Sap Mm Lct Training Material Latest

8/13/2019 Sap Mm Lct Training Material Latest

http://slidepdf.com/reader/full/sap-mm-lct-training-material-latest 1/609

1

SAP Materials Management

Lateral Cross Training Material

26th June, 2007



2

Agenda

Name of thesection SAP overview

Duration (hours) 6 Hrs

Objective To understand what is SAP and its various applications.

Pre-requisites • Knowledge on ERP Solution

Course Content • SAP Overview• Industry Solutions from SAP

• Main Modules of SAP



3

• SAP stands for “Systems, Applications and Products in

data processing".

• SAP is the worlds third-largest independent software

provider.

• SAP was founded by 5 former IBM employees in 1972

and head quartered in Walldorf,Germany.

• SAP is the global market leader in ERP and in

collaborative and inter-enterprise business solutions

SAP Overview



4

SAP overview

• Various SAP Business suite :

─ mySAP Enterprise resource planning

─ mySAP Supply chain management

─ mySAP Customer relationship management

─ mySAP Product life cycle management

─ mySAP Supplier relationship management



5

SAP overview -Industry solutions from SAP

Aerospace & Defense Automotive

Banking Defense & Security

Engineering, Construction &Operations

High Tech

Healthcare Higher Education & Research

Industrial Machinery Chemicals

Consumer Products Life Sciences

Higher Education & Research Industrial Machinery & Components

Life Sciences Logistics Service Providers

Media Mill Products

Health Care High Tech



6

SAP overview -Industry solutions from SAP (..Contd)

Mining Oil & Gas

Postal Services Professional Services

Public Sector Railways

Retail TelecommunicationsUtilities Wholesale Distribution



7

SAP-Overview

• Small and medium business solutions ─ mySAP all-in-one

─ SAP business one

• New dimension products

─ Strategic enterprise management

─ Advanced planer and optimizer

─ Enterprise buyer profession edition

─ Business information warehouse

• mySAP technology

SAP Net weaver



8

SAP-Overview

• SAP R/3 main modules are

─ Financial Accounting (FI) ─ Controlling (CO)

─ Materials Management (MM) ─ Sales & distribution (SD) ─ Production Planning and Execution - Discrete,

Repetitive, Process (PP) ─ Logistics execution (LE)

─ Quality Management (QM) ─ Project Systems (PS) ─ Plant Maintenance (PM) ─ Customer Service (CS) ─ Human Resources (HR)



9

SAP Application Modules

SAP has several layers. The Basis System is the heart ofthe data operations and should be not evident to higher

level or managerial users. Other customizing and

implementation tools exist also. The heart of the system

from a manager‟s viewpoint are the application modules.



10

SAP overview

SAP stands for "systems, applications and products in dataprocessing".

SAP is the worlds third-largest independent software provider.Founded by 5 former IBM employees in 1972 and head quarteredin Walldorf, Germany.

SAP is the global market leader in collaborative and inter-enterprisebusiness solutions

SAP is the global market leader in ERP.

Introduction to SAP



11

Course Begins



12

Curriculum

1. Introduction to Procurement

2. Organization Structure

3. Master Data

1. Material Master

2. Vendor Master

3. Customizing settings for master data

4. Purchasing

5. Inventory Management

6. Invoice Verification

7. Account Determination8. Batch Management

9. Physical Inventory

10.Consumption Based Planning

11.Standard Reports in MM

12.Standard Tables in MM



13

Agenda

Name of thesection Introduction to procurement

Duration (hours) 1 Hrs

Objective To understand the various organizational structures fromlegal and business transaction point of view.

Pre-requisites •Functional experience in Sales.

•Understanding of Organizational structure.

Course Content •Introduction to procurement•Internal Procurement

•External procurement

•Methods of procurement



14

Definition

• The process of obtaining services, supplies, and equipment from a

vendor is called Procurement.

• The procurement department or the purchase department within anorganization manages all the purchases.

Introduction To Procurement



15

Organizational levels in a procurement cycle

A client can be termed as a corporate group

A company code is a company (accounting

unit) within the corporate group (client)

A plant is the manufacturing facility or branchwithin the company

Storage location is a area in the plant where allthe materials procured for the plant getsstored. Inventory management and physicalinventory is carried out at the storage locationlevel

The Procurement activity is taken care by thisdepartment in the plant

Client

Note:- A plant can be one of the following # Central delivery # warehouse #Regional

sales office #Manufacturing facility # Corporate headquarters

Company

Code

Plant

Storage

Location

Pur Org



16

Types of Procurement

• Internal Procurement

• External Procurement



17

Internal Procurement

In a company, goods movements do not only occur in the form of goodsreceipts and goods issues. Depending on the organization of the company

and its sales policy, internal stock transfers may also be necessary.Stock transfer with delivery is a plant-to-plant scenario. You are posting a

goods issue in plant A and a goods receipt in plant B. This type of stocktransfer can only be carried out from unrestricted-use stock of the issuingplant to unrestricted-use stock of the receiving plant. In a second step, you post the placement into storage at the receiving plant. Only then is theevent complete and the transferred quantity part of unrestricted-usestock.

The following are a must for internal procurement between plant to plantwithin the same company code.

• Creating a stock transport order in plant B• Generating a delivery in plant A

• Picking the material in plant A• Posting the goods issue in the delivering plant i.e. Plant A• Posting the goods receipt in the receiving plant i.e. Plant B

The quantity posted from stock is first of all managed as stock in transitfor the receiving plant. The quantity is only posted to the unrestricted-usestock of the receiving plant once the goods receipt has been posted. This

enables the quantity 'on the road' to be monitored.



18

Internal Procurement

You post a stock transfer from company code to company code in the same waythat you post a stock transfer from plant to plant, except that both plants belong todifferent company codes.

During the stock transfer, two accounting documents are created in addition to thematerial document

An accounting document for the removal from storage at the issuing company code An accounting document for the placement into storage at the receiving company

codeThe following are a must for internal procurement between plant to plant between 2

different company codes.

• Creating a purchase order at the receiving plant

• Creating delivery and billing documents at the issuing plant

• Posting the goods receipt at the receiving plant

• Posting the invoice receipt at the receiving plant

The key points in this kind of procurement is

• The issuing plant enters a delivery for the stock transport order and a billingdocument. This is an inter company billing document. Pricing takes place as normal.

• When the goods arrive, the receiving plant posts a goods receipt for the purchaseorder. The unrestricted-use stock increases and an accounting document get created.

• The invoice is checked with reference to the purchase order.



19

External Procurement

General cycle of activities:

Procurement

Determination of

requirement

Selection ofvendors from

the vendordatabase

Vendor Selectionand Comparison

of Quotations

PO processingPO Monitoring

GoodsReceipt

Invoice

Verification

Payment



20

External Procurement

1. Determination of Requirements

Materials requirements are identified either in the user departments or via materialsplanning and control & passed on to the Purchasing department via a Purchase requisitions. You can enter purchase requisitions yourself, or they can be generated automatically by thematerials planning and control system.

2. Source Determination

The Purchasing component helps you identify potential sources of supply based on oldorders and existing longer-term agreements with the vendor. This speeds the process ofcreating requests for quotation (RFQs), which can be sent to vendors.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number ofdifferent quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system takes up input data‟s from the requisition and the quotation to helpyou create a purchase order. As with purchase requisitions, you can generate Pos yourself orhave the system generate them automatically.



22

Methods of Procurement

• Procurement for Stock

A stock material is a material that is kept in stock. These materialsare kept in stock once received from the vendor. The stock of thismaterials keeps on increasing or decreasing based on amount ofthe quantity received or issued.

To order a material for stock, the material ‘must’ have a masterrecord.

• Procurement for Direct ConsumptionWhen you procure for direct consumption, you specify theconsumption purpose by entering an account assignment (forexample, a cost center).

To order a material for consumption, the material „may‟ have a

master record.



23

There are 3 basic forms of external procurement supported by MMPurchasing component.

• One-time purchase orders

• Longer-term contracts with the subsequent issue of release orders

• Longer-term scheduling agreements and delivery schedules



24

Forms of Procurement

• One-Time Purchase Order

You use one-time orders for materials or services that you order irregularly.

You can reference a purchase requisition, RFQ, or another PO when creating a one-time order.

• Contract and Release Orders

For materials that are being ordered regularly and in large quantities, we cannegotiate a deal with the vendor for pricing or conditions & record then in a contract.

In a contract you also specify the validity date.

•Scheduling Agreement

If a material is ordered on a regular basis and is to be delivered according to an exacttime schedule, then you set up a scheduling agreement. This method of procurementis typically used when Just-in-Time deliveries are required from the vendor (forexample, in the automobile industry).



25

Curriculum

1. Introduction to Procurement2. Organization Structure

3. Master Data

1. Material Master

2. Vendor Master


4. Purchasing



7. Account Determination8. Batch Management







26

MM Enterprise Structure

Client

Plant

PurchasingOrg.



27

Client

• Is the Highest Legal Entity

• An Independent Unit in R/3 System



28

Company

• An Independent accounting unit within the client.

• Each has its own P&L account and Balance Sheet



29

Plant

• A unit under the company• All Operation of the company take place here (e.g.

Manufacturing, sales, storage Unit, Admin Building)



30

Storage Location

• The storage location is an organizational unit that allows thedifferentiation of material stocks with in a plant.

• Physical Inventory is carried out at storage location level.



31

Purchasing Organization

• Responsible Organizational Unit for Procuring material /Service

• Procure the Material / Service for one or more plants withinthe company



32

Purchasing Groups

• The groups which are responsible for day –to – day buyingactivity in the Purchasing organization



33

MM Enterprise Structure

ASPL

BDC MDC

BDC1 BDC2 MDC1 MDC2

Bay11 Bay12 Bay21 Bay22 Bay31 Bay32 Bay41 Bay42

PURB PURM

PURA

CLIENT

COMPANY

PLANT

STORAGE

LOCATION

PURCHASEORGANIZATION

REF PURCHASE

ORGANIZATION



34

Configuration – Enterprise Structure

Define here

Assign here



35

Defining Organizational Elements

Client :

SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define Company > New Entries

Company Code :SPRO > IMG > Enterprise Structure > Definition > Financial

Accounting > Edit, Copy, Delete, Check Company Code > Copy,Delete, Check Company Code

Controlling Area :

SPRO > IMG > Enterprise Structure > Definition > Controlling >Maintain Controlling Area > Maintain Controlling Area

Use Currency type : 10 & Chart of Accounts as : INT



36

Defining Organizational Elements

Plant :SPRO > IMG > Enterprise Structure > Definition > Logistics General> Define , copy, delete , check plant > copy, delete , check plant

Storage Location :SPRO > IMG > Enterprise Structure > Definition > MaterialsManagement > Maintain Storage Loc ( w.r.t plant ) > NewEntries

Purchase Organization :

SPRO > IMG > Enterprise Structure > Definition > Materials

Management > Maintain Pur. Org >New Entries.



37

Assigning – Enterprise Structure

• SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company.

• SPRO > IMG > Enterprise Structure > Assignment > Controlling> AssignCompany Code to Controlling area

• SPRO > IMG > Enterprise Structure > Assignment > logistics General > Assign Plant to Company Code

• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Co . Code

• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Plant

• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign Standard P.Org to Plant

• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt >

Assign P.Org to Reference P.Org



38

Activate Company code for Materials Mgmt

SPRO > IMG > Logistics General > Material Master > Basic Settings>Maintain Co.Code for Materials Mgmt



39

Curriculum


3. Master Data

1. Material Master

2. Vendor Master


4. Purchasing



7. Account Determination

8. Batch Management







40

Agenda

Material master Material master contains the information on allthe materials that a company procures orproduces, stores or sells

Duration (Hours) 1

Objective To get familiar with Material Master

Pre-requisites •Material Master

Course content •Introduction

•Material Master•Demo1_ Creation of Material master

•Demo2_Customization settings

Note – Fields in red boxes are mandatory fields.



41

Introduction

• What is Material Master ?

• How the Material master is used in all the departments ?

• How it is useful in creating PO ?



42

Material Master

• Material master contains the information on all the materials that a

company procures or produces, stores or sells. The material masterrecord is a companies main source of material specific data. It isused by all components in the R/3 logistics system.

MaterialMasterRecord

Basic data

Materials planning

Stocks in Plant/ storLoc

Accounting

Storage

Warehouse Mgmt

Purchasing

S & D

Work scheduling

Quality management

Forecasting

Classification

Material Master Data



43

Material Master

• Integration of all material data in a single database , prevents theproblem of data redundancy. Data contained in material masterrecord is required for many functions with in the R/3 logisticssystem, for example:

• Purchasing data for ordering

• Inventory management data for posting a goods movementsand managing physical inventory.

• Accounting data for material valuation.

• MRP data for material requirements planning.

• Each department in company has it‟s own view in material master • Some material is valid for all organization levels, while some is validonly for certain levels.

• Data at client level

• Data at plant level

• Data at storage location level



44

Maintain a material master record: screens

• When creating or editing a material master data, you go through a number of

screens.From initial screen you go to two successive dialogue boxes . In the first

dialogue box, you specify the view you want to process. In second you specifythe relevant organizational levels. You then go to the data screens.

• You can change the standard screen sequence by changing the default values

Material Master

Material

(Industry sector)(Material type)

Organizationallevels

- Plant-Storage location-………..

Selective views- Basic Data- Purchasing-- Accounting

Data screens



45

Material type

• Materials with the same basic attributes are grouped together andassigned to a material type. This allows you to manage differentmaterials in a uniform manner in accordance with your company'srequirements. Examples of material types are given in the graphicbelow

Material type

Number assignment

Procurement type

Field selection

User departments

Account determination

..............

Control

Raw materials

Semi finished

Finished products



46

Industry sector

• Like material type, the industry sector has a control function in SAPR/3

• When you create a material master record, the industry sectordefines.

• which screens are displayed and in which order

• which industry specific fields are displayed in each screen

• Industry sector you assigned to material cannot be changedlatter.

• In customizing , you can define new industry sectors and maintainfield reference for field selection control according to your company-

specific requirements.

Industry sector

SelectionScreen

ControlField selection

Raw materials

Operatingsuppliers



47

Material Type

Material type controls :

• The type of number assignment (internal or external).• The permitted number range interval.

• Which screens are displayed and in which order.

• Which user-department-specific data (view) is suggested for entry.

• Which procurement type is permitted for a material; that is,

whether the material is produced in-house, procured externally, orwhether both options are allowed.

• Along with the plant, the material type determines a material'sinventory management requirement; that is, whether the systemupdates quantity changes in the material master record or updateschanges in value in the stock accounts in Financial Accounting.

• The material type also determines which accounts are posted whena material is posted to stock or leaves the warehouse.

• Various material types are provided in the standard SAP R/3System. If your company needs additional material types, you candefine these in Customizing according to your requirements



48

Unit of measure

• In addition to the base unit of measure the system uses for stockkeeping unit and to execute all its calculations, other departmentsuse their own unit of measure. For example Purchasing can useanother unit of measure to sales and distribution or to thewarehouse.

• Base unit of measure: stock keeping unit. All the other unit ofmeasure that you use, are converted to base unit of measure. Youmust enter the conversion factor for the unit of measure in thematerial master.



49

Purchasing data in material master record

In the Purchasing view of the material master

• Source list requirement

• Quota Arrangement usage• Automatic PO



50

Valuation class

• You can use the valuation class to Combine the materials for

assigning G/L accounts so that you do not have to manage aseparate stock account for each material.

