Sap Mm End User Training Manual

MATERIALS MANAGEMENT

End User Training Manual

Materials Management

SUBMITTED TO

Project Deep Roots

Version 1.0

Project Deep Roots User Training Guide, Version 1.0

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Icons

Icon Meaning

Caution

Example

Note or Tip

Recommendation

Syntax

Abbreviations

R Required entry field

(used in the end-user procedures)

O Optional entry field


C Conditional field


N.A. Not Applicable



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Table of Contents

1 Purpose .................................................................................................................................... 3

1.1 Prerequisites .................................................................................................................. 3

1.2 Navigation & List of Favorites ........................................................................................ 3

1.2.1 Navigation .................................................................................................................. 3

1.2.2 Maintain List of favorites ............................................................................................ 3

1.2.3 Important Definitions .................................................................................................. 3

2 Master Data .............................................................................................................................. 3

2.1 Material Master .............................................................................................................. 3

2.1.1 Create Material Master .............................................................................................. 3

2.1.2 Change Material Master............................................................................................. 3

2.1.3 Display Material Master ............................................................................................. 3

2.1.4 Extend Material Master .............................................................................................. 3

2.2 Vendor Master................................................................................................................ 3

2.2.1 Create Vendor Master................................................................................................ 3

2.2.2 Change Vendor Master.............................................................................................. 3

2.2.3 Display Vendor Master............................................................................................... 3

2.2.4 Extend Vendor Master ............................................................................................... 3

2.3 Service Master ............................................................................................................... 3

2.3.1 Create Service Master ............................................................................................... 3

2.3.2 Create Model Service Specification........................................................................... 3

2.3.3 Create Model Service Specification with Outline Path .............................................. 3

2.4 Vendor Evaluation.......................................................................................................... 3

2.4.1 Maintain Vendor Evaluation....................................................................................... 3

3 Purchasing................................................................................................................................ 3

3.1 Purchase Requisition (PR)............................................................................................. 3

3.1.1 Creating PR for Operational Material......................................................................... 3

3.1.2 Creating PR for Operational Material with Account Assignment- k ........................... 3

3.1.3 Creating PR for Project Material with Account Assignment- Q ................................. 3

3.1.4 Creating PR for Operational Material with Account Assignment- A .......................... 3

3.1.5 Creating PR for Operational Services with Account Assignment- k .......................... 3

3.1.6 Creating PR for Project Services with Account Assignment- P................................. 3

3.2 Releasing Purchase Requisition .................................................................................... 3

3.2.1 Individual Release of Purchase Requisition .............................................................. 3

3.2.2 Collective Release of Purchase Requisition .............................................................. 3

3.3 List Display of Purchase Requisition.............................................................................. 3


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3.4 Request for Quotation (RFQ)......................................................................................... 3

3.4.1 Request for Quotation (RFQ) For Material ............................................................. 3

3.4.2 Request for Quotation (RFQ) For Services ............................................................ 3

3.4.3 Message output: RFQ................................................................................................ 3

3.5 Maintaining Quotation .................................................................................................... 3

3.5.1 Maintaining Quotation for Material ............................................................................. 3

3.5.2 Maintaining Quotation for Services............................................................................ 3

3.6 Price Comparison........................................................................................................... 3

3.6.1 Price Comparison for Material ................................................................................... 3

3.6.2 Price Comparison for Services .................................................................................. 3

3.7 Creating Contract ........................................................................................................... 3

3.7.1 Creating Contract for Material.................................................................................... 3

3.7.2 Creating Contract for Services................................................................................... 3

3.8 Releasing Contracts....................................................................................................... 3

3.8.1 Release of Contract ................................................................................................... 3

3.9 Creating Scheduling Agreement .................................................................................... 3

3.9.1 Creating Scheduling Agreement for Material............................................................. 3

3.10 Releasing Scheduling Agreement.................................................................................. 3

3.10.1 Release of Scheduling Agreement ............................................................................ 3

3.11 Delivery Schedule .......................................................................................................... 3

3.11.1 Maintain Delivery Schedule for Material .................................................................... 3

3.12 Purchase Order .............................................................................................................. 3

3.12.1 Purchase Order for Procurement of Local Stock Material ........................................ 3

3.12.2 Creating Purchase Order for Procurement of Imported Material............................... 3

3.12.3 Purchase Order for Procurement of External Services ............................................ 3

3.13 Releasing Purchase Orders ........................................................................................... 3

3.13.1 Individual Release of Purchase Order ....................................................................... 3

3.13.2 Collective Release of Purchase Orders..................................................................... 3

3.13.3 Message Output......................................................................................................... 3

3.14 List Display of Purchase Order ...................................................................................... 3

3.14.1 Per Vendor................................................................................................................. 3

3.14.2 Per Material................................................................................................................ 3

4 Inventory Management............................................................................................................. 3

4.1 Goods Receipt & Goods Issue....................................................................................... 3

4.1.1 Default Values............................................................................................................ 3

