Sap MM-configuration-step-by-step-guide

MM – Configuration Documentation

Table of Contents

1 PURPOSE OF THE DOCUMENT 6

2 ENTERPRISE STRUCTURE - DEFINITION 7

2.1 DEFINE VALUATION LEVEL 72.2 DEFINE PLANT 72.3 MAINTAIN STORAGE LOCATION 82.4 MAINTAIN PURCHASING ORGANIZATION 9

3 ENTERPRISE STRUCTURE ASSIGNMENTS 10

3.1 ASSIGN PLANT TO COMPANY CODE 103.2 ASSIGN PURCHASING ORGANIZATION TO COMPANY CODE 103.3 ASSIGN PURCHASING ORGANIZATION TO PLANT 113.4 ASSIGN STANDARD PURCHASING ORGANIZATION TO PLANT 12

4 GENERAL LOGISTICS 13

4.1 ASSIGN FIELDS TO FIELDS SELECTION GROUPS 134.2 MAINTAIN FIELD SELECTION FOR DATA SCREENS 134.3 MAINTAIN COMPANY CODES FOR MATERIALS MANAGEMENT 144.4 DEFINE ATTRIBUTES OF MATERIAL TYPES 154.5 DEFINE NUMBER RANGES FOR EACH MATERIAL TYPES 164.6 DEFINE ATTRIBUTES OF SYSTEM MESSAGES 174.7 DEFINE MATERIAL GROUPS 184.8 DEFINE EXTERNAL MATERIAL GROUPS 184.9 INITIALIZE PERIOD 19

5 MATERIALS MANAGEMENT – CONSUMPTION BASED PLANNING 20

5.1 ACTIVATE MRP FOR MRP AREAS 205.2 DEFINE MRP AREAS 20

6 MATERIALS MANAGEMENT – PURCHASING 21

6.1 DEFINE ATTRIBUTES OF SYSTEM MESSAGES 216.2 DEFINE PURCHASING VALUE KEYS 216.3 ENTRY AIDS FOR ITEMS WITHOUT A MATERIAL MASTER 226.4 CREATE PURCHASING GROUPS 236.5 DEFINE DOCUMENT TYPES (RFQ/QUOTATION) 236.6 DEFINE TEXT TYPES FOR HEADER TEXTS (RFQ/QUOTATIONS) 256.7 DEFINE COPYING RULES FOR HEADER TEXTS (RFQ/QUOTATIONS) 256.8 DEFINE DOCUMENT TYPES (PURCHASE REQUISITIONS)266.9 RELEASE PROCEDURE WITH CLASSIFICATION (PURCHASE REQUISITIONS) 276.10 DEFINE NUMBER RANGES (PURCHASE ORDERS) 326.11 DEFINE DOCUMENT TYPES (PURCHASE ORDERS) 336.12 SET TOLERANCE LIMITS FOR PRICE VARIANCE 356.13 RELEASE PROCEDURE FOR PURCHASE ORDERS 366.14 DEFINE SCREEN LAYOUT AT DOCUMENT LEVEL 396.15 DEFINE TEXT TYPES FOR HEADER TEXTS (PURCHASE ORDERS) 406.16 DEFINE COPYING RULES FOR HEADER TEXTS (PURCHASE ORDER) 416.17 DEFINE TEXT TYPES FOR ITEM TEXTS (PURCHASE ORDERS) 416.18 DEFINE COPYING RULES FOR ITEM TEXTS (PURCHASE ORDER) 426.19 DEFINE DOCUMENT TYPES (CONTRACTS) 436.20 DEFINE SCREEN LAYOUT AT DOCUMENT LEVEL (CONTRACTS) 446.21 DEFINE TEXT TYPES FOR HEADER TEXTS (CONTRACTS) 466.22 DEFINE COPYING RULES FOR HEADER TEXTS (CONTRACTS) 47

6.23 DEFINE TEXT TYPES FOR ITEM TEXTS (CONTRACTS) 476.24 DEFINE COPYING RULES FOR ITEM TEXTS (CONTRACT) 476.25 DEFINE EXTERNAL CONFIRMATION CATEGORIES 496.26 DEFINE INTERNAL CONFIRMATION CATEGORIES 496.27 SET UP CONFIRMATION CONTROL 496.28 DEFINE ACCESS SEQUENCE 506.29 DEFINE CONDITION TYPES 526.30 DEFINE CALCULATION SCHEMA 546.31 DEFINE SCHEMA GROUP 566.32 DEFINE SCHEMA DETERMINATION 576.33 DEFINE TRANSACTION EVENT KEYS586.34 MAINTAIN CONDITION TABLE 606.35 DEFINE GRID FOR QUANTITY VARIANCES 606.36 DEFINE GRID FOR DELIVERY DATE VARIANCE 616.37 DEFINE WEIGHING KEYS 616.38 DEFINE CRITERION (VENDOR EVALUATION) 616.39 DEFINE SCOPE OF LIST (VENDOR EVALUATION) 626.40 MAINTAIN PURCHASING ORGANIZATION DATA 636.41 DEFINE PERMISSIBLE PARTNER ROLES PER ACCOUNT GROUP 656.42 DEFINE PARTNER SCHEMAS (VENDOR MASTER) 656.43 ASSIGN PARTNER SCHEMAS TO ACCOUNT GROUPS 666.44 DEFINE PARTNER SCHEMAS (PURCHASING DOCUMENTS) 676.45 ASSIGN PARTNER SCHEMAS TO DOCUMENT TYPES 68

7 MATERIALS MANAGEMENT – EXTERNAL SERVICES MANAGEMENT 69

7.1 DEFINE SERVICE CATEGORY 697.2 DEFINE NUMBER RANGES 697.3 DEFINE NUMBER RANGE FOR SERVICE ENTRY SHEETS 707.4 DEFINE ATTRIBUTES OF SYSTEM MESSAGES 70

8 MATERIALS MANAGEMENT – INVENTORY MGMT. & PHYSICAL INVENTORY 72

8.1 PLANT PARAMETERS 728.2 DEFINE NUMBER ASSIGNMENT FOR ACCOUNTING DOCUMENTS 728.3 DEFINE NUMBER ASSIGNMENT FOR MATERIAL AND PHYSICAL INVENTORY DOCUMENTS 758.4 DEFINE NUMBER ASSIGNMENT FOR RESERVATIONS 758.5 FIELD SELECTION FOR GOODS MOVEMENT/INITIAL HEADER SCREENS 768.6 FIELD SELECTION FOR MIGO 778.7 FIELD SELECTION PER MOVEMENT TYPE 788.8 SETTINGS FOR TRANSACTIONS AND REFERENCE DOCUMENTS 798.9 CREATE STORAGE LOCATION AUTOMATICALLY 808.10 SET MANUAL ACCOUNT ASSIGNMENT 818.11 DEFINE SCREEN LAYOUT 818.12 MAINTAIN COPY RULES FOR REFERENCE DOCUMENTS 828.13 SET UP DYNAMIC AVAILABILITY CHECK 838.14 GENERATE PHYSICAL INVENTORY DOCUMENTS FOR GOODS MOVEMENTS 858.15 CHECK TOLERANCE LIMITS 868.16 CREATE STORAGE LOCATIONS AUTOMATICALLY 878.17 SET MANUAL ACCOUNT ASSIGNMENT 888.18 DEFINE SCREEN LAYOUT 898.19 MAINTAIN COPY RULES FOR REFERENCE DOCUMENTS 898.20 SET DYNAMIC AVAILABILITY CHECK 908.21 SET “DELIVERY COMPLETED” INDICATOR 918.22 SET EXPIRATION DATE CHECK 928.23 CREATE STORAGE LOCATION AUTOMATICALLY FOR AUTOMATIC MOVEMENTS 92

8.24 SET MANUAL ACCOUNT ASSIGNMENT FOR AUTOMATIC MOVEMENTS 948.25 DEFINE SCREEN LAYOUT FOR AUTOMATIC MOVEMENTS 958.26 GENERATE PHYSICAL INVENTORY DOCUMENTS FOR GOODS MOVEMENTS 958.27 DEFINE DEFAULT VALUES FOR RESERVATIONS 968.28 MAINTAIN COPY RULES FOR REFERENCE DOCUMENTS 978.29 SET DYNAMIC AVAILABILITY CHECK FOR RESERVATIONS 978.30 DEFAULT VALUES FOR PHYSICAL INVENTORY 1008.31 RECORD REASONS FOR GOODS MOVEMENTS 1018.32 COPY, CHANGE MOVEMENT TYPES 101

9 MATERIALS MANAGEMENT – VALUATION AND ACCOUNT ASSIGNMENT 103

9.1 SPLIT VALUATION 1039.2 Configure Split Valuation 103

1 Purpose of the Document

This document captures in detail the steps required to configure the SAP system to meet the business requirements as envisaged in the ITZ Process Definition Documents of Business Blueprint phase. The configuration steps have mappings to the corresponding menu path where the configuration has been done in the IMG (Implementation Guide). The descriptive procedure along with rationale of all configurations is also provided.

