Introduction to SAP QM

SAP is an enterprise-wide Business Software Package designed to integrate each area of a

business.

Through SAP, all business processes can be fully integrated with each other. This means that all
the businesses processes in the company are "inter-connected" in the SAP system, and changes
in one department or process would have an impact on other departments.

 SAP is as an on-line, Real Time system. Thus, information pertaining to the business is up-
to-date and available for others to use immediately and take action when required.
 SAP act as a single source and set of information.
 SAP is a leading enterprise package software in the market
 There are many modules in SAP like SAP SD, MM, PP, QM, FICO, PM, WM and HR, etc.
which are interconnected with each other.

In this SAP QM tutorial, you will learn-

 What is SAP QM or Quality Management?

 SAP QM- Business Processes
 Benefits of SAP QM

What is SAP QM or Quality Management?

You use SAP QM component functions for the following quality management work in SAP
system.

Quality planning

 Basic master data for Quality Management

 Inspection planning using inspection plans of materials, which brings standardization of quality
planning.

Quality assurance

 SAP Quality inspection is performed through inspection lot processing. During this process
quality results are captured, and usage decision is taken to accept or reject the inspection lot.
 Quality certificates of analysis

Quality control

 In SAP QM Quality notifications the root cause analysis is done for the identified defect.
  SAP QM information system is where you can analyze various reports like vendor evaluation, a
list of quality notification, quality charts, etc.

SAP QM- Business Processes

1. Quality Management in Procurement

SAP Quality Management is fully integrated with the purchasing and Inventory Management
process.

It consists of receiving inspection wherein material is received against the purchase order.
Inspection lot is triggered if the material is flagged for quality check.

Quality results are entered against master inspection characteristics. Whether the results are
within/out of tolerance limits, based on that usage decision (accept/reject inspection lot) is taken.

Stock posting from quality to other stock categories needs to be done subsequently in SAP
system.

2. Quality Management in Production

SAP Quality Management is used to connect with the production and Inventory Management
process.

It describes "In process inspections" where inspection lot is triggered on production order
release.

In "inspection after production", inspection lot is triggered after goods receipt is posted from
production order.

"In process inspections" are not relevant to inventory whereas inspection after production
involves stock posting from quality to other stock categories.

This process describes inspection lot processing wherein quality results are entered against
master inspection characteristics. Usage decision ( accept/reject) is taken depending on the
quality results.

3. Quality Notifications

In this process, you can see how defects found during a quality inspection are analysed and
captured in a SAP quality notification.

Here, we do record the root cause analysis of the problems found during inspection to avoid its
re-occurrence.
For SAP QM inprocess inspections also, we can raise internal quality notification and record our
problem analysis.

Benefits of SAP QM

SAP QM provides lot of benefits for any company at various levels, for example through:

 Quality integration with procurement and production and hence more control over the process.
 Planning support ( usage of inspection plans )
 Monitoring of vendor and customer complaints by implementing corrective tasks in SAP QM
quality notifications.
 Automation of quality certificates which are printed during sales delivery to customers.

Next, we will look into each phase of SAP QM and learn how to operate SAP QM module.

Master Data in SAP QM

Within the SAP Quality Management module and for other SAP applications we need to
maintain the data pertaining to inspection planning and inspection lot processing.

Before you create an inspection lot and record inspection results, basic SAP master data for
inspection planning should be maintained.

Following SAP QM master data should be set up before inspection of any material.

Master Inspection Characteristics ( MIC )

Master Inspection characteristics are required to describe the inspection specifications for
materials like length, width, viscosity, etc.

We create master inspection characteristics at the plant level to simplify and standardize the
inspection planning activities.

It also helps to organize the master inspection characteristics in order to avoid duplicate creation
of MIC.

These characteristics can be used in Routings, Master Recipe, Inspection Plan and maintenance
task list. We can also create the different versions for the single MIC.

Inspection method and catalog could be attached to inspection characteristics.

The below are the types of Master Inspection characteristics available in SAP.

a) Quantitative
Quantitative characteristics are used to record the results of the Quantitative inspection.

Values of inspection can be directly feed to these type of characteristics while performing results
recording. Characteristics specification limits like Upper Limit, Lower Limit, and central limits
can be defined for each inspection characteristics at master level or while creating an inspection
plan.

Inspection Method can also be attached to inspection characteristics level.

b) Qualitative

Qualitative characteristics are used to record the results of Attribute inspection like "Ok" or "Not
ok".