4.1.2 Goods Receipt against a Purchase Order ................................................................. 3

4.1.3 Display the Material & a corresponding Accounting Document & PO history ........... 3


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4.1.4 Initial Entry of Stock Balances ................................................................................... 3

4.1.5 Delivery Free of Charge............................................................................................. 3

4.1.6 GR Blocked Stock...................................................................................................... 3

4.1.7 Release the GR blocked stock .................................................................................. 3

4.1.8 Return Delivery w.r.t. a Material Document ............................................................... 3

4.1.9 Return Delivery w.r.t. a Purchase Order.................................................................... 3

4.1.10 Cancellation w.r.t. a Material Document .................................................................... 3

4.1.11 Date Checks in GR for a Purchase Order ................................................................. 3

4.1.12 Goods Issue............................................................................................................... 3

4.2 Transfer Postings & Stock Transfer ............................................................................... 3

4.2.1 Default Values............................................................................................................ 3

4.2.2 Stock Transfer between Storage Locations............................................................... 3

4.2.3 Stock Transfer between Plants using Stock Transport Order ................................... 3

4.3 Creation and Acceptance of Service Entry Sheet.......................................................... 3

4.3.1 Creation and Acceptance of Service Entry Sheet ..................................................... 3

4.3.2 Collective Release of Service Entry Sheet ................................................................ 3

4.4 List Display of Inventory ................................................................................................. 3

4.4.1 Stock Overview .......................................................................................................... 3

4.4.2 Warehouse Stock....................................................................................................... 3

4.5 Physical Inventory .......................................................................................................... 3

4.5.1 Create Physical Inventory Document ........................................................................ 3

4.5.2 Enter Physical Inventory Count ................................................................................. 3

4.5.3 Post Inventory Differences......................................................................................... 3


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1 Purpose The purpose of End User Training Manual is to guide & describe the general steps required for handling various transactions & manually processing various documents within the system landscape.

1.1 Prerequisites

All configuration must be completed in SPRO.

1.2 Navigation & List of Favorites

1.2.1 Navigation

Use

Logging on to the System & Initial Tasks. Log on to the system & carry out some basic exercises in the system. The menu path refers to the SAP standard menu.

Procedure

1. Start the SAP Logon program.

2. Choose the entry for the SAP system.

3. Choose the Logon pushbutton.

4. Enter

A. Client

B. User Name

C. Initial Password

D. logon Language


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When you log on for the first time, enter a new password of your choice twice in the window that appears.

In the course of one Logon to a system, you can open at the most 6 parallel sessions.

F1 Help: You can use the F1 key to display an explanation of fields, menus, functions & messages.


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F4 Help: You can use the F4 key to display information on possible input values. You can also call up the F4 help for a field using the button immediately to the right of the selected field.


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1.2.2 Maintain List of favorites

Use

Because you work with some documents frequently, it is a good idea to include these transactions in a list of favorites.

Procedure

1. Following are the ways of including transactions in the favorites:

2. Drag & drop: Drag the desired transaction from the menu to your list of favorites.

3. Right mouse button: Right-click the required transaction and choose Add to Favorites.

4. in the standard toolbar: When you choose & then Add to Favorites, the selected entry is copied.


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1.2.3 Important Definitions

Organizational Levels in the Procurement Process

1. Client: Client is the highest hierarchical level.

Specifications or data saved at this level is applicable to all company codes & all other units.

User Master record must be created in the client.

Defined by three digit numeric key.

2. Company Code:

Company is the smallest organizational unit of external accounting for which a complete, self-contained book keeping system can be replicated.

It is defined by four character alphanumeric key.

3. Plant: Plant is an organizational unit within logistics. Since the key of a plant is unique in a client & a plant can only belong to one company code, by specifying the plant, you simultaneously specify the company code. It is defined by four character alphanumeric key.

4. Storage Location: Inventory management on a quantity basis is carried out in the plant at storage location level. When you specify a storage location you always specify the plant too. It is defined by four character alphanumeric key.

Purchasing Group & Purchasing Organization:

1. Purchasing Group:

Internally responsible for procurement of material.

Externally dealings with its vendors.

2. Purchasing Organization: is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements.

Procurement Cycle:

1. Determination of Requirement- Purchase Requisitions Manual &/ Or MRP

2. Determination of source of supply

3. Vendor Selection

4. Purchase Order handling

5. Purchase order monitoring

6. Goods Receipt

7. Invoice Verification

8. Payment Processing


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2 Master Data

2.1 Material Master

Use

The material master record is an enterprises main source of material specific data. It is used by all areas of logistics in the SAP R/3 system.

The integration of all material data in a single database object eliminates the problem of data redundancy. All areas, such as purchasing, inventory management, materials planning, & invoice verification, can jointly use the data stored.

Important Definitions

1. Material Type: Material with the same properties are assigned to the same material type. Material type controls

The type of Number Assignment (Internal or External)

The permissible number range intervals.

Which screen appear & in which order.

