specifies up to which temperature level this material has to give in the Ware
House(Optional). It is for our information purpose.

SPRO Logistic General Material Master Settings for Key fields

Define Temp conditions.
Double click on entries and edit the existing data or create a New Entry and Click Save.

Storage conditions:
It specifies how this material has to store in the Ware House. i.e., in Refrigerator or in
packed item etc., It is relevant for shipping Module (Optional).

SPRO Logistics General Material master Settings for Key Fields

Define Storage Conditions.
Hazardous Material Number:
Some materials are very hazardous or dangerous in nature such as explosives,
inflammables, Poisonous items and radioactive items etc., whenever hazardous materials
are placing in warehouse take the precautions and place in a separate are in the Ware
House.
Create hazardous material master record in VM01- Tcode and if the required material
master assigned to the hazardous material number in store 1 View.

Label Type:
It specifies how the label has to print on this material i.e., label has to pre printed by vendor
or label has to print on the product in an central purchaser etc.,

Label Form:
It specifies the design or layout of label. Label layouts defined by SAP script or smart forms
in ABAB Module.

SPRO Material Management Inventory Management Play Inventory

Print Control Set Label Printout

Maximum Storage Period:

It specifies up to how many days or months Inventory or stock has to maintain for this
material in the store. It is only for our information purpose i.e., for report purpose. If
maximum storage period is exceeded then the stock will be treated as dead stock.
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Max Storage Time Unit
Min Rem Shelf Life Total Shelf Life
Period Ind S.Ltd
(Shelf Life expiry date)
Note: Life of Material from manufacturing date to expiry date is known as total shelf life.

Minimum Remaining Shelf Life:

(Say 1 ) At the time of GR from Manufacturing date to GR date already some life is over in
the total life 2 years but remaining shelf life should not be less than material master
minimum remaining Shelf life.

Note: In Store 1 view some fields are maintained at Client Level i.e., MARA Table, some
fields are maintained at Plant level i.e., MARC table and some fields are maintained at
Storage Location Level i.e., MARD Table.

ACCOUNTING -1 VIEW:
Note: In Accounting 1 View accounting data maintained at valuation area level (Plant or
Company Code) and the valuation level table is MBEW.

Valuation Class:
It will assign materials to a group of G/L Accounts, So that this material values will be
posted in that G/L Accounts.

IN MM Val Class Stock G/L Acct. Consumption G/L Acct Frieght G/L Acct.

3000 3000 4000 5000

3001 GR +1000
3002 GI - 200 +200 GI

In material Master Mat-x Valuation Class is 3000

Valuation class is the Integration point between MM & FI.

Valuation Class Sales Order Stock:(3001)

Project stock Valuation Class (3002):
If this material Project Stocks and sales order stocks values has to be post in different G/L
Accounts, then assign different Valuation Classes here. Price Control Indicators:
S - Standard Price
V - Moving Average Price/Periodic Unit Price.
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Moving Average Price(V) will be used for externally procured material because we do not
have control on external Vendor price. That means material price vary from vendor to
vendor and time to time. That's why average price will be treated for material.
'V' equals to total Stock Value/total stock.
Standard Price (S) will be used for in house productions materials i.e., for finished and semi
finished products. The advantage of standard price is, If material purchased or sold with
other than standard price then system will give profit or loss is how much? in separate P/L
and G/L accts.

Material - X Stock Value

Stock '0' '0'
V=0
1st PO 100Pc GR= 100 Pc
Rs. 100/pc
Stock = 100Pc Stock value: 100x100=10000
V= Total Stock Value/Total Stock
i.e., V= 10000/100=100

2nd PO 50 pcs GR= 50 Pcs

Rs. 90/pc

Total Stock(Old Stock+New Stock) Total Stock Value: 10000+4500=14500

=150 Pcs
V=14500/150=96.6.

Create or Extend same existing material to other user departments:(Tcode-MM01)

Enter Same material No.
Click Select Views Material
Select other user dept views Industry Sector
Say All MRP Views
Click Organizational levels
Enter same Plant & Storage Location
MRP Profiles VB01
Click Enter
In all selected MRP Views enter the required fields and save

Create or Extend same existing material to another Plant:(Tcode-MM01):

Enter same material Number

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 Click Select Views
Select MM Views i.e., Purchasing, General Plant data/Storage 1 and Accounting 1
Click Organizational levels
Enter different Plant and Storage Location
Click Enter
In all the selected views enter the required details from this plant point of view.

Create or Extend same existing material to another Storage Location:(Tcode-MM01):

Enter the Same material Number

Click Select Views
Select General Plant Data/Storage1 only
click Organizational Levels
Enter already maintained Plant
Enter different storage Locations (0001 to 0002)
In Store 1 View enter the required values from this storage locations point of view
and enter save

Create or Extend same existing material to several stores at a time:(Tcode-MMSC):

logistics MM Material Master Enter Storage Locations(T Code
MMSC)
Enter Material Number
Enter Plant
In Next screen Storage Locations
Click save
Go to MM03
Enter above said Material Number
Click Select Views
Select Storage 1 View only
Click Organizational Levels

Check the storage Location the extended storage location are updated or not?

Change Material Master: (T code:MM02)

Enter Material Number
Click Select Views
Select required views i.e., in which views details has to change
Ex: Basic data 1, Purchasing, Accounting 1
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 Click Organizational Level
Enter required Plant
click enter
In order selected views edit or change the required fields and save
(*If stock is there in store we will not change)
If already stock exist, if any open PR's or PO's or production orders etc., in material master
change mode.
Even though Base unit of measure or Valuation class etc., has to change then close or delete
the pending PO's or PR's for this material and also make the stock balance as '0' by entering
dummy GI and approve us to change Base Unit of Measure or Valuation class in material
master and again reverse the issued stock to store with the reversal moment type.

Change Material Type:

Logistics MM Material Master Material Display Changes
MMAM
Material Number
New Material type (Ex HALB)
Click Enter
Click Execute Button
Select New Material type relevant valuation class
Click enter
Goto SE16
Table Name MARA
Click enter
Enter MATNR (material Number)
Click Execute button
Observe New material type HALB updated or not?
(*SE16 ABAP T code to see the values directly, to see the technical table Settings--- User
Parameters)
Note: If already stock is exist and any open PO's or Open Production Order etc., are there,
then it is not possible to change material type.
If still material type has to change then delete or close the Open Purchasing docts., and
production orders etc., and make stock balance as '0' dummy goods Issue say with moment
type 201 then change the material type 'MMAM' and again reverse the stock to store with
the reversal moment type (Say moment type 202).

Change Material Price:

Logistics MM Valuation Change in Material Price Change
Material price (T Code MR21)
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 Posting Date
Plant
Enter
Material Number
Enter New Price
Click Enter
Click Save
Go to MM03
Enter above Material Number
Select Accounting 1 View
Click Organizational levels
Enter above Plant
Click enter
Observe new price updated or not in Accounting 1 View.

SPRO Materials Management Valuation and Account assignment

Configure price change in previous period

Co. code Price Carry over

TSPC

If we check this indicator here then the current period (Month) stock and previous period
stock will be evaluated with new price only.
If this indicator not selected then the current period stock only valuates with new price
where as previous period stock still valuates with old price only.

Total Stock - 100 Pc Total Value Rs. 10000/-

Current Month 40 Pcs Previous Month 60 Pcs
Value = Rs. 90/Pc Value = Rs. 100/pc
If Changed price carry over not selected
= 40x90=3600 =60x100=6000
Total (Old+ New)= 9600
If Changed price carry over selected
=40x90= 3600 =60x90=5400
Total (Old+New)= 9000

Mass Maintenance:
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Editing of several fields with several materials at a time is knows as mass maintenance.

Logistics MM Material Master Material Apply changes

Mass Maintenance (T Code MM17 or MASS)

MM17:
In the table tab select required table say MARA, MARC click fields data
Select required field say material group and Purchase group
Click Execute button (f8)

Material From TO
Plant From To
Click Execute Button

In General Material Data table, Enter New material type group existing in all the materials.
In Plant data material tab enter New purchase group exists in all the materials
Click save.
Go to MM03 and observe new values are updated or not in all the materials.

Flag for Deletion of Materials:

Logistics MM Material Master Material Flag for Deletion

Immediately (T Code - MM06)
Note: Suppose material is give to stop to use for a business or in place of this material no
the different material number has to create due to technical problems etc., then flag that
material for deletion to the T-code MM06 and later basis consultants will be deleted or
archived this flagged material in (MM71).
Enter Material Number
Plant
Storage Location
Click Enter
Select deletion indicators or Check Marks at material Client Level, Plant Level
or Storage Location Level
Click Save
Delete or Archive the flagged material: (T Code MM71)
Note: It is the path of Basis people.

Create Material master for scheduled date: (T Code MM11)

18
 Material Number
Industry Sector
Material Type
Change Sched for
enter from which date this material has to activate in database table
Click select views
Select MM views
Click Organizational levels
Enter Plant, storage location
Click enter
In all selected views enter required details and save

Activate Material on or before Scheduled date: (T Code MM13)

Enter Material Number

Click Execute button

Note: Same way scheduled the material master changes in MM12 and activate these
changes in MM13.

Display Changes: (T code MM04)

Enter Material Number

Click Execute button

In next screen it is showing how many times material is created or changed suppose select
T Code MM02 and click details button.

Observe which fields are changed and what are the old values are new values in that
changed fields and with what user id and on which date and time these fields are changed
etc.,

Special T Codes for /creation of Materials:

Logistics MM Material Master Material Create special
*here for each T Code material type is pre assigned in back ground and in that T code
material created only in that material type.

EX:
MMR1 -- ROH (Raw Materials)
MMB1 -- HALB (Semi finished Materials)
19
MMF1 -- FERT (Finished Goods)
MMH1 -- HAWA (Trading Goods)

Note: Important material Master Reports:

MM60 -- To see material List
MMBE -- To Stock overview for a single material
MB52 -- to see stock overview for multiple materials.

External Material views: (T Code MM50)

For multiple materials views are extended here

Material status enter all the required fields and Click Execute button
Click Select all and click maintain material
then it take to MM01 and enter the required details in the required fields and click
save and again it proposes next material and repeat the same process.

MATERIAL MASTER CUSTOMIZATION

SPRO MM Logistics-General Material Master Basic

Settings Material Types Define Attributes of Material Types

 Here define a new material type by copying from existing material type., For this new material
type maintain allowed user department views and control external procurement or Internal
Procurement (In House Production) o both and maintain default price control Indicator and this
default price control Indicatory (Say 'V') should come as a mandatory i.e., display mode or
optional.
 X plant material status say '01', If this material has to block for purchasing at client level then
select option say '01' then in material master basic data '1' view, X plant material status
defaultly fix as '01' and still editable in material master.
 External number assignment without check : If we set this indicator then in material master
(MM01) the externally given no will not be checked with this material type external number
range and any external number can give.

20
 If it is not selected, in MM01 the externally given number must fall with in external number
range of this material type.

 Click Enter and Save

 Back to IMG
 Define Number range for each material type
 Click Groups
 Here assign our new material type to existing group or to a new group with new number ranges.
 Back to IMG
 Basic Settings Define out put format of material numbers (T Code OMSL)

Material No. Length : 18 (Max upto 18 digits)

Material Number Template:

If our material number should start first four digits say our company name or any special character has
to include in between material numbers then specify the Template here.

Select Leading Zeros:

Then in the total material number length it will starts with leading Zeros and followed by material
number length.

 In MM01 observe assign material number internally by system.

 Back to IMG

 Suppose our material number should start with selected material type or plant and the followed
material type no range then go for enhancements as follows..

Material Master Enhancements Influence Number assignment

 In left side IMG documentation observe the existing exit below in the screen
 Click Exit -- SAPLMG02-001
 Here observe available function module Material- Number-Get and with ABAPER develop the
number ranges by using the function module in SMOD and CMOD T Codes.
 Back to IMG
 Material Master Customizing the material master Define Structure of data
screens for each screen sequence
 In Screen sequence maintain required data screens or main screens (Say Basic data1, Basic Data
2, Purchasing view) and in each main screen maintain required sub screen and later assign this
screen sequence to Industry Sectors, material types and user id combinations.

21
  In Standard SAP screen sequence '21' is picked to 'MM01' as per client business requirement we
can modify existing screen seque3nce or define new screen sequence.
 Select existing screen sequence '21'
 click copy as button enter new screen sequence say 'ZZ' and Click Enter
Note: If error comes click 'Skip' button
 Select new sub screen sequence 'ZZ' and click data screen on left side
 Observe main screens if required define new main screen say Basic Data 3 with new screen no.
 Select required main screen say 'Purchasing view' and click sub screen on left side
 Observe each sub screen no, If requires assign new sub screen number in last row in place of
blank sub screen '0001'. Say assign '2314' select this new sub screen row and click view sub
screens observe and save
 Back to IMG
 Maintain order of Main and additional sub screens
 Select our new screen sequence 'ZZ' and click detail button
 Maintain order of main screens and additional screens
 Click Save
 Back to IMG
 Assign screen sequence to user/material type/Transaction/Identity sector (OMT3E- T Code)
 Click Transaction Screen reference

T Code Screen reference

MM01 01

 Click user screen reference

User Screen reference
MM01 ZZ (Click new user and new entries)

 Click material type screen reference

Material Type M Type Screen reference
Z001 Raw ZZZZ
 Click Industry Sector Screen reference
Industry Sector Screen Reference
Z Z
 Click Save
 Click Screen Sequence Control
 Click New Entries

Screen Ref Trans. Screen Ref. User Screen Ref. M Type Screen Ref. Industry Screen Ref. Seq

01 ZZ ZZZZ Z ZZ

22
 Now login with new User Id
 Go to MM01
 Select above Industry Sector and material type and observe our new screen sequence (ZZ) main
screens and sub screens are coming or not
 Back to IMG
 Field Selection Assign Fields to field selection group
 Click Enter
 For Which fields say fields selection is required, assign those fields to same field selection group
and later for that field selection group maintain the field selection then that is applicable to all
the fields which are there in that field selection group.
 Suppose in material master for Gross weight, Net Weight and for Weight Unit fields same field
selection is required say mandatory. Then assign all these fields to same field selection group.
Field Name in Full Description Selection Group

MARA_BRGEW Gross Weight 16

MARA_GEWEI Weight Unit 16

MARA_NTGEW Net Weight 16

 Back to IMG
 Maintain field selection for data screns
 Click New Entries

 Enter New Field reference say for material type as 'Z001' and select group '16' as required entry.
 But field selection also controls based on Industry Sector and Plant.
 Click Next Entry Button
 Enter New field reference and for each selection group
 Select required field selection
 Suppose Select same Selection group '16' as 'Hide'.
 Click Next entry button
 Define another field reference say for plant as follows..
 Field reference 'TSJU'
 For each selections group select field selection
 Suppose Selection group '16' select as display
 Click Save
 Now assign these field reference to material type, Industry sector and plant as follows
 Back to IMG
 Define Industry Sector and Industry Sector specific field selectoin
 Click Enter
23
 Industry Sector Field Rererence

Z Z

 Click Save
 Back to IMG
 Define Plant Specific Field Selection and Plant Specific Screen selection
 Click Enter

Plant Field Reference

TSJU TSJU

 Back to IMG
 Basic Settings Material Types Define attributes of material types
 Go to required material type details say 'Z001'
 Assign field reference say 'Z001'
 Click Save
 Now Create material master with above new industry sector (Z), New material type (Z001) and
in above plant in basic data 1 view, observe selection group '16' field i.e., Gross Weight, Net
Weight, Weight unit fields are coming as hid or display or required or optional as per field
references of Industry sector, Material type and plant.
 Back to IMG
 Material Master Tools Maintain Authorization and Authorization profiles
 Here roles are created with allowed transaction codes and in that T Codes with allowed
authorization live basis people and later this roles assign to user id's here itself or in 'SU01'.
 Back to IMG
 Data Transfer Material master

Note: In real time material master records uploaded in to SAP with data upload tools such as 'LSMW,
PDC or BAPi' tools

 Back
 Maintain Search helps
 Suppose material number has to search with the combination of plant, material group, material
type but with this combination no search help is there, then here define one new tab by
assigning these three fields and link this tab to material search help by ABAPER. Then PR or PO
in material number field if we open drop down (f4) then it displays this new search help sub
screen also with the combination of Plant, Material type and Material group.

24
 VENDOR MASTER RECORD
Vendor Master Record:

It contains information of a vendor and vendor master can be created by core purchasing
departments and accounting departments. Before going to purchasing transactions
(RFQ,PO etc.,) create Vendor master in T Code- MK01 from purchasing point of view and
before going to Invoice & Payment transactions extend the same vendor to accounting
department in T code FK01 separately otherwise create Vendor master by both purchasing
and Accounting departments in T Code XK01.

Accounting Group:

In Vendor Master Account group is a control function and it controls the following:

1. Number Assignment i.e., external or internal but both are not possible

2. Field Selection i.e., which fields are mandatory, which or optional or hide or display etc.,

3. Which Partner functions or roles are to be allowed or not.

From accounting point of view acct group classifies all our suppliers as Vendors, Ordering
Addresses, Goods Suppliers, Invoice Presented by, Forwarding Agents, One time Vendors
and Import Vendors etc.,

Account Group Customization:(T Code OMSG)

SPRO Logistics General Business Partner Vendors

Control Define Account Groups and Fields selections

In real time also pre defined account groups will be there, as per business requirement we
can define new account groups also. suppose only of Indian vendors one account group or
Import vendors one account group etc.,

 Select any existing account group say 0001

 Click New entries
 enter new account group
 In field status screen click on each field say it is General Data
 In select group click on each one say it is address
 Select each field as suppress or required or optional or display entry.
 suppose select Name 1, Search term, Postal code are required fields
 back to main
 Click Purchasing data and again click purchasing data
 suppose select Order currency, Inco term as required fields and click save
 Back to IMG

1
Define Number Ranges for Vendor Master Record:

SPRO Logistics General Business Partner Vendors

Control Define Number ranges for vendor master record

Click Interval
Again Click Interval
Number Ranges
From No To No Ext.
00000000000000 00000000000000000
Click Enter
Click Save
Back
Click Number Ranges
click save
Back to IMG

SPRO MM Purchasing Partner Determination Partner

Roles Define Partner roles

While doing business with partners (Vendors) they can play different roles, such as
vendors, Ordering Addresses, Goods suppliers, Invoice presented by and forwarding agents
etc.,
Our company
MM SD
Main Ordering Goods Invoice Customer
Vendor In Address supplier Presented
Sold to Ship to Party Bill to Party
Delhi in Vendor in Bglr from
Party
in HYd chennai

Partner Functions Description Type of Partner

VN Vendor LI
OA Ordering Address LI
GS Goods Suppliers LI
IP Invoice Presented by LI
FA Forwarding Agent LI
FS Freight Service agent LI

2
Back to IMG
Define Permissable Partner roles for Account Group:
If a vendor created with some account group then what proper functions or roles can be
performed by vendor is controlled here.
 New Entries Function Name Group
 Enter requried fields and save VN Z123
 Back to IMG OA Z123
GS Z123
IP Z123

Create Vendor Master Record by Purchasing Department:

Logistics MM Purchasing Master Data

Vendor Purchasing Create (MK01)

 Vendor
 Pur Org
 Acct Group.
 Click enter
 In address screen enter Vendor Name, address and communication details etc.,
 click enter
Customer No.
If this Vendor is also a customer to our company sales department then enter the customer
number which is already created in SD Module.
In tax information enter vendor Co. tax numbers, Click enter

Order Currency:
With this currency orderly will be given to the vendor.

Terms of Payment:
It specifies cash response, mode of payment, and Installment payment etc.,

SPRO MM Purchasing Vendor Master Define Terms of

Payment
Percentage No. Of Days
 New entries
3% 12 Days

2% 20 Days

Due Net 30 Days

3
Inco terms:
These are given by International chamber of commerce to follow the terms and conditions
in foreign trading i.e., who has to bare freight and Insurance coast and who is the
responsible up to vendor country shipyard or airport or up to customer country
shipyard/airport or customer plant etc.,

SPRO MM Purchasing Vendor Master Check Inco terms

Minimum Order Value:

It specifies minimum order value to be given to this vendor. If total PO value is less than
vendor master minimum order value, system gives a warning or error message in PO based
on message settings.

SPRO MM Purchasing Environment data Define attributes

of system message

 Click system messages

here observe message number 06 03 is setted as warning or error.

Schema group Vendor:

It determines calculation schema or pricing procedure to purchasing documents.

Sales Person:
He is the person, who is the point of contact in vendor company and enter his contact
number.

Account with Vendor:

Enter customer number which is using for our company in vendor ERP System.

GR Based Invoice Verification:

If we check this indicator system verifies vendor invoice based on GR documents.

If we set this indicator here then in Info record and in PO's also the same field comes in
select mode and still editable in PO.

Auto Evaluated GR settlements for Delivery;

Auto Evaluated GR Settlements for Returns:
In ERS procedure (Evaluated Receipt settlements) we do not receive invoices from vendor
instead of that our system will generate invoices automatically based on GR quantity.

4
But in vendor master the above indicators are pre requisites then only in PO invoice tab
ERS option will come.

Acknowledgement Received:
If we set this indicator here, in PO confirmation tab also the same field comes in select
mode. Then in PO printout it will print as "we require order of acknowledgement for the
goods"., so that after receiving our PO vendor will sned order acknowledgement copy to us
by saying that "he received our PO."

Automatic Purchase Order:

This is prerequisite to create PO's automatically with respect to PR to this vendor.

Subsequent Settlements or rebate Agreement:

Vendors will give rebate or refund to us and total PO's cumulative quantity upon reaching
last date as per agreement or upon reaching some threshold value.

I - Rebate Agreement (T Code MEB1)

Mat - X, Vendor - X
Rebate Rs. 2/Pc
1st May 13 to 31st Aug.
II a) 1st Po On 10th May 100 Pcs
100 Pcs - GR 100 - IR 100 Pmt to vendor Rs. 1000
b) 2nd PO on 20th May 50 Pcs
50 Pcs - GR 50 - IR 50 Pmt to Vendor Rs. 5000
Like this after several PO's
As on 31st Aug Business Volume Comparison (T code ME02)
Total PO's Quantity 1000 Pcs
Credit Memo for Rs. 2000/- to collect from Vendor (T Code MEB4)

Logistics MM Purchasing Master data Subsequent

Settlements Vendor Rebate Agreements

Note: But pre requisites are in vendor master select

subsequent settlements

Subsequent Index

B. Volume Comparison

Doct Index Active

5
Returns Vendor:

If we set this indicator system allows to return the goods to Vendor( due to poo quality or
damages) via SD Shipping process.
Again for SD shipping point of view create same vendor as a customer in T code XD01 and
enter the customer no in this vendor master control screen.
Returns without SD Shipping
1. PO for 10 Pcs 2. GR for 10 Pcs Retruned Delivery
(Pur Dept.) (Inventory Dept) (2 Pcs or 10 Pcs to Vendor)

Returns with SD Shipping:

1. PO for 10 Pcs 2. GR for 10 Pcs Returned delivery to Vendor
(Pur Dept.) (Inventory Dept) (Shipping Dept.)
a. Outbound delivery, b. Post Goods Delivery
Shipping Conditions:
If Goods are returning to vendor with SD process then enter shipping condition here
This shipping conditions determines shipping point automatically to PO or to Outbound
delivery etc.,

Service Base Invoice Verification:

If we select this indicator then in service procurement process vendor Invoices will be
verified based on service entry sheet quantity.
PO Service- X Service Entry Sheet IR also same as Service Entry Sheet
PC- 10/1000 Rs/pc 8 or 10 i.e., Rs. 8000

ABC Indicator:
Based on significance of a vendor through our business, we can classify Vendors in to ABC
Analysis. It is only for our information purpose.
EX A- Very Imp Vendor
B- Medium Imp Vendor
C- Low Imp Vendor

Mode of Transport Border:

If this vendor is overseas vendor then from this vendor through which mode of transport
goods will arrive to our country border.

SPRO MM Purchasing Foreign trade customs Transportation

data Define Modes of transport

6
Office of Entry:

If vendor is overseas vendor then enter here to which customs office goods will arrive in
our country from overseas vendor.
SPRO MM Purchasing Foreign trade customs Transportation
data Define customs office

Re Valuation Allowed: (Tcode MRNB)

This is prerequisite to revaluate this vendor stock due to quality reasons or price
fluctuations with other than given price.

PO for 10 Pcs GR for 10 Pcs IR for 10 Pcs Revaluation w.r.t PO 10 Pcs

Rs. 100/pc Rs. 100/pc+Tax Rs. 90/pc or 110/pc

Grant discount in Kind:

This is pre requisite here to get free goods or bonus goods from this vendor for any
material. Ex Buy 2 get 1 free.

Planned Delivery time:

Ex: 5 days Delivery days

It specifies No of working days required to deliver the material by this vendor. In PO if
delivery date not entered manually then system calculates delivery date automatically
based on planned delivery time from Info record (first Priority) or from Vendor master or
from material master (MRP2 View).

Confirmation Control: (Say 0004 - shipping notification)

In PO if confirmation control in selected as shipping notification or inbound delivery etc.,
after receiving our PO, vendor will send immediately advanced shipping notification
ducument to us as a final confirmation about shipment i.e., when it is planning to transport
and exact delivery quantity and when exact delivery date to us etc.,
Later in our system create inbound delivery w.r.t to vendor shipping notification document
and based on this inbound delivery we can plan production activities, ware house activities,
shipping activities etc.,

Randing Profile:
It will round up the decimal values to the nearest values.

Service Data:
Price Marking Agreed:
It will provide price labels to vendor to attach on the order product by vendor itself.