Code groups / Selected sets of Catalog type 1 can be used for recording result against Qualitative
inspection characteristics. Appropriate inspection method can be attached to inspection
characteristics.

Inspection Methods

The inspection methods describe the procedures for carrying out inspections.

You can assign an "inspection method" to a master inspection characteristic or directly to an

inspection characteristic in an inspection plan.

Inspection method can also be created in one plant, and the same can be used in the inspection
plan for another plant by using the original plant of inspection method.

Sampling Procedure

The sampling procedure is the procedure by which the sample size for an inspection lot is
determined. It can be used in inspection plans.

The sampling procedure can be a fixed sample, percentage sample, 100% or using sampling
scheme. Sample scheme is the collection of sampling plans.

A sampling plan defines the sample size based on a specific inspection lot quantity and defines
the criteria for determining whether and how a sample is accepted or rejected.

Depending on the business requirement sampling size is determined. For example, if a batch of
the drug needs to be tested, depending on the quantity of the drug manufactured, the sampling for
inspection is planned.

Inspection Plan

Defining inspection plan is necessary if you want to capture quality result it is used,
  To define inspection methodology, for example,
o Materials to be inspected
o How the inspection of materials need to be taken place
o What characteristics to be inspected, work center and inspection specifications.

 Inspection plans define how a quality inspection of one or multiple materials will be taken place.
In the inspection plan, we define the

sequence of inspection operations and the range of specifications available for inspecting
master inspection characteristics, sampling procedure to calculate the sample size for
inspection, Inspection method to inspect the MIC, etc.

 The "status" and "usage" can be maintained for the inspection plan to check whether the plan is
active or inactive. We can identify the inspection plan by using group number (client level) and
group counter (plant level) generated by the SAP system. Multiple materials can be attached to
one plan provided the parameters to be inspected are same.

Quality Info record

Quality Info record is maintained for a "material –vendor relationship." It is used to block the
material from procurement through a certain vendor when the quality of the product is
compromised supplied by the particular vendor.

In this SAP master, we will maintain the quality system for the combination of vendor and
material.

This SAP master will become mandatory only if the QM Procurement key is active in the
material master.

When a quotation or purchase order is created, the SAP system checks whether a Q-info record
is required and available for the combination of material and vendor.

A check is made to determine whether the purchase order can be released based on the Q-info
record.

Quality information record need to be maintained if we would like to use the source inspection
functionality which means, materials will undergo an inspection prior to the material reaches the
plant for Goods Receipt (GR).

This inspection will be purely based on the purchase order created in the SAP system against a
material – vendor – plant combination. There will not be any GR (Goods Receipt) inspection if
the material is already cleared through the source inspection.

Q info record is also useful in scenarios where inspection is restricted. Which means that the
inspection should be continued if it is procured from "xyz" vendor but not in the case when it is
procured by some "abc" vendor.
In this tutorial, you will learn-

 How to create Master Inspection characteristics

 How to create Inspection Methods
 How to create Sampling procedure
 How to create Inspection Plan
 How to create Quality Info Records

How to create Master Inspection characteristics

Step 1) From SAP Easy access menu, open Transaction code QS21

1. Enter Plant Code.

2. Enter master inspection characteristic code which needs to be created.

3. Enter the Key date (valid from date) which means that MIC would be valid from that date.

After filling in all the fields, click or press Enter to go to the next screen.
Step 2) In this step, we will maintain Master inspection characteristic general data as given
below.

1. Tick the checkbox for quantitative if we are creating quantitative characteristic which can be
measured.

2. Enter Status as "Released."

3. Enter "Complete copy model" as the MIC data needs to be maintained completely.

4. Enter the Short text of your choice.

5. Press Control indicators button to maintain other important data like lower and upper limits i.e.
specification range in which material would be accepted.

Step 3) In this step, after pressing control indicator button, the small screen will pop up where
we will maintain the lower and upper limit data.

1. Flag the checkbox for Lower specification limit.

2. Flag the checkbox for upper specification limit.

 3. Flag the checkbox for sampling procedure as we would use sampling procedure for this MIC.

Press enter to move to the next SAP screen.

Step 4) In this step, we will maintain absolute lower and upper limit data.