• You maintain the valuation class in accounting view of the materialmaster record. The valuation class allowed for a material dependson the material type and can be configured in customizing.

Valuation class

Valuation class

Valuation class 1

Valuation class 2

Material type300000

300100

Accounting 1

MaterialMaster



51

Material Valuation procedures

Material valuation

Price control( In material master )

“ S “ Standard price

“ V “ Moving averageprice



53

Demo1_Create Material Master

Objective To create a Material Master

Demo1 Create Material Master



54


Objective Selective views for creating material master




55


Objective To maintain the data in Basic data1 view




56


Objective To maintain the data in Purchasing view




57


Objective To maintain the data in Accounting1 view

Demo2 Cutomizing settings



58

Demo2_Cutomizing settings

Objective To create Purchasing group, purchasing Value key…etc

Important T – Codes in Material Master



59

Important T Codes in Material Master

• MM 01 - Create Material Master• MM02 - Change Material Master

• MM03 - Display Material Master

• MM 17 - Mass Maintenance

• MMAM - Change Material Type• MM11 - Schedule creation of Material Master

• MM50 - Extend the material view(s)

Once material masters are created from one plant same can be extended to other plantsusing T- Code MM 01.



60

Curriculum


3. Master Data

1. Material Master

2. Vendor Master

3. Customizing settings for master data4. Purchasing




8. Batch Management





Agenda



61

Agenda

Vendor Master The vendor Master record contains all theinformation about the vendor that is needed to

be able to conduct business with them.

Duration (hours) 1

Objective To get familiar with Vendor master

Pre-requisites N.ACourse content • Introduction

• Concept

• Important Data for Vendor Master.

• Demo1_Customizing Settings• Demo 2_Creation,Change and display ofvendor

master



63

Concept

• All the relevent data on vendors is managed in Vendor masterrecords that is specifically related to purchasing. It containsinformation about external suppliers like vendor‟s name andaddress as well as data such as :

- General data

- Accounting data

- Purchasing data



64

Account Group

– When creating a vendor master record, you must specify an accountgroup. The account group determines :

– The type of number assignment.

– Whether or not a one time vendor is involved.

– Which fields screens contain and whether entries in these fields aremandatory or optional.



65

Partner Function

A vendor can take up different roles depending upon the

requirement. these roles are called Partner roles or partnerFunction. some of the roles are given below:

– Ordering address

– Supplier of goods

– Invoicing party

– Payee



66

Demo1_Customizing Settings

• Define Account group

• Define Number Ranges

• Define the term of payment

• Define the Partner function• Define the Partner schemas




67

Objective To create an account group



68





69





70





71


Objective To define Number Ranges



72


Objective Assign vendor Account group to numberranges.



73


Objective To Define Terms of payment



74


Objective Define Partner function



75


Objective Define partner determination procedure forschema.



76


Objective Define partner function in schema.



77

Demo2_Creation of vendor master

Objective To create a new vendor



78

Demo2_Change of vendor master

Objective To change a Vendor master.



79

Demo2_Display of vendor master

Objective To display a master record.



80

Curriculum


3. Master Data

1. Material Master

2. Vendor Master





8. Batch Management







81

Customizing settings for material master

Customizingsettings formaterialmaster

Customizing the Material Master,according to our businessrequirement.

Duration(Hours)

1

Objective To get familiar with customizing

settings with material masterPre-requisites •Material Master

Coursecontent

•Introduction

•Concept



82

Introduction

What is customizing settings for material master ?

How is it useful for end users ?

How does it satisfy company‟s own business requirement ?



83

Concept

• Customizing settings for material master, we can customize fieldsaccording to the business requirements. Most cases standard SAPproviding is enough, but some case you need to customize( i.e yourown industry sector, material type, no ranges….. ).

• We can restrict the material number length

• When ever you are creating a Material , if u select you select yourown material type and industry sector, it will display the selectiveviews required views for our material( i.e., what we havecustomized )



84

Demo1_Cutomizing settings for Material Master

Objective Material number length – Material (OMSL)



85


Objective To create Industry sector



86


Objective To create Material type (OMS2)



87


Objective To maintain a number ranges (MMNR)



88


Objective

To copy the standard screen sequence toown



89


Objective To assign the screen sequences to materialtype and industry sector



90

Curriculum


3. Master Data

1. Material Master

2. Vendor Master





8. Batch Management







91

Agenda

Purchaserequisition

This component use to givenotification of requirements

of materials and/or externalservices and keep track ofsuch requirements.

Duration(Hours)

1

Objective To get familiar with PR

- Material Master Vendor




92

Introduction

• Define Purchase Requisition

• What are the procurement types exist?



93

Concept

• A purchase requisition is a request to Purchasing to procure acertain quantity of a material or a service so that it is available at acertain point in time.



94

Purchase Requisition

• Requisitions can be created

• Directly

• Indirectly



95


• PR contains number of Items, for each of which a procurement typeis defined.

• Following procurement type are exist.

• Standard

• Subcontracting

• Consignment

• Stock Transfer• External Service



96

Concept

• Changing a Purchase Requisition

• If the requisition has already had a PO issued against it then it isrequired to inform the purchasing group

• If the requisition has been approved then changes are only

possible to a limited extent and may themselves be subject toapproval

• If the requisition was created by Materials Planning then youmay not be able to change the requisition or it is require tonotify the materials planner before making any changes.



97


• Define Document Types


• Define Screen Layout at Document Level



98


Objective To create different document types for PR



99


Objective

To assign Number ranges to a document type



100


Objective

Define Screen Layout at Document Level



101

Demo2_ Create Purchase Requisition

Objective

To create a Purchase Requisition



102

Agenda

Request ForQuotation This tool is used to manage andcompare requests for quotation(RFQ) issued to vendors and thequotations submitted by the latter in

response to them.Duration(Hours)

1

Objective To get familiar with RFQ/Quotation

Pre-requisites •Material Master, Vendor Master,Purchase Requisition

Course •IntroductionNote – Fields in red boxes are mandatory fields.



103

Introduction

• What is a quotation?

• What is RFQ ?

• What is the difference between the two?

• What is the process of vendor selection in your organization?



104

Concept

• Request For Quotation (RFQ) is an invite made to a vendor bypurchasing organization to submit a quotation for the supply of goodsor service performance.

• A quotation is a reply by a vendor to a purchasing organization relatedto the supply of goods or service performance subject to specifiedconditions.

• Price Comparison is the process of comparing the prices for all the

quotations received from vendors.



105

Demo1_Creation of RFQ

Objective

To create an RFQ

f



106


Objective

To create a RFQ

D 1 C i f RFQ



107


Objec

tive

To create a RFQ

D 1 C ti f RFQ



108


Objective

To create a RFQ

D 2 M i t i i th t ti



109

Demo2_Maintaining the quotation

Objective

To maintain a quotation

D 2 M i t i i th t ti



110

Demo2_Maintaining the quotation

Objective

Price comparison of quotations

Vendor1 is ranked as 1st (green highlight) and can

be selected for furtherprocessing

D 3 C t i i S tti



111


• Define Document Types


• Define Screen Layout at Document Level

Demo3 Customizing Settings



112


Objective

To create different document types for RFQ




113


Objec

tive

To assign Number ranges to a document type




114


Objective

Define Screen Layout at Document Level

Agenda



115

Agenda

Source list Source list specifies the possible sources ofsupply for a material over a given periodof time

Duration

(hours)

1

Objective To get familiar with Source list

Pre-requisites

•Material master• Vendor master

Course • Introduction


Introduction



116

Introduction

• What is meant by source list ?

• How does your organization maintain this master record ?

• Source list specifies the possible sources of supply for a material over a

given period of time. It shows the time period in which a material may beordered from a given vendor or under a certain long-term purchaseagreement.

• Source list is used in the administration of source of supply.

• Source list can be created manually or generated automatically.

• Source list you can be copied from one plant to another plant



Demo1 Source list



118

Demo1_Source list

Objective

Material Master settings for Source List

Demo1 Source list



119

Demo1_Source list

Objectiv

e

Source list requirement at plant level

Agenda



120

Agenda

Inforecord

Purchasing info record contains theconcise information on a vendor and thematerial( i.e., the vendors current price isstored in the info record )

Duration(Hours)

1

Objective To get familiar with info record

Pre-requisites

•Material master

• Vendor master


Introduction



121

Introduction

• What is meant by info record?

• How is your organization maintaining this master record?

• How is it useful in purchasing?

• The purchasing info record ( Info record )contains the information on aspecific material and vendor supplying the material, For example, thevendor's current pricing is stored in the info record.

• Info records can be created at purchasing org / plant level or Purchasingorganization level.

Introduction



122

Introduction

• When you create a purchase order, the system searches for inforecord for purchasing organization/plant combination. If there in norecord for this combination, the system searches for purchasingorganization only.

• You can maintain info record manually or automatically fromquotations, purchase orders or outline agreements.

• Info record can be maintained for different procurement types

• Standard

• Subcontracting

• Pipeline

• Consignment

Demo 1 Info record



123

Demo 1_ Info record

Objective

To create an Info record – Purchasing org / Plantlevel

Demo 1 Info record



124

Demo 1_ Info record

Objective

To create an Info record – Purchasing org / Plantlevel

Demo 1 Info record



125

Demo 1_ Info record

Objec

tive

To create an Info record – Purchasing org / Plant

level

Demo 2 Info record



126

Demo 2_ Info record

Objective

To create an Info record at PurchasingOrganization level

Demo 2 Info record



127

Demo 2_ Info record

Objective

To create an Info record at PurchasingOrganization level

Demo2 Info record



128

e o _ o eco d

Objec

tive

To Create an Info record at Purchasing

Organization level

Demo3 Info record



129

_

Objective

Info Update in quotation

Demo3 Info record



130

_

Objective

Info Update in Purchase order

Demo3 _ Info record



131

_

Objective

Info Update in contract ( Outline agreement )

Agenda



132

g

PurchaseOrder

A purchase order is a formal request to avendor to supply or

provide goods or services at a certainpoint of time with certain

quantity.Duration(Hours)

1

Objective To get familiar with purchase order.

Pre-requisites

Material master, Vendor master


Concept



133

p

• It represents the formal and final confirmation to the vendor to supplymaterial or service.

• Its an external document created with ref to PR / RFQ/PO/Outlineagreement by the Purchasing group as per the agreed terms & conditions.

Important Data for Purchase order



134

p

• Prerequisites required for maintaining purchase order are as follows.

Header data Item data

VendorOrder(doc.) type

Purchase

organizationPurchase group

Company code

Material no.Plant no.

Quantity

Delivery datePrice

Important Data for Purchaseorder



135

• Item category

• Item category controls the procurement process and defineswhether an item requires material number, account assignment,goods receipt, and/or invoice receipt.

• Standard Item categories

• Standard

• Subcontracting

• Third Party

• Consignment

• Stock Transport Order

Important Data for Purchase order



136

p

• Account Assignment Category

• It determines the nature of account assignment and accounts to becharged when the incoming invoice or goods receipt is posted.

• Standard Account assignment categories :

• Asset• Order• Production Order• Cost Center• Project• Unknown• Sales order

Document type



137

• The purchasing documents are differentiated via document type,also determines which is the relevant number ranges and whichfield should be offered during maintenance purposes.

Process flow



138

Purchase Order

With ref.to PRWith ref. toOutline Agree.

With ref.to RFQ

Demo1_Creating a Purchase Order



139

Objectiv

e

To create a Purchase Order




140

• Define document type

• Define number ranges

• Define screen layout

• Set tolerance limit for price variance




141

Select the document

Type(NB)

Objectiv

e

To Define the document type purchase order

document.




142

Objectiv

e

To Define the number ranges for purchase

order document.




143

Select the field ME21 And double click.

Objectiv

e

To change the screen layout for Purchase

Order




144

Marked the check box asPer requirement

Objectiv

e

To change the screen layout for Purchase

Order




145

Click on radio button As per requirement And enter the% also

Objectiv

e

To change the tolerance settings

Agenda



146

Outline Agreement

This component can be used toenter into longer-term purchasingarrangements with vendorsregarding the supply of materials

or the performance of services.Duration(Hours)

3

Objective To be familiar about Outlineagreement

Pre-requisite Vendor Master

Material MasterNote – Fields in red boxes are mandatory fields.

Outline agreement



147

• In the R/3 System, an “outline agreement” is a longer-termpurchase agreement concerning the supply of goods or theservices performance according to predetermined conditions.

These are valid up to a certain period of time and cover apredefined total purchase quantity or value.

• In SAP outline agreements are again subdivided into thefollowing categories

• Contracts• Scheduling agreements

Definition



148

• Structure of an Outline Agreement

• Document header: It contains information relating to the entireagreement. For example, the vendor information and header

conditions are in the document header.

• Items: It contains the information specific to the relevantmaterial or service.

• Quantity or price of the item

• Conditions, such as quantity discounts and surcharges



Contract



150

You can also set up corporate buying contracts with your vendors.

• Plant contract/Centrally agreed contract

Contract 1 Contract 2

Plant 1 Plant 2 Plant 3

• Distributed contracts are centrally agreed contracts that are made

available to other R/3 Systems for the purpose of issuing releaseorders against them.

Structure of a contract



151

• The contract consists of items defining the individual materials,

material groups, or services with prices and in many casesquantities.

• An item is assigned to an item category, which defines the typeof procurement (e.g. item category K for consignment, or L for

subcontracting).

Contract



152

• Contract items can relate to a single plant or to all plants belong toa same purchasing organization (centrally agreed contract).

• All the plants belong to a single purchasing organization can orderagainst a centrally agreed contract.

• An enterprise working with a central purchasing organization holdseveral plants can negotiate better conditions at a high level.

• Centrally agreed contracts can be entered into with a vendor‟sentire corporate group. The individual contract release orders canbe issued to other individual companies belonging to the vendorcorporate group. This can be made possible when the partner

Quantity Based contract



153This type of contract is used when if the total quantity of goods to

Quantity contract

TargetQuantity asspecified inthe contract

Value Based contract



154

This type of contract is used when if the total value of all releaseorders issued against the particular contract is not to exceed a

certain redefined value

TargetQuantity asspecified inthe contract

Value contract

Scheduling Agreements



155

• It is a longer-term purchase arrangement with the vendor underwhich materials are procured on predetermined dates within acertain time period.

• Working with scheduling agreements can shorten processing timesand reduce the amount of paperwork.

• You can carry out your manufacturing operations on the Just-In-

Time (JIT) principle.

Scheduling Agreements



156

• A scheduling agreement consists of a number of items for which aprocurement type has been defined. The procurement types whichare defined are as follows

• Standard

• Subcontracting

• Consignment

• Stock Transfer

• Delivery of the total quantity of material specified in the agreementis spread over a certain time period, consisting of lines indicatingthe individual quantities with the corresponding delivery dates.

S A can be created in two ways



157

• Manually – By entering all the data manually. For this theprerequisites are

• Account assignment-For each item to be posted to anaccount you need the account assignment data.

• Purchase organization/ Purchasing Group-You must assignthe scheduling agreement to a purchasing organization & apurchasing group.