7
Order entry by Vendor:
In vendor managed inventory process the vendor only check the inventory or stock
position in our system, If stock is defect vendor only proposes PO in our ERP system and
immediately the sales order will be created in vendor ERP system with our customer PO
details.
Customer Vendor
ERP i.e., SAP ALE/Idoc ERP
1. Monitor inventory Vendor
Sales order w.r.t. customer PO.
2. PO created by vendor

 Click enter
In Parameter function screen:

Parameter function No Name Number

Name

Vendor Internal Nippon

VN

 Click Save
here vendor number is created internally as per account group number range (observe
OMSJ T code for number range)

Create or extend same vendor to accounting department (T code FK01):

Accounting financial accounting Accounts payable Master records

 Enter same vendor
 company code
 accounting group
 click enter
Create Vendor : Accounting information
Reconciliation Account:
It is also G/L accounts in system and for normal postings that is for invoices and payment
transactions. This G/L accounts parallelelly updated with sub ledger account. Whereas for
special posting i.e., Advanced or down payment this G/L account is replaced by another G/L
account.

8
Cash Management Group:
It specifies which planning group has to involve in cash transactions with this vendor.
 Click enter

Create Vendor: Payment transactions Accounting:

Payment Terms:
In same vendor Master different payment terms are there in MK01 screen and in FK01
screens then purchasing payment terms will overwrite by FI payment terms.

Credit Memo Terms:

There are the payment terms agree with vendor for credit memo (To collect amount from
vendor).

Check double Invoice:

If you check this indicator during Invoice verification process, (MIRO) system will check
whether the entering invoice is duplicate invoice or not by valuating some fields i.e.,
reference No., (Vendor Invoice No) , Reference NO Co. Code and invoice date etc.,
If Invoice is double invoice, system gives warning or error message.
SPRO MM Logistic Invoice verification, incoming invoice

set check for duplicate Invoices

Here it controls which fields system has to valuate to identify the duplicate Invoice in
(MIRO T Code).
If more options selected here then probability of finding duplicate invoice will be low
Co. Code Name Check co. code Check reference Check M

VODA
Xxxxxxxxxxxx

Payment Method: (Cheque/Bank Transfer)

Alternative Payee:
As per this vendor Invoice if a payment to different vendor then enter that vendor no here.

Invoice Verification:
Tolerance Group:
It specifies the upper limits and lower limits if invoice amount is greater or lesser than PO
amount if these limits also credited system through error in Invoice.

9
SPRO MM Logistic Invoice verification Incoming invoice
Configure vendor specific tolerance
 New Entries
 Co. Code
 tolerance group
 upper limit/check limit
 upper limit per 1 unit
 click save
Pre payment: A
 Click save
 MKVZ Vendors display or list of vendors

Create New Vendor centrally by both Purchase & accounts dept. (T Code
XK01):
Logistics Logistics Execution Master data Partner Vendor
Create XK01.
 vendor No.
 Co. Code
 Purchasing
 Account 'group
here both MK01 and FK01 fields will come and enter all the required details and click save.

Create or extend Vendor existing to other Purchase org and Co. Code (T Code XK01):

 Enter existing Vendor No.

 Enter different Co. Code and different PO.
 Click Enter
In all the screens enter the required details from this co. code and PO point of view.

One time Vendor Master:

Some vendors will supply the material very rarely i.e., once or twice a year then we may not
create separate vendor master record for each of this rarely supplied vendors, instead of
that a single vendor master record can be created for all the rarely supplied vendors which
is called as one time vendor master.
 Go to OMSG
 select account group 0099
 click detail button
 one time account
 In field status sub screen you can't each 0
 In select group sub screen click on each one
10
  here many fields is select as suppress.

In address screen enter name as one time vendor but not a specific vendor name and dont
enter particular address. Here many fields coming as suppress as per account group
reselection enter required details in all the fields and save.

Note: In PO creating for one time Vendor system will ask to enter name and address details
of the onetime vendor. In Po itself and while entering Invoice w.r.t. PO system will ask to
enter one time Vendor Bank details in Invoice itself.

VENDOR MASTER T CODES

Purchase Dept Accounting Dept Centrally

Create Vendor MK01 FK01 XK01
Change Vendor MK02 FK02 XK02
Display Vendor MK03 FK03 XK03
Display Changes MK04 FK04 XK04
Block/Unblock Vendor MK05 FK05 XK05
Flag for Deletion of Vendor MK06 FK06 XK06
Change Account group MK07
List Display Vendors MKVZ
Planned Changes MK12
Activate Planned Changes MKH3
Block Vendor Master (XK05):
 Enter Vendor Number
 co. code
 Pur. Org
Select Blocking is required in all co.codes or in all selected co.codes and in all purchase
organization or in selected purchase organization.
 Select block information
 Click Save
Note: It requires we can unblock the vendor with the same (TCODE XK05) by removing the
indicators.

Vendor Master General data table - T code- LFA1

Co. Code data table - T code- LFB1
Pur Org data table - T Code- LFM1

11
 VENDOR MASTER CUSTOMIZATION

PARTNER FUNCTIONS:

While doing business with our partners i.e., with our vendors, they can play
different roles or functions with us such as Vendors, Ordering Addresses, Goods Suppliers,
Invoice Presented by and Forwarding Agents etc., Then Create seperate Vendor master
records for all these roles with relevant account groups.

SPRO MM PURCHASING PARTNER DETERMINATION PARTNER

ROLES DEFINE PARTNER ROLES

MM SD

Main Order Goods Invoice Sold to Ship to Bill to Payer

vendor in Address Supplier Pr by Party Party Party
Delhi in HYD in BGLR Chennai

Partner Function Name Type of Partner

VN VENDOR LI
OA ORDERDING ADDRESS LI
GS GOODS SUPPLIER LI
IP INVOICE PRESENTED BY LI
FA FORWARDING AGENT LI
FS FREIGHT SERVICE AGENT LI

 Back to IMG
 Define Permissible Partner roles per account group
 For Example '0006' account group Vendors performs only Ordering Address role
but not GS & IP roles, That's why for '0006' account group only 'OA' role is assigned.
Same way for '0002' account group vendors only 'GS' role assigned and for '0004'
account group only 'IP' role is assigned.

12
 Back to IMG
 Partner Setting in Vendor master Record
 Define Partner Schema
 New Entries

Purchase Schema Description

Y1 Schema Group

 Click Enter
 Select this Schema row and Click 'Partner Functions in Procedure'

 New Entries
Function Description No Change Mandatory
OA
GS
IP

 Back to IMG
 Assign Partner Schema to Account Groups
Acct Group PSEK ORG
Y111 Y1
 Partner Settings for Purchasing Documents
 Define Partner Schemas
 New Entries
Partner Schema Description
YYYY Partner Schema for PO
 Select Schema row
 click Partner function in Procedure
 New Entries
Function No Change Mandatory
OA
GS
IP
FA

 Back to IMG
 Assign Partner Schema to Document Type
Document Category Document Type Partner Schema
PO NB YYYY

13
Test Scenario:
Step 1: Create Vendor master recdord for Goods Supplier Vendor with account '0002'.

Step 2: Create Vendor Master for Invoice presented by role with account group '0004'.

Step 3: Create Vendor master for 'OA' vendor with our new account group 'Y111' and n
partner functions screen assign partner functions and Number.
Partner Fun. Vendor No.
OA Xxxx
VN Xxxx
IP Xxxx
GS Xxxx

Click Save

Step 4: Create PO to OA or VN vendor

 Go to ME21n
 Document Type 'NB'
 Vendor NO.
 Click Enter
 Enter Purchaser Orgnaization and Material
 In header, and in Purchase data tab observe partner funcitons copied or not from
vendor master. In Vendor master Partner fumctions are not maintained then
manually also enter Partner funcitons and vendor nos. here

Step 4: Enter GR in MIGO wrt PO.,

In Partner tab it is showing goods are supplied from GS Vendor

Step 5: Enter Invoice wrt PO

But in Vendor SW server it is shoiwng IP vendor i.e., Invoice frecieved from IP Vendor.

14
SAP MM

[PURCHASING INFO RECORD]

INFO RECORD, SOURCE LIST

1
 PURCHASING INFO RECORD

Purchasing Info record:

It contains information on material and vendor combination, main purpose of Info record is
to copy the data from Info record to external purchasing documents i.e., RFQ,PO and
Outline agreements etc.,

Info record will be created with or without material master and with or without plant.

Info record can be created manually in T Code ME11 or it can be updated or created
automatically in back ground while entering quotations or PO or outline agreement by
selecting Info update option.

Types of Info records:

1. Standard

2. Pipeline

3. Consignment

4. Sub contracting.

IMG Settings: (T Code OMEO)

SPRO MM Purchasing Purchasing Info record Define

Number Ranges
 Click groups button

here predifined transaction types IL & IN are there.

IL - For Info record with material master

IN - For Info record without material master

 From menu bar click group arrow insert

 enter group text
 enter the number range
 click enter
 Select New group check mark
 select element say IL
 click select element button
 click element/group button
 click save
 back to IMG

2
  define screen lay out

Select field selection ME11 click detail button in field selection group sub screen click on
eaach one.

For example select Purchase group as required entry in Info record.

 Back to IMG

Create Purchasing Info record:

Logistics MM Purchasing Master data Info record

Create (T Code ME11)

 Enter Vendor Number

 enter material Number
 enter Pur organisation
 enter plant
 enter Ino record based on Internal/external on group level
 Info category

Standard

Info record General data table:

Info record general data maintains at client level and the table 'EINA'. here reminders can
be copied from material master purchasing view and still editable here to this particular
vendor combination.

Vendor Material Number:

Enter material number which is using in vendor company. after receiving our Po vendor
easily identifies order material with their material number and quick deliveries are
possible.

Vendor Material group:

It specifies material group which is using for this material in vendor ERP system.

Points:

If this vendor is giving any points based on purchased quantity for offering rebates and
refunds to us as per rebate agreement or subsequent settlements process, then enter
points here.

Sales Person/Telephone Number:

Vendor company sales person and telephone number can copies from vendor master and
still editable here.

3
Return Agreement:

In supplying change process enter who is the next vendor for this material i.e., one step to
behind this vendor.

The exact purpose is if material scarcity is there with the main vendor then we can
approach with prior vendor or we can negotiate then conditions (Prices) with prior vendor
and these prior vendor prices can be determined to PO. Generally prior vendor can be a
original manufacturer of this material.

Order Unit:

It is copied from material master and still editable here.

variable order Unit:

If active is selected then the copied order unit from Info record still editable in PO.

Certificate category:

It specifies the below certificate no and validity etc., fields are mandatory or optional fields.
vendor can have ISI or ISO certifications in details for his company and for this material
then enter the certificate type, validity and in which country, region, that certification
received to that vendor etc.,
SPRO MM Purchasing Purchasing Info record Maintain
Inspection certification category.

Go to existing certificate details, for which fields indicators are selected these are mandatory for
Info record.

Manufacturer:

Enter original manufacturer (Vendor No.) of this material.

Note: manufacturer no can be copies from material master purchasing view to Info record.

Available from/Available to:

It means this mat in po date is out of this from and to date.

System gives a warning or error message. If from and to dates are not mentioned in Info
record. PO can be created in any date.

Standard Quantity:

It is normally ordering quantity for this material to this vendor. Based on this standard
quantity system calculates effective price in vendor evaluation and price determines
automatically based on scales to purchasing documents.

Minimum/Maximum Order Quantity:

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Minimum order quantity Say Dr. (optional)/ Maximum order quantity say 200 (optional)

If PO quantity is less than its minimum quantity or greater than its maximum quantity
system gives a warning or error message in PO.

Remaining Shelf Life:

It can be copies from material master (Store 1 view) and still editable here.

Tolerance under delivery limit/Tolerance over delivery limit:

These limits can be copies from material master purchasing value key.

GR Based IV:

This indicator defaultly comes in select or un select mode based on vendor master and still
editable here.

Tax Code: (T Code FTXP)

It is used to calculates tax amount on material net prices (Tax codes are created in FI
module as follows..)

 after entering T code

 country
 enter new tax code

Tax type/Tax percentage rate:

Input tax Click save

Net Price:

No Cash Discount:

If we set this indicator there in PO no cash discount condition type (SKTP) will be picked
even though terms of payment is maintained in PO header level.

Note: Info record Purchase organization data table is 'EINE'.

Click Conditions Button

Note: Info record condition type data table ' KONP'

Enter Valid from ---------------- Valid to

Cond Type Name Amount

PB00 Gross Price 100/pc

FRA1 Freight percentage 5%

5
 ZA01 Surcharge on gross price 2%

Select any condition type say PB00 and click details button

For this particular condition type, we can also give lower limit and upper limits so that
in PO if condition type values exceeds this limits, system gives warning or error
message.
If vendor is giving any scales for this materials say Gross price, then select that gross
price condition type and click scales button.

Scale Type Scale Quantity Amount

From 1Pc 100.00

100+ 90.00
200+ 80.00
Note: Scales also possible for freight and surcharge type conditions etc.,
If vendor is giving any free goods or bonus goods for this material say Buy 100 get 5 pcs
free then click free goods button.

Info type Order Limit Min QtyFrom are fee goods Free Goods
0 BT 100 100 5 1. Inclu/2. Exclu

Exclusive :

PO 100 Pcs GR 105 Pcs IR 100 Pcs

Rs. 100/Pcs 5 Pcs are free Rs. 100/Pc
5 Pc are free Free goods can be same
or different

Inclusive:

PO 100 Pcs GR 100 Pcs IR 95 Pcs

Rs. 100/Pc 5 Pcs are free Rs. 100/Pcs
5 Pcs are free free goods must be same material/different

Back and save

Here info record number is created based on number ranges.
Note: If validity period is over then enter different prices in next validity period as follows..

 Go to Info record change mode i.e., ME12

 Enter same vendor
 Enter same material
 Click enter
 Click condition button
 click new validity period enter
 enter next valid from and to dates

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  and enter relevant gross prices and freight amounts for this period which is given by
vendor and click save
T Code Description
ME15 Flgged for deletion of Info record
ME14 To display changes of Info record
MEMASSIN Mass maintenance
ME1L To display Inforecords by Vendor
ME1M To display Info records by material
ME1W To display Info records by Material group
ME1E To see updated quotation price entry in Info record.

Create Info record without material master & with material group: (T Code ME11)

 Vendor Number
 Dont enter Material number
 Purchase Organisation
 Plant (optional)
Enter Extra mandatory fields i.e., material text, material group and order unit and sort
term.
Note: Sort term differentiate by Info records which belongs to same vendor and material
groups and without material master. Enter required details in all the screen and save.

Source List Record:

It contains list of approved vendors and blocked vendors to supply for a particular material
and to a particular plant.
Logistics MM Purchasing Master data Source List

Maintain (T code ME01).

 Enter Material Number

 Plant
 click enter

Valid frm Valid to Vendor P. Org P. Plant Fix Block

Description

7
Source List record Table-------- EORD

8
SAP MM

[PURCHASING]
PURCHASE REQUISITION, RFQ, MAINTAIN QUOTIONS, REJECT QUOTATIONS
 PURCHASING

PURCHASING:

We can procure materials or services by negotiating terms and conditions from external
vendor or from internal plants in standard process or in consignment process or in sub
contracting process etc.,

Types of Purchasing Documents:

1. Purchase Requisition (Internal Purchasing Document)

2. RFQ/Quotation (External Purchase Document)
3. Purchase Order (External Purchase Document)
4. Contract (External Purchase Document)
5. Scheduling Agreements (External Purchase Document)

Document Type:

In any purchasing document, document type entry is must and this document type
controls the functionality of purchase documents.

Document type control functions are

a) Number assignment
b) Field Selection
c) Which item categories to be allowed or not

Item Categories:

It defines how the line item procurement has to be controlled i.e. the item has to
procure in standard process or in Consignment process or in Sub contracting process etc.,

Note: It will be given an item level.

SPRO MM Purchasing Define external representation of Item

categories

2
 Item Categories Text for Item Category
Ext
Standard
B Limit
K Consignment
L Sub Contracting
M Material Unknown
S Third Party
T Text
U Stock Transfer
W Material Group
D Service

Select any Item category and click detail button and observe the selected controlled
functions i.e., if we select this particular item category in purchasing document (PO/PR etc)
that is controls for that line item the material number is mandatory or optional or not
allowed and acct assignment category is mandatory or optional or not allowed and
Inventory management (Stock) is mandatory is or optional or not allowed and GR/IR
indicators should come defaultly in check or uncheck mode in PO and changeable are not
there indicators in PO etc.,

Note: It is not possible to create now item category or to edit existing item category
options, it requires we can edit only item category text or external symbol.

Purchase Requisition:

This document initiates the procurement process and it is a request to purchase

material or service for same user department purpose. PR can be created manually by user
or automatically by system i..e., via MRP or SD Doct. or PM doct. or APO etc.

PR IMG Settings:

SPRO MM Purchasing Purchase Requisition Define Number

ranges ( T Code OMH7).

 Click Intervals

already existing Number ranges intervals are there, suppose for service PR's or for Sub
contracting PR or for MRP PR different number range services/Intervals required then
define New Number range series as follows..

 click Interval
NO. From Number To Number Click enter and Click save
3
**Number Range Table 'NRIV'
 Back to IMG
 Define screen layout at document level

Note: In real time also pre defined field selections will be there, as per business
requirement we can define new field selections also. Suppose for Service PR's or for Sub
contracting PR or particular user PR different field selections is required then define new
field selections as follows..

Select any existing field selection say 'NBB' and click copy as button and enter new
field selection key as 'YBB' and click enter.

Select new field selection key and click detail button. In field selection group click on
each one and select PR fields as per required or optional or display suppose purchase
group as required entry.

 Back and Save

 Back to IMG
 define document type
 enter

NOte: In real time also existing document type will be there, if different Number ranges
required or different field selection is required then define new document type as follows..

Select existing document type say 'NB' click copy as enter new document type as 'YB' and to
that new document type assign new number ranges and new field selection key.

 Click enter
 Copy all
 Select new document type and click allow item category
 Click new entries and enter required item category and save

Processing Time:

Number of working days to process or convert PR into PO in purchasing department

is knows as Purchase processing time.

Note: PR Item delivery date can be calculated with this purchase processing time + material
master planned delivery time (MRP2 View).

Create Purchase Requisition: (T Code ME51N)

Logistics MM Purchasing Purchase Requisition Create

N -- Njoy transaction.,
4
** Before in EC 4.6 version ME51 was using.

Document Type: Say 'NB' or Created 'YB'.

Source Determination:

If we set this indicator, system will assign sources or vendors for all items in PR it self from
quota arrangement (First Priority) or Source List or Contract or Info record and later PO
will be created to that vendors only which is called as optimized purchasing.

Account Assignment Category:

It specifies to which consumption G/L account the line item value has to be posted. If line
item is required for consumption purpose, then only enter relevant account assignment
category, if item is required for stock purpose leave assignment category field as blank.

SPRO MM Purchasing Account Assignment Maintain Account

assignment categories (T Code OME9).

 Item Category: Select as "Standard".

 Material Number: Enter material number
 Delivery date: It picks from PR Processing time
 enter Plant
 enter storage location
 click enter

** If material type is not updated for valuation class goto T code OMS2, Click on second left
option check the value updates.

 Material data Tab In this tab manufacture part profile, manufacturer part number
and manufacturer details etc., can be adopted from material master purchasing
view. In material master manufacturer part profile, manufacturer etc details are not
maintained then in PR material data tab that fields will not appear.
 Quantities/Dates
 In this tab Quantity Order It specifies for how much Quantity order is given
for this PR Item. In this tab the planned delivery time can be copied from
material master and with this planned delivery time (Say 10 days) + PR
Purchasing Processing time (Say 1 day) the item delivery date calculates
automatically by the system.
 In this tab Open Quantity It specifies still how much quantity the PR is open
for pending.
 In this tab Closed It we set this indicator system will not expect further PO's
even though PR item is having open quantity.

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  Valuation Tab:
 In this tab Valuation Price It can be copied from material master;
Accounting 1 View and it is only for release strategy or approval purpose.
 Goods Receipt: This indicator come in display or edit mode based on
account assignment category selected or not in line item.
 Invoice Receipt: If we select this indicator system will expect invoice and
payment for this PR item. If it is not selected invoice and payments are not
allowed for this PR item. Generally samples are given by vendor with free of
cost without invoice and payment.

Note: In free goods process for main item invoice will be there where as for sub item no
invoice will be there.

 Source of Supply: vendor can be assigned automatically for all line items due to
selction of source dertermination at header level, at header level it is not selected
then for particular item click Assign Source of Supply button in source of supply
tab.
 Status Tab:
 Process Status: It specifies the status of PR i.e., for this PR any RFQ or PO
etc., created or not. It is for our information purpose only.
 Block ID: If we set Option as '1' then this PR item will be blocked for further
RFQ and PO process and enter the reason for blocking in blocking text field.
 Contact Person Tab:
 Created by: is login user id name
 Creation Indicator: It specifies how the PR is created i.e., manually by user
or via MRP or via APO (Server) or with respect to Production Order or sales
order etc., It is for our information only.
 Requisitioner: is the person who required material originally in our
company.
 Tracking Number: under this number all subsequent documents (RFQ,PO
etc.,) of this PR will be trackedl It is for our information or reporting purpose
only.
 Text:
 Item text: Click item text and enter any information about this particular
item in right side say item specifications.
 Item note: (Optional) Click item note and enter any confidential information
which should not revealed to the vendor and has to maintain in our system
only.

6
  In delivery address tab: It specirfy to which address item has to deliver from
vendor defaultly either line item storage location address (First Priority) or plant
address can be copied as delivery address and still editable here.
 Click save
 here PR No. is created as per document type number ranges.

Note: Daily buyers (Purchase officers) will take open PR reports and will convert that PR's
into PO or RFQ's as follows...

Logistics MM Purchasing Purchase Requisition List Display

General (T Code ME5A)

 Enter Purchase group

 Enter Plant
 lick execute button
 In next screen observe the list of open PR's
 Double click on PR then it will take to PR Display (T code ME53N)

7
 RFQ:
RFQ IMG Settings: (T Code OMH6)

SPRO MM Purchasing Request for RFQ/Quotation Define

Number Ranges (T Code OMH6).

 Click Execute Button

 Enter Z1 and From number to To Number uncheck the ext box (Internal)
 Enter Z2 and From Number to To number check the ext box (External)
 Click Enter
 Back to IMG

SPRO MM Purchasing Request for RFQ/Quotation Define screen

layout at docment level

 Click Enter

In real time existing field selections will be there, for a particular user different field
selection is required or for particular process (Consignment/Subcontracting etc.,) different
fields are required in RFQ. Then define new field selection key here and later to existing or
to a new document type assign this new field selection key.

 Select existing field selection key say 'ANA'

 Click copy as and enter new fields selection as 'YNA'
 click enter
 select this new field selection key 'YNA'
 click details button
 In field selection group click on each one and select each field i.e., required
/optional/display entries. suppose select terms of payment as required entry.
 back and save
 back to IMG
 define document type.

In real time also pre defined RFQ document types will be there, suppose different field
selection is required for a particular user or particular process (Consignment/Sub
contracting) or different number ranging series required for particular process
(Consignment/Sub contracting) or different combination of item categories are required
then define new document type and assign required number ranges, field selection and
allowed Item categories to that new document type as follows...

 Select existing document type say 'AN'

 Click copy as button
8
  Enter new document type say 'YN'
 and enter

Type Item Int Num RGIN Num RGEXT Field Sele

 Click save
 Select new document type
 Click allowed item categories
 enter required item categories in new entries
 click save
 back to IMG

Maintain Quotation Comments:

Against RFQ, If quotations are maintained we can view comments what are the reasons for
accept or reject the quotations. It is for our information only.

AB1 --- Rejection for Price reasons

AB2 --- Rejection for Quantity reasons
OK1 --- OK for price reasons
OK2 --- OK for quantity reasons

Create RFQ:

Logistics MM Purchasing RFQ/Quotations Request for

Quotations Create (T Code ME41)

Note: RFQ can be create with respect to PR or with respect to our line agreements or
directly with out any reference.

RFQ Type/Doct Type (Or with New Doct type as 'YN'

Language

RFQ Date

Quotation Dead Line

RFQ

Organisational Data:

Purchase Org.
9
Purchase Group

 Click reference to PR
 Enter any field details and click enter
Collective Number:
It is an identification for the imitation of bits, under this collective number whatever RFQ's
and Quotations Nos are there, that quotations prices only compared.

 Click Enter
 Select PR Item row and click adopt button or adopt+details button
 Click Vendor Address button
 Click enter and save
 Note down created RFQ Numbers for this vendor
 Enter other vendors and save and note down created RFQ numbers

Note; In address screen from Menu bar click in Header button and Message button to
Output type.

Out Put type Medium

NEU 1 Printout

 Click on communication button

 Logical destination (Printer ID) say LP01
 Back and save and exit

Note: here RFQ Nos are created based on document type number ranges.

Print/Transmit RFQ's to Vendor (T Code me9a):

Document NO.:

Application: EA

Message Type: NEU

Transmission: 1

Processing Time: 0

 Click Execute Button

 In next screen select the box and click display message button
 observe RFQ print preview
 Back
 select same check box

10
  click out put message (Then will come beside check box i.e., status of mail/fax
sent)

NOte: In print preview if RFQ title is not appearing then go to

SPRO MM Purchasing Messages Text for Messages

Define text for RFQ's

 here selct existing document type "AN" for all operations i.e., 1 & 2 and click copy as
button and maintain new document type "YN".
 Click text for document item in left side and same way for all operations i.e. 1 &2
maintain our new document type (YN) entry by copying from existing document
type "AN".
 Click heading on the left side maintain print operations 1,2,3,4 entries with our new
document type "YN" by copying from "AN".
 Click save
 Now again in ME9A observe RFQ heading is coming or not in Print Preview.