1. Input number of decimal places and measurement unit for MIC

2. Input the lower spec limit as 4

3. Input the upper spec limit as 4.5.

Press enter to move to the initial SAP screen and save the data. You will see the message as
.

How to create Inspection Methods

Step 1) From SAP Easy access menu, open Transaction code QS31

1. Enter Plant Code.

2. Enter inspection method code which needs to be created.

3. Enter the valid from the date which means that inspection method would be valid from that
date.

Press enter to move to the next SAP QM screen.

Step 2) In this SAP QM screen,

 1. Enter status as "released".

2. Enter the short text of the inspection method and search field for searching for inspection
methods.

Press save button to save the inspection method.

How to create Sampling procedure

Step 1) From SAP Easy access screen open Transaction QDV1

1. Input sampling procedure code which we need to create.

Step 2) After filling in all the fields, click (right mark sign) sign from the top menu to go to
the next SAP screen.
 1. Choose sampling type as "Fixed sample" but you can also select 100% inspection or sampling
scheme.

2. Select Valuation mode "Attributive inspection non confirming units" which defines the rules for
accepting and rejecting characteristic.

3. Press next button to move to the next SAP screen.

Step 3) In this SAP screen,

1. Press "Sample" button which will open a small pop-up screen to define the sample size.

2. Define the sample size as "5".

Press save button to save the sampling procedure.

How to create Inspection Plan

Step 1) From SAP Easy access screen open Transaction QP01

1. Input material code which we need to create an inspection plan.

2. Enter Plant code.

3. Enter the key date (valid from) from which inspection plan would be valid.
Press enter button from the keyboard to move to next screen.

Step 2) In this SAP screen, we will maintain header data

1. Input usage as "5" which means inspection plan will be valid for goods receipt and status as "4"
which means the plan is released.

2. Enter lot size as "99999999" which means inspection plan is valid for inspection lot quantity of
99999999.

3. Press "operations" button to move to the next screen.

Step 3) In this SAP screen, we will maintain operation-data where inspection characteristics will
be maintained.

1. Input the Quality lab work center.

2. Enter the control key as "QM01" which means the operation is meant for quality check.

3. Press "Inspection Characteristics" button to move to the next SAP screen.

Step 4) In this SAP screen, we will maintain inspection characteristics for the operation

1. Input the Master inspection characteristic name "MOIST".

2. Enter the Inspection method.

3. Input sampling Procedure to determine the sample.

After entering all fields, Lower and upper limits are populated automatically.

Press save button to save the inspection plan for the material.

How to create Quality Info Records

Step 1) From SAP Easy access screen open Transaction QI01

1. Input the material code which we need to create quality info records.

2. Enter vendor code.

3. Input the plant code.

Press enter button from the keyboard to move to the next screen.

Step 2) In this SAP screen, we will maintain release date

1. Input Release until this date which means the material can be ordered from the vendor till
release date.

2. Enter Block function if you want to block this material to be ordered from this particular vendor.
Press Insp. Control-Tab to move to the next screen.

Step 3) In this SAP screen, we will maintain inspection control data.

1. Input the Inspection control as "No Inspection" if you do not want to inspect the material for
this particular vendor.

2. If you want to use source inspection, then flag the checkbox for source inspection and enter
source inspection type as "01" else keep it blank.
Press save button to save the quality info record.

Troubleshooting

 Before creation Inspection plan and quality info records, master inspection characteristic,
sampling procedure, inspection method, material master, vendor master should be available in
the SAP system.

Incoming Inspection / Raw Material

Inspection in SAP QM
Incoming inspection is generally called as Raw Material Inspection received against purchase
order in SAP. This inspection will be activated in the raw material by maintaining SAP QM data
in Material Master.

To identify the triggering of inspection based on the business process, inspection types are
maintained in SAP.

Incoming inspection has following steps to follow in SAP system, like

 Creation of inspection lot at goods

receipts against purchase order
A good receipt will happen in the procurement process as a part of purchasing. Good receipt
generally occurs against a purchase order or schedule agreement.

Against each GR line item, the SAP system will automatically generate one inspection lot which
contains details of the purchase like vendor, date of purchase, inspection specifications and
sampling details.