The documentation provides visibility to all project teams members on the proposed system settings and changes. This is very important due to the highly integrated nature of SAP. All future changes or updates to the system should be done based on this document and the documentation updated accordingly.

This customisation manual outlines the way, how the Materials Management Module has been configured for ITZ as per the requirement of their business scenarios and should be seen in conjunction with the KDS document.

This document explains the settings done i.e. Configurations done for the present implementation only and not all the nodes available.

Other Nodes are kept as standard (as delivered by SAP)

2 Enterprise Structure - Definition

2.1 Define Valuation Level

Menu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure Definition Logistics general Define Valuation Level

Transaction Code OX14Configuration Description

Here we specify the level at which material stocks are valuated. We have used the Plant level since the application component Production Planning (PP) and Costing are being used.

Depending on the valuation level chosen, accounting data (in particular the valuation price) is maintained for each plant or for each company code in the material master record.

If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.

If material stocks are valuated at plant level, the material stocks for each plant can be managed in different accounts. We can define a separate account determination for each plant.

2.2 Define PlantMenu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure

Definition Logistics general Define, copy, delete, check plantTransaction Code SPROConfiguration Description

As a part of the Logistics Organizational Structure, Plants are defined in SAP. The ‘Plant’ is an operating area or a branch or a location within a company. Each 'Plant' is assigned to a single 'company code'. A 'company code' can have several 'Plants'. In case of ITZ Pvt. Ltd., the various 'Plants' are assigned to a each 'company code'. Configuration of One Plant is depicted here, (for list of all please refer to MM KDS Document)

2.3 Maintain Storage LocationMenu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure

Definition Materials Management Maintain Storage LocationTransaction Code OX09Configuration Description

A storage location is the place where stock is physically kept within a plant. There may be one or more storage locations within a plant.

A storage location has the following attributes:

A storage location has a description and at least one address. It is possible to store material data specific to a storage location. Stocks are managed only on a quantity basis and not on a value

basis at storage location level. Physical inventories are carried out at storage location level.

Configuration of Storage Locations under One Plant is depicted here, (for list of all please refer to MM KDS Document)

2.4 Maintain purchasing organization

Menu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure Definition Materials Management Maintain Purchasing Organization

Transaction Code SPROConfiguration Description

At this node we configure the Purchasing Organization .The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics.In case of ITZ One single Purchase Organization is created as under :

3 Enterprise Structure Assignments

3.1 Assign Plant to Company CodeMenu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure

Assignment Logistics general Assign Plant to Company CodeTransaction Code SPROConfiguration Description

A Plant needs to be assigned to one of the Company Codes, the relation is always one to one i.e. One Plant can be assigned to only one company codeAll the plants can’t be shown here(for complete list refer MM KDS document)

3.2 Assign purchasing organization to company codeMenu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure

Assignment Logistics general Assign purchasing organization to company code


In this node we assign the Purchasing Organization to the company code under which it works.In case of ITZ the Purchasing Organization is Central, so it is not assigned to any Company Code

3.3 Assign purchasing organization to PlantMenu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure

Assignment Logistics general Assign purchasing organization to Plant


In this step we assign purchasing organizations to the plants for which they are responsible.In case of ITZ since it operates with Centralized Purchasing Org. we have assigned the Purchasing Org. to all the plants defined as of now

3.4 Assign standard purchasing organization to plantMenu path Implementation Guide for R/3 Customizing (IMG) Enterprise Structure

Assignment Logistics general Assign standard purchasing organization to plant


If several purchasing organisations procure for a certain plant, we can define one of them as the standard purchasing organization for the transactions "pipeline procurement", "consigmnent" and "stock transfers".

In source determination for stock transfers and consignent, the system automatically utilizes this standard purchasing organization. In the case of goods issues of pipeline materials, the purchasing info records of the standard purchasing organization are read.

In ITZ, we have not defined this Setting as we are using single Purchasing Organisation

4 General Logistics

4.1 Assign Fields to Fields Selection GroupsMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Field Selection Assign Fields to Fields Selection Groups

Transaction Code OMSRConfiguration Description

Assignment of Material Master Fields is required to define whether a field is hidden or displayed, or whether an entry is mandatory or optional in material master maintenance, it is always advisable to work with Standard SAP settings, but for few business requirement some assignments are changed to new field selection groups defined as per reserved name space. in case of ITZ, some of the list of changed entries is as given below:

Field Name Description Changed Field Grp

MVKE-MVGR1 Material group 1 211MVKE-MVGR2 Material group 2 211MVKE-MVGR3 Material group 3 211

4.2 Maintain Field Selection for Data ScreensMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Field Selection Maintain Field Selection for Data Screens

Transaction Code OMS9Configuration Description

In this step we define the nature of a Field belonging to a particular Field Selection Group wrt the Screen Reference of a Material Type. Steps involved are :

Selecting the field selection group. Select the field selection option (hide, display, required entry, or

Optional entry) for each field reference as required.

4.3 Maintain Company Codes for Materials ManagementMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Basic Settings Maintain Company Codes for Materials Management

Transaction Code OMSYConfiguration Description

This activity is done for making a Company Code relevant for materials Management and to define the starting posting period This is a prerequisite for creating a Material Master

4.4 Define Attributes of Material TypesMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Basic Settings Material Types Define Attributes of Material Types

Transaction Code

OMS2

Configuration Description

Material type is analogous to the family of a material master; all the important attributes of a material are governed by settings in the material type. To be precise it governs :

1. Number range pattern and nature (external/internal)2. Hide/optional fields in the material master

3. Valuation Control at valuation area level (ultimately used to derive G/L)

4. Control on Production/Purchase

4.5 Define Number Ranges for each material typesMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Basic Settings Material Types Define Number Ranges for each Material Types

Transaction Code MMNRConfiguration Description

In this step, we have defined the type of number assignment and the number range intervals for material master records. When creating a material master record, system must assign it a unique number. There are two ways of doing this:

internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP system.

external number assignment

Here, the user assigns a number within the number range interval allowed. We can define the intervals for external number assignment numerically and alphanumerically.

We have defined the number range intervals for so-called groups. We assign one or more material types to each group.

If we assign just one material type to a group, we can define both an internal and an external number range interval for the material type.

If we group together more than one material type, we can define an internal and an external number range interval here too. This allows several material types to have the same number range intervals.

4.6 Define Attributes of system messagesMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Basic Settings Define Attributes of system messages

Transaction Code OMT4Configuration Description

When processing material master records, the system issues a number of system messages containing important user information. In this activity, we define how the SAP system handles these messages. We have the following options:

The message can be suppressed. The message can be displayed as a warning. The message can be displayed as an error message. (can’t be

surpassed)

For ITZ requirement Message Numbers MM189 & 312 are changed as Error message We are using Standard SAP Messages.

4.7 Define Material GroupsMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Settings for Key Fields Define Material GroupsTransaction Code OMSFConfiguration Description

Here we define the Groups for Materials & Services, This Grouping shall be defined keeping in mind the reporting requirement of the company for analysing Purchases, Consumptions, Stocks etc,

Setting is just a table entry, few records are shown in the screen shot, for complete list refer to the MM KDS document or the actual system node

4.8 Define External Material GroupsMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Settings for Key Fields Define External Material Groups


Here we define the Groups for giving an extra key for filtering, sorting the list of materials from a criterion other than Material groupingIn case of ITZ we have not used External Material Groups

4.9 Initialize PeriodMenu path Implementation Guide for R/3 Customizing (IMG) Logistics - General

Material Master Tools Initialize PeriodTransaction Code

MMPI


This Transaction can be used to initialize the period in materials management , i.e. it opens the already closed period (thru Txn : MMPV), but opening a period has serious implications on data consistency in SAP so as recommended by SAP Follow the instructions in Note 487381 before initialization

5 Materials Management – Consumption based Planning

5.1 Activate MRP for MRP AreasMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Consumption-based Planning Master Data MRP Areas Activate MRP for MRP Areas


This setting is required if we want to have planning at a level other than plants i.e. either of Storage location / at Subcontractor level.