Which user department-specific data is suggested for entry (in views).

Which procurement type is allowed for a material.

It determines which accounts are posted when a receipt or issue of material from warehouse is booked.

2. Industry Sector: determines

Which screens appear & in which order.

Which industry specific fields appear on each sectors.

3. Item Category:

The item category enables you to replicate different procurement processes.

The document type determines which item categories are available for selection.

The item categories specifies whether a material number, an account assignment, a goods receipt, & / or invoice receipt are possible or necessary for an item.

4. Valuation Class:

Valuation class is maintained in Accounting View of the Material Master Record.

In automatic account determination, the valuation class is used to determine which stock account is to be updated during the goods movements of a material.

The valuation class is a key used to group together materials with the same account determination.

The permissible valuation classes depend on the material type.

5. Reorder Point Planning: Automatically Reorder point is decided by MRP controller.

Automatically Reorder based on forecast.


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The system checks available stock for MRP (sum of plant stock & fixed receipts).

6. Moving Average Price:

In valuation using the moving average price, the system valuates goods receipts with the P.O. price & goods issues with the current moving avg. price.

Moving Average Price = Total Stock Value/ Total Stock Quantity

Any differences from the P.O. price that occur during the invoice receipt are posted directly to the stock account during stock coverage, & the system determines a new moving average price.

7. Fixed Order Quantity:

The system creates an order proposal for the fixed lot size in the case of a material shortage.

If this order quantity is not sufficient to cover the shortage, the system generates several order proposals for the same date until the shortage is covered.

8. Replenish Quantity:

If you select replenish to maximum stock level & a material shortage occurs, the system creates an order proposal for the quantity required to bring the stock level up to the maximum stock level that is recorded in the material master record.


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2.1.1 Create Material Master

Procedure

1. Access the activity using one of the following navigation options:

Transaction Code MM01

IMG Menu Logistics Materials Management Material Master Material Create (General) Immediately

2. Enter the data on the Initial screen. Then choose , with the quick-info text enter.

Field name R/O/C Note

Material O Leave blank. Number assigned by system.

Industry Sector R Only H- Hotel is available.

Material Type R Use pull down to select or F4 button.

Change Number C

Copy from Material O For reference

3. Select the following views on the Select Views screen. Then choose , with the quick-info text enter.


Basic Data 1 R

Purchasing R

Purchase Order Text O

MRP1 O

MRP2 O

MRP3 O

Plant Data Storage 1 O

Accounting 1 R


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4. Enter the data In the Organizational Levels dialog box. Then choose , with the quick-info text enter.


Plant R

Storage Location O

5. Enter the data In the Basic Data screen. Then choose , with the quick-info text enter.


Basic Data

Material Description R

Base Unit of Measure R Use pull down to select or F4 button.

Conversion Unit O Use pull down to select or F4 button.

Material Group R Use pull down to select or F4 button.

Net Weight O


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Unit of Weight O

Old Material Number O

6. Enter data in the remaining views selected. To get to the next view in each case, choose

, with the quick-info text enter.


Purchasing View R

Purchasing Group R Use pull down to select or F4 button.

GR Processing Time O

Order Unit O Use pull down to select or F4 button.

Purchase Order Text View O

MRP 1 View O

MRP Group R Use pull down to select or F4 button.

MRP Controller R Use pull down to select or F4 button.

MRP Type R Use pull down to select or F4 button.


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Reorder Point R Use pull down to select or F4 button.

Lot Type R Use pull down to select or F4 button.

Fixed Lot Size C

Maximum Lot Size C

MRP 2 View O

Planned Delivery Time R

Safety Stock R

MRP 3 View O

Availability Check R Use pull down to select or F4 button.

Plant Data / Storage 1 O

Max. Storage Period O

Min. Rem. Shelf Life O

Total Shelf Life O

Accounting 1 R

Valuation Class R Use pull down to select or F4 button.

Proj. Stk. Val. Class R Use pull down to select or F4 button.

Moving Price R

Std. Price R


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7. Choose , with the quick info text Save or Click Yes button.


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2.1.2 Change Material Master

Procedure



IMG Menu Logistics Materials Management Material Master Material Change Immediately



Material R

Change Number O



Basic Data 1 O

Purchasing O


MRP1 O

MRP2 O

MRP3 O


Accounting 1 O



Plant R

Storage Location O


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5. Change the data to be changed. Then choose , with the quick-info text enter to get on next view.

6. Choose , with the quick info text Save to save changed data.


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2.1.3 Display Material Master

Procedure



IMG Menu Logistics Materials Management Material Master Material Display Display Current



Material R



Basic Data 1 O

Purchasing O


MRP1 O

MRP2 O

MRP3 O


Accounting 1 O



Plant R

Storage Location O

5. Choose , with the quick-info text enter to get to the next view.


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2.1.4 Extend Material Master

Procedure



IMG Menu Logistics Materials Management Material Master Material Create (General) Immediately



Material O Leave blank. Number assigned by system.