 Listing of Inspection lot

To list Inspection lots, you may use the transaction code QA33. The search criteria can be

1. Material (s)
2. Inspection lot creation date
3. Inspection dates
4. Plant
5. Inspection type
6. Batch
7. Vendor

 Attaching inspection plan and release the inspection lot

If only one inspection plan with task list type '05' (Goods receipt inspection) is available
for the material in released status, the SAP system automatically assigns the plan to the
material. If more than one inspection plan exists for the material, we have to,

1. Assign the proper inspection plan to the material

2. Calculate the sample
3. Release the lot for inspection processing.

 Sample calculation

If sampling procedure is attached with the inspection plan / material / characteristics, the
SAP system will automatically calculate the sample otherwise manually go to the lot and
calculate the sample.

 Result recording

Result recording will be done against the inspection lot created at the time of Goods
Receipt.

All the characteristics will be shown in the SAP recording screen for input. The SAP
system will give an f4 search for getting code values for attribute inspection.

For quantitative data, based on tolerance limit (upper and lower), the SAP system will
propose the valuation. In both cases, the inspector can accept or reject the proposal
(Manually).
  Usage Decision

When we make the usage decision, you decide whether to accept or reject the goods in
the inspection lot based on the results of the inspection.Once you have made the usage
decision, the inspection is completed.

 Stock posting

If inventory management is in place at the time of usage decision, we can transfer the
Quality stock into relevant stock categories like,

1. Unrestricted usage
2. Blocked
3. Scrap
4. Different material
5. Sample
6. Return to vendor

In this SAP QM tutorial, you will learn-

 How to post Goods receipt against Purchase order

 How to do result recording
 How to do usage decision

How to post Goods receipt against Purchase order

In this transaction, we will post goods receipt against purchase order which will trigger
inspection lot.

Step 1) From SAP Easy access menu, open Transaction code MIGO, and enter the following
details.

1. Select Goods receipt from the drop down box.

2. Select Purchase order from drop down box.

3. Enter purchase order number.

After filling in all the fields, click or press Enter to go to the next SAP screen.

Step 2) In this step, we will post goods receipt against the purchase order.

1. You can see the stock type as "quality inspection" is generated automatically as the material is
subjected to quality inspection.

After saving the SAP screen by clicking save button, the material document will be posted.

After posting the material document for Goods receipt against a purchase order, the next step is
the quality result recording.

How to do Result Recording

Step 1) From SAP Easy access menu, open Transaction code QA32.

Here, we will inspect the material and record the results against inspection specification.

1. Enter Plant Code.

2. Enter inspection lot origin as "01" which is standard SAP inspection type used for raw material
inspection.

3. Press Execute to display the list of inspection lot.

Step 2) In this SAP screen,

1. You can see the inspection lot generated in earlier steps along with material

2. Check the SAP system status as REL CALC SPRQ which indicates that Inspection plan is copied in
inspection lot, sample size calculated and stock posting required from quality stock to
unrestricted or any other stock category.

3. Press "Results" button and move to next SAP screen to do results recording.

Step 3) In this SAP screen, you will see the result of inspection lots

1. You can see the short text of the Master Inspection characteristics along with specifications like
length, surface, visual, etc.

2. You can see a sample size of 5 calculated automatically by the system if sampling procedure is
assigned in the inspection plan.

3. Enter your actual results against the inspection specifications.

Press save button to save the inspection results.

How to do usage decision

Step 1) From SAP Easy access screen open same Transaction QA32 with which we have done
results recording in the previous step.

Here, we will do usage decision against inspection lot whether the lot is accepted or rejected and
move the stock from quality inspection.

1. Enter Plant Code in this SAP Screen.

2. Enter inspection lot origin as "01" which is a standard SAP inspection type used for raw material
inspection.

3. Press execute button to display the list of inspection lot along with lot quantity.
Step 2) In this SAP screen,

1. Press usage decision button to move to next SAP screen

Step 3) In this SAP screen,

1. Select UD code as "A" for acceptance of the lot and you can see the quality score as "100" based
on Usage Decision code.

2. Select Inspection lot stock TAB to do stock posting in next SAP screen.
Step 4) In this SAP screen, we will do stock posting from quality stock to any other stock
category.

1. We can move the quality stock of 200 to unrestricted stock (ready for use stock) if the quality
results are within expected specifications, which hits movement type 321 in the background.
(Movement Type 321 indicates the movement of quality stock to unrestricted stock).
Press save button to save the usage decision.

Thus, the stock movement from quality inspection to unrestricted stock, as shown above,
indicates the completion of Raw Material Inspection.

In the next SAP QM tutorial, we will see how to perform "Inprocess Inspection".

