You are on page 1of 167


Overview of SAP MM module Introduction to Master Data How to create Material master data How to copy Material Master How to change material master Mass Creation of Material Master Material Master Views !ltimate "uide Overview Of #uotations$ How %o Create &'# How %o Compare Price 'or Different #uotations How %o Select Or &e(ect A #uotation How %o Define Condition %ypes How %o