An MRP area represents an organizational unit for which we can perform material requirements planning separately.An MRP area can include one or several storage locations of a plant or a subcontractor. We can define MRP areas in a plant.For ITZ Ltd., we have not used MRP Areas.

5.2 Define MRP AreasMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Consumption-based Planning Master Data MRP Areas Define MRP Areas

Transaction Code SCALConfiguration Description

Here we define the MRP areas for a plant for which we would like to carry out material requirements planning separately.When creating an MRP area, we enter the number, which must have at least 5 digits to avoid any overlapping with the plant MRP area, the description and the MRP area type

In case of ITZ we have not defined MRP area

Important : If MRP area is activated Conversion of Planning file entries needs to be run in every new System Client through Report RMDBVM00 in Txn : SE38

The conversion report causes the system to create a new planning file. In addition, the system creates MRP area for the existing plants. These MRP areas do not, however, affect the way material requirements planning is carried out. The number for plant MRP areas is identical to the plant number and therefore consists of four digits.

The conversion of the current planning file (table MDVM) to the new planning file (table DBVM) is a prerequisite for carrying out material requirements planning with MRP areas.

6 Materials Management – Purchasing

6.1 Define Attributes of System MessagesMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Environment Data Define Attributes of System Messages


In Purchasing, certain system messages containing important information for users may be issued from time to time

In this step, we can specify whether the SAP System:

Suppresses the relevant information Issues it as a warning message Issues it as an error message

In the case of an error message, processing cannot be continued until user input has been corrected

For ITZ requirement, messages (as a change from standard) are configured as given below:

6.2 Define Purchasing Value KeysMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Material Master Define Purchasing Value Keys


With Purchasing value key we can control following functions by using it in the material master purchasing view, purchasing value key governs:

The issue of reminders and urging letters (expediters) with respect to nearly due and overdue deliveries

The admissibility of over- and under deliveries ("overages" and "under ages")

Order acknowledgment requirements for PO items Shipping/packaging instructions

This data appears as default data in purchasing documents and is taken from the material master record (unless a purchasing info record exists, in which case it is taken from the info records).

6.3 Entry Aids for Items without a Material MasterMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Material Master Entry Aids for Items Without a Material Master


In this step we assign In this step, we can assign a purchasing value key and a valuation class to a material group.

The assignment of a purchasing value key default values for reminder levels etc. in purchase order items without a material master record and without an info record.The assignment of a valuation class to a material group enables the system to determine different accounts for the individual material groups.

For ITZ we have maintained Valuation Classes in the accounting view of the materials.

6.4 Create Purchasing GroupsMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Create Purchasing GroupsTransaction Code SPROConfiguration Description

It’s a key for a buyer or group of buyers responsible for certain purchasing activities. useful in accessing information, controlling authorizations, setting up release strategies etc. for ITZ ‘s Requirement following groups are configured, configuration is a simple table entry but purchasing group has a comprehensive use in all purchasing transactions/ documents

6.5 Define Document Types (RFQ/Quotation)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing RFQ/Quotation Define Document TypesTransaction Code

SPRO


SAP manages RFQs and quotations as documents which are grouped into different document types., in this step we have :

Created new document types Defined item interval Defined admissible follow-on document types Assigned document types to a number range group Defined number range interval Chosen type of number assignment

- internal- external

Chosen update groupThe update group determines how the data from the document header is updated in the statistics file.

Linkage determines which PR document types can be referenced for creating a particular RFQ document type

6.6 Define Text Types for Header Texts (RFQ/Quotations)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing RFQ /Quotations Define Text Types for Header Texts


In this step we define different Texts which appear in RFQ/Quotation Headers, which are used to store information applicable for a particular RFQ document

We have standard Header Text Types.

6.7 Define copying rules for Header Texts (RFQ/Quotations)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing RFQ /Quotations Define copying rules for Line Texts (RFQ/Quotations)


In this step we define copying rules for different header Texts which appear in RFQ/Quotation Line Items

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts) to the header text of the RFQ. We link text types in the RFQ with text types in other objects. System can adopt header texts from the following objects:

RFQ / Quotation Contract Scheduling agreement Vendor master

We can also specify whether the adopted text can be edited in the destination document or not. This type of setting is more useful in PO Header Texts

6.8 Define document types (Purchase Requisitions)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Purchase Requisitions Define document types (Purchase Requisitions)


SAP manages Purchase Requisitions as documents which are grouped into various document types., in this step we have :

Created new document types Defined item interval Defined admissible follow-on document types Assigned document types to a number range group Defined number range interval Chosen type of number assignment



Above linkage governs which type of PO can be created using PR of a particular type

6.9 Release Procedure with Classification (Purchase Requisitions)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Purchase Requisitions Release Procedure Procedure with Classification Set Up Procedure with Classification

Transaction Code

SPRO


In this step, we have set up the release procedure with classification.

Purchase Requisition release is the process in which Purchase Requisition is approved and released by HOD of concern department for request of required material or services specified in Purchase Requisition. Once the Purchase Requisition is approved and released then Purchase Order or RFQ will be created for that material or services against same Purchase Requisition.

Configuration involves following elements in sequence:

Release Group:Specify for the release group either "overall release" or "item-wise release"

Release codes:The Release Code is a two-character ID allowing a person to release (approve) a requisition.(analogous to approver code)

Release Indicators:

A release indicator shows the release status of a purchase requisition

Release Indicators also involve:

Field selection keyvia the field selection key, we can specify which fields in a purchase requisition with this release indicator can be changed or must be populated

Changes after start of release process

With the Changeability indicator, we can specify the effects of changes to a requisition. For example, certain changes may require a new release strategy to be determined for the requisition.

Via the Value change field, we can cause the release strategy to be re-started if the value of a purchase requisition item is increased by more than a certain percentage (e.g. 10%). To do so, set the Changeability indicator to "4 - Changeable, new release in case of new strategy or value change" and enter a percentage in the Value change field.

Release Strategy

The Release Strategy defines the approval process for Purchase Requisitions. The strategy specifies the release codes which are necessary and the sequence in which releases have to be affected. We can define a maximum of eight release codes i.e. 8 Levels of approval.

Release Prerequisites indicate the sequence in which a Purchase Requisition must be approved via the release codes. (In ITZ case release is parallel(either / or so indicators are kept blank)

Release Status indicates the affect after the release by a particular release code

Release Values

These values need to be maintained in every client manually, this forms the basis on which release strategy is triggered for a PR.An important prerequisite for this is to create Class & Characteristics in class type 032

Characteristics for Release Strategy

Create the Characteristics required for release strategy as master data thru transaction CT04, here the most important setting is to attach the characteristics to corresponding field of structure CEBAN

attach it to the structure

Class for Release Strategy

Create the class as master data thru transaction CL02

and attach the Characteristics created earlier to the class

6.10 Define Number Ranges (Purchase Orders)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Purchase order Define Number Ranges

Transaction Code OMH6Configuration Description

In this step we define number ranges for Purchase order document types, (defined separately in customizing), this setting also includes number ranges for other external purchasing documents i.e. for

Contracts/Scheduling Agreements and RFQs.

There are two ways of doing this:

internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP system.

external number assignment

Here, the user assigns a number within the number range interval allowed. We can define the intervals for external number assignment numerically and alphanumerically.

In case of ITZ all the documents are assigned with internal number ranges with the exception for document type “Legacy Open P.O”, as it was required to retain the legacy P.O number for this case.

go in change mode and define the intervals as shown:

6.11 Define Document types (Purchase Orders)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Purchase Orders Define document types


SAP manages Purchase Orders as documents which are grouped into various document types., in this step we have :

Created new document types Defined item interval Define allowable item categories Defined admissible follow-on document types Assigned document types to a number range group Defined number range interval Chosen type of number assignment



Above linkage governs which type of PR can be referenced created while creating a particular Contract document type

6.12 Set Tolerance Limits for Price VarianceMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Purchase order Set Tolerance Limits for Price Variance

Transaction Code SPRO Configuration Description

When processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record. In addition, it checks whether the specified cash discount value is admissible.Variances are allowed within the tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message. In SAP, the types of variance are represented by the tolerance keys. For each tolerance key, we can define percentage and value-dependent upper and lower limits per company code.

PE Price variance, Purchasingo Tolerance limit for system message no. 207. This message

appears if the specified effective price exceeds the predefined tolerances when compared with the material price.

