SD INTEGRATION

FI - INTEGRATION WITH MATERIAL MANAGEMENTS

MM ORGANISATIONAL STRUCTURE
Cross plant Purchasing Organization
Company Code - 1000 2000

Purchase Org Plant

Cross plant Purchasing Organization - 1000 ABCD - 1100 0001 0002 0002 1200 1300

Plant- Specific Purchase Organization

Company Code - 1000 2000

Purchase Org Plant

Plant Specific Purchasing Organiz - 1000 ABCD - 1100 0001 0002 0002 1200 1300

Cross Company Code Purchasing Organization

Company Code - 1000 Purchase Org Plant 0001 Cross Company Code Purchase Organ - 1000 ABCD - 1100 0002 0002 1200 1300 2000

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SD INTEGRATION

MM MATERIAL MOVEMENT FLOWS

MM

MM Quotation PurchQuotation Agreement GL, AP Update Receipts Goods Receipts Invoice GR / IR MM Purchase Requisition PR Purchase Order PR

FI

Procurement Cycle

Invoice Verification Outgoing Payment MM FI FI

MM Flows Raw-material Purchase enquiry Purchase quotation Purchase Order GR - Goods Receipt (Raw-material) IR - Invoice receipt Goods (Raw-material) issue for Consumption to Production department Goods (Finished) received from production department MM journal entries

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SD INTEGRATION

1- When Purchase enquiry No FI entry 2- When Purchase quotation No FI entry 3- When purchase order No FI entry 4- When goods received Inventory of Raw-material Account Dr To GR / IR Clearing Account 5- When invoice received GR / IR Clearing Account Dr To Vendor Account 6- When Goods issued for consumption Raw-material consumption account Dr To Inventory of Raw-material account 7- When Goods received form production Inventory of finished goods account Dr To Increase / Decrease stock account Movement Types Specifying a key for the types of goods movements. Each goods movements is allocated to a movements type in this system. For each material movements the system the movements types to determine the rules for updating stocks, qualities and the stock values in the relevant accounts. Standard movements types 101 Material receives against the purchase order / production 102 Reverse of 101 or Purchase order 201 Issue to cost centre 202 Reversal of 201 261 Issue to orders

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SD INTEGRATION 262 Reversal of 261 521 Material receive without production order 522 Reversal of 521 561 When opening stock posting 562 Reversal of 561 601 When goods deliver 602 Reversal of 601 Transaction keys These transaction keys are used to determine accounts or posting key for line items which are created automatically by the screen. These transaction keys are defined in this system and cannot be changed by the user. BSX Inventory postings (every inventory accounts we assign BSX key) WRX For GR / IR Accounts PRD Price difference accounts / production order differences GBB Offsetting entries for inventory posting Offsetting entries for inventory posting VBR Raw-material Consumption account VNG Scraping BSA Opening stock taken AUF Production receive against production order ZOF Production receive without production order VAY Delivery where sales accounts is a reverse accounts AVA Production order difference VAX Delivery where sales accounts not a revenue accounts Valuation Classes Valuation classes is nothing but sub-classify of the material 1- Raw-material Local material Imported material Inter unit material 2- Stocks Imported , Local 3- Finished Goods Own goods

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SD INTEGRATION Other goods (Imported goods) Valuation Area Valuation area is nothings but Plant Valuation grouping / Valuation modify / Valuation modification tools It is nothing but combination of Company code + Plant + Chart of Accounts Movements type Similar to Accounts group is material type ROH Raw-Material FERT Finished goods FRSA Storage and spares VERP Packing material HAWA Trade groups DIEN Services MM Integration Steps Define Plant (OX10) Path: Spro Img Enterprise structure Definition Logistics general Define, Copy, Check plant Double click on Define plant Check on new entries Plant TAPL (Any code) Name Plant in Hyderabad Factory calendar 01 Click on address field Country IN (Give complete address) Click on Save Define, Copy, Delete, Check the Division (OVXB) Path: Same Double click on define division Click on new entries Division Name ST Steel Press enter key and Save

