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Presentation Server
Application Server
Database Server
BUSINESS TRANSACTION
Is a sequence of dialog steps that are consistent in a business context and that belong
together logically.
-
A business object composed of Tables that are related in a business context, including
related application programs
Attributes can be modified by the methods that belong to the business object.
Business objects are maintained at Business Object Repository (BOR)
Maximum number of sessions we can open in SAP R/3 is Six
BUSINESS FRAMEWORK
-
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BAPI
- Business components react with business frame work architecture via Business
Application Program Interface (BAPI)
- Business Framework architecture is the strategic product architecture of the R/3
system.
- BAPI is a well defined interface providing access to processes and data of business
application system.
- BAPI is an entry gate to R/3 system
- Functions of BAPIs are
1. Create Objects
2. Display attributes of objects
3. Change attributes of objects
- A BAPI is assigned to One and ONLY one business object
-
Using Business framework technology, SAP provides its customer with a platform
to configure and connect business processes and information flows across all
components of the business frame work, also across physically separated
components.
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ENTERPRISE STRUCTURE
CLIENT
Is a commercial Organizational Unit within R/3 system with its own data, Master
records and set of tables.
It is the highest level element of all Organizational unit
Represented by 3 digit alphanumeric key
COMPANY CODE
It is the smallest Organizational unit within R/3 system for which can have an
independent accounting department within external accounting. Legal entity
It is having balance sheets, Profit & Loss accounting required by the law
Represented by 4 digit alphanumeric key.
PLANT
Is an organizational logistic unit that structures the enterprise from the perspective
of production, procurement, Plant maintenance, Material Planning
It can be a branch office/ Central delivery ware house/ HQ/ Maintenance Plant.
Represented by 4 digit alphanumeric key
STORAGE LOCATION
Is an Organizational unit that allows the differentiation of material stocks within the
Plant
Inventory management on quantity basis is carried out at storage location level.
Physical Inventory is also carried out at storage location level.
VALUATION AREA
-
PURCHASE ORGANIZATION
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Flow
1.
2.
3.
4.
5.
6.
7.
8.
Determination of requirements
Source determination
Vendor selection
Purchase Order processing
Purchase Order monitoring
Goods Receipt
Invoice Verification
Payment processing (FI)
Purchase Order : A formal request to Vendor to supply certain goods / services under the
stated conditions
When we enter an invoice against a PO/ GR, the system checks the price, rate, payment
terms with respect to Purchase Order and Quantity w.r.to GR
While entering the GR, system checks whether the material is as per PO or not w.r.to
Quantity, Shelf life, etc.
Several GRs can be entered for a PO item in one operation
The type of Invoice verification (PO Based / GR Based ) is to be fixed in PO , Invoice Tab
If MRP Procedure is set, PR will be generated automatically during MRP run.
Purchasing value Key
for auto-reminders and supply tolerances. It is fixed in the purchasing view of the material
master. It is managed at CLIENT LEVEL.
Info update Indicator is set in material data of Purchase Order/ Quotations/ Outline
Agreement (Item Tab)
Item Category
Defines whether an item requires or can have
- A material number
- An account assignment
- Goods Receipt
- Invoice Receipt
Item categories displayed depends upon DOCUMENT TYPE (fixed in customizing)
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ITEM CATEGORY
Standard
Consignment
Subcontracting
Stock Transfer
Third Party
Limit/ Blanket
BLANK
K
L
U
S
B
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
Invoicing Plan
System creates invoice automatically as per Plan and release them for payment
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For automatic settlement for periodic invoicing plan, ERS must be selected in
Vendor Master
In partial invoicing plan, provision of down payment in the Billing or Invoicing
plan rule date
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MASTER DATA
VENDOR MASTER
Vendor Master Data is maintained at
- General - CLIENT LEVEL INFORMATIONS
Addresses
- Company code level COMPANY CODE LEVEL INFORMATIONS
Accounting related - Payment terms, payees,
- Purchasing Organization level Related to purchasing Currency, Inco-terms, VSR, etc
We can BLOCK a Vendor Master Record (XK05) - Complete
If we want to block a Vendor for a SPECIFIC MATERIAL done through SOURCE LIST
ME01
Automatic PO generation is in purchasing data.
ACCOUNT GROUP of a Vendor
Control functions of Vendor account group are
1. Status of the Vendor ( One time Vendor or routine vendor)
2. Field selection in the Vendor Master Record
3. Partner schemas
4. Vendor Sub range
5. Type of number assignment (external or internal)
Single Master Record is maintained for one time Vendor Account group is CPD
Other routine vendors are generally in LIEF
Vendor Reconciliation account
Its a G/L account which maps Companys liability towards several vendors.
Depending on account grouping selected, system assigns a number (can enter manually
also). This Vendor number is used in sub-ledger number in Financial Accounting.
When posting an invoice, system uses the reconciliation account automatically from
Vendor master record.
A vendor account code is created against Company code and Purchase Organization, so its
account is unique in all Plants under the Company code.
Pre-requisite for Vendor Partner roles
1. Vendor master record for each partner separately
2. Specified in customizing Partner roles selected
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MATERIAL MASTER
Material Master is structured for various organizational levels.
Data at CLIENT / COMPANY CODE LEVEL (table MARA)
Data Valid for the total Company. Basic data
Material No., Material group, Unit of measure, Conversion factors, Purchasing
value key, etc
Data at COMPANY CODE LEVEL
Accounting Data, Costing data if valuation is at Company code
Data at PLANT LEVEL (Table MARC)
Purchasing data, MRP Data, Scheduling data, Forecasting Data, etc.
Data at STORAGE LOCATION LEVEL
Storage bin, picking area, etc.
MATERIAL NUMBER
18 character alpha numeric key
-
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The standard system uses a BUFFER when assigning numbers to the material master
records
The amount of numbers for the buffer is 10. Using this buffer and having the material
number assigned before saving a new number, the master can be lead to a gaps in the
number assignment. However if you reset the number level of an interval back to the initial
value, R/3 system fills these gaps when you create the new materials
MATERIAL TYPE
Materials with same characteristics are grouped together in Material types- Raw Material,
Finished Goods, etc.
Represented by 4 digit alphanumeric codes
Material type is having following CONTROL functions
1. The type of number assignment (Internal or external)
2. The permitted number ranges
3. Screen layout and screen sequence
4. User specific views
5. Procurement type (Internal / external)
6. Up-dating of Quantity and Value in master records / FI
7. Account determination on goods movements
8. Price control
Material type CANNOT be changed for materials whose Purchase Order is made.
Special Material types available in std SAP
Additionals (VKHM) - requirements like effective presentation to Customs
Eg. Care labels
Advertising media (WERB) presentation for advertising. Eg. leaflets/ catalogues
Apparels (MODE)
Empties (LEER) Type of RTP generally subject to deposit of money. Can have
several components together in BOM. Eg. empty bottle/ empty crate, etc. (SD)
Full Products (VOLL) counter part of empties.
Operating supplies (HIBE) Procured externally and required for the manufacture
of other products.
Packing Materials (VERP) Transport with goods/ come with goods of FOC. It is
managed at quantity and value in Material master even though it is free of cost.
Used in HU management
Material filed selection reference
A reference control key defines which control string applies to the relevant influencing
factor
We can maintain reference key for
1. Material type
2. Plant
3. Industry sector in customizing
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C Classification
G Costing
A Work Scheduling
PURCHASING GENERAL
Centralized Purchasing
With one Purchasing Orgn
1 Purchase Orgn > responsible for a number of Company codes
Distributed Purchasing
Number of Purchase Orgn for different Plants
1 Purchase Orgn responsible for 1 Plant
Company specific
1 Purchase Orgn responsible for 1 company code
Reference Purchase Organization
Pre-requisites for reference purchase organization:
1. Both the purchase organizations (reference and normal) are to be maintained in
Organization structure
2. The reference purchase Orgn can be maintained WITH or WITHOUT Company
code and Plant
3. Assign reference purchase Orgn as Reference purchase orgn in customizing
Data in MM Purchasing
Material Master 1. Client related data 2. Plant related data 3. Storage location related data
Vendor Master 1. General data 2. Company code related data(accounting) 3. Purchasing
related data
Master records in Purchasing
1. Purchasing Info Record
2. Source List
3. Quota Management
4. Conditions
5. Vendor Evaluation
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Info update indicator WILL NOT update the info record. It will update the
information.
The updated details can be seen at Info list (ME1L/M/P)
These data will be displayed as default data while creating the purchasing
documents. It can be edited at purchasing document level.
Info record can be created
manually
automatically from Quotation / Outline agreements / Purchase orders, if info update
indicator is selected while creation
If you want to maintain conditions in Info record, you have to maintain it
MANUALLY.
Auto-updated info records will NOT BE HAVING the pricing conditions
(ONLY final price will be retained)
If 2 info record (1 with Plant and 1 without Plant) exists, WITH PLANT info
record will be updated
Info update scenarios
1. If Info record already exists
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QM Info record
Last Document
Quotation price history
Order price history
Through EXTRAS we can display
Administrative data
Source List
Taxes
Vendor Evaluation
Statistics
We can reach Buyers Negotiation sheet (for Vendor & Material) from Info record
We can have 4 different info record for a material & vendor for standard/ Consignment/
Subcontracting/ Pipeline
TEXTS
Header Texts: Header Text/ Header memo (Internal)/ Supplementary texts
Item Texts - Item Text (CAN copy from Info Record/ Material Master)
- Delivery Text
Inserting texts from material master record
3 options of linking material master record and purchase documents.
Relevant settings are to be made in each TEXT TYPE in customizing. The indicator in the
status column shows the nature of linkage.
Option 1 - The Text is copied . Indicator status in column NONE
It is then independent of the text in Material Master. Changes in the text in Material Master
have NO INFLUENCE on the text in the document.
Option 2 - The Text is displayed only. Indicator status column N
Text can not be adopted
Option 3 The Text is offered for copying. Indicator in status column X
It can be copied via Header or item
The path is Texts > Adopt text (in requisitions) Go to > Texts > Adopt text.
The changes made in material master will also be adopted in the document until such time
as you can copy the text.
The customization available for each purchasing document. PO/ PR/ Contract in following
nodes
- Define Text type for header Text
- Define copying rule for header text
- Define text type in Item text
- Define copying rule for item text
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We can copy a text from a Vendor master to any of the purchasing document.
The procedure is as follows
Text types for Purchase Organization Texts
Define Text Types for Purchasing Organization Texts
In this step, you define text IDs for the part of vendor master records that applies to specific
purchasing organizations. You can enter a text giving information on the vendor for each
text ID when you maintain master records.
Actions
1. Enter a text ID.
2. Enter the name of the text type.
3. Select the "Text relevant" indicator. The text is offered when you maintain or display
the purchasing data of a vendor master record.
To enable a vendor text to be adopted in a purchasing document, proceed as follows:
4. Choose Text for <purchasing document> -> Define text types and copying rules for
header texts.
5. Then specify for the desired text type(s) which text is to be copied from the vendor
master record.
CONDITIONS
Are stipulations agreed with vendors concerning prices, discounts, surcharges, etc..
We can create conditions in
- Quotations
- Info Records
- Outline agreements
- Purchase Orders
Conditions in PO are TIME INDEPENDENT and others are Time DEPENDENT
System will ask for VALIDITY for TIME DEPENDENT conditions.
1. Info Record
2. Quotation
3. Sch. Agreement
4. Contract
5. Purchase Order
Time dependent
Conditions
Time Independent
Conditions
YES
Depends on Doc Type
Depends on Doc Type
YES
NO
NO
Depends on Doc Type
Depends on Doc Type
NO
YES
We can specify both time dependent and Time Independent conditions at Header
level and Item level EXCEPT Info Record. The setting is at Document level
In Info record, conditions are stored at Info record level.
For Time Dependent conditions, we can create
1. Supplementary conditions
2. Validity Periods
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3. Scales
4. Upper and Lower Limits
If we are creating a new condition type, should be assigned to an access sequence to link
with Pricing Procedure
If the conditions are on header level of the document, then it is applicable for items in that
document, but if it is at item level, it is applicable for that particular item only.
Conditions in Purchase Order DEPEND on DOCUMENT TYPE.
Conditions are prepared in a PO are at the level of document type
Conditions can be created for a Vendor/ for a Plant/ for Purchasing.
Header conditions Applicable for all items as per % or Value
Item conditions applicable for specific items - % or Value
Group conditions Applicable to all items but distributed proportionately as per the
quantity/ value
CONDITION TECHNIQUE
Up to 3.1H version, Time independent conditions are referred as Document conditions and
Time dependent conditions are referred as Master conditions.
Condition Type and condition category - Example
Condition category
H- Base Value
PB00
(this must exist in all pricing procedure
except stock transfer)
FRA1
NAVS
SKTO
P101
B- Delivery Cost
N Non de-ductable input tax
E Cash Discount
G Moving average Price
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If the material is WITH material master record, the price will be displayed for
Purchase requisition from the material master, even if we are maintaining a separate
price in Info record. But the vendor will be populated from the Info record.
If the material is WITHOUT material master record, we have to maintain the price
manually during the creation of PR, if required.
While preparing RFQ, DO NOT mention/ indicate Plant so that the same RFQ can
be referred for other plants also.
VENDOR CONFIRMATIONS
Vendor confirmations can be of
Order acknowledgements
Loading or Transport confirmations
Shipping Notifications
ASN Advanced Shipping Note
If the order conformation types are customized, and it is MRP relevant, it appears in Stock
Requirement List.