Troubleshooting

 Inspection plan must be copied to inspection lot, without which we will not be able to do result
recording and usage decision.
 If inspection plan is created after inspection lot, then inspection lot will get CRTD status. We
need to manually assign inspection plan to change status from created (CRTD) to released (REL).
After Inspection lot is released, then we can perform result recording and usage decision.
 The sampling procedure must be assigned in the inspection plan to do any result recording and
usage decision else manually we need to calculate the sample in the inspection lot.

Inprocess Inspection in SAP QM

In-process inspection (time-based) is used for recording the result for an in-process quality check
for the intermediate and finished product during the production process.

For example, inspection in every two hours, inspection per shift, etc. We will be discussing this
moving forward.
The "Inprocess inspection" lot will have a reference/ link to a production order in SAP system.

The routing operation will contain the inspection characteristics which are needed to be
inspected during the in-process checks.

Inspection lot will be generated at the time of production order release. The inspection type for
in-process inspection is '03'.

NOTE: This type of inspection will not control the inventory, but control the production process.

In-process inspection has following process steps, like

 Creation of inspection lots at process Order release

Inspection lot creation in SAP system will be generated automatically at the time of production
order release.

 Listing of Inspection lot

To list Inspection lots, you may use the transaction code QA33. The search criteria can be,

1. Material (s)
2. Inspection lot creation date
3. Inspection dates
4. Plant
5. Inspection type 03

 Assign Task list to inspection lot

Task list will be automatically assigned from the routing of material.

 Sample calculation

If sampling procedure is attached with the characteristics in the quality operation of the master
recipe, the SAP system will automatically calculate the sample during the time of lot creation /
plant assignment in case of multiple plans available for a material.

 Result recording

Result recording will be done against the inspection lot created against the production order.

All the characteristics will be shown in the SAP recording screen for input. The SAP system will
give an f4 search for getting code values for attribute inspection.

For quantitative data, based on tolerance limit (upper and lower), the SAP system will propose
the valuation. In both cases, the inspector can accept or reject the proposal (Manually).
  Usage Decision

When we make the usage decision, you decide whether to accept or reject the goods in the
inspection lot based on the results of the inspection. Once you have made the usage decision, the
inspection is completed. Stock posting is restricted to the in-process inspection.

In this SAP QM tutorial, you will learn-

 How to create and release production Order

 How to do Result Recording
 How to do usage decision

How to create and release production Order

In this SAP transaction, we will create and release production order, which will trigger quality
inspection lot in SAP system.

Step 1) From SAP Easy access menu, open Transaction code CO01, and enter the following
details.

1. Input the material code for which production order needs to be created.

2. Input production plant in SAP screen.

3. Enter your production Order type.

After filling in all the fields, click or press Enter to go to the next SAP screen.

Step 2) In the next SAP screen enter following details.

1. Input the production quantity in SAP screen.

 2. Select "Current date" from the drop down box.

3. Press "release" button to release the order.

Now, we will check if inspection lot has been generated by clicking "Assignment" tab and
moved to the next SAP screen.

Step 3) In this SAP screen,

1. You can see the inspection lot triggered on the release of production Order.
After checking the inspection lot, save the order by clicking save button.

How to do Result Recording

Step 1) From SAP Easy access menu, open Transaction code QA32.

Here, we will do in process inspection of the material and record the results against inspection
specification.

1. Enter Plant Code in SAP screen.

2. Enter inspection lot origin as "03" which is standard SAP inspection type used for in-process
inspection.

3. Press Execute to display the list of inspection lot.

Step 2) In this SAP screen,

1. You can see the inspection lot generated in earlier steps along with material

2. Check the SAP system status as REL CALC which indicates that inspection specifications are
copied in inspection lot and the sample size is calculated. We cannot see SPRQ status (Stock
Posting) here, as it is not applicable/required to transfer quality stock to any unrestricted or
other stock category for in process inspection.

3. Press "Results" button and move to next SAP screen to do results recording.

Step 3) In this SAP screen, you will see the result of inspection lot is generated.

1. You can see the short text of the qualitative Master Inspection characteristics like "Visual."

2. You can see a sample size of "5" calculated automatically by the SAP system if sampling
procedure is assigned in the inspection plan.

3. Enter your actual results manually against the inspection specifications.

Press save button to save the inspection results.