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SD INTEGRATION Come back Note: You can create any division like Marketing, Purchasing etc Maintain Storage location (OX09) Path: Spro Img Enterprise structure Definition Material managements Maintain storage location Plant TAPL (Tick mark) Click on new entries Storage location Description HYD Hydrabad Press enter key and Save Comeback wise Maintain Purchase Organization (OX08) Path: Same Click on new entries Purchase Organization Purchase Organization Description TAPO Raw-material Purchase organization Press enter key and Save Come back wise Assign Plant to Company code (OX18) Path: Spro Img Enterprise structure Assignments Logistics-general Assign plant to company code Click on new entries Company code Plant TAST TAPL Press enter key and Save. Comeback wise Assign Business area to Plant / Valuation area / Division (OMJ7) Click on plant/ valuation area/ Division Click on new entries Plant Division Business area TAPL ST TAHY Press enter key and Save Comeback three times Assign Purchase organization to company code (OX01)

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SD INTEGRATION

Path: Spro Img Enterprise structure Assignments Material managements Assign purchase organization to company code Click on position Purchase organization TAPO (tick mark) Company code TAST Press enter key and Save Comeback wise Assign Purchase organization to plant (OX17) Path: Same Click on new entries Purchase organization TAPO Press enter key and Save Come back Plant TAPL

Creation of Material Group (OMSF) Path: Spro Img Logistics-general Material masters Settings for key fields Define material group (OMSF) Click on new entries Material group Material group description CHM Chemicals Press enter key and Save Comeback wise Not: Just like you can create any number of groups Creation of Purchase group (OME4) Path: Spro Img Material managements Purchasing Create purchase group Click on new entries Purchasing group RAM Press enter key and Save Come back wise Description of purchasing group Raw-material purchasing group

Maintain Company code for material managements (OMSY) Path: Spro Img Logistics-general Material masters Basic settings Maintain company code for material managements

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SD INTEGRATION Click on position Company code TAST Year Period ABP (Allow back date period) 2009 1 Tick mark Press enter key and Save Note: Here we can open two period at a time Define Attributes of Material types (OMS2) Path: Same as up to basic settings Material types Define attributes of material type Click on position Material type ROH (Tick mark) Now select ROH Material type Double click on Qualities/ values updating folder Click on position Valuation area TAPL (Plant Code) (Tick mark) Quantity updating Value updating Tick mark Tick mark Press enter key and Save Double click on material types folder Click on position Material type FERT (Tick mark) Select your material type FERT Double click on Quantities/ Value updating folder Click on position Valuation area TAPL (Plant code) (Tick mark) Quantity updating Value updating Tick mark Tick mark Press enter key and Save Come back wise Note: Just like you can give attribution for whatever material type you are using in the company Set tolerance limit for Purchase order (OMEU) Path: Spro Img Material managements Purchasing Purchase order Set tolerance limit for price variance Select PE, SE tolerance key from 0001 Company code Click on copy as field (F9) Change the company code in to TAST Press enter key Again change the company code in to TAST Press enter key and Save. Come back wise. Set tolerance limit for Goods receipts (OMC0)

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SD INTEGRATION

Path: Spro Img Material managements Inventory managements and physical inventory Goods receipts Set tolerance limit Select B1, B2, VP tolerance key from 0005 Company code Click on copy as field (F9) Change the company code in to TAST Press enter key Again change the company code in to TAST Press enter key Again change the company code in to TAST Press enter key and Save. Come back wise. Plant Parameters Path: Same as up to Inventory managements and Physical inventory Plant parameters Select 1000 plant Click on copy as field Change the plant in to TAPL (Plant in Hyderabad) Press enter key and Save Comeback wise Set tolerance limit for Invoice verification (OMR6) Path: Spro Img Material Managements Logistics invoice verification Invoice block Set tolerance limit Select BD and ST Tolerance key from 0005 Company code Click on copy as Change the company code in to TAST Press enter key Again change the company code to TAST Press enter key and Save Come back wise Define automatic status change (OMRV) Path: Same as up to Logistics invoice verification Invoice verification in background Define automatic status change Click on new entries Company code - TAST Press enter key and Save Comeback wise

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SD INTEGRATION

Assign tax procedure to country (OBBG) Path: Spro IMg Financial Accounting new Financial accounting global settings Tax on sales and Purchase Basic settings Assign country to calculation procedures Click on Position Country IN (Tick mark) Procedures TAXPRO Maintain default value for tax code (OMR2) Path: Spro Img Material managements Logistic-invoice verification Incoming invoice Maintain default value for tax code Click on new entries Company code TAST Default domestics Tax code Press enter key and Save Come back wise Note: If you have different tax code put tax code column nil so that while material purchase you can select any tax code otherwise you cannot change tax code according to the transaction GL Account creation Go to FS00 Create the following GL Accounts 1- Inventory of Raw-material account - Assets 2- Inventory finished goods accounts Assets 3- GR / IR Account Liabilities 4- Increase or Decrease stock Accounts Incomes 5- Raw-material Consumption Account Expenses Go to FS00 1- GL Accounts Inventory of Raw-material Accounts Company code TAST Click on create field Account group Assets Select balance sheet accounts Short text Inventory of Raw-material Account Long text Inventory of Raw-material Account Click on control data tab Select only balance in local currency