Industry Sector R Only H- Hotel is available.

Material Type R Use pull down to select or F4 button.

Change Number C

Copy from Material R For reference



Basic Data 1 R

Purchasing R


MRP1 O

MRP2 O

MRP3 O


Accounting 1 R


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Plant R

Storage Location O

Copy from

Plant R

Storage Location O

5. Change data in the following views selected if required. To get to the next view in each

case, choose , with the quick-info text enter.


Purchasing View R

Purchasing Group R Use pull down to select or F4 button.

GR Processing Time O

Order Unit O

MRP 1 View O

MRP Controller R Use pull down to select or F4 button.

Reorder Point R Use pull down to select or F4 button.

Lot Type R Use pull down to select or F4 button.

Fixed Lot Size C

Maximum Lot Size C

MRP 2 View O

Planned Delivery Time R

Safety Stock R

MRP 3 View O


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Availability Check R Use pull down to select or F4 button.

Plant Data / Storage 1 O

Max. Storage Period O

Min. Rem. Shelf Life O

Total Shelf Life O

Accounting 1 R

Moving Price R

Std. Price R

6. Choose , with the quick info text Save.


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2.2 Vendor Master

Use

The vendor master record contains information on an enterprises vendors. The vendor master record is maintained by both purchasing and accounting. The data in the vendor master record is subdivided into the following categories:

a. General data: is valid for the whole client. It includes address & bank details, for example.

b. Accounting data: maintained at company code level. It comprises data such as the number of the reconciliation account & the payment methods for automatic payment transactions.

c. Purchasing data: maintained for each purchasing organization. It includes the purchase order currency, Inco terms, & various control data pertaining to the vendor.


1. Account Group: decide which account group you are going to assign to the vendor

It controls

The screens & fields that are needed for the relevant role of your business partner appear & are ready to accept user input.

The type of number assignment.

Field selection- Which fields are ready for user input. Which field must be maintained. Which fields are hidden.

The status- vendor or one time vendor.


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2.2.1 Create Vendor Master

Procedure


Transaction Code XK01

IMG Menu Logistics Materials Management Purchasing Vendor Central Create



Vendor Leave blank. Number assigned by system.

Company Code R RCL1is the only value to be used.

Purchasing Organisation R Use pull down to select or F4 button.

Account Group R Use pull down to select or F4 button.

Reference C

Vendor O Use pull down to select or F4 button.

Company Code O RCL1is the only value to be used.

Purchasing Organisation O Use pull down to select or F4 button.

3. Enter data in the views selected. To get to the next view in each case, choose , with the quick-info text enter.


Create Vendor: Address View

R

Title R

Name R

Serch Term O

Street O


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Street 2 O

Street 3 O

Street 4 O

Street 5 O

House No. O

District O

Postal Code R

City O

Country R Use pull down to select or F4 button.

Region O Use pull down to select or F4 button.

Language R

Teleohone O

Mobile No. O

Fax O

Email O

Create Vendor: Accounting Information Accounting View

R

Rec. Account R Use pull down to select or F4 button.

Create Vendor: Payment Transaction Accounting View

R

Payment Terms R Use pull down to select or F4 button.

Home Bank R

Create Vendor: Purchasing Data View

C

Order Currency R Use pull down to select or F4 button.

Terms of Paymnt O Use pull down to select or F4 button.

Incoterms O Use pull down to select or F4 button.

Schema Group, Vendor R Use pull down to select or F4 button.

G.R. based inv. Verify. O

Planned Delivery Time O

SRV_BASED_IV O


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2.2.2 Change Vendor Master

Procedure



IMG Menu Logistics Materials Management Purchasing Vendor Central Change

2. Enter the data on the Initial screen. Select data to be changed then choose , with the quick-info text enter.


Vendor R Use pull down to select or F4 button.



General Data C

Address O

Control O

Payment Transactions O

Company Code Data O

Accounting Info O Use pull down to select or F4 button.

Payment Transactions O Use pull down to select or F4 button.

Correspondance O

Withholding Tax O Use pull down to select or F4 button.

Purchasing Organisation Data

O

Purchasing Data O

Partner Functions O


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3. Change the data to be changed. Then choose , with the quick-info text enter to get on next view.

4. Choose , with the quick info text Save to save changed data.


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2.2.3 Display Vendor Master

Procedure



IMG Menu Logistics Materials Management Purchasing Vendor Central Display

2. Enter the data on the Initial screen. Select data to be displayed then choose , with the quick-info text enter.





General Data C

Address O

Control O

Payment Transactions O

Company Code Data O

Accounting Info O Use pull down to select or F4 button.

Payment Transactions O Use pull down to select or F4 button.

Correspondance O

Withholding Tax O Use pull down to select or F4 button.

Purchasing Organisation Data

O

Purchasing Data O

Partner Functions O


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3. Choose , with the quick-info text enter to get to the next view.


