1. PO is created with one currency.

Whether invoice can be posted in the other

currency?

Yes It can be created. We have to change the currency in MIRO before entering the
PO number.

2. What is the difference between accrual key and account key?

Accrual key is mainly used for Rebates.

In pricing procedure , we use accrual key ERB AND ERU .which is for discounts

what is the diff b/w a/c key and accrual key

a/C key are used for posting the proper G/L accounts .

where as accrual keys are used for the Rebate settlement.

( Account Key in the pricing procedure is generally used for the Freight and Rebates
related conditions which will have the transaction event key and will store the
Current Purchasing documents value.

Accruals Key will store the accumulated values of the respective conditions. The
buyer can see the amount spent on the freights over a period of time. )

3. Can scaling be created in PO?

No. Since the PO is always time independent, We cannot create scaling’s in PO.

4. Whether PR is mandatory for PO, If NO can we configure it as mandatory.

PO is not mandatory. We can create PO with or with out reference to PR. If we need,
we can configure PR as mandatory through functional authorizations.

(Please in tcode OMET create an object say ABC.

Now check that u have given the field selection key NB or what ever the purchase
order type you are using and want user to create a PR before the PO.

Then tick for display condition and enter condition and ref to PR also tick for tick for
Reference to reference purchase order

then goto SU01 give user id

now in parameter id add EFB and give value as the ABC.

 Now try creating a PO, system would not allow to.)

5. There are two plants in Chennai and Bangalore, the material A is available in both
the plants. In Plant A, It should be valuated and in Plant B it should be non
valuated. How will you do this setting.

For Material type and valuation area combination, we can configure whether
Valuation is activated or not.

6. Two step invoice verification and three step invoice verification.

PO – INV – Two step verification.

PO-GR_IR – Three step verification

7. How will you manage returns?

122 movement type to send the goods to vendor.

Credit memo for return of the Accounting document.
8. How will you manage un planned delivery costs.

9. What is valuation class?

Valuation class is used to determine the GL account for the specific material.
Material type is linked to Valuation classes through Account category reference.

10. What is valuation grouping code?

Valuation grouping code is used to determine the GL account for the specific plant.
If different valuation areas want to affect the same accounting entries, We can group
the valuation areas with the with the Valuation Grouping Code.

11. How will you change the valuated material to non valuated material?

By changing the material type. We can use the T code MMAM.

12. Can output messages be configured for PR?

No. Since the PR is the internal document, We cannot configure output messages.

13. What are the pre requisite for Account determination?

Account determination only possible for stock materials.

Valuation grouping code should set, If we want to group the valuation area.
14. What are the different types release strategies?

With Classification and Without Classification. For PR, Item and Header level release is
possible.

15. How will you configure the workflow for release strategy.

16. How will you receive the materials in blocked stock.

Have stock type to Blocked stock during GR.

17. How will you manage the subsequent adjustment for sub contracts in SAP.

121Movement type is used for Subsequent adjustment for subcontracting

This movement type cannot be entered manually.

With a subsequent adjustment for a subcontract order it is possible to correct the

consumption of components. In this case, the material produced by the supplier is
credited with the excess consumption / under-consumption. For this reason, if there is a
subsequent adjustment, an item is generated for the produced material using
movement movement type 121.

Movement type 121 does not have a reversal movement type.

18. Where will you configure number ranges for PO?

In document type configuration.

19. What is the difference between step and counter in pricing procedure?

Normally we will have step numbers as 10, 20,30 like that. If we want to have step
numbers 1,2,3 like that and we will also use the counter.

May be in future if nay condition need to be added in between two conditions, we

can control with counter. In the case of Step, no counter is needed.

20. How will you manage the repair business process and which standard process will
be suitable?

Through Sub contract process.

21. Inventory stock reports tcode

MB51
 MB52
MB53
MMBE
MB5T

22. Without material, Can be BOM created?

No.

23. What is the transaction key KBS?

Account assigned for PO. (Consumable Pos)

24. What is the use of movement type 411?

Transfer the special stock to own stock.

25. What is the account modifier and where will it be used?

Account modifier is used to subdivide the movement type(logical grouping of

Transactions) and differentiate account determination. It will be only used for Offset
accounts (PRB, GBB and KON)

26. What is the triggering points for the idocs?

We are triggering through output messages.

