SCM PROJECT - SCF181

NAME: KOUSHIK SAMINENI

STUDENT ID: 20181062
1. Organization structure

KPS TELECOM
(4500)

KPS MONTREAL
PLANT (4600)

Storage Storage Storage

Location for Location for Location for
Monitor (D581) Keyboard & power Cable
Mouse (D582) (D583)

KPS MONTREAL
Warehouse
Purchase Org
(K58)
(PT58)

BIN (BD-3158)

KPS MONTREAL
Purchase Group
(E58)
BIN (BD-3258)

KPS MONTREAL
Sales Org
BIN (BD-3358)
(ST58)
2. Material Master Record
2.1.Monitor – MK-3158
Material type – Trading goods
Industry Sector – Mechanical Engineering
Unit - EA
Material group – 00207
Valuation class – 3100
Moving Average Price - $ 80.00

2.2.Keyboard – MK-3258
Material type – Trading goods
Industry Sector – Mechanical Engineering
Unit - EA
Material group – 00204
Valuation class – 3100
Moving Average Price - $ 20.00

2.3.Mouse – MK-3358
Material type – Trading goods
Industry Sector – Mechanical Engineering
Unit - EA
Material group – 002
Valuation class – 3100
Moving Average Price - $ 10.00

2.4.Power cable- MK-3458

Material type – Trading goods
Industry Sector – Mechanical Engineering
Unit - EA
Material group – 00212
Valuation class – 3100
 Moving Average Price - $ 15.00

3. Vendor Master Record

3.1.Vendor 1: VT-3158 – Computer Monitor Accessories (For Monitor)

Company code: 4500

Purchase organization: PT58
Account Group: ZTMM
Reconciliation Account: 160000
Cash management group: A1
Order Currency: CAD
Payment terms: 0002 - Within 14 days 3% cash discount
- Within 30days 2% cash discount
- 45 days due net

3.2.Vendor 2: VT-3258– GE Electrical ( For keyboard)

Company code: 4500

Purchase organization: PT58
Account Group: ZTMM
Reconciliation Account: 160000
Cash management group: A1
Order Currency: CAD
Payment terms: 0002 - Within 14 days 3% cash discount
- Within 30days 2% cash discount
- 45 days due net
3.3.Vendor 3: VT-3358 – Nick Keyboard Company ( For keyboard)

Company code: 4500

Purchase organization: PT58
Account Group: ZTMM
Reconciliation Account: 160000
Cash management group: A1
Order Currency: CAD
Payment terms: 0002 - Within 14 days 3% cash discount
- Within 30days 2% cash discount
- 45 days due net
3.4.Vendor 4: VT-3458 – Canada Computer Company ( For Mouse)

Company code: 4500

Purchase organization: PT58
Account Group: ZTMM
Reconciliation Account: 160000
Cash management group: A1
Order Currency: CAD
 Payment terms: 0002 - Within 14 days 3% cash discount
- Within 30days 2% cash discount
- 45 days due net
3.5.Vendor 5: VT-3558 – ST Stationeries, Montreal ( For Blanket PO)

Company code: 4500

Purchase organization: PT58
Account Group: ZTMM
Reconciliation Account: 160000
Cash management group: A1
Order Currency: CAD
Payment terms: 0002 - Within 14 days 3% cash discount
- Within 30days 2% cash discount
- 45 days due net
3.6.Vendor 6: VT-3658 – Poulin Electrical, Montreal ( For Electrical Service)

Company code: 4500

Purchase organization: PT58
Account Group: ZTMM
Reconciliation Account: 160000
Cash management group: A1
Order Currency: CAD
Payment terms: 0002 - Within 14 days 3% cash discount
- Within 30days 2% cash discount
- 45 days due net

4. Purchase Info Record

4.1.Info Record created for Monitor (MK-3158) with Computer Monitor Accessories (VT-
3158) & Purchase organization PT58.
Info Record Number: 5300009073

4.2.Info Record created for Keyboard (MK-3258) with Computer Monitor Accessories (VT-
3358) & Purchase organization PT58.
Info Record Number: 5300009074

5. Procurement and Inventory Management

5.1. Request for Quotation (RFQ)

SAP R/3 menu Logistics  Material Management Purchasing

RFQ/quotation Request for Quotation  Create
Transaction code ME41

Company needs to buy 100 Keyboards.