We can post Goods Receipt against acknowledgement, if permitted entries are
assigned in Customization Confirmation Control
We can enter a confirmation in PO or SA
We can have an EDI arrangement with Vendor, against EDI acknowledgements are
checked for Quantity, Date and Price
Partial acknowledgement through EDI updates the PO/ SA possible
We can do dunning procedure through confirmation control key and we can fix the
mandatory days for confirmations.
Pre-requisite Conformation Control KEY
RELEASE PROCEDURE
Release procedure can be WITH & WITHOUT Classification
Release procedure WITHOUT Classification is available ONLY for PR
Class & Characteristics
Maximum 8 release codes are allowed in a Release procedure
Changeability after the start of a release procedure
Case 1 Insignificant changes NOT required a fresh release (below the value limit)
Case 2 -Significant change with % limit No fresh release, if correct the PO
Case3 Significant changes New Fresh release required
MANUFACTURER PART NUMBER
Pre-requisites
1. Settings in Customizing
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2.
3.
4.
5.
6.
7.
VENDOR EVALUATION
Main criteria
2
Manual
Semi-auto
Auto
a
Sub criteria
(At Info Record Level)
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Step 3: Define scope list: scope lists are defined for usage in generation of ranking lists for
vendors. System will consider the sequence list of main criteria mentioned for a scope list.
ie. Weightages are considered in that sequence while ranking.
Step 4: Define purchasing organization data for Vendor Evaluation
Include your purchase organization in the list, and then go to details. Mention the best score
(100 possibly) and Applicability period (the past period which should be considered for
vendor evaluation by the system). If any factory calendar is there attach here.
Step 5: Go to main criteria of your organization. Here you have to mention what are the
main criteria you are considering for your P Org from the list of total main criteria.
Ticking the manual Maintenance enables to enter the score manually for the main criteria
while maintenance of vendor evaluation for a particular vendor (if required)
Step 6: Go to Sub criteria of a main criteria. Here you divide the % of total weightage for a
criteria among sub criteria according to your choice (if it 1.1.2 then it is 25%, 25%, 50%).
Tick manual maintenance to provide option for a manual maintenance while maintaining
Vendor Evaluation.
Step 7: Weighing for your purchase organization.
Here you mention how the weightage is given to particular main criteria for a given
weighing key (for all the weighing keys created by you.)
According to this only the total weightage(say 100) is distributed among various main
criteria for particular weighing key.
Step 8: Point scores for the main criteria
Here points are allocated according to variances for automatic sub criteria. System will
give points to sub criteria according to this, during processing the data for evaluation.
System defined will be there.
Easy Access:
Mater Data should be maintained through the below path to start the vendor Evaluation
process for the particular Vendor.
Logistics/Materials Management/Purchasing/Master Data/Vendor Evaluation
1. Maintain ME61: Here we enter the Vendor code and Purchasing Organization
2. Then enter the corresponding weighing key and press enter ,you will see the
weightings allocated for main criteria
3. Now go to Edit on the screen and click the auto new revaluation. The system
calculates the scores and gives the overall score. Save the same.
4. You will have the option of changing the scores manually for criteria and sub
criteria if you have set the same while configuration. Once you have changed
manually and press enter the scores will get updated then save the same.
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Stock Vs Consumable
Stock
Required
not required
Stock account
Qty, Value&
Consumption
Adjusted
Consumable
Possible but not required
Mandatory
Consumption account
Qty & Consumption
are updated
Not applicable
Can be by manual or though automatic- through MRP run/ PM order/ Sales order
Can use account assignment U (Unknown) in PR. But to be confirmed in PO
If material master is available, system will take the price from it otherwise we have
to enter manually.
Multiple account assignment is possible in PR
BLANK No multiple account assignment
1 Distribution on Quantity basis
2 Distribution on Value basis.
Goods Receipts are NON-VALUATED for consumable goods.
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In Service Master Record, we fix the information like Service No., Service
category, Description, Basic UoM, Material group, Valuation class, etc
In contracts we are allowed to maintain header conditions for the FIRST outline
level. These are copied to all outline levels and CANNOT be changed
In case of PR/ PO, conditions are UPDATED for a SERVICE.
But for Quotation and PO, the service Master conditions are updated for a Vendor
WITH or WITHOUT PLANT
In customizing (Source determination & default values), we can set the following
indicators for the Client & purchase Organization level.
1. For CLIENT
Service condition update indicator
as default in PR
- as default in Quotations
- as default in POs
2. For PURCHASE ORGANIZATION
Set service condition update indicator Quotations
Default in POs
Maintaining Service Conditions
1. In Service Master
2. In purchasing documents
3. Updating conditions in Master record through conditions in purchasing documents.
Condition Update indicator for Purchasing document is set in
customizing
Classification: Confidential
We can transfer external SSC to R/3 system which is having same Unit of Measure.
Model Service Specifications
For PRs to purchase organization, Fixed Vendor, Contract through configuration
External Service Procurement is also can have:
1. Release procedure
2. Value limits for unplanned services
3. Vendor evaluation
4. ERS
Service specifications can be created for
1. Purchasing documents
2. SES
3. MSS
4. Maintenance Service Plan
5. WBS element / Project plan
6. Sales Order
WE CAN NOT MAINTAIN LIMITS IN RFQ/ QUOTATION/ CONTRACTS
The difference between MSS and SSC is
We can copy services from both to service orders, but if we copy from SSC, we can
not edit it, but in case of MSS we can select and edit it
Account assignment in services
Specifying the account assignment for the services at the time of their initial procurement is
optional. Account assignment category is at document item level.
-U (Unknown is accepted
- Multiple account assignment is accepted
- Distribution is also possible
Invoice verification of services (SES)
In Vendor master we have to specify, GR based IV/ ERS/ Service based IV
Global Percentage Bidding (GPB)
It is a procedure of bidding used in procurement of external services ONLY.
Pre-requisites are
1. Document type AB in RFQ
2. Calculation schema MS0002 (with condition types KR01
header discount & KZ01 Header Surcharges
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Process
1. Create RFQ with document type AB.
Maintain price per service and send to Vendors
2. Vendors will not quote any price for each service, But they will indicate a %
addition or Deletion with respect to the price shown in RFQ.
This % can be at Per Outline level or for the uppermost outline level (total)
-
OUTLINE AGREEMENTS
Its a long term purchasing agreement with a Vendor concerning the supply of materials
or the performance of services according to the pre-determined conditions.
These are valid for a certain period of time and cover a pre-defined total purchase
QUANTITY and VALUE
Outline Agreements
- 1. Contracts
a. Value (WK)
b. Quantity (MK)
c. Centrally agreed Contracts
d. Distributed Contracts
2. Scheduling Agreements
a. LA
b. LPA
c. LU
Contracts are with Release Orders and Scheduling agreements are with Delivery
schedule
Release Order is a Purchase Order reference to a Contract
CONTRACTS
NO DATES
PR > RFQ > Contracts (manual)
VALIDITY PERIOD is to be indicated in the Header
In Quantity contract, the target quantity and purchasing conditions are to be
maintained for EACH item
Item category M & W are permitted in Contracts (M- Material Unknown & WMaterial group)
Item category M Similar materials with SAME PRICE, but different material
numbers. Material numbers are to be specified in release order.
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Item Category W Material belonging to the same material group, but with
DIFFERENT PRICE.
W can be used in VALUE CONTRACTS ONLY
M & W are NOT ALLOWED in Release Orders
Account assignment U (unknown) is permitted in contracts but NOT in release
orders
Release order documentation contains the statistics for an item. It is updated
automatically and used for monitoring the contract
Single and multiple account assignments are allowed in contracts
Centrally agreed contracts For many Plants in a purchase organization. In this case DO
NOT MAINTAIN PLANT. In this case individual release orders can be issued Plant-wise
against the contract. Partner functions are also possible.
Using Plant conditions, we can specify separates prices and conditions for each receiving
Plants.
Distributed Contracts (DK) Contracts at different Plants operating on different (ERP)
systems which are accessible through ALE
SCHEDULING AGREEMENTS
Long term agreement with a vendor to supply material as per pre-defined condition.
Pre-defined PERIOD and QUANTIRY (NO VALUE)
PR > RFQ > Scheduling Agreement.
Centrally agreed S.As can be prepared.
M, W and U are not allowed in Scheduling Agreements
Details of delivery date and quantity are maintained through Delivery schedules
Schedule line can be created automatically through MRP run, but for this
1. Define Scheduling agreement as a Source of supply for the material.
2. Auto schedule line selection source list Select option 2 in MRP Column (in
Me01)
3. Auto schedule line must be allowed in MRP system
Types of Scheduling Agreements:
1. Type LA Document type - LP
Agreement + Delivery Schedule
2. Type LPA Document type LPA
a) Agreement + Delivery Schedule + Forecast Schedule + Release
documentation
b) Agreement + Delivery schedule + Forecast schedule + Release
documentation + JIT Schedule + Release documentation
3. Type LU Stock transfer scheduling agreement
FRC (forecasting) Schedule gives a medium term overview of requirements
JIT Schedule gives the requirements in near future. JIT schedule can be prepared daily/
Hourly basis.
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Creation Profile
1. Optional data from Vendor master record
2. Release creation profile is for each scheduling item
3. It is customized on a Plant specific basis
4. It determines the periodicity of SA release and aggregation of schedule line
quantities
5. Tolerance limits are in release creation profile (RCP) and set it during
customizing
Aggregation schedule Total scenario in a specific time period
Firm, Trade off & Planning Zones
1. FIRM ZONE Immediate Vendor can go ahead with manufacturing. The
Purchaser is liable for total quantity
2. TRADE OFF ZONE Near future requirements. Vendor can go ahead with
mobilization of requirements. But the liability is limited to the purchased raw
materials/ semi finished goods
3. PLANNING ZONE No liability by the Purchaser
Firm and trade off zones details are forwarded to the Vendor along with FRC and JIT
Schedules for getting more clarity of Scheduling Agreement.
The procedure is
A. At IMG level Maintain release creation profile against your Plant. Here you are going
to maintain
1. General Parameters like Creation strategy for JIT & FRC Schedules
2. Aggregation Horizon Daily or monthly aggregation in Days for both JIT & FRC
3. Creation periodicity Daily/ Weekly/ Monthly for JIT & FRC
4. Tolerance profile, etc
B. Transaction level
1) Create Scheduling Agreement ME31L. Attach the creation profile in the Scheduling
Agreement at Item > More functions > Additional data
Please see that the Material Master is having tick for JIT Schedule &
2) Maintain Delivery schedule ME 38
3) Create the release documentation ME84. Select FRC & JIT Schedule and process and
see that FRC and JIT Schedules are created
4) If you want to see the schedules, go to ME9E
SOURCE DETERMINATION
Source can be a Vendor or an Outline agreement.
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While creation of PR, system will select A as the source, if the source list selection
is opted in the material Master, otherwise, B will be selected.
For fixing a Vendor in a source list, the info record for that Vendor is TO BE
maintained.
If we have maintained a source list for a material we have to select that Vendor for
placement of PO. So check the requirement display before maintaining a Source list
for a material.
INFO RECORD is a MUST for automatic source determination at PR level.
Source determination function is available ONLY for PR
SOURCE LIST
QUOTA ARRANGEMENT
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The Quota indicates the % age of total requirement that are to be procured from each of the
various sources over a CERTAIN PERIOD OF TIME.
Validity period is mandatory for Quota arrangement
Quota can be provided for various procurement types
Quota arrangement indicator is to be fixed in Material Master and is defined in
customizing to update quota allocated quantity progressively
Quota arrangement is NOT suggested, if the quota allocated quantity>= maximum
quantity
Quota rating = (Quota allocated quantity + Quota base quantity)/ Quota
Qr = (Q-Qa +Qb)/ Q
The source with lowest quota rating represents the effective source (even ZERO)
If more than one sources having quota rating zero (or equal), the one with highest
quota is the effective source.
Quota base quantity is used for regulate the new entry of a Vendor in Quota
arrangement (Give him a higher quota base quantity on entry to quota)
Quota Splitting (ONLY through Planning Run)
If a PR is created manually is subjected to quota arrangement, the requirement
WILL NOT split.
Splitting among different sources is carried out, if a Lot size procedure for which
the splitting quota indicator has been set is assigned to the requested material in
Material master. This will be achieved through the Lot size procedure. For all lot
size procedures, quota will not split. Set at customizing. The quota splitting
indicator is set for each lot size procedure as per the requirement in Customizing.
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Splitting of Quota is through planning run ONLY and for lot sizing procedures,
which is having quota splitting
If the quota allocated quantity and quota rating have NO SIGNIFICANCE if the
quota is SPLITTING.
Lot sizes are calculated on the basis of quotas. We can view Quota arrangement
from MRP list (MD04)
Minimum splitting quantity- The residual quantity above which only quota splits.
The quantity below this quantity, system will assigns a single source
Maximum quantity Quantity that can be allocated to a source. If the allocation
reaches this quantity, system will not consider this as a source.
If the requirement crosses the maximum lot size, system proposes several lots with
maximum lot size.
The minimum and maximum lot size maintained in Quota arrangement item,
OVERRIDES the entries in the material Master record on preference and are valid
solely for the assigned source.
The minimum and maximum lot size maintained in Material Master applicable to
ALL SOURCES
The PRIORITY in Source determination
1. Quota Arrangement (First which is having priority in Quota)
2. Source List
3. Scheduling Agreement/ Contracts
4. Info record
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The quota arrangement indicator defines the quota usage combinations in the
functionalities in
1. In Purchase Orders
2. In Scheduling agreement delivery schedules
3. In Planned orders
4. In Purchase requisitions &
REPORTING
o Analysis of master data and documents
o SCOPE OF LIST parameters determine which data is for a Document (eg. BEST
for PO)
o Scope of list parameters are set in Customizing
o We can fix variants for frequently used parameters
Logistics Information System (LIS)
SAP logistics offers a range of application oriented information system with standard
interface. All LIS have same type of data retention.