• Referencing Technique- By referring other documents like

• PR

• RFQ‟s/Quotations

• Other Scheduling agreements

Demo1_Creation of Contracts



158

Objec

tive

To create a contract

Demo1_Creation of Contracts



159

Objec

tive


Demo1_for Creation of Contracts



160

Objec

tive


Fill in all the detailsrelated to the material

Demo1_for Creation of Contracts



161

Objec

tive





162

Objec

tive

To assign Number ranges to the contract




163

Objec

tive

To assign Number ranges to the contract




164

Objec

tive

Define Screen Layout

Demo3_Creation of scheduling agreements



165

Objec

tive

To create a Scheduling Agreement




166

Object

ive





167

Objecti

ve


Fill in all the detailsrelated to the material

Obj T S h d li A




168

Objec

tive


Agreement Numbergets created

Demo3_Creation ofscheduling agreementsObj i

T S h d li Li



169

Objecti

ve

To create Scheduling Lines

Enter the schedulingagreement Number


Obj i S h d li i



170

Objecti

ve


Select the line items& click here to enter

the schedule lines


Obj ti T t S h d li Li



171

Objecti

ve


Enter the dateon which you need thematerial to be delivered

Enter the scheduled Quantity

Demo4_Customising Settings

Obj T i N b t th S h d li



172

Objec

tive

To assign Number ranges to the Scheduling

agreement

Demo4_Customising Settings

Obj T D fi D t t f h d li



173

Objec

tive

To Define Document types for scheduling

agreement

Agenda



174

Quota

Arrangement

This tool forms a part of the Sourcing

Administration. A quota arrangementdivides the total requirement of a materialover a period among certain sources ofsupply by assigning a quota to each source

Duration (hours) 1Objective To be familiar about the process of Quota

Arrangement

Pre-requisites •Material Master

•Info Record

•Source List

Course content • Concept

• Important Data for Quota Arrangement


Concept



175

• Quota Arrangement is a tool which is used in Sourcing Administration

• A Quota Arrangement divides the total requirement of a Material

among the certain Sources of Supply (Vendors) and then assignsthe Quota to each Source.

• This particular Quota specifies the portion that is to be procuredfrom that assigned Source.

Important Data for Quota Arrangement



176

• Following are the important data‟s required for maintaining a Quota Arrangement

• Material No/Plant No to which the Quota Arrangement applied

• Procurement Type of the Material

• Vendor Number

• Validity period of the Quota Arrangement

• Quota to be assigned to the each source of supply

Quota Rating Formula

Q t R ti Q t ll t d Q tit Q t B Q tit



177

• Quota Rating = Quota-allocated Quantity + Quota Base Quantity

Quota

• Quota-allocated quantity: Total quantity from all purchaserequisitions, purchase orders, release orders, and schedulingagreement schedules allocated to a given source of supply. (The

quantities of quota-allocated planned orders are also taken intoaccount)

• Quota base quantity: This is the Quantity used to control thequota arrangement when new sources of supply are identified

/included.

• Quota: This is the number indicating the portion of totalrequirement of the Material that is to be given or assigned to aparticular source/vendor.

Source Determination based on Quota Rating

http://localhost/var/www/apps/conversion/tmp/scratch_8/How%20the%20System%20Calculates%20the%20Quota%20Rating.doc



178

• The Source with the Lowest Quota Rating represents the ValidSource.

• If more than 1 source has the quota rating as 0, then the sourcewith the highest quota is selected.

• The Concept States that higher the quota, lower the quota

rating and higher the probability that the relevant source will bedetermined as the valid source of supply.

Demo 1_Quota Arrangement



179

CustomizationSettings for

Material Master

Assign & ProcessPurchase

Requisition

CreatePurchase Order

Display QuotaArrangement

Maintain QuotaArrangement

Maintain SourceListCreate Info Record

Create PurchaseRequisition

PROCESS FLOW

•Click on the text mentioned inside the Box to go to the respective slides.

Demo1_Quota Arrangement

Objec

To make settings in material master to enable



180

Objec

tive

To make settings in material master to enable

Quota Arrangement


Objec To create an Info Record



181

Objec

tive

To create an Info Record


Objecti To maintain a source list



182

Objecti

ve

To maintain a source list


Objec

To create a quota arrangement



183

Objec

tive

To create a quota arrangement.


Objec To create a Purchase Requisition



184

Objec

tive

To create a Purchase Requisition


Object

To assign vendors automatically to purchase



185

Object

ive

To assign vendors automatically to purchase

requisitions depending upon their Quota


Objec To assign and process Purchase Requisitions



186

Select the 1st Req & Click on

Assign Automatically.

.

Objec

tive

To assign and process Purchase Requisitions





187

Dependingupon the

Quota‟s thesystem willassign the Vendors.

Objec

tive






188

Select the 1st Req & Clickon Assignments.

Objec

tive






189

VendorInformation isdisplayed.

Objec

tive






190

Click on the vendor &

save the documentthen click on Process Assignment.

A Purchase Order Dialog Box will open and you will have to click on ok to draft in the Purchase Order.

Objec

tive



Objec To create a Purchase Order with reference to a



191

Select thePurchaseRequisition &

Click adopt.

j

tive

To create a Purchase Order with reference to a



Objec To create a Purchase Order with reference to a



192

ClickonSave

Objec

tive

To create a Purchase Order with reference to a



Objec To display a Quota arrangement



193

Objec

tive

To display a Quota arrangement

Note that the

allocated qty haschanged on theaccount of qtycovered under theearlier 2 requisitions.

Agenda

Automatic Automatic Purchase Order is a



194

Automatic

creation ofPurchaseOrder

Automatic Purchase Order is a

process by which the systemautomatically creates the purchaseorders from a particular PurchaseRequisition

Duration(Hours)

1

Objective To be familiar with the process of

Automatic Purchase OrderPre-requisites Knowledge about Material Master,

Vendor Master, Info Record, SourceList & Purchase Requisition


Concept



195

• Automatic Purchase Order is a process by which the systemautomatically creates the purchase orders from a particularPurchase Requisition

Demo 1_Automatic Purchase Order



196


Material Master

Automatic

Creation ofPurchase OrdersFrom

Requisitions

MaintainingSource List

Creation ofInfo Record


Vendor Master

Creation PurchaseRequisition

PROCESS FLOW

•Click on the text mentioned inside the Box to go to the respective slides.


Objecti To make settings in Material master for



197

Objecti

ve

To make settings in Material master for

Automatic PO to be enabled.


Objec To make settings in Vendor master for



198

Objec

tive To make settings in Vendor master for

Automatic PO to be enabled.


Object To make settings in Info Record for Automatic



199

Object

ive

To make settings in Info Record for Automatic

PO to be enabled


Objec To maintain source list in order to enable



200

j

tive Automatic Purchase Order


Objec

To create a Purchase Requisition.



201

j

tive

q


Objec To create Purchase Orders automatically from



202

j

tive

y

Purchase requisitions

Click Here


Objec To observe the Purchase orders created



203

Note the Following

j

tive automatically

Agenda

Account It is a option in a Purchase Order by



204

Assigned PO

p y

which procurement of material ispossible for direct consumption

Duration

(Hours)

1

Objective To be familiar with about Account Assignment PO

Pre-requisite Purchase Order Creation

Coursecontent

•Definition

•Concept

•Purpose of ProcurementsNote – Fields in red boxes are mandatory fields.

Account Assigned PO



205

•

It is a option in a Purchase Order by which procurement of material is possiblefor direct consumption.

Procurement of external services



206

Externalservices

Company occasionally requires smallmaintenance tasks( for example, changingthe defective lights ) to be carried out byexternal contractors. This is called service

PO or External services management.

Duration(Hours)

1

Objective To be familiar with the process of Serviceprocurement of external services

Pre-requisites

• Procurement of materials

Course Introduction


Introduction



207

• How does your company procure an external service?

• Company occasionally requires small maintenance task ( forexample, changing the defective lights, house keeping, painting ) tobe carried out by external contractors. This is called Externalservices management or service PO

• Procurement of services are of two types :

• planned services

• un planned services

Concept



208

• Master records for creating service PO:

• Service master record

• Master conditions for services

• Standard service catalogue

• Model service specifications

• A service master record contains a service description and unit ofmeasure.

• Assign a price to each service master record via conditions or canbe entered manually.

Concept



209

• Stock material are subjected to inventory management, whereasservices are procured for direct consumption for eg., a cost centre,a project

• The system stores services that have been performed in serviceentry sheets. The relevant postings are made in financial accountingand cost accounting.

Concept



210

• When entering the services , you reference the purchase order. Youcan copy the planned services directly from the purchase order intothe service entry sheet.

• Un planned services can be entered manually.

• The invoice verification procedure is carried out with referencepurchase order.

This means that all service entry sheets accepted for this purchase

order aresuggested for invoice verification.



Process Flow



212

DeterminationofRequirements Creation of

Servicespecifications

Source

determination

PO processing

Bid invitation

Quotation entry

Award phase

PO monitoring /Follow-up

Service entry

sheet

Serviceacceptance

Invoice verification

Payment

Demo1_Procurement of External services

Objecti To Create a Service PO – ME21N



213

ve

Demo1_Procurement of External services

Objec Create service entry sheet – ML81N



214

tive

Demo1_Procurement External services

Objec Invoice verification - MIRO



215

tive

Concept



216

• Scenario handled in MM for Procurement for Consumption is Account Assignment of PO

• In Account Assignment while doing GR the relevant GL account getsDebited

Options of Account Assignment



217

• Single Account Assignment

• Multiple Account Assignment

Purpose of Procurement



218

• Procurement for Stock

• Procurement for Direct Consumption

Procurement for Stock

Procurement for Consumption

Account Assignment Category



219

A key indicating whether an item is to be assigned to an auxiliary account(such as cost center) . The account assignment category determines which

account assignment details are required for the item for ex : cost center or

account number.

Account Assignment Category



220

• Usage of Account Assignment Category in MM

ASSET

Cost CentreProduction Order

Project

Sales Order

Order

Purchase Order

Procurement for stock v/s consumption

Procurement for Procurement for



221

Procurement for

Stock

With Mat.MasterRecord

AccountAssignment

AutomaticAcc.Assgt

Data from Mat. Master

Stock Account

Procurement for

Consumption

With Mat.MasterRecord

Enter Acc. Ass.Category

Manual Acc. AssgnData Entry Required

ConsumptionAcc.Cost Centre

Asset

Without Mat.Master Record

Procureme

nt for

Procurement for

Consumpti

Procurement for stock v/sconsumption



222

Material Number isRequired

No Account AssignmentCategory

k

Material Number is not mandat

and it is possible

Account Assignment Categorymandatory

Posting to Consumption Accoun

Stock on

Demo1_Account Assigned PO

Objec To Create Account Assignment PO by using Cost



223

tive Centre

Demo2_Customising settings

Objec To Maintain Account Assignment Category



224

tive

Demo2_Customising settings

Objec Defining combination of Item Category &



225

tive Account assignment category



Introduction



227

• What is a release procedure in the SAP R/3 System?

• How does your company currently handle this approval process?

• What criteria currently drive your approval process?

• Who currently has to approve your documents?

• Do certain people have to approve before others?

• What happens if your documents are not approved?

Concept



228

Release Procedure is the electronic approval process for releasing /approving any purchase document in SAP.

It can be used to release internal documents such as Purchase Requisitionor external documents such as Purchase order, contract, scheduling

agreement.

Release procedure are of two types



229

• Release procedure with classification

• Release procedure without classification

Demo1_Release Procedure with Classification



230

Creation ofCharacteristics

Grouping theCharacteristicsin a Class

Defining theReleaseProcedure

Definition ofRelease Group

Definition ofRelease Codes

Definition ofReleaseIndicator

Creation ofRelease

Strategies

Defining theRelease

Prerequisites

Specify theRelease Status

for eachRelease Code

ClassificationSimulation of

ReleaseStrategy

Characteristics



231

Characteristics are the criteria upon which release condition aresatisfied.

Example - Plant, Account Assignment Category, Total Value,Material Group etc.


Objec To create different characteristics for the release



232

tive procedure

Click on “EditCharacteristics”





233

tive procedure





234

tive procedure





235

tive procedure

Class



236

Class is used to group together characteristics that are used to constitute arelease condition for release strategy.


Objec To group the Characteristics in a class



237

tive

Click on EditClass


Objec

To group the Characteristics in a class



238

tive

Release Group



239

It is the grouping of one or more release strategies. This permitsmultiple usage using the same release key.

Example

Release group 01 is defined for purchase requisitions and releasegroup 02 for purchase orders. You can define release strategy S3for both purchase requisitions and purchase orders.


Objecti To define a Release Group



240

ve:

Click on “Define

Release Procedure”


Objecti To define a Release Group



241

ve:

Click on “ReleaseGroups”

Release Code / Point



242

It is a two-character ID given to a person to release (approve) apurchasing document.

Example

– 01,02,…… or AA, AB,…

– EN for Engineer, MG for Manager etc.


Objecti To define a Release Code



243

ve:

Click on “DefineRelease Procedure”





244

ve:

Click on “Release

Codes”





245

ve:

Define ReleaseCodes here andtheirdescriptions

Release Status / Indicator



246

It is a code that represents a release status.

The release status is the current “standing” of the item orthe purchase document.

Example

If the proper approval has not yet been received, the releasestatus would display as “blocked.” The status tells the systemwhat is allowed for the item or document


Objecti To define a Release Indicator



247

ve:

Click on “DefineRelease Procedure”





248

ve:

Click on “DefineRelease Indicator”





249

ve:

Define ReleaseIndicators here

Release Pre requisite



250

It indicates the order in which individual release codes may releasethe purchasing document.

Example

01,02,03 are release codes. 03 has prerequisite of code 02 and 01,which means 03 can release the document only if 01 and 02 havereleased it.


Objecti To define a Release Pre-requisite



251

ve:

Click on ReleaseStrategies





252

ve:

Double Click onRelease

Strategies





253

ve:

Click on ReleasePre requisites





254

ve:

Flag the releasecodes in therequiredsequence andclick on continue


Objecti

e

To define a the status of the purchase

d t ft h l



255

ve: document after each release

• Click onRelease status

• Flag theRelease codes


Objecti

ve:

To define a the classification of the release

strategy



256

ve: strategy

Click onClassification


Objecti

ve:

To define a the classification of the release

strategy



257

ve: strategy• Give the

differentvalues for the

characteristics

• Click on theright arrow as

indicated to goback to thereleasestrategy screen



Demo3_Release of a Purchase Order

Objecti

ve:

To Release a Purchase Order



259

ve:


Objecti

ve:

To Release a Purchase Order



260

ve:

Click onIndividualrelease




261




262

P O released

by all therelease codes

Agenda

Pricing and

Conditions

The term Pricing is used broadly todescribe the calculation of prices & costs.Conditions enables you to store pricing



263

Conditions Conditions enables you to store pricingstipulations agreed with the vendor

Duration

(Hours)

3

Objective To be familiar with Pricing and Conditions

Pre-requisites

•Info record

•Material master

• Vendor master

•Purchase Order

Course • ConceptNote – Fields in red boxes are mandatory fields.

• Pricing

Concept



264

• Pricing• The term Pricing is used broadly to describe the calculation of

prices & costs

• Pricing in SAP is triggered through principle of ConditionTechnique.

• Gross price

• Price excluding any possible discounts or surcharges

• Net price

• Price taking discounts, surcharges, and possibly taxes into

account• Effective price

• Net price plus delivery costs, cash discount, and miscellaneousprovisions for accrued costs or rebates

Concept

• Conditions



265

• Conditions• Conditions enables you to store pricing terms agreed with the

vendor

• Time dependent Condition

• Validity periods and scales can be specified for these conditions.