SE Maximum cash discount deduction, Purchasingo Tolerance limit for system message no. 231. This is a

warning message, which appears when the specified cash discount percentage exceeds the predefined tolerances.

6.13 Release Procedure for Purchase OrdersMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Purchase Order Release Procedure for Purchase Orders

Transaction Code

SPRO


In this step, we have set up the release procedure for Purchase Orders(this also covers the process for other external purchasing documents e.g. contracts/scheduling agreements)Purchase Order release is the process in which PO is approved and released by HOD of concern department for request of required material or services specified in PO. Once the Order is approved and released then GR can be created against the PO

In case of ITZ, Release strategy is used in case of all purchases.

Configuration involves following elements in sequence:

Release Group:Release groups are created for each type of purchasing

Release codes:The Release Code is a two-character ID allowing a person to release (approve) a requisition.(analogous to approver code)

Release Indicators:

A release indicator shows the release status of a Purchase Order

Release Indicators also involve:

Changeability IndicatorWith the Changeability indicator, we can specify the effects of changes to a PO document. For example, certain changes may require a new release strategy to be determined for the requisition.

Via the Value change field, we can cause the release strategy to be re-started if the value of a purchase order is increased by more than a certain percentage (e.g. 10%). To do so, set the Changeability indicator to "6 - Changeable, new release in case of new strategy or value change" and enter a percentage in the Value change field.

Release Strategy

The Release Strategy defines the approval process for PO. The strategy specifies the release codes which are necessary and the sequence in which releases have to be affected. We can define a maximum of eight release codes i.e. 8 Levels of approval.

Release Prerequisites indicate the sequence in which a Purchase Requisition must be approved via the release codes. (In ITZ case release is by a single authority so there are no prerequisite involved)

Release Status indicates the affect after the release by a particular release code

Release Values

These values need to be maintained in every client manually, this forms the basis on which release strategy is triggered for a PO.An important prerequisite for this is to create Class & Characteristics in class type 032

Characteristics for Release Strategy

Create the Characteristics required for release strategy as master data thru transaction CT04, here the most important setting is to attach the characteristics to corresponding field of structure CEKKO

And attach it to the structure

Class for Release Strategy

Create the class as master data thru transaction CL02 and attach the Characteristics created earlier to the class

6.14 Define Screen Layout at Document LevelMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Purchase Orders Define Screen Layout at Document Level


In this step we define the attributes of various fields contained in a field selection key (defined for a document type) inside which various fields are grouped into fields selection groups.Steps involved in the process are :

Selecting the field selection key (defined for a document type) Select the field selection option (hide, display, required entry, or

Optional entry) for each field inside a field selection group reference as required.

Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes

settings can be made similarly for other fields in various other groups as & when required

6.15 Define Text Types for Header Texts (Purchase Orders)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Purchase Order Define Text Types for Header Texts


In this step we define different Texts which appear in Purchase order header, these are used to store information applicable for a particular PO document

6.16 Define copying rules for Header Texts (Purchase Order)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Purchase Orders Define copying rules for Header Texts


In this step we define copying rules for different header Texts which appear in Purchase Order Headers

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts, RFQ) to the header text of the Purchase Order. We link text types in the PO with text types in other objects. System can adopt header texts from the following objects:

RFQ / Quotation Contract Scheduling agreement Vendor master Purchase Requisition

We can also specify whether the adopted text can be edited in the destination document or not. Currently we are not maintaining any copying rule for header texts

6.17 Define Text Types for Item Texts (Purchase Orders)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Purchase Order Define Text Types for Item TextsTransaction Code

SPRO


In this step we define different Texts which appear in Purchase order item level, these are used to store information applicable for a particular PO document line

item

6.18 Define copying rules for Item Texts (Purchase Order)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Purchase Orders Define copying rules for Item Texts


In this step we define copying rules for different item Texts which appear in Purchase Order ITEM

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts, RFQ) to the header text of the Purchase Order. We link text types in the PO with text types in other objects. System can adopt header texts from the following objects:

RFQ / Quotation Purchase Requisition Purchase Info record Contract Material master

We can also specify here whether the adopted text can be edited in the destination document or not.

maintain the rules for a text as under

6.19 Define Document Types (Contracts)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Contracts Define Document TypesTransaction Code

OMH6


SAP manages Contracts as documents which are grouped into various document types., in this step we have :

Created new document types Defined item interval Define allowable item categories Defined admissible follow-on document types Assigned document types to a number range group

Defined number range interval Chosen type of number assignment



In case of ITZ, use of Contracts and Scheduling agreements is very minimal so we have retained and used standard SAP document types

Above linkage governs which type of PR can be referenced created while creating a particular Contract document type

6.20 Define Screen Layout at Document Level (Contracts)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Contracts Define Screen Layout at Document Level

Transaction Code

SPRO


In this step we define the attributes of various fields contained in a field selection key (defined for a document type) inside which various fields are grouped into fields selection groups.Steps involved in the process are :

Selecting the field selection key (defined for a document type) Select the field selection option (hide, display, required entry, or Optional

entry) for each field inside a field selection group reference as required.

Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes

settings can be made similarly for other fields in various other groups as & when required

6.21 Define Text Types for Header Texts (Contracts)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Contracts Define Text Types for Header Texts


In this step we define different Texts which appear in Contract header, these are used to store information applicable for a particular Contract document

6.22 Define copying rules for Header Texts (Contracts)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Contracts Define copying rules for Header Texts


In this step we define copying rules for different header Texts which appear in Contract Headers

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, Contract, RFQ) to the header text of the Contract. We link text types in the PO with text types in other objects. System can adopt header texts from the following objects:

RFQ / Quotation Contract Vendor master

We can also specify whether the adopted text can be edited in the destination document or not.

We are maintaining Standard Text and copying Rules for Header Texts

6.23 Define Text Types for Item Texts (Contracts)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Contracts Define Text Types for Item TextsTransaction Code

SPRO


In this step we define different Texts which appear in Contract item level, these are used to store information applicable for a particular Contract document line item

6.24 Define copying rules for Item Texts (Contract)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Contracts Define copying rules for

Item TextsTransaction Code SPROConfiguration Description

In this step we define copying rules for different item Texts which appear in Contract Headers

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts, RFQ) to the header text of the Contract. We link text types in the Contract with text types in other objects. System can adopt header texts from the following objects:

RFQ / Quotation Purchase Requisition Contract Purchase Info record Material master

We can also specify here whether the adopted text can be edited in the destination document or not.

maintain the rules for a text as under

6.25 Define External Confirmation CategoriesMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Confirmations Define External Confirmation Categories

Transaction Code

SPRO


Notification from the vendor to the recipient regarding the status of a purchase order., In case of ITZ , CONFIRMATIONS are not being used Confirmation categories are defined to symbolize the key for a type of confirmation

6.26 Define Internal Confirmation CategoriesMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Confirmations Define Internal Confirmation CategoriesTransaction Code

SPRO


In this step, we assign an external confirmation category to each internal confirmation category.

Internal Categories are for system controls.

6.27 Set Up Confirmation ControlMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Confirmations Set Up Confirmation ControlTransaction Code

SPRO


In this step, we assign an external confirmation category to each internal confirmation category.

Internal Categories are for system controls.

As shown all the conformation categories are relevant for MRP, but the last one is relevant to GR also, which means that when a GR is made against the P.O line item it will get defaulted with qty of last conf. category

6.28 Define Access SequenceMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Conditions Define Price Determination Process Define Access Sequence

Transaction Code

SPRO


Access sequence is an important element of pricing determination. It is the Order in which the system searches through the condition tables when searching for particular condition records. The search order goes from specific condition records to general condition records.

E.G.

Access sequence is made up of condition table (the level at which data is stored)

In the access sequence shown system will search for the record from first to last table in sequence. (e.g. if Custom duty % for a material is maintained at all the three levels i.e. Incoterms-plant-maerial / Plant-Material / Plant-Material Type level , then system will take the record from 1st available level only i.e. Incoterms-plant-maerial in this case)

Each condition table is defined as an combination of fields for data access and is assigned to different condition types ( In case of ITZ , we are not maintaining any access sequence),

6.29 Define Condition TypesMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Conditions Define Price Determination Process Define Condition Types

Transaction Code

M/06

sConfiguration Description

In this step we have defined condition types.

The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs in the SAP. These are stored in the system in condition records.

For condition types for which we want to maintain conditions with their own validity period we have specified an access sequence. (e.g. for all import duty conditions

Important Settings Condition type include:

Condition Class: Defines nature of condition as Prices / surcharge / discounts etc.