11
Maintain Quotations: (T Code ME47):

 Enter RFQ Number:

 Click Enter
 In Item row enter Vendor quotation prices i.e., Net Price or select item row and click
item condition button click enter
 Enter gross price, Freight and Discount Condition type etc., in detailed
 back again select item row and click item details button

 Info Update: (A or B etc.,):

If we set this in an existing Info record will be updated with this quotation details ie., net
price and reminders etc., . If no info record is there then a new Info record will be created
with this quotation details

 Click Save

Note: Go to Info record display observe quotation reminders and prices etc updated or not.
Repeat the same process for other quotations of vendor say with different prices in ME47.

How to attach soft/hard copies to Quotation:

If Vendor quotation soft copy or scanned hard copy has to attach to our quotation screen.

 Then go to ME47 or ME48.

 Enter RFQ No. and Click Enter
 In top left corner Click " Service or Object Button"
 Create
 Create Attachment
 Select Downloaded mail/hard copy of Vendor
 attach the file

Price /Quotation Comparison (T Code ME49):

Purchase Organisation:

Quotation No: From To (Multiple Selections)

Collective No: From To

Percentage Basis: Say Mean Vale Equals 100%

Price Calculations: Select Include, Disclude

 Click Execute Button

12
  In next screen observe proposed ranks and percentages
 Select Least quotation price and click save Market price button (Save Button)

Then for this Quotation material this quotation price will save market price in our
database, during Creating PO, PO prices are compare with market prices and accordingly
scores/points assigned to the Vendor for Vendor evaluation purpose. Send rejection letters
for high quotation price vendors and give purchase order to best quotation price Vendor.

Prepare rejection letters to rejected quotations: (T ME47)

 Go to ME47
 In Item row Select rejection Indicator R-
 Select this item row and click item details button
 In quotation comment enter AB1 ie., rejected due to price reason
 Select rejected item row
 From menu bar click item
 Texts
 Text overview
 In Item Text/Additional Text field enter the reason for rejection in detailed.
 Click Message button
 In Out put type Enter ABSA ----------- 1 Printout
 Click communication Method
 In Logical destination Select LPO1
 Back and Save
 repeat the same process for other rejected quotations

Send rejection letters to the Vendor: T Code ME9A

Document NO:

Application: EA

Message Type: ABSA (Quotation Rejection)

 Click Execute Button

 Select Check Box
 Click Display Message button
 here observe print preview and here rejected item only appearing
 back
 select check box
 Click on Output Message

13
SAP MM

[PURCHASE ORDER]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of the
contents of the document.]
 PURCHASE ORDER

PO IMG Settings:

SPRO MM Purchasing Purchase Order Define Number

Ranges (T Code OMH6)

 Click Intervals

In real time almso predifined Number ranges will be there for PO, Suppose different
Number ranges are required for imprt PO's or for STO's or for Party PO's or for SRM PO's
then define new number ranges as follows....

 Click Intervals

Y1 From No. To NO. (For Internal uncheck)

Y2 From No. To No. (For External Check )

 Click Enter
 Back to IMG
 Define Screen layout at document Level

In real time also predifined filed selections should be there as per client business
requirement new field selection keys can also be defined. Suppose at different field
selection is required for Import PO's or for Third Party PO's or for Particular user etc., then
define new field selection key to a new document type or to existing document type.

 Click any existing field selection key say 'NBF'

 Click 'copy as' button and enter new field selection key as 'ZZBF' - Import PO
 Click Enter
 Select new field selection key
 Click detail button
 In field selection group sub screen click on each one
 Select PO fields are Optional/required/display (Suppose select GR based Invoice
Verification as required entry )
 back and save
 Back to IMG
 Define New document type
 Enter

2
In real time also predefined document type already exists as per business requirement we
can also define a new document types. For example different Number ranges are required
for Import PO's or different field selections is required for Import PO's or for third party
PO's or for Particular user then define new document type with that required new number
ranges or new field selections as follows..

 Select existing document type say 'NB' and click 'copy as button'.

Doc Type Description Item Int Nrg Int Nrg Ext Field Sel

ZB Import PO 10 Y3 Y4 ZZBF

 Click Enter
 Copy all
 Select new document type
 Click allowed item categories
 Enter required item categories for this new document type
 Enter required item categories with new entries
 Select PO Item category say 'Standard' and click
 Click Link Purchase requisition type

PR Document PO Document

Doc Type Description Item Cat Doc Type Description Item Cat

ZB Import PO 10 Y3 Y4 ZZBF

 Save and Back to IMG

CREATE PO: T code ME21N

Logistics MM Purchasing Purchase Order Create

(Vendor/Supply plant known)

Note: Before EC 4.6 Version, ME21 was using for external vendor ME27 for INternal Plant.

PO Can be created with respect to PR or RFQ or Out Line Agreements or with old PO
reference or directly without any reference.

 Document Type ZB Import PO

 In Item row enter RFQ No.
 Item No.
 Click Enter
3
  Here RFQ header data is copied to PO header level and RFQ item data is copied to PO
item level.

 Header Data:
 In delivery/Invoice tab: Payment terms specifies mode of payment, installment
payments allowed or not and cash discounts given by vendor etc. Payment terms
can be copied from reference document (RFQ) or Contract.
If Po Creates directly without any reference then these payment terms can be copied
from Vendor Master but still editable in PO.
(We can change the payment terms according to quotation received from Vendor)

SPRO MM Purchasing Vendor Master Define terms of

Payment
 Inco terms: It can also copied from reference document (RFQ/Contract), If Po
creating without any reference then Inco terms can be copied from Vendor master
and still editable here.
Inco terms specifies who is the responsible upto vendor shipyard or customer ship
yard or customer plant i.e., vendor or customer is responsible and who has to bear
freight and insurance cost etc.,

 GR Message: If we set this indicator, whenever GR enter against this PO, system
will send a message about enter GR document to buyer Inbox. i.e., whoever created
this PO but output determination has to be configure for sending GR message in
SPRO.

SPRO MM Inventory Management Output Determination

Maintain output types.

In Text Tab:
 Click header here and enter any text for entire document i.e., for all items
 Click header note and enter any confidential information which should not reveal to
vendor and has to maintain in our system only.

In Address Tab:

Communication Partners Tab: The details are copied from vendor master and still
editable here.

4
In Organizational Data Tab:

Purchase Org:

Company Code:

It can be copied from reference document. If PO creates directly without any reference then
enter Purchase Organization, Purchase group etc., manually ensure purchase organization,
Company code are assign to all line items plants.

Note: PO Can be created for multiple plants but in only one purchase organisation and with
only one vendor.

In Status Tab: Observe the status of PO of all items

In Item Dates Tab:

Material Data Tab:

 Vendor Mat No: In this material data tab vendor material no can be copied from
Info record or can be entered manually here. So that it will print vendor material
number also in PO printout along without material number and description and it is
very easy for vendor to identify the ordered material with their material number in
their ERP and quick deliveries are possible.
 Info Update: In Material data tab select this indicator so that an existing Info record
details will be updated in this Po details. If already no Info record is there, then a
new Info record is created with this PO details. From PO all the details will be
updated to Info record except Net Price and Condition types.

In Quantity /Weights Tab: The ordered quantity in order units converts in Base Unit of
measure or in SKU based on conversions factors. Net weight, Gross weight, Volume units
etc., can be copied from material masters basic data 1 View.

In Delivery Schedule Tab|: If total line item quantity has to deliver in differentdates of
delivery then enter delivery dates and scheduled quantities.

In Delivery Tab: Here tolerances, shipping instructions, reminders etc., can be copied
from Info record, If No Info record is there, these can be copied from material master and
still editable here.

If tolerance limits are maintained in PO, in GR quantity varies with PO quantity, system will
accepts the GR upto these tolerance limits. If GR quantitiy exceeds these tolerance limits
also. system gives a warning or error message.

5
Stock Type: System will pick defaultly stock type as quality Inspection based on selection
of post to Inspection check in material master purchasing view.

If post to Inspection not selected in material master then stock type defaultly fixed as on
restricted use and still editable here.

Remaining Shelf Life: It can be copied from Info record or material master and still
editable here at GR if remaining shelf life is less than its remaining shelf life, system gives a
warning or error message based on measure setting.

Delivery Completed:

This indicator will be selected automatically by system upon entering GR for full quantity. If
this indicator is in check mode, system will not expect further GR for this PO item, though
any open quantity is there for item.

Latest GR Date:

This date is last date to accept the goods, If GR enter after this date, system gives a warning
or error message.

Inco term : (Optional)

If header Inco term is not applicable for a particular item then enter different Inco term at
required item level.

In Invoice Tab:

 Invoice Receipt: It specifies Invoice is there or not for PO item.

If it is not not selected there is no Invoice from Vendor and No paymen t to vendor
for particular item quantity. Generally in sample procurement items are given with
free of cost by vendor and free goods also given with free of cost by vendor.
If PR is uncheck mode, in Item row net price becomes blank and Free indicator will
be selected automatically and Item condition tab also disappears. Suppose still
Freight (FRA1 & FRA2) amount has to pay to transporter then Item condition tab
should appear to enter freight item amount condition type only. Then delvelop user
exit with Abaper.

SPRO MM Purchasing Develop enhancement for Purchasing

{Here apply enhancement "LMEXF001" in CMOD,SMOD T codes}
Question: What Enhancements you have done in Implementation Project?
Ans: Client wants to enter freight condition type amount for free goods procurement. But in
PO Item level, If IR indicator uncheck, the item condition tab suppress automatically and
not allowing to enter any freight condition type amount then we developed an
6
enhancement (LMEXF001) to enter freight condition type amount in Item condition tab
though 'IR' is in uncheck by Abaper in CMOD,SMOD T codes.
Final Invoice: If we set this indicator, system will not expect further Invoice and it will
treat last entered invoice as final invoice even though POs pending for Invoice.
GR Based IV: If we select this indicaator vendor Invoice will be verified based on GR
quantity. This indicator defaultly comes in select mode or deselect mode based on how this
indicator is selected in Info record or in vendor master. If 'IR' quantity is more 'GR' quantity
system will shows error in Invoice.
Tax Code: It can be copied from reference document i.e., from quotation, contract. If PO
creating without reference then tax code copied from Info record.
Select any Input tax code '1I' click enter and click Tax button and observe calculated tax
amount percentage wise on net price.

In Item Condition Tab: Condition types and amounts can be copied from reference
document (Quotation or contract) and from Info record and from condition records etc.,
but still condition types can enter manually here.
Based on pricing procedure or calculation schema Item prices are calculated.

In Text Tab: The text types are applicable for particular item only. Here Item text can be
copied from RFQ or Pr Item text and Info record PO text can be copied from Info record and
material PO text can be copied from material master, Purchase order text tab etc., and still
some texts can be editable here.

In Confirmation Tab: Confirmation Request or Order Acknowledgement

If set this Indicator then in PO printout it will print as " We require order
acknowledgement" for the PO. So thatafter receiving our PO, Vendor will send immediately
order acknowledgement copy to us and enter that order acknowledgement number in
confirmation tab.

In Condition control Tab:

 Print Price: If we set this indicator then only Item net prices are ptinted in
printout (See print preview)
 Estimated Price: NOrmally vendor INvoice price should same as PO price other
wise system shows error in Invoice. If we select estimated Price here. PO item prices
is not final price and only estimated price and even invoice price greater than or less
than PO price also system accept that Invoice.
 Click Message Button
 Output type "NEU"
 Medium-- 1 Printout
 Click communication Method

7
  In Local destination set as 'LP01'
 and save PO
 PO Number is created based on document type number assignment.

Print/Transmit PO to Vendor (T Code ME9F):

Document No:

Application: EF

Message Type: NEU

 Click Execute Button

 In next screen select check box and click output message button

Note: After reaching PO to vendor, Vendor will send order acknowledgement copy to us by
mail/fac etc., and in PO change mode enter order acknowledgement number in
confirmation tab.

8
9
SAP MM

[INVENTORY MANAGEMENT]
INVENTORY MANAGEMENT IMG SETTINGS, INVENTORY MANAGEMENT, STOCK TRANSFERS,
INVENTORY MANAGEMENT CUSTOMIZATION
 Inventory Management:
Managing of stock for materials in the ware house on quantity and value basis is known as
Inventory Management.

In SAP, for materials Inventory is required or not is controlled at material type and
valuation area levels.

Go to OMS2 select any material type say 'ROH' click quantity/Value updating.

If both quantities and value updating indicators are selected then these materials (ROH)
can be procured for stock purpose and at GR the received materials is placed in store on
quantity basis and material value will be booked in Inventory G/L Accounts.

GOODS MOVEMENTS:

1. Goods Receipt

2. Goods Issue

3. Stock Transfer

4. Transfer Postings

Results of Goods Movements:

1. At least one material document will be created. If material movement is

relevant to FI then an accounting document also created.
2. Stock, Stock Value and consumption value may increase or decrease based on
Goods movement.

2
 3. Moving average price, total stock and total value may decrease or increase in
material master accounting 1 View based on Goods movement.
4. IF GR enters against PO then PO history tab will be updated in ME23N.
5. If WM module is there then after any goods movement if transfer requirement
(TR) No will be created.

1. GR's 2. GI's
QI
GR w.r.t PO GI w.r.t Prod. Order

For Raw mat for raw Materials

GR wrt Prod order GI wrt Sales Order
for Finished for finished
Un Blocked
GR without PO GI to others (Cost -
restricted
centers, Projects)
GR W/oProd order GI to Scrap

3. Stock Transfer
a) from store to store with in plant
b) from plant to plant within/
across Plant

QI

4. Transfer
Un Blocked Postings
restricted

Movement Type:
IT is an identification for each material movement and it is '3' digit number. Existing
movement type already there with numeric and we can also define new movement types
with alphabetic, numeric or alphanumeric.
Movement type control functions are:
1. Field Selection at Item level
2. Accounting document has to create or not.

3
Goods Receipt: Entering details of any inward material movement details is known as
Goods Receipt.
GR can be entered with following reference documents:
1. With reference to PO
2. With reference to Inbound delivery
3. With reference to Material document
4. With reference to other

IMG Settings for Inventory Management (T Code OMBA):

SPRO MM Inventory Management and Physical Inventory

Number assignment Define Number assignment for accounting documents

 Click Financial accounting document type

In real time also pre defined accounting document types will be there. Select existing
accounting document type 'WE' and click details button.

Accounting document type controls the following:

1. Number Ranges
2. Which account types are allowed
3. Negative Posting allowed or not
4. Intercompany posting allowed or not etc.,

 Number Range Z1
 Account types allowed (at GR)
 Assets GL Account Material
 Click Number range Information bar
 Company Code
 Click Intervals
 again click Intervals

NR Year From No To NO Ext.

 Back to Initial screen

 Click Goods receipt document type button

4
 T Code Doct Type

MIGO_GO WE
MIGO_GR WE
MIGO_GS WE

 Click save
 Back to IMG
 Define Number assignment for material/Physical Inventory Documents (OMBT T
Code)
 Click groups
Note: For each goods movement already transactions type assigned in back ground those
are
IB -- Physical Inventory Documents
WA -- Goods Issues, transfer postings, other goods receipts
WL -- Goods Issue for delivery documents(SD) i.e., PGI
WE -- GR for PO
WF -- GR for Production order
 From Menu bar Insert from group button
 Enter group text (GR Number Ranges) (From Number TO Number)
 Click enter
 Select new group check box
 select GR Transaction type 'WE'
 Click select element button
 click element/Group button
 click save

Goods Receipt With respect to Purchase order:

Logistics MM Inventory Management Goods Movement (MIGO T

Code) (or)

Logistics MM Inventory Management Goods Receipt

For Purchase order Goods Receipt for purchase order ( T Code MIGO_GR)
Note: Before 4.6c Version several T codes were using for GR, GI etc., separately and 4.6c
onwards N Joy T code 'MIGO' is introduced to enter any goods movement with respect to
any document.

A01 Goods receipt R01 PO PO No. Plant (opt) Movement type

GR101

5
  Header Data:
 Document Date: The dates are which goods are received from vendor.
Posting Date: The date on which FI/GL accounts are posted i.e., accounting documents is
posted. Posting date period (Month) and here should be open period. Which is there in
'OMSY T Code' .
{After implementation on before Go life initially the current year and period (Month) is
maintained in 'OMSY T code' in production server. Later in every month on month end date
the current period(month) will be closed and next period(month) will be opened in
'MMPV- T Code' only. then the same will be updated in 'OMSY T code}

 Delivery Note: Enter Vendor delivery Challan/Deliver Note No.-

 Bill of Lading: If material received from overseas vendor then enter bill of lading
document which is given by vendor.
 GR/GI SLIP No: In addition to material document number GR/GI slip no. also
assigned internally or externally based on number ranges. Especially in Italy as per
their law they maintain physical records of GR/GI Slips

SPRO MM Inventory Management and Physical Inventory

Number assignment Define Number assignment GR/GI Slips

 In Quantity Tab: Enter the quantity according to vendor delivery note (Optional)
and enter actual received quantity.
 In Where Tab: Enter in which storage location and which stock type the material is
placing.

Note: Plant is not editable here.

 Stock type: Here stock type defaultly picks from PO delivery tab and still editable
here.
 In Purchase order tab: Delivery completed indicator i) Set Automatically,ii)Set
If we set automatically is selected upon entering GR for full PO quantity system will
update delivery has been completed i.e., In PO delivery tab delivery
completed indicator updated automatically.
If GR entered for partial quantity and for that GR not expecting for remaining
quantity then select "SET" here. So that delivery completed indicator will be selected
automatically in PO delivery tab. That means delivery is being completing partial GR
quantity itself. But again goods comes from vendor, still system allows to enter 'GR'.

 Select Item OK
 Click check button

6
  click Post button
 here a material document number has been created for proof of material
movement.
 observe stock as follows (T Code MMBE)
 Goto MMBE
 Click execute

Note:

 In menu bar observe the option in Environment Material Movements.

 In Extras tab we can see the stock in different units of measures.
 Observe accounting document as follows.
 Goto MIGO
 Select A04 display -- R2 Material doct.
 Enter Material No/ GR Number
 Click enter FI Document
 In Doc. Info Tab Click

Here accounting document also created and click this document numbere here stock value
increased in stock G/L Accounts with Transaction 'BSX' and GR/IR clearing account value
decreased with transaction key 'WRX'.

 Go To PO History tab in ME23N

Observe details and in delivery tab delivery completed indicator is selected automatically.

In material master accounting 1 View, total stock, total value and moving average price is
updated automatically.

7
 GL Postings at GR/IR:

Example 1:

Mat -x PO- 10 PC GR- 10 PC IR 10 Pc

Value=100/pc Rs. 110/Pc Rs. 110+Tax 10%

GL A/C AT GR AT IR Payment
(A/c Doct.)

Inven GL A/c GR Qty x PO Price

10PC x 110
IR Qty x IR Price
= +1100
10 PC x 110
GR/IR Clearing A/c GR Qty x PO Price
= +1100
= -1100
Tax GL A/c
10% on GR/IR = +110

Vendor A/c = -1210

= +1210

Bank A/c = - 1210

8
 Example :2

Mat -x PO- 10 PC GR- 10 PC IR 10 Pc

Std Price=100/pc Rs. 110/Pc Rs. 110+Tax 10%

GL A/C AT GR AT IR Payment
(A/c Doct.)

Inven GL A/c GR Qty x Std Price

10PC x 100
IR Qty x IR Price
= +1000
10 PC x 110
GR/IR Clearing A/c GR Qty x PO Price
= +1100
= -1100

Price Diff A/c = +110

= +1210
= -1210
Vendor A/c

= - 1210
Bank A/c

GR Blocked stock: For received material GR will be entered but in Quality inspection has
to do in out side warehouse it self without taking the ownership of the material then place
the stock in out side the warehouse which is called as GR Blocked Stock. Once approval is
given by quality people then release GR Blocked stock to ware house.

Plant PO to Vendor

Storage Location
GR W.r.t PO (101 M type)

Vendor
Release GR Blo-
cked stock into
Store 105 M Type GR into GR Blocked 101,103 and 105,
103 M Type
101 and 105 101,103 and 101& 105MTy effects same

9
  Step1 : Create PO for 10Pcs with Rs.100/Pc in 'ME23N'
 Step 2: Enter GR into GR blocked stock 'MIGO - T code'
 Enter Goods Receipt, Purchase Order, PO Number set M type as '103'.
 Click enter
 In where tab Storage location and stock type fields are not appearing due to '103'
movement type field selection.
 At the received quantity next select item 'OK' button
 click check and click Post.
 In 'MMBE' our stock is not increased but GR blocked stock increased and this GR
blocked is still belongs to vendor and valuated stock of our company. Tha's why no
accounting document is crated at GR with this 103 movement type.
(appears as *No subsequent document found)
 Step 3: Release the GR blocked stock into store 'MIGO - T code'
 Select A05 Release GR blocked stock; R2 Mat Document; Enter GR No.

(IF GR no is missed)

 Select A01 Goods Receipt; Purchase Order; PO Number; Set M type 105
 Click enter
 Now in Where tab storage location and stock type fields are appearing
 Click item OK; Click Check; Click Post.
 in MMBE GR blocked stock decreased and ware house stock increased and
accounting document also created.

ECC 6.0 Onwards:

103 GR Blocked stock, No accounting document

105 Release GR Block stock accounting document created
107 GR Blocked stock accounting document created
109 Release GR Blocked stock accounting document not created

Q: What is the difference between blocked stock or GR blocked stock?

Ans: Blocked stock is valuated stock our company and where as GR blocked stock is not
valuated stock of our company and still belongs to vendor.

Retrun delivery to vendor:

 Step 1: Create PO for 10 Pcs with Rs. 100/Pc

 Step 2: Enter GR With respect to PO in 101 Movement type set Item OK and click
check and Post.
10
  In MMBE stock in increased and in accounting document stock value increased and
in GR/IR clearing accounting value decreased.
 Step 3: Retrun delivery to vendor due to poor quality/damages etc., T Code MIGO
 Select A02 return delivery; R02 mat doct; GR No
 Click enter (OR)
 Enter GR; PO; PO NO.; set 122 (Mtype)
 Click enter
 In quantity tab enter full quantity or partial quantity which returning to vendor.
 In Where Tab from which storage location, and stock type material is returning to
vendor
 Enter Reason for movement = 0001 (Poor Quality)
 Select Item OK, Check and Post.
 In MMBE stock is decreased and in account document stock value decreased and
GR/IR clearing accounting value increased.

Return delivery with respect to return PO:

Already stock is there, due to poor quality or due to excess quantity the material has to
return to same or different vendor but already invoice payment is over then again
negotiate prices with vendors for returning the goods and create return PO with that price
and then return goods with respect return PO and enter credit memo to collect return
goods amount from vendor.

 Step 1: Create Return PO

 Go to ME21N
 After entering all the fields select check Box 'R' (Return Item)
 Step 2: For returning goods to vendor
 Go to MIGO
 Select GR;PO; PO Number; Set '101' M type initially at header level

11
  Click enter
 But in Where tab '161' Movement type is picked automatically
 Enter quality, Storage Locations, Stock type etc.,
 Set Item Ok, Check and Post.
 In MMBE stock decreased and in accounting document stock value decrease and
GR/IR clearing accounting value increase.
 Step3: Credit Memo
 Goto 'MIRO'
 Transaction Credit Memo
 Invoice Date
 Posting Date:
 In PO reference Tab:
 Select PO/Sched Agreement
 Enter PO No and Click Enter
 In Item row enter Tax Code
 In Basic Data also select same tax code and select calculate tax
 Enter total amount (Tax+Line item amount)
 Click Stimulate button
 Here vendor account debited that means vendor has to pay to us
 Click Post

Q: What is the difference between 122 and 161 movement types?

Ans: 122 movement type for returning goods to vendor with respect normal PO and 161
movement type for returning goods with respect to return PO.

Goods Receipt With out PO;

 Go to MIGO (Old T Code MB1C)

 Enter GR; R/o Other; M type 501
 Click Enter
 In material tab enter material number
 In quantity tab enter the quantity
 In where tab M type '501', enter Plant and Storage location
 Click enter
 In Partner tab enter vendor number
 Click Item Ok, Check and Post
 In MMBE stock is increased

12
  In Account document Stock GL account debited with transaction Key 'BSX' and
Opposite inventory G/L account credited with transaction key 'GBB' and accound
modifier 'ZOB'.

Note: In 'OMWN' tab for movement type '501' observe transaction keys and account
modifies and in 'OBYC T code' for these transaction keys and account modifies what ever
G/L accounts are assigned, these G/L accounts are determined in Accounting Document.

Goods Receipt for initial entry of stock value:

 Go to MIGO (MB1C)
 Select Goods Receipt;R10 Other; Movement type(561)
 Click Enter
 Enter Material Number, Quantity, Movement type '561', Plant and Storage Location
 Click Enter
 Click Item OK, Check and Post.
 In MMBE stock is increase
 In accounting document Inventory G/L Account debited with transaction 'BSX' and
in offsetting Inventory posting G/L account credited with transaction 'GBB' and
account modifier 'BSA' with GR Quantity x material master Price.

Note: In OMWN T code observe '561' movement type transaction keys and account
modifier and in 'OBYC' T Code for these transaction keys and account modifies whatever
G/L accounts are there, those G/L accounts are determined to accounting document.

GOODS ISSUE:

Issue of material from store to any Internal consumption purpose i.e., to production or to
cost centre etc., to external sales or to scrap is known as Goods Issue.

GI can be entered with following reference documents.

1. GI To Cost center
2. GI with reference to Reservation
3. GI with reference to others.
Goods Issue to Cost Centre:
Cost Centre: Wherever cost is incurring that is knows as Cost Centre.