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2.2.4 Extend Vendor Master

Procedure



IMG Menu Logistics Materials Management Purchasing Vendor Central Create






Account Group R Use pull down to select or F4 button.

Reference




3. If required change the data on Purchasing Organization View. Choose , with the quick-info text enter.


Create Vendor: Purchasing Data View

C

Order Currency O Use pull down to select or F4 button.

Terms of Paymnt O Use pull down to select or F4 button.

Incoterms O Use pull down to select or F4 button.

Schema Group, Vendor O Use pull down to select or F4 button.


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G.R. based inv. Verify. O

Planned Delivery Time O

SRV_BASED_IV O



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2.3 Service Master

Use

The service master record belongs to the master data & serves as a source of data that can be used when you create service specifications. By using service master records, you can reduce the amount of time needed for this activity, as well as the occurrence of errors. This is because you need to enter the service specifications completely once only in the service master record.

2.3.1 Create Service Master

Procedure


Transaction Code AC03

IMG Menu Logistics Materials Management Service Master Service Service Master

2. Enter the data in the following field.


Service Number C Leave blank. Number assigned by system.

Short Text of R

Service Category R Use pull down to select or F4 button.

Base Unit of Measure R Use pull down to select or F4 button.

Service Group R Use pull down to select or F4 button.

Purchase Status - OK O

Valid From R Use pull down to select or F4 button.

Long Text of Service O RCL1is the only value to be used.


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2.3.2 Create Model Service Specification

Procedure


Transaction Code ML10

IMG Menu Logistics Materials Management Service Master Model Service Specifications Create

2. Enter the data on the Initial screen. Then choose , with the quick-info text enter or .


Model service spec R Enter the alphanumeric value.


3. Enter the data on the Create Model Service Specifications screen. Then choose

button.


Description R Enter the description.

Search Term R Enter the search term.

Currency R Use pull down to select or F4 button.


Pur. Organisation O Use pull down to select or F4 button.

Fixed Vendor O Use pull down to select or F4 button.

Contract O Use pull down to select or F4 button.

Purchasing Status O



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4. Maintain the services.


Service Number R Use pull down to select or F4 button.

Quantity O

Gross Price O



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2.3.3 Create Model Service Specification with Outline Path

Procedure


Transaction Code ML10

IMG Menu Logistics Materials Management Service Master Model Service Specifications Create



Model service spec R


3. Enter the data on the Create Model Service Specifications screen. Then choose

button.



Search Term R Enter the search term.

Currency R Use pull down to select or F4 button.


Pur. Organisation O Use pull down to select or F4 button.

Fixed Vendor O Use pull down to select or F4 button.

Contract O Use pull down to select or F4 button.

Purchasing Status O


4. Click Outline On/Off button. Right Click on Description of MSSpec. Select New

Subgroup. Enter data & then choose , with the quick-info text enter.


Outline Level R Enter the level.



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5. Select Outline Level & Click button.

6. Select Model serv. Sel. & select services. Click Adopt Services button.


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2.4 Vendor Evaluation

Use

The Vendor Evaluation component helps select sources of supply and facilitates the continual monitoring of existing supply relationships. It provides accurate information on prices, and terms of payment and delivery. By evaluating vendors, enterprise's competitiveness can be improved.

On the basis of detailed information, and in collaboration with the relevant vendors, you can quickly identify and resolve any procurement problems that may crop up from time to time can be quickly identified and resolved.

2.4.1 Maintain Vendor Evaluation

Procedure


Transaction Code ME61

IMG Menu Logistics Materials Management Purchasing Master Data Vendor Evaluation Maintain

2. Enter the data in following field of the Maintain Vendor Evaluation: Initial Screen. Then

click button.


Purch. Organization R Use pull down to select or F4 button.


3. Enter the data in following field of the Maintain Vendor Evaluation: Overview of Main

Criteria screen. Then click button.


Evaluation Data

Weighting Key R Only 01-Equal Weighting to be used.

Deletion Indicator O Do not click this to keep history of Vendor Evaluation.

Evaluation of Main Criteria

Price R Select for Material as well as Service Provider.


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Delivery C Select for Material Provider only.

Service C Select for Service Provider only.

Quality C Select for Material as well as Service Provider.

4. Click button for Price , Delivery & Service criteria. Then click button. Score will come automatically.

5. For Quality criteria enter score manually.

6. Click back button for going main screen. Overall score along with main criteria score will come.



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3 Purchasing

3.1 Purchase Requisition (PR)

Use

A Purchase Requisition is created to indicate purchase department to procure materials or services with details like how much quantity is required, when required.

This transaction is optional for the process.

3.1.1 Creating PR for Operational Material

Procedure

1. Access the transaction choosing one of the following navigation options:

Transaction code ME51N

SAP R/3 menu Logistics Materials Management Purchasing Purchase Requisition Create

2. On the Create Purchase Requisition screen, make the following entries:

Field name Description R/O/C User action and values Comment

Shopping cart symbol

Document Type R ZOPM

Purchase requisition

Number that uniquely identifies a requisition

O Leave blank. Number assigned by system.