Examples SIS (sales), PURCHIS (Purchasing)
OLAP
Data Warehouse
OLTP
Classification: Confidential
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Classification: Confidential
Purchase
Requisition
Purchase
Order
Goods
Receipt
Invoice
Receipt
Material
Planning
Automated
PO
Shipping
Notification
ERS
Auto PO indicator
in
V. Master
M. Master
Info record
Order ackn.
Indicator in
PO
ERS Indicator in
Vendor master
(GR based IV)
Material Master
Source List
Sch. Agreements
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Classification: Confidential
OPTIMIZED PURCHASING
MRP
User Depts.
Purchase Requisition
PURCHASE ORDER
Material
Quantity
Delivery Date
SOURCE
Vendor
PRICE
Source List
Quota
Vendor evaluation
INFO RECORD
Classification: Confidential
ORDER ACKNOWLEDGEMENTS
If vendor is not submitting the invoice/ invoice is not available, we can create
invoice within the system by ERS and we can settle the invoice
It is created against a Good receipt. Invoice and message to the vendor is created by
the system
We CAN NOT process PLANNED DELIVERY COSTS with ERS
Pre-requisites for processing ERS are
1. Selection in Vendor Master
2. Info record selection
3. GR based IV
4. Tax code of PO and Info record should be the same
5. Customizing Selection of ERS for the company code
Procedure
Create PO with the material and Vendor
Enter GR
Go to MRRL for ERS
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Classification: Confidential
Reservations
Depts. requirements
S&D Processing
Independent
Requirements
Demand Mgt.
Material Planning
Planned Order
Direct
Conversion
Purchase Requisition
Purchase Order/
Agreement
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Classification: Confidential
MRP
Procedures
MRP
Consumption based
Planning
Re-order point
Planning
Manual
Forecast based
Planning
Time based
Planning
Automatic
CBP Vs MRP
-
In CBP, Sales orders, planned independent requirements, etc are not considered
In MRP, Sales orders, planned independent requirements are direct requirements
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To avoid a situation, where more than 1 order proposal is created per requirement for a
source of supply, with max. Lot size, you can set only once Indicator
PRIORITY FUNCTION
It is fixed while creation of quota arrangement
It defines the sequence of source of supply, irrespective of quota rating.
Priority indicator overrides quota
While source determination, system starts with SMALLEST number in the priority filed.
Once the priority sources are completed, then it will work as normal quota arrangement for
non-priority sources
Material Requirement Planning (MRP)
MRP Types
-
It is the key which controls the MRP procedure to be used for planning run
It controls the planning parameters must/ can be entered when maintaining the MRP
data in Material Master.
MRP types are AP External Planning
PD MRP/ ND No Planning
VV forecast based
VB Manual re-order point
RP auto replenishment
MPS Master production scheduling/ Time based planning, etc
Classification: Confidential
MRP Profile A key in which we can store MRP parameters that do not depend on the
material master record or defaulting the frequently used MRP data to avoid data entry.
PLANNING RUN
MRP run types
1. Planning run for 1 Plant On line (Total Planning)
2. Planning run for 1 Plant Background (Total planning)
3. Planning run for 1 material On line (Single item planning)
-
Planning sequence
Low level code
- Low level code The lowest level at which the material appears in a BOM
- A Material low level code is always greater than the low level code of all its
predecessors in all BOM
- Low level code controls the sequence of planning run (0,1,2..)
- We can DISPLAY the low level code in the material master from MRP1(Any view)
view by choosing the icon Info on material
Extent of planning run
Planning types
1. Planning all materials in a plant
Processing key for planning run Planning of planning file NEUPL
This case is used when we are running the planning run FIRST time
2. Material which undergoes changes (relevant to planning run)
Processing key for planning run Net change planning NETCH
Or Net change planning in Planning Horizon
This is the case for subsequent runs (after NEUPL/ NETPL)
-
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Classification: Confidential
The planning horizon should at least span the time period in which sales orders are
received and contain delivery and total lead time of the material.
Once the planning run is completed, the respective entry in Planning file resets
Planning File
It controls the planning run and scope
- Contains all materials relevant to MRP for each plant for the planning run
- Planning file entries includes the information like
1. Low level coding
2. NETCH or NEUPL
3. Whether the BOM is re-exploded or deleted
- Respective entries in planning file are made automatically by the business
application of the system
- When material master is created with MRP data, and a valid MRP type, the material
is then automatically included in the Planning file
- System checks for the following in Planning file
1. The scope of Planning NETCH/ NETPL
2. Calculate the low level codes
3. BOM re-explosion requirement
4. Planning mode Deletion of existing proposals (Not firmed proposals)
5. MRP date
6. Is the material is a Master Scheduled Item
Net change planning ONLY plans that material that have been subject to a change, relevant
to MRP lead to a planning file entry being created specific to the Plant & Material
Carry out planning run on regular intervals and check the requirement in planning horizon
Creation Indicator controls the creation of PR/ PO/ Scheduled lines and MRP Lists
CONTROL PARAMETRS OF MRP
MRP run for
Material
MRP area
Plant
Parameters are
1. Processing key NETCH(N) or
- NETPL (P) or
- NEUPL (G)
2. Creation Indicator for PR
1. Purchase Requisition
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Classification: Confidential
3.
4.
5.
6.
7.
2. PR in opening period
3. Planned Orders
Delivery Schedules 1. No Scheduled lines
2. Scheduled line in opening period
3. Schedule line
Create MRP List 1. MRP List
2. Depending on exemption message
3. No MRP List
Planning Mode 1. Normal
2. Re-explode BOM & routing
3. Delete & re-create planning data
Scheduling 1. Basic dates will be determined for Planned Orders
2. Lead time scheduling and capacity planning
Planning Date -
We can simulate / display the planning run before actual planning by selecting the check
box
MRP area
If we are not specifying the MRP area, system will take PLANT as MRP area as default.
Preparation of MRP run with MRP areas (in CUSTOMIZING)
a. Convert Planning file entries for MRP areas
b. Activate MRP MRP for MRP areas
c. Create MRP areas Number (5 digit), Type & receiving storage location
Assign storage location or subcontractors to the MRP areas
Type 01 for Plant, Type 02 for Storage Location, Type 03 for Subcontractor
d. Assign MRP areas to Material (in Material Master)
e. Check storage location. The same storage location for the MRP area is assigned in
Material master or not.
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Classification: Confidential
We can assign a material to ONE or MORE MRP areas by creating a segment for each
MRP area.
PROCESS FLOW during PLANNING RUN
System CHECKS PLANNING FILE ENTRIES Is the material is relevant to
MRP or not
2.
System carries out NET REQUIREMENT CALCULATION Whether the
requirement is covered by available stock or not. If NOT, system generates
procurement proposal.
Net requirement check at PLANT level, after the planning file check. This is
applicable for Re-order point planning and MRP
The system process it like
a. Check the Plant Stock
b. Consider GRs and GIs (Reservations also)
c. Calculate the quantity to be procured
Safety stock is IGNORED, while calculating the shortage quantity
1.
3.
System CARRIES OUT LOT SIZE CALCULATION As per the lot size
procedure set in Material Master.
1. System compares the shortage quantity and lot size
2. Calculates the procurement quantity
4.
System CARRIES OUT SCHEDULING Calculates the start and finish time of
procurement proposal
For scheduling, the pre-requisites are Processing time, planned delivery time and
GR processing time.
In FORECAST BASED Planning BACKWARD Scheduling
In RE ORDER POINT PLANNING FORWARD Scheduling
5.
6.
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Classification: Confidential
7.
If we do not save any MRP list, the procurement proposals generated by the system
are stored in database. Then we can process it through Stock/ requirement list,
instead of MRP list
Evaluations of Planning run results in CBP are MRP List & S/R List.
MRP List can be a S/R list at the time of last planning run
MRP Lists are stored in the system till it deleted manually OR replaced by a new
list of next planning run
S/R List is not saved in a fixed state in the system (but subject to change). It is
available in WORKING MEMORY ONLY
We CANNOT set a processing indicator for a S/R List
Hierarchy
MRP Group is an organizational object with which we can assign special planning
control parameters to a group of material
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Classification: Confidential
MRP area
Area where the MRP run is planned.
We can assign different MRP parameters to a material for each MRP area.
We can select subcontractor area also as MRP area
Requirements is a MUST to run MRP (like reservation)
MRP results are monitored with the help of exemption messages.
System can display maximum 2 exemption messages per MRP element
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Classification: Confidential
Safety Stock
Re-order point
Delivery Time
Time
Creation of PR
PO Date
Delivery date
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GR processing
Time
Classification: Confidential
Time
11 INVENTORY MANAGEMENT
MOVEMENT TYPE
-
Negative stocks are allowed for special stocks if you have activated negative stock
in the Valuation area and for the special stock concerned in that Plant and storage
location
Negative stock can be fixed in the material master for a material( In Plant/ storage
view1)
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Classification: Confidential
If it is activated in customizing for a stock type and Plant, then there is no need of
activating negative stock for each and every material in the material master.
Negative stocks allowed on following special stocks
Vendor consignment (K), Stock of material from Vendor (O), Consignment stock at
Customer (W), Sakes Order stock (E), Project Stock (Q), Packaging at Customer
(V), RTP of Vendor
We can manage Negative stock for materials with MAP and special stocks
Ensure that you DONOT have negative stocks on the BALANCE SHEET KEY
DATE.
Blocked stock also can be negative
Settings of negative stock possible for
1. Valuation area
2. Plant & special stock types
3. Storage location
4. Material master level
STOCKS
During goods receipt, a material and accounting documents are generated and it updates
the Purchase order history
After GR is posted against a particular movement type, the Quantity, Material,
Movement type and Organizational level CAN NOT BE CHNAGED. If any errors,
reverse or cancel the document
We can post withdrawals & Consumption ONLY from UNRESTRICTED Stock.
If we want to withdraw material from QI/ blocked, we have to first transfer post it to
Unrestricted and then withdraw it.
Plant stock & Storage location stocks views will appear automatically in material
master after booking material movements.
Stock Transfer involves physical movement of goods but transfer posting need not be
In transfer posting ONLY Material document is generated (NO Accounting
document)
Movement type is the key control factor in both the cases.
Quality
Inspection
322
350
349
Blocked
321
343
UN Restricted
344
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Classification: Confidential
A document is the proof of that transaction involving stock changes has taken place.
Documents are stored in the system
A material document consists of Header (Posting date, created by, etc..) and item
level details like quantity, material, storage location, etc
Accounting document consists of Header (General data like posting date, posting
period, currency, etc.) and item level details like G/L account number, amount, etc.
Material document and accounting documents are INDEPENDENT documents
We can identify the material document by the material document number and
document year. The Accounting documents are identified by the accounting
document number, company code and a Fiscal year.
In Accounting document, the number ranges are assigned to a Document type.
But for material document, the number ranges are assigned to a
TRANSACTION / EVENT TYPE
Goods Movement
Transaction/Even type
Document type
GR for PO
WE
WE or WN
GR for others
WF
WE
GI/ TP/ Others
WA
WA
GI for deliveries
WL
WL
We cannot change a document once it is posted. Some additional information like
texts can be added. So we use reversal for correction
Stock Overview
For each organizational level, Client/ Co code/ Plant/ Storage location / Batch/
Special stocks
Its a STATIC display of stocks. Planned data are not available
VALUATION CLASS
It is the grouping of materials to determine which stock accounts are to be updated
upon goods movements
For automatic account determination, R/3 system works with Valuation Class.
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Classification: Confidential
STOCK
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Classification: Confidential
When GR blocked stock is released (MBSF), then it is valuated automatically. It will have
the same effects of an ordinary GR.
While accepting the GR blocked stock to Plant unrestricted stock(105), you
can refer the material document of earlier GR or Purchase Order
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Classification: Confidential
RETURN DELIVERY
Return delivery can be created with reference to a material document or Purchase Order
Receipt by
Return
Substitute
Delivery by
Delivery
101
122
123
103
124
125
105
122
123
If you receive a substitute delivery, after you have returned the goods to a Vendor, it is
ADVISABLE to reference the associated return delivery by using a reverse posting when
you post a new receipt
122- Return delivery from Warehouse
It results into 1. Material document created
2. Stock accounts updated
3. Purchase Order update
124 Return delivery from GR Blocked stock
It results ONLY in creation of a material document as a proof of return
Return delivery in GR based Invoice verification
Uses the material document to reverse
If invoices are settled and then you are returning, please ensure that
Invoices should be cancelled
In customizing, for each MOVEMENT TYPE, you can specify Reversal and return
delivery movement type and transactions in case of GR based IV
Difference between Reversal & Return delivery
Reason for movement is optional in the case of reversal, but mandatory in return
delivery.
Return delivery slip is not required for reversal but mandatory for return delivery.
Both operates on different movement types.
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Classification: Confidential
We can configure the system in such a way that system creates PO in background
during the receipt of Goods which is not having any PO. We can do the invoice
verification afterwards.
In Customizing for organizational structure, the plant must be assigned a
purchasing organization in the step Standard purchasing organization - assign
plant so that the system can determine the purchasing info records.
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Classification: Confidential
Automatic POs are allowed only for movement type 101 & 161 in standard system.
The customization for these movement types are to be there for automatic PO
creation
System valuates the GR with the price defined in purchasing info record.