SPRO Enterprise Structure Definition Controlling Maintain

Controlling area (T Code KS01)
 Click Maintain Controlling Area

13
  Click New Entries
 Controlling Area- TSPL (our Co. Code)
 Click - "Co. area=Company Code"
 again Enter Co. Code
 In assignment Control Enter "Controlling area is same as Company Code (1) "
 Click Save
 Back to IMG
 Assignment
 Controlling
 Assign company code to Controlling Area (T Code OX19)
 Enter
 Select Our Controlling Area
 Click assignment of Company Code
 New Entries
 Enter Company Code "TSPL"
 Save
 Back to IMG
SPRO Controlling General Controlling Organisation Maintain
Controlling Area
 Click Maintain Controlling Area
 Select our controlling area
 Click Details button
 Enter anything in 'Cost centre hierarchy say ZZ'
 Click enter
 Save
 Click activate components/Control Indicators
 New Entries
 Enter fiscal year
 Cost Centre -- Activate components in 1st row
 Click save
 back to IMG

Maintain Number Ranges for Controlling Documents

SPRO Controlling General Controlling Organization Maintain

Number ranges for Controlling documents
 Enter Controlling Area "TSPL"
 Click Groups Button
 From menu bar Click group -- Insert button
 Enter Text and From Number and To Number
14
  Click Insert
 Select our group Check box
 Select COIN (Co. through posting from FI)
 Select element button
 Click element/Group button
 Click save
 Back to IMG
 Controlling
 Cost Centre Accounting
 Master Data
 Cost Centre
 Create Cost Centre (KS01)
 Cost Centre Say 1000
 Enter Valid from 16.06.2013
 Click Enter
 In Extras tab Set controlling area
 Enter our controlling Area
 Name- Admin department
 Person responsiblie-- Srinivas
 Cost centre area - 4
 Hierarchy Area- ZZ
 Business Area - 0001
 Currency - INR
 Click Save
 Back to IMG

Goods Issue to Cost Centre (T Code MIGO):

 Goto MIGO (MB1A)

 A07 Goods Issue
 R10 Other
 Move type '201'
 Enter Material ,Quantity
 In Where tab Ensure M type '201' and enter Plant and Storage Location
 Click Enter
 In Account assignment tab Enter Cost Centre :1000
 Item OK, Check and Post.

Note: At GI " If Create Account 400000 for 17.06.2013 as a cost element in controlling area
TSPL" (Mesg No. K1280)

15
Then Go to Cost Element Cost element Create/Change mode (KA01/KA02) enter above
element (400000) - click Enter and Cost element Category as "1" and Save.

Note: In MMBE stock is decreased. In accounting document Inventory G/L Account

Credited with transaction key 'BSX' and consumption G/L Account (Cost Centre) debited
with transaction key 'GBB' and account modifier 'VBR' with GI Quantity X Material Price.

Note: In OMWN T Code observe 201 M type Transaction keys and account modifiers. In
OBYC T code observe assigned G/L Accounts for these transaction keys and account
modifiers and those G/L accounts only determined in accounting document.

Goods Issue to Scrap: T code MIGO (MB1A)

 Go to MIGO
 A07 Goods Issue
 R10 Other
 Movement Type 551 or 553 or 555
 Click Enter
 Enter Material Number, Quantity and Storage location
 Click Enter
 In Account assignment tab enter Cost Centre no which is created for Scrap
(optional)
 Item OK, Check and Post.

In MMBE stock is decrease in accounting document Inventory G/L Account credited with
Transaction key 'BSX' and Scrap G/L Account debited with transaction key 'GBB' and
account modifier 'VNG' with material price.

Stock Transfer:

A. 1 Step procedure, B. 2 Step procedure

Store to Store with 1 Step Procedure:

Plant (TSJU)

Supply Receive

Remove Stock from Supply store

Storage Location Storage Location
(0001) (0002)
& Place stock in receive Store
(MIGO/MB1B, Mov Type 311)

16
Note: Initially observe stock in both storage locations in 'MMBE'.
 Go to MIGO (MB1B)
 Transfer postings
 R10 Others
 Movement type 311
 Click enter
 In transfer posting tab Enter
From: Dest:
Enter Material No.
Enter Plant
Enter Store Enter Store
 Enter quantity
 Click Enter
 Item ok, Check and Post.
 In MMBE stock decreased in supply store and increased in receive store.
 Here no accounting document is created with 311 Mov Type, because material is
moving within the valuation area (Plant).

Store to Store with 2 step procedure with in Plant:

Plant (TSJU)

Supply Receive

S Loc 0001 Remove Stock from supply store to Transit S Loc 0002
MIGO (MB1B), Mov Type: 313
(1st step)

Place Stock in receive store from transit (2nd step)

MIGO (MB1B) Mov Type: 315

Step1 : Remove Stock from Supply store to transit:

 Goto MIGO
 A08 Transfer Postings or A09 remove from storage
 R10 other
 Click Enter
 In Transfer Posting Tab:
From: Dest:
Enter Material No.
Enter Plant
Enter Store Enter Store
17
  Enter Quantity in Quantity tab
 Click Enter
 Item Ok, check and Post.
 In 'MMBE ' Stock is decreased in supply store and increased in Transit but not
increased in receive store. No accounting document is created.
Step 2 Place Stock in Receive store from Transit:
 Go to MIGO (MB1B)
 A10 Place is Storage
 R02 Material Document/ Other
 Click Enter
 In Where tab Movement type 315 is picked automatically
 In Quantity tab enter actual received quantity
 Item Ok, Check and Post.

Plant to Plant with in Company Code:

A) 1 Step Procedure, B) 2 Step Procedure

Plant to Plant with 1 step procedure:

Co. Code TSPC

Supply Receive

Plant TSJU Remove stock from supply Plant & Plant TSRP
Place stock in receive Plant
MIGO ( MB1B) Mov type 301
Note: Initially observe stock in both plants in MMBE, observe prices and price controlling
indicators in both plants in MM03 accounting 1 View. Ensure the material is extended or
created in both the plants.
 Go to MIGO
 Transfer Postings
 R10 Others
 Movement type 301
 Click Enter
 In Transfer posting Tab:
From: Dest:
Enter Material No.
Enter Plant Enter Plant
Enter Store Enter Store
 Enter Quantity

18
  Click enter
 Item Ok, Check and Post
 In MMBE stock decreased in supply plant and increased in receive plant in one step.
Accounting document also created here because material is moving from valuation
area (Plant) to another valuation area(Plant).

G/L Posting from Plant to Plant:

Example 1:

Material X Material X
Supply Plant Receive Plant
S or V=100 V= 110
Movement type '301'

Supply plant Stock Value = Quantity x Supply Plant price Trans Key
= -1000 BSX
Receive Plant Stock Value = Quantity x Supply Plant Price
= +1000 BSX

Example 2:

Material X Material X
Supply Plant Receive Plant
S or V=100 S= 110
Movement type '301'

Supply plant Stock Value = Quantity x Supply Plant price Trans Key
= -1000 BSX
Receive Plant Stock Value = Quantity x Supply Plant Standard Price
= +1100 BSX
Price Diff G/L Acct (Gain) = -100 AUM

19
Plant to Plant with 2 Step Procedure:

Company Code TSPC

Supply Receive
Remove Stock from supply plant to transmit
Plant TSJU Plant TSRP
MIGO/MB1B Mov Type 303
1st Step
Place stock in Receive Plant from Transit
MIGO/MB1B Mov Type 305 2nd Step

Step1 : Remove material from supplying plant to transit:

 Go to MIGO
 A08Transfer Postings/A09Remove from Storage
 R10 Other
 Movement Type 303
 In Transfer Posting Tab
From: Dest:
Enter Material No.
Enter Plant Enter Plant
Enter Store Enter Store
 Enter quantity
 Click Enter
 Item OK, Check and Post
 In MMBE stock decreased in supply plant and receive plant stock in increased but
transit stock is increased. Accounting document created to update stock values in
both plants through stock is in transit.
Step 2: Place stock in Receive plant from transit:

 Go to MIGO
 A10 Place in storage
 R02 Material Document
 Movement type 305
 Enter receive quantity and storage location
 Item OK, Check and Post

20
  IN MMBE transit stock decreased and receive plant stock increased no accounting
document is created here, because already stock values updated in both the plant in
1st Step.

Transfer Posting from Material to Material:

Due to climatical conditions or chemical reactions some materials can lose their original
characteristics and suits to another material characteristics then move the loosed material
characteristics stock from one material (x) to another material (y). Prerequisite is both
materials must have same base unit of measure.

21
Note: Initially observe stock form supplying and receiving material in MMBE and observe
prices and price controlling indicators for both materials in material master display.

 Go to MIGO
 Transfer Postings
 A10 Other
 Movement Type 309
 Click Enter
 In Transfer Posting Tab:
From: Dest:
Enter Material No. Enter Material No:
Enter Plant Enter Plant
Enter Store Enter Store
Note: Destination plant and store can be same or different.
 Enter Quantity
 Item Ok, Check and Post.
 In MMBE supply material stock decreased and receive material stock increased.
Accounting document is created.

Change material document (MB02):

 Enter Material Document No: (GR No or GI No)

 Click Enter

It is not possible to edit values, if requires we can change text or description fields only,
Even though any field value has to change same quantity or storage location etc., then only
one option i.e., to cancel the material document and reenter the Goods movement with
correct values.

Cancel Material Document:

 Go to MIGO
 A03 Cancellation,
 R02 Material Document
 Click Enter
 In Where Tab reversal or cancellation movement type is picked automatically
 Select Item OK, Check and Post.
 In accounting document the G/L entries also reversed.

Reservations:

Reserving of material in advance for future purpose for a particular user department
purpose is called as reservation.
22
Step 1:
Logistics MM Inventory Management Reservation Create
(MB21)
 Base Date: (Material required date)
 M Type : (201)
 Plant :
(Specify material is reserving for which purpose.)
 Click Enter
 Cost Center:
 Enter Item, Material, Quantity, Plant and Storage Location
 Click Enter
 Here reservation number created as per number range in
SPRO MM Inventory Management and Physical Inventory Number
Assignment Define Number assignment for Reservations.
 Observe Reservation details in 'MMBE' and 'MB25'.

Step 2:

Goods Issue with respect to Reservations:

 Go to MIGO (MB1A)
 Goods Issue/Transfer Postings
 R09 Reservation
 Enter Reservation No.
 Click Enter
 Enter quantity and Storage Location
 Item Ok, Check and Post.
 Observe in MMBE and MB25

Note: Same way create Reservation with 301,311,501 and 261 movement types etc., and
enter goods movement with respect to reservations.

Logistics Invoice Verification:

Before 4.6C version Conventional Invoice Verification was using and 4.6C onwards Logical
Invoice Verification is introduced.

Following are advantages of Logical Invoice Verification with comparing to Conventional

Invoice Verification:

a. We can show or hid work list.

b. We can show or hide PO Structure.
c. We Can park or hold Invoice
23
 d. More allocation criteria is possible i.e., Invoice against several PO's.
e. Invoice Verification in background is possible.
f. Cross Co. Code clearing account is possible in Inter company stock transfers.

Types of Invoice Transactions:

1. Invoice
2. Credit Memo
3. Subsequent Debit
4. Subsequent Credit

Logistical Invoice Verification IMG Settings (OMR4):

SPRO MM Logistical Invoice Verification Incoming Invoice

Number Assignment Maintain Number assignment for Accounting
Documents

 Click Document Type

Already existing document types are available in real time also i.e., RE & RN etc.,

 Select 'RE'
 Click Details button
 Net Document Type If we set this indicator cash discounts will be calculated in
Invoice it self., If it is not selected, cash discounts will be calculated at the time of
payment only but not in Invoice.
 Click Number Range Information (T Code FBN1)
 Enter Company Code
 Click Interval
 For the previous screen number range define From No. and To No.
 Click Save
 Back to Initial Screen
 Click Document type Invoice Verfication Bar
 Select T Code 'MIRO'
 Click Details button
 Assign default document type 'RE' or 'RN'
 In MIRO T Code which documents type will be picked defaultly but still editable
 Back to IMG
 Maintain Number Range for Logistic Documents Transaction assign Number
Range
RD 01
RS 01
These transactions RD, RS are predifined in system.

24
 RD- For Post Invoice, RS- Cancel/Reverse Invoice, ERS, Invoicing Plan, Revaluation.
 Back to IMG
 Maintain Number Range Interval for Invoice Document (T Code OMRJ)
 Click Intervals
 here define Intervals i.e., From No. and To No. for above Transaction Number Range
 Back to IMG
 Maintain Default values for Tax Code
 Go To our Co. Code details
 Enter default Tax Code say (Y1)
 Then in MIRO this tax code will be picked defaulty in this data tab.
 Back to IMG

Enter Invoice:

Logistics MM Logistical Invoice Verification Document Entry

Enter Invoice (MIRO T Code)

Transaction

Invoice Date: (The date on which Invoice is received from Vendor)

Posting Date: (The date on which FI G/L accounts are posted in accounting
Document)

Reference: (It can be Vendor Invoice number or our PO Number)

Note: It is one of the parameter to identify duplicate/double invoices

In PO Reference Tab: Select Purchase Order/Scheduling Agreement

 Enter PO Number
 Click Enter
 In Item Row GR Quantity and amount for this quantity as per PO is picked
automatically
 In Item row select Tax Code
 In basic data also select same tax code or make it blank
 Select Calculate Tax
 Enter Amount (as per Vendor Invoice) i.e., line item amout+Tax amount

In Payment Tab:

Payment term can be picked from PO and still editable here. As per this payment term
customization either Invoice date or POsting date wil be picked defaulty as baseline date

25
and from this base line date upto payment date the No. of days are consider to calculate tax
discount.

SPRO MM Purchasing Vendor Master Define Terms of Payment

 Go to Invoice Payment Term Details

 Observe for default for base line date

Payment Method: Say Check/Bank Transfer

Part. Bank: It can be copied from Vendor Master and still editable here.

Hose Bank: Our Bank Account Details

Payment Block: Set as free for Payment

In Details Tab: Document type 'RE' or 'RN'. This document type will be picked defaulty
based on OMR4 T Code.

**This document type controls accounting document number assignment, which G/L
Accounts has to be triggered in accounting document etc.,

 If Document type is 'RE' then cash discounts are not calculated in Invoice but
calculates at the time of Payment.
 If Document type is 'RN' then cash discounts also calculates at the time of Invoice it
self.
 Click Simulate Button
 Here observe G/L Accounts are going to posted and also observe the cash discounts
calculated or not based on document type 'RE' or 'RN'
 Click Post
 Here Invoice document No is created as per transaction 'RD' Number Range.
 Goto Invoice display fromMenu Bar (T Code MIR4)
 Click Follow on documents
 Here accounting document No ranges picked based on document type (RE) Number
Range in (T Code OMR4)
 Click this document no and observe G/L Account.

CREDIT MEMO:

This Document is entered to collect amount from vendor say for return delivery goods to
collect excess amount which is already paid to vendor.

Step 1: Create PO for 10 Pcs

Step 2: Enter GR with respect to PO for 10 Pcs

26
Step 3: Enter Invoice for 10 Pcs with 100Rs/Pcs + Tax with respect to PO in MIRO T Code.

Step 4: Return deliver to vendor say 2 Pcs due to poor quality.

 GO to MIGO
 Return Delivery; Material Document No; GR Number
 In Quantity tab enter return quantity say '2' Pcs
 In where tab movement type '122'
 Item Ok, Check and Post

Note: If vendor is not going to place these 2 return pices again to us then collect these 2 pcs
amount from vendor. Because already Invoice entered for 10 Pcs, But GR is only for 8 Pcs.

Step 5: Credit Memo

 Go to MIRO
 Transaction : Credit Memo
 In Po Reference tab: enter sam PO number Click Enter
 In Item Row enter manually quantity as '2' pcs and amount as per PO 100Rs/Pc.
 In item Row Enter Tax code
 In basic data select Tax calculate Tax as Ok
 Enter amount
 Click Simulate button
 Here Vendor account is debited (+), than means Vendor has to pay us.
 Click Post.

Example 1:

 Create Return PO for 10 Pcs with 100Rs/Pc

 Enter GR with respect to Return PO
 Enter Credit Memo with respect to return PO to collect the amount from vendor for
the returned goods.

Example 2:

 Create PO for 10 Pcs with 100Rs/Pc and uncheck GR Based IV in Invoice Tab
 Enter GR Invoice for 10 Pcs with 100 Rs/Pc+Tax
(Assume Remaining 2Pcs vendor is not going to deliver, But already Invoice entered
for 10 Pcs instead of GR Quantity 8 Pcs Then collect 2 Pcs amount from vendor by
entering Credit Memo as follows..)
 Go to MIRO
 Transaction : Credit Memo
 Enter Same PO Number

27
  Click Enter
 In Item row enter manually quantity as '2' and amount 100Rs/pc
 In basicdata tab click calculate tax
 enter total amount
 Click Simulate button
 here vendor account debiting (+) that means vendor has to pay to us
 Click Post.

Manual Payment Block:

Step 1: Enter PO for 10 Pcs with 100Rs/Pc

Step 2: Enter GR also for 10 Pcs

Step 3: Enter IR also for 10 Pcs with 100Rs/Pc

 In MIRO and in Basic data enter total amount and tax

 Here IR quantity is same as GR Quantity and IR amount is same as GR amount, No
variances but still Invoice can be blocked manually due to funds problem or any
other reason
 In Payment tab Payment Block as A or B etc
 Click save
 Here Invoice is created but blocked for payment

Step 4: Release Blocked Invoice:

 Go to MRBR
 Enter Co. code
 Enter Invoice Number
 Enter Vendor Number
 Select 'Release Manually'
 Select 'Manual Payment Block'
 Click Execute
 In next screen select Item row (Observe reason for payment block)
 Click release Invoice Button and Save

28
Delivery Cost:

1. Planned Delivery Cost, 2. Un Planned Delivery Cost

1. Planned Delivery Cost:

The delivery cost i.e., Freight which are planned PO itself are known as Planned Delivery
Cost. For planned delivery cost a separate Item can be generated in Invoice or a separate
Invoice is Posted.

Step 1:

 Create PO for 10 Pcs

 In Item row condition tab enter Gross Price say 100Rs/Pc
 Enter Freight Say 'FRC1' as 10 Rs/Pc
 But here Freight Condition type is not added in Net Price, because Statistic Indicator
is selected for Freight Condition type in Pricing Procedure (M/08- Tcode)
 Select Freight Condition Type amount 'FRC1" and Condition details Button
 Enter Freight Vendor can be Main Vendor or different Vendor Say different Vendor
 Back and Save

29
Step 2:

 Enter GR for 10 Pcs and Observe Accounting document

Step 3:

 Enter IR for Goods Only from Main Vendor

 Goto MIRO
 Transaction: Invoice
 In PO Reference Tab: Enter PO Number
 Click Enter
 In PO Reference Tab: Select Goods/Service Item
 In basic data Tab: Enter total amount + Tax
 Click Simulate Button and observe G/L Accounts and Post.

Step 4:

 Go to MIRO
 Transaction : Invoice
 Enter Same PO Number
 Click Enter
 In PO Reference Tab: Select Planned Delivery Cost
 Click Enter and enter amount and tax
 click simulate button
 Observe G/L Accounts and save

30
 PO for 10 Pcs GR 10 Pcs IR for Goods 10 Pcs IR for Freight 10 Pc
Net Price=100/pc Rs 100 Pc+Tax Rs. 10/Pc+Tax
Freight 10/Pc

G/L Accounts At GR At IR Goods At IR Freight

Inven GL A/c GR Qty x Net Price

(BSX) 10PC x 100
= + 1000
IR Qty x IR Price
GR/IR Clearing A/c GR Qty x Net Price
(WRX) = +1000
= -1100

(GR Qty x Freight)

Freight Chrgs A/c = -100
= +100
(FR1)
= +100
Tax on Goods
(VST)
= +1210
Main Vendor A/c
= -1100
(KBS) = - 1210

Freight Vendor
(KBS) = -100

Park Invoice:

31
For Junior people we give authorization to park Invoice i.e., to enter vendor Invoice price
details in our system only. But later this parked Invoices will be reviewed by managers and
they will post parked Invoices.

Step 1: Create PO

Step 2: Enter GR

Step 3: Park Invoice

Logistics MM Logistical Invoice Verification Document Entry

Park Invoice. ( T Code- MIR7)

 Enter PO Number Click Enter

 In basic data enter Tax and amount
 Click simulate and observe G/L Accounts
 Click Save parked document
 Here Invoice No. is created but parked
 Go to Parked Invoice display (MIR4)
 Click follow on document
 Here accounting document number is created but G/L Accounts are not yet posted.

Post Park Invoice:

 Go to MIRO
 Click Show Work List
 In left side Click parked Invoice Document No.
 Review details and Post.

Hold Invoice:

During entering Invoice , If any insufficient data is there say exact posting date or payment
term etc., are not yet known then hold the Invoice temporarily and later whenever the
missed data available then Post the held Invoice.

Step 1: Create PO

Step 2: Create GR

Step 3: Create IR

 Go to MIRO
 Enter PO Number
 Click Enter
 In Basic data tab enter tax and amount
32
  Click hold button
 Here Invoice No is created but in Hold
 Go to held Invoice display and click follow on document button, But no accounting
document is created against held Invoice.

Step 4: Post the held Invoice:

 Go to MIRO
 Click Show Work List
 In held documents double click held Invoice document No. enter the missed entry
and click Post.

Note: As a rule held Invoice will be posted with in the same day and Invoice can be parked
for longer period also.

Print/Transmit ERS document to Vendor: (MR90 or MR91- Tcode):

 Enter Output Type: ERS

 Transmission Type : 1
 Invoice Document No:
 Click Execute
 In Next screen select row
 Click print preview
 Back and click process or execute button

Cancel Invoice document: (MR8M - T code)

 Invoice Document No:

 Reversal Reason : 01
 Click Reverse or Save
 Go to this Cancel Invoice document. But Cancelled Invoice treated as Credit memo.
And in accounting document G/L entries are reversed.

33
SAP MM

[SPECIAL PROCUREMENTS]
PIPE LINE PROCUREMENT, CONSIGNMENT PROCUREMENT, SUB-CONTRACTING, THRID PARTY
PROCUREMENT
 Special Stocks/ Special Procurement:

1. Pipe Line, 2. Consignment, 3. Sub contracting, 4. Third Party, 5. Stock Transfers, 6. RTP, 7. Sales Order
Stock, 8. Project stock.

1. PIPELINE:

In this process material goes continuously from Vendor premises to our plant premises continuously
through a pipe or cable/ Wire. Ex: Oil, water, gas and power.

In this process No PR, PO and GR and whenever material is required, withdrawl it from vendor pipeline
and for this withdrawled quantity only settle the liabilities to vendor.

Info record Goods Issue Send GI Doct to Vendor

Mat-x, Vend-X, Plant -x, From Pipeline to Prod order
Pur Org.(Std P org) (MB90)
or to Cost Center),
Info cat: Pipeline, Mat-x, Vend-x,
1st june -31st Dec,Rs. Quantity-10 Kg.
100/kg

Automatic Settlement (Automatic IR)

Settle Pipeline liabilities to Vendor for
Withdrawl or GI Quantity

Mat-x, Vend-x, Rs.100/Kg, Qty: 10 Kg

Send Settlement doct(IR)

to Vendor (MR90/MR91)

IMG Settings:

 Go to OMS2
 Select material type 'PIPE' and click detail button
 Select pipeline mandatory, in user department sub screen uncheck Storage view.
 External PO- '0', Internal PO- '0'
 Click Quantity/Value updations
 Uncheck quantity and value updating Indicators because for pipeline materials Inventory is not
maintained in the store.

2
TEST SCENARIO:

Step 1 Create Material:

Create material master for pipeline material say for Gas with material type 'PIPE' in 'MM01'.
Here Valuation class is optional, because value updation is not selected in 'OMS2'
Click Save

Step 2: Create Info record

Go to ME11
Enter Vendor, Material number, Purchase Organization and Pipe line
Set Info category as 'PIPELINE'
Note: If Plans having more than one Purchase organization, then enter Standard purchase
Organization here
Click Enter
Enter Net price, Tax Code
Click Conditions and enter Pipeline validity periods and condition type and amounts in detailed
Click Save.

Step 3: GI from Pipe line to Cost Center or Production Order:

Go to MIGO (MB1A)
Goods Issue, R10 Other, Movement Type '201 P'
Click Enter
In Material Tab: Enter Material No. and quantity
In Where Tab: Enter Movement Type 201 P and Plant
Click Enter
In Partner Tab Enter Vendor No.
In Accounting document cost center consumption G/L account debited and account Payable
Clearing G/L Account credited with GI qty X Info record Price.
In OMWN- T code for 201 P movement type observe whatever account transaction key and
account modifiers.
Go to OBYC T code observe G/L accounts which are assigned to above transaction keys and
account modifiers and these G/L accounts are picked in accounting documents.

Step 4 Print/ Transmit GI Document to Vendor:

A). Maintain Condition Record:

Go to NACE, Select application 'ME'

Click condition record, Select output type 'WA)!'
Click condition Records
Transaction type 'WA'
Print Version '1'

3
 Print Item '2'
Execute
Medium '1' Print out
Click Communication
Output type = 'LP01'
Click Save

B) Send GI Document To Vendor

Go to MB90
Output type 'WA01'
Transmission Medium '1', Material Doct. No:
In Next Screen we can see the print preview then click process/execute Button

Automatic Settlements: (Automatic IR)

(Setting Pipeline liabilities to vendor for withdrawal quantity)

Logistics MM LIV Automatic Settlement Consignment and

Pipeline settlement (MRKO- T code)

Enter Co. Code

Vendor NO, Plant and Material No.
Select Pipeline Only
Initial select display
Select Withdrawals not settled, Settled withdrawals
Click Execute
Observe details in next screen and back
Now select Settle, and Click Execute
In Information text field If no message was found error comes then maintain condition record in
'NACE T Code with application 'MR' and with output type 'KONS'
Observe automatically created settlement document no and click this document and observe
G/L entries and transaction keys.