Source determi-nation

Flag that determines whether automatic sourcing of materials from a vendor is to be used

O

Item Over view Icon

Item Serialized item numbers

R Leave blank, system defaulted.

Account assignment

key specifying whether accounting for an item is to be effected via an auxiliary Account

O Leave blank for this process

Item Category

Denotes specific features of an item (example - material is consignment)

O

Material Name or number that uniquely identifies a

R Enter material code


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material

Short Text Description of Material O Defaulted from material master

Quantity Quantity requisitioned R Enter number of units required

Unit Unit of measure in which the requested material is to be ordered

R Defaults from material master

C Category of delivery date (indicates whether the date format is day, week or month)

R Select from the drop-down list

Defaulted by the system

Delivery date Date on which the goods are to be delivered. If delivery date is sooner than the system calculated lead time, a warning will be issued

R Enter the date on which material is required

Material group

Grouping of several materials with similar features

R Enter material group code

Plant Plant requiring material R Enter plant where material is to be shipped to

Storage location

Key for determining storage location for a specific plant

O

Purchasing Group

The Buyer responsible for purchasing the specific requisition/item

R Identify the buyer who will purchase material

Defaulted from material master if entered.

Requisitioner Indicates for whom the material is ordered

O

Tracking number

This number can be used to facilitate the monitoring of material procurement

O

Des. Vendor Desired vendor from which material required

O

Fixed Vendor

Fixed vendor is maintained for this material

O

SPlt Supplying plant O Used incase of stock transport order

POrg Purchase O


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Organization

Agreement Agreement number O Enter if Purchase Requisition is created against contract

In this process enter agreement number is created in above step

Item Agreement item number

O Enter if Agreement Item number Purchase Requisition is created against contract

In this process enter agreement item number

3. To assign the contract as source of supply Choose Item Details icon or Choose Control + F4 and select Source of supply tab on it.


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4. Here Choose Assign source of supply on this tab and system will automatically assign contract to this purchase requisition.

5. Choose to Save or Choose Control + S.


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3.1.2 Creating PR for Operational Material with Account Assignment- k

Procedure













O

Item Over view Icon



Acct. assignment category

Account where costs are allocated For a consumable material. For a stock material it is not required

C K for cost center For cost center

Item Category


O

Material Name or number that uniquely identifies a material


Short Text Description of Material O Required for materials with no material master

Defaulted from material master


Unit Unit of measure in which the requested material is to be



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ordered






Material group




Storage location


O

Purchasing Group




G/L Account Key for determining G/L account for a specific cost center

R

Cost Center Description of Cost Center

R

Internal Order No.

Description of Internal Order No.

R

Requisitioner.

Indicates for whom the material is ordered

O

Tracking number


O


O

Fixed Vendor


O


POrg Purchase Organization

O

Agreement Agreement number O Enter if Purchase In this process


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Requisition is created against contract

enter agreement number is created in above step








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3.1.3 Creating PR for Project Material with Account Assignment- Q

Procedure







Document Type R ZPRM






O

Item Over view Icon





C Q For Project

Item Category


O









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ordered






Material group




Storage location


O

Purchasing Group





R

WBS Element


R

Requisitioner.


O

Tracking number


O


O

Fixed Vendor


O



O


In this process enter agreement


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number is created in above step








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3.1.4 Creating PR for Operational Material with Account Assignment- A

Procedure













O

Item Over view Icon





C A for Asset For Asset

Item Category


O









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ordered






Material group




Storage location


O

Purchasing Group





R

Cost Center Description of Cost Center

R

Internal Order No.


R

Requisitioner.


O

Tracking number


O


O

Fixed Vendor


O



O

Agreement Agreement number O Enter if Purchase In this process


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Requisition is created against contract

enter agreement number is created in above step








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3.1.5 Creating PR for Operational Services with Account Assignment- k

Procedure







Document Type R ZOPS






O

Item Over view Icon





C K for cost center For cost center

Item category Type of purchase C D for Service For Service


O Leave blank.

Short Text Description of Material R Required for materials with no material master





C Category of delivery date (indicates




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whether the date format is day, week or month)



Material group




Storage location


O Leave blank.

Purchasing Group



Requisitioner.


O

Tracking number


O


O

Fixed Vendor


O



O






Item Details Item Details

Select Services tab


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Service number

Service master record number

R Select the service you have created in above step

Short text Short text R Defaulted from service master

Quantity Quantity R For one year contract

Unit of measurement

Unit of measurement R Defaulted from service master

Gross price Gross price per unit of measurement selected in service master

R

Select Account assignment tab

G/L Account G/L Account R

CO Area Controlling area R Defaulted by system

Cost Center Cost Center R Select from drop down list

Internal Order Number

R Select from drop down list


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3.1.6 Creating PR for Project Services with Account Assignment- P

Procedure







Document Type R ZPRS






O

Item Over view Icon





C P for Project For Project

Item category Type of purchase C D for Service For Service


O Leave blank.