MIGO transaction is supporting automatic PO. It is available in MB01
In Vendor Master the purchase group default data for material to be maintained
Automatic PO is only possible for valuated goods
Pre-requisites for automatic PO are;
1. Selection in Material Master
2. Selection in Vendor master
3. Info record should be available
4. Valuated good receipt
5. Automatic PO selection for Plant & Movement types (101& 161)
If a PO is generated in the background for the return item (movement type 161).
This PO is required if you want to carry out invoice verification for the credit
memos, issued by the Vendor for this return
If SLED is active, we have to enter the expiration date or production date during GR
At the time of GR, system checks the SLED and issues warning messages as per the
setting
After GR is posted, the SLED data will be stored in material document
Latest acceptable GR date can be entered in PO, so that system can check the date
during GR
Early good receipts System can issue warning message on early GRs depending on
customizing. And can post GR to GR blocked stock, if required.
If NO Unit of measure indicated in material master, the system uses the UoM
1. Order unit for goods receipt with respect to PO
2. Production unit fro GR for Order
3. Units of issue for other movements and reservations
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Classification: Confidential
Availability check prevents the book inventory balance of various physical stocks
from becoming NEGATIVE
Availability checking can be done at Plant/ Storage Location / Special stock level
for the month or even previous month
Checking by movement type
System checks for the MOVABLE QUANTITY
In goods issue screen select an item, go to More functions > Movable quantity
Activation in Customizing for Plant & Movement types are required for
1. Automatic storage location creation
2. Automatic PO at GR
3. SELD checking
Missing Parts Check
GR Forecast
Number of anticipated deliveries for Planning purpose.
Inbound deliveries against notifications are NOT taken in to consideration because this
would have a detrimental influence on system performances
RESRVATION
Request to warehouse to have materials ready for issue at a later date for a special purpose.
It ensures the availability of material when it needed. It also can be used to plan inward
goods movements.
We can create a reservation ONLY for ONE purpose. Ie. ONE MOVEMENT TYPE
or ONE ACCOUNT ASSIGNMENT OBJECT
Reservation can be at Plant/ storage location/ Batch LEVEL
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Classification: Confidential
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Classification: Confidential
30 days
Delete reservation
Requirement of reservation
Baseline date
The management program for reservations can both re-organize the reservation file
and make mass changes to reservations
The management program ONLY includes reservations that have been manually
created.
Calculation of deletion date of OLD or completed reservations- Predefined No of
days. SAP recommends 30 DAYS from baseline date
Calculating movement allowed period Baseline date + Predefined days SAP
recommends 10 Days
Issue against reservation with planned item (Cost Centre) reduces the Warehouse
stock
Issue against reservation WITHOUT planned item (GI) are done by taking them to
unrestricted stock and then issue.
In case of reservation in Transfer posting, the sending plant will reserve the
item and receiving plant will reserve the material in Receipt reservation.
After entering the transfer posting, the account will be cleared.
MB21/ 22/ 23 Create/ change/ display reservation
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Classification: Confidential
MB 25 Reservation List
Reservations that have been deleted/ reversed CAN NOT be DEACTIVATED
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Classification: Confidential
GOODS ISSUE
TO
FROM
Ware House
Consignment
Pipe Line
GOODS ISSUE
ISSUE
GOODS
To Cost Center
To Asset
To Sales
To Order
To Sampling
To scrapping
Sampling Materials are treated as scrapped. But the value of sampling material
posted from the material stock account to the Quality Inspection stock account.
But while scrapping material, the material will be posted to Scrap account and it
debits to the cost center.
Issue to sampling and scrapping are different.
We can change the movement type while goods issue.
Goods can be issued to reservation and BOM
While goods issue, we can have collective entry with different account assignment
also.
System WILL NOT update the consumption statistics in Material Master, if you
post goods movements using special stock types Sales Order Stock and Project
Stock
We can set final issue indicator while issuing against a reservation
Stock determination is a function that can be used on a cross-application basis.
We CAN issue goods from Quality inspection and Blocked stock ONLY for
SCRAPPING or SAMPLING
Reversing a planned goods issue
Can be reversed with reference to a Material Document OR to a reservation
A Material document (Reversal) will be created
An accounting document will be created
Stock will be updated (increased)
Consumption will be reduced
While issuing a material for scrapping,
- Relevant stock reduced
- Value posted from stock account to scrap account
- Price is taken from material master
o Movement type
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Consumption for
Classification: Confidential
201
221
231
241
251
261
281
291
Cost center
Project
Sales Order
Assets
Sales
Production order
Network
All account assignments
BACK FLUSH
Its a type of goods issue
This type of withdrawal means that the components are already available at the production
sites (can be a production storage location). They are physically consumed during
production processes. However the quantity consumed is NOT reported until it is known
how much has been actually consumed, that is not available till production order
confirmation. For these components you need NOT to enter a goods movement in
Inventory management system. While confirming the production order, system
automatically creates a goods issue and remove from the stock
Setting at material master.
Example Charging of reactor with various materials
We can have GR/GI slip number in addition to the Material and accounting
document numbers
It is a statutory requirement for some countries like Italy
It can be assigned Internally/ externally by each Plant or Storage Location or
Movement type
Options 1) Include the filed for the GR/GI slip number in the SAP script form
2) Call up form MB-XAB using transaction MBXA
Then customize it Print report SAPLMBXA in print control
Serial numbers should be active for the Plant
In stock transfer (Plant to Plant) of material with serial number is only possible if
the same profile is assigned to the material in both the Plants
Classification: Confidential
To PREVENT more than 1 goods movement being posted at a time for the same
material and there by preventing inconsistencies between the stock quantity and
Value
It is set at CLIENT LEVEL
There are 2 types :
1. Exclusive Material Block
Plant data and accounting data will be locked SIMULTANEOUSLY up to
the end of the goods movement posting.
The disadvantage of this is Long locking period
2. Late Material Block
a) The materials are no longer blocked exclusively, but ONLY at the
TIME of actual data SAVED
b) The material is blocked exclusively at the latest time possible
The advantage is several users can work simultaneously
The disadvantage is System will read material master record several times
and in case of outward movements, lock entries of other users in ATP
server. It will leads to reduction in performance.
It is available in Customizing Material Management > General settings >
Material Block
In our system it is selected for Lock exclusively Waiting system 10 seconds
STOCK DETERMINATION
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Classification: Confidential
Stock determination can be used for UR stock/ Vendor consignment/ Pipeline stock/
Sales order stock/ Project stock
Scenarios
1. The back flushing of material in repetitive manufacturing or a production
order should be carried out for a companys own stock first and then vendor
consignment stock (Most reasonable vendor first)
2. Material from preferred vendor first. If more vendors, use split valuation for
price and quantity.
3. First issue from central buffer stock and then from storage location for
staging material
4. If stock is not sufficient, go to pipeline
Pre-requisite settings for Stock Determination
1. Define a cross-application strategy for stock determination according to which
stock should be reduced in Inventory management. It is at PLANT level based on
stock determination group and stock determination Rule
2. Assign SD group to material in Material Master record (Plant/Storage location 2
view)
3. Assign SD rule to the business transaction/ event (Movement type)
SD Types
1. Auto in back ground
2. Online during SD process
SD Strategy- It depends on
1. Plant
2. SD group
3. SD rule
Define SD Strategy
1. which stocks can be used for the transaction/ event type (UR/K/P/E/Q)
2. From which stocks are to be withdrawn
3. Processing method (Background/ online)
4. Priorities (Batches, etc)
5. Valuation type/ Split valuation
How to use SD
1. While transaction (GI/ TP), put a * in storage location field
2. Choose to continue If SD is activated, the system displays a dialog box indicating
the stocks it has been determined for this withdrawal as per your customizing
settings
3. Select/ change the proposal as required
4. Post the document
NOTE MIGO is NOT supporting Stock Determination functionality
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Classification: Confidential
Returns to Vendor
Movement type
102
122
124
161
Functionality
Reversal of GR due to any clerical mistake
Returns to Vendor due to any reason like damage
Returns to Vendor from GR blocked stock
Returns to vendor For the exchange of another material
STOCK MOVEMENTS-TRANSFERS
Stock Transfer Vs Transfer Posting
Stock Transfer involves physical movement of goods but transfer posting need not be
In transfer posting ONLY Material document is generated (NO Accounting
document)
Movement type is the key control factor in both the cases.
Stock transfer can be WITH or WITHOUT Purchase Order (With & Without SD and
between Company codes also)
Transfer posting can be between locations, stock types and even material to material
If it is 1 step, the movement type is 311 and if it is 2 step the movement types are
313 & 315
It is used for transferring the stock within 1 Plant, the transfer is NOT
VALUATED and there will not be any accounting document
2. Plant to Plant
It also can be in 1 step or 2 step procedure.
a) 1 Step
1 step is being used where the Plants are located nearby and there will not be much
time to transfer the stock. In other wards the stocks can be seen in the system
immediately (no stock-in-transit)
The movement type is 301.
Goods issue from sending Plant and Good receipt on receiving Plants will happen
simultaneously. Both the stocks will be in Un-restricted use.
b) 2 Step
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Classification: Confidential
When the Plants are distant and there will be a time gap for transferring the stock.
Stock-in Transit data is available in the system
The movement types are 303 & 305.
Goods Issue in sending Plant
Goods receipt at receiving plants are to be carried out
Can monitor the stocks in stock-in-transit
3. Material to Material
It is possible ONLY if both the materials are managed in SAME UNIT OF
MEASURE.
This functionality is used for transferring the material when its characteristics
changes in due course of time and it resembles with an existing material.
It is mostly used in Pharma & Chemicals
STOCK TRANFERS
We can move the stock between Plants in following scenarios :
1. 1 Step
2. 2 Step
3. Through a stock transport order (2 step)
4. Stock transfer with Delivery
5. Stock Transfer with delivery & billing
1 & 2. 1step and 2 step transfers
Movement type 301 for 1 step and 303 & 305 for 2 step.
Material price for TRANSACTION will be calculated at SENDING PLANTs
PRICE
ACCOUNTING document is generated at 1st step itself, in 2 step procedure
and there WILL NOT be any accounting document in 2nd step
Material is booked in receiving plant as STOCK in TRANSFER if we check the
stock overview after 1st step.
Note: If any damage occurred for a material while it is in stock-in-transit :
2 ways to treat it
1. Reverse the goods issue from the sending plant and post the goods to scrapping
2. Make a goods receipt in receiving plant and then issue it to scrapping
3. STOCK TRANSPORT ORDER
Stock transport order document type UB and item category-U in STO
Movement types are 351 & 101
After creating PO, the material quantity in stock overview will show as Open
Order quantity in receiving Plant and there will not be any change for the stock in
sending plant.
After posting stock transfer,
1. Material Price will be as per the sending plants price
2. Quantity will reduce from sending Plant
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Classification: Confidential
NOTE : To carryout stock transfer from Plant to Plant for a material that is subject
to SPLIT VALUATION, you HAVE TO USE 1STEP or STO
SPECIAL STOCKS
Special stocks that are managed separately becoz they are not belonging to your company.
The special stocks and special procurement types are of 2 types
1. Company owned special stocks
2. Externally owned special stocks.
1. Company owned special stocks
The special stocks that are owned by the Company stored with Vendor or customer.
1. Stock material provided to Vendor/ subcontractor
2. Consignment stock at Customer
3. Returnable packaging at Customer
These Materials are managed at PLANT LEVEL. NOT at Storage location level. Only 2
types of stocks are possible. Unrestricted / Quality Inspection
2. Externally owned special stocks
Stocks owned by Vendor/ Customer and stocked at your place.
1. Vendor Consignment
2. RTP (returnable Transport Packaging
3. Sales Order Stock
4. Project Stock
These materials are managed at STORAGE LOCATION LEVEL
All the 3 stock types, UR/ Blocked/ QI are allowed
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Classification: Confidential
Consignment (K)
Sub Contracting (L)
Stock Transfer using Stock Transport Order (U)
Third Party Processing (S)
RTP (R)
Pipeline Handling (P)
CONSIGNMENT PROCESS
When buying goods as a Consignment, the ordered goods still belonging to Vendor, even
after delivery. The goods become your property ONLY after they are consumed. The
quantity consumed are periodically settled.
The Ownership of the material is with Vendor but storing at clients premises
The stocks are NOT VALUATED, but available for MRP
The ownership of the material transfers to the client ONLY after issuing/
transferring it from the consignment stock
Consignment liabilities are settled periodically (thru MRKO) based on the
consumption statement by the vendor
The prices of consignment stocks are defined in Info record and maintained
periodically
We can use the conditions in Purchasing
CAN maintain ANY unit of measure with proper definition of conversion factor
in material master
Physical Inventory of Consignment stock is possible
Consignment stocks are managed at STORAGE LOCATION level
There will NOT be ANY VALUE in consignment purchase orders
In PO, No Price, No conditions, No Invoice receipt requirement but GR
requirement
Stock movements are possible.
Consignment stocks can be displayed by Tcode MB54
We can issue the consignment material from Consignment stock using movement
type 201+K
Item category K is used for consignments
We can post GRs for consignment WITH or WITHOUT reference of a PO. But
the consignment prices are to be maintained before GR
Consignment stocks can be managed at Unrestricted/ QI/ blocked and we can do
the transfer posting between them.