Calculation type: Defines nature of condition unit i.e. Amount type / Percentage / Qty etc

Condition Category : e.g. Packaging, Cost , Tax, Delivery Costs(requiring extra vendor at condition level)

Access Sequence : Allows condition records to be maintained

Header Condition : Allows usage at Header level of Purchasing document

Accruals : Makes a condition irrelevant to net price calculation i.e. excluded from tax base

6.30 Define Calculation SchemaMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Conditions Define Price Determination Process Define Calculation Schema

Transaction Code

M/08


In this step, we have defined the calculation schemas.

In MM area, a calculation schema is a framework of steps used to calculate pricing in as purchasing document

Analogous to this is referred to in the Sales and Distribution (SD) area as a pricing procedure.

In the calculation schema (pricing procedure), we specify which condition types are to be taken into account in which sequence.In the price (or cost) determination process, the SAP System automatically determines which calculation schema is valid for a business transaction and takes into account, one after another, the condition types it contains.

In case of ITZ we have defined schemas all starting with Z*, these will get derived in different types of purchasing documents as per the rule explained in Schema determination configuration

Select one of the schema and see the control data as shown below:

Important keys in defining Schema are as under:

Step No. & Counter: For determination the sequence of conditions and to act as a base for calculations with in condition

From- To : Base for calculation of condition value, this is only relevant for % type

of conditions

Statistical: Makes a condition non-relevant to account postings

Subtotal: Used to pass the condition value in to fields of P.O item tables and other pricing structure

Requirement : Used for validating Condition value determination using small ABAP written formulae

Base Type: Here a Formula for determining the condition basis as an alternative to the standard.

Accrual key: for deriving a separate account during GR / Invoice postings

6.31 Define Schema GroupMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Conditions Define Price Determination Process Define Schema Group


Every External Purchase document derives Calculation Schema from a combination of Purchasing Organization and Vendor, to simplify data maintenance for this process SAP works with grouping concept. So all the purchasing org. are grouped in to a Schema group and Vendors requiring same pricing stricture are grouped into a Schema group , now for the combination of these , system derives the pricing schemas

Click on a row to enter :

the other part i.e. vendors are assigned with schema group in vendor master

6.32 Define Schema DeterminationMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Conditions Define Price Determination Process Define Schema determination


In this step we have defined the determination of Pricing schema for different type of Purchasing documents and for Stock transport orders

For standard purchase orders(depending on the schema group of the vendor and the purchasing organization)For stock transport orders(depending on the supplying plant, the document type and the schema group of the purchasing organization)

select first item ,

and second item

6.33 Define Transaction Event keysMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Conditions Define Price Determination Process Define Transaction Event keys

Transaction Code

SPRO


In this step, we have defined transaction/event keys for condition types involving provisions.This enables the system to find the relevant account for provisions (for accrued delivery costs or miscellaneous provisions, for example),We have assigned these transaction/event key to each condition type that is relevant to provisions in the step Define Calculation Schema.

Select the 1st row

Select second row, it displays the usage of key in schema

6.34 Maintain Condition TableMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Conditions Define Price Determination Process Maintain Condition Table


In this step, we create custom tables, these table are used to store condition records for different condition types , for this these tables should be a part of access sequenceWith help of this we can derive prices, discounts and surcharges dependent on almost all the fields in a purchasing document.In a condition table, we specify the combination of fields for which we can create condition records.As per SAP recommendation we should not change the condition tables that are included in the standard version of the SAP System.Check the extent to which we can use the condition tables that are supplied with the standard SAP System, for our tables we can only choose names between 501 and 999. If we make no entry, the system will automatically assign a consecutive number.

For ITZ we have not defined any tables:

Steps:

For creating new condition tables. copy a similar condition table and proceed as follows:

Enter the name of the table we wish to create. Note that we can only choose names between 501 and 999. If we make

no entry, the system will automatically assign a consecutive number. Specify whether we wish to create the table with or without a validity

period. Enter the type of condition table (for example, transparent table).

Enter a description for the condition table. From the list of allowed fields that are included in the field catalog and

which can be extended there, choose the desired fields for the condition table.

Generate the new condition table.

IMP: All the fields that shall be used to pick up any condition value must be part of Header/Key field in the condition table.

6.35 Define Grid for Quantity VariancesMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Statistics Define Grid for Quantity Variances


For Purchasing information system for vendor performance the statistics is managed on the amount of quantity variances of vendors.The delivery quantity variance specifies in percent the variance between the purchase order quantity and the quantity actually delivered.This key figure is determined if an order item is completed and is updated for the entry date of the goods receipt or for the entry date of purchase order change.In this step we can determine four interval limits for every purchasing organization. Five intervals are then available to we for evaluation of vendors

6.36 Define Grid for Delivery Date VarianceMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Statistics Define Grid for Delivery date


Delivery date variance data is used in statistics for evaluating vendor performance.The delivery date variance specifies the difference in days the difference between the statistically relevant delivery date and the date of the goods receipt.

This key figure is updated during the goods receipt for the entry date.

In this step we can determine four interval limits for every purchasing organization. Five intervals are then available to we for evaluation of vendors

6.37 Define Weighing keysMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Vendor Evaluation Define Weighing keysTransaction Code

SPRO


In vendor evaluation criteria are weighted according to their importance through Weighing key.

For example, the overall evaluation of a vendor is calculated from the scores awarded for the main evaluation criteria "price," "quality," and "delivery." The latter comprises "on-time delivery performance" and "quantity reliability."

If we consider a vendor's price to be more important than quality, and quality to be more important than delivery, we can assign weights to the criteria in a ratio of three for price, two for quality, and one for delivery. This ratio is recorded in a weighting key.

6.38 Define Criterion (Vendor Evaluation)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Vendor Evaluation Define CriterionTransaction Code

SPRO


Here we have defined the criteria by which the system computes scores for vendors and specify whether the scores for the subcriteria are computed manually, semi-automatically, or automatically.

Select One of the criterion and drilldown to sub criterion

6.39 Define Scope of List (Vendor Evaluation)Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Purchasing Vendor Evaluation Define Scope of ListTransaction Code

SPRO


In this step we define various types of list, each representing different main criteria or the same main criteria in a different order.

In the standard system, the scope-of-list parameters 'standard' and 'version 1' are supplied as an example:

The parameter Standard provides the user with a ranking list of vendors by overall score. The main criteria are arranged in the order "Price", "Quality", "Delivery", "General service/support” and "Externally performed service/work".

The parameter Version 1 yields a ranking list of vendors sorted according to the score for the main criterion "Price". Then follow the overall evaluation and the main criteria "General service/support", "Quality", "Delivery", and "Externally performed service/work".

check the details of list inside

6.40 Maintain Purchasing Organization dataMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Vendor Evaluation Maintain Purchasing Organization data

Transaction Code SPRO


Select a row and displays criterion for Purchasing Organization

Sub criterions for main criterion

Weighing for a Purchasing Org.

We have provided Equal Weighting to the Criteria as we have different weighing parameters for ITZ

Point scores for a Purchasing Org.

6.41 Define Permissible Partner Roles per Account GroupMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Partner Determination Partner Roles Define Permissible Partner Roles per Account Group


Here we can specify for each account group of the vendor which roles the vendor may assume. Example we can specify that certain vendors may only serve as an ordering address, not as an invoicing party.

6.42 Define Partner Schemas (Vendor Master)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Partner Determination Partner settings in Vendor Master records Define Partner Schemas


Partner schemas allow us to group various partner roles. We can specify that certain roles in a schema are mandatory, i.e. cannot be changed after entry.

For ITZ, Schema groups Z1 is defined

select a schema to detail the allowed partner functions

6.43 Assign Partner Schemas to Account GroupsMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Partner Determination Partner settings in Vendor Master records Assign Partner Schemas to account groups


Here we assign the already defined schema groups to vendor account groups

6.44 Define Partner Schemas (Purchasing Documents)Menu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Partner Determination Partner settings in Purchasing documents Define Partner Schemas

Transaction Code SPRO


Partner schemas allow us to group various purchasing documents for partner determination. We can specify that certain roles in a schema are mandatory, i.e. cannot be changed after entry.

For ITZ, Schema group Z001 is defined

Select a Schema to detail the partner function allowed

6.45 Assign Partner Schemas to Document TypesMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management Purchasing Partner Determination Partner settings in Purchasing documents Assign Partner Schemas to document types


In this step, we have assigned the partner schemas to the various types of purchasing document.As a result, only the roles of the schema in question can be maintained in documents of the relevant types.