Short Text Description of Material R Required for materials with no material master





C Category of delivery R Select from the drop-down Defaulted by


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date (indicates whether the date format is day, week or month)

list the system



Material group




Storage location


O Leave blank.

Purchasing Group



Requisitioner.


O

Tracking number


O


O

Fixed Vendor


O

SPlt Supplying plant O Used in case of stock transport order


O






Item Details Item Details

Select


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Services tab

Service number

Service master record number

R Select the service you have created in above step

Short text Short text R Defaulted from service master

Quantity Quantity R For one year contract

Unit of measurement

Unit of measurement R Defaulted from service master

Gross price Gross price per unit of measurement selected in service master

R

Select Account assignment tab

G/L Account G/L Account R

CO Area Controlling area R Defaulted by system

Cost Center Cost Center R Select from drop down list

WBS Element

R Select from drop down list





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3.2 Releasing Purchase Requisition

Use

You have to release a purchase requisition before proceeding with the next transaction.

3.2.1 Individual Release of Purchase Requisition

Procedure



SAP R/3 menu Logistics Materials Management Purchasing Purchase Requisition Release Individual Release

2. Choose on the icon to input the Purchase Requisition number and choose Other Document icon, On the Release Purchase Requisition 2100000## screen, choose on Change (F7) icon and make the entries as the following steps:

3. Since the Purchase Requisition 21000000## has release strategy, you will find new tab Release Strategy on item details of purchase requisition screen.

4. You can release document at item level or in entirety by one of two ways.

5. Select all items by using Select All button. Then click Release button.

6. Go to the Release Strategy tab page on item details of purchase requisition and do the following operations.


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7. You will find Release Code XX, beside yellow light and beside Release Options icon.

8. To release the purchase requisition, choose Release options. A message appears, indicating that Release effected with release code xx.



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3.2.2 Collective Release of Purchase Requisition

Procedure


Transaction code ME55

SAP R/3 menu Logistics Materials Management Purchasing Purchase Requisition Release Collective Release

2. On the Release (Approve) Purchasing Document screen, make the following entries:


Release Code

R

Release Group

Release Group R Choose from drop down menu.

Purchasing Document Category

Identifier allowing differentiation between the various kinds of purchasing document in the SAP system

O Choose from drop down menu.

Purchasing Organization

Purchasing Organization #


Document Number

Purchasing document Number

O Choose from drop down menu

Document Type



Purchasing Group

Purchasing Group # O Choose from drop down menu.

Vendor Vendor # O Choose from drop down menu

Supplying Plant

Supplying Plant # O Choose from drop down menu

Document Date

Date on which the purchasing document was created.

O Enter Document date or choose from drop down menu


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3. Choose the Execute.

4. On screen Release Purchasing Document select the appropriate Document number and perform the following:

Choose Release and/or

Choose Release & Save/or

Choose Cancel Release.

5. Choose Save button.


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3.3 List Display of Purchase Requisition

Procedure


Transaction code ME5A

SAP R/3 menu Logistics Materials Management Purchasing Purchase Requisition List Displays General

2. On the Release (Approve) Purchasing Document screen, make the following entries:


Purchase Requisition

Enter Preq Number O Choose from drop down menu.

Purchasing Group

Purchasing Group # O Choose from drop down menu.

Material Material Number # O Choose from drop down menu.

Material Group

Material Group # O Choose from drop down menu.

Requirement Tracking Number


Scope of list ALV R Choose from drop down menu.

Plant Plant Number O Choose from drop down menu.

Document Type



Item category Material or Service O Choose from drop down menu.

Account Assignment category

Account Assignment category


Delivery Date Delivery Date before which material / services are delivered.


Release Date Date before which documents released


Materials planner / Controller

Mainly MRP controller O Date before which documents released


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Processing status

What actions are taken on the Pur. Requisition.


Fixed vendor Name of Vendor O Choose from drop down menu.

PReq. Processing state

Status of PReq- released, delivered etc


Blocking indicator

Blocked PReq O Choose from drop down menu.

Requisitioner Name of Requisitioner O Choose from drop down menu.

Short Text Short text if any O

Sort Indicator Value must be 1 R Choose from drop down menu.

Cost Center Enter Cost Center O Choose from drop down menu.

WBS element Enter Order Number O Choose from drop down menu.

Order Enter Order Number O Choose from drop down menu.

Asset Enter Asset Number O Choose from drop down menu.

Asset sub number

Enter Asset sub Number


Network N.A.

Operation number

N.A.

Sales order N.A.

Sales order item

N.A.

Select any one of following options.

Assigned purchase requisitions

O

Closed requisitions

O

Partly ordered requisitions

O

Released requisitions only

O


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Requisitions for overall release

O

Requisitions. F. item-wise release

R

3. Choose the Execute. & click exit button.


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3.4 Request for Quotation (RFQ)

Use

Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.

This transaction is optional for the process.