• Time independent depend Condition

• No validity periods and scales can be defined for these

conditions.

• Condition technique

– Specifies method by which the system determines prices frominformation stored in condition record

Important Data for Conditions and Pricing

Key / Description Control

Condition class : Prices



266

PB00Gross Price

FRB1Freight Absolute

SKTOCash discount

Condition class : PricesCalculation Type : Qnty dependentCondition category : Base PriceAccess sequence : Gross price

Condition class : Discount/surcharge

Calculation Type :Fixed amountCondition category : Delivery cost

Condition class : Discount/surchargeCalculation Type : PercentageCondition category : Cash discount

Condition Technique

• Access sequence



267

• Access sequence• It is a search strategy which searches for valid records of a

certain condition types.

• Condition Type

• It represent pricing elements in the system,

• Example - percentage discounts ,freight costs, taxes orcustom duties

• Condition Table• A combination of fields that defines the key of a condition

record.

Condition Technique

• Calculation Schema



268

Calculation Schema• A calculation schema groups together all condition types

that play a part in calculating the price. It sets out the orderin which the condition types are taken into account in thecalculation.

• Schema Group• Group of vendor or purchase organization that use same

calculation schema.



Schema Determination

Pur order



270

Schema

gr pur

org

Schema

gr

vendor

Calculationschema

RM0000

XM0000

0001 01 YM0000

0002 02 ZM0000

Pur order

Pur org 1000

Vendor A

VendorSchema group 02

A




271

• The condition group embraces a number of different materialssupplied by a vendor to which a uniform discount or surchargeapplies.

• The condition group is a freely definable, four-character,alphanumeric string that is assigned in the info record.


Condition Group

Info record



272

Condition GroupVendor A

Material 1

Condition Group XY

Info record

Vendor A

Material 2

Condition Group XY

Info record

Vendor A

Material 3

Condition Group XY

Condition Group RGRO

Vendor A

Condition Group XY2 % discount

Purchase Order

Item Material Price

10 1 100

2 % discount

• 2 150

2 % discount

30 3 200

Price Determination Process



273

• When you create a PO, a contract release order, or a deliveryschedule, the R/3 System searches existing documents for validconditions and adopts it it as default values in the newdocument.

• The price determination process is carried out in a number ofsteps:

• First, the relevant calculation schema is determined.

• Then the system searches for condition records for all conditiontypes listed in the calculation schema that have an access

sequence assigned to them.• The search for condition records is carried out in the order

specified in the access sequence.

• The search is concluded when a valid condition record is found.



Header, Item & Group Condition



275

• Header conditions are entered in the header of a document andrelate to all the items of that document.

• Item conditions are conditions relating to a single item of a

document.

• If the same condition occurs in different document items, theitem values are added up and the result used as the basis fordetermining the scale level.

• If the condition type is entered at header level, the value isdivided among the items




276

Condition Exclusion

d l d



277

• Condition exclusion procedure:

• If several condition records are valid for price determinationpurposes , you can define rules specifying which conditionrecords are to be chosen and which are not to be taken into

account.• An exclusion group is a list of condition types that are

compared with each other during the price determinationprocess and lead to the exclusion of an entire group ofcondition types or individual condition types within a group.

Condition Records & Condition Tables

Condition table A017 (info record with Plant )

Conditiontype Vendor material Pur org Plant - - - - - -

Condition

record No



278

( )

Condition table A018 (info record with out Plant)

table KONP item condition

PB00 A 1 1000 1000 - - - - - - 1234

Conditiontype Vendor material Pur org - - - - - -

Conditionrecord No

Conditionrecord No Conditiontype - - - - - - ConditionAmount

PB00 A 1 1000 - - - - - - 4321

1234

4321

PB00

PB00

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

10.0

11.0

Demo1_Customizing Conditions and Pricing

Object

ive

To create an Access Sequence



279

Select 002for grossprice andclick onAccess

ive


Object

ive

To create an Access Sequence



280

ive


Object

ive

To define Condition types



281

ive


Object

ive

To define Condition types



282

SelectPB00And clickon detailbutton

ive


Object

ive

To define Condition types - Control Data



283

ive


Object

ive

To maintain Condition tables



284

ive


Select a table No. other then from the

Object

ive




285

Select a table No. other then from thelist Eg - 965

ive


Object

ive




286

Select theRequired fieldfrom the cat

log and doubleclick on it


Object

ive

To define Condition control at plant level



287


Object

ive

To define Calculation Schema



288

SelectRM0000

And clickon control


Object

ive

To define Calculation Schema



289


Object

ive

To defining a Schema determination



290

Select thecalculation

schema


Object

ive

To defining a Schema determination



291

RM0000 iscalculationschema for

standardPO


Object

ive

To defining a Schema Group



292

Double click onrespectiveSchema groups


Objec

tive

Defining Condition Exclusion



293

Click fordefining

condition

exclusion


Objecti

ve




294


Objec

tive




295

Assignment of ConditionExclusion to Condition Types


Objective




296

Assignment

of ConditionExclusion toCalculation

Schema

Demo2_ Creating purchase order

Objective

To observe the conditions in a purchase order



297

HeaderConditions

Demo2_ Creating purchase order

Objective

To observe the conditions in a purchase order



298

Itemconditions

Curriculum


2.Organization Structure

3. Master Data



299

1. Material Master

2. Vendor Master


4. Purchasing5. Inventory Management



8. Batch Management

9. Physical Inventory10.Consumption Based Planning



Agenda

Goods

Receipt

Goods Receipt is the term used to

describe an increase in warehousestock due to receipt of goods from



300

pstock due to receipt of goods fromexternal vendors or from internalstock transfer

Duration(hours)

1

Objective To get familiar with Goods ReceiptPre-requisites

•Material Master

•Info Record

Goods Receipt



301

The term used to describe an increase in warehouse stock dueto receipt of goods from external vendors, from internal stocktransfer, as initial stock balance or for quality inspection.

Reference documents for Goods Receipt are

• Purchase Order



302

• Order

• Reservation

• Inbound delivery

• Outbound delivery

Effects of a Goods Receipt

• Stock & Consumption A/c updated• Material & Accounting document created



303

g

• Stock and value updated in material master

• PO /PO history update

• QM lot created.

Demo1_ Goods Receipt for PO

Objective

Goods Receipt for PO (MIGO)



304

Agenda

Goods Issue A reduction in warehouse stock due

to a withdrawal of stock or thedelivery of goods to a customer.



305

y g

Duration(Hours)

1

Objective To get familiar with Goods Issue

Pre-requisites Purchase Order

Course

content

•Introduction

•Concept

•Goods Issue - General•Demo1_Goods Issue – WithoutNote – Fields in red boxes are mandatory fields.

Introduction

• A reduction in warehouse stock due to a withdrawal of stock or thedelivery of goods to a customer.



306

Features

The Inventory Management system supports the following typesof goods issues:



307

– Withdrawal of material for production orders

– Scrapping and withdrawal of material for sampling

– Return deliveries to vendors

– Other types of internal staging of material – Deliveries to vendors without the involvement of the SD Shipping

component

Purpose

Companies usually differentiate between various typesof Goods Issues, each of which is handled in R/3



308

of Goods Issues, each of which is handled in R/3system as follows.

• Stock Scheduled for Delivery

• Material Withdrawals for Production Orders

• Other Types of Internal Staging of Material

• Return Deliveries to Vendors

• Scrapping/Sampling

Demo1_Goods Issue_ Without Reference

Objective

To post a Goods issue



309

Demo1_Goods Issue_ Without Reference

Objective

To post a Goods issue



310

Demo2_Goods Issue _ With Reference to Reservation

Objective

To post a Goods Issue With reference ToReservation



311



Results Of A Goods Issue Posting

A goods issue has the following results in the system.

• Material document is created• Accounting document is created



313

Accounting document is created

• Goods receipt/issue slip is created

• Stock update

• Update of G/L accounts• Consumption update

• Reservation update

• Order update

Agenda

Transfer This component helps us tot i i ht th



314

Posting get an insight on the processof Transfer Posting.

Duration(Hours)

½ Hr

Objective To get familiar with Transfer

Posting

Pre- Material Master, MovementTypes


Introduction

• What do you mean by Transfer Posting?



315

• What is the difference between a stock transfer and a transferposting ?

Concept

• A Transfer Posting usually refers to a change in a materials stockfor example release from quality inspection, accepting consignmentmaterial etc



316

material, etc.

Demo1_Transfer Posting Process

Objective

To get to know the status of the Material



317


Objective

To get to know Quantity of Material in QualityInspection and to transfer to Unrestricted use.



318


Objective

Transfer all the stock from Quality toUnrestricted use



319


Objective

Transfer all the stock from Quality toUnrestricted use



320


Objective

Observe the Stock Balances



321


Objective

Observe the Stock Balances



322

Agenda

StockT f

This component helps us toget an insight on the Stock



323

Transfer get an insight on the StockTransfer process.

Duration(Hours)

1 Hr

Objective To get familiar with process

of Stock Transfer

Pre- Material Master, MovementTypes




Concept

•Stock Transfers are components used to remove stock from onestorage location and place them in another storage location.



325

• Depending upon the organization of the company and it‟s salespolicy, internal stock transfers also might be necessary.

Stock Transfers can occur at 3 different levels

• Stock Transfer from Company Code to Company Code

Stock Transfer from Plant to Plant



326

• Stock Transfer from Plant to Plant

• From Storage Location to Storage Location (within a Plant)

Stock Transfers can be carried out in 3 different ways

• Stock Transfer using the 1 step procedure




327


• Stock Transfer using the Stock Transport order

Demo1_ Stock Transfer Plant to Plant -1 Step

Objective

Check for stock balance of Material, “Fluconazole” in Plant 1000



328


Objective

Check for stock balance of Material, “Fluconazole” in Plant 1000



329


Objective

To transfer 20 Qty of Material, “Fluconazole”from Plant 1000 to Plant 1100



330


Objective

To transfer 20 Qty of Material, “Fluconazole”from Plant 1000 to Plant 1100



331


Objective

To check whether 20 quantity of Fluconazole isreceived in Plant 1100 after the stock transfer.



332


Objective

To check whether 20 quantity of Fluconazole isreceived in Plant 1100 after the stock transfer.



333

Agenda

Reservation A request to the warehouse to keepmaterials ready for withdrawal at a later

date and for a certain purpose.Duration 1



334

Duration(Hours)

1

Objective To get familiar with Reservation

Pre-requisites

Material master and Purchase Order.

Coursecontent

• Concept

• Demo1 Create Reservation

Reservation

• Make a request to the warehouse to keep materials ready forwithdrawal at a certain date and for a certain purpose. it



335

p psimplifies and accelerates the Goods receipt process.

• A reservation for goods can be requested by variousdepartments for various account assignment objects (such ascost center, order, asset, etc.).

Manual and Automatic Reservations

• In R/3 system Manual reservations are entered directly by the



336

• In R/3 system Manual reservations are entered directly by theuser.

• In R/3 system Automatic reservations are generated

automatically by two types.• Reservations for orders, networks, WBS elements:

• The components from the warehouse are automaticallyreserved When an order, a network, or a project iscreated.

• Stock transfer reservations:• The system generates a stock transfer reservation in the

plant for the replenishment quantity when the availablestock on hand falls below the reorder point If reorder



• In Inventory Management Choose, Reservation -> Create.

• The initial screen appears, Enter the following data:

• Base date

Creating a Reservation



338

Base date

• Movement type

• Plant

• The collective entry screen appears.

• Enter an Account Assignment

• Some of the account assignment fields (for example,G/L account) need not be maintained manually. Therelevant information is automatically copied from the

account assignment object

• Enter a G/L Account

• If you do not enter an account, the system willautomatically determine the G/L account when the

Creating a Reservation Using a Reference Document

• You use this function to copy items from an existing reservationwhen entering a new reservation. When doing this, In Inventory



339

g g yManagement Choose, Reservation -> Create.

• Enter the base date of the new reservation. Enter a movement

type only if you want a movement type that differs of thereservation to be copied.

• Enter the reservation No. to be copied in the Reservation field(under Ref.).

• You can also choose Reservation -> Create w. reference To

reference.• The item selection screen is displayed. The list contains all items

from the reference reservation. If necessary, change the accountassignment.

• Select the items to be co ied to the new reservation. You can

Displaying a Reservation

•

• Display an individual reservation (MB23)

http://help.sap.com/saphelp_46c/helpdata/en/a5/63372043a211d189410000e829fbbd/frameset.htm



340

Display an individual reservation (MB23)

• In Inventory Management Choose, Reservation ->Display.

• Display a list of all reservations(MB25)

• In Inventory Management Choose, Reservation ->Reservation list.

Changing a Reservation

•

• Even after withdrawn the reserved quantity, You can change a



341

e a te t d a t e ese ed qua t ty, ou ca c a ge amanual reservation at any time.

• You can change the data (for example, quantity or storagelocation) directly on the collective processing screen. Alternatively, you can select one particular item and change thedata on the detail screen

• You cannot change the account assignment data (for example,cost center or order). If the account assignment is incorrect, youmust delete the reservation and enter a new reservation.

Demo1_Create Reservation

Objective

To create a reservation



342


Objective




343


Objective




344

Agenda

Sub –Contracti

ng

The vendor (the subcontractor) receivescomponents from which he manufactures

a product. The product is ordered in apurchase order. The components requiredby the vendor to manufacture the ordered



345

by the vendor to manufacture the orderedproduct are listed in the purchase orderand provided to the subcontractor

Duration(Hours)

2

Objective To become familiar with Sub-Contacting

Pre-requisites

• Info record,

• Material master

• Vendor master

This unit will cover

• ( Purchase order ) Sub-Contacting order

Sub-Contracting



346

( Purchase order ) Sub Contacting order

• Provision of parts for sub contracting

• Goods receipts and postings• Posting a Subsequent Adjustment

• By-products in Subcontracting

• Subcontracting for Project and Sales order stock

• Scheduling Agreements with Subcontracting



• In PO screen, enter the material number which you want to order thevendor and item category as „L‟. Other entries as applicable for the PO.

• The components being supplied from the enterprise shall be manually

Creating a Subcontract Order



348

• The components being supplied from the enterprise shall be manuallyentered or by means of BOM explosion.

• The requirement date of the material need not be entered which will beautomatically calculated by the system. i.e delivery date of the itemminus planned delivery time.

– To post components from the unrestricted-use stock to the stock ofmaterial provided to vendor, proceed as follows:

Providing Components With No Order Reference

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b905543ad11d189410000e829fbbd/frameset.htm



349

– From the Inventory Management menu, select Goods movementTransfer posting.

– Enter the issuing plant ,storage location. &Choose Movement typeTransfer posting Stock with subcontractor From unrestricted use

– Press ENTER. The collective entry screen appears. – Enter a vendor and the individual items.

– Post the document.

• If components to be provided to the subcontracting vendor are suppliednot by your company but by a third-party, you can order thecomponents from the third-party and specify the subcontractor in the

Providing Materials From Another Vendor

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b906f43ad11d189410000e829fbbd/frameset.htm



350

p p y p ypurchase order as the delivery address. At GR, the components areposted directly to the stock of the material provided to vendor.

• To order components for a subcontract order from a vendor and havethem delivered direct to the subcontractor, enter a standard purchaseorder with a different delivery address

Providing Materials From Another Vendor

• From the Purchasing menu, choose Purchase order Create Vendor known.