7 Materials Management – External Services Management

7.1 Define Service CategoryMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management External Services Management Service Master Define Service Category


In this step, we define the service category.The service category is the most important criterion for structuringService master records. It provides a default value for the valuationClasses. Service master records can be assigned to number ranges on the basis of the service category.

7.2 Define Number RangesMenu path Implementation Guide for R/3 Customizing (IMG) Materials

Management External Services Management Service Master Define Number Ranges


In this step, we define Number Ranges for each service category.

7.3 Define Number Range for Service Entry SheetsMenu path Implementation Guide for R/3 Customizing (IMG) Materials



In this step, we define the service category.The service category is the most important criterion for structuringService master records. It provides a default value for the valuationClasses. Service master records can be assigned to number ranges on the basis of the service category.

7.4 Define Attributes of System messagesMenu path Implementation Guide for R/3 Customizing (IMG) Materials



In External Services Management, a number of system messages containing important information for users may be issued. Users can process this information further.

In this step, we can define whether the SAP System Suppresses this information Issues it in the form of a warning Issues it in the form of an error message

For ITZ requirement, additional messages no. SE 346 / 347 / 361 is activated as Error along with other additional Standard SAP Messages

8 Materials Management – Inventory Mgmt. & Physical Inventory

8.1 Plant ParametersMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Plant ParametersTransaction Code

SPRO


In this step, we make the general plant settings for ‘Inventory Management’. All settings are also contained in the individual steps of the Implementation Guide for Inventory Management.

If we have created a plant in the enterprise structure using the Copy plant function, we do not need to make any settings.

If we have created a plant manually, we have to create a new entry for the plant parameters.

8.2 Define Number Assignment for Accounting DocumentsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Number Assignment Define Number Assignment for Accounting Documents

Transaction Code

OMBA


In this step, we set the number ranges for the accounting documents which are created when goods movements or inventory differences are posted.

For accounting-relevant goods movements, the system creates two different documents:

material document accounting document

Both the material documents and the accounting documents have their own document numbers. When inventory differences are posted, the system also creates an accounting document for the physical inventory document.

In this step, we only maintain the number assignment for accounting documents.

Accounting documents are split into document types to allow differentiated document number assignment, which is the basis for distinguishing between the various accounting operations. A number range is assigned to each document type. In a company code, we have to define number intervals for each number range and fiscal year. In inventory management, the transaction determines which document type is used.

Goods Issue Document Type

TCode Transaction text Type Description

MB05Subseq. Adjustmt: Act.Ingredient Mat WE

Goods receipt

MB11 Goods Movement WAGoods issue

MB1A Goods Withdrawal WAGoods issue

MB1B Transfer Posting WAGoods issue

MB26 Picking list WAGoods issue

MBSUPlace in Stor.for Mat.Doc: Init.Scrn

MIGO_GI Goods Movement WAGoods issue

MIGO_TR Transfer Posting WA

Goods issue

Goods Receipt Document Type

TCode Transaction textType Description

MB01 Post Goods Receipt for PO WEGoods receipt

MB04Subsequ.Adj.of "Mat.Provided"Consmp. WE

Goods receipt

MB0A Post Goods Receipt for PO WEGoods receipt

MB1C Other Goods Receipts WAGoods issue

MB31Goods Receipt for Production Order WE

Goods receipt

MBNLSubsequent Delivery f. Material Doc.

MBRL Return Delivery for Matl Document

MBSFRelease Blocked Stock via Mat. Doc. WE

Goods receipt

MBSL Copy Material Document MBST Cancel Material Document MIGO_GO Goods Movement WE

Goods receipt

MIGO_GR Goods Movement WE

Goods receipt

MIGO_GS

Subseq. Adjust. of Material Provided WE

Goods receipt

Automatic Movements Document Type


BMBC Batch Information Cockpit WAGoods issue

BORGR GR Automotive WEGoods receipt

BORGR_B GR Automotive: Posting WEGoods receipt

BORGR_C GR Automotive: Clearing WEGoods receipt

CAT5 Data Transfer CATS -> PS WAGoods issue

CAT9Data Transfer CATS -> PM/CS WA

Goods issue

CIP2 CC2: Update PDC messages WAGoods issue

CIP3 CC3: Update PDC messages WA Goods

issue



CIPV Posting PDC records WAGoods issue

Physical Inventory Document Type


MI07 Process List of Differences WIInventory document

MI08Create List of Differences with Doc. WI

Inventory document

MI10Create List of Differences w/o Doc. WI

Inventory document

8.3 Define Number Assignment for Material and Physical Inventory DocumentsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Number Assignment Define Number Assignment for Material and Phys.Inv Documents

Transaction Code

OMBT


In this step, we maintain the number assignment for the following documents: material documents physical inventory documents

The number assignment for these documents is not to be confused with the number assignment for accounting documents which we completed in the step Define number assignment for accounting documents. The number assignment for accounting documents depends on the document type which is allocated to the transaction.

The number assignment for material documents and physical inventory documents depends on the transaction/event type which is also allocated to each transaction in Inventory Management. The transaction/event types are divided into groups of number ranges. A number range interval has to be defined for each group.

No From no. To number Status Ext01 0100000000 0199999999 0 02 4900000000 4999999999 4900002419 03 5000000000 5999999999 5000000219 04 0200000000 0299999999 0

NoteWe cannot change the transaction/event types. However, we can change the number range intervals or we can allocate transaction/event types to new groups.

SPRO-> IMG-> Materials Management-> Inventory Management and Physical Inventory-> Number Assignment-> Define Number Assignment for Material and Phys. Inv. DocsHer you ned to maintain the number ranges for the group attched to the key.

If you want to maintain new number range intervals for an existing group:

a) Choose Group -> Maintain.b) Select a group and choose Interval -> Maintain.c) Choose Edit -> Insert year.d) Maintain the number interval for the new fiscal year.

8.4 Define Number Assignment for ReservationsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Number Assignment Define Number Assignment for Reservations

Transaction Code

OMJK


In this step, we set up number assignment for reservations.The number assignment applies to all plants in the client.

NoteIf we create reservations with method CreateFromData1 (function module BAPI_RESERVATION_CREATE1), we can use the number range RB for an external number assignment.

8.5 Field Selection for Goods Movement/Initial Header ScreensMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Field Selection for Goods Movement/Header Screens

Transaction Code

OMJN


In this step, we define the field selection for goods movements initial and header screens.Note that the field selection for the item screens depends on the movement type and is configured in separate steps.

In this step, we specify whether the fields are input, mandatory, display or hidden.

8.6 Field Selection for MIGOMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Settings for Enjoy Transactions Settings for Goods Movements Field Selection for MIGO

Transaction Code

OMJX


Here we can: Hide the header data completely or hide particular fields that we do not

require Hide pushbuttons that we do not require Define the Delivery note and Bill of lading fields as mandatory entries if we

use evaluated receipt settlement Show the GR/GI slip (GOHEAD-XABLN) field if we use GR/GI slip

numbers (only necessary in certain countries) Show the Plant (GODYNPRO-PO_WERKS) field if we require the

ordering-plant name for purchase-order-related goods movements as a selection criterion in addition to the purchase order number and item number

Hide the print indicator if we do not want to print out GR/GI slips in Inventory Management

8.7 Field Selection per Movement TypeMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Settings for Enjoy Transactions Settings for Goods Movements Field Selection per Mvt Type

Transaction Code

SPRO


In this step, we maintain all the settings for field selection by movement type. This step replaces the activity Define Screen Layout for the Enjoy transactions. The settings from Define Screen Layout are adopted in these settings automatically so that we do not need to maintain new entries here.

We can specify for each field whether it is an optional entry or a mandatory entry. In the table, we see all fields that are visible. We can access the setting Field Invisible by deleting the appropriate entry from the table.

There is no distinction between different special stock indicators in these entries. Special stock fields are always suppressed automatically.

8.8 Settings for Transactions and Reference DocumentsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Settings for Enjoy Transactions Settings for Goods Movements Settings for Transactions and Reference Documents

Transaction Code

SPRO


We can limit the number of selectable transactions (goods receipt, goods issue, and so on) and reference documents (material document, delivery note), and we can specify the movement type that the system is to propose for every reference document.

If we need only certain transactions (for example, goods receipts or goods issues), we can choose from the following preset transactions:

MIGO - Used to enter all goods receipts.MIGO_GR - Used to enter goods receipts from external procurement.MIGO_GO - Used to enter goods receipts for production orders.MIGO_GI - Used to enter goods issues.

We can always display material documents.