But we can withdraw the consignment from UNRESTRICTED ONLY
Goods Issue from consignment unrestricted stock results in a liability to the
consignment vendor
Page 78 of 160
Classification: Confidential
We can enter the invoice for consignment WITHOUT reference to a PO. Debits
are posted to the Liabilities from consignment stores G/L account to which the
credits were posted upon Goods issue from consignment G/L account
Consignment info record- The info record of consignment with different Plants
(different prices at each plant) is having a SINGLE INFO RECORD number
You order an end product from a vendor and specify in the PO with components,
you will send to vendor to manufacture the end product
Issue of components to the vendor and good receipt of finished product with
consumption detail of components
Vendor invoice is posted against the purchase order
Page 79 of 160
Classification: Confidential
SUBCONTRACTING SCENARIO
Order - SF Material
Component - Raw Material
A. At Goods Receipt
1. Stock account of SF Product - Debited @ (Order price + Valuation price of SF product)
2. Cost of Goods Manufactured - Credited @ (Order price + Valuation price of SF product)
3. Stock account of Raw Material - Credited @ Valuation price of Raw material
4. Consumption Account - Debited @ Valuation Price of Raw Material
5. GR/ IR Clearing Account - Credited @ Order Price
6. External Labor Account - Debited @ Order price
B. At Invoice Receipt
1) If there is NO deviation Price in Vendor invoice
Invoice Value = Order price
1. GR/ IR Clearing Account - Debited @ Order Price
2. Vendor account - Credited @ Invoice Price (Order price)
2) Invoice Value = Order price + deviation price from PO
1. Stock account of SF Product - Debited @ deviation amount in invoice
2. Cost of Goods Manufactured - Credited @ deviation amount in invoice
3. GR/ IR Clearing Account - Debited @ Order Price
4. External Labor Account - Debited @ deviation amount in invoice
5. Vendor account - Credited @ Invoice Price (Order price + deviation amount from PO)
Page 80 of 160
Classification: Confidential
i.
Stock account fro Finished goods ii. Stock account of raw material
iii. GR/ IR clearing account
iv.
Vendor account
v.
Cost of goods manufactured
vi.
Consumption account (for components)
vii.
External labor account
We can enter the material that is to be produced as a subcontract item in the
scheduling agreement
By the issue of components (thru transfer posting), the stock of components WILL
NOT reduce from your stock. The stock will be produced at the time of receipt of
Goods receipt of finished product
CS01 is used for creating BOM/ components
1. The order of the end product in PO. The components are attached to the item n PO
2. In Inventory management, components are posted to the stock of material provided to
the vendor
3. Vendor supplies the end product with consumption details of components and it will
posted to the system while GR
4. Any balance (+ or -) of components are done at subsequent adjustment transaction
5. Vendor submit his invoice for the services rendered and invoice will be posted in MIRO
Process of Subcontracting Process
1. Creation of Info Record ME11. Service with price of service
2. Creation of Purchase Order ME21N Creation of PO with Item category L.
Attach components to the item in PO
3. Transfer Posting MB1B Transfer the components from your store to the
subcontractor using the movement type 541
4. Goods Receipt MIGO receive the end product (and components) to Stock by
using the movement type 101 for main material and 543 for components
5. Subsequent Settlement MB04 Subsequent adjustment of components, if any
(other than the entry happened during GR). Movement type 544 for components
and 545 for by product
6. Invoice verification MIRO Normal process for invoice verification of vendor
services
The Master record of end product and components are to be made available before the
creation of PO
The components with subcontractor / Subcontractor stock is your stock. It is available
for MRP and it is valuated, it is managed at PLANT LEVEL.
BLOCKED STOCKS are not allowed for subcontracting (Components). But we can
transfer the stocks between these 2 (UR&QI) stocks
Purchase requisition and PO for Subcontracting
Item Category L
No need of entering the date required for components, system will calculate it
automatically as per the planned delivery time fixed in the master.
Page 81 of 160
Classification: Confidential
If you dont want to change the quantities of components, you can fix it by selecting
the Fix check box. The check box is available at components overview (While you
are attaching the components-in PO &PR)
We can check the availability of components in PR at Environment > Availability
or Edit > availability check in PO
NOTE
If you change the quantity of material, the system will change the quantity of
component automatically as per the proportion fixed in the component
overview, if the item is NOT FIXED
If you change the delivery date, the system only re-calculates the date of
requirement,
the
components
are
NOT
AUTOMATICALLY
REDETERMINED in the BOM. In this case we have to do a new BOM
explosion
The stock position of subcontracting stock at MBLB
It shows the current stock status, Planned issues & Planned receipts
Providing components for existing Purchase Orders
There are 3 ways for providing it
1. From the Subcontracting stock monitoring for Vendor List as a Goods Issue via
Inventory management
a) Choose Menu- PO > Reporting > SC stocks per vendor. (T Code ME2O)
The list of components that belong to this PO will be displayed
b) Select the component you wish to provide to this Vendor and Choose Edit > Post
goods Issue. A dialog box appears, in which you can enter the data required to
post the goods issue
c) Choose to continue.
The system posts the Goods Issue in background and give the message and you
can cross-check the material via MBLB, select the material and go to
Environment > Material movements and see the material document posted
against the above step (movement type selected is 541)
2. Issue the material from subcontracting stock as a delivery vis shipping (through SD)
3. From Inventory Management Menu
Create a transfer posting through Transaction code MB1B with respect to a PO
(Subcontracting PO). Here also the movement type is 541
Note Maximum of 4 Purchase orders can be selected for referring in Transfer
posting
Subcontracting in Inventory Management (Facilities)
1. Provision of components
2. Goods receipt of final product with consumption details of components. We can
adjust the components at Goods receipt
3. Subsequent adjustment of components
4. Allowed transfer postings
a) Plant to Plant 1step (301)
b) Material to Material (309)
c) Between Unrestricted and QI ( 321 & 322)
Page 82 of 160
Classification: Confidential
Provision of components
Posting from Unrestricted stock Can be with respect to a PO or Without PO
The components can be delivered by another vendor
Issue PO to a Vendor for supplying the components, the delivery address
should be the address of subcontracting vendor. Enter the check box provision
at PO. When you are getting the information that the Vendor is supplied the
components to your Subcontracting vendor. Make a Goods receipt
(STATISTICAL GOODS RECEIPT) in the system so that the stock
position will be updated
The Goods receipt for a Subcontracting Order is VALUATE the material at
Subcontracting Price PLUS the value of the components consumed
Subsequent adjustment
In this transaction the consumption account is already posted is available / displayed
as a second line for each item
Use + or - sign to adjust the components. The movement type is 544.
Subsequent adjustment is possible ONLY for subcontracting orders (L)
Receipt of a BY PRODUCT generated during subcontracting
The by products are entered in the subcontracting Purchase Order as components
with NEGATIVE quantity
While receiving the good at GR, system automatically posts the receipt of
byproducts
1. In the material document you can identify the by product by the
movement type 545
2. By products are posted to the Stock of material provided to the Vendor
Due to the receipt of byproduct, the value of end product will be REDUCED.
Page 83 of 160
Classification: Confidential
PLANT to PLANT
1 Step
ORDER
TYPE
Area - MM-PUR
MOVEMENT TYPE 301 (Transfer
Posting)
Area -MM-IM
DELIVERY
TYPE
Area - SD
BILLING
TYPE
Area - SD
DOCUMENT TYPE
Area - MM-IV
PRICE
Valuation Price
PLANNING Via
Reservation
2 Step
With Billing
UB
UB
UB
643 & 101
645 for 1 step
NL
NLCC
IV
STOCK after GI
DELIVERY COSTS
RE
Valuation Price Valuation Price Valuation Price Pricing in SD & MM
Purchase Order Purchase Order Purchase Order
Stock in
Stock-in-Transit
Transfer
Stock-in-Transit Stock-in-Transit Company code
Possible
Possible
Possible
Page 84 of 160
Classification: Confidential
Classification: Confidential
b.
Post delivery in sending Plant (Movement type 643)
c.
Creation of billing document in sending plant
d.
Post GR at receiving Plant
e.
Post invoice at receiving Plant
GENERAL INFORMATIONS ON STO
Pre-requisites for Goods Issue in Shipping
b. In customizing in Purchasing, a delivery type (NL for STO with delivery and
NLCC for delivery & billing) must be assigned to the PURCHASING
DOCUMENT TYPE (UB)
c. Customer number for receiving plant to be created and that MUST be maintained in
customizing in STO
d. In SD customizing, shipping point determination MUST be maintained
e. In material master, shipping data MUST be maintained
Transaction
Goods Issue
P1
Billing
P2
Goods Receipt
P2
Invoice verify.
Page 86 of 160
Value
Account
Remarks
100(-) - Stock Account
(at price of P1)
100(+) Change inventory stocks (at price of P1)
120(-) Sales revenue
(Price Inter Co billing)
120(+) Customer clearing (Price Inter Co billing)
110(-) GR/IR clearing
( P2 -STO Price)
110(+) Stock account
( P2 -STO Price)
120(-) - Vendor account
(Billing Price)
110(+) GR/IR clearing
(STO Price)
10(+) PDA or Stock A/c
(Difference)
Classification: Confidential
Company
Order
Pur. Order
Billing
Invoice
Customer
Vendor
Material
Classification: Confidential
By creating a Sales order for Third party, the resulting activities in Purchasing are
1. A Purchase Requisition will be created with one or more delivery schedule
2. Purchase Requisition numbers are updated in the sales order (Item details)
3. Item is scheduled automatically after considering the delivery time and
purchasing processing time from material master
Page 88 of 160
Classification: Confidential
The special stock data is defined for EVERY vendor at storage location level. It is
created automatically 1st receipt is posted to RTP stock.
This RTP stock can not be maintained manually, but updated automatically upon
goods movements.
RTP is an UNRESTRICTED STOCK ALWAYS
Allows a Negative stock
We CAN NOT transfer RTP stock to your own stock
At Goods receipt, the movement type for RTP 501+M is selected automatically by
the system. For returns, 502+M. Can use Goods Issue Others for returning to
Vendor with 502+M
If we want to transfer these RTP material between storage locations, system selects
the movement type 311+M
RTP stocks are available in stock displays MMBE / MB53
Page 89 of 160
Classification: Confidential
PROJECT STOCK
The stocks stored for a Project till the completion of the project
It can be valuated / non valuated
It is allocated to a WBS element (Work Breakdown Structure)
Components from this stock can be issued for a WBS element
The stock is available for MRP
Managed with a special stock Indicator Q
It can be transferred to own stock using the movement type 411 +Q
Physical Inventory is carried out for Company own stock and special stocks
Carried out at storage location level
A separate PI document is created for each storage location, even if the stock at that
storage location is ZERO
Physical Inventory is connected to Logistics Information system
Page 90 of 160
Classification: Confidential
ii.
iii.
Preparation
Create a physical inventory document, print and distribute it
Block the materials for postings
Physical Inventory Counting
Stocks are counted and count results are entered in the count list by using enter PI
count transaction
Physical Inventory Check
List out the quantity difference with respect to the quantity in the book
If required, re-counting can be initiated
If the differences are acceptable, we can post and stocks are corrected accordingly
Physical Inventory number (PI No) Number for a group of Physical inventory
documents
We can assign PI No to a PI document for extra selection criteria for PI reports like
PI doc for Storage locations/ Vendor/ Customer, etc.
If the Physical Inventory document is created immediately before the count, block
the relevant materials while creation of Document itself
If the PI document is NOT created immediately before the count, block relevant
material later by CHNAGING the PI document at that time.
Blocking will automatically will be CANCELLED when you post the counting
results for the PI document
Posting of physical Inventory difference WILL create a MATERIAL
DOCUMENT and ACCOUNTING DOCUMENT
PI documents can be single document or sessions
In customizing we have to specify whether the FREEZING of book inventory
balances in storage locations are allowed or not.
From easy menu, you can freeze the movements in the document itself.
If you have initiated recount for an item, then we CAN NOT change the count
afterwards.
Recounted items are deactivated in the original document and no longer processed
by entire document.
In Customizing we can set the TOLERENCE LIMT for Physical Inventory
differences
1. Maximum amount per Physical Inventory DOCUMENT
Page 91 of 160
Classification: Confidential
Physical Inventory of a CONSIGNMENT STOCK In Consignment also, by posting a Physical Inventory difference, the material
master record price will not change.
Since the material is not managed by VALUE, from the accounting point of view,
there is No Posting. But still accounting document WILL be created
Case1 If the counted quantity < actual book stock The system assumes that the
difference was withdrawn from the stock.
While posting the difference, account movements are similar to that of a Transfer
posting from consignment to Own UR stock. But he amount will be posted to
Expenditure from Inventory differences.
Case2 - If the counted quantity > actual book stock The system assumes that more
issues are posted. So inventory difference is posted as a reversal of Goods Issue, but
the amount will be posted to Payable from Consignment Stock
CYCLE COUNTING
Cycle counting indicator is set for each of the material in material master(Manual)
It defines the counting of physical inventory intervals in a fiscal year
Cycle counting indicator can be set automatically by ABC analysis of stock
Transaction Code MIBC)
In ABC analysis, the cycle counting indicator is updated as per definition of A,B&C
and periods
ABC analysis can be done through transaction code MC40- User based ABC
analysis and MC-41 Requirement based ABC analysis
Page 92 of 160
Classification: Confidential
Program RMCBIN00 allows you to carry out an ABC analysis to classify the
materials according to either by consumption or by requirements
The cycle counting indicator in material master can be updated automatically during
cycle counting analysis.
The interval between inventories for each cycle counting indicator is set in
customizing
Cycle counting Indicator can be fixed. If it is fixed, the status (present status A or B
or C) will not change due to the program run.
Program RM071CN1 creates Physical Inventory documents for cycle counting. It
checks all cycle counting materials to determine whether Physical Inventory is DUE
or not (Transaction Code MICN)
INVENTORY SAMPLING
Page 93 of 160
Classification: Confidential
- Debited (+)
- Credited (-)
- Debited (+)
- Credited (-)
- Debited (+)
- Credited (-)
- Debited(+)
- Credited (-)
Valuation Area Can be at Company code level or Plant level. SAP recommends
the valuation at Plant Level.