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SD INTEGRATION Select line item display Sort key 001 Click on create/ bank / interest tab Field status group G006 (Material Accounting) Select post automatically Press enter key and Save. 2- Just like Create the Inventory of finished goods accounts 3- GL Accounts GR / IR Accounts Company code TAST Click on create field Account group Liabilities Select balance sheet accounts Short text GR / IR Account Long text GR / IR Account Click on control data tab Select only balance in local currency Select open item managements Select line item display Tax category - * Select posting without tax allowed Sort key 001 Click on create/ bank / interest tab Field status group G045 (Goods / Invoice receive clearing) Press enter key and Save. 4- GL Accounts Increase / decrease of stock Accounts Company code TAST Click on create field Account group Incomes Select profit and loss accounts Short text Increase or decrease of stock Account Long text Increase or decrease of stock Account Click on control data tab Select line item display Sort key 001 Click on create/ bank / interest tab Field status group G030 (Chang in stock Account) Press enter key and Save. 5- GL Accounts Raw-material consumption Accounts Company code TAST Click on create field Account group Expenses Select profit and loss item

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SD INTEGRATION Short text Raw-material consumption Accounts Long text Raw-material consumption Accounts Click on control data tab Select line item display Sort key 001 Click on create/ bank / interest tab Field status group G003 (Material consumption account) Press enter key and Save Update this account to CO Group together valuation area (OMWD) Path: Spro Img Material managements Valuation and account assignments Account determination Account determination without wizard Group together valuation area Click on position Valuation area TAPL (Plant code) (Tick mark) Valuation grouping code X (Any code) Press enter key and Save Comeback wise. Define valuation class (OMSK) Path: Same Click on valuation class tab 3000 Raw-material 7920 Finished Goods Come back wise. Configure automatic Postings (OMWB) Path: Same Click on cancel tab Click on account assignments tab 1- Double click on BSX Transaction key (Inventory posting) Chart of account CHAC (Tick mark) Select valuation modify Select valuation class Click on save Valuation modify Valuation class Accounts X 3000 Inventory of Raw-material Accounts X 7920 Inventory of Finished goods accounts Press enter key and save.

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SD INTEGRATION Comeback wise 2- Double click on WRX transaction key (GR/IR Accounts) Select valuation modify Select valuation class Click on save Valuation modify Valuation class Accounts X 3000 GR / IR Accounts Press enter key and Save 3- Double click on GBB transaction key (Offsetting entries for inventory post) Select General modification Select Valuation modify Select Valuation class Click on save Valuation modify General modify Valuation class Accounts X VBR 3000 Raw-material consumption a/c X AUF 7920 Increase / Decrease stock a/c X ZOF 7920 Increase / Decrease stock a/c X VAY 7920 Increase / Decrease stock a/c X VAX 7920 Increase / Decrease stock a/c Press enter key and Save Comeback three times Documents types number ranges settings (OBA7) 1- WA - Goods issued 2- WE - Goods receive 3- RE - Invoice posting (Purchase) Go to OBA7 for documents 1- Click on position Documents type WA (Tick mark) Double click on WA Documents type Click on number range info tab Company code TAST Click on change intervals tab Click on insert intervals tab No Year From number To number 49 2009 500001 600000 Press enter key and Save Just like define number range for WE, RE documents type Vendor master data creation (XK01)

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SD INTEGRATION

Path: Sap easy access Accounting Financial accounting Accounts payable Master records Maintain centrally Create Company code TAST Purchase organization TAPO Press enter key Fill address and Name fields Press three times enter key Reconciliation accounts Sundry Creditors Sort key 012 Cash management A1 Press enter key Payment term - 0001 Tolerance - TAMV Press three times enter key Order currency INR Terms of Payments 0001 Select GR Based invoice verification Press enter key and Save Open Material periods (MMPV) Path: Sap easy access Logistics Material managements Material masters Other Close period From Company code TAST Period 1 (Give current period) Fiscal year 2009 Press F8 for execute Comeback wise To Company code TAST