351

• Maintain the data on the initial screen. Make sure you enter thevendor of the components and the plant concerned. Enter theitems.

• Then choose Item More functions Delivery address. Adialog box appears in which you enter the delivery address ofthe subcontractor.

• In the field Vendor, enter the number of the subcontractor and

select the SC vendor box. Selecting the box causes thecomponents at goods receipt to be posted directly to the stockof the material provided to vendor when the goods receipt isposted.

• Save the purchase order.

• When the vendor delivers the end product (semi-finished item), youpost a GR for the subcontract order in the same way as for a standard

PO. The system determines the components for each order item andcreates a goods issue item for each component.

Posting the Goods Receipt of the Components



352

• As a result, the material document consists of Goods receipt items forthe materials supplied by the vendor and Goods issue items for thecomponents

• After you have copied an order item, you can change the quantities inthe goods issue items.

• A goods receipt posting has the following results in the system:

• the stock of material provided to vendor at plant level is increased.The stock of material provided to vendor is not managed at storagelocation level, since the stock is no longer stored at your company.

• Valuated stock at plant level increases.

• If the subcontractor informs you after these GR postings that agreater or smaller quantity of the components was actuallyconsumed than planned in the purchase order, you must post a

Posting a Subsequent Adjustment



353

p p , y psubsequent adjustment to correct the component consumption. Ifthe component is a by-product, you must post the corrected by-product receipt (excess receipt) or by-product issue (short receipt).

• When returning subcontracting components (under-consumption),the system checks that the quantity returned is not larger than thequantity originally transferred to the subcontractor. This check takesplace on material and plant level.

Posting a Subsequent Adjustment

• In the transaction goods movements MIGO, select the businessoperation Subsequent Adjustment from the list box. The systemautomatically chooses PO as the reference document. Enter thedocument number of the PO and the item number for which you



354

document number of the PO and the item number for which youwant to post a subsequent adjustment.

• For the selected item, enter the difference quantity specified bythe vendor and determine with the Under-consumption/ShortReceipt indicator, whether a receipt or an issue is concerned. Ifyou set the indicator, it is an under-consumption or shortreceipt. If you do not set the indicator, it is an excess

consumption or excess receipt. Post the subsequent adjustment.

• The specified quantities of the originally posted GR are correctedby the system to the subsequently adjusted quantities

• In the GR for the Sub-Contract purchase order, the systemautomatically posts the receipt of the by-products. (In the materialdocument, you can identify the by-product items from theirmovement type 544. Note that the by-products are posted to the"stock of material provided to vendor“, also referred to as

By-Products in Subcontracting

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b90a343ad11d189410000e829fbbd/frameset.htm



355

stock of material provided to vendor , also referred to as"subcontracting stock"). The receipt can still be corrected using theSubsequent Adjustment function.

• Due to the receipt of the by-products, the value of themanufactured material is reduced.

• To transfer the by-products quantities from the "stock of material

provided to vendor" (or subcontracting stock) to the unrestricted-use stock, you enter a transfer posting using movement type 542(reversal of the provision of the components).

•

• The subcontracting orders are account-assigned to a sales order ora WBS element. Thus, the components are not transferred (using atransfer posting) to the "stock of material provided to vendor" but

Subcontracting for Sales Order Stock and Project Stock

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b90b043ad11d189410000e829fbbd/frameset.htm




356

are directly withdrawn from the sales order stock or the projectstock at the time of the GR. The material manufactured is also

posted to the sales order stock or to the project stock. The cost ofsubcontracting is then debited to the sales order or WBS element.

• To enter several delivery dates for a subcontract order item,• Display the scheduling screen for the item and enter the

quantities and dates.

• If the ordered material has a bill of material, the components arecopied from the bill of material.

Entering Scheduling agreement and Delivery Schedules



357

• If you do not use bills of material, you must either enter thecomponents manually or refer to an existing purchaserequisition. You have to enter the components for every deliveryschedule.

• Position the cursor on a schedule line and choose Item

Component Overview to display the screen for processingcomponents. You can enter or change the individual components inthe same way as an order item.

Entering Scheduling agreement and Delivery Schedules



358

• To make entering the schedule lines easier, copy the componentsfor other delivery schedule items. To do this, select Edit Repeat

components

Activate • Save the delivery schedule.

• When you print the scheduling agreement, the quantity required percomponent and date required are reprinted.

Demo_1 Creating a Sub-contact PO

L – Item Category forSub-Contracting

To Enter aComponents forMain material

Objective To create Sub-Contracting Purchase Order



359

Main materialClick on

ComponentsOr click on

Explode BOM

Demo_1 Creating a Sub-contact PO

Objective To enter components in the Sub contract PO



360

Enter componentsrequired forMain Material

Special stocks

Specialstocks

Special stocks are stocks that aremanaged separately because, they do

not belong to your company or beingstored at a particular location



361

Duration

(Hours)

3

Objective To become familiar with special stock

Pre-requisites

Info record, material master and vendormaster and Purchase order

Coursecontent

• Concept

• Consignment Stocks

Concept

• Special Stocks

• Special stocks are stocks that are managed separately, Becausethey do not belonging to your company or being stored at aparticular location



362

particular location

• Special stocks and special procurement types are divided into thefollowing areas.

• Consignment

• Third-party processing

• Returnable transport packaging

• Pipeline handling

• Sales order stock• Project stock

• Subcontracting

• Stock transfer using stock transport order

Consignment Stocks

• The vendor provides materials and stores them in your premises. The

vendor remains the legal owner of the material until you withdrawmaterials from the consignment stores.

• The advantage of this is that the company‟s liabilities increase only for



363

g p y ythe quantity withdrawn.

• Only then is the vendor required to pay. The invoice is due at set

periods of time, for example, monthly.

• You can procure consignment material via purchase requisitions,

purchase orders and outline agreements for consignment material.

• Creating Purchase Requisitions for Consignment Material

Procurement of Consignment Material



364

• You enter purchase requisitions for consignment materials in exactly

the same way as for other materials.

• You accept the order category (such as NB) that the systemproposes as a default and enter the item category K (forconsignment).

• The procedure for creating consignment orders is the same as forstandard purchase orders or outline agreements. However, youmust note the following

Creating Purchase Orders / Outline Agreements for ConsignmentMaterials



365

• Enter the item category K for the consignment item. Ensure that the

goods receipt is posted to the consignment stores

• Do not enter a net price in the Purchase Order

• From the Inventory Management menu, choose Goods movement Goods receipt For purchase order PO number

known . The initial screen is displayed.

Goods Receipt for Consignment Purchase Order



366

• Enter the purchase order number to which the goods receipt refers.

You can also enter the plant and storage location.

• Select the movement type with Movement type PO to warehouse .

Press ENTER to display the item overview.

• Select the items you wish to process and check the quantitiesdelivered. If required, enter a stock type in column S. Copy (adopt)the selected items.

• Choose Goods movement Goods receipt Other from theInventory Management menu.

• On the initial screen choose Movement type Receipt W/o purchaseorder To consignment unrestricted . Enter the plant and storage

l ti

Goods Receipt Without Purchase Order



367

location.

• Press ENTER to display the collective entry screen.

• Enter the vendor number.

• Enter the number and quantity of the consignment material.

• Post the goods receipt.

• After a GR for consignment material has been posted, the

consignment stock of the material increases &This is stock isavailable for MRP.

Ho e e the mate ial's al ated stock does not inc ease since

Updating of Consignment Stock



368

• However, the material's valuated stock does not increase sincethe consignment stock still belongs to the vendor.

• Displaying the stock overview

From the Inventory Management menu, choose Environment Stock Stock overview. Maintain the data on the initial screen and carry out theevaluation. An overview is displayed of your own stock and theconsignment stock according to your selection criteria

Consignment Stocks



369

consignment stock according to your selection criteria.

• Displaying consignment stocks

This function allows you to display the consignment stocks. From theInventory Management menu, choose Environment Consignment Vendor consignment Stock. Maintain the data on the initial screen and

carry out the evaluation

•

• You can only post a goods issue from consignment stock toconsumption, if the material belongs to unrestricted-use stock. If theconsignment material is in quality inspection or blocked stock, you mustfirst transfer it o the unrestricted use stock

Goods Issue from Consignment Stock

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b8f9a43ad11d189410000e829fbbd/frameset.htm



370

first transfer it o the unrestricted-use stock.

• From the Inventory Management menu, choose Goods movement Goods issue. Enter the data as required, including movement type,

account assignment object.

• After the goods issue, the vendor is due the net value of the goods

issue.

•

• From the Inventory Management menu, select Goods movementTransfer posting. The initial screen is displayed.

• Enter the plant and the issuing storage location. Choose Movementtype Transfer posting Consignment SLoc unrestricted use. To

Transferring Consignment Stocks

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b8fa743ad11d189410000e829fbbd/frameset.htm



371

yp p g gunrestricted use. (It is also possible to transfer quality inspection

stock or blocked stock).

• Press ENTER. The collective entry screen appears.

• Enter Receiving storage location, Vendor, Material and Quantity.

• Post the stock transfer.

• The transferred quantity is now managed in the consignment stockof the receiving plant.

• • Removing material from consignment stores or transferring material toyour

company‟s own stock results in liabilities towards the vendor. You shouldsettle

these liabilities at regular intervals.

Settling Consignment Liabilities



372

• Consignment materials are settled without the vendor issuing aninvoice. The

vendor can only manage its consignment stock by taking deliveries andpayments into account.

• You settle posted withdrawals and return deliveries yourself in logisticsInvoice

verification and send the vendor a statement of the settlement. You canperformthis settlement periodically in the background. The documents involved

areInvoices and Credit memos.

Pipeline Stocks

• A pipeline material is a material that flows directly into the

production process from a pipeline (for example, oil, tap water,electricity).

• the pipeline material is always available, i.e. it can be withdrawn



373

p p y ,from the pipeline at any time and in any quantity.

• They are not stored or kept in stock. No physical inventory is taken.

• Pipeline movements are mandatory in all valuation areas; i.e. noother goods movements may be posted.

• Creating a Pipeline Material

• When creating a pipeline material, it is important that you notethe following:

• Assign the material to material type PIPE that allows pipelinemovements.

•

• You determine the price of a pipeline material from a vendor in a

pipeline info record.• You create a pipeline info record as follows:

• F th P h i h M t d t I f d

Creating a Pipeline Info Record


http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b927e43ad11d189410000e829fbbd/frameset.htm



374

• From the Purchasing menu , choose Master data Info recordCreate .

• Select the info category Pipeline & On the initial screen enter thevendor, material and standard purchasing organization assignedto the plant.

• Maintain the info record data and save.

•

• If only one pipeline info record has been defined, Then itappears as a default when you post goods movements.

Maintaining the Source List





375

• If you have more than one pipeline info record for a material,you can enter the preferred vendor in the source list. This

vendor then appears as a default when you enter goodsmovements. If no vendor has been entered in the source list,you have to select a vendor with every goods movement.

Posting Goods Issue from the Pipeline

• A withdrawal from the pipeline is posted as follows:

• From the Inventory Management menu, choose Goodsmovement Goods issue .



376

• Maintain the data on the initial screen. Choose

Movementtype Consumption To cost center (or order, network,account assignments) From pipeline (Movement types :201 P, 261 P, 281P, or 291 P)

• You do not have to enter the vendor

• If more than one vendor exists, a pop-up window appearswith a list of pipeline vendors, from which you can select the

• A Goods Withdrawal from the pipeline results in the following updates inthe

system:

• The vendor liability that must be settled periodically in a similarway to the management of consignment stocks

Pipeline Stocks



377

way to the management of consignment stocks.

• A consumption history is kept.

• The pipeline withdrawal has no effect on existing warehousestock or

on the availability of the material.

•

• If pipeline and consignment liabilities are to be posted to thesame account, you have to settle consignment and pipelineliabilities together.

Settling Pipeline Liabilities

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b92a543ad11d189410000e829fbbd/frameset.htm



378

• If pipeline and consignment liabilities are to be posted to

different accounts, you settle them separately.

• You settle pipeline liabilities for a vendor in the same way thatyou settle consignment liabilities.

• Third-Party Processing

• In third-party processing, you place a purchase order with a

vendor to deliver goods or perform a service for a customer(third party).

• This means that your company forward the order to an externalvendor who then sends the material directly to the customer and

Third party Stocks



379

vendor who then sends the material directly to the customer andinvoices you.

Order

Company

PO

VendorCustomer Delivery(Goods )

• Third-Party Processing in Sales

• If a material can only be procured externally, you can specify it

in the material master record that it is always processed as athird-party item when a sales order is processed.

• Resulting Activities in Purchasing

• A purchase requisition is automatically created when a Sales

Third party Stocks



380

• A purchase requisition is automatically created when a SalesOrder is created

• If a third-party item from the sales order calls for more than onedelivery schedule, the system creates a purchase requisitionitem for each individual quantity.

• The number of the purchase requisition is updated in the salesorder.

• The item is scheduled automatically.• The delivery time required by the vendor and the processing

time in Purchasing are taken into account.

•

• If you do not use SD, you can plan a third-party business transaction

using apurchase requisition as follows

• E t th it t „S‟ d t i t t

Creating a Third-Party Item Manually



381

• Enter the item category „S‟ and an account assignment category

• Enter the account assignment data (for example, the number ofthe G/L account). Which account assignment data you have tomaintain depends on the account assignment category.

• Save the purchase requisition.

• A third-party order is usually created referencing a third-partyitem in a purchase requisition. You can create purchase orders inthis way individually or collectively.

• If you do not use SD and have not entered a purchaserequisition, you can also enter a third-party order manually.

• Enter a third-party item manually in the same way as thepurchase requisition

Third party Stocks -Purchase Order



382

purchase requisition.

• After entering the account assignment, you can see a screen in

which you can enter the address of the sold-to party.• Enter either the customer number or a delivery address.

• Check whether goods receipts can be made for the third-partyitem. Goods receipts are possible if the goods receipt indicator isset in the item.

• Save the purchase order.

• Third-Party Processing in Inventory Management

• Third-party order involves a movement from the vendor direct to

the customer, Inventory Management is not in any way affected.If you want to document the movement in the system, you cancreate a GR for the third-party order.

Third party Stocks




383

• Entering a Goods Receipt ( GR )

• You enter a GR for a third-party order in the same way as astandardGR for a PO with account assignment.

• Results of the Goods Receipt.

• No stock update is made, as the GR is posted to consumption.

• The value of the purchase order is posted to a GR/IR clearingaccount for the purposes of Invoice Verification.

• When the vendor invoice arrives, You enter the invoice in thesame way as an invoice for a standard PO, for the third-partyorder also.

• If you posted a statistical GR for the PO, the invoice receiptresults in an offsetting entry on the GR/IR clearing account,

Third-Party Processing in Invoice Verification



384

results in an offsetting entry on the GR/IR clearing account,which is cleared.

• If the customer is to be billed in SD based on the invoicequantity specified in the vendor invoice, this quantity is used asthe basis for the billing document in SD. The billing documentcan only be posted once the vendor invoice has been posted.



•

• From the Inventory Management menu, choose Goods movement

Goods receipt Other. The initial screen for this function appears.

