Module 7: Materials Management Configuration for Goods Receipt

With the accounts and vendors configured, more configuration activities are required in the Materials Management module before purchasing transactions can be completed. First, default values and tolerance limits must be set.

7.1 Default Values for Inventory Management Reservations

To set up the default values for inventory management reservations, follow the menu path:

Materials Management Inventory Management and Physical Inventory Plant Parameters (click clock icon ) which will produce the following screen:

Click on the New entries icon (

), which will produce the following screen:

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Module 7: Materials Management Configuration for Goods Receipt

Enter plant ##PT Check these items Enter 30 in both Reservations fields

Enter your plant (##PT), then enter/select the following: Create Sloc. Automat.: Checked This option allows automatic creation of the storage location data in the material master record at the time of the first goods receipt. Del. compl. Default: Checked If this indicator is set, the system suggests the "delivery completed" indicator as a default value when a goods receipt is posted with reference to a purchase order or order (provided that the quantity delivered falls within the under/over delivery tolerances). The delivery completed indicator denotes a closed purchase order item for which no more goods receipts are expected. Reservations Movement allowed: Checked Days mvt. allowed: 30 Retention period: 30 A reservation is a request to the warehouse to keep a material ready for issue at a future date for a certain purpose. The purpose of a reservation is to ensure that a material is

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available when required. A material can be reserved for a cost center, an asset, or an order for example. The Days mvt. allowed parameter sets the number of days before the reservation data that material can be moved. If the requirement date of a reservation item is further in the future than the number of days specified here, no movements are yet allowed in respect of this item. For example, if the current date is 6/1/2004 and the Days mvt. allowed is set to 30, then material with a reservation date of 7/1/2004 or earlier can be moved. The Retention period indicates the time in days during which a reservation item resides in the system before being deleted by the reservation management program. If the "date required" of a reservation item is older than the current date minus the number of days specified here, the system sets the deletion indicator in the reservation item. When you have made the appropriate entries, click on save icon ( icon ( time to exit to the IMG. ), then click on the back ) one more

) and verify that your plant is now listed, then click on the back icon (

7.2 Maintain Purchase Price and Discount Tolerance Limits

These settings decide how much deviation from the data in the purchase order that will be allowed. To set the purchasing tolerance limits, follow the menu path:

Materials Management Purchasing Purchase Order Set Tolerance Limits for Price Variance (click clock icon ) which will produce the following screen:

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Module 7: Materials Management Configuration for Goods Receipt

Click on the New entries icon ( ), which will produce the following screen:

Enter PE (price variance: purchasing) for Tolerance key, ##FS for company code Check and enter 5 for percentage limits

Enter PE for the Tolerance key, ##FS for the Company code, select Check limit for the percentage tolerance limits and enter 5% for the value. Click on the next entry icon ( which will give you an empty version of this screen: ),

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Module 7: Materials Management Configuration for Goods Receipt

Enter SE (maximum. cash discount deduction: purchasing) for the Tolerance key, ##FS for company code, check and enter 10 for percentage limits

Enter SE for the Tolerance key, ##FS for the Company code, select Check limit for the percentage tolerance limits and enter 10% for the value. Click on the save icon ( by the back icon ( ), followed

). Verify that both tolerance keys (PE and SE) are now listed for your ) two more time to return to the IMG.

company code, then click on the back icon (

7.3 Maintain Goods Receipt Tolerance Limits

Next, we can set the Goods Receipt Tolerance Limits to decide how much variation from the data in a purchase or production order will be allowed at goods receipt. To do this, follow the menu path:

Materials Management Inventory Management and Physical Inventory Goods Receipt Set Tolerance Limits (click clock icon ) which will produce the following screen:

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Module 7: Materials Management Configuration for Goods Receipt

Click on the New entries icon (

), which will produce the following screen:

Enter B1 for Tolerance key ##FS for Company Code Enter 5 for lower and upper limits

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Enter B1 for the Tolerance key, ##FS for the Company code, select Check limit for the percentage tolerance limits and enter 5% for the value. Tolerance key B1 determines the level where a warning message will be displayed. A warning message merely informsit will still let you complete the transactions. Click on the next entry icon ( empty version of this screen: ), which will give you an

Enter B2 for Tolerance key ##FS for Company Code Enter 10 for lower and upper limits

Enter B2 for the Tolerance key, ##FS for the Company code, select Check limit for the percentage tolerance limits and enter 10% for the value. Tolerance key B2 determines the level where an error message will be displayed. An error message will not let you complete the transaction. Click on the next entry icon ( this screen: ) which will give you another empty version of

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Enter VP for Tolerance key ##FS for Company Code Select Do not check for all options

Enter VP for the Tolerance key, ##FS for the Company code, select Do not check for all entries. The VP tolerance key checks the moving average price in the material master to the purchase order price. As the moving average valuation is a complicated process in SAP, we will choose here to avoid problems by not checking for this variance. Click on the save icon ( followed by the back icon ( IMG. )

). Verify that three tolerance keys (B1, B2 and VP) are now ) two more time to return to the

listed for your company code, then click on the back icon (

7.4 Maintain Invoice Receipt Tolerance Limits

We also need to set tolerance limits for invoices to determine how much variation from the purchase order will be allowed. To do this, follow the menu path:

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Materials Management Logistics Invoice Verification Invoice Block Set Tolerance Limits (click clock icon )

Click on the New entries icon (

), which will produce the following screen:

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Module 7: Materials Management Configuration for Goods Receipt

There are a number of tolerance keys that need to be set. Using the same procedure as before, set the following tolerance keys for invoice receipts: Lower Limit Tolerance Key AN AP BD BR BW DQ KW PP PS ST Comp. Code ##FS ##FS ##FS ##FS ##FS ##FS ##FS ##FS ##FS ##FS Absolute Do not check Do not check Do not check Do not check Do not check Do not check Do not check Do not check Do not check Do not check Percentage Check limit: 5% Check limit: 5% Do not check Do not check Do not check Do not check Do not check Check limit: 5% Do not check Do not check Upper Limit Absolute Do not check Do not check Do not check Do not check Do not check Do not check Do not check Do not check Do not check Do not check Percentage Check limit: 5% Check limit: 5% Do not check Do not check Do not check Do not check Do not check Check limit: 5% Do not check Do not check

After each tolerance key entry, use the next entry icon ( tolerance keys are entered, click on the save icon (

) to get a blank screen. When all ) to save the tolerance keys.

7.5 Confirm Qty and Value Updating in Material Type for Plant
In cost accounting, it is important to have a correct value for the cost of material used in production. The R/3 system can be configured to collect information on material movements (such as goods receipts and invoice receipts) in each period at historical exchange rates. This data is used during material price determination to calculate new valuation prices for the material. Then, the material stock account is reconciled in multiple currencies with the accounts in Financial Accounting. To allow for automatic updating of material values for the material types we are using, follow the menu path:

Logistics General Material Master Basic Settings Material Types Define attributes of material types (click clock icon ) which will produce the following screen:

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Select FERT, then double-click on Quantity/value updating

Select material type FERT, then double-click on Quantity/value updating. This will bring up the following screen:

Check Qty. updating and Value upd. for your plant, then click on the save icon

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Check the Qty. updating and Value upd. options for your plant (##PT), then click on the save

icon (

).

Click on the back icon (

), then repeat the process for material types HALB and ROH.

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