Note Before Creating a material Go to MMPV check which is the current open period activated in the system. If it is showing the previous period (suppose period 01 is activated) you cannot post any transaction in current period (Suppose current period is 05). In order to change this Go to MMPV Give the next Period 02 in the Period column and Select the Check and close period radio botton and press F8 for execute. Come back again Give the next Period 03 in the Period column and Select the Check and close period radio botton and press F8 for execute. Come back again Give the next Period 04 in the Period column and Select the Check and close period radio botton and press F8 for execute. Come back again Give the next Period 05 in the Period column and Select the Check and close period radio botton and press F8 for execute. Come back again Material Creation (MM01)

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SD INTEGRATION

Path: Sap easy access Logistics Material managements Material masters Material Create (General) Immediate Material MAT01 (Give your material name) Industry specter M Material type ROH - Raw-material Click on select view(s) tab Select Basic data1, Accounting, Purchasing Click on organizational level tab Plant TAPL Storage location HYD Press enter key Material Raw-material Base unit of measures KG Material group ST Gross weight 1000 Weight unit G (Grams) Net weight 1000 Click on Purchase tab Purchase group RAM Click on Accounting tab Valuation class 3000 Price control V Moving price 100 Press enter key and Save Postings Creation of purchase order (ME21N) Path: Sap easy access Logistics Material managements Purchasing Purchase order Create Vendor / supplying plant known (ME21N) Vendor Vendor Account Documents date 01-05-2009 Click on header tab Click on Organizational tab Purchase organization TAPO Purchase Group - RAM Company code TAST Item Material Po quantity Net price 01 (any) MAT01 100 100 Press enter key and Save Click on Save Note the purchase order number 4500017134

Currency INR

Plant TAPL

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SD INTEGRATION

When Goods received (MIGO) When Goods received The FI entry will be Inventory of Raw-material Account Dr To GR / IR Clearing Account Path: Sap easy access Logistics Material managements Inventory managements Goods movements Goods receipts For purchase order Purchase order number known Purchase order 4500017134 Press enter key Click on Quantity tab Quantity in delivery note 100 Select Item OK Click on Where tab Storage location HYD Press enter key and Save Note the documents number 5000011896 Go to FBL3N and check the concerned GL Accounts Note: The posting will be done like this Inventory of Raw-material Account Dr 10000 (100 * 100) To GR / IR Clearing Account - 10000 Display of Goods received documents (MB03) Path: Sap easy access Logistics Material managements Inventory managements Material documents Display Material documents 5000011896 Year 2009 Press enter key Click on Accounting documents tab When invoice is received (MIRO) The FI entry will be when invoice received GR / IR Clearing Account Dr To Vendor Account Path: Sap easy access Logistics Material managements Logistics invoice verification Documents entry Enter invoice (MIRO)

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SD INTEGRATION Invoice date 01-05-2009 Posing date 01-05-2009 Amount 10000 Activate Tax Select Tax key A1 Text Invoice posting Purchasing order / scheduling agreem 4500017134 Press enter key Click on Payments tab Base line date Give current date Press enter key and Save Go to FBL3N check the concerned GL GR / IR Clearing account Vendors Input tax Surcharge Edu-cess - 1000 - 10441.2 - 400 - 40 - 1.2

Display of Invoice documents Go to invoice documents on menu bar Display Click on follow-on documents tab When Raw-material send to Production Department for Processing (MB1A) While sending Raw-material to production department for the processing the FI entry will be Raw-material consumption account Dr To Inventory of Raw-material account Path: Sap easy access Logistics Material Managements Inventory managements Goods movements Goods issue Documents date Give Current date Posting date Give current date Movement type 201 (Issued to cost centre) Plant TAPL Storage location HYP Press enter key Business area TAHY Cost centre Dep A Material Quantity MAT01 100 Press enter key and Save Note the documents number 4900035012 Display of Goods issued documents

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SD INTEGRATION

Go to goods issue in Menubar Select display Material Documents number 4900035012 Year 2009 Press enter key Click on Accounting documents tab Double click on Accounting documents Documents display Go to Goods receipts in menu bar Display Press enter key Click on Accounting documents tab Double click on Accounting documents Come back wise Display of Material Ledger Path: Sap easy access Logistics Material managements Inventory managements Environments Stocks Stocks for posting date Material number MAT01 Company code TAST Plant TAPL Press F8 for execute Come back wise.

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