• Two movement types are available for goods movement for materialwith RTP:

Posting Other Goods Receipts to RTP Stock




386

with RTP:• When a receipt is not for a purchase order, choose Movement

type Receipt W/o purchase order To RTP unrestr. (501 M)

• When stock balances are entered for the first time, chooseMovement type Receipt Initial stock entry (ext) To RTPunrestricted (561 M)

• Maintain the data on the collective entry screen i.e., enter thevendor and enter the items.

• Post the goods movement.

• A quantity of RTP can be entered at GR for a PO as follows:

• From the Inventory Management menu, choose Goodsmovement Goods receipt For purchase order POnumber known / PO number unknown.

• On the initial screen enter the movement type (usually 101) andthe order number.

Posting RTP Quantities at Goods Receipt for PurchaseOrder



387

• From the overview screen, choose Edit W/o purchase order.

• A window appears in which you can enter the movement typeand the special stock indicator (e.g. 501 M) for the quantity ofRTP.

• Enter the RTP items and post the Goods Movement.

• Stock Updates

• This goods movement results ,increase in the unrestricted-use

RTP stock from the vendor. The total valuated stock remainsunchanged.

• Displaying Returnable Transport Packaging Stock

Returnable Transport Packaging (RTP) Stock




388

Displaying Returnable Transport Packaging Stock

• RTP stock can be viewed using the following functions:

• Stock overview• Plant stock availability

• Both functions can be found in the Inventory Managementmenu under Environment Stock stock overview

Sales Order Stock

• Stock that is used for a sales order and materials can onlybe produced or procured only when they are ordered by thecustomer and the finished product can only be delivered tothe customer via the sales order You can manage valuated




389

the customer via the sales order. You can manage valuatedor non-valuated sales order stock.

• Sales order stock is not valuated, if it is managed via a costcollector. The system does not carry out invoice verificationpostings for goods until the end of the settlement period inControlling.

• If sales order stock is valuated, you can access its value inFinancial Accounting. The assigned accounts are debited andcredited as a result of the valuated goods movements.

•

• When you enter a goods movement for sales order stock, youshould consider the following:

• When you enter a goods movement with reference to apurchase order or a production order, the sales order number

Entering Goods Movements



390

purchase order or a production order, the sales order numberand item are copied from the reference document.

• When you enter other goods movements, you must specify thesales order umber and item.

• Goods movements for sales order stock are entered as follows

• Enter the relevant movement type with the special stockindicator „E‟ and the sales order number and item.

On the initial screen, enter movement type 411 and

the special stock indicator E. This movement allows you to change the materialnumber. This is required if the material is not managed invaluated stock (for example configurable materials)

Transfer to own stock



391

valuated stock (for example, configurable materials).

• Goods receipt for purchase order/for order:

Enter a goods receipt for a purchase order or for anorder as usual using the movement type 101. If an item

is assigned to a sales order (account assignmentcategory E), the system automatically sets the specialstock indicator at GR.

Quantity of Material which is kept in stock for the completion of aproject. The project stock is allocated to a work breakdownstructure (WBS) element and the items can only bewithdrawn for the WBS element. You can manage valuated or non-valuated project stock.

Project Stock



392

If the project stock is not valuated, it is managed via a costcollector. The system does not carry out invoice verificationpostings for goods movements, until the end of the settlement periodin Controlling.

If the project stock is valuated, you have immediate access to itsvalue in Financial Accounting. The assigned accounts are debitedand credited as a result of the valuated goods movements. Projectstock is available for the project from an MRP point of view.

• Creating Valuated Project Stock

If you want to work with valuated project stock, in the Accountingview of the material master record you can define your own Valuation Classes and thereby create your own stock accounts underProject Stock valuation class.

Project Stock



393

Display the valuated project stock. Choose Environment Stock

Valuated special stock.

• Entering Goods Movements

When you enter a goods movement with reference to a purchase

order or production order, the WBS element is taken fromthe reference document.

When you enter other goods movements, you must specify theWBS element manually.

• Goods movements for project stock are entered as follows:

• Other goods receipts, goods issues, transfer postings:

Enter the relevant movement type with the special stock indicatorQ and the WBS element.

Project Stock



394

Transfer to own stock:

Enter movement type 411 and the special stock indicator Q.

Goods receipt for purchase order/for order:

Enter a goods receipt for a purchase order or for an order asnormal using the movement type 101. If an item is assigned toa project (account assignment category Q), the system automaticallysets the special stock indicator at GR.

Demo_ Create consignment Info-record

Menu Path Materials management Purchasing Master dataInfo-recordcreate

T.Code ME11



395

Select Info-RecordCategory

as Consignment

Demo_ Procuring consignment Material

Menu Path Materials managementPurchasing Purchase Order Create Vendor/Supply Plant Known

T.Code ME21N

Select Item Category ‘K’ Net Price



396

g y

For Consignment stock

Procurement

Must beZero

Demo_ Goods Receipt for consignment Material

Menu Path Materials managementInventory Management Goods movement

Goods Receipt GR for purchase Order

T.Code MIGO

Select Mov.type101 and Specialstock indictor



397

stock indictor‘K’

Demo_ Create Returnable Transport Packaging Material(RTP)

Menu Path Materials management Material Master CreateGeneral Immediate

T.Code MM01

Select Material type as

Returnable package



398

Demo_ Create Pipe line material

Menu Path Materials management Material Master CreateGeneral Immediate

T.Code MM01



399

Select Material type

‘Pipe line Material’

Demo_ Create purchase requisition for Third party

Menu Path Materials management Purchasing Purchaserequisition Create

T.Code ME51N

Here we need to

Enter Customer

Address towhom the



400

Select item

Category ‘S’

material is to be

Supplied

Demo_ Create purchase Order for Third party

Menu Path Materials management Purchasing PurchaseOrder Create

T.Code ME21N

Select item

Here we need to

Enter Customer



401

Select item

Category ‘S’Address towhom the

material is to be

Supplied

Agenda

InventoryManagement

Customization

This Part shows the customization ofInventory Management

Duration(Hours)

8



402

(Hours)

Objective To get familiar with Customizationpart of Inventory Management

Pre-requisites

Coursecontent •

Inventory ManagementCustomization

Inventory Management Customization

Objective




403


Objective

Define Plant Parameters



404


Objective

Define Attributes of System Messages



405

Number assignments

Objective

Define Number Assignments For GoodsReceipt/Issue Slips



406

Field Selection for Goods Movements Initial /Header Screens

Objective

Field Selection for Goods Movements Initial /Header Screens



407

Field Selection For MIGO

Objective

Field Selection For MIGO



408



Create Storage Location Automatically

Objective

Create Storage Location Automatically



410


Objective




411



Set Tolerance Limits

Objective

Set Tolerance Limits



413

Create Purchase Order Automatically

Objective

Create Purchase Order Automatically



414

Set Delivery Completed Indicator

Objective

Set Delivery Completed Indicator



415

Set Missing Parts Check

Objective

Set Missing Parts Check



416

Record Reason For Goods Movements

Objective

Record Reason For Goods Movements



417



Change Movement Types

Objective

Change Movement Types



419

Curriculum



3. Master Data1. Material Master

2. Vendor Master


4



420

4. Purchasing

5. Inventory Management6. Invoice Verification


8. Batch Management





Agenda

Invoiceverificatio

n

The main task of the InvoiceVerification component is to

complete the procedure of materialsprocurement by posting

the vendor invoice and to pass on



421

p

information concerning theinvoice to Financial Accounting and

subsequent applications.

Duration

(Hours)

1

Objective To get familiar with Invoiceverification


Concept

• Your Company receives a large number of invoices from the vendoreveryday. The data on the invoice is based on the Purchase order.

• You want to review the data on the invoice sent by the vendor.



422

Exchange rate differences

Exchange ratedifferences

Purchase order is entered in foreigncurrency, the amounts are translated

from foreign currency into localcurrency at goods receipt. If you enterthe invoice for the purchase order inth f i thi l d t



423

the foreign currency, this can lead to

currency translation differencesbetween the goods receipt and the

invoice receipt.

Duration(Hours)

1

Objective To get familiar with Exchange rateNote – Fields in red boxes are mandatory fields.

Introduction

• What are Exchange rate differences ?

• Are you following Fixed exchange rate or Current Exchange rate ?

• How does your company post these exchange rate differences ?



424

Concept

• Purchase order is entered in foreign currency, the amounts aretranslated from foreign currency into local currency at goods receipt. If

you enter the invoice for the purchase order in the foreign currency,this can lead to currency translation differences between the goodsreceipt and the invoice receipt. These differences are called asExchange rate differences.



425

• According to business policy We can use :• fixed exchange rate

• current exchange rate

Concept

• If the exchange rate is fixed in the Purchase Order, the R/3 system

uses this exchange rate to convert the foreign currency to localcurrency at goods receipt and at invoice receipt.

• If the Exchange rate is not fixed in the Purchase order, the R/3t th t h t t t th f i



426

system uses the current exchange rate to convert the foreign

currency to local currency goods receipt. In Invoice verification , italso suggests the current exchange rate.

• The exchange rate differences are same as the Price differences.The way that R/3 system posts exchange rate differences depends

on the settings in the customizing for invoice verification.

Demo1_Fixed Exchange Rate

Objective

To fix Exchange rate at Purchase order



427

Demo1_Fixed Exchange Rate

Objective

To make a Goods receipt for fixed exchangerate PO



428

Demo1_Fixed exchange rate

Objective

Logistics invoice verification



429

Demo1_Fixed exchange rate

Objective

Purchase order history



430

No differences exist betweenGR and LIV

Demo2_Current Exchange Rate

Objective

To Create a Purchase Order without fixedExchange Rate



431

Demo2_Current exchange rate

Objective

Goods receipt for PO



432


Objective

Logistics invoice verification



433


Objective

Purchase order history



434

We observe differencebetween the GR and IR

Demo3_Customizing setting for Exchange rate differences

Objective

Customizing for How the exchange ratedifferences are treated



435

Demo3_Customizing setting for Exchange rate differences

Objective

Customizing for current exchange rate



436

Information on a Invoice

Invoicing Party

Addressee

Reference

Purchase order



437

Material Details

Unit of measure

Price per unit

Invoice amount

Terms of payment

MM overview of Invoice Verification

Material Planning

InternalProcurement

ExternalProcurement



438

Stocktransfer

Goods receiptalong with invoice

Invoice Verification

MM Invoicing doc & FI invoicing doc

Vendor

• Invoice receipts

• Invoices can be posted in the R/3 System in several differentways.

• The company receives invoices by post, then an employeeenters and posts them

MM overview of Invoice

Verification



439

enters and posts them.

• The company receives invoices via electronic transfer and theR/3 System posts them automatically (if the informationtransferred matches that expected by the R/3 System).

• The R/3 System creates invoices using settlement programs thatrun at regular intervals (evaluated receipt settlement, invoicingplan, consignment settlement).

MM overview of Invoice Verification

• Account Movements

• In the case of material with a moving average price, the R/3System posts the stock account with the value of the net orderprice multiplied by the quantity of goods received.



440

• In the case of material with a standard price, the R/3 Systemposts the stock account with the value of the standard pricemultiplied by the quantity of goods received. The R/3 Systemposts the difference to an account for expenses or revenue from

price differences.

Basic Invoice verification procedure

• Purchase order based Invoice verification

• Good receipt based Invoice verification



441


Purchase orderMaterial –XXX

Qty-100pcs

Delivery 1- 50pcsDelivery Note No:GR1


Delivery 3- 25pcsD li N t N GR3

P. O based invoiceverification



442

Delivery Note No:GR3

Invoice for PO: XXXQty:25Selection via PO

Item listPo: XXX -

100pcs


Purchase orderMaterial –XXX

Qty-100pcs



Delivery 3- 25pcs

G.R based invoiceverification



443

yDelivery Note No:GR3

Invoice for PO: XXXQty:25

Selection via

Delivery Note Item list

Po: XXX -25pcs

Other Functions in Invoice verification

Simulatingthe posting

Search forallocation

Error Log

Hold

Documents



444

Communication with vendor

Note lastsetting

EnvironmentInformation



Demo1_Invoice Verification

Objective

Purchase order base Invoice Verification



446


Objective

Purchase order based Invoice Verification



447


Simulate

Objective




448


Objective




449

Post


Save

Objective

Purchase order base Invoice Verification



450

Document Gets created

Agenda

DeliveryCosts

Delivery costs are costs that areinvoiced for a delivery over and

above the value of the deliveryitself

Duration ½



451

(Hours)Objective To Understand about the

Delivery cost

Pre-requisites

Purchase Order, Goods ReceiptNote – Fields in red boxes are mandatory fields.

Introduction

• Define Delivery Cost

• What are the types of Delivery Cost



452

Concept

• Delivery costs are costs that are invoiced for a delivery over and

above the value of the delivery itself. This includes freight charges,customs duty, or other costs.



453

Types Of Delivery Costs

There are two types of Delivery costs

• Planned Delivery cost

• Un planned delivery cost



454

Demo1_ Enter Incoming Invoice

Objective

Posting of Planned Delivery Cost



455

Demo2_ Enter Incoming Invoice

Objective

Posting of Unplanned Delivery Cost



456

Agenda

Invoiceblock Invoice block meansFinancial Accounting cannotpay the invoice.

Duration

1



457

Duration(Hours)

1

Objective To know about Invoice Block

Pre-requisites Purchase Order

Course •IntroductionNote – Fields in red boxes are mandatory fields.

Introduction

• What do you mean by Invoice Block

• What are the reasons for Payment Block



458

Concept

• Invoice block means Financial Accounting cannot pay the invoice.

Invoice blocking can be done either automatically or manually.



459

Reasons for Invoice Block

• Variance in an Invoice Item• Amount of an invoice item

• Stochastic Block

• Manual Block



460


Objective

To Create Reasons for Blocking Payment



461


Objective

To Set a Tolerance Limit



462


Objective

Activate Block Due To Item Amount



463


Objective

To Create Stochastic Block Values



464

Demo2_Enter incoming Invoice

Objective

Entering incoming Invoice



465

Demo3_Releasing the Blocked Invoice

Objective

Releasing The Blocked Invoice



466

Agenda

Invoiceverificati

on inBackground

The system checks the invoice with hundredsof line items the system should compare total

invoice amount to the expected value fromthe purchase order using backgroundprocessing.



467

Duration(Hours)

1

Objective

To get familiar with Invoice verificationin background

Concept

• For invoices with hundreds of line items the system should compare totalinvoice amount to the expected value from the purchase order usingbackground processing.

• The system checks the invoice in the background. If no errors occur, thesystem also posts the invoice in the background. If errors do occur, thesystem saves the invoice and you then have to process it in a separatestep.



468

Concept

• The Invoice document which is saved does not contain any line items,hence no item check is required.

• The settlement program which is regularly started in the backgroundcreates the item for this invoice document based on quantities and valuesto be invoiced. The system check if the total of the items and the amountsalready set (gross invoice amount, tax amount, unplanned delivery costs)results in a zero balance.



469

Important data

• Document header data :

Document date

Posting date

Gross invoice amount

Tax information.



470

• Program name:

Invoice Verification in the background is run using program RMBABG00.

Customizing Settings (For status)

Objective

To set the indicator for invoice status.



471

Demo2_Create invoice document in background

Objective

To create a invoice document entry inbackground



472

Agenda

Evaluated ReceiptSettlement

Evaluated Receipt Settlement allows you tosettle or pay for the goods receipt withoutentering or processing of an Invoice.