Print/Transmit settlement document to Vendor:

Go to MR91
Out Put Type 'KONS'
Enter Document No
Click Execute
In next screen click print preview button
Observe the details and back
Click Process or execute button.

4
 CONSIGNMENT

Consignment: In this process Vendor will place his material stock in our plant premises and
immediately no invoice from vendor and no immediate payment to Vendor. Whenever material
is required, withdrawal it from vendor consignment stock and consume it for production or to
any internal consumption purpose and settle liabilities to vendor for this withdrawal quantity
only.

RFQ Quotation(ME47) Info Record

PR (ME41) (Info update) Mat-x, Vendor-x, Plant-x,
Pur. Org(std),Price: /pc
Mat-x, Qty-x Info Cate: Consignement

Item Category: K Compare Quotations

ME49

PO W.r.t. Quotation/RFQ

Mat-x, Vendor-x, Qty- 1000 Pcs

GR W.r.t. PO
Mat-x, Qty-1000 Pcs, Store-x, Vendor-x
(is Called as Consignment Stock.)

Print/Transmit GI to GI (From Vendor Consignment stock to

Vendor (MB90) Cost Center or Prod. Order
Mat-x, Qty-100 Pcs, Vendor-x, Rs.100/Pc

Automatic Settlement (Like IR) Send Automatic

Settlement document to
Mat-x, Vend-x, Qty: 100 Pcs, Rs. 100/Pc Vendor (MR91)

Payment to Vendor

5
 Test Scenario:

Step 1: Create PR in ME51N

 Go to ME51N
 Set Item Category 'K'
 Enter Material No., Quantity and Plant
 Click Save

Step 2: Create RFQs in ME41

 Go to ME41
 Enter Purchase Organization (If plant is having more than one Purchase organization,
then enter Standard Purchase organization here)
 Click 'Reference to PR' button
 Enter PR No
 Click Enter
 Enter Collective Number
 Click Enter
 Select PR Item Row, Click Adopt or Adopt + details button
 Here also Item Category is 'K'
 Click Vendor address button
 Enter Vendor No
 Click Enter and Save (**Send RFQ's to Vendor in ME9A)

Step 3: Maintain Quotation in ME47

 Go to ME47
 Enter RFQ No.
 Click Enter and enter Prices
 Select Item Row and click Item details button
 Check Info Update
 Click Save
(Note: Observe updated Info record with Info Category as Consignment in ME12 or
ME13.)
 In condition Screen enter Consignment validity Period
 Click Save
(Note: compare multiple quotations in ME49)

6
Step 4: Crate PO in ME21N
 Go to ME21N
 In Item row enter RFQ no. and click enter
 Here also Item category 'K' and Standard Purchase Organization etc. will be copied
 Due to item category 'K', Item Net price grayed out and Item condition tab is also
disappears. Because at the time of automatic settlement prices are picked from Info
record but not from PO.
 Save PO.

To See how the field selections were maintained by Item Category 'K' is as follows..

SPRO MM Purchasing Define External Representation of Item

Categories

Go to Item Category 'K' details button

Here Goods Receipt , GR Non Valuated Indicators are linked to PO in check
mode but firmed (hided) in PO.
IR Indicator also linked to PO in uncheck mode and firmed in PO, that means no
Invoice in MIRO, instead of that automatic settlements will be entered in consignment
process.

Step 5: Enter GR with respect to PO

 Go to MIGO
 Goods Receipt; PO Number; Movement type '101'
 Click Enter
 But in Where Tab 101 'K' is picked automatically
 Item OK, check and Post.
 In 'MMBE ' our stock is not increased but vendor consignment stock is not valid stock of
our company and it still belongs to vendor. That's why no accounting document created
at GR with 101 'K' movement type.
(In OMWN T- code No transaction keys for 101 'K', that's why no accounting document
created.)
Step 6: Create GI (From Vendor consignment stock to Cost center 201 'K' or to Production Order
261 'K')
 Go to MIGO (MB1B)
 Goods Issue; R10 others; Movement type 201 'K'
 Click Enter
 Enter Material No.
 Enter Quantity Say 100 (Which was consumed by Cost center/Prod dept )

7
  In Where tab enter Plant and Storage Location
 Click Enter
 In Partner Tab Enter Vendor No.
 In account assignment tab enter Cost center No.
 Item OK, Check and Post.
 In MMBE Vendor consignment stock is decreased
 In accounting document consumption G/L account debited (+) with transaction key
'GBB' and account modifier 'VBR' and account payable G/L account credited (-) with
transaction key 'KON' (No account modifier) with GI qty X Info record Price.
 Observe OMWN and OBYC T Codes for transaction keys, G/L accounts and account
modifiers.

Step 7: Maintain Condition Record for consignment out put type:

(Before automatic Settlements)

 Go to NACE
 Select application type 'MR'
 Click Condition Record button
 Select 'KONS'
 Click condition record
 Enter Co. Code, vendor
 click Execute
 Enter Vendor No., Set Print Medium '1'
 Click Communication button
 Set as 'LP01' and Save.

Step 8: Automatic Settlements (LIKE IR) (MRKO- T Code)

(Settle consignment liabilities to vendor for withdrawal or GI Quantity only)
 Go to MRKO
 Enter Co. Code, Vendor No., Plant and Material
 Select Consignment Only
 Select settle
 Click Execute
 In next screen observe created settlement document and click this document no. and
observe G/L Entries

8
Step 9: Print/Transmit Settlement Document to Vendor (MR91)
 Go to MR91
 Enter Out Put type 'KONS'
 Enter document No.
 Click Execute
 Observe Print preview and click process or execute button
Note: Try to enter multiple GIs but once in a week or once in a month a single invoice can be
generated for all goods issued quantity in 'MRKO'.

Note: If consignment validity is over as per Info record, but still some quantity is left over then
convert this left over quantity from vendor consignment stock to our own stock in 'MIGO'
(Transfer posting, Others) or 'MB1B' with '411 K' movement type and settle liabilities for this
owned stock to vendor in MRKO, then in MMBE vendor consignment stock decreases and our
ware house stock increases and observe accounting documents at GI and MRKO.

9
 SUB CONTRACTING

In this process material is procured from Sub Contractor by providing required in put materials or
components from our company to Sub Contractor. We can go with Sub Contracting process due to lack
of facilities or lack of skilled technicians or lack of time.

Mat-x
(Finished Material

Mat-Y Mat-z
Semi Finished Semi Finished

Mat-C Mat-D
Mat-A MAT-B
Raw Mat Raw Mat
Raw Mat Raw Mat

( Provide Input material Sub Contractor

i.e., Mat-c 10 Pc,Mat-d 10 Pc
to Sub contractor.)

10
 RFQ w.r.t PR Maintain Quotation
(Info Update)
Create BOM for PR Mat-Z ,10 Pc
End Produc i.e., Mat-Z Item Cate-L

Quotation
( By providing input materials to sub Cont. Comparison
i.e., Mat-c 10 Pcs, Mat-d 10 Pcs )

PO w.r.t. Quotation/PR
Mat-z, Vend-z, Qty- 10 Pcs, Rs. 100/Pc
Item Category 'L'
( By providing input materials to sub Cont.
i.e., Mat-c 10 Pcs, Mat-d 10 Pcs )

(Provide Component or input materials to Sub contractor)

IR 10 Pcs GR for end a) Via Transfer Posting (IM) MB1B, '541' M Type
product (Mat-z) b) Via SD Shipping process i.e., out bound delivery & PGI (T
Rs. 100/Pc+Tax 10 Pcs Code ME20)

Step 1: Create Material master for end product with material type Finished or Semi Finished.

Step 2: Create material master for input materials or components with material type Raw or
semifinished.

Step 3: Create BOM for finished products/End Products (Mat-z)

 Go to CS01 - T code
 Enter material No (Main End Product)
 Enter Plant
 BOM Usage ('1'- Production)
 Click Enter
 Enter input materials and quantity
 Click Save

Step 4: Create PR for End Product

 Go to ME51N
 Set Item Category as 'L'

11
  Enter Material No. (End Product)
 Enter Quantity, Plant
 Click enter
 In material data tab click Components button and observe copied component details from
'BOM'.
 If already 'BOM' is not there then enter component details manually in PR or PO it self
 Back and Save

Step 5: Create RFQ

 Go to ME41
 Enter Purchase Organization, Purchase group
 click reference to PR Reference button
 Enter PR Number
 Enter Collective Number
 Click enter
 Select Item Row Click adopt+details button
 Click vendor address button
 Enter vendor and save

Step 6: Enter Quotation

 Go to ME47
 Enter prices with relevant to vendor quotation prices
 Select item row and click Item details button
 Enter Tax code and check as 'A' in Info update
 Save

Step 7 : Compare Quotations

 Go to ME49
 Compare all the quotations for best vendor

Step 8: Create PO

 Go to ME21 N
 In Item row enter RFQ No.
 Click Enter
 Here Item category is 'L'
 In material data tab click component button and observe the details, here components details
are copied from 'PR', If PO creates directly then components copied from 'BOM' and still
editable here

12
  Back and Save.

Step 9:
 If Raw material stock not there for input materials, then maintan stock in 'MB1C' with 561
Movement Type.
 Observe SC Stock Overview
Logistics MM Purchasing Purchase Order Reporting
SC stocks for Vendor (ME2O - T Code)
 Enter Vendor No,
 Enter Input materials/components provided
 Enter Plant
 Execute (F8)
 Observe already available stock at Sub contractor and yet to provide components stock to Sub
Contractor.

Step 10 : Transfer Posting (T Code MB1B)

(Provide Components/input materials to Sub contractor)

 Go to MB1B
 Enter Movement type '541'
 Enter Plant
 Click 'To Purchase Order'
 Enter PO Number
 Click Enter
 Here Components/Input Materials are copied from PO which are going to provide to Sub
Contractor.
 Click Save
 In MMBE our components stock is decreased and Sub contractor stock is increased. But still in
Sub Contractor stock is showing Plant level, but not at updated as consumed in Finish product.
That's why no accounting document is created in '541' Movement type.

Note: Still Sub Contractor stock is avaialable for /MRP.

Step 11:GR For End Product (Finished/Semi Finished)

 Go to MIGO
 Goods Receipt; Purchase Order; PO Number; 101 M type
 Click Enter
 Enter received quantity and storage location for finished products
 In Line Item row click "Tree Display" button
 Click any raw material line Item. It is updating raw material is consumed in the received end
product with 543 'O' Movement Type.

13
  Select Item OK for all line items Check and Post.
 In MMBE Components/Raw material Sub Contractor Stock is decreased at Sub Contractor
Premises and finished product is increased.
 Observe accounting documents

G/L Accounts Amount Tran Key Acct Mod.

Finished Goods Invent +10000 BSX
GR/IR Clearing Acct GR Qty(Finished x PO Price) -1000 WRX
Cost of Goods Sold (Off setting of finished Inv G/L Acct) -10000 BSA
Puchased Services G/L (Off setting entry of GR/IR) -100 FRL
account
Raw1 Inv G/L account (Quantity X Material Price) -2000 BSX
Raw1 Consumption +2000 GBB VBR
G/L account
Raw2 Inv G/L account (Quantity X Material Price) -6000 BSX
Raw2 consumption +6000 GBB VBR
Account

Question: Material x, Material y and Material z are provided to Sub contractor and finished product
Mat-A is received from Sub Contractor then at GR accounting document total how many G/L accounts
will triggered?
Ans: For each material '2' G/L accounts and additionally 2 more G/L Accounts i.e., Cost of goods sold,
Purchased Services G/L accounts and total 10 G/L accounts will triggered.

Step 12: Enter Invoice

 Go to MIRO
 Transation type : Invoice
 In PO reference tab enter PO Number
 Click Enter
 In basic data tab enter tax code and select calculate Tax and enter total amount and save
Step 13: Sub sequent Adjustment (Optional)
If Vendor informs any under consumption of components in finished product then adjust the actual
consumption of components in the received finished product as follows..

 Go to MIGO
 A11Sub Sequent Adjustments; Purchase Order
 Enter same PO Number
 Click Enter
 In where tab Sub sequent adjustment movement type '121' is showing for finished product and
in Standard SAP only for 121 Movement type there is no reversal movement type.
 Open Tree Display button in line item row
 Select any raw material line item say 'RAW1'

14
  In where tab initially same '543 'O' movement type is showing
 In Quantity tab enter 2 Pcs
 Select Under consumption/Short Receipt
 But in Where tab automatically 544 'O' movement type is picked for under consumption/Sub
sequent adjustment of component.
 Select Item Ok for all line items check and Post.
 In MMBE the under consumption component stock (Raw1) is showing at Sub Contractor
premises
 And observe accounting document also
 If required receive under consumption component stock from Sub contractor premises to our
plant with 542 Movement type in MB1B or MIGO without PO reference only.
 Then in MMBE Sub contractor stock is decreases and our Ware house stock is increases for
components.

Sub contracting with Co Product and Scrap:

Note: While producing main finished product with input materials, normally another product also
produces along with the main product and that product is called as Co- Product.

Step 1: Create Material Master For Co Product.

 Go to MM01
 Select Material type finished or Semi Finished
 Select MRP 1 MRP 2 Views
 Enter PD01 in MRP Profile
 Select Co. Product Check box in MRP 2 View
 Enter other details and save

Step 2: Create BOM for Main End Product

 Go to CS01
 Enter Plant
 Enter '1' in BOM Usage
 Click Enter
 Enter components/input materials and Co products and quantity.
 Select Co Product line item Click Item Button (F7)
 In basic data tab Select Co Product in General data
 Back
 If Scrap is generating for raw material then select raw material line say 'Raw 1' and click Item
detail button
 In basic data tab enter operation scrap in % Net ID
 Click Save

15
Step 3 Create PO for Main End Product

 Go to ME21N
 Item Category 'L'
 Enter Material No, Quantity, Price , Plant and Vendor(Manufacturer of Main End Product)
 In material Data tab Click 'Component' button and observe copied components and Co Product
details from 'BOM'.
 Back and Save
 Observe in 'ME2O'.

Step 4: Provide Components to Sub Contractor:

Assume stock is not there and procure this raw material from another vendor and deliver directly from
vendor to Sub contractor (Manufacturer of Main End Product) as follows..

A) Create PO for components/raw materials to different Vendor.

 Go to ME21N
 Enter Different Vendor No
 Item Category 'Standard'
 Enter Material, Quantity, Plant
 Click Enter
 In Item delivery address tab enter Sub contactor (Vendor NO) (Manufacturer of main end
Product)
 Select SC No.
 Click Yes
 Click Save
 Observe ME2O

Step 5: Enter Logical GR for Components/raw materials with respect to PO

 Go to MIGO
 Goods Receipt; Purchase Order; PO Number, Movement type 101
 Click enter
 In Partner tab it is showing goods delivery from vendor to Sub contractor and in Where tab
Movement type 101 'O' is picked automatically
 Select Item OK for all line items Check and Post.
 Observe MMBE and ME2O for components and here components are showing in Sub Contractor
premises which is called as sub Contractor Stock.

16
Step 6: Enter another GR for finished Products.

 Go to MIGO
 Goods Receipt; Purchase Order; PO Number; Movement Type 101
 In line item open tree button and select Co-product line item
 In Where Tab 545 'O' movement type is selected for co product and no storage location is
showing for Co product and this co product is still there in with Sub Contractor premises only.
 Select Item OK for all line items, Check and Post.
 In MMBE Co Product stock is showing at Sub Contractor premises. If requires transfer Co
Product from Sub Contract premises to our Plant in MIGO or MB1B with 542 Movement type
with PO reference. Then Co Product stock decreases at Sub contractor premises and Increases in
our Co Product own stock.

Step 6: Enter Seperate Invoices for Each PO in MIRO

A) IR for externally procured input materials

 Go to MIRO
 Enter Invoice Date
 Enter PO Number (PO for externally procured raw materials)
 Click Enter
 Check Calculate tax
 Enter amount and save.

B) IR for main end product

 Go to MIRO
 Enter Invoice Date
 Enter PO Number (PO for main end product)
 Click Enter
 Check Calculate tax
 Enter amount and save.

PROVIDE COMPONENTS TO SUB CONTRACTOR WITH SD SHIPPING PROCESS:

PRE REQUISITES:
Create Same Sub contracting Vendor as a customer in 'XD01'- T Code and assign that customer No. in
Vendor master control screen.

17
  Go to XD01
 Account Group - 0001
 Enter Company code
 Sales Organization- 1000
 Division - 00
 Enter
 Enter Vendor/Customer Address details
 Click Sales area Data in Shipping tab and Enter Shipping Conditions say '01'.
 Click Save
 Go to MK02
 In Control Data tab enter Customer No
 And Save

Extend Sales view also for Components/raw materials in MMO2:

 Go to MM02
 Select all sales views
 Enter Plant, Sales Org., Distibution Channel
 Enter required details for all the sales views
 In Sales Org. 2 Enter Item category group as 'NORM'
 In Sales/Gen Plant View enter Transport group as '0001' and Loading Group '0001'.
 Availability Check '01'
 Click Save
 Same way extend same views for other raw materials also

Step 7: Create PO for Finished Product with Item Category 'L'

 Go to ME21N
 Enter Purchase Organisation,Pur Group, Co. code and Vendor No
 Enter Material no, Quantity etc.
 Save PO

Note: Ensure stock is there for components, Other wise maintain stock for components with 561 or 501
movement type in MIGO or MB1C.
Step 8: Provide Components to Sub contractor via SD Shippng process (Via Out Bound delivery & PGI)

 Go to ME2O
 Enter Vendor No. (Sub contractor No..)
 Enter Components
 Execute
 Select Check boxes and Click 'Create Delivery' buton
 Enter Storage Location, Quantity etc.,

18
  Click Enter
 Observe created delivery Nos.
 Again select same check boxes and Click 'Post Goods Issue' button
 Enter Movement type 541, Storage Location, Quantity.

Step 9 Enter GR for finished Products

Step 10 Enter IR with respect to PO for Finished Products.

19
 THIRD PARTY PROCUREMENT

Sales Order PR w.r.t. Sales Order PO w.r.t. PR & w.r.t Sales Order
Mat-x, Cust-x,Qty-100,Rs. 100/Pc Mat-x, Qty 100Pc, Mat-x, Vend-x,
Item Cate: 'TAS' (VA01) A/c Assn. Cate: '1' (Third Party) Qty-100 Pc, Rs.100/pc
Item Cate: 'S' (Third Party) Acct Assn Cate: '1'(Third Party)
Del address is Cust. Address. Item Category: 'A' (Third Party)
Del Address is Cust. Address.

(Goods moves from Vendor to Customer)

Vendor Logical GR
Customer

A/C Payable Vendor Invoice

(Payment to Vendor) verification

Create Customer
Invoice/Billing (VF01)

A/C Receivable
(Payment from Customer)

20
Step 1: Create material master with MM and sales views with material type 'HAWA' (Trading Goods).

 In Sales Org 2 view Enter Item Category group as 'BANS', and in Gen Item cate. Group : BANS
 Enter required details in all the selected views and save

Step 2: Create Sales Order 'VA01'

 Order type: 'OR'

 Enter Sales Organization, Distribution Channel and Division.
 Click Enter
 Sold to Party: enter Customer No
 Ship to Party: enter Customer No
 Enter Material No, quantity ,plant and amount
 Click Enter
(Pricing Procedure error comes then in 'OVKK' assign pricing procedure 'RVAA01' to our sales
area.)
 Po Pricing Procedure : 'A', Customer Pricing Procedure: '1'
 In Item Item category 'TAS' s picked automatically based on material master Item category
group 'BANS' due to this Item category 'TAS'. A PR can be created in background in third party
procurement process.
 From Menu bar--- Click Edit--- Incompletion Org and enter this receipt by clicking complete data
button
 Click Save
 Go to Sales order display from menu bar (VA03- T code)
 Double click Item row-- In Schedule line tab click procurement button and observe automatically
created PR No. as per Item Category 'TAS'.
 Go to this PR display n ME53N, here account assignment category and Item categories selected
as third Party.
 And in account assignment tab observe sales order no.
 In delivery address tab observe customer no and customer address.

Step 3: Create PO With respect to PR in ME21N

 In Item row enter PR NO and click enter

 Enter other details
 Here also account assignment category and Item categories are Third Party
 Here also delivery address is customer address
 Save PO

21
Note: GR is optional.

Step 4: Enter GR in MIGO and movement type 101

 In Partner tab it is showing goods are delivered from vendor to customer

 Item OK, Check and Post.
 In accounting document cost of goods sold account is debited and GR/IR clearing account is
credited.

Step 5: Enter IR with respect to PO in MIRO

 Enter customer Invoice or billing in VF01

 Enter document no (Sales Order)
 Billing type: F1 or F2
 Click Enter
 Save
 Observe accounting document entries in display mode.

22
SAP MM

[STOCK TRANSPORT ORDER

WITH SD AND W/O SD]
STOCK TRANSFERS
 STOCK TRANSFERS

1. Stock Transfer from Plant to Plant with one step procedure

(T Code MIGO/MB1B- Movement Type 301) (Only Inventory department involves in this
case)

2. Stock transfer from Plant to Plant with two step procedure (MB1B/MIGO- Movement
type 303 & 305) (Only Inventory department involves in this case)

3. Stock transport order without SD shipping and with out billing ( PO Document Type:
'UB', Supply Plant in PO, Movement type : 351, Receiving plant GR 101) (Only Purchase
department, Inventory department involves in this case)

4. Stock Transport order with SD Shipping and without billing (Intra Company) (PO
document type 'UB', outbound delivery type 'NL', PGI Movement type 641, GR M type 101)
(Purchase department, shipping department and Inventory department involves in this
case)

5. Stock transport Order with SD Shipping and Billing (Inter Company) (PO Document type
'NB', Out bound delivery 'NLCC', PGI Mov Type;643, Billing Type 'IV', GR Movement type
101, Invoice Verification.) ( Here all departments involving include accounting
department.)

Stock Transport Order without SD shipping and with out Billing:

Company Code
TSPC

TSJU TSRP
(Supply Plant) 2. STO ME21N, Doct Type: UB, It Cat: U (Receive Plant)

3. Transfer Postings (MB1B/MIGO,351) 1. PR ME51N,

Item Cat 'U'
4. GR w.r.t. STO, Mov Type 101

2
  Ensure material is extended to both plants.
 Observe prices and price control Indicators for both materials in Material master
accounting view
 Observe stock overview for both materials in MMBE

Step 1: Create PR in Receive Plant

 Go to ME51N
 Enter Item Categoty 'U'
 Enter Material number, quantity, and Recieve Plant and supplying Plant
 Click Save

Step 2: Create STO or PO in receive Plant

 Go to ME21N
 Document type 'UB'
 Then vendor field is replaced by supply plant, based on document type 'UB' Img
Settings.

SPRO MM Purchasing Purchase Order Define Document

types

{ Document type: UB Control: T (Transport)}

 In Item row enter PR Number and Click enter

 Enter recive plant purchase organization, company code in Organization data tab
 Here also Item category 'U'
 In Condition tab Click 'analysis' button and observe the adopted STO pricing
procudure "RM2000" based on determination of calculation schema for STO.

SPRO MM Purchasing Conditions Define price

determination process Define Schema determination

{Click determine for STO, Doct type : UB Procedure: RM2000}

 In PO Item condition tab 'condition type P101' is picked supplying plant material
price. That means material is coming with supplying plant price to receive plant and
with that price only stock value increases in receiving plant but not with the receive
plant material price. But standard price is there in receive plant then in standard
price only stock value increases in receive plant.
 If Freight is paying to any transporter then enter price condition type 'FRC1' say 10
Rs/pc and select freight condition type and click condition details button and enter
freight vendor no.

3
  In condition tab all condition types are statistical that is why any condition type
amount is not adding to net price.
 Here no Invoice tab is coming as per Item category 'U' IMG Settings.
 Save PO.

Step 3: Transfer Posting in Supply Plant

 Go to MIGO(MB1B)
 Goods Issue; Purchase Order; PO Number; Movement Type 351
 Click Enter
 Enter Quantity and Storage Location
 Item OK, Check and Post
 In MMBE stock decreased in Supply Plant and not increased in receive plant and
stock is in transit to receive Plant
 See the transit stock in 'MB5T'
 In accounting document supplying plant stock value decreased with 'BSX' and
receive plant stock value increased with 'BSX' and freight value credited with
transaction key 'FR1'.

Step 4: GR for in receive Plant

 Go to MIGO
 Goods receipt; Purchase Order; PO Number, Movement type 101
 Click Enter
 In Where tab observe receive plant and store
 In quantity tab enter actual received quantity
 In Partner tab observe supply plant
 Item OK check and Post
 Transit stock decreases in 'MB5T' and receive plant stock increased in MMBE
 Again no accounting document is created at 'GR' because already stock value
updated in both plants during transfer posting
 If freight is planned at PO then enter Invoice with respect to PO in MIRO by selecting
Planned delivery cost.

4
 Stock Transfer Order with SD Shipping and without Billing

Company Code
TSPC

Supply Plant 2. STO ME21N, Doct Type 'UB', Item Cate 'U' Receive Plant

1. Pr Item Cate 'U'

3. Outbound Delivery Doct type 'NL'

T Codes: VL10B, VL10G, VL04

4. PGI VL02N, Mov Type: 641

5. GR wrt STO, Mov type: 101

Vendor Customer
(SD Flow) (MM Flow)

PR
Create Enguiry RFQ

Create Quotation Maintain Quotation

Sales Order PO

Outbound Delivery POST GR

Create Billin/Invoice Invoice Verification

A/C Receivable Payment (A/C Payable)

5
 Sales Org. (JUSO) Co. Code (TSPC)

Dist.Channel 22 Dist. Channel Plant TSJU Plant TSRP

(Direct Sales) 20 (Whole Sale)

Dist. division ZZ Dist. divsion 01 Dist Divison ZZ Dist Division

(Mechanicals) (Auto mobile)
YY (Dearlers)

(Sales Area)

SD IMG Settings:

SPRO Enterprise Structure Definition Logistics General

Define copy, delete, check division
 Define Divison
Note: Sellable materials are grouped together and assigned to a division.