Valuation at Plant level is MANDATORY if we want to use Production Planning
(PP) or Product costing accounting components or retail system.
Once the valuation area is defined In the customizing, it is very DIFFICULT to
reverse it.
If you want to have a storage location for storing materials non-valuated, you can
have it through another Plant(Valuation area) where only quantity updation will
take place
The transactions in inventory management that affects accounting are Goods
Receipt, Goods Issue and Transfer Posting
These transactions can change the valuation price of the material depending on the
price control of the material
The posting of invoice verification (MIRO) also can affect the material valuation
Material Valuation during :
1. RECEIPTS are valuated at current material price in the material master
2. a) GR for PO GR before IR Materials are valuated at PO Price
b) GR for PO GR after IR Materials are valuated at Invoice price
3. GOODS ISSUE Goods Issues are valuated at the current price of the
material in material Master.
4. Free Delivery Zero Value
Materials that are to be valuated should have accounting data with valuation Class
Material Price Control
1. In standard pricing (S),
Page 94 of 160
Classification: Confidential
If the material is managed at Standard price, the moving average price will be
recorded in the material master by the system
Changing of Material master price (MR21) from Standard to Moving average price
is ALWAYS possible
Changing of Material master price from Moving average price to Standard is NOT
POSSIBLE in 2 cases
1. If the material is valuated in SPLIT VALUATION
2. If the standard price is coming from COSTING and is NOT equal to the
moving average price
3. Changing fro S to V & V to S are Possible, if POs are Not created or Stocks
are not existing
Periodic Unit Price (PUP) Price that changes periodically as a result of goods
movements and invoice postings
PUP = Value of material / Quantity of material
PUP is used in single level or multi level price determination to valuate the material
for closing period.
PUP can carryout in 3 currencies and 3 valuation areas
The valuation in current period, system uses standard pricing.
Classification: Confidential
2. Valuation area
3. Material Type/ Valuation class
4. Transactions (Movement type)
1. Chart of Accounts Influencing Factors
Chart of account is assigned to company code
Used as a key factor for account determination to enable a differentiation for
the purpose of G/L account assignment
Configure separately for automatic account determination
Financial accounting, Cost & Revenue accounting uses the optional chart of
accounting
2. Valuation Area- Valuation Grouping code Influencing factors
Key for account determination that enables a differentiation for G/L account
assignment WITHIN Chart of accounts
By Valuation grouping code, dependency of accounts on Valuation area
If a valuation grouping code is there assign a code for each valuation area
Valuation Area is the level at which the materials are valuated
If the valuation is at company code, G/L account CAN NOT be assigned
according to Plant
We can assign a totally different G/L accounts to Plant if it is having a
separate Valuation grouping code
CHART OF ACCOUNTS
COMPANY CODE
PLANT
VALUATION
GROUPING CODE
3. Material Type Material Influencing Factors
Its a key in account determination that enables a differentiation for G/L
Account assignment depends on Material
Material is assigned to a Valuation class, which depends on a Material type
More than 1 material type is allowed for a valuation class
MATERIAL TYPE
A/C ASSIGNMENT
VALUATION CLASS
CATEGORY
Raw Material ROH
Finished Goods FERT
3000
0001
Oper.Supplies HIBE
Page 96 of 160
3001
3002
Classification: Confidential
Chart of Accounts
Valuation Area
Material
Material Type
1
2
Account Category
Reference
Valuation Class
Business
Transaction
(Movement Type)
Value
String
Transaction
Event Key
Account Modifier
Page 97 of 160
Classification: Confidential
General
Ledger
ACCOUNT
Value
String
WA01
Account
Modifier
VBR
GOODS ISSUE TO
COST CENTER
Movement Type
201
Plant
1000
Material
MATERIAL MASTER
Valuation
area
Valuation
class
Price control
1000
3000
V
BSX
GBB
PRD
Valuation
grouping code
1000
0001
Page 98 of 160
Classification: Confidential
Valuation
grouping
code
0001
Account
Modifier
VBR
Valuation
Class
G/L Account
3000 XXXX
Chart of accounts
Valuation grouping code
Material
Valuation Class
Accounting data
Material Type
Value string
Account
Grouping Code
Account Modifier
Default accounting The system proposes an account depend on the account assignment.
The system uses the Account grouping for an account assignment category to determine
this account
Page 99 of 160
Classification: Confidential
Classification: Confidential
Classification: Confidential
Each processing key in the value string determines the following information for its posting
the FI posting key to be used for debit and credit
the rules (see next page) and whether account modifications are to be taken into account
together with the rule and the chart of account the G/L account
"The account modification is a key which has a different meaning depending on the
procedure which is used to differentiate the account determination. The meaning is
predefined in the system and cannot be changed." [SAP Help on the field]
It is possible to include a extra key (account modification key) for a processing key within
a particular value string / movement type combination (see Customizing "new movement
types"). If an account modification key is added to a processing key it is only active within
that particular value string and "type of movement" (different settings for one movement
type e.g. 101: GR w. reference to a purchase order and GR with reference to a production
order, see "new movement types", view posting control).
Example: In the MM all offsetting entries for inventory postings are grouped under the
processing key GBB. In fact there are (or may be) different offsetting entries e.g. for GR
from production (MType 101) or GI for cost center (MType 201). In that case the account
modification is used to determine the relevant account number using the account
modification AUF and VBR.
The account modification key itself seems to be a hard coded processing key (e.g. AUF).
Procedure part 3 Account allocation
Account allocation depends on the chart of accounts and on the transaction (processing
key).
You can set further account determination keys in the rule definition.
The rules specify
whether there can be different G/L accounts for credit and debit postings and
whether the valuation class and/or the valuation grouping code and/or account modification
should be used when determining the G/L account.
If account modification is active, a new processing key is found and used to determine the
relevant rules. In the MM Rel. 2.2 only the processing key GBB (offsetting entry for
inventory postings) uses account modifications e.g. for the order settlement (processing key
AUF).
Account determination Procedure Overview
Step 1: Determination of the value string for movement type-based MM transactions can
be viewed via the menu option: Tools -> Customizing -> Configuration -> Logistics ->
Material Management -> Inventory Management -> Transactions -> Movement types ->
New movement types (Transaction code OMBQ) Choose view "Posting Control".
Step 2: Determination of the value string for non movement type-based MM transactions
can be viewed via the tables: T169 and T169W.
Step 3: Determination of the processing keys:
a.) Movement type-based MM transactions: Table T156W
b.) Non movement type-based MM transactions: Table T169A
Step 4: The G/L account to be used in a given circumstance (Rules) is set up via one of the
following menu options (different simulation functionality !):
Classification: Confidential
Tools -> Customizing -> Configuration -> Logistics -> Material Management
->
Valuation / acct assg. -> Configuration -> Acct determination -> Automatic posting.
Tools -> Customizing -> Configuration -> Logistics -> Material Management -> Invoice
verification -> Master data -> Automatic posting
When customizing the account determination process, a valuation grouping code is first
selected (this also implies a chart of accounts). After this, a posting transaction is selected
for the configuration of the G/L accounts. This determines the processing (or transaction)
key and the account modifications relevant for this transaction. After this, the relevant G/L
account can be allocated for the individual valuation classes.
A simulation function supports the checking of the settings made.
Classification: Confidential
Material
Master
"Type of
Material"
Material
Type
Step 1 or 2
Value
Posting String
Plant
Qty.
Posting String
Account
Categ. Reference
Company Code
Step 3
Rules
Processing
Key (GBB)
Account
modification
Valuation
Class
Val. Grouping
Code
Processing
Key (AUF)
Step 4
Chart of
Account
Legend
Information derived from Transaction type
Information derived from Material Master
Information derived from the organiz. Structure
Main Customizing area
G/L Account
Classification: Confidential
o Valuation Category is the key that indicates the criteria for defining partial stock
and it determines which valuation type is allowed
o Valuation Type is the key that identifies split valuated stock of material and
indicates the characteristic of partial stock (Enter in the BATCH FILED of goods
movements)
o Example for valuation categories are Procurement type, Origin, Quality
o Examples for Valuation types are Internal & external, Italy & France, A,B,C
o Rev. 4.5A onwards, we can enter valuation type directly in the item table within
stock determination enabling you to move conveniently determining stocks for
withdrawal of material with Split Valuation
o Stocks and stock values of split-valuated material are cumulated at Valuation area
level. Moving average price control is same for total area.
o System creates a valuation record containing specific valuation data for each
valuation category used.
Settings of Split valuation
1. Define Global Types It can be procurement type (Internal / External) OR account
category reference
2. Define global categories It can be Type to be used in Internal or external
procurement OR indicator creation valuation type automatically
3. Define Local definitions Assignment of categories created to original units.
(change type/ categories locally. Define account category reference for a valuation
type. While creating material master, choose valuation class for this account
category reference)
Procedure for SPLIT VALUATION - transactional
1. While creating the material master select valuation category and save it.
2. Again go to Material master, while entering system will ask for Valuation type in
accounting view. Enter the valuation class, price and save.
3. Again go to material master and repeat the procedure for 2nd valuation type.
4. The valuation type for each valuation category is fixed in customizing
To select split valuation, proceed as follows:
1. Determine the valuation categories and valuation types that are allowed for all
valuation areas:
global valuation categories via menu "Goto --> Global Categories"
global valuation types via menu "Goto --> Global Types"
2. Allocate the valuation types to the valuation categories.
a) Select "Goto --> Global Categories".
b) Position the cursor on a valuation category and select "Goto --> Global Categories -> Allocations --> Types->Category".
c) Activate the valuation types you want.
3. Determine the local valuation categories for each valuation area.
a) Select "Goto --> Local definitions".
b) Position the cursor on a valuation area and select "Goto --> Local Definitions -->
Allocate Categoires->Org.units". You obtain a list of the global valuation categories.
c) Activate the categories to be used in this valuation area.
Page 105 of 160
Classification: Confidential
The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.
For maintaining, stock only (Generally LOW VALUE items) materials material
type Non-valuated stock material UNBW is used
This material type will not have any Accounting view in material master because it
is not maintained with any Value
We CANNOT post a GR for a UNBW material directly for consumption
The storage of material will be to Warehouse and then issued for consumption. It is
not having any value, only Quantity
No accounting document will be generated during transactions
UNBW materials Vs Raw Materials
UNBW Material
Raw Material
Purchase Order
GR Quantity
To Warehouse
Can be to warehouse or
Consumption
GR Value
To consumption A/c
Can be to stock OR
consumption A/c
Classification: Confidential
At Goods receipt, the movement type for RTP 501+M is selected automatically by
the system. For returns, 502+M
If we want to transfer these RTP material between storage locations, system selects
the movement type 311+M
RTP stocks are available in stock displays MMBE / MB53
Process flow of RTP
1.
Create Master record for RTP by selecting the material type returnable transport
Packaging LEIH
2.
Create the PO for the base material (Not include any RTP at PO Level)
3.
Do goods receipt
After entering the base material, click on the icon, Transport equipment, which is
below the item overview. Check for the movement type selected by the system as
501+M in where tab. Go to the material tab and enter the RTP material created
and enter the storage location (where the RTP is to be maintained)
Post the GR and see the accounting document by display. There WILL NOT be any
accounting document created for RTP
4. If you want to send back the RTP material
Select Goods issue MIGO or mb1c (others) and select the movement type 502+M,
enter the data and save
INVOICE VERIFICATION
Invoice verification process the invoice in FI. By posting an invoice the data in MM & FI
are updated.
UPDATION IN
MATERIALS MGT.
UPDATION IN
ACCOUNTING
1. PO Update
2. PO History update
3. Delivery cost update
4. Mat Master update
5. Vendor master update
Classification: Confidential
In MAP price control, if the PO Price and Invoice prices are varying from the
material master price, then the difference is distributed to the stock (If sufficient stock
available or it will post to price difference account). So the price in material master is
fluctuating with respect to invoice posting
In Standard price control, the difference is booked in price difference account and the
material master price is CONSTANT.
GR based Invoice verification is set at PO, - Vendor master record
Conventional Invoice Verification
Logistics Invoice verification
1. Material is directly posted to
1. Its a distributed system
material & G/L account
2. ONLY FI document is created
2. Unlimited multiple selection
3. Unplanned delivery cost postings
3. Option of IV in background
is NOT possible
4. Invoice reduction facility
5. FI & MM Documents on posting
Classification: Confidential
Classification: Confidential
Unplanned delivery cost will be posted as DEBIT MEMO in invoice entry sheet, if
the invoice is separately for unplanned delivery cost
In the payment block option in Payment tab of the header data, we can block the
invoice MANUALLY
If we want to post an invoice of Free for payment, use the option free for payment
We can define new display variant in customizing
Payment terms are defined in PO. While entering an invoice, the system displays the
terms as per PO, but can be changed
Classification: Confidential
INVOICING PLAN
Tax codes are defined for each tax rate in customizing in FI (FTXP)
The tax codes are attached in PO
Classification: Confidential
2. NET Posting If posting is Net, system posts the cash discount amount to the
stock/ cost account. Cash discount clearing account at the time of payment. So
select NET posting for cash discount.
Cash Discount
(During LIV)
(During Payment)
If the PO is in foreign currency, we can use FIXED exchange rate. Then the
system uses this exchange rate to convert the foreign currency to the local currency
at the time of GR and IV
Classification: Confidential
If it is NOT FIXED in PO, then the system uses the current exchange rate to
convert the foreign currency to local currency at the time of GR. In IV also system
suggests the same exchange rate, BUT WE CAN CHANGE it
If the exchange rate is NOT FIXED in PO, the exchange rate differences can occur
as the use of different exchange rate. Its just like as a price difference. It will be
posted to Exchange rate difference account as per the customizing. (To a separate
account or add to the existing)
We can set tolerance limit for each type of variance in customizing. There are 4 types of
tolerances.