Duration 1 hr

Objective To get to know the process of EvaluatedReceipt Settlement



473

Pre-requisites Knowledge about Material Master, VendorMaster, Info Record, Purchase Order & GoodsReceipt

Course content • Concept

• Evaluated Receipt Settlement Process• Benefits of Evaluated Receipt Settlement

• Demo1_Evaluated Receipt Settlement

• Evaluated Receipt Settlement (ERS) allows you to settle or pay forgood receipts without entering or processing an invoice.

• This eliminates the need to handle and process invoices receivedfrom vendors.

Concept



474

• The use of ERS is a continuing drive of the business industry. Itssuccess is predicated on accurate pricing and receiving.

• While no invoice is received (either manually or via EDI) SAPcreates an internal invoice during execution of the ERS program.

Process

• Based on the order price specified in the purchase order and thequantity entered on the goods receipt, SAP determines the correctinvoice amount and obtains tax information and terms of paymentfrom the purchase order..

• This information allows the system to settle without having to



475

process a vendor invoice.

Benefits

• No GR/IR entries to clear.

• No Blocked invoices to clear.

• No invoices to process, benefiting you and your vendor.



476



Demo 1_Evaluated Receipt Settlement

Objective Make settings in the Vendor Master to enable Evaluated ReceiptSettlement.

Mandatory Fields



478

Demo 1_Evaluated Receipt SettlementObjectiv

e Make settings in the Info Record to enable Evaluated Receipt Settlement.

Mandatory Field



479

Demo 1_Evaluated Receipt SettlementObject

ive Make settings in the Purchase Order to enable Evaluated Receipt Settlement.

MandatoryFields



480

Demo 1_Evaluated Receipt SettlementObjec

tive

To receive the goods that we have purchased from the Vendor.

Mandatory Fields



481


Objective

To settle the account of the vendor without generating the invoice

Execute (F8)



482


Note the PurchaseOrder & Vendor

Objective

This screen shows the list of ERS purchase orders to be executed



483

Period closing and opening

Period closingand opening

This function sets the new period,making it possible to perform goods

movements with reference to the newperiod. Once the period has beenclosed, it is no longer possible to makepostings to what was the previous



484

periodDuration(Hours)

1

Objective To get to know about the period closingand opening

Pre-requisites •Material master

Introduction

• What is meant by period closing and opening ?

• How it is related to Financial accounting and Materials management?



485

Concept

• Open and Close period for material postings. Once the

system is in productive operation, you normally run theperiod closing program once a month at the beginning ofa new period. This program sets the new period, makingit possible to perform goods movements with referenceto the new period. Once the period has been closed, it is



486

no longer possible to make postings to what was theprevious period

Demo 1_Period closing

•

Objective

Period closing in material mater record



487

Demo 2_Period opening

Objective

Period Opening in material mater record



488

Agenda

LogisticInvoiceVerification

Verification of in coming invoices in theR/3 system before posting to finance

Duration 2 (Hours)

Obj ti T t f ili ith LIV



489

Objective To get familiar with LIV

Pre-

requisites

To be well familiar with the earlier

purchase master data, vendor master.Purchase order and Goods receipt

• Logistic invoice verification

• LIV is a part of MM. In LIV, incoming Invoices are verified in terms of

their content , price & arithmetic . When Invoice is posted , theinvoice data is saved in the system . System updates data in MM & FI

• LIV completes Material procurement process which started with PR .

Concept



490

• LIV allows to post Invoices that don‟t originate from MM . EX :Services , Expenses , Training cost etc

• It allows credit memos to be processed.

Concept

• Incoming Invoice

• Invoice contains various information such as

• Who issued Invoice

• Which transaction does the Invoice refer to



491

• How much tax do you have to pay

• You will allocate the Invoice to a business transaction , if such

reference exist , the system uses knowledge that it already has& proposes the appropriate values during Invoice verification.

• For Example:

Terms of Pa ment

Concept

• Invoice can be processed in LIV in following ways

• Invoice Verification Online• Parking

• Invoice verification in Background

• Automatic Settlements like:

• ERS

C i t & i li S ttl t



492

• Consignment & pipe line Settlements

• Revaluation

• Invoicing Plans

• EDI Invoices

Important Data for LIV

• Maintain Number Assignments for Accounting Documents

• In this step, you:• Define the document types

• Assign each document type to a number range

• Assign document types to the Logistics Invoice Verificationtransactions

St d d tti



493

• Standard settings• In the standard system, two document types are defined for

Logistics Invoice Verification:

• RE for gross posting

• RN for net posting

Important Data for LIV

• Tax Treatment in Invoice Reduction

• Here, you can configure how taxes are to be posted for invoicereduction.

• The system creates two accounting documents for invoicereduction. The first document (original document) contains theinvoice data sent by the vendor. The second document(complaint document) contains information about the invoice

d



494

reduction.

• If the tax reduction is carried out in the complaint document , thetaxes in the original document correspond to those in the vendorinvoice. The tax amount for the invoice reduction is credited inthe complaint document.

• If the tax reduction is carried out in the original document , thetaxes in the original document are reduced by the tax amountfor the invoice reduction. In this case, the complaint document

Demo1_Customizing LIV

Objective To create document types for invoice verification



495


Objective To assign number ranges for the document types



496


Objective To assign number ranges for the document types

Select Documenttype from list

RE - Goss postingRN - Net Posting



497


Objective To assign Doc types to T Code

Assign required Doc typeTo Relevant T,code



498


Objective

To assign No. range to Transaction



499


Objective To Set Tax reduction doc to company code

Here we can setTax reduction doc

as a original orComplaint Document



500


Objective

To Set Default Tax code to company code

Select the requiredCompany code andClick on Detail button



501


Select requiredTax code

From the list

Objective

To Set Default Tax code to company code



502


Objective To mail purchasing when price varianceoccurs.

Select the indicatorFor activate mail to

Purchasing with respectTo company code



503


Objective

To configure vendor specific tolerances.



504


Objective

To configure vendor specific tolerances.



505


Objective

To activate direct posting to G/L account andmaterial account

S l t b th i di t



506

Select both indicatorFor activate G/L and

Material account


Objective

To Set Check for Duplicate Invoice



507

Demo2_ Creating Invoice Entry

Objective

To create an invoice entry



508

Curriculum



3. Master Data

1. Material Master

2. Vendor Master


4. Purchasing


6 Invoice Verification



509



8. Batch Management


10.Consumption Based Planning11.Standard Reports in MM




Material Valuation

Material Valuation is a part of MM module. This includes the followingapplication

areas:

• Purchasing

• Inventory Management

• Logistics Invoice Verification

Material Valuation determines & records the stock value of a material.

[ Stock value=stock qty*material price ]



511

[ Stock value stock qty material price ]

• Material valuation is not an independent application area, since mostvaluation functions take place automatically in the SAP system.

• Material Valuation represents an integration between MM & FI modulessince it updates the G/L accounts in Financial accounting.

• Material Valuation serves the following purposes:

• Adjusting material prices to market price.

• Perform revaluations

Control of material valuation is done basically by 2 factors:• System settings

• At which levels are materials valuated.• Which types of goods movements affect material valuation.• Which G/L accounts must be posted with the material value during a

transaction.

• Material master record As a rule every material in the SAP organization should have a Material

Master. This master record also controls the valuation data of the material(Accounting view in the material master)

Material Valuation



512

Master. This master record also controls the valuation data of the material(Accounting view in the material master)

When maintaining Material master you must decide the following:a) Whether the material is to be valuated at all.b) Whether different sub stocks of a material should be valuated differently.c) Whether the stock of a material should be valuated at a constant price

(standardprice) or delivered price (Moving average price).

Material Valuation

Data on a material is valuated using the following structures:

• Valuation area

• Valuation category

• Valuation class

• Valuation type

• Material type

• Movement type



513

• Movement type

The following control features are important for valuation.

• Does the material movement cause the quantity to be updated.

• Does the material movement cause the value to be updated.• Does the material movement lead to posting in Financial accounting.

• Is the material movement relevant for LIFO/FIFO valuation

Split Valuation

• Split valuation enables you to valuate stocks of a material in different waysFor example, according to external procurement or in-house production or

by batches, or a material bought from two countries.



514

Split Valuation

Split Valuation

Type of procurement Country of origin Quality status

H C Q

Ext. procurement In house mfg UsedNew Reworked/Repaired



515

Ext. procurement

(H1)

g

(H2)

Germany(C2)

India(C1)

(Q2)(Q1)

p

(Q3)

Split Valuation

The Valuation Area is the level at which materials are valuated, thiscorresponds either to a certain plant or to all plants belonging to companycode. If you have set the valuation level at company code level, G/Laccounts can also be assigned according to plant.

Valuation Category is the criteria on which material is Split valuated.

Valuation Type describes the characteristics of a Valuation Category.



516

Split Valuation

Objective

To configure split valuation



517

Split Valuation

Objective

To define global categories



518

Split Valuation

Objective




519

Split Valuation

Objective




520

Split Valuation

Objective

To define valuation types



521

Split Valuation

Objective

To define valuation types



522

Split Valuation

Objective

To define local categories



523

Split Valuation

Objective

To create a material master with split valuation



524

Split Valuation

Objective

To create a material master with split valuation



525



Account Determination

Objective

To define a valuation grouping code



527


Objective

To define account category reference andvaluation class



528


Value string: It is an internal procurement key which facilitates automaticaccount

determination.

Transaction event key: Internal processing key facilitating automatic account

determination for the various material and invoice postings.

Posting rule determines how the system has to capture the G/L account.There are



529

4 posting rules

1) Debit/Credit

2) General Modification

3) Valuation Modification4) Valuation Class


Account modifiers are general modification and has been defined in the SAPR/3

system for the following transaction or event keys:

• GBB-offsetting entry for inventory postings

• PRD-cost (price differences)

• KON-consignment/pipeline liability

In MM in the standard system, a/c grouping is only active for the transaction



530

key GBB.

We can change the account grouping for transactions in IM, depending on the

movement type and other indicators ( ex: special stock indicators).

The account grouping cannot be changed for transactions in LIV.


Objective

To define Automatic Account postings



531


InventoryManagement

Posting stringfor values

InvoiceVerification

BSX PRDTransaction

Transaction



532

300000 281000G/L account Number


The posting transactions for the transactions in Inventory Management &Invoice

Verification that are relevant for accounting are fixed. Posting records are

assignedto each relevant movement type in IM and to each transaction in LIV.

These posting

records are generalized in a value string (posting rule). Instead of fixed G/Laccount

numbers, this contains keys for the respective posting transaction (such asBSX for



533

BSX for

a stock posting and PRD for a price difference posting).

You do not need to define these transaction keys, the R/3 systemdetermines them

from the transaction (in LIV) or from the movement type (in IM). We onlyneed to

Curriculum



3. Master Data

1. Material Master2. Vendor Master


4. Purchasing



7



534


8. Batch Management





Batch Management

BatchManagement

Batch Management in MM

Duration(hours)

1

Objective To familiarise Batch

Management technique



535

g qpertaining to MaterialsManagement

Pre-requisites Master data, Purchasing,Inventory Management


Need for Batch Management

• In various industries, particularly the process industry, you have towork with homogenous partial quantities of a material or productthroughout the logistics quantity and value chain.

Purpose



536

Application of Batches in SAP areas

Batch Management



537

• Batch Number Assignment

– This function is used to assign a unique key to a batch. The batchnumber uniquely identifies a batch in the SAP System. The batch

level you choose determines the area in which the batch number isunique.

Batch Management



538

• Batch Specification

– This function is used to describe each batch uniquely usingcharacteristics and characteristic values. You specify the permittedvalue range in the allocated material master record.

• Batch status management

– This function is used to indicate whether a batch is usable orunusable. You set this status:

– Manually in the batch master record or at GRAutomatically in the usage decision in quality management

Batch Management



539

– Automatically in the usage decision in quality management

– The basic setting required is that „Batch management box‟ should be „checked in Material master.

Deleting a Batch Master Record

• Flag a batch master record for deletion so that the archiving anddeletion program can delete it. To do so, call the batch master record inchange mode. You can set a deletion flag at plant level or at storagelocation level, but only if a deletion flag has not already been set at ahigher level. The batch master record is then deleted at that level andat all lower levels.

Batch Management



540

• Batch Classification – All classes used for batch classification are assigned to class

022/023. They are required for batch determination. – The material and its batches are related by classes. This is to ensure

that the same characteristic is used for the material and batch.Characteristics are identified uniquely by the value or range ofvalues.

– Batch Specifications – An Example

• Example of Paint production illustrates how batch specificationsare used.

– Characteristics of Material A Target ValueViscosity 41 50

Batch Management

http://help.sap.com/saphelp_erp2005/helpdata/en/ff/3ea186a12911d184d50000e82013e8/frameset.htm



541

– Viscosity 41 - 50

– Ph value 3.1 – 6.0

– Hydrolizable chloric content 23 – 25

– Epoxy count 23 - 25

– Volatile proportion 0.0 – 0.5

• Batch Classification – You define these specifications as characteristics and assign them to

a class. You then assign this class to a material master record (inclassification view). When you maintain the material master record,you can thus specify the target values or range of values of thespecifications.

– In the classification system, you define class for this material calledPaint . Under the characteristics, you set up:

– Viscosity 41 - 50 – Ph value 3.1 – 6.0 and so on.

– When the batch is produced, the specifications are checked in thelaboratory and fixed values for each batch are determined. If thesel li ithi th ifi d th b t h i t bl

Batch Management



542

values lie within the specified range, the batch is acceptable. – The validity of the specifications you enter is immediately checked.

This is possible in the system as the material and the batchesbelong to the same class.

– In our example, the actual values attained for the specifications forbatch A124495 are as follows:

• Batch Classification

– Characteristics of Batch A124495 Actual Value:

– Viscosity 42

– Ph value 3.5

– Hydrolizable chloric content 24

– Epoxy count 23.5

– Volatile proportion 0.10

– Since all the values are within the range specified in thecharacteristic, the batch A124495 is accepted.

Batch Management



543

– If you have entered an interval value for a numeric characteristic inthe material master record, you will be able to assign either

– the whole interval (for example, viscosity between 41 - 50 in theabove example)

– a restricted interval (viscosity between 42 – 44 in the aboveexample)

– a certain value within this interval to the material (viscosity of 43.5

• Batch Management in Inventory Management

– Batch determination

– Batch Where-Used List

– Active Ingredient Management

– Entering a batch

Batch Management



544

• Two types of master data exist for every batch in the warehouse,

namely:

– General data for the batch at plant level, material level, or clientlevel (batch master record)

– Stock data for the batch at storage location level

Batch Management



545

• Stock types

The following stock types are managed at batch level:

– Unrestricted-use stock

– Quality inspection stock – Blocked stock

– Restricted-use stock (only with batch status management)

– Stock in transfer (for stock transfers between storage locations)

– Blocked stock returns

• All other stock types for the material are managed on a cumulativeb i l i l l l

Batch Management



546

basis at storage-location or plant level.



• If the shelf life check expiration date check is active, you must enter theshelf life expiration date or the production date of the material at the

time of a goods receipt.• At the time of goods receipt, the system checks whether the remaining

shelf life is sufficient. If this is not the case, a warning or error messageis issued, depending on the system settings.

• When the goods receipt is posted, the shelf life expiration date is

recorded in the material document. • Materials handled in batches:

Shelf life expiration date in Batch Management



548

• For materials handled in batches, the date is also stored in the batchmaster record.