 Click New Entries

Division Name
ZD Cardiac division
ZE Cancer Division
 Save
 Back to IMG

SPRO Enterprise Structure Definition Sales & Distribution

Define copy, delete, check Sales Organization
 Click Define Sales Organization
 Select existing Sales Organization say '1000' Click copy as and enter as
'TSSO' - Tata Steels Sales Organization
 Enter currency, and Calender
 In address screen enter address details of Sales organisation

6
  Click yes and save
 back to IMG
 Define Copy, delete, check distribution Channel
 Click enter
 Click define distribution Channel
Note: Distribution Channel is the way of reaching the goods to customer i.e., through
dealer channel or distributor channel or direct sales or Internet sales or whole sale
etc.,
 Click New Entries

Distribution Channel Name

ZC Direct Sales
 Click save
 back to IMG
 Logistics Execution
 Define Copy, delete, check shipping point
 Define Shipping Point
Note: Shipping pint is group of loading/unloading points and from shipping point
goods are shipped to the customer
 New Entries

Shipping Point: JUSP (Jamshedpur shipping point)

Determine Load Time: 'A'
Determine pick/pack time: 'A'
Rounding work days: '1'
 Click enter and save
 enter the address details of shipping point in address screen
 create other shipping points also for unloading points.i.e., customer shipping point.
 Back to IMG
 Assignment
 Sales and Distribution
 Assign Sales organizations to Co. Code
 Enter Sales Organisation and our company code
 Click Save
 Back to IMG
 Assign Distribution channel to Sales Organization
 Click New Entries
Sales Org. Dist. Channel
TSSO ZC
 Back to IMG

7
  Assign Sales division to Sales Organisation
 Click New Entries

Sales Org. Dist. Div

TSSO ZD

 Back to IMG
 Set up Sales Area
 Click New Entries

Sales Org. Dist Channel Dist. Div

TSSO ZC ZD

 Click Save
 Back to IMG
 Logistics Execution
 Assign shipping point to Plant
 Select our Plant (TSJU) and Click assign button on the top
 Select our shipping Point (JUSP)
 Click Save
 Back to IMG

SPRO Sales & Distribution Master Data Define Common Distribution

Channel

Sales Organization Dist. Channel Dist. Channel Conditions Dist. channel Cust/Mate
TSSO ZC ZC ZC
ZOOO ZO ZC ZC

 Back to IMG
 Define Common divisions

Sales Organization Division Division Conditions Division Condtions

TSSO ZD ZD ZD

 Click Save

8
Create Customer Master record for receive Plant:
(From supplying sales area point of view) (XD01)

 Account group :
 Customer No:
(Ensure Customer no. is New Nos)
 Company Code
 Sales Organization
 Distribution Channel
 Distribution Division
 In address screen enter name and address details of receive Plant
 Click Company Code data and enter reconciliation account
 Click Sales area data tab
 In shipping tab enter shipping conditions say '01'
(Shipping conditions determines suitable shipping point automatically in PO
shipping tab from shipping point determination ) T Code OVL2
 Click Save

STO IMG Settings in MM:

SPRO MM Purchasing Purchase Order Set up Stock Transport

Order Define Shipping Data for Plants

 Select Receive Plant 'TSRP' and click details button, assign customer No. to this
receive plant. That means in STO process this receive plant is treated as a customer
by supplying Sales area.
 Go To Supplying Plant 'TSJU' and click details, assign which sales area involving in
this supply plant to transfer the goods to any receive Plant.

Sales Area TSSO

Dist. Ch ZC
Dist. Div YY

Note: If this supplying plant is also receiving goods from any other plant then create and
assign customer no. to this plant also.

 Click Save
 Back to IMG
 Create Checking rule

9
 (Checking rule is used to check material availability in supplying plant by carrying
out availability check programme.)
 New Entries
CRI Description
YY Checking Rule

 Save
 Back to IMG
 Define Checking rule
(here define which stocks has to consider as avaialble stock in availability check and
which inward and outward documents has to considered in availability check etc.,)
 New Entries
 Availability Check Say '01' ( It is assigned to material master)
 Checking rule 'YY' (It is assigned to supplying plant in next screen)

 Stocks:

Stock in Transfer
Incl. Qual. Ins. Stock
(If We selected these stocks only considered as available stocks of supplying plant)

 IN/Outward Movements:

Incl. Purchase Order

Incl. Purchase Requisition
Incl. Sales requirements
Incl. Deliveries
Incl. Ship. Notifications

 Replenishment Lead Time:

 If it is selected, Normally availability check carries out with RLT (Replenishment

Lead Time) that means, If stock is deficit in supplying plant to issue to customer or
to receive plant then it confirms the delivery date to customer or to receive plant by
considering planned time (from Vendor) or in house production time + GR
Processing time +Pick/pack time+ Loading time + Transportation time

 If it is selected without RLT then It won't consider planned delivery time or in house
production time and GR processing time

10
  Click Save
 Back to IMG
 Assign Delivery type and checking rule
**This settings control against receive Plant 'PO' in supplying plant goods has to
transfer with 'SD' Shipping process or without 'SD' shipping process (i.e., with
Inventory Department)

Doc.Type S Plant Del Type CRI (Intra Company)

UB TSJU NL YY

(** If we want to STO with SD, We keep delivery type as NL to supplying plant, If
without SD We have to delete 'NL' against supplying plant)

Doc.Type S Plant Del Type CRI (Inter Company)

NB TSJU NLCC YY

 Click Save
 Back to IMG
 Assign document type one step procedure under delivery tolerance

Supply Plant Rec. Plant Doc. Type One Step Tole

TSJU TSRP UB
Intra Company
TSJU 1000 NB Inter Company

 If one step is selected, Whenever PGI is posted in supplying plant then GR also
posted automatically in receive plant in the same step
 In One step procedure PGI movement type is in Intra company is 647, and in Inter
company is 645.

 Click Save.

TEST SCENARIO:

Step 1: Create Material Master in Supplying Plant:

 Go to MM01
 Select Material type FERT or HALB
 Select all sales views and MM views and all MRP views
 Click Organizational levels
 MRP Profile : PD01
11
  Click Enter
 In Sales Org. 1 View, Enter Division, Tax Classification as '1'
 In Sales Org. 2 view, enter Item Category group as 'NORM'
 In Sales/Gen Plant view, enter Availability Check: '01',enter Transportation Group
and Enter Loading group as '0001'
 In MRP2 View : ( Based on procurement type 'E' enter either in production time (say
10 days) or planned delivery time and enter GR Processing time say 1 day
 In MRP 3 view enter Total Repl. Lead Time : 10 Days
Note: If availability check carries with RLT then this RLT only considers. If availability
check carries without RLT then It won't consider this RLT and it considers in house
production time or planned delivery time + GR Processing time only.
 Enter Other views and save
Note: Extend the same material to receive plant also will all MM and all Sales and MRP
views..

Step 2: Create PR in Receive Plant:

 Go to ME51N
 Document Type: NB
 Item Category 'U', enter quantity, receive plant and Supply Plant
 Click Enter and Save

Step 3: Create STO in Receive Plant

 Go to ME21N
 PO Document Type 'UB'
 In Item row enter PR NO.
 Click Enter
 In Shipping tab: The receive plant customer no and supply plant sales area is picked
based on STO IMG Settings.

{SPRO MM Purchasing Purchase Order Set up Stock

Transport Order Define Shipping Data for Plants}

 based on PO Document type 'UB' and supplying plant 'TSJU', the delivery type 'NL' is
copied from IMG Settings.

{SPRO MM Purchasing Purchase Order Set up Stock Transport

Order Assign delivery type and checking rule}

 From customer master record shipping condition and for material master loading
group is picked here

12
  based on this shipping conditions and loading group and supplying plant
combination the shipping point is determined automatically from 'OVL2- T Code'.

 In Condition tab: Observe condition type 'P101'

 Select Item row and from Menu bar click 'Environment Availability'
 observe how much stock available in Supply plant as on date as per availability
check and checking rule
 Back and Save.

Step 4: Create Outbound delivery in Supply Plant:

 Go to VL10B (VL10G or VL04)

 Shipping point which is there in PO
 Delivery creation date (Ensure PO item delivery date is with in this from and to
Dates)
 Calculation rule: 1 or 2 based on PO's Delivery date
 In Purchase Order data tab enter PO Number
 Click Execute
 In next screen select row click 'background' button
 Click Log for creating deliveries button
 If errors are there then select error and click note
 Select no. click 'document' button
 observe created Outbound delivery document no
 Back and save

Step 5: PGI in Supply Plant

 Go to VL02N
 Enter Outbound delivery No.
 Click Enter
 In Picking tab enter storage location and picked quantity
 Click enter
 In goods movement data tab movement type '641' is picked automatically.
(Note: If one step is selected then 641 is picked here)
 Click Post Goods Issue
 In the same screen click document flow button and observe created transfer posting
or PGI document or in ME23N. In PO history tab also observe PGI document and go
to this PGI document display in 'MIGO' or 'MB03' and observe accounting document
and movement types.

13
 NOte: Observe updated stock in supplying plant in MMBE and transit stock in
'MB5T'.

Step 6: Enter GR for Receive Plant

 Goods Receipt; R05 Outbound Delivery; Outbound delivery No., Mov. Type: 101
 Enter Storage Location (Receive Plant)
 Received quantity
 Check and POst.
 Here No accounting document created
 Transit stock is decreased in MB5t
 Receive Plant is increased in MMBE

STO with SD with Billing (Inter Company)

2. STO ME21N, Doct Type 'NB', Item Cate 'STD' Receive Plant
Supply Plant

3. Outbound Delivery Doct type 'NLCC' 1. PR Item Cat U

(T Codes: VL10B, VL10G, VL04)

4. PGI VL02N, Mov Type: 643

5. Create Billing/Invoice in Supply Plant (VF01)

6. GR in Receive Plant

7. Invoice Verification in Receive Plant (MIRO)

Note: Configure SD enterprise structure for supplying plant same as Intra company
1. Create Receive Plant as customer master in supply plant sales area.
2. Create Supplying plant as a vendor with receive plant purchase organization and
Company code and in purchasing data screen from menu bar-- Extras-- additional
data, assign supplying plant to vendor master.
3. Configure STO settings in MM same as Intra company but assign document type as
'NB' and delivery type as 'NLCC'

14
Test Scenario:
Same as Intra company from material master up to GR, but create additionally billing or
Invoice in supplying plant in VF01 and enter Invoice verification in receiving plant in MIRO.

15
16
SAP MM

1
[OUTLINE AGREEMENTS]
OUT LINE AGREEMENTS

2
 OUTLINE AGREEMENTS

a) Contract, b) Scheduling Agreements

Contract: Making of long arrangements with vendor with predefined terms and conditions within a
time frame is known as Contract.

Types of Contracts:

I. Quantity Contracts
II. Value Contracts
III. Centrally agreed Contracts

I. Quality Contracts:
RFQ Quotation
w.r.t. PR
PR (1) Mat-x, Qty-100 Pc
Doc. Type: RV (out line
Agreements) Quotations Price
Comparison

Create Contract w.r.t. RFQ/PR

Mat-x, Vend-x, Qty-1000 Pcs, Rs. 100/pc
From 1st jan 13 to 31st dec 13

PR (2) Create Release Order

Mat-x, Qty-100 Pcs PO (w.r.t. Contract) & PR (2)
Document type: NB Mat-x, Vend-x,
Qty-100 Pcs, Rs. 100/pc

GR for 100 Pcs

IR for 100 Pcs Rs. 100/Pc + Tax

2
Step 1: Create PR for Agreement

 Go to ME51N
 Document type 'RV'
 Enter Material No, Quantity say 1000 Pcs, Plant,
 Click Enter and Save

Step 2: RFQ's, Quotations and Price Comparisons are also possible.

Step 3: Contract:

Logistics MM Purchasing Outline Agreements Contract

Create (ME31K)

Note: Contract can be created w.r.t. PR or RFQ or directly without any reference
 Go to ME31K
 Enter Vendor No.
 Agreement type/Document type: MK

{(SPRO MM Purchasing Contract)

Here observe
 Define Number Ranges
 Define Document Types
 Define Screen layout at document level }

 Enter Purchase Organization, Purchase Group

 Click reference to PR button
 Enter PR No
 Click Enter
 In next Contract Header data Screen
 Enter Validity Start date and Validity end dates
 Enter Payment terms
 Select PR item row and click adopt button
 Enter Net Price or Click condition button
 Enter same contract valid From and To dates
 Enter Condition type and amount which are agreed with Vendor
 Back
 Select Item row and click Item details button

3
  Select Info Update as 'A', So that an existing Info record details will be updated, If no Info record
is there then a new Info record will be created with this contract details.
 Back
 Select Item row and from Menu bar choose Item --- Maintain source list then it takes to Source
List record and enter same contract valid From and To dates and select check box to fix vendor
and select MRP option as '1'.
 Back to Contract
 Click Save

Step 4: PRINT/ TRANSMIT CONTRACT DOCUMENT TO VENDOR (ME9K- T Code)

 Enter Document No.(Contract No.)

 Application: (EV)
 Message type: NEU
 Processing Status: (O)
 Click Execute
 In Next screen Select Check box and click display message and observe Print Preview
 Back
 Click out put message
Note: In First PR display observe status tab details
 Observe Source list in 'MEO3'

Step 5: Create Contract Release Order (PO w.r.t. Contract)

 Create Contract release order w.r.t. PR (2)

 In ME21N, Document type 'NB'
 In Item row enter PR Number, Suppose in 'PR' contract number is not specified then in PO item
Row enter Outline Agreements i.e., Contract No. also.
 Click Enter
 Here quantity copied from PR and prices and condition type amounts are copied from contract.
 Click Save

Step 6: Enter GR w.r.t PO

Step 7: Enter Invoice w.r.t. PO in MIRO

Note:
 Go to ME33K enter agreement No
 Click Enter
 Select Item row and from Menu bar select Item--- Statistics---Release documentation
 Here Observe target quantity and Open quantity and already released PO's quantities.

4
NOte: Whenever total PO's quantity exceeds contract quantity then contract is over
Again Observe all PR's status details.

Value Contract:

Step 1: Create PR for Agreement

 Go to ME51N
 Document type 'RV'
 Enter Material No, Quantity say 1000 Pcs, Plant,
 Click Enter and Save

Step 2: RFQ's, Quotations and Price Comparisons are also possible.

Step 3: Contract:

Logistics MM Purchasing Outline Agreements Contract

Create (ME31K)

Note: Contract can be created w.r.t. PR or RFQ or directly without any reference
 Go to ME31K
 Enter Vendor No.
 Agreement type/Document type: WK

{(SPRO MM Purchasing Contract)

Here observe
 Define Number Ranges
 Define Document Types
 Define Screen layout at document level }

 Enter Purchase Organization, Purchase Group

 Click reference to PR button
 Enter PR No
 Click Enter
 In next Contract Header data Screen
 Enter Validity Start date and Validity end dates
 Enter target value say Rs. 100000/- and this target value is for all items
 Click Enter

Mat. No. Target Quantity Net Price Plant

X Optional 100/Pc TSJU
Y Optional 110/Pc TSJU

5
  Click Enter
 In target quantity also given then for this Item the total PO's quantity exceeds this contract
quantity then contract is over.

Step 4: Create Contract Release Order (PO w.r.t. Contract)

 Create Contract release order w.r.t. PR (2)

 In ME21N, Document type 'NB'
 In Item row enter PR Number, Suppose in 'PR' contract number is not specified then in PO item
Row enter Outline Agreements i.e., Contract No. also.
 Click Enter
 Here quantity copied from PR and prices and condition type amounts are copied from contract.
 Click Save

Step 5: Enter GR w.r.t PO

Step 6: Enter Invoice w.r.t. PO in MIRO

CENRALLY AGREED CONTRACT

Centra Purchase Company Code

Organisation (TSPO) TSPC

Plant Plant
TSJU
TSRP

Pur. Org. PUR. Org.

JMPO RPPO

1. Create Contract by Central Purchase Organization 'TSPO'

Mat-x, Vendor-x, Qty- 1000Pcs
Plant - TSJU -- Price - Rs. 100/Pc

6
 Plant - TSRP -- Price - Rs. 110/Pc

2. Create PO w.r.t. Contract (But Assign contract agreed Purchase Org. TSPO as
Mat-x, Vend-x, reference Pur. Org. to local Plant Pur. Org.JMPO and for
Plant - TSJU Pur. Org - JMPO RPPO)
Plant - TSRP Pur. Org - RPPO

Step 1:

SPRO Enterprise Structure Assignment MM Assign Pur.Org to

Reference Pur. Org.
 New Entries
 Enter Purchase Organisation: JMPO (Local Pur. Org)
 Reference Pur. Organization : TSPO (Central Pur. Org)
 Check the Release Order box
 Check the Condition box
 Click Next entry and repeat the same for other local plant purchase Organization
 Click Save

Step 2:
Extend or create vendor with all Purchase Organizations

Step 3:
Extend or create material to all the plants.

Step 4: Create Contract by Central Pur. Organization (Reference Purchase Organization)

 Go to ME31K
 Enter Vendor No.
 Agreement Type as 'MK'
 Purchase Organization: TSPO (Central or Local Purchase Organization)
 Purchase group
 Click Enter
 Enter Contract Validity Start and Validity End Dates
 Click Enter
 Enter Material No., Quantity and Net Price
 Dont enter Plant in Item row (Because this contract for multiple plants in one co. code)
 Click Enter
 Select Line Item
 From Menu bar, Choose Edit--Plant Conditions--Over View
 Plant : TSJU
 Select Plant row and click 'Plant Prices' button

7
  Enter Net Price or Click Item Condition and enter same validity periods
 Enter Gross price,Freight etc., in detail
 Back
 Enter another plant and click 'PLant Prices' button and click Item conditions and enter required
prices for this plant
 Back and Save

Step 5: Create PO w.r.t Contract by Local Purchase Organization

 Go to ME21N
 In Item row enter outline agreement no which is contract no.
 Enter Plant 'TSJU' and click enter
 Enter Local Plant Purchase Organization
 enter quantity
 And in Item condition tab observe Plant conditions are copied or not from contact.
 Save PO.

Step 6: Enter GR inNormal Process

Step 7: Enter IR in Normal Process

SCHEDULING AGREEMENT

Scheduling Agreement:
Making of long range arrangement with vendors predefined terms and conditions, with predefined
delivery schedules over a period of time is knows as Scheduling Agreement.

Step 1: Create PR for Agreement

 Go to ME51N
 Document Type 'RV'
 Enter Material, Quantity, and Plant
 Save PR

Step 2: Scheduling Agreement:

Logistics MM Purchasing Outline Agreements Scheduling

Agreement Create (ME31L)
(ME37- Scheduling Agreement for Stock Transfer in Internal Plant)

8
Note: Scheduling Agreement can be created w.r.t PR or RFQ or Reference to contract or directly without
any reference.
 Go to ME31L
 Enter Vendor No.
 Agreement/Document Type : LP

SPRO MM Purchasing Scheduling Agreement

Observe:
1. Define Number Ranges
2. Define Document Types
3. Define Screen Layout at Document

 Enter Purchase Organization and Purchase Group

 Click w.r.t. PR
 Enter PR No
 Click Enter
 Enter Validity Start and Validity End dates
 Enter Payment Terms
 Click Enter
 Select PR Item Row and click adopt button or adopt+details button
 Enter Net Price or Click Item Condition button and enter received condition types and amount
 Back
 Select Item row click Item detail button
 Infoupdate 'A'
 Back
 Select Item row and from menu bar chose Item--Maintain Source List
 Then it takes to source list record enter same scheduling agreement validity periods from and to
dates and select fix Indicator
 Select MRP as '2'
 Back to agreement
 Savae
 Go to Source list display MEO3
NOte: In MEO3 observe scheduling agreement no is updated or not.

Step 3: PRINT/TRANSMIT S.A to Vendor:

 Go to ME9L
 Enter document No. i.e., Scheduling Agreement No.
 Application as 'EV'
 Message type 'NEU'
 Execute
 In Next screen observe display message and output message.

9
Step 4: Maintain Delivery Schedules with respect to Scheduling Agreement: (T Code- ME38)

 Enter Agreement No:

 Click Enter
 Select Item row click 'Delivery Schedules' button
 Enter different dates and quantity
 Back
 Click Message button from Menu bar
 Enter Out put type as 'LPET',
 Print Medium '1' Printout
 Click Communication
 Click Logical Destination and choose 'LP01'
 Back and Save

Step 5: Print/Transmit Delivery Schedules Document to Vendor: (T Code ME9L)

 Enter Document No.

 Application type : 'EL'
 Message type : LPET
 Click enter
 In Next Screen select Check Box and click 'Message details' button
 Observe Print preview
 Back
 Select same check box and click 'Out Put Message'.

Step 6: Enter GR for first delivered item according to Scheduling Agreement

 Go to MIGO
 Goods Receipt ; Purchase Order; Scheduling Agreement No; Movement type: 101
 Click Enter
 In quantity tab scheduled quantity only proposed or excess quantity.
 Item ok, check and Post.

Step 7: Enter Invoice

 Go to MIRO
 In PO Reference tab: Select Purchase Order/Scheduling Agreement
 Enter Scheduling Agreement No
 Click Enter
 Then it proposes GR quantity and amount
 Enter Tax and total amount
 Save IR

10
 SCHEDULING AGREEMENT WITH RELEASE CREATION PROFILE

Note: Delivery Schedules are two types

1. Forecast Delivery Schedules (FRC) ( For Longer Periods)

2. JIT Delivery Schedules (Near to Future)

In this process the total scheduling agreement quantity is schedules monthly wise with forecast
delivery schedules and for each month FRC delivery schedule quantity again daily basis or weekly basis
JIT delivery schedules are given.
But all these delivery schedules which are maintained in ME38 has to release again in 'ME84'.

SPRO MM Purchasing Scheduling Agreement Define Document

Types

 Select Document Type 'LPA' Time D.C. , Release Document

 If we Select Release Document Indicator then with this document type the maintianed delivery
schedules (ME38) again has to release in 'ME84'.
 Back to IMG
 Maintain release create profile for Scheduling Agreement with Rel. Doc.
 Click Enter
 Go to Existing Profile '0001' detains in our plant
 Observe details here

Step 1: Create Scheduling Agreement

 Go to ME31L
 Enter Vendor No.
 Agreement Type: 'LPA'
 Enter Purchase Organization, Purchase Group
 Click Enter
 Enter Validity start date and Validity End dates
 Click Enter
 Enter Material, Quantity, Price and Plant
 Click Enter
 Select Item row and select from menu bar--item--more options--additional data button
 Enter Firm Zone say 5 days
 Enter Trade off Zone Say 10 days 30th Sep 13
15th Sep 13 25th Sep 13 Delivery Date
Example: Shed Date 10 Days 5 Days
1st Sep 13 Trade Off Zone Firm Zone
Planning Zone

11
Note:
a) In Planning Zone if agreement is violated, we are not liable to pay any amount to Vendor.
b) In Trade Off Zone: It is go ahead to procure raw materials by Vendor, which are required for our
ordered product. If Agreement is violated in this zone then we are liable to pay raw material cost to
Vendor
c) Firm Zone: It is go ahead for production and if agreement is violated in this Zone then we have to pay
raw material cost and Production cost to Vendor.

 Creation Profile: as '0001'

 JIT Indicator : '1'
 Back and Click Message button from Menu bar
 Out Put Type 'NEU', Medium: '1' Print Out
 Click Communication method
 Logical destination as LP01
 Back and Save

Step 2: Print/Transmit Scheduling Agreement to Vendor in ME9L with application 'EV' and message
type 'NEU'

Step 3: Maintain Delivery Schedules (ME38 - Tcode)

 Agreement No.
 Click Enter
 Select Item row
 Click delivery Schedules button
 here specify for first 200 days in each month how much quantity is required.
 From Menu Bar-- Click Edit-- Generate Fore Case Schedules and Click Generate JIT Schedules
 Back and click Message Button
 But system will not allow to select any output type because these delivery schedules again has
to release in ME84 as per document type LPA IMG Settings
 Back and Save

Step 4 : Create Scheduling Agreement Releases (ME84 - Tcode)

 Select forecast and JIT Schedules

 enter Plant
 Schedule Agreement No.
 Click Execute
 and observe released documents in next screen
 Now print/Transmit both these delivery schedules in ME9E.

12
Step 5: Enter GR/IR in Manual Process:

Q: What is the difference between document type LP and LPA?

Ans: With Document Type LP the delivery schedules (me38) no need to release again but in document
type LPA the delivery schedules which are maintained in ME38 has to release again in ME84.

13
SAP MM

2
 [ACCOUNT DETERMINATION]
MM & FI INTEGRATION
ACCOUNT DETERMINATION MM & FI INTEGRATON

Account Determination: It is used to determine G/L Accounts automatically to post

material values at GR or GI accounting Documents.