1. Vendor specific
2. Invoice block
3. At Purchasing level (Order price)
4. At Goods receipt (Quantity)
1. VENDOR SPECIFIC TOLERANCES
The path is LIV > Incoming Invoice > Vendor specific tolerances
These tolerances are COMPANY CODE LEVEL & ON TOTAL INVOICE
1. Automatic acceptance of Negative differences
a. Absolute Lower limit
i.
Check Limit (Check box)
ii.
Negative acceptance lower limit Value
b. Percentage LOWER limit
i. Check Limit (Check box)
ii. % lower limit (%)
c. Negative small differences
i. Check Limit (Check box)
ii. Small difference Value
2. Automatic acceptance of Positive differences
a. Absolute Lower limit
i. Check Limit (Check box)
ii. Positive acceptance lower limit Value
b. Percentage UPPER limit
i. Check Limit (Check box)
ii. % Upper limit (%)
c. Negative small differences
i. Check Limit (Check box)
ii. Small difference Value
Page 113 of 160
Classification: Confidential
Classification: Confidential
Classification: Confidential
Upper Limit
- Absolute
Do not check (Radio button)
- Check Limit (radio button) Value ------ Percentage
Do not check (Radio button)
- Check Limit (radio button) Percentage ------%
Lower Limit
- Absolute
Do not check (Radio button)
- Check Limit (radio button) Value ------ Percentage
Do not check (Radio button)
- Check Limit (radio button) Percentage ------%
10. Date Variance Value x days (ST)
Upper Limit
- Do not check (Radio button)
- Check Limit Value ----11. Moving Average Price Variances (VP)
Upper Limit
- Absolute Do not check (Radio button)
- Check Limit (radio button) Tolerance limit ------%
Lower Limit
- Absolute Do not check (Radio button)
- Check Limit (radio button) Tolerance limit ------%
3. PURCHASE ORGANIZATION LEVEL
1. PE
2. SE
4. AT GOODS RECEIPT
If the variances are within the tolerance limit, the system displays message as per
the customizing
If the payment is automatically blocked due to the (settings) exceeded the units,
payment block is filled in the Vendor line item of the FI document
Payment block is filled in MM document when an invoice is blocked MANUALLY
(at header level of MIRO)- Not in item level
Manual block of an invoice done at tab Payment in header ( Payment block ) of
MIRO screen. In this case in Vendor line item (after posting the invoice) the reason
for block will be displayed as A (payment Block)
Classification: Confidential
In other cases, payment block due to variance by system and manual block made in
item level (during MIRO), the reason for block (after the invoice posting) in the
vendor line item is R (Invoice verification)
If once the invoice is blocked, we have to clear it separately
Header Manual Block A In MM & FI
Other blocks R In FI only
BLOCKING VARIANCES
1.
2.
3.
4.
5.
6.
7.
Quantity
Price
PO Price Quantity
Date
Stochastic
Quality
manual
Classification: Confidential
An invoice blocked stochastically, system sets a payment block in vendor line item in the
FI document. Individual item WILL NOT contain a blocking reason.
6. Blocking due to QUALITY
Material is subject to Quality Management fixed in Material Master.
While posting GR, system will create an inspection lot
System will block in this case, if there in NO user decision on inspection lot/
rejected in Inspection. (To be entered in the system)
7. Manual Blocking
a) Manual blocking can be made at HEADER Level. In payments tab in MIRO screen
b) At ITEM LEVEL In column Ma put the tick
If the invoice is blocked at Header level, the blocking is for total items in the
invoice
If the block is at item level, it is applicable for only that item
If the manual blocking is at Header level, the reason of the invoice blocking
will appear as A in MM and FI document after posting the invoice
If the blocking is at Item level OR automatic blocking by the system on any
reason, the reason of blocking will appear as R and will appear only in FI
document
INVOICE REDUCTION
It is an option available at MIRO to reduce the invoice and accept it.
For example,
At PO 100Nos x Price 10 (1000)
At GR 70Nos x Price 10 (700)
At IV 100Nos x Price 10 (1000) and if we are opting Invoice reduction,
System will generate 2 accounting documents
1. 100Nos x Price 10 Invoice (as per the invoice)
2. 30Nos x Price 10 A CREDIT MEMO (for the difference value)
Classification: Confidential
Account Movements
Purchase Order - 100Nos x Price 10
Goods Receipt - 70 Nos
Invoice receipt - 100Nos x Price 12 + 10% Tax = 1200 + 120 =1320
Stock Account
GR/IR clearing Account
Vendor Account
Input Tax
Clearing account for Invoice reduction
At Goods Receipt
+700
-700
At Invoice verification,
Vendor account 1320, GR/IR clearing 700, the difference = 1320-700 =620
Out of 620,
Clearing account = 30Nos x 12 = 360
Input tax = 10% of 1200 = 120
So the amount will go to stock account = 620 (360+120) = 140
As the invoice is accepted, the GR/IR clearing account will be cleared and the
balance amount (140) will go to Stock account
After posting the invoice reduction, we CAN NOT see the higher amount invoiced
by the Vendor in PO History. It will show the actual amount paid to the Vendor
after the invoice reduction
Classification: Confidential
2 accounting documents are generated One for Invoice and the other for Credit
memo
SETTINGS FOR
SMALL DIFFERENCES
INVOICE
Page 120 of 160
INVOICE
Classification: Confidential
CANNOT BE
POSTED
CANNOT BE
POSTED
SETTING FOR
NEGATIVE
TOLERANCE
SETTING FOR
POSITIVE
TOLERANCES
(-)
(+)
MANUAL ACCEPTANCE
We can accept the differences manually only, if the invoice is verified in the
background and containing errors
Accept the difference on header data and reprocess the invoice
While posting these invoices system will post the difference amount to the same
account.
These invoices will not have any GR/IR clearing account as there is not any GR
INVOICES of PO WITH ACCOUNT ASSIGNMENT
The topics are
Classification: Confidential
While posting the invoice, system proposes the individual current account
assignment as per the PO
In case of multiple account assignment, and partial invoice, the system will
distribute
- on a progressive fill-up basis
- Proportionately
Account assignment categories are Asset (A), Cost Centre (K), Sales Order (C),
Order (F), etc.
Account assignment category is fixed in PO per item which is having the control of
a) you can post a GR b) you can post an invoice. The controls are fixed in
Customizing
The account assignment fixed in PO can be changed in cases (a) Defined (changes)
in customizing (b) Non-valuated GRs are defined in PO
The account assignment categories are available in SPRO at Purchasing > Account
assignment > Maintain account assignment category
The detailed settings for each account assignment categories are
i. Changeability of account assignment
ii. IR changeable
iii. Define account assignment
iv. Delivery cost separate
v. Goods receipt
vi. GR non-valuated
vii. Invoice receipt
viii. GR indicator biding
ix. GR non-valuated biding
x. IR indicator biding
Classification: Confidential
At GR
+500
-500
CASE -2 - NON-VALUATED GR
At GR
Consumption Account
GR/IR clearing Account
Vendor Account
At IV
+50
+500
-550
At IV
+550
-550
If the valuated GR defined in PO, the price difference is posted to the Consumption
account
Classification: Confidential
DELIVRY COSTS
Freight
Customs
Fixed amount
% of Value
Quantity dependent
Classification: Confidential
If the unplanned delivery costs are distributed among PO items, the offsetting entry
(in case of Price difference) is post to the respective stock account or a price
difference account as per the price control for that material
The setting made at customizing for unplanned delivery costs are at COMPANY
CODE level
We CAN NOT have an unplanned delivery cost option for a Planned delivery cost
with distribute the value among the items in MIRO transaction.
To tackle the situation of unplanned delivery cost of a planned delivery cost in
MIRO, got to the item level populated value, edit there itself and put the total at
header level. Another option is to activate direct posating to G/L accounts. So it is
suggested to enter the planned delivery cost accurately to the extent possible way.
This option is used for the changes due to TOTAL invoice value (NOT
QUANTITY)
These postings are done AFTER a posting of an invoice
When you enter to subsequent debit/ credit system suggests full quantity, but
NO value
Subsequent debit/ Credits are flagged in PO History
Account movements in subsequent credit/ debit are stock account and Vendor
account
Case1 If GR is posted
System makes the offsetting entry to stock account or price difference
account depending on the price control of the material and the stock position
Classification: Confidential
(+) and (-) signs are available for posting the value
Classification: Confidential
INVOICING PLAN
2 types of Invoicing plans are used
1. Periodic
2. Partial
1. PERIODIC INVOICING PLAN
TOTAL VALUE of the PO item is invoiced on EACH due date. These due dates
can be suggested by R/3 system as per your plan
Invoicing plan types are defined in customizing and is assigned to the PO item,
while creating a PO
Vendor should have the ERS tick if you want to work with ERS
2. PARTIAL INVOICING PALN
Invoicing in different stages
Example is % invoicing in a construction project
In this type the total value of the item is SPREAD among the individual due dates
as per the invoicing Plan
ONLY a PART of the total item is due on a payable date
The total value of the total items is SPLIT on the dates and the values are specified
in Invoicing Plan
PRE-REQUISITES for INVOICING PLANS
1.
Account assignment for the item
2.
No GR or Non-valuated GR
3.
Document type FO for the Purchase Order
4.
Validity period should be entered in PO
5.
Invoicing Plan settings are to be defined in customizing
6.
For ERS, settings of ERS
CUSTOMIZING FOR INVOICING PLANS
1. Invoicing Plan type for Periodic and Partial
2. Maintain Date IDs
3. Define and maintain Date category
4. Maintain date proposal for the Invoicing Plan type
5. Define rules for Date determination
6. Define Invoice blocks
Page 127 of 160
Classification: Confidential
Periodic
1. Validity period
2. Periodicity of Invoicing date
3. Maintenance
Partial
1. Starting date
2. Reference invoicing Plan number
3. Maintenance
Classification: Confidential
Classification: Confidential
2. Vendor
3. reference
4. Document date
5. Amount and currency
In customizing, we can decide if the system has to take care of Company code/ the
reference and dates as check criteria
8. Invoice Blocks
9. Message determination in LIV (standard condition technique)
Most of the data related to LIV are stored in Tables EKBE, RBKP & RSEG
Data for LIV are
1.
Master data Material master, Vendor Master & Accounting data of G/l
Account
2.
Transactional data Purchasing documents, Material document &
Accounting documents
If you post an invoice without checking the invoice items, variances in individual
documents can cancel each other without your notice
Invoice can be posted directly to a G/L account OR material account by activating
direct posting to G/l account and Material account in Customizing
If Vendor is NOT CREATED, system will post the amount to ONE TIME
VENDOR Account
Automatic settlements facility is available for
1. Consignment & Pipeline
2. ERS
3. Invoicing Plan
4. Revaluation
ALLOCATION TO
Purchase Order/ Sch.
1Agreement
MORE CRITERIA
1 Multiple allocation
Classification: Confidential
1 Services Only
1 Goods & Services Only
2 Deliveries
6Transport Agent
3 Returns
4 Time Periods
1 means of transport
2 Partner
3 Freight Cost number
Invoice verification of ONE time Vendor Same as that of LIV but, the system
proposes the address data for the invoicing party and OTV button for Vendor data
screen area. Collective accounts are set up for One time vendors. These accounts
are used for more than 1 vendor so the master record does not contain any vendor
specific data. SO the details are to be entered in Purchasing OR Invoice verification.
The procedure of Invoice verification of ONE TIME Vendor is
1. In the Vendor data of MIRO screen, choose OTV (One Time
Vendor) and enter address, Bank data, etc.
2. Enter the relevant invoice data
3. Post the invoice
If you are having 2 types of operations Domestic and Foreign, you have to have 2
one time vendor master record
While posting an invoice verification of FREE GOODS, (511) Qty, MAP, total
value will be changed/ updated in material master
If there is different payee, the option to enter this are (1) At the time of Invoice
verification (2) AT the time of Payment program run
Work List is used in the application of (1) enter invoice (2) Park the invoice
GR based IV can be used for invoice against PO and invoice against Delivery note
Automatic amount correction
When quantity changes occur, you can perform automatic correction of an
ITEM AMOUNT using the USER PARAMETER RBB.
For enter invoice and park invoice set the user profile RBB in SAP easy menu
in Parameter tab and in value column put 12 Blanks and X for the 13 th and
then save.
In easy Menu Go to SYSTEM > Maintain User Profile, > Set Data, will get
parameter Tab
Invoice reduction Correcting quantities or Values
Tax We can configure whether we want to take into account tax postings (a) Only
in Invoice document (b) Invoice document + Credit memo
While SIMULATING, following POSTING LINES are NOT DISAPLYED
because they are NOT determined while simulating the document
1. Posting for withholding Tax
2. Multiple Vendor line items due to SPLIT TERMS of Payment
Classification: Confidential
Classification: Confidential
5. I Quality
6. O Others (item amount check)
If an invoice for a Blanket PO is blocked due to DATE variance CANNOT be
released automatically.