• For a further goods receipt for a batch, the shelf life expiration date

entered or determined with the movement is compared with the onefrom the batch master record. If the dates differ, a warning or errormessage is issued, depending on the system settings.If the goods receipt is posted despite any warning, the old shelf life

Curriculum



3. Master Data



4. Purchasing



7 Account Determination



549


8. Batch Management





Physical Inventory

Physical Inventory This component is used to carry outa physical inventory of yourcompany‟s warehouse stocks for

balance sheet purposes. Differentmethods / procedures can be usedfor doing this.

Duration (hours) 8

Objective To get familiar with Physical



550

Objective To get familiar with PhysicalInventory component

Pre-requisites N. A

Course Content •Introduction

•Demo1_ Create Physical Inventory Document

•

Introduction

• Physical Inventory

• In SAP R/3, physical inventory can be carried out both for a

company‟s own stock and for special stock.

• Inventory for a company‟s stock and for special stocks (such asconsignment stock at customer, external consignment stock fromvendor, or returnable packaging) must be taken separately i.e., indifferent physical inventory documents.

• The stock in a warehouse can be divided into stock types. In thestandard system a physical inventory can be carried out for the



551

standard system, a physical inventory can be carried out for thefollowing stock types:

• Unrestricted-use stock in the warehouse

• Quality inspection stock

• Blocked stock

Introduction

• Physical Inventory Process Diagram

Stock Count

OverviewPhysical Inventory Preparation

Create physicalinventory doc.1

Batch

input

Print physical

inventory doc.2

C t

Arrange for

recount 6a

Enter physical

inventory count 5



552Physical Inventory Count

Carry out

physical

inventory count

Enter Result

in Printout

3

4 Postdifferences 7

Print list of

differences6

Physical Inventory Analysis

inventory count 5

Demo1_Create Physical Inventory DocumentObjective

Create a physical inventory document (MI01)



553



Physical Inventory Count

• Enter the count by using MI04

• During the inventory count, all the materials being inventoried arecounted and entered physically.

• The stocks are counted for individually for the materials in aphysical inventory document.

•The count results are written on the printout of the physicalinventory document.

Th i t t i th di t d b k t th ibl th t



555

• The printout is then directed back to the person responsible, so thathe or she can enter the count into the system and analyze it.

Demo2_ Enter Inventory Count

Objective

Enter Inventory Count (MI04)



556

Recounting

To initiate a recount, proceed as follows:

• Go to MI11, On the initial screen, enter the physical inventory document for

which you want to initiate a recount. By specifying a threshold value, you can

limit the number of items in the recount.

• Select the items for which you want a recount

• A new physical inventory document is created that contains the selected

items. The system confirms the posting and displays the number of the

physical inventory document



557

Posting Inventory Differences

The various options for posting inventory differences are:

• Posting differences after the count has been posted A physical inventory document has already been created, and

the count has already been posted. You only have to post theinventory differences (MI07).

• Posting the count and inventory differences simultaneously

after the physical inventory document has been created A physical inventory document has been created, but the count

has not yet been posted The count results are available You enter



558

has not yet been posted. The count results are available. You enterthe count and post the differences in one step (MI08).

• Entering the count without a document reference

You have a count result without reference; that is, no physicalinventory document has yet been created for this physical inventorytransaction. You create a physical inventory document, enter thecount, and post the differences in one step (MI10).

Demo3_ Posting Difference

Objective

To Post Differences



559

Account Activity During Posting of Inventory Differences

• The account activity during posting of the inventory differencesdepends on which stock was inventoried:

• Company's own stock

When you post inventory differences, the material masterrecord is changed; total stock is automatically adjusted to thecounted quantity. From the accounting point of view, this

corresponds to a goods receipt or goods issue, meaning that whenthe inventory difference is posted, the stock account is debited or



560

y p ,credited.

• Inventory Differences in Consignment Stock

When you post inventory differences, the material masterrecord is changed, the vendor consignment stock is automaticallyadjusted to the counted quantity. Since this stock type is notmanaged by value, from the accounting point of view, there is no



Account Activity During Posting of Inventory Differences

Account Postings

Stock Material Stock – Take

Clearing

MovementType

Description

Debit Credit Debit Credit

701/703/707 GR Physical Inventory: UR, QI, Blk (Gain) X - - X

•Counted Stock Greater than Book Inventory Balance

If the counted consignment stock is greater than the bookinventory balance, the system assumes that larger withdrawals were posted fromconsignment stores than actually occurred. Thus, the inventory difference is

posted as a withdrawal reversal. Since withdrawals are posted to the "Payablesfrom consignment stores" account, postings must be made to this account whenthe inventory difference is posted



562

/ / y y , Q , ( )702/704/708 GI Physical Inventory: UR, QI, Blk (Loss) - X X -

Reports on Physical Inventory

• The following functions in the physical inventory menu provide

information on the physical inventory:

Displaying the physical inventory documents for a material – MI21

Displaying the physical inventory data for a material – MI23

Displaying the physical inventory overview – MIDO

Di l i th h i l i t li t MI24



563

Displaying the physical inventory list – MI24

Displaying the list of physical inventory differences – MI20

Displaying changes to physical inventory documents – MI12

Physical Inventory Procedures

Continuous Sampling

Periodic

Phy. InventoryProcedures



564

Cycle Counting




• Continuous Inventory

– In the continuous inventory procedure, stocks are countedcontinuously during the entire fiscal year. In this case, it isimportant to ensure that every material is counted once at leastonce during the fiscal year.



566


Create physical inventory documents - MICN

Enter the data required

Carry out the evaluation

Generate session to create batchinput session

process the session

Cycle Counting Procedure



567

Carry out the phy inv for the docscreated


• Inventory Sampling

– Inventory Sampling reduces the time and cost of a physical

inventory considerably by counting only the stock of individualmaterials and carrying out an extrapolation to arrive at anestimated count result for all units of stock managed.

• There are two methods of carrying out an inventory sampling:

– Periodic inventory sampling

In this procedure, the count is carried out on a key date.During the physical inventory, movements in the warehouse as well



568

g p y y,as changes to the book inventory balances are not allowed.

– Continuous inventory sampling

In this procedure, stock is counted over an extended period oftime. In this case, inventory sampling data is updated from time totime to correspond to the latest book inventory balances. Changesto the book inventor balances are thus reflected in the calculations


Inventory Sampling -Preparation Phase

1. Creating an inventory sampling

In this step you have to define several basic parameters, such as:

– Which currency is to be used for the inventory sampling

– The area in which the inventory sampling is to be carried out

– The deviations up to which an inventory sampling is stillconsidered successful



569

2. Allocating the stock management levels

In step 2, we allocate certain quantities of stock management units

/ levels, to the inventory sampling that is to be included.


Inventory Sampling -Preparation Phase

3.Forming the stock population

The stock population is the total of all stock management unitsof an inventory sampling. While forming the stock populationBreakdown of the stock population and Classification are carried outautomatically.

4. Generating a stratification



570

4. Generating a stratification

To reduce the number of stock management units to becounted to a minimum, the sampling area is divided into individual

strata. The stratification is generated using classification. The valuedispersion in a stratum is considerably smaller than in the entiresampling area. With a small value dispersion, only relatively fewelements must be selected to obtain a re resentative result. This


Inventory Sampling – Active Phase

1.Generating the random selection

In the process of random selection, the system determines thestock management units to be counted for each stratum.

2.Creating physical inventory documentsPhy inventory documents must be created for the stock

management units to be counted These documents are required



571

management units to be counted. These documents are requiredfor all stock management units drawn during random selection andthat were allocated to the complete-count area when the stock

population was formed.

3.Update


Inventory Sampling – Active Phase

4. Extrapolation

During the extrapolation process, the system estimates thephysical inventory value of the sampling area on the basis of thelatest counting results. An average physical inventory value per itemis calculated in every stratum and multiplied by the number of items

in each stratum. The total of the stratum values determined in thisway gives the estimate for the sampling area



572

Summary of Physical Inventory

SAP Functionality

SAP

Stock Count

Stage 1 Create and PrintPhysical Inventory Document

Stage 2 Conduct Physical CountInput Count Results ondocument printoutStage 3 Enter Count Results in SAP

Display Difference ListConduct and Enter RecountPost Inventory Differences

• Stock materials• Special stock



573

PhysicalInventoryDocument 1

2

Co. Co. x y z

AccountingDocument

Co. Co. x y z

Material

Document

Gain or Loss onUR Stock

MI07701/702

Gain or Loss onQI Stock

MI07703/704

Curriculum



3. Master Data



4. Purchasing


6. Invoice Verification7. Account Determination

8



574

8. Batch Management





Consumption-Based planning

Consumption-Basedplanning

Consumption based planning is basedon past consumption ,it calculates thefuture requirements.

Duration(Hours)

1

Objective To get familiar with RFQ/Quotation

Pre-requisites •Material Master,I d i



575

Coursecontent

•Introduction

•Concept

•MRP procedures

•MRP and CBP

•CBP- Reorder point planning

•Lot sizing

Introduction

• What is Consumption-Based planning?

• Distinguish Consumption-Based planning from Material requirements

planning?

• What are the various procedures in Consumption-Based planning?



576

Concept

• In a manufacturing company, particular materials, such as officeMaterial or Low-value materials that are needed in production (Screws,washers, Markers…etc), are planned in consumption basis. This iscalled as consumption based planning.

• Consumption-Based planning is mostly used in order to plan B and Cmaterials and Operating supplies.

• Material requirements planning is based on current and futurerequirements



577

requirements.

• MRP is epically useful for planning Finished products and important

assembly groups and Components (A materials).

• In MRP requirement elements are the sales orders, planned

MRP procedures

• MRP procedures:MRP procedures

Reorder pointplanning

Forecast-basedplanning

Time-phasedplanning

Automaticreorder point

MRPConsumption-based planning

ManualReorder point



578

MRP and CBP

• Materials planning can be executed at plant level or belowthe plant level of individual MRP areas.

• In order to carry out material requirements planning for aplant.

• You have to activate MRP at respective plant

• You have to maintain MRP parameters at this plant.

• You have to maintain the MRP data of the Materials inMaterial Master record



579

MRP and CBP

• MRP type is the key that control the MRP procedure to beused for planning the material. Further data in material

master record controls the lot-size calculation or schedulingcalculation.

• MRP type controls which planning parameters must or canbe entered when maintaining the material master record.

• MRP profile is the key in which you can store MRPt th t d t d d t t i l t



580

parameters that do not dependent on material masterrecord.

CBP- Reorder point planning

Stock

Lot size

SafetyStock

Reorder

Point

Re-Order Point Planning



581

Time

Stock

Replenishment lead time

Releasedate

Available date

CBP- Reorder point planning

• The reordered point planning is the comparison of the availablewarehouse stock and the fixed receipts with reorder point. If the

available warehouse stock is less than the reorder point, then thenet requirements calculation is triggered.

• The reorder point is composed of the expected average materialrequirements during the replenishment lead time and the safety

stock.

Th f t t k t b th th l d t i l



582

• The safety stock must cover both the unplanned material excessconsumption during the replenishment lead time, as well asadditional requirements caused by the delayed deliveries.

Lot sizing

• Lot sizing procedure: The system calculates the receipt of quantityin lot sizes. There are 3 lot sizing procedures are there, 1. static

procedure 2.perodic procedure 3. Optimum procedure.

• You specify how the system is to determine the lot sizes, byselecting one of the lot sizing procedures in material master record.



583

Planning run

• Planning run: In planning run system carries the following process,

1. The system checks the planning file entries

2. The system carries out a net requirements calculation for everymaterial

3. the system carries out the lot-sizing calculation

4. The system carries out scheduling to calculate the start andfinish dates of the procurement proposals

5. The system determines the type of procurement proposals.



584

y yp p p pDepending on the settings, the system creates either plannedorders, purchase requisitions or schedule lines for a material

Planning run types:

Planning run

• To execute the planning run The following functions are provided

• Total planning

• Single-item, single-level planning

• Multi-level single-item planning

• Interactive planning

• Multi-level, make-to-order production• Individual project planning



585

Planning result and evaluation

Planning result and Evaluation:

• The following evaluations are available for evaluating the planningresults in consumption-based planning:

• MRP list

• Current stock/requirements list



586

Demo1_ CBP and MRP data in Material master record

Objective

To maintain the data in MRP1 view of materialmater record



587

Demo1_ CBP and MRP data in Material master record

Objective

To maintain the data in MRP2 view of materialmater record



588



Demo2_MRP

Objective

To create the planned independentrequirements



590

Demo2_MRP

Objective

To maintain the planned independentrequirements



591



Curriculum



3. Master Data



4. Purchasing



8. Batch Management



593

8. Batch Management



11.Standard Reports in MM12.Standard Tables in MM

Reporting in MM

• In Purchasing, a variety of documents are maintained such asPurchase Requisition, Purchase Order, Goods Receipt and Invoice

Receipts• The R/3 system updates these documents and stores them in

database tables. Standard Analysis can be used to analyze theinformation contained in these documents.

• For example we would want to know

– List of Purchase Orders for a Vendor – The number of Purchase orders for which you have already

received goods



594

received goods.

– The average value of each PO for a purchasing group

– Receipts / issues for a given material for a given period

– Stock at a given plant and storage location

– Inventory turnover.



Reporting in MM

Objective

To generate a list of Purchase Orders for a Vendor



596

Reporting in MM

Objective

To generate a list of Purchase Orders for a Vendor



597

Logistics Information System

• SAP Logistics offers a range of application related informationsystems

• All have standard interface and similar basic functionality• All Logistics Information systems have the same type of data

retention.

• Different information systems available in SAP are

– SIS : Sales Information System

– PURCHIS : Purchase Information System

– INVCO : Inventory Controlling



598

– WMIS : Warehouse Management Information System

– PPIS : Shop floor Information system

• Information system in LIS are continuously supplied with data fromtransaction systems (Sales and distribution, Purchasing, Production

Logistics Data warehouse

• The physical tables in the SAP information warehouse areinformation structures or info structures.

• The objects to be analyzed in the real business world go into infostructures as evaluation groups in the form of characteristics.

• Organizational elements, such as, Purchasing group, Material group,Plant are used as characteristics in info structures.



599

LIS reports

Objective

To generate standard report from LIS



600

LIS reports

Objective

To observe the drilldown function in LIS reports



601

LIS reports

Objective

To observe the drilldown function in LIS reports



602

Curriculum



3. Master Data



4. Purchasing



8. Batch Management



603

g



11.Standard Reports in MM12.Standard Tables in MM

Agenda

Name ofthe section

Standard Tables in MM

Duration(hours) 1

Objective To understand the different tables

related to Materials Management.Pre-requisites

• Knowledge on SAP MM



604

requisites

CourseContent

•Material Master tables•Purchasing tables

Material Master Tables



605

Purchasing Tables



606

Purchase Order – Linking of Tables



607

Goods Receipt – Linking of Tables



608

List of Tables

EINA Purchasing Info Record- General Data

EINE Purchasing Info Record- Purchasing Organization Data

MAKT Material Descriptions

MARA General Material Data

MARC Plant Data for Material

MARD Storage Location Data for Material

MAST Material to BOM Link

MBEW Material Valuation

MKPF Header- Material Document



609

MSEG Document Segment- Material

MVER Material Consumption

MVKE Sales Data for materials

RKPF Document Header- Reservation

List of Tables

Sap Mm Lct Training Material Latest

Documents

Transcript of Sap Mm Lct Training Material Latest