27. Say some issues faced in idocs

PO will not be created if delivery date is Past.

If the Idoc is coming from OEM with Serial number, If wrong serial number coming,
Idoc will sit in error message.

If any field come as blank.

If PO change idoc is flowing from one system (DV2) to another system(DV3). If PO

deleted already (Dv3)

If idoc not fully processed.

28. What are the tcodes you have used for output determination

NACE
VV21 – Create condition records for output type
 NAST – Table

29. Sub contracting accounting entries

if Material has Price Control as "V" (MAP)

(BSX) Stock A/c of Assembly - Dr

(BSV) Change in Subcon Stock - Cr

(FRL) Subcontracting Charges - Dr

(WRX) GR/IR Clearing A/c - Cr

(BSX) Stock A/c of Components - Cr

(GBB-VBO) Consumption A/c of Components - Dr

If Material has Price Control as "S" (Std. Price)

If Material is having Price Control as "S" then Price Difference A/c will also in picture.

This depends on configuration; SPRO > MM > Inventory Management and Physical
Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt

Price Differences for Subcontract Orders at Goods Receipt

In this step, you configure for each valuation area whether price differences are generated
for a Subcontract order at the time of a goods receipt if the manufactured material is
managed at standard price and the standard price varies from the receipt value (externally
performed service + value of components + delivery costs).

30. Accounting entry for normal GR and IR

GR

Stock Account – Debit (BSX +)

GR IR Account – Credit (WRX -)

IR

GR IR Account – Debit (WRX +)

Vendor Account – Credit (KBS -)

31. Accounting entry with price differences

If you given standard price in material master but you purchase same material with
different price, that price difference will be posted in price difference account.

32. Can two different currencies maintained for a same vendor?

Yes, through vendor subranges, We can maintain Purchasing and Partner roles for
different vendor subranges.

33. What about price control in split valuation?

When assigning valuation category, only V is possible. For Valuation type, we can
have S or V.

34. Can we change the material type for a material

Yes through MMAM tcode.

35. What are the levels of Batch management and can we change the Batch
management levels

If you say Batch at client level -

Batch X1 is unique at client level, Same Batch X1 cannot be created again.

Batch number can only be used for one material across the client.

If you say Batch at Material Level -

Batch X1 for Material M1, and same Batch X1 can be assigned to Material M2 and
many. Batch numbers can be used for multiple materials, however, batch
specification and analytical results are the same for the batch (one Batch Master
Record).

If the Batch level flag is set at the Client level, it allows for a batch number to be used
with only one material throughout the entire SAP client. This is troublesome with
products which are produced in bulk and then packaged into smaller size containers
for sale. Due to the limitation of having only one batch number per material, when
the product is packaged, new batch numbers have to be assigned to the finished
packages, even though the same bulk material is being used inside the package.
Because of this work-a rounds have been created and business processes adjusted to
accommodate this restriction.
36. What materials should be maintained at standard price and what materials should
be maintained at Moving average price

SAP suggests

In house production - Standard Price

Procuring materials – MVP

37. In what sequence price for PO will be taken

Contract

PIR

Condition Records

Old PO

38. What will happen if info update indicator is checked in PO? Whether price will be
updated in info record?

39. Source Determination Sequence

Quota arrangement
The system first determines whether a quota arrangement within whose validity
period the delivery date in the requisition falls exists for the material.

If a quota arrangement exists, the system determines the vendor from whom the
material is to be procured according to the quotas assigned to the vendors and then
suggests the source.

If no source can be determined this way, the system checks the source list.
Source list
 The system determines whether an entry in the source list within whose validity
period the delivery date of the requisition falls exists for the material. The source in
question may be a fixed vendor or an outline agreement (contract or scheduling
agreement).

If the source list contains a unique source, the requisition is assigned to that
source.

If several sources are found, a box appears for selection purposes.

If no source could be determined, the existing outline agreements and info records
are examined.
Outline agreement and info record
The system searches for contracts, scheduling agreements, and info records for
the material and suggests these.

(If info records with more than one purchasing organization exist, all info records of
the purchasing organization(s) that is/are responsible for procurement for the
requesting plant are also suggested.)