1. Collective Number: You can link several RFQs that belong together using a collective number in the header data. The collective number can have a maximum of ten characters & can be alphanumeric.

3.4.1 Request for Quotation (RFQ) For Material

Procedure


Transaction code ME41

SAP R/3 menu Logistics Material Management Purchasing RFQ/quotation Request for Quotation Create

2. On the Create RFQ: Initial Screen, make the following entries:


RFQ Type Default is ZMTA - MATERIAL RFQ

R Enter RFQ type

RFQ Date Default is creation date

R May be changed if required The RFQ can be created for future issuance. Note that SAP will release it on that date without notification.

Quotation Deadline

The due date for vendor quotations

R Enter the due date in the date format assigned in the system

If the deadline is stated as a date after the required delivery date, the user will be given an error message when the delivery date is entered.

RFQ Externally numbered RFQ numbers

C Not allowed, user can not assign RFQ number. Note: each vendors RFQ is assigned a separate

Not recommended. Collective number of


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number. subsequent screen is an effective means to capture and track RFQs.

Purchasing Org.

Purchasing Organization responsible for RFQ

R Enter or select Purchasing Org. from table

Purchasing group

Buyer or Buying group Identifier

R Enter or select Purchasing group number from table

Item Category

Key defining how the procurement of a material or service item is controlled.

R Leave it blank for this scenario

Delivery Date Date on which the goods are to be delivered or the service is to be performed.

O Enter delivery date

Plant Key for a production facility or branch office within the company (that is, company code).

O Enter Plant

Storage Location

Number of the storage location where the material is stored. A plant may contain one or more storage locations.

O Enter Storage Location

Material Group

Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.

O Enter material group or use match code

Defaulted from material master record

Requirement Tracking number

Number that facilitates monitoring of the procurement process for required materials or services. This number can relate to an external "need note" (notice of requirements) that was not generated in the system.

O Enter requirement tracking number


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3. On screen Create RFQ: Item Overview, enter information in the fields as specified in the table


Item Number that uniquely identifies an item within the RFQ

R Defaults - Line items are defined by the system in increments of 10.

No User Action

I Item Category - determines if standard

purchase or other such as 3rd party

order, etc.

R Enter or select from table. Default is

Blank - standard purchase

No User Action

Material Material Number R Enter material number

All stock material must have material numbers

Short Text Short Description of Material

N.A. Defaulted in from material master

RFQ Quantity Quantity of Material requested for quotation

R Must be numeric



Delivery Date Date required if ordered

R Must be in correct date format

Material Group of material which this material

N.A. Defaulted in from material


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Group belongs master

Plant Plant where material is required

O Enter or select Plant from table.

Note: the material master must exist for that plant.

Sloc Storage Location where material will

be delivered and stored if ordered

O Enter Storage Location

Strictly optional.

Storage Location may be entered later at the time of P.O. creation

4. Choose the header details icon on the toolbar, then on screen Create RFQ: Header Data, enter information in the fields as specified in the table below:


RFQ RFQ number R System will display saved document number unless externally assigned

Grayed out

Company code

Company code R Defaulted by the system Grayed out

Purchasing group

Purchasing group R Supplied from initial screen Grayed out

RFQ type RFQ type R Supplied from initial screen Grayed out

Purch. Org Purchase organization R Supplied from initial screen Grayed out

Vendor Vendor number C Will be displayed if vendor number was added before this step.

Grayed out

RFQ date RFQ date R Supplied from initial screen Grayed out

Item interval Item interval R Supplied by system

Coll. No. Collective number O Enter a number to track vendors of the same RFQ

Language Language R Supplied from initial screen

Qout. Dead. Quotation deadline R Supplied from initial screen


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Validity start Validity start O Enter date quotation will start

Validity end Validity end O Enter date quotation will end.

Applic. By Application date O Enter closing date of Bids

Warranty Warranty O Enter warranty information

Bindg. Per. Binding period O Enter date period is binding

Target val Target Value O Enter total value of all materials that can be released.

Your reference

Your reference O Enter Vendors reference number/name

Salesperson Salesperson O Enter Salesperson name

Our reference

Our reference O Enter your reference number/name

Telephone Telephone O Enter telephone #

5. Choose the vendor address button on the toolbar, then on screen Create RFQ: Vendor Address, enter information in the fields as specified in the table below:


Vendor Vendor code R Enter valid vendor code

Title Possible titles are stored in a check table. They are language dependent.

O Enter title or use match code

Defaulted from vendor master record

Name Vendor Name C Up to 4 lines available Defaulted from vendor master


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Search Term 1 & 2

This field contains only upper-case letters. All entries are automatically converted to upper-case letters. There are two of these fields for search terms.

O Enter search terms Defaulted from vendor master

Street & House #

Street address and/or House #

C Defaulted from vendor master

Postal Code & City

Postal code and city / town / village

C Defaulted from vendor master

Country Name of country C Table validated / selection Defaulted from vendor master

Region In some countries, the region forms part of the address. The me

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