How to do usage decision

Step 1) From SAP Easy access screen, open same Transaction QA32 with which we have done
results recording in the previous step.

Here, we will do usage decision against inspection lot, and the decision is taken whether
inspection lot should be accepted or rejected.

Follow the following steps in SAP screen,

1. Enter Plant Code.

2. Enter inspection lot origin as "03" which is a standard SAP inspection type used for in process
inspection.

3. Press execute button to display the list of inspection lot along with lot quantity.
Step 2) In this SAP screen,

1. Press usage decision button to move to next screen

Step 3) In this SAP screen,

1. Select UD code as "A" for acceptance of the lot and you can see the quality score as "100" based
on Usage Decision code. You can see that there is no "Inspection lot stock" tab to do any stock
posting as we saw in the raw material inspection.
Press save button to save the usage decision and hence in process inspection is completed.

In next SAP QM tutorial, we will see how to perform final Inspection after production.

Troubleshooting

 Inspection characteristics from routing data must be copied to inspection lot, without which we
will not be able to do result recording and usage decision.
 If inspection characteristics are added in routing after inspection lot, then inspection lot will get
CRTD status. In such case, we need to manually assign inspection specifications to change status
from created (CRTD) to released (REL). After Inspection lot is released, then we can perform
result recording and usage decision.
 The sampling procedure must be assigned in the inspection plan to do any result recording while
the usage decision is done manually. We need to calculate the sample in the inspection lot.
Final Inspection after Production goods
receipt in SAP QM
Inspection against Production GR- this inspection will be based on production confirmation
against a production order.

The inspection lot (with inspection type 04) will be created at the time of Good receipt against
production order.

The SAP system will generate a unique inspection lot which will have the information of
production order, Inspection specification and sampling.

A separate lot will be generated for each GR line items (batch) in the confirmation.

The stock will remain in Quality inspection stock until the inspection is completed (Usage
decision is made).

Final inspection after production has following process steps in SAP system, like

 Creation and Confirmation of Production Order

A good receipt will happen in the procurement process as a part of purchasing. Good receipt
generally occurs against a purchase order or schedule agreement.

Against each GR line item, the SAP system will automatically generate one inspection lot which
contains details of the purchase like vendor, date of purchase, inspection specifications and
sampling details.

 Listing of Inspection lot

To list Inspection lots, you may use the transaction code QA33. The search criteria can be,

1. Material (s)
2. Inspection lot creation date
3. Inspection dates
4. Plant
5. Inspection type "04"
6. Batch

 Attaching inspection plan and release the inspection lot

The SAP system automatically assigns the inspection plan to the material with task list type '05'
(Goods receipt inspection). If more than one inspection plan exists for the material, we have to

1. Assign the proper inspection plan to the material

 2. Calculate the sample
3. Release the lot for inspection processing.

 Sample calculation

If sampling procedure is attached with the inspection plan / material / characteristics, the SAP
system will automatically calculate the sample otherwise manually go to the lot and calculate the
sample.

 Result recording

Result recording will be done against the inspection lot created at the time of Goods Receipt.

All the characteristics will be shown in the SAP recording screen for input. The SAP system will
give an f4 search for getting code values for attribute inspection.

For quantitative data, based on tolerance limit (upper and lower), the SAP system will propose
the valuation. In both cases, the inspector can accept or reject the proposal (Manually).

 Usage Decision

When we make the usage decision, you decide whether to accept or reject the goods in the
inspection lot based on the results of the inspection. Once you have made the usage decision, the
inspection is completed.

 Stock posting

In Final inspection after production, inventory management is in place at the time of usage
decision, and we can transfer the Quality stock into relevant stock categories like,

1. Unrestricted usage
2. Blocked
3. Scrap
4. Different material
5. Sample
6. Return to vendor

In this SAP QM tutorial, you will learn-

 How to create and confirm Production Order

 How to do Result Recording
 How to do usage decision
How to create and confirm Production Order

In this step, we will create and confirm production order which will trigger automatic goods
receipt and hence inspection lot would be generated.

Step 1) From SAP easy access menu, open Transaction code CO01, and enter the following
details.

1. Enter Material Code for which you want to create production order.

2. Enter your production plant code.

3. Enter production order type.

After filling in all the fields, click or press Enter to go to the next SAP screen.

Step 2) In this SAP screen, we will create the production order.