There are two suppliers as given below for Keyboard. Compare their prices and
prepare quotations for best supplier.

GE Electrical having office at Montreal supplies at $ 30.00 with discount 15%.

Nick Keyboard Company of Toronto supplies at $ 20.00 with discount 5%.
 RFQ1: 6000002911
RFQ2: 6000002912
5.1.1. Maintain Quotation

SAP R/3 menu Logistics  Materials Management  Purchasing 

RFQ/quotation  Quotation  Maintain
Transaction code ME47
5.1.2. Price Comparison:

SAP R/3 menu Logistics  Materials Management  Purchasing 

RFQ/Quotation  Quotation  Price Comparison
Transaction code ME49
5.2. Create Purchase requisition and then purchase order for ordering 500 pieces of
Monitor from Computer Monitor Accessories Company and receive it in stock.

5.2.1. Creating Purchase Requisition :

SAP R/3 menu Logistics  Materials Management  Purchasing 

Purchase Requisition  Create
Transaction code ME51N

Purchase Requisition Created (PR No: 10031378)

5.2.2. Creating Purchase Order :

SAP R/3 menu Logistics  Materials Management  Purchasing 

Purchase Order  CreateVendor/Supplying Plant
Known

Transaction code ME21N

Purchase order Created with reference to Purchase Requisition 10031378.

Purchase order created. (PO No: 4600000637)
5.2.3. Goods Receipt for Purchase Order:
GR Material Document Created. (Material document: 5000011003)
5.3.Create Purchase requisition and then purchase order for ordering 200 pieces of
Power Cable from GE Electrical, Montreal and receive it in stock

5.3.1. Creating Purchase Requisition :

SAP R/3 menu Logistics  Materials Management  Purchasing 

Purchase Requisition  Create

Transaction code ME51N

 Purchase Requisition Created (PR No: 10031379)
5.3.2. Creating Purchase Order :

SAP R/3 menu Logistics  Materials Management  Purchasing 

Purchase Order  CreateVendor/Supplying Plant
Known

Transaction code ME21N

Purchase order Created with reference to Purchase Requisition 10031379.

Purchase order created. (PO No: 4600000511)

5.3.3. Goods Receipt for Purchase Order:
GR Material Document Created. (Material document: 5000011004)

5.4.Create Purchase Order to buy 300 piece of mouse from Canada Computer
Company and receive it in block stock. After checking transfer 200 pieces of it to
regular use stock. Show stock balances.

5.4.1. Creating Purchase Order :

SAP R/3 menu Logistics  Materials Management  Purchasing 

Purchase Order  CreateVendor/Supplying Plant
Known
 Transaction code ME21N

Purchase Order created for 300pcs of Mouse from vendor VT-3458.

PO No: 4600000511
5.4.2. Goods Receipt for Purchase Order:
GR Material Document Created. (Material document: 5000011005)
300pcs of Mouse Received in GR blocked stock.
200pcs of Mouse Release from GR blocked stock. ( Material Doc No: 5000011005)

5.4.3. Stock Overview:

T.Code: MMBE

5.5.Create Purchase Order to buy 300 piece of keyboard from Nick Keyboard Company
and receive it. It was found that 10 pcs of Keyboard are defective so return it to
vendor. Show stock balances.

5.5.1. Creating Purchase Order :

 SAP R/3 menu Logistics  Materials Management  Purchasing 
Purchase Order  CreateVendor/Supplying Plant
Known

Transaction code ME21N

Purchase Order created for 300pcs of Keyboard from vendor VT-3358.

PO No: 4600000636

5.5.2. Goods Receipt for Purchase Order:

Goods Receipt done for 300pcs of keyboards against Purchase order 4600000636.
GR Material Document Created. (Material document: 5000011005)
10pcs of defective Keyboards returned to Vendor. (Material Doc No: 5000011006)

5.6.Create blanket PO for office supplies from vendor ST Stationeries, Montreal.