Types of Account Determinations:

1. Account Determination with Wizard. 2. Account Determination with Wizard.

Account Determination without Wizard:

Plant 1000
Chart of Acct Company Code
INT 1000 Plant 1100 Valuation
Chart of Acct
INT Grouping Code
Plant 1200 0001

Company Code Plant 2000

2000 Valuation
Plant 2100 Grouping Code

Plant 3000
Chart of Acct Company Code
CAIN 3000 Plant 3001

Transaction A/C Mod. Chart of A/c Valu. Group Val. Class G/L Account
Keys
BSX INT 0001 3000 300000
BSX INT 0001 3001 300010
WRX INT 0001 191100
GBB VBR INT 0001 3000 400000

3
 Valuation Valuation
Mat-X Mat. Type Class Group
ROH 3000 Code
3001 0001

Movement
Type 101 Account Category
reference Plant
0001 1000

Valuation
String
WE01
Company Code
1000

Transaction/E G/L Account

vent Keys 300000
BSX 300010 Chart of
WRX 191100 Account
INT

Account Modifier

SPRO MM Valuation and Account Assignment Account

determination

Account determination without wizard Define Valuation Control

 If Valuation Grouping Code active is selected then valuation areas (Plants) assign to
a valuation grouping Code and G/L accounts are assigned at Valuation grouping
code level.
 If not active selected then for all plants without valuation grouping code same G/L
Accounts are assigned.
 Recommended is active
 Back to IMG
 Group together valuation areas (OMW- T Code)
 Here assign similar account determination required valuation areas to same
valuation grouping code.
Valution Area Company code Chart of Account Val. Grouping Code
TSJU TSPC INT 9999
TSRP TSPC INT 9999
 Click Save

4
  Back to IMG
 Define Valuation Classes (OMSK- T Code)
 Click Account Category reference
 Click New Entries

Account Reference Description

ZZZZ Acctreference for material type ZOH
 Click Save
 Back
 Click Valuation Class
 New Entries

Valuation Class A/C category Ref Val. Class Description

9991 ZZZZ Chemicals
9992 ZZZZ Steels

Note: One account category reference can assign to multiple valuation classes but one
valuation class is assign to only one Account category reference.

 Save
 Click Material type/Account Category reference

Material Type A/C category Ref

YOH ZZZZ
ZOH ZZZZ

Note: One material type is assigned to only one account category reference and one
account category reference can be assigned to multiple material type.
 save
 Back to IMG
 Define accounting grouping for movement types
 Here for each movement type valuation string is assigned and each valuation string
have set of transaction keys, but for some particular Transaction keys again account
modifiers are also assign based on movement types.

Note: It is not possible to create new valuation string and new transaction key, If requires
we can edit account modifiers (Account Grouping Code)

** For each movement type at least Two Transaction keys will trigger to post (G/L
Accounts) accounting document.

5
Following are account modifiers for Transaction key 'GBB":

1 BSA 561 M Type (Initial Entry of Stock Balance)

2 INV 701, 702 upto 706 M types
3 VAX 231 M type
4 VAY 251 M type
5 VBO 543 'O' M Type
6 VBR 201 and any other Internal Goods Issues (i.e., Cost Center,Prod
Order, Project Systems Etc.,)
7 VKA 101 M type (PO wrt sales order and GR wrt PO)
8 VNG 551 to 556 M types (Goods issue to Scrap)
9 ZOB 501 M type
10 ZOF 521 & 531 M Types (GR W/o Production Order)

Following are A/C modifers for Transaction Key 'PRD'

1 None For GR and Ir Against Purchase Order (101 M type)
2 PRF For GR against production orders and Order Settlement (101 M
Type)
3 PRA For Goods issues and other Movement Types
4 PRU For Transfer Postings ( Price difference in the case of external
amounts)

Following are A/C modifiers for Transaction Key 'KON':

1 None For Consignment Liabilities (201K, 261K, 411K etc.,)

2 PIP For Pipeline liabilities (201P,261P,etc.,)

 Here select any movement type row say 201, 501 and 561 movement types etc., and
click details button and observe assigned transaction keys and account modifiers.
 Back to IMG
 Configure Automatic Postings
 Click Cancel
 Click Account assignment button (OBYC- T Code)
 Click Transaction key 'BSX'
Valuation Class G/L Account
Z001 300000
Z002 300010

 Click Save

6
  Click Posting keys button

Debit - 89
Credit - 99

 Back
 Click 'WRX' (GR/IR clearing account)
 Assign G/L account say '191100' and click posting keys and observe debit and credit
posting keys for this transaction key 'WRX'.
 Back
 Click Transaction key 'PRD'

Gen Modi/Acct Mod Valuation Class Debit Credit

Z001 231500 281500
Z002 231500 281500

 Click Enter

Test Scenario:

Example 1:

Step 1: Create Material Master with a new material type in above plant and in Accounting 1
View new valuation class and select moving average price (v) say Rs. 100
Click Save

Step 2: Create PO for 10 with Rs. 100/Pc.

Step 3:Enter GR wrt PO with 101 M Type.

Here

From MType 101 From Plant Company code Chart of Account Material Master In OBYC
Tr. Key Cal. Gr. Code Valuation Class

BSX 9999 INT Z001 300000

WRX INT 191100

Post GR

In Accounting document observe triggered transaction keys (BSX,WRX) and G/L Accounts
and Posting keys.

7
Example 2:

Step 1: Create Material Master with Standard Price say Rs. 100

Step 2: Create PO with Rs.110/Pc

Step 3: Enter GR wrt PO

 Here Movement type '101' triggered (PRD) Transaction key also to post price
difference amount along with BSX and WRX.

Example 3:

Step 1: Create PO for consumption purpose say with Account assignment category 'K'

 And in Account assignment tab consumption G/L account can be picked

automatically based on account assignment category 'K' and Account modifier (T
Code-OME9) and Transaction key 'GBB' combination G/L Account from OBYC-
Tcode
 Save PO

Step 2: Enter GR

 Here consumption G/L account debited with 'KBS' and GR/IR clg account credited
with 'WRX'.
 For 'KBS' no G/L account is assigned in OBYC and it will be picked G/L account from
PO.

Example 4:

Step 1: Create PO for 10 Pcs and in Item condition tab enter Gross price say 100Rs/Pc and
Freight (FRC1) say Rs. 10/Pc and any discount or surcharge suppose 'ZA01'.

 But here freight is not added to net price because it is statistical condition type.
 Save PO

Step 2: Enter GR

 In accounting document GR/IR posted with net price with 'WRX' and Freight
amount posted in to separate Freight clearing account with Freight amount with
Transaction key 'FR1' and total goods and freight debited in Inventory G/L Account
with 'BSX'.
 In OMWN- T code for 101 M type Transaction keys BSX, WRX and FR1 assigned.

Step 3: Enter Invoice in MIRO wrt PO

 Here Select 'Goods /Service +Planned delivery Cost'

 Select Tax code

8
  In basic data select Calculate Tax
 Enter Total amount
 In payment tab select payment term to calculate tax discount
 In detail tab select document type 'RN' to see cash discount calculations in Invoice it
self.
 Post
 Go to Invoice display
 Click 'Followon Document' button
 Click accounting document
 observe T Codes and G/L accounts
 Here Tax amount posted with Transaction key 'VST' and cash discount posted with
'SKV' and freight with 'FR1' and vendor account with 'KBS' etc.,
 In OMRO- T code click simulation and observe transaction type or transaction keys
by clicking simulation button
 Note: Normally for tax posting G/L accounts picks for 'VST' from OB40- T code from
FI Side.

Example 1: Enter GR to Cost Centre with 201 Movement type and post GI and in
accounting document stock or Inventory G/L Account credited (-) with 'BSX' and Cost
Center consumption G/L Account debited with Transaction key 'GBB' and account modifier
'VBR'.

Example 2: Enter GR with 501 then in accounting document Inventory G/L account
debited with 'BSX' and offsetting entry for Inventory posting credited Transaction key
'GBB" and with account 'ZOB'.

Example 3: Enter GR for Initial entry of stock balance with 561 Movement type then in
Accounting document Inventory G/L account debited with Transaction key 'BSX' and in
offsetting Inventory G/L account credited with GBB and account with account modifier
'BSA'

Example 4: Transfer Posting plant to Plant with one step procedure say '301' then in
accounting document supplying plant Inventory G/L account credited with Transaction key
'BSX' and supply material valuation class and valuation grouping code combination and
receive plant Inventory G/L account debited with 'BSX' but and receive plant valuation
class and valuation grouping code combination and any price difference are there due to
standard price in receive plant material master then price difference posted with
transaction key 'AUM'.

Example 5: Enter GI to Scrap with 551 movement type then in Inventory G/L account
credited with 'BSX' and scrap stock value debited with Transaction key 'GBB' and account
modifier 'VNG'.

Example 6: Run pipeline process and enter GI with 201P movement type then in accounting
document cost center consumption G/L account debited with Transaction key 'GBB' and

9
account modifier 'VBR' and account payable G/L account credited with Transaction key
'KON' and account modifier 'PIP'.

Example 7: In Consignment process enter GI to cost center with 201K then cost center
consumption G/L account debited with 'GBB' and account modifier 'VBR' and account
payable credited with Transaction key 'KON' but no account modifier.

Example 8: In Sub Contracting process enter GR for finished product and in accounting
document provided raw material stock value credited with 'BSX' and consumption value
debited with 'GBB' with account modifier 'VBR' but received finished product Inventory
G/L account debited with 'BSX' and GR/IR clearing account is credited with 'BSX', Cost of
goods sold credited with 'BSV' and purchased services debited with 'FRL'.

Question: Explain account determination? Is how G/L accounts are picked in accounting
document?

Ans: In any Goods Movement based on movement type Transaction keys and account
modifier and from material master valuation class and from plant valuation grouping code
and chart of Account will picked and in OBYC T code for these Transaction keys, Account
modifiers, Chart of Accounts, Valuation grouping code and valuation class combination
whatever G/L accounts are assigned that G/L accounts are triggered.

Question: What are the Important Transaction keys in OBYC? and For which Transaction
keys both debit and credit G/L accounts are there?

Ans:

Question: Explain Account determination IMG Settings Step by Step?

10
SAP MM

[PRICING PROCEDURE]
PRICING PROCEDURE, TEST SCENARIOS
 PRICING PROCEDURE
Pricing Procedure:

It is used to calculate input material price with systematic arrangement of condition

type.

Gross Price:

Basic price exclusive of surcharges, discounts, delivery costs etc., is known as Gross
price.

Net Price:

Basic price or Gross Price inclusive of Surcharges, discounts, delivery costs and taxes etc.

Effective Price:

Net price inclusive of miscellaneous allowances and any cash discounts etc.

Condition Type:

It represents pricing elements such as Gross price, Delivery Costs, Surcharges and
discounts and taxes etc.

Access Sequence:

It is a search Strategy and it will search the condition records of a condition table for a
condition type.

Condition Technique:

It is used to determine the purchase price by systematic consideration of all relevant

pricing elements.

Note: Following are the Important elements in price determination.

1. Condition type, 2. Condition Table, 3. Access Sequence, 4. Calculation Schema.

Time Dependant Condition Type Time Independant Condition Type

Info record PO

 Scheduling agreement and quotation condition type can be set as time dependant or
time independent based on document type.

2
SPRO MM Purchasing Scheduling Agreement Define
Document Type

Document Type Time Dependent

LP

 Back to IMG
 RFQ/Quotation
 Define Document Type

Document Type Time Dependent

AN

SPRO MM Purchasing Conditions Define Price

determination process Maintain Condition Table

 Click Create Condition Table

**In real time also predefined condition tables are there, as per business requirement new
condition tables can be created.

Condition table contains group of fields to maintain condition records.

 Enter New condition table 777

 Click Enter
 In Field catalog double click on required field say material, Plant and Vendor
 Click Generate button
 Click yes
 Back to IMG
 Define Access Sequence

Note: Access Sequence is cross client customization settings.

** In real time also predefined access sequences are there, define new access sequence say for
Gross Price condition type as follows..

 Click New Entries

Access Sequence Description

Z123 Access Sequence for Gross Price

 Select New access sequence and click on 'Access' on left side

3
  New Entries

Access No. Table Requirement Exclusive

10 777

 Click Enter
 Select table row and click on 'Fields' and observe the fields of this table
 Click Save
 Back to IMG
 Define Codition type
 Click Define Condition Type (T Code M/06)

** In Real time also condition types are exists and following are Important existing condition
types.

Conditon Type Description Calculation Types

A001 Rebate Percentage
A002 Material rebate Quantity
FRA1 Freight Percentage
FRB1 Freight Value Fixed Amount
FRC1 Freight and Quantity Quantity
GRWR Statistical Value Percentage
HB00 Header Surcharge Percentage
HB01 Header Discount Value Fixed Amount
MP01 Market Price Quantity
MWST Input Tax Percentage
MWVS Input Tax Manually Percentage
NAVM Non deductable Tax Fixed Amount
NAVS Non deductable Tax Fixed Amount
P101 Value price supplying plant Quantity
PB00 Gross Price (Automatic) Quantity
PBXX Gross price (Manual) Quantity
RA00 Disc % on Net Percentage
RA01 Disc % on Gross Percentage
RB00 Discount Value Fixed amount
RC00 Discount for Quantity Fixed amount
SKTO Cash Discount for Payment Terms Percentage
ZA00 Surcharge % on net Percentage

4
 ZA01 Surcharge % on Gross Percentage
ZB00 Surcharge Value Fixed Amount
ZC00 Surcharge Qauntity Quantity
Z0A1 Customs % Percentage
ZOB1 Customs Value Quantity
ZOC1 Customs for Quantity Quantity

Condition Table 555

Filds : Material, Plant, Vendor

Access Sequece
Assign Table 555,17 etc.,

Condition Type
PB00, FRA1 etc., Access Sequence

Pricing Procedure or Calculation Schema

Maintain Condition Type
PB00, FRA1 etc.,

Assign Schema to PO with Schema Groups

Create PO
Pricing Procedure is
picked to PO and
Condition Type values is
Maintain Condition Records in MEK1 picked from Condition
record with Access
Sequence.

**Go to any existing condition type details screen say 'PB00' or 'FRA1' etc., observe control
functions or control Indicators.

 Condition Type: It specifies this condition type amount is surcharge or discount or price.

5
 Calculation Type: It specifies how this condition type amount has to calculate i.e.,
percentage wise or fixed amount or quantity etc.,
 Condition category: It classifies condition types according to condition categories.
 Group Conditions: It calculates the basis for scale value for more than one item in the
document.
 Header Conditions: If we set this indicator then this condition type is possible to enter
in header condition screen. Normally header discounts for header surcharge condition
types header condition Indicators is selected.
 Item Condition: If we set this indicator system allows to enter this condition type in
Item level and for that particular item only condition type amount is valid.
 Amount/Percentage: If we set this Indicator condition type amount is editable during
creating PO or any other purchasing document. If we not selected then condition type
amount comes in grey mode.
 Value: If we this Indicator then in PO Item condition tab condition value
 Qty Relation: If we set this Indicator system allows to change the conversion factors for
the unit of measures in condition types during purchasing documents.
 Calculation type: If we set this indicator then in PO and condition type details screen
calculation type comes in edit mode and still editable here.
 Manual Entries: It control the priority with in a condition type between condition type
amount given manually and condition type amount automatically determined.
 Reference condition Tab: For this reference condition type whatever condition records
are maintained those are applies to this condition type.
 Condition Index: It specifies whether system updates one or more condition indices in
maintaining condition records.
 Scale basis: It determines on which basis the scale amount has to calculate i.e., on
quantity basis or value basis or weight basis or point basis etc.
 Check Value: If blank is selected then scales can be maintained in ascending or
descending order. If 'A' is selected then scales are possible only descending order. If 'B'
is selected the scales are possible only in ascending order.
 Accruals: If we select it then system will post this condition type amount to separate G/L
account as a separate provision instead of one line item, generally for freight, customs
duties and taxes. If we set this Indicator then this condition type controlled as statistical
in calculation.
 Exclusion: on same item if multiple condition types are maintained say for Gross price,
both automatic Condition types (PB00) and manual condition type (PBXX) are given then
to which condition type exclusion indicator is selected that condition type is excluded
from calculation and other condition type amount included in calculation.

6
Question: What are Controlling Indicators or control functions of Condition type?
Ans: Condition class, condition type, condition category, group conditions, Header and Item
conditions, amount and values changeable or not, Scales, accruals and exclusion indicators etc.

 Here define our own Gross price condition type by copying from existing condition type
'PB00' and assign our new access sequence to this new condition type.
 Click enter and save
 Back to IMG
 Define Limits (Optional)
 Click Enter

** For required condition types specify lower limits and upper limits then in PO or quotation etc
with this condition type amount exceeds this limits system given warning or error message
based on message settings.

Condition Type Calculation Type Lower limit Upper Limit

FRA1 A --- 5%
RA00 A 1 99,99,999

 Click Save
 Back to IMG
 Define Calculation Schema (T Code - M/08)
 click New Entries
 Click Enter
 Select New pricing procedure row and click on control data
 Click New entries

7
  Back to IMG
 Define Schema Group
 Click Schema group

Note: schema groups are used to determine pricing procedure to PO or to any purchasing
document.

 Click New Entries

Schema Group Vendor Description

Y1 Schema Group for Domaestic Vendor
Y2 Schema group for Import Vendor

 Back to Popup
 Schema group for Purchase Organization
 New Entries

Schema Group Org. Description

Y001 Schema Group for Purchase Organization

 Click Save
 Back to Popup
 Assignment of schema group to Purchase Organization

Purchase Org. Description Schema Group Organization

JMPO Y001

 Click Save
 Back to IMG
 Define Schema Determination
 Determine Calculation Schema for Standard Purchase Orders
 Click New Entries

Schema Group Schema group Vendor Pricing procedure Description

Pur. Org.
Y001 Y1 ZZ0000 Domaestic
Y002 Y2 YY0000 Import pricing Proce.

8
  Back to Popup
 Click determine for Stock Transport Order

Schema Group Document Type Supply Plant Procedure Description

Y001 UB TSJU RM2000 Stock Transport

 Click Save
 Back to Popup
 Determine Calculation schema for determination of Market Price

Purchase Org. Description Market Price Schema Description

JMPO RMMP00 Market Price

 Back to IMG

TEST SCENARIO:

Step 1: Create Vendor master with Above purchase Organization and in purchasing data
screen enter Schema group vendor as 'Y1'
Step 2: Create Condition Record

Logistics MM Purchasing Master Data Condition

Other Create (MEK1)
Enter Condition Type (Automatic Gross price ): ZZ00
 Click Key Combination
 Then it picks condition tables which belongs to this condition type access sequence
 Select required table say Mat/Plant/Vendor (777)
 Click Enter

Material No Plant Vendor Amount

1890 TSJU XXXX 500

Step 3: Create PO to above schema group vendor and purchase organization with above
condition records field combinations.

 In Condition tab click analysis button and observe our schema prices procedure is picked
or not and also observe automatic Gross price condition type amount is picked or not
from Condition Records.

9
Create Po to above Schema Group vendor and Purchase Organization with above condition
records field Combinations.
In Condition tab Click analysis button and observe our schema pricing procedure is picked or
not and also observe automatic gross price condition type amount is picked or not from
Condition Records. Enter Gross, Freight and Surcharge prices and Save PO.

Step 4: Enter GR and Post

In Accounting Document only net price posted to GR/IR Clearing account and Freight Condition
type amount posted to separate Freight Clearing account, because for freight Condition type
account key and Accrual selected as 'FRA1' in 'M/08 - T Code' i.e., Calculation Schema and in
OBYC T Code for this key FR1 whatever G/L accounts is assigned that G/L account is picked in
Accounting document.

Step 5: Enter IR in MIRO

Note: For this Independent purchase documents i.e., PO (For Scheduling Agreements,.
Quotations based on document type) our main pricing procedure is picking and where as for
time relevant purchasing document i.e., for Info record and contract (For Quotation, Scheduling
agreement based on document type) supplementary pricing procedure is picking.

SUPPLEMENTARY PRICING PROCEDURE:

It is defined with manual condition types and assign to time dependent condition types
purchasing documents as follows..

 Go to M/08
 Select our new pricing procedure say 'ZZ0000'
 Click copy as button and enter supplementary pricing procedure as 'ZZ0002' and
description as supplementary procedure
 Click enter and copy all
 Again select new supplementary procedure click 'Control' button
 Here all main pricing procedure and all main automatic and manual condition types are
copied to supplementary procedure. Delete all automatic condition types (With Access
Sequence), Delete all automatic condition types except automatic gross price and allow
manual condition type (without access sequence). If requires some automatic condition
types also allow or even as it is main pricing procedure or condition types can be
continued in supplementary.
 Save Supplementary procedure.

10
  Go to M/06 and select automatic Gross price condition type which is there in our main
pricing procedure and click detail button and assign pricing procedure 'ZZ0002'.
 Click Save
 Create time dependent purchasing documents say Info record or contract and observe
supplementary pricing procedure condition type is picked or not.

(Automatic condition types prices picked from 'MEK1' and manual condition type prices picked
from Info record)

PO MAIN PRICING PROCEDURE

MANUAL CONDITION TYPE AUTOMATIC CONDIITON TYPE

PBXX 100 PB00 110

FRA1 10% RA01 -2%

ZA01 2% ABCD 5%

INFO RECORD- ME11 CONDITION RECORD - MEK1

SUPPLEMENTARY PROCEDURE AUTOMATIC CONDITION TYPES

PBXX 100 PB00 100 OR 110

FRA1 10% RA01 -2%

ZA01 2% ABCD 5%

CONTRACT - ME31K

SUPPLEMENTARY PROCEDURE AUTOMATIC CONDITION TYPES

PBXX - 100/- PB00 - 100 OR 110/-

FRA1 - 10/- RA01 - -2%

ZA01 - 2%

11
Q: What is Sub Total in pricing procedure?

Ans: It will copy condition type value (input or contract etc.) to some table and field for their
calculation on this amount say in FI or SD side.

Q 2: What is Accrual?

Ans: It will post the condition type amounts through certain types of accruals accounts.

Q 3: What is exclusive Indicator in Access Sequence?

Ans: If condition record is maintained for a table then exclusive indicator will stop further table
search. (Table are searched from Top level to bottom level)

12
SAP MM

[OUT PUT DETERMINATION]

OUTPUT DETERMINATION, TEST SCENARIOS

1
 OUT PUT DETERMINATION
SPRO MM PURCHASING MESSAGES OUTPUT CONTROL
CONDITION TABLE DEFINE CONDITON TABLE FOR PURCHASE ORDER

 Click Create Condition Table

 Enter New Table
 In field catalog, Double click on required field say Purchase Organization, Purchase Group,
Vendor.
 Click Generate Button
 Click Yes and click on Local Object
 Back to IMG
 Click Access Sequence
 Define Access Sequence for Purchase Order
 Click New Entries
 Enter New Access Sequence
 Click Enter
 Select Access Sequence row and click on 'Access'
 New Entries
 Select Each table and click on 'Fields'
 Click Save
 Back to IMG
 Message Types
 Define Message Types of Purchase Order
 Click Maintain Message types of PO
 In real time also pre defined output types will be there, If different layout is required or in
Layout different fields has to print which are entered in 'ME21N' then define New output
type by assigning new layout (Smart form or SAP Script or Adobe form) and new print
programme as follows..
 Select existing output type (NEU) and click copy as button and enter new out put type as
(ZEU) and assign New access sequence to this new output type.
 Observe options in default values tab
 Click Enter
 Click Copy all
 Select New output type Click 'Processing Routine'
 Here control which communication mediums are allowed for this output type and assign
print programme, from (Smart form) and routine etc.,
 Upto 4.60 SAP Scripts are using to design PO Layout and4.7 onwards SAP Scripts are
isolated and smart forms are introduced to design any layout and advanced in adobe form.
 Click Partner roles
 With this Output type to which partner functions vendors PO can be send is controlled here.

Medium Functions Name

2
Print Out Put VN Vendor
FAX OA Ordering Agent
FAX DP Delivery Plant
External Send VN Vendor
External Send OA Ordering Agent

 Suppose here Partner functions GS & IP are not maintained then to this partner functions
vendor with this output type not possible to transmit or print PO to Vendor.
 Click Save (Several Times)
 Back to Popup
 Click Fine-tunes control; Purchase Order
 For each option (1,2,3) maintained our new output type entries
 Back to IMG
 Message Determination Schemas
 Define Message Schemas for Purchase Order
 Click Maintain Message determination Schema: Purchase Order
 Click Enter
 New Entries
 Enter New Procedure (ZZZZZ-Purchase Documents)
 Select Procedure row and click 'Control Data'
 New Entries

Step Counter Condition Type Requirement Manually

10 ZEU 101
20 ERIN 101
30 Mail 101
40 101

 Click Save
 Back to Popup
 Assign Schema to Purchase Order

Usage Application Procedure T N P Rel

B EF YYYY

 Click Save

 Back to IMG
 Assign Output devices to Purchase Order Purchase Group Output Device
(ODV)
432 LP01

3
Test Scenario:

Step 1: Create Vendor with Partner Function 'OA' or 'VN'

Stpe 2: Create Condition Record 'NACE-T Code' Select Application 'EF'
 Click Condition Record and Select our new output type 'ZEU'
 Click Condition Records
 Select New Table
 Click Enter
 Enter Purchase Organization, Purchase Group and Vendor Number
 Click Execute

Vendor No Partner Function Medium

4455 VN 1(Print Out)
4455 VN 2 (FAX)

 Click Communication
 Enter Output device as 'LP01'
 Click Save

Step 3:Create PO with above vendor, Purchase Organization, Purchase Group.

 Click Message button

 Observe defaultly output type, medium and communication methods picked or not from
condition record 'NACE'
 Click Save
 Print/Transmit PO to Vendor in 'ME9F'

Note: Same way configure output determination settings for Inventory documents and Invoice
documents in

SPRO MM Inventory Management & Physical Inventory Output

determination

 Here observe all IMG Settings

 Back
 Logistics Invoice Verification Message determination
 Here also observe IMG settings for Invoice message determination and then main condition
records in NACE.