1. Enter the production order quantity.

2. Select "current date" from drop down box and press enter from the keyboard.

3. Press "Release" button from top to release the order.

4. Press "Goods Receipt" tab to check if the quality inspection is activated or not.
If it is activated, you will see "quality inspection" stock will be populated against stock type in
next step.

Step 3) In this SAP screen, we will check quality inspection flag in the production Order.

1. You can see stock type as "quality inspection" which means after confirmation and goods
receipt of production order, inspection lot would be triggered, and the stock will hit quality
inspection stock.
After saving the screen by clicking save button, Production order will be created.

Step 4) From SAP Easy access menu, open Transaction code CO11N.

Here, we will confirm and post goods receipt against production order.

Enter below details

1. Enter the production order number created in the previous step. After entering order number,
all details would be populated automatically.

2. Press "Goods Movement" tab to move to next screen, where we will post goods receipt and
goods issue of components.
Step 5) In this SAP screen,

1. You can see Goods receipt would be posted for material S-1003 for 20 EA, which would trigger
inspection lot.

Click save button to Save the Order.

After posting confirmation and Goods receipt against production order in SAP system, the next
step is the quality result recording.

How to do Result Recording in SAP System

Step 1) From SAP Easy access menu, open Transaction code QA32.

Here, we will inspect the material and record the results against inspection specification.
 1. Enter Plant Code in SAP screen.

2. Enter inspection lot origin as "04" which is standard SAP inspection type used for raw material
inspection.

3. Press Execute to display the list of inspection lot.

Step 2) In this SAP screen,

1. You can see the inspection lot generated in earlier steps along with material

2. Check the SAP system status as REL CALC SPRQ. This status is a confirmation for the activities
like,

 Inspection plan is copied in inspection lot

 Sample size calculated and stock posting required from quality stock to unrestricted or any
other stock category.

3. Press "Results" button and move to next SAP screen to do results recording.

Step 3) In this SAP screen, you will see the result of inspection lots

1. You can see the short text of the Master Inspection characteristics along with specifications like
length, surface, visual, etc.
 2. You can see a sample size of 5 calculated automatically by the system if sampling procedure is
assigned in the inspection plan.

3. Enter your actual results manually against the inspection specifications.

Press save button to save the inspection results.

How to do usage decision

Step 1) From SAP Easy access screen open same Transaction QA32 with which we have done
results recording in the previous step.

Here, we will do usage decision against inspection lot. The inspection lot is either accepted or
rejected if accepted it will be moved from the quality inspection to stock posting.

1. Enter Plant Code.

2. Enter inspection lot origin as "04" which is a standard SAP inspection type used for a final
inspection after production.

3. Press execute button to display the list of inspection lot along with lot quantity.
Step 2) In this SAP screen,

1. Press usage decision button to move to next screen

Step 3) In this SAP screen,

1. Select UD code as "A" for acceptance of the lot and you can see the quality score as "100" based
on Usage Decision code.

2. Select Inspection lot stock TAB to do stock posting in next SAP screen.
Step 4) In this SAP screen, we will do stock posting from quality stock to any other stock
category.

1. We can move the quality stock of 20 to unrestricted stock (ready for use stock) if the quality
results are within expected specifications, which hits movement type 321 in the background.
(Movement Type 321 indicates the movement of quality stock to unrestricted stock).
Press save button to save the usage decision.

Thus, the stock movement from quality inspection to the unrestricted stock category, as shown
above, indicates the completion of Inspection after production.

In next tutorial, we will see how to create quality notifications.

Troubleshooting

 Inspection plan must be copied to inspection lot, without which we will not be able to do result
recording and usage decision.
 If inspection plan is created after inspection lot, then inspection lot will get CRTD status. We
need to manually assign inspection plan to change status from created (CRTD) to released (REL).
After Inspection lot is released, then we can perform result recording and usage decision.
 The sampling procedure must be assigned in the inspection plan to do any result recording and
usage decision in a case where manually you need to calculate the sample in the inspection lot.
Quality Notification in SAP QM
SAP QM Quality Notification contains functions for capturing and processing different types of
problems or defects which are identified during inspection (for example, defects resulting from
poor-quality goods).

 SAP QM Quality notifications are utilized to

analyze the recorded defects and perform
root cause analysis of these problems.

In particular, the SAP QM notifications can help you to process internal and external problems
such as:

 External Complaints filed by customers

This is standard SAP quality notification type Q1 that deals with the problem associated with
quality of goods delivered to the customer. This is used to record customer complaint and take
action against the problem reported by the customer.