Transaction MIGO; Actions Mentioned in the table

ActionActive Action Active

A01 A08 A02 A09 XA03 X A10A04 X A11A05 A06 A07 X

Reference Document Types (For details go to the path mentioned)

Ref.Active MvT Ref.

Active MvT

R01 X 101 R02 X R04 X 101 R03 X R05 101 R01 X 351R06 101 R08 X 261R07 101 R09 X 201R08 X 101 R10 X 201R09 501 R09 X R10 X 511 R10 X 301R02 X R10 X 303R03 X R02 X R02 X R10 X 305R02 X R01 X R02 X

8.9 Create Storage Location AutomaticallyMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Issue/Transfer Postings Create Storage Location Automatically

Transaction Code

OMB2


In this step, we specify whether the automatic creation of storage location data is allowed for goods issues and transfer postings.

This is advisable if we work with negative stocks and a material's first movement may be an outward movement.

Note that the reversal movement for a goods issue, for example, movement type 202 or 262, is not considered as an issue but as a receipt. If we only use the automatic creation of storage location data for reversals of goods issues, we do not have to allow negative stocks.

We have to allow automatic creation per plant first of all. We then have to explicitly allow the creation of storage location data for each movement type.

The storage location data is only created if the quantity is posted to 'standard' storage location stock. It is not created for receipts into a special stock (for example, into sales order stock).We are using standard movement types for automatic Storage Location Creation

8.10 Set Manual Account AssignmentMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Issue/Transfer Postings Set Manual Account Assignment

Transaction Code

OMB6


In the R/3 System, account assignment is predefined via the automatic account determination facility.

When we enter material movements that are assigned to a cost account, we can enter the account number manually. In doing so, we change the account assignment predefined as offsetting entry for inventory posting.

MvT Acct MvT Acct201 309 -202 310 -292 311 -301 - 312 -302 - 313 -303 - 314 -304 - 317 -

8.11 Define Screen LayoutMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Issue/Transfer Postings Define Screen Layout

Transaction Code

OMBW


In this step, we set the field selection for the movement types including goods issues and transfer postings.

When creating a goods movement, the field selection determines which fields can be filled ( optional entry) must be filled (required entry) are suppressed fields

In Inventory Management, the field selection depends on the movement type.

The field selection defined for a movement type is valid for entering goods movements and reservations.

Note

We do not maintain the input features of the G/L account and Reason fields here, but in the following steps:

Manual account assignment (for the G/L account field) Reason (for the Reason field)

CautionThe field selection for the movement type must correspond with the following field selections:

field status definition of the G/L account to which postings are made (through the field status group)

field selection of the posting keyWe must take care that a mandatory entry in the G/L account is also defined as a mandatory entry for the movement type.

8.12 Maintain Copy Rules for Reference DocumentsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Issue/Transfer Postings Maintain Copy Rules for Reference Documents

Transaction Code

SPRO


In this step, we configure whether the items of the reference document are proposed as selected on the item selection list when entering a document with reference, or not.

The user can delete the check marks manually on the item selection list if she/he does not want to adopt some items.

TCode Transaction text Prsl

MB11Goods Movement X

MB1AGoods Withdrawal X

MB1B Transfer Posting X

8.13 Set up Dynamic Availability CheckMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Issue/Transfer Postings Set up Dynamic Availability Check

Transaction Code

OMCP


In this step, we configure the dynamic availability check.

In Inventory Management, two types of availability check are carried out. availability check during the entry of reservations availability check during the entry of goods movements

The system checks whether the material to be withdrawn is available and issues a message, if necessary.

The availability check is only carried out if: the material master record contains a checking group for the

availability check (MRP data) a checking rule is assigned to the transaction in Customizing

We can define for each movement type which type of message is issued (object

Movement type) which checking rules are supported (object Checking rule) per checking group and checking rule: which objects

(documents, stocks, material requirements) are included in the availability check (object Define checking rule)

per transaction of Inventory Management: which checking rule applies (object Transaction codes)

MvTVal.update

Qty update S Mvt Rec Cns

201 P 201 X 201 X K 201 X P 201 X 201 X X 201 X X K 201 X X P 202 P 202 X P 202 X 202 X X 202 X X K 202 X X P

221 Q 221 Q P221 Q L 221 Q L P221 X 221 X K 221 X Q 221 X Q P

This is an indicative table.

Checking Rule

ChR Description of checking rule01 Checking rule 0102 Checking rule 0203 Checking rule 03A SD orderAE SD order; make-to-order stockAQ SD order; project stockAV SD order; returnable packagingAW SD order; consignmentB SD deliveryBB SD delivery; customer stock

BESD delivery; make-to-order stock

BO Backorder processingBQ SD delivery; project stock

BVSD delivery; returnable packaging

BW SD delivery; consignment

Define Checking Rule

Transaction Codes

TCode Transaction text ChR Checking ruleCO27 Picking list MB11 Goods Movement

MB1A Goods Withdrawal 03Checking rule 03

MB1B Transfer Posting MB26 Picking list MIGO_GI Goods Movement MIGO_TR Transfer Posting

8.14 Generate Physical Inventory Documents for Goods MovementsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Issue/Transfer Postings Generate Physical Inventory Documents for Goods Movements

Transaction Code

OMCC


In this step, we define for each plant and movement type whether a physical inventory document is automatically generated when posting a goods movement.

We can create a physical inventory document in addition to the material document at the time of a goods movement. This function is important when inventory differences are posted from the Warehouse Management System. These inventory differences are thereby documented in Inventory Management with a physical inventory document.

In order to create an inventory document in addition to a material document for a goods movement, the following conditions must be met:

In the plant, we must define the transaction/event type WV for automatically generated physical inventory documents.We must define the document number assignment for this transaction/event type.

Automatic generation of physical inventory documents must be allowed for the movement type.

MvT Idoc717 X718 X

The above list is indicative

8.15 Check Tolerance LimitsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Set Tolerance Limits

Transaction Code

OMC0


In this step, we set the tolerance limits for goods receipts.

When processing a goods receipt, the system checks each item to determine whether the goods receipt varies from the purchase order or the material master data.

The different types of variances are defined by tolerance keys. For each tolerance key, tolerance limits can be set per company code.

The following variances are checked in Inventory Management:

Variance in the purchase order price quantity(Explanation)For this variance, two tolerance keys are provided:

o Tolerance key B1 (error message)o We use tolerance key B1 to define the maximum percentage

variance. If the variance is greater than the maximum variance, the system creates an error message. The user cannot post the goods receipt.

o Tolerance key B2 (warning message)o Tolerance key B2 defines the percentage variance from which a

warning message is to be issued. It is possible to post the goods receipt.

Variance for the moving average price of the material(Explanation)

We use tolerance key VP to define the percentage variance from which a warning message is issued. This warning message indicates a price change.

8.16 Create Storage Locations AutomaticallyMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Create Storage Locations Automatically

Transaction Code

OMB3


In this step, we specify whether the automatic creation of storage location data is allowed for goods receipts.

This is advisable if we want to post a goods receipt without having to maintain the storage location view of the material master record in advance.


The storage location data is only created if the quantity is posted to 'standard' storage location stock. It is not created for receipts into a special stock (for example, into sales order stock).

8.17 Set Manual Account AssignmentMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Set Manual Account Assignment

Transaction Code

OMCH



When we enter goods receipts which are assigned to a cost account, we can enter the account manually. In doing so, we change the account assignment predefined as offsetting entry for inventory posting.

8.18 Define Screen LayoutMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Define Screen Layout

Transaction Code

OMCJ


In this step, we set the field selection for the goods receipt movement types.

When entering a goods receipt, the field selection controls which fields (account assignment fields) are

ready for input ( optional entry fields) have to be filled (required entry fields) suppressed fields

In Inventory Management, the field selection depends on the movement type.


Inventory Management and Physical Inventory Goods Receipt Maintain Copy Rules for Reference Documents

Transaction Code

SPRO



The user can delete the check marks manually on the item selection list if she/he does not want to adopt some items.