4
 Document Doct. Category Print/Transmit Release Doct.
PR B --NO- ME55/ME54N
RFQ A ME9A ME45
PO F ME9F ME28/ME29N
CONTRACT K ME9K ME35K
SCHEDULED AGREEMENT L ME9L ME35L
INVENTORY DOCT (GR,GI) MB90
INVOICE DOCUMENT MR90/MR91
(FOR AUTOMATIC
SETTLEMENT)

1. All external document header data table: EKKO

2. All external document item data table: EKPO
3. All external document item condition type: KONV
4. Material document header data table: MKPF
5. Material document item data table: MSEG
6. Account document header data table: BKPF
7. Account document item data table: BSEG
8. Invoice header data table
9. Invoice item data table

5
SAP MM

[RELEASE PROCEDURE]
RELEASE PROCEDURE WITHOUT CLASSIFICATION, RELEASE PROCEDURE WITH CLASSIFICATION

1
 RELEASE PROCEDURE
Release Procedure: Every purchasing document can be subjected to release strategy or
approvals when conditions are satisfied.

Types of Release Procedures:

1. Release Procedures with Classification

2. Release Procedures without Classification.

RELEASE PROCEDURE WITH CLASSIFICATION RELEASE PROCEDURE WITHOUT

CLASSIFICATION

1. It is used for PR, RFQ, PO, Contract, 1. Only for PR

Scheduled Agreement.

2. PR can be released at Item level or at 2. PR releases only at item level but not at
header level but all external purchase header level.
document will be released only at header level
but not at Item Level.

3. Communication Structure of PR is CEBAN 3. No communication structure.

and for external purchase document is CEKKO
and for service entry sheet is CESSR.

Release Procedure for PO:

Example 1:
Total Net Value Release Strategy Release Group Release Codes
10k - 1Lack S1 RG 10. Sr. Purchase Officer
20. Asst. Manager Proc
30. Manager
40. Sr. Manager
Example 2:
Total Net Value Release Strategy Release Group Release Codes

>1 Lac S2 RG 10. Sr. Purchase Officer

20. Asst. Manager Proc
30. Manager
40. Sr. Manager
50. General Manager

2
SPRO MM PURCHASING PURCHASE ORDER RELEASE
PROCEDURE FOR PURCHASE ORDER EDIT CHARACTERISTIC (CT04- T CODE)

Create Characteristic for Net order value field as follows..

 Characteristic : Char_Netordervalue
 Click Create button
 In Additional data tab:
Enter Table No: CEKKO Field Name: GNETW (Total Net order value)
Ensure field name must be there in structure 'CEKKO' in 'SE11- Tcode'.
 In Basic data Tab: enter currency as 'INR'
Select multiple value and Interval values allowed
 In Value tab: Enter Characteristic Value (Total Net order value)
Characteristic Value:
10000 - 100000 or >100000

 In Restriction tab: Enter Class type as 032

 Click Save

Create another Characteristic for Purchase group field:

 Characteristic : char_Purgroup
 Click Create Button
 In Additional Data tab:
Enter table Name: CEKKO Field Name: EKGRP (Purhcase Group)
 In Basic data tab: Select Multiple values
 In Value tab: Enter
Character Value Description
000 xxx
 Check Additional Values : If we set this Indicator additional values are possible during
creating Release Strategy.
 In Restriction Tab: Enter Class type : 032
 Click Save
Note: Characters are not transportable.

 Back to IMG
 Edit Class (CL02- T Code)

3
 **Group the characters together and assign a class as follows..
 Class : Class_Ext Doct, Class Type: 032
 Click Create
 In Basic data tab:
Description: Class for release procedure for external document
 In Char tab: Assign above characteristics
Char
Char_Net Order Value
Char_Purgroup
 Click Save
Note: Class also not transportable
 Back to IMG
 Define Release Procedure for PO
 Click Release group
 New Entries

Release Group Release Object Class Description

RG 2 Class_extdoc Rel group for xxxxx

Note: Here only one class is allowed but multiple release groups are possible.
 click Save
 Back to IMG
 Click Release Code
 New Entries

Group Code Work Flow Description

RG 10 1 Sr. Purchase Officer
RG 20 1 Asst. Manager
RG 30 1 Manager
RG 40 1 Sr. Manager

 Click Save
 Back to Popup
 Click Release Indicator
Release Id Released Changeable %value Description
Class
B 4 10 Blocked, Changeable with value
G 2 40 Released
R 1 Released no Changes

4
  To Which released code release Id 'B' assigned with that release codes this PO is
released, still Po status is blocked status.
 To Which released code released Id 'G' or 'R' assigned with that released codes, If PO is
released then PO status is released status.
 Back to IMG
 Click Release Strategies
 New Entries
Release Group : RG Release Strategy : S1 (10K to 1 Lakh)
Release Codes: 10,20,30,40
 In Release Strategy maximum release codes are 8 only.
 Click 'Release Pre requisities' button
 10 20 30 40
10
20
30
40
 click Continue
 Click " Release Statuses" button

10 20 30 40
Blocked Changeable with value
Blocked changeable with value
Blocked Changeable with Value
Blocked Changeable with value
Released

 Click Continue
 Click Save
Note: Upto here only Release Strategy settings are transportable
 Click Classification button

Character Description Value

Total Net order value 10K - 1 Lac
Purchase Group 000 or 001

Note: These Characteristic vlaues not transportable for development server to Quality and
Production servers that's why manually maintain these Characteristic vlaues in Quality and
Production servers in 'CL02N - T Code'.

5
  Release Simulation
 Click Simulate Release
 Double click on each release code and observe status
 Exit from this screen

Define another Strategy 'S2' as follows..

 Click New Entries and enter release codes
 Click Release prerequisites
 Click Release Status and select release Indicators
 Click Continue and save
 Click Classification and enter values
 Back to Popup
 Click Work Flow
Group Code OT Agent ID
RG 10 Sapuser
RG 20 Srinivas

 New Entries
 Again work flow settings has to configure by ABAPER in 'SWDD T- Code or PFTC _ T
Code'
 Back to IMG
 Check Release Strategy observe any errors are there.

Test Scenario:
Step 1: Create PO with above release Strategy values i.e., with Purchase group 000 or 001 and
with total net order value 10K upt0 1Lakh or greater than 1 Lakh ad click check button. n
release Strategy tab observe which release strategy is subjected and Save.
Step 2: Release PO in ME28 for multiple PO's at a time, ME29N for Single PO.

6
 RELEASE PROCEDURE FOR PR WITH CLASSIFICATON

Sl Release Release Release Goods

No. Strategy Group
1 PR item Value S1 RG 10. Sr. Purchase Officer
10000 - 20000 20. Asst. Manager Proc.
Plant - 1000 30. Manager Proc.
40. Sr. Manager
2 If Total Net Order Value S2 RG 10. Sr. Purchase Officer
> 20000 20. Asst. Manager Proc.
Plant - 2000 30. Manager Proc.
40. Sr. Manager
50. General Manager

SPRO MM PURCHASING PURCHASE REQUISITION RELEASE

PROCEDURE PROCEDURE WITH CLASSIFICATION
 Edit Characteristics (CT04 - T Code)

Create Character for Item Value as Follows:

 Characteristic : Char_Itemvalue
 Click Create button
 In Additional data tab:
Enter Table No: CEBAN Field Name: GSWRT (Item value)
Ensure field name must be there in structure ' CEBAN ' in 'SE11- Tcode'.
 In Basic data Tab: enter currency as 'INR'
Select multiple value and Interval values allowed
 In Value tab: Enter Characteristic Value
 Characteristic Value:
10000 - 100000 or >100000
 In Restriction tab: Enter Class type as 032
 Click Save

Create another Characteristic for Plant:

 Characteristic : char_Plant
 Click Create Button
 In Additional Data tab:
Enter table Name: CEBAN Field Name: WERKS (Plant)
 In Basic data tab: Select Multiple values

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  In Value tab: Enter
Character Value Description
TSJU Jamshed pur Plant
 Check Additional Values : If we set this Indicator additional values are possible during
creating Release Strategy.
 In Restriction Tab: Enter Class type : 032
 Click Save
Note: Characters are not transportable.
 Back to IMG
 Edit Class (CL02- T Code)

**Group the characters together and assign a class as follows..

 Class : Class_PR, Class Type: 032
 Click Create
 In Basic data tab:
Description: Class for release procedure for PR
 In Char tab: Assign above characteristics
Char_Item Value
Char_Plant
 Click Save
Note: Class also not transportable
 Back to IMG
 Setup Procedure with Classification
 Click "Release groups"
 New Entries

Release Group Release Object Class Description

RG 2 Class_PR Rel group for xxxxx

Note: Here only one class is allowed but multiple release groups are possible.
 click Save
 Back to IMG
 Click Release Code
 New Entries

Group Code Work Flow Description

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RG 10 1 Technician 1
RG 20 1 Technician 2
RG 30 1 Supervisor
RG 40 1 Plant Incharge

 Click Save
 Back to Popup
 Click Release Indicator
 Go to 'Details' of each Release ID and observe the Settings
 Back to IMG
 Click Release Strategies
 New Entries
Release Group : RG Release Strategy : S1
Release Codes: 10,20,30,40
 In Release Strategy maximum release codes are 8 only.
 Click 'Release Pre requisites' button
 10 20 30 40
10
20
30
40
 click Continue
 Click " Release Statuses" button

10 20 30 40
Blocked Changeable with value
Blocked changeable with value
Blocked Changeable with Value
Blocked Changeable with value
Released

 Click Continue
 Click Save
Note: Upto here only Release Strategy settings are transportable
 Click Classification button

Character Description Value

Item value 10K - 20K
Plant TSJU

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  Select the required Char Values
 Back
 Save
 Back to IMG
 Check Release Strategies
 Observe Erros

Test Scenario:
Create PR with total item value within 10000 - 20000 INR and with Plant TSJU and Click 'Check'
button and observe release strategy button at item level.

Release PR:
ME54N - For Individual PR, ME55 - Collective PR

Q: What Characters are used in Release Procedure for PR and PO's etc in the project?
Ans: Net order value, document type, purchase group etc are for external purchasig documents
and cost centers item value plant etc for PR.

Note: In real time Release procedure or Release Strategy character values will not be
transported form development server to quality and production server.
Again these release strategies character values should be entered manually in (CL20N T Code)
in Quality and production server.
{SE10 to Transport from one to other server}

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SAP MM

[SPLIT VALUATION]
SPLIT VALUATION, SPLIT VALUATION WITH BATCH MANAGEMENT

1
 SPLIT VALUATION

SPLIT VALUATION: It is used to manage different prices for the same material i.e., for
externally procured material one price and for in-house production or for internal
procured material another price.

Valuation Category: It is the criteria of valuations the material i.e., for external
procurement one valuation type and for Internal procurement (In-house Production)
another valuation type etc.,

Example: Valuation Type Valuation Cate. Plant

For External Procurement V1

V TSJU

For Internal Procurement V2

(or) In-house production

SPRO MM VALUATION & ACCOUNT ASSIGNMENT SPLIT VALUATION

ACTIVATE SPLIT VALUATION (OMWO - T Code)
 Select Active
 Back to IMG
 Configure Split Valuation (OMWC- T Code)
Note: Split Valuation Settings are not Transportable
 Click Global Types
 Click Create
 Create Valuation type for external procurement
Valuation Type : V1
Ext. Purchase Orders: 2
Internal PO : 0
Acct Cat. Ref : 0001 (To See the Valuation Classes Click Acct. Cat
button)
 Then Material Master these account category reference valuation classes will be
picked to this valuation type.
 Click Create
 Click Save

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  Define another Valuation type for Internal Procurement as follows..
Valuation Type : V2
Ext. Pur. Order : 0
Int. Pur. Order : 2
Acct. Cate. Ref. : 0008

 Click Create
 Click Save
 Back and Back
 Click Global Categories
 Click Create

Valuation Category : V
Description : External/Internal
Default Ext Proc. : V1 (Then in PO this Valuation type picks defaultly)
Ext. Proc. Mandatory :
**If We Set this Indicator, the default valuation type comes in display mode.
Default In house :
Valuation Type Automatic:
** If We set this Indicator then in each batch number will become as valuation type, If every
batch has to maintain with different prices then select this option.
 Click Create
 Click Save
 Click "Types-->Cate" Button
 Valuation Category : V
 Select valuation type V1 & V2 and click Activate
 Click "Cate-->OUS (Operational units i.e., Plant)
 Valuation Category : V
 Select our plant : TSJU
 Click Activate
**One Valuation category can be activated in multiple plants and one plant can have
multiple valuation categories
 Click Save

Test Scenario:
Step 1: Create Material master in above activated plant and in Accounting 1 view select
above valuation category 'V'.
Valuation Class: 3000 (Optional)
Price Control : V (Moving Avg Price)
 Click Save

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Step 2: Create or extend same material for external procurement with the valuation type
'V1'.
In MM01, enter Same material no, and select Accounting 1 view only and click Organization
level
Plant : TSJU (Same Plant)
Valuation Type : V1
 Click Enter
Valuation Class : 3001
Price Control : V
 Click Save

Step 3: Extend same material for Internal procurement (or Inhouse Production) Valuation
type as follows..
 Go to MM01
 Enter Same material No.
 Select Accounting 1 view
 Enter Same Plant
 Enter Valuation Type : V2
 Click Enter
 Enter Valuation Class : 7900
 Price Cotrol : S (Standard)
 Standard Price say 80Rs./pc

Step 4: Create PO to external vendor for above material

 In Delivery Tab: Enter Valuation type as V1
 Save PO

Step 5: Enter GR
 In Material tab: Observe valuation type V1
 Post GR

** Observe the stock in MMBE

 In Accounting document V1 Stock value posted to V1 valuation class and relevant
G/L Account.

** In the same way procure this material from Internal plant as follows..

Step 1: Create Same material in Supplying Plant in MM01

Step 2: Create PO or STO in the receiving Plant with Document type 'NB'

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  Observe Item Condition Tab
 In Delivery Tab: Select Valuation type 'V2'
 Click Save

Step 3: Transfer posting in Supplying Plant to receive plant

 Go to MB1B
 Movement Type 351
 Enter remaining details and click Enter

Note: If stock is not there in supplying plant then maintain stock in supplying plant with
561 Movement or procure from external vendor or in-house production dept etc.,

 Click To Purchase Order

 Click Save
 Go to this document display and in accounting document supplying plant value
decreased in Stock G/L account and receive plant stock increased in receive plant
stock G/L account which is assigned to V2 valuation class.

Step 4: Enter GR in receive Plant

 In Material Tab: observe valuation type 'V2'
 Post GR
 Observe total V1 & V2 stock in MMBE
 Go to MM03 and in Accounting 1 view observe total stock and total value price of
each valuation type.

Example 2:
For External Procurement X1
(from Overseas Vendor)

From External Procurement X2 X TSJU

(From Domestic Vendor)

From In house Production X3

or Internal Procurement

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 SPLIT VALUATION WITH BATCH MANAGEMENT

If material available in different batches say one batch with 1st grade Quality
with one price and another batch with 2nd grade quality with different price
then maintain prices for each batch separately as follows..

SPRO MM VALUATION & ACCOUNT ASSIGNMENT SPLIT VALUATION

CONFIGURE SPLIT VALUATION
(Here no need to create valuation types)

 Click Global Categories

 Click Create
Valuation Category : V
Description : Batch
Values Automatic :
** If we set this Indicator same batch number will be converted as valuation type.
 Click Create and Save
 Back
 Click " Types --> Cate" button
 Click " Cate --> OUS" button
 Select Valuation Category 'V'
 Select the required plant say TSJU
 Click Activate button
 Click Save

Test Scenario:

Step 1: Create Material master in above plant

 In Accounting 1 view select valuation category as "V"
 In Purchasing view Batch management is activated because for Valuation category
'V' valuation type automatic is selected.
 Click Save

Step 2: Create PO for this material.

Step 3: Enter GR
 Select Item OK, Click Check then system assign Batch number internally and same
batch number converted as valuation type.
 Post GR

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  Observe this batch or this valuation type stock in MMBE
 In Material master Accounting 1 view observe this Batch number stock value and
prices etc.,

Step 2:

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SAP MM

[PHYSICAL INVENTORY]
PHYSICAL INVENTORY, CYCLE COUNTING, CYCLE COUNTING WITH BATCH INPUT MANAGEMENT
 PHYSICAL INVENTORY

Verification of Physical stock with good balance (System Stock) is known as Physical
Inventory.

Physical Inventory will be done mainly to prepare Warehouse balance Sheets for FI
Auditing purpose.

Types of Physical Inventory:

1. Manual Physical Inventory (Continuous, Annual or Periodical)

2. Cycle Counting
3. Inventory Sampling

Manual Physical Inventory:

Step 1: Create Physical Inventory Document

LOGISTICS MM PHYSICAL INVENTORY PHYSICAL INVENTORY

DOCUMENT CREATE (MI01 - T Code)

 Go to MI01
 Enter Document Date
 Enter Planning Counting Date
 Plant
 Storage Location
Note: For each Storage location separate Physical Inventory numbers are created.
Note : For each Special stock also separate Physical Inventory documents created.
 Posting Block :
 If We Set this Indicator No goods movements are possible for this document
materials until completion of Physical Inventory process.
 Freeze book Inventory
 If we set this Indicator then the current stock will be freeze and even though goods
movements are allowed and stock may Increase/decrease in MMBE, but the physical
stock verifies only with freeze stock.
 Enter Material Number
 Click Save
 Here Physical Inventory document created based on number assignment in (OMBT-
T Code) observe Physical Inventory Transaction type 'IB' group number range.

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Step 2: Print Physical Inventory Document.
 Go to MI21
 Enter Phy. Inv. Doct. No
 Execute
 Print Preview

Step 3:Enter Count Results ( MI04 - T Code)

Note: Hereenter Physically existing Stock details.

 Physical Inventory Document :

 Click Enter
 Enter Physically counted stock here
 If counted quantity is '0' then select 'ZC' Indicator
 Click Save

Step 4: Post Differences (MI07 - T Code)

 Enter Physical Inventory Document No.

 Click Enter
 Observe the difference between physical stock and system stock and the difference
stock value with material master price.
 Enter the reasons for these differences belongs to 701 or 702 Movement types.

SPRO MM INVENTORY MANAGEMENT & PHYSICAL INVENTORY

MOVEMENT TYPES RECORD REASONS FOR GOODS MOVEMENTS (OMBS - T Code)

 Click Reason for Goods Movement

Movement Reason

701 Wrongly entry at GR/IR

702 Theft
703 Expired

 Click Save
(Unrestricted Material - 701, 702; Qual. Ins. Mate- 703, 704, Blocked- 705,706)
 Here Physical Inventory document is posted and material document is created
 In MMBE system stock adjusted same as Physical Stock.

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  Go to Material document display observe triggered movement types 701, 702 and in
accounting document for each material Inventory G/L Account debited or credited
with Transaction key 'BSX' and loss or gain values due to Physical Inventory debit or
credited with Transaction key 'GBB" and account modifier 'INV'.

CYCLE COUNTING

SPRO MM INVENTORY MANAGEMENT & PHYSICAL INVENTORY

PHYSICAL INVENTORY CYCLE COUNTING (OMCO - TOCE)

PLANT CC PHY. INV. INDICATOR NO. OF PHY. INVENTORY FLOAT TIME PERCENTAGE
TSJU A 12 5 60
TSJU B 6 10 30
TSJU C 3 20 10

 Click Enter (Then system takes intervals automatically)

 Click Save

Test Scenario:
Step 1: In material master store 1 view select CC. Indicator A, B and C
 Click Save

Create Physical Inventory Documents with Cycling Counting:

LOGISTICS MM PHYSICAL INVENTORY SPECIAL PROCEDURES

CYCLE COUNTING CREATE PHY INVENTORY DOCUMENT (T CODE - MICN)
 Enter Plant
 Enter Storage location
 Enter Planned Counting Date
 Enter Name of Session as 'MB_MI01_CN or any Name
 Click Execute
 In Next screen observe List of CC Indicator materials which are due for Physical
Inventory as on dated based on CC Indicator.
 Click 'Generate Session'
 Click ' Process Session'
 Select Session row and Click 'Process'
 Again Click 'Process'
 Then it takes to 'MI01'

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  In Popup window Click Enter Continuously
 Then system will add all items into physical Inventory documents with the help of
batch input method.
 Click 'Session Overview'
 Click 'Log' and select Session row and Click 'Display' button and observe created
Physical Inventory document Numbers.
 Print Physical Inventory document in 'MI21' and then count physically existing
stock and enter counted Physical quantity in system in 'MI04' and Post differences i
'MI07' in Normal process.

MANUAL PHYSICAL INVENTORY WITH BATCH INPUT METHOD (W/O CYCLE COUNTING)

Step 1: Create Physical Inventory document with batch input method.

LOGISTICS MM PHYSICAL INVENTORY SESSIONS CREATE

PHYSICAL INVENTORY DOCUMENT WITHOUT SPECIAL STOCK (T CODE- MI31)

 Enter Plant
 Enter Storage Location
 Enter Name of Session as 'MB_MI01' or any Name
 In control Sub Screen Check Generate Input Method
 Enter Max. No. Items/Document
 In next Screen displays the above plant and storage location materials
 Click 'Process Session' button, then it takes Batch Input session i.e., SM35- T Code
 Select Session Row and Click 'Process' button
 Again Click 'Process' button, then it takes to 'MI01', and add all the above Items by
click enter button in Popup.
 Print Inventory documents in 'MI21' then enter count 'MI34' and post the
differences in 'MI37'.

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SAP MM

[INBOUND DELIVERY]
INBOUND DELIVERY

1
 INBOUND DELIVERY

Step 1: Create PO say for 100 Pcs with some delivery date

 In 'Confirmation' tab, Select Confirmation control as 'Shipping Notification' or

'Inbound Delivery'.
 Click Save

Step 2: Create Inbound Delivery (VL31N- Tcode)

 Go to VL31N

(After receiving our pO vendor will send shipping notification document with the details of
exact quantity and exact delivery date etc., and the same details in our system is entered as
'Inbound Delivery' and based on this inbound delivery we can plan our production
activities and ware house activities etc.,)

 Enter PO Number
 Click Enter
 Enter Exact delivery date and exact delivery quantity
 In Shipment tab enter Transportation planning date in Vendor Company.
 In Stock Placement Tab enter in Which store the coming goods has to place
 Click Save
 Note down the shipping notification or Inbound delivery number.
 Check the availability in MD04/MD06

Step 3: Enter GR in Normal Process

Note : If GR date and Gr Quantity is not matching with inbnound delivery date and Quantity
then in Vendor Evaluation as per shipping notification reliability wise system will give less
score to this vendor (In ME61 see the Vendor Evaluation and select main criterio delivery)

 Click Details
 And Observe score as per notification reliability

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SAP MM

[NON STOCK/NON VALUATED

1
MATERIAL PROCUREMENT]
NON STOCK MATERIAL PROCUREMENT, NON VALUATED STOCK MATERIAL PROCUREMENT

2
Non Stock Material Procurement:
For some materials, Inventory will not be maintained on Quantity and Value basis and these
materials always has to be procured for Consumption purpose only.

Ex: Stationary, Consumables and other shop floor materials.

IMG Settings:

 Go to 'OMS2'
 Select material Type - NLAG
 Click 'Details' Button

(Observe all the details which is selected and which are not selected)

 Uncheck Quantity and Value updation indicators in our valuation area (Plant).

Test Scenario at end user Side:

Step 1: Create Material master in MM01 with material type 'NLAG'.

(There is no need to select 'Storage 1' view because no need to maintain stock)

Step 2: Create PR for this material 'ME51N'

 Document Type NB
 Account Assignment Category say Cost Center
 Item Category 'Standard'
 Enter Material Number
 Enter Quantity and Plant
 In Account Assignment Tab enter Cost Center
 Save PR.

Step 3: Create PO

 Go to ME21N
 Document Type 'NB'
 Enter Vendor Number
 Click Enter
 Enter Purchase Organization
 In Item row enter PR Number
 Click Enter
 In Condition Tab Enter Price

2
  Save PO

Step 3: Enter GR

 Go to MIGO
 Goods Receipt; Purchase Order
 Enter PO Number
 Click Enter
 In Where Tab Storage Location field is not appearing in PO. Account Assignment entry is
there as well as in OMS2 quantity updation not selected
 In Account assignment tab observe Cost Center and consumption G/L Accounts which
are copying from PO
 Item OK, Check and Post.

**In Accounting Document material value is debited to Cost Center consumption G/L Account
but not to stock or inventory G/L account and GR/IR clearing account is credited.

Step 5: Enter IR in Normal Process.

3
NON VALUATED MATERIAL PROCUREMENT:

For some materials inventory has to maintain only on Quantity basis but not on value basis that
means these materials always has to be procured for consumption purpose only but at GR.
Goods will be placed in Store on Quantity basis, but value will be booked to consumption G/L
Account but not to stock G/L Account.

IMG Settings:

 Go to OMS2
 Select material type 'UNBW'
 Click 'Details' Button
 Here 'Storage' view is selected
 Here accounting view is not selected
 Click 'Quantity/Value ' updating
 Select 'Quantity' updation only

Step 1: Create Material master in 'MM01' with material type 'UNBW'

Step 2: Create PR for this material in 'ME51N' by giving some account assignment category
entry. (In OMS2 value updation is not selected)

Step 3: Create PO with reference to PR in 'ME21N', here also account assignment tab account
assignment category 'K' is picked automatically or for relevant consumption dept.

Step 4: Enter GR with reference to PO and with 101 movement type, but here it is must to enter
the storage location in Where tab because in 'OMS2' only Quantity updation is selected and
value updation is selected.

After GR Stock will in increase in MMBE and in accounting document value is booked to
consumption G/L Account but not to Stock G/L Account.

Step 5: Enter IR in Normal Process

Step 6: Enter GI for this material with 201 Movement Type. Then after GI stock decreases in the
store but there is no accounting document here, Because stock value is zero and material value
is already booked to consumption G/L Account at GR itself.