MM – Configuration

Purchasing
Objective

To understand

Purchase Order
Contracts
Scheduling agreements
Condition
Partner Function
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PURCHASE ORDER

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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.
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 Processing Purchase Orders

Purchase Create Vendor/

Requisition One-Time
Vendor
RFQ Purchase Order
Purchasing
Info Rec
Reference
PO
Price
Outline
Conditions
Agreement
 Contents in Purchase Order
PO PO Account Pricing
Header Overview Assignment Conditions

Texts
Order
PURCHASE History
ORDER
Delivery
Schedules

Additional
Data Services Changes
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.

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 Multiple Account Assignment

Pur Req 1 Pur Req 4

Chair 2 Desk 1
Cost Cost
Centre 2200 Purchase Order Centre 7211
Desc Qty
Pur Req 2
Chair 6
Cost 1. Swivel Chair 12
Centre 2100 2. Desk 01

Pur Req 3
Chair 4
Cost
Centre 3200
 Item Category in Purchase
Order
Item Category
Normal Item
Purchase Order Consignment
Third Party

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

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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

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 Processing Contracts
Vendor/
Purchase
One-Time
Requisition Create
Vendor
Contract

Purchasing
RFQ
Info Rec

Reference Price
Contract Conditions
Release
Order March 2000

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

Stocks 21 22 23 24 25 26 27

28 29 30 31
 Item Category in Contract
Item Category
Standard Item
Contract 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)

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 Account Assignment Category

Create Contract Account Assignment Category

A Asset
C Sales Order
K Cost Centre
U Unknown
X All Auxiliary Account Assignment

Release Order Account Assignment Category

A Asset
C Sales Order
K Cost Centre
U Unknown
X All Auxiliary Account Assignment
 Release Orders

Purchasing Release Order

Contract Data Qty Date
Copied

Open Target
“Qty”
 Centrally Agreed Contract
Contract
Purchase
COMN
Org.

Plant

PO PO PO

Purch. Purch. Purch.

Org. 2100 Org. 2100 Org. 2300
Plant : MIND6 Plant : IND7 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
Reference
Purchase Reference
Scheduling
Request RFQ
Agreement

Vendor
Scheduling Delivery
Agreement Schedule
Vendor 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

Let’s 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. Ordering address
b. Supplier of goods
c. Invoicing party
d. 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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