Quality Based Invoice

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2011 SAP AG 1

Quality Based Invoice

Applies to:SAP 4.6 C and later releases. For more information, visit theManufacturing homepage.

Summary

This article discusses the business process of paying the vendor based on the quality of the goods delivered.For instance, after the milk is been delivered from vendor it is be under quality check and based on the fatcontent of the milk the price will be calculated for vendor payment.

Author: Kaushik Choudhury

Company: Tata Consultancy Services

Created on: 15th

April, 2011

Author Bio

SAP Functional Consultant working primarily in production planning & control (PPC) & qualitymanagement (QM) area predominately for FMCG business. Worked on diverse flavors of projectsviz. Implementation, Production Support & Enhancements, Upgrade etc. Previously, worked in

production planning & shop floor control in Aerospace sector.

Specialties: SCM - APO (SNP), SAP Production Planning, and Quality Management
https://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttps://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttps://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttps://www.sdn.sap.com/irj/sdn/bpx-manufacturing


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Table of Contents

Quality Based Invoice Overview ...................................................................................................................... 3Baseline Configuration and Master Data ............................................................................................................ 3End to End Template Scenario of Quality Based Invoice ................................................................................... 6

Purchasing ...................................................................................................................................................... 6Quality Inspection ............................................................................................................................................ 7

Related Content .................................................................................................................................................. 9Disclaimer and Liability Notice .......................................................................................................................... 10


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2011 SAP AG 3

Quality Based Invoice Overview

In real life often we come across business scenario where vendor has shipped the product which is not centpercent inline with the expected quality but at the same time it can be used and there is no need to send itback or reject it completely . In such cases obviously customer will revaluate the sub-standard product pricebased on the actual attribute of the product received and pay to vendor accordingly. Quality based invoicingconcept helps to practice this in SAP.

Baseline Configuration and Master Data

Pre-requisite: QM in procurement is been implemented .Stock will only be posted from QI to unrestrictedafter the are result recorded and usage decision.

Material master

In the material master maintain the Batch-specific material unit of measure (proportion/prod. unit)

Purchasing info record: In the Purchasing info record maintain the target price of the characteristics forwhich planned value is maintained in the material master. In the screen shot below it is maintained


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2011 SAP AG 4

25 EUR per 1000 %S. Please note that %S is custom unit maintained in SAP to measure and record thevalue of the product attribute.

Custom Function Module: Bespoke function module to call a standard BAPI, BAPI_PO_CHANGE, to amendthe PO line item .It will update the PO pricing based on the result recorded. This function module will beassigned to the follow up action.

Follow Up Action: Maintain the Follow up action in the configuration (T code: OQV1) and assign the customfunction module to it.

If the indicator Sync Updt checkbox is set then the dialog transaction and follow-up action are updatedsynchronously.

Selection Set: In the selection set attach the follow up action with the UD code. This is will trigger theprocessing of the function module (assigned to the follow up action) whenever UD code is taken during theusage decision of the inspection lot.


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Appendix:

Select the check box Block invoice in the configuration of Control key for QM in procurement to preventautomatic payment of the invoice when the UD is not been taken for the inspection lot or lot is rejected. Alsoselect the message mode to Defect.

Assign the QM control key configured (in earlier step) to the material master , QM view. This will ensure thatunless UD is been taken for the lot and it is not rejected invoice cannot be processed.


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2011 SAP AG 6

End to End Template Scenario of Quality Based Invoice

Purchasing

A purchase order is raised to procure the material from vendor. In real life generally the material is plannedthrough MRP engine or APO and purchase requisitions are converted to Purchase order.

Stock is received against the Purchase order.


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2011 SAP AG 7

Quality Inspection

Goods receipt will trigger the inspection lot and place the stock in stock type quality (Inspection type -01should be active for the material to perform quality based invoice)

The quality of the stock is checked and then result is recorded for the inspection lot .In the result recordingthe attributes which decides the quality of the product and which further evaluates the price of the stock isrecoded in SAP .


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2011 SAP AG 8

Usage decision is been taken as per the results recorded for the stock.

Based on the UD code the follow up action is triggered (based on the configuration done in the selected setas explained earlier) on the save of usage decision.

Follow up action calls the function module which recalculates the price as per the result recorded for the

Inspection lot . Recalculated price update the price in the purchase order. This is the way the purchase orderprice is recalculated based on the result recorded/quality of the stock received from the vendor.


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Related Content

Batch Specific UoM

Follow Up Action after UD

For more information, visit theManufacturing homepage.
http://help.sap.com/saphelp_erp60_sp/helpdata/en/25/283d674f7811d18a150000e816ae6e/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/25/283d674f7811d18a150000e816ae6e/frameset.htmhttp://help.sap.com/saphelp_46c/helpdata/en/18/438976449011d189420000e829fbbd/frameset.htmhttp://help.sap.com/saphelp_46c/helpdata/en/18/438976449011d189420000e829fbbd/frameset.htmhttps://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttps://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttps://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttps://www.sdn.sap.com/irj/sdn/bpx-manufacturinghttp://help.sap.com/saphelp_46c/helpdata/en/18/438976449011d189420000e829fbbd/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/25/283d674f7811d18a150000e816ae6e/frameset.htm


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Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is notsupported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.

SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,and anyone using these methods does so at his/her own risk.

SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article orcode sample, including any liability resulting from incompatibility between the content within this document and the materials and

services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of thisdocument.

Quality Based Invoice

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