MM Configuration

Purchasing
Objective
To understand
Purchase Order
Contracts
Scheduling agreements
Condition
Partner Function
1

PURCHASE ORDER

Purchase Order
PO is the legal document asking
vendor to supply material or services
with agreed conditions.
PO can be controlled with header level
release procedure.
Item category and account assignment
are important in PO like PR.
3

Processing Purchase Orders

Purchase
Requisition

Create

RFQ

Purchase Order

Reference
PO
Outline
Agreement

Vendor/
One-Time
Vendor
Purchasing
Info Rec

Price
Conditions

Contents in Purchase Order

PO
Header

PO
Overview

Account
Assignment

Texts
PURCHASE
ORDER

Delivery
Schedules

Additional
Data

Services

Changes

Pricing
Conditions

Order
History

Account assignment in PO
Every item in PO is assigned to an
account.
One item can be assigned with more
than one accounts also.
E.g. Procurement of certain project
related items has to be accounted
with two cost center.

Multiple Account Assignment

Pur Req 1
Chair
2

Cost
Centre 2200

Pur Req 2
Chair
6

Cost
Centre 2100

Pur Req 3
Chair
4

Cost
Centre 3200

Pur Req 4
Desk
1
Purchase Order
Desc

Qty

1. Swivel Chair 12
2. Desk
01

Cost
Centre 7211

Item Category in Purchase

Order
Purchase Order

Item Category
Normal Item
Consignment
Third Party

Account Assignment
= Mandatory when material Consumable
= Optional when material Stocked
= Not Allowed when Consignment

CONTRACTS

Contracts
Contracts are of two types
Quantity contract
Value contract
It can be created with reference to
requisition
RFQ
another contract
Or
directly
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Contracts

cont..

Contracts does not contain Delivery

date
Release order created with reference
to contract will have the delivery date.
Contract has the validity period

11

Processing Contracts
Purchase
Requisition

Vendor/
One-Time
Vendor

Create

Contract
RFQ

Purchasing
Info Rec

Reference
Contract

Price
Conditions
Release
Order

Stocks

March 2000
1

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

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28

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30

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Item Category in Contract

Contract

Item Category
Standard Item
K Consignment
M Material Unknown
W Material Group

Account Assignment
= Mandatory when material Consumable
= Optional when material Stocked
= Not Allowed when Consignment

Contract item category

Use M item category for unknown material
If contracts specifies target value for all material,
use material group W (only in value contract)

14

Account Assignment Category

Create Contract

A
C
K
U
X

Account Assignment Category

Asset
Sales Order
Cost Centre
Unknown
All Auxiliary Account Assignment

Release Order

A
C
K
U
X

Account Assignment Category

Asset
Sales Order
Cost Centre
Unknown
All Auxiliary Account Assignment

Release Orders

Contract

Purchasing
Data
Copied
Open Target
Qty

Release Order
Qty Date

Centrally Agreed Contract

Contract
Purchase
Org.

COMN

Plant

PO

PO

Purch.
Org. 2100

Purch.
Org. 2100

Plant : MIND6

Plant : IND7

PO
Purch.
Org. 2300
Plant : 9100

SCHEDULING AGREEMENT

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Scheduling agreement
It specifies
Order quantity
Price
specific period to supply
There is a delivery schedule for each
scheduling agreement
Helps to reduce paper work
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Types of Scheduling agreement

Scheduling agreement can be
With release procedure
Without release procedure

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Processing Scheduling
Agreements
Purchase
Request

Vendor

Reference
RFQ

Vendor
Scheduling
Agreement
---------------------------------------------

Reference
Scheduling
Agreement

Delivery
Schedule
2/24
3/24
5/26

CONDITION

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Pricing Condition
Pricing describes the price and cost
Pricing is controlled with condition
technique
Lets discuss about condition
technique before we go to pricing.

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Condition Technique
It is used across all modules in SAP
output determination
Work flow
Batch determination
Partner determination
Condition technique is used to determine
total cost of purchase in MM

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Condition Technique

cont..

Following are the three important

component
Condition Table / condition type
Access sequence
Condition record

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Condition Table
Condition table specifies the fields
combination.
System searches through predefined
tables in a sequence.
It is defined in the configuration.

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Condition Type
Condition type is the four letter key
controls
Calculation type
Type of changes allowed
Scale basis
Condition type contains access sequence

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Access Sequence
There can be more than one table used to
define different field combination
It is required to search more than one table
to fetch a record.
Defining the sequence in which these
tables are to be accessed is known as
access sequence.

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Condition Record
Condition records is the master data.
Maintaining values for the condition
table is known as condition record.

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PARTNER FUNCTION

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Partner Function
Defines the responsibilities of people
involved in the business.
Example in MM are:

a.
b.
c.
d.

Ordering address
Supplier of goods
Invoicing party
Different payee
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Partner Function Contd..

Many business partners can be defined
as partner in SAP.
E.g. Vendors, Carriers
Roles of each partner can be defined.
E.g. Certain vendors are only for
ordering and not for invoicing.

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Summary
You must have understood
Purchase Order
Contracts
Scheduling agreements
Condition
Partner Function
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