If an invoice is blocked (a) Blocking manually at header AND (b) item having
block due to variances, the system will display this invoice block as DUE to
VARIANCES
Planned delivery costs are on ITEM basis
We CAN NOT differentiate between UNPLANNED DISTRIBUTED DELIVERY
COSTS and PRICE VARIANCES at PO History
Even system will not display the unplanned delivery cost that posted to a separate
G/l account in PO History
System WILL NOT CHECK the maximum amount of the prices for unplanned
delivery cost
Subsequent Debit/ Credit
System records every subsequent credit/ debit in PO history
Subsequent credit/ debit are VALUE basis
Total based Differences Vendor specific tolerances
1. Total based invoice reduction
Posting to Invoice reduction clearing account
2. total based acceptance
Posting the difference to Expense/ revenue account
3. Manual acceptance
as per customizing
Credit memos can be created using ERS
Planned delivery costs CANNOT be processed with ERS
Program used for ERS RMMR1MRS
Revaluation To determine the difference values on the basis of price changes that
retro-actively valid and to create settlement documents for them
Pre-requisites
1. It should be with respect to a PO/ Sch. Agreement item
2. The item should not be deleted or blocked
3. GR based IV
4. Flagging for revaluation in Vendor Master
5. Customization
PO History History category of revaluation NeuB
CHECKS before posting of a CREDIT MEMO
1. Maximum Value It should be less than earlier invoice value
2. Maximum Quantity - It should be less than earlier invoice Quantity
3. EQUAL It will leads to a FULL REVERSAL (It will not create
credit memo)
Advance payments/ Down payments (F-58) are NOT updated in PO History
If an item out many item in an invoice is cleared for payment and other items are in
blocked for other reasons, the ITEM-WISE RELEASE is NOT possible
Automatic Payment Program (APP)
Classification: Confidential
Credit Master
Basic Parameters
Online parameters
Invoice document
PROPOSAL RUN
PAYMENT RUN
PRINT RUN
OUTPUT DETERMINATION
Classification: Confidential
Classification: Confidential
Define which print operation this message type is defined for (Like New print/ Print
for changes, etc)
Pur. Org
XXXX
Vendor
VVVVV
Message record
time -4PM
Medium - FAX
No of copies - 4
ACCESS SEQUENCE
Sequence No Condition Table
10
Pur. Orgn/ Vendor
Document type
20
CONDITION TABLE
Document type Message record
NB
Time - Immediate
Medium - Print
No. of copies - 2
Classification: Confidential
If the assigned requirements is met for an (auto) message type, the program
determines the access sequence with which it should search through the condition
tables for message records
We can check the message determination facility using the determination analysis
Classification: Confidential
1
Message Determination SCHEMA
PO - RMBEFO
PURCHASE ORDER
Vendor - VVVVV
Pur. Orn - XXXX
2
MESSAGE TYPES
ACCESS SEQUENCE
3
4
ACCESS SEQUENCE
1. Doc Type/ Pur Orgn./ Vendor
2. Document type
MESSAGE HEADER
Message Type
Printer
NEU
1DRUCKLF
123
5
PRINTER
1. Output immediately
2. Number of copies -2
Classification: Confidential
Classification: Confidential
2. Purchase Organization
3. Inter company
4. Ordering address
5. Purchase document type
6. Purchase group
7. Supplying Plant
8. Vendor
2) Access Sequence it is CROSS CLIENT
Define access sequence for RFQ/ PO/ Outline Agreement/ Sch Agreement release
Order/ Inbound delivery
0001 - Document type/ Purchase Organization/ Vendor (025)
Access for inbound delivery should be delivery type
3) Message (Output Type) Type
Define message types for RFQ/ PO/ Outline Agreement/ Sch Agreement release
Order/ Inbound delivery.
Standard message types are
1. NEU New PO printout
2. AUFB Dunning Order confirmation
3. ERIN reminder
4. MAHN Dunning
For each message (output type) type,
Processing routines like
a. Print
b. Fax
c. EDI
d. ALE are to be fixed
For each processing routines, the partner functions like
a. Ordering address
b. Vendor
c. Delivering Plant, etc are to be assigned
4) Requirement of Output control
Keep the tick for make it active
5) Message determination Schema
Schema (Procedure) to be attached for each of
RFQ/ PO/ Outline Agreement/ Sch Agreement release Order/ Inbound delivery
6) Partner roles per message type
Define partner role for RFQ/ PO/ Outline Agreement/ Sch Agreement release
Order/ Inbound delivery
5) Assign output device to Purchasing group
Attach printer/ output device to each purchasing group
6) Field relevant Purchasing document changes
Detailed selection of filed names in the documents
Classification: Confidential
16 RELEASE PROCEDURE
Key terms in release procedure
1. Release strategy It controls entire release procedure/ approval process. It contains
release conditions, release codes and release pre-requisites
2. Release Condition It determines which release strategy applies for a situation
3. Release Codes Represents an individual/ Deptt. That must give their approval. Its
a 2 character key. These release code should be attached to a release object (2 for
Purchasing documents)
4. Release pre-requisites It will tell the system the order in which approval process
will take place.
5. Release Status/ Indicator The code represents the release status of a document
Classification: Confidential
In characteristics tab, enter the characteristics created in step 1 along with Data type,
Number of character, decimal points, unit of measurement, etc.
3. Set-up Procedure with classification (Do it in a sequence)
1. Create release group/ Code
Its a 2 digit key and is to be assigned to a release object2.
Provide the overall release tick
Enter the class created in step2
2. Release codes
In each group/ code, enter the release codes.
Workflow is also can be attached here
3. Release Indicator
Define the release indicator here, like released, under process, blocked
Changeability options are available here
You can assign the % value change against each release indicator
Changeability Indicators available in standard system are:
1. BLANK Changeable, new release in case of new strategy
2. 1 Cannot be changed
3. 2 Changeable, No new determination of strategy
4. 3 Changeable, New release in case of new strategy
5. 4 Changeable, new release in case of new strategy OR value change
4. Release strategy
Different strategies are to be created for each release groups/ Codes
1. Release pre-requisite Select the appropriate check boxes for each
strategy
2. Release statuses Attach the release indicator for each step in each
strategy
3. Classification Enter the specific values for the characteristics created ion
step1 for each strategy
4. Release Simulation Simulate and see for errors by the system
Classification: Confidential
17 BATCH MANAGEMENT
The numbering can be Internal / External. If the batch number is internal, system
will create batches for goods movement and batch master will be created in the
background.
If we are changing a material without batch to with batch, we have to post all the
stocks from the previous year, the current period and previous period.
While canceling the batch requirement, we have to re-organize the batch master
records. Then reset the batch management indicator(edit the master record), post the
stock back
There are specific function modules for batches. If we are running it, batches will
be created automatically. Auto Batch EXIT SAPLV01Z-001 & 002
Classification: Confidential
18 CLASSIFICATION
The purpose of classification is to find out suitable/ similar objects available in the R/3
system (Master records)
Elements of Classification
OBJECT TYPE
Meaning
- Inferred from a classifiable Table
Example
- MARA
OBJECT
- Classifiable Unit
- Material/ Vendor
CLASS TYPE
Classification: Confidential
CLASS
- Monitor/ Printer
- Size/ Weight
VALUE
- 17inch / 10Kg
- Value of characteristic
Classification: Confidential
19 PRICING PROCEDURE
Time dependent conditions
We can specify in customizing via Document type whether time dependent (TD) or
Time Independent (TID) conditions can be maintained for Outline Agreements
Conditions in Purchase Order are Time independent
TD conditions can be maintained for
1. Plant specific
2. Purchase Organization specific
3. Reference Purchase Organization specific
4. Info Record
5. Outline agreements
6. General conditions
TD conditions can be limited to a VALIDITY PERIOD
Price/ quantity scaling
We can specify the limits for TD conditions
TD conditions from info record or Outline agreements are accepted as default
values in Pos
Maintaining TD Conditions
Conditions can be maintained using master data menu in purchasing. But SAP does not
recommend it. But maintain them in the relevant documents or in the info records
1. Using Master data menu for maintaining TD conditions
a) Master data > Conditions > Prices
b) Master data > Conditions > Discounts/ surcharges
- per Vendor
- per Condition group
- per material type
- per invoicing party
Condition types Vendor discount RL01
- Group discount RGRO
- Miscellaneous MAR1
- Accounting discount REST
c) Master data > Conditions > Other
Condition types GAU2, NAVS and you can create your own here
No Access sequences for supplementary conditions.
Eg. Material specific discounts & surcharges
No Separate price determination for PB00. They are found using condition record for the
gross price. PB00 is NOT having any access sequence
Classification: Confidential
CONDITION TYPES.
Each condition type is defined with
1. Condition class
2. Calculation Type
3. Condition category
4. Access sequence
Classification: Confidential
1. CONTROL DATA
1Condition Class
2. GROUP CONDITION
A
B
C
D
E
Discount/ Surcharge
Prices
Expenses
Taxes
Extra Pay
A
B
C
D
E
F
Percentage
Fixed amount
Quantity
Gross Weight
Net weight
Volume
A
B
C
D
E
F
G
Packaging
Delivery cost
Insurance
Taxes
Cash Discount
Freight
Cost
Commercial
Round up
1Group condition
2Group condition routine
3Rounding difference comparison
2Calculation Type
1Manual Entries
3Condition Category
4Rounding Rule
Classification: Confidential
A
B
C
D
No Limitation
Free
Auto entry priority
Manual entry priority
No manual entry priority
Round down
A
B
Condition to be duplicated
Cumulation of condition
5Structure condition
Classification: Confidential
ACCESS SEQUENCE
Its a search strategy that enables you to specify the order in which Condition tables
are to be searched for relevant entries for a condition type.
It is assigned to a condition type
The order of access is determined by the order of the condition table in the access
sequence.
The EXLUSIVE INDICATOR determines that the search for further entries in
condition tables is interrupted if an access was successful and a relevant entry was
found
Condition types WITH VALIDITY period SHOULD HAVE an access sequence
We CAN NOT assign an access sequence to a HEADER CONDITION
EXCLUSION OF CONDITIONS
Define Condition Exclusion
In this step, you define the condition exclusion process.
If several condition records are valid in the price determination process, you must define
rules stipulating which conditions are selected and which are disregarded. To do this, use
the condition exclusion mechanism.
The exclusion of condition records is controlled via exclusion groups. An exclusion group
is a list of condition types that are compared with each other during the price determination
process. The result may be the exclusion of a whole group of conditions or the exclusion of
individual conditions within a group.
Classification: Confidential
The result of the price determination process can thus be influenced with regard to a
desired criterion (for example, the lowest price) by the exclusion of certain condition types,
whereas others are taken into account in this process.
Example
You can define a condition exclusion process that determines the most favorable
price and excludes less favorable but fundamentally possible pricing results. The
lowest price then overrides the condition type priorities that would have been
dictated by the access sequence.
In the calculation schema you define the procedure by which selection within or between
the condition exclusion groups takes place. The following possibilities are available:
Selection of the most favorable condition type within a condition exclusion group.
Selection of the most favorable condition record of a condition type if more valid
condition records exist (for example, selection from different condition records of
condition type PR00)
Selection of the most favorable of two condition exclusion groups (in this case, all
condition types of the two groups are cumulated and the totals compared with each
other)
The tables for the exclusion of conditions are supplied empty. You must therefore work
through the following points if you wish to use the condition exclusion facility:
Enter condition exclusion groups in the calculation schema and define a procedure
for the determination of the condition types to be excluded.
Activities
1. Create a condition exclusion group by entering an alphanumeric key that is max.
four characters long, together with a description.
2. Assign the condition types to a condition exclusion group. A condition exclusion
group can contain any number of condition types.
3. Enter the condition exclusion group in the calculation schema that you will be
using for price (or cost) determination purposes.
4. In the process, note the sequence (consecutive numbers) in which the exclusion
groups are to be processed.
You can use two exclusion groups for condition exclusion purposes. In this case,
you must choose procedure "C", which determines the lowest price between two
exclusion groups.
Classification: Confidential
It is the frame work for determining the purchase or valuation price, which groups
together all the condition types that are relevant to this particular process
The Pricing procedure defines
1. Permissible condition types
2. Condition type for which conditions are to be adopted automatically
(Manual indicator)
3. Condition types for which the Net price calculation is applied (Statistical
Indicator)
4. Order in which the condition types are taken into account in the calculation
of Net or effective price
5. Condition types for which subtotals are calculated
6. Requirements that must be satisfied before a certain condition type is taken
in to account
Sequence of conditions
The step numbers of the condition type in the pricing procedure determines the
sequence in which condition types are to be taken in to account in the calculation of
net or effective price.
This sequence CAN NOT be changed in the document, even if Condition types are
entered manually
Condition type assigned to the same step in the procedure are sorted by means of a
counter
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With these condition types, the order of manual entry decides the point at which the
condition type is taken in to account in the procedure for effective price
You can limit the value of condition by fixing the lower and upper limits of a
particular condition in customizing (Define Limits)
If any condition in the schema is not having an access sequence, then the manual
tick is a mandatory requirement. If we are not giving the manual tick, this condition
type will automatically populated in your document
SCHEMA DETERMINATION
The system will pick-up the pricing procedure as per the settings made in
customizing for schema determination.
Schema Purchasing Organization, Schema group vendor (Attached in Vendor
master) and the assignment of pricing procedure for this combination
The schema group of Stock transport order depends on
o Purchasing Organization
o Document type
o Supplying Plant
Schema assignment for the calculation of MARKET price in Vendor evaluation
depends on Purchase Organization
The pricing procedure for external service management depends on the
DOCUMENT TYPE
A uniform pricing procedure per document type
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Select copy
b) Rules for characteristics
System automatically suggests the table name & filed names
Copy it
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c) Generate Click on generate icon. See that there should not be any error message
d) Update Click on update icon
System will show all info structures.
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Select MCSK in our case, system will call the above info structure and field will be
populated as per your requirement
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