Vendor full contract can be more than $6000.000 for whole season with start date
today and finishing Dec 31, 2018
5.6.1. Creating Purchase Order :

SAP R/3 menu Logistics  Materials Management  Purchasing 

Purchase Order  CreateVendor/Supplying Plant
Known

Transaction code ME21N

Order Type: Frame work order

Purchase Order created for Office supplies from vendor VT-3558.

PO No: 4600000516
5.6.2. Invoice Preparation
This vendor supplied office materials of $2000.00 so prepare invoice to pay them.

Invoice No: 5105611430

5.7.Service purchase Order:

One electrical company named ‘Poulin Electrical’ has been given the job of
replacing the fluorescent tubes in your office building. You now receive a list of the
actual services performed on each floor of the building. After completion of the
maintenance work, you receive the invoice for replacing fluorescent tubes in main
plant of cost centre 7000. Create service order and pay to this company.
The service provider has carried out the following work:
 Replace old fluorescent tubes 100 pieces at 10.00 CAD
5.7.1. Creating service Master

SAP R/3 Menu Logistics  Materials Management  Service Master 

Service  Service Master
Transaction code AC03

Service master record is created for replacement of fluorescent tubes.

Service Master No: T-LM358

5.7.2. Creating service Purchase Order

SAP R/3 menu Logistics  Materials Management  Purchasing 
Purchase Order  CreateVendor/Supplying Plant
Known

Transaction code ME21N

Order Type: Service PO

Service PO is created for replacement of fluorescent tubes wit service Number

T-LM358.
Service PO No.4500029523

5.7.3. Creation and Acceptance of Service Entry Sheet

SAP R/3 Menu Logistics  Materials Management  Service Entry Sheet
 Maintain
Transaction code ML81N

On the Service Entry Sheet screen, make the following entries.

Click on Other Purchase Orders icon or Shift + F5, system will popup new screen.
Service Entry sheet is created for Service Purchase order 4500029523.

Service entry sheet Number: 10001398.

To accept the service click on Accept icon or Control + F1 (Green flag icon).

Service Entry sheet saved and acceptance document 5000010883Posted.

5.7.4. Invoice Verification

SAP R/3 menu Logistics  Materials Management  Logistics invoice

Verification  Document Entry  Enter Invoice
 Transaction code MIRO

Invoice posted for service purchase order 4500029523.

Invoice document no: 5105611432

6. Inventory Management

6.1.Transfer 100 pcs of Monitor from storage location DXX1 to DXX2. Show stock
balances.
T.Code: MIGO
100pcs of Monitor (MK-3158) is transferred from D581 to D582.
Material Document No: 490001748.
6.2.Requirement came from Admin office of cost centre 1000 to send 10 keyboards so
issue it to office and show stock balance. Display reservation.

T.Code: MB21

Reservation is created for 10pcs of keyboard for cost centre 1000.

Reservation Number: 105182
Goods issued to cost centre 1000 against Reservation 105182.

6.3.Transfer 20 pcs of Keyboard from unrestricted to quality for inspection. Return it

back after successful inspection.
20pcs of Keyboard (MK-3258) transferred to unrestricted stock after quality inspection.

6.4.Scrap 5 pieces of mouse from unrestricted stock from storage location DXX2 for
cost centre 1000.
5pcs of Mouse (MK-3358) scrapped from storage location D582, Unrestricted stock.
7. Warehouse Management

7.1.Create PO to receive 200 pieces of Power Cables in stock in fixed bin. Confirm
transfer after stock is put away in fixed bin BD-31XX
7.1.1. PO created for 200 pcs Power cable (MK-3458).
PO: 4600000656
 Goods Receipt is done for PO: 4600000656
Material Document No: error

7.1.2. Create transfer order

T.Code: LB12
Transfer order is not created
Transfer Order No.error
7.1.3. Confirm transfer orderT.Code: LT12
7.1.4. Transfer Order is not confirmed

7.2.Receive 100 pieces of Power cable in Quality stock. After quality inspection, transfer
it to unrestricted use stock. Show stock balance.
7.2.1. PO is created for 100pcs of power Cable (MK-3458)
PO: 4600000659
Goods receipt is done for PO 4600000657