If several outline agreements and perhaps info records exist, all possible sources are
offered for selection in a box.

When an info record is found, the following two additional checks are carried out:

Check of supply region

The system checks whether a certain supply region is specified in the associated
vendor master record. If so, the system checks whether the plant in the purchase
requisition belongs to this region. If not, the info record is discarded as a possible
source.
Check of regular vendor
The system checks whether a regular vendor has been specified for the material
(that is, a vendor valid for the entire corporate group, or client). If this is the case,
and it has been specified in Customizing that the regular vendor takes precedence,
the info record for this vendor will be preferred as the source.

Basic message types

PORDCR1 - Purchase Order

ORDERS - Sales Order
WBUPON - Billing Document
INVOIC - Invoice
MATMAS - Material master
ARTMAS - Article master
MATFET - Material fetch
DESADV or DELVRY01 - Delivery
SHPCON- Shipment confirmation

Basic Tables

EBAN - Purchase Requisition

EBKN - Purchase Requisition Account assignment
EINA - PIR General data
EINE- PIR Porg data
EKKO - PO Header
EKPO - PO Item
LFA1 - Vendor table
T001W - plant
T001 - Company code
ADRC - Address table
MCHA - batches
MCHB - Batche Stocks
MARA - Material general data
MARD - Storage location data
MVKE - Material Sales
MBEW -Material Retail
MARC - Material Plant data
MAST - BOM
MSEG - Material document header
MKPF - Material Document item
VBRK - Billing Header
VBRP - Billing item
RBKP - Invoice
LIKP - Delivery Heade

Transaction keys
BSX - Stock account
WRX - GRIR account
GBB - consumption
PRD _ price difference
KBS - Account assigned, Vendor account
KON - Consignment Payable
FRL - External service
BSV - Inventory changes
DIF - Small differences
UMB - Revenue account
KDM - Exchange rate difference
FR1 - Fright clearing account

GBB AUF - Goods receipt for orders

GBB VBR - Goods issue for cost centre
GBB VAY - COSG
GBB VKA - Sales order account assignment
GBB VKP - Production
BSA - Initial stock entry
INV - Loss ot gain

Pre requisites Automatic PO creation during GR

1) In Vendor master record -- purchasing view -- check the automatic PO option

2) In material master record -- Purchasing view -- check the automatic PO option ,

maintain a Purchaing Group

3) Now goto IMG --> Materials Management --> Inventory Management and Physical
Inventory --> Goods Receipt --> Create Purchase Order Automatically --> Check the
automatic PO option against 101 MVT

4) Go to SPRO - Mat.Mgmt - Purchasing - Define Default values for Document Types -

There for MB01 check whether you have

maitained document type NB.

5)You have to maintain a Standard Purchasing Org.

Goto IMG -->Enterprise Structure >Assignment>Materials Management->Assign

standard purchasing organization to plant

6)Create a PIR for that standard P.ord , Pgroup maintained in MMR ( make sure that
you have only created one PIR for that material , Vendor , Plant , Porg , Pgroup
combination)

7) Now create the GR following the exact steps what you do generally when you
create a GR without PO in MB01.

pre-requisites for implementing ERS:

 In the vendor master data, the indicators for evaluated receipt settlement must be
activated.

 A Confirmation is expected for the purchase order.

 GR – IR Indicators and ERS Indicators should be activated in the PO.

 Tax code must be maintained in the PO item.

Pre Requisites for Automatic PO

1) Material Master purchasing view tick automatic PO check box

2) Vendor Master purchasing view tick automatic PO check box.

3) Maintain Source list for Vendor & Material.(ME01)

4) Maintain Purchase Info Record.(ME11)

5) Create a Purchase Requisition.(ME51)

6) Use T.Code: ME59 & execute for PR for vendor, you will be able to create automatic PO.

Invoice Transactions

Frequently used transactions:

MIRO - Enter Invoice

MIR7 - Park Invoice

MIR4 - Display Invoice Document

MR8M - Cancel Invoice Document

MRBR - Release Blocked Invoices

MIR6 - Invoice Overview Automatic Settlement

MRRL - Evaluated Receipt Settlement (ERS)

Stock Transport Order movement types