 External Complaints against vendors

This is standard SAP QM quality notification type Q2 that deals with the problem associated
with quality of goods delivered by the vendor. This is used to record a complaint against vendor
and take action against the problem identified during an incoming quality inspection of materials.

 Company-internal problems

This is standard SAP QM quality notification type Q3 that deals with the problem associated
with quality of goods which is originated inside the company. This is used to record internal
problems, which are identified during in-process quality inspections in the shop floor.

The SAP QM quality notifications contain various features and functions.

In general, SAP quality notification can be used to:

 Elaborate a problem and identify the affected reference objects (for example, material, vendor,
manufacturer, and customer)
 Record and store the names of all personnel (partners) who are directly associated with the
defect.
 Define processing specifications for the SAP QM quality notification (for example, mentioning a
time range within which the defect should be fixed and allocating a priority to the notification)
 Capture individual defect items pertaining to the problem and analyze the root causes of the
defect.
 Mention the corrective actions to be taken (for example, tasks that are executed immediately or
corrective activities that are executed after a deep analysis of the defects)
  Track the implementation of corrective actions through status management features of
notification. It has a various status such as release, put in process and completed.
 Capture all activities and tasks that have been carried out for the problem rectification.
 Document the nonconformity costs incurred during analysis and resolving a problem.
 Various types of reports pertaining to the problem can be printed, faxed and exported.

In this SAP QM tutorial, you will learn-

 How to record defects and create quality notification

 How to release & complete notification

How to record defects and create quality notification

In this step, we will record the defects when quality results are out of tolerance limits after doing
the analysis in SAP sytem.

Step 1) From SAP Easy access menu, open Transaction code QA32, and enter the following
details.

1. Select the inspection lot in which results are recorded and have SAP system status as "RREC."

2. Press "Defects" button from the top of the SAP screen.

After pressing defects button, we will move to the next SAP screen.

Step 2) In this SAP screen,

1. Select the code group "Length" and Code "Too Long" which is the defect we have found after
doing the analysis.
Step 3) In this SAP screen,

1. You can see the material code and inspection lot against which we have created the defects.

2. You can see the defect code length which is "too long."

3. Press "Notification Button" on top to create a quality notification.

You will get the message as "quality notification created".

How to release & complete notification

Step 1) From SAP Easy access screen open Transaction QM02.

Here, we will release and record the tasks & activities to complete the quality notification.

1. Enter quality notification number which we have created in the previous step.

Press Enter button from the keyboard to move to the next SAP screen.

Step 2) In this SAP screen,

1. You can see the Purchase order number against which we have received the defective goods.

2. You can see the inspection lot which is linked with the purchase order number.

3. Press "Items" Tab to move to the next SAP screen.

Step 3) In this SAP screen,

1. You can see the defect code as "too long" which we have entered in previous steps.

2. Press release button to release the notification.

3. Press "causes" button to define the cause of the problem and move to next SAP sub screen.

Step 4) In this SAP screen, we need to mention the cause of the identified defect.

1. Here, select code group "QM" for the cause which means it is a design fault.

These code groups are configured based upon the business requirements.

2. Press "Tasks" button to move to the next SAP sub screen.

Step 5) In this SAP screen, we need to mention the tasks to be performed after identification of a
defect.

1. Here, select code group "QM- G2" for the tasks, which means rework needs to be done. These
code groups are configured based upon the business requirements.

2. Press "Activities" tab to move to the next SAP sub screen.

Step 6) In this SAP screen, we need to mention the activities to be performed after identification
of a defect.

1. Here, select code group "QM- G2" for the activities which means a special complaint to be filed
against the vendor. These code groups are configured based upon the business requirements.

2. Press "complete" button to complete the notification process.

Troubleshooting

 Inspection plan must be copied to inspection lot, without which we will not be able to do result
recording and usage decision.
 If inspection plan is created after inspection lot, then inspection lot will get CRTD status. And we
need to manually assign inspection plan to change status from created (CRTD) to released (REL)
in SAP system. After Inspection lot is released then only, we can perform result recording and
usage decision.
 The sampling procedure must be assigned in the inspection plan to do any result recording and
usage decision or else manually we need to calculate the sample in the inspection lot.
 Code groups and codes need to be configured which depends on the business needs to process
quality notifications.