TCode Transaction text PrslMB01 Post Goods Receipt for PO XMB0A Post Goods Receipt for PO XMB1C Other Goods Receipts X

MB31Goods Receipt for Production Order X

MBRLReturn Delivery for Matl Document X

MBSFRelease Blocked Stock via Mat. Doc. X

MBSL Copy Material Document XMBST Cancel Material Document X

8.20 Set Dynamic Availability CheckMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Set Dynamic Availability Check

Transaction Code

OMCM





Movement Type

MvT

Val.update

Qty update S

Mvt

Rec Cns

101 X Q B V101 X Q B X 101 X Q B X P101 X Q F 101 X Q F P101 X B 101 X B A101 X B V101 X B X 101 X B X A101 X B X V101 X X B 101 X X B A

Checking Rule

ChR Description of checking rule01 Checking rule 0102 Checking rule 0203 Checking rule 03A SD order

AESD order; make-to-order stock

AQ SD order; project stock

AVSD order; returnable packaging

AW SD order; consignmentB SD deliveryBB SD delivery; customer stock

BESD delivery; make-to-order stock

BO Backorder processingBQ SD delivery; project stock

BVSD delivery; returnable packaging

BW SD delivery; consignmentTransaction Code

TCode Transaction text ChR Checking ruleMB01 Post Goods Receipt for PO MB0A Post Goods Receipt for PO

MB1C Other Goods Receipts 03Checking rule 03

MB31Goods Receipt for Production Order 03

Checking rule 03

MBNLSubsequent Delivery f. Material Doc. 03

Checking rule 03

MBRL Return Delivery for Matl Document

MBSFRelease Blocked Stock via Mat. Doc.

MBSL Copy Material Document 03Checking rule 03

MBST Cancel Material Document MIGO_GO Goods Movement MIGO_GR Goods Movement

8.21 Set “Delivery Completed” IndicatorMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Set “Delivery Completed” Indicator

Transaction Code

SPRO


In this step, we can define that the R/3 System automatically suggests the delivery completed indicator for goods receipts if the delivered

quantity lies within the under/over-delivery tolerance

The "delivery completed" indicator has the following effects: The item is regarded as closed, even if the total quantity was not

delivered. A further delivery is not expected, may, however, arrive. In the next goods receipt, the item appears on the selection list but has

no selection indicator. The item can be reorganized even if the total quantity has not been

delivered.

NoteEven if the "delivery completed" indicator has not been set, an item is considered closed once the total quantity has been delivered. This means that the "delivery completed" indicator is not necessary in this case.

8.22 Set Expiration Date CheckMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Goods Receipt Set Expiration Date Check

Transaction Code

OMJ5


In this step, we set the material shelf life expiration date check for goods receipts for each plant and movement type.

PrerequisitesThe shelf life expiration date of a material can only be entered if:

the minimum remaining shelf life is maintained in the material master record

The minimum remaining shelf life is the time the material must still be usable, so that the goods receipt is accepted by the system. We can define the time unit the system uses in the storage data of the material master record in the ‘Period indicator’ field.

the shelf life expiration date check is active in the plant the shelf life expiration date check is active for the movement type

No expiration date check has been activated for ITZ.

8.23 Create Storage Location automatically for automatic movementsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Automatic Movements Create Storage Locations automatically

Transaction Code

OMJ8


In this step, we specify whether the automatic creation of storage location data is allowed for automatic goods movements.

This is advisable for goods movements via Shipping or when we post physical

inventory differences, for example.


The storage location data is only created if the quantity is posted to 'standard' storage location stock. It is not created for receipts into a special stock (for example, into sales order stock).

8.24 Set manual account assignment for automatic movementsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Automatic Movements Set manual account assignment for automatic movements

Transaction Code

OMJ9


Maintenance of this indicator is only useful in conjunction with movements for which a G/L account can be entered or is provided by the calling program.


When we enter material movements that are assigned to a cost account, we can enter the account number manually. In doing so, we change the account assignment predefined as offsetting entry for inventory posting.

MvT Acct MvT Acct121 601 131 602 132 603 -340 - 604 -341 - 621 -342 - 622 -543 - 623 -

544 - 624 -545 - 631 -546 - 632 -

8.25 Define Screen Layout for automatic movementsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Automatic Movements Define Screen Layout

Transaction Code

OMJA


In this step, we set the screen Layout for automatic movement types.

8.26 Generate Physical Inventory Documents for Goods MovementsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Automatic Movements Generate Physical Inventory Documents for Goods Movements

Transaction Code

OMJC


In this step, we define for each plant and movement type whether a physical inventory document is created automatically when a goods movement is posted.

In conjunction with automatic movements, please also note that this indicator is not set for goods movements which are created from within a physical inventory since, in this case, the physical inventory document already exists. This applies to movement types 701 to 708.

8.27 Define Default Values for ReservationsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Reservations Define Default Values

Transaction Code

OMBN


In this step, we specify the default values for the following functions for each plant:

allow goods movements for reservations delete reservations create storage-location stock data automatically for reservations

Allow movements for reservationsWe can only post a goods movement with reference to a reservation if the

Movement allowed indicator is set in the reservation item.

We are not using Reservations for ITZ.

Delete reservationsThe management program sets the deletion indicator for reservation items whose requirements date is earlier than the number of days specified here.

Create storage-location stock data automatically for reservationsWhen this indicator is set, the storage-location stock data is automatically created when a reservation is posted. This applies both to planned outward movements and planned receipts.


Inventory Management and Physical Inventory Reservations Define Default Values

Transaction Code

SPRO



The user can delete the check marks manually on the item selection list if she/he does not want to adopt some items

8.29 Set Dynamic Availability Check for ReservationsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Reservations Set

Dynamic Availability CheckTransaction Code

OMB1





TCode Transaction text ChR Checking rule

MB21Create Reservation 03 Checking rule 03

MB22Change Reservation 03 Checking rule 03

8.30 Default Values for Physical InventoryMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Physical Inventory Default Values for Physical Inventory

Transaction Code

SPRO


In this step, we specify the following default values for physical inventory for each plant:

Pre-settings for entering physical inventory documents the stock type (unrestricted-use, in quality inspection, blocked) the indicator for batch determination (in the foreground or in the

background) the unit of entry (stock keeping unit or unit of issue)

These indicators are suggested as default values when we enter a physical inventory document. But we can also change them there.

Pre-settings for entering physical inventory documents Reason for inventory difference The default value we specify here is only displayed when we enter an

inventory difference without reference to the corresponding document. But we can also change the default value here.

Note:

We only see this field when we enter inventory differences if we have activated it in the step Field selection for physical inventory.

8.31 Record Reasons for Goods MovementsMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Movement Types Record Reasons for Goods Movements

Transaction Code

OMBS


In this step, we can carry out the following for each movement type: maintain the input status of the Reason field store a key that gives a reason for the movement (for example, reason

for return delivery) and a corresponding text.When we enter a goods movement, we can only enter reasons which have been defined for the movement type here.

8.32 Copy, Change Movement TypesMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Inventory Management and Physical Inventory Movement Types Copy, Change Movement Types

Transaction Code

OMJJ


In this step, we can change the setting of existing movement types define new movement types

When we enter a goods movement, we must always enter the movement type. The movement type has important control functions in Inventory Management. It is essential for

updating the quantity fields updating the stock and consumption accounts selection of the fields used for entering documents printing goods receipt/issue slips

9 Materials Management – Valuation and Account Assignment

9.1 Split Valuation

Menu path Implementation Guide for R/3 Customizing (IMG) Materials Management Valuation and Account Assignment Split Valuation Activate Split Valuation

Transaction Code

OMW0


You configure whether split valuation is allowed at your company. If you generally allow split valuation, this does not mean that you must valuate each material on this basis. You decide whether to do so or not for a particular material when creating the material master record.

9.2 Configure Split ValuationMenu path Implementation Guide for R/3 Customizing (IMG) Materials Management

Valuation and Account Assignment Split Valuation Configure Split Valuation

Transaction Code

OMWC


In split valuation, we can distinguish between partial stocks of a material according to certain criteria and valuate them separately.

The material stock is divided according to valuation category and valuation type:

The valuation category determines how the partial stocks are divided, that is, according to which criteria.

The valuation type describes the characteristics of the individual stocks. With the function "Setting" we can determine:

which valuation categories exist in our company (global categories)

which valuation types exist in our company (global types) which valuation types belong to which valuation category which valuation categories exist in a valuation area (local

categories)

To select split valuation, proceed as follows:

1. Determine the valuation categories and valuation types that are allowed for all valuation areas:

o Global valuation categories via menu "Goto --> Global

sapevent:DOCU_LINK%5CGL:valuation_area

sapevent:DOCU_LINK%5CGL:valuation_type

sapevent:DOCU_LINK%5CGL:valuation_category

Categories"o 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 Categories->Org.units". You obtain a list of the global valuation categories.c) Activate the categories to be used in this valuation area.

The system creates the local valuation types based on the allocations under point 2.

Sap MM-configuration-step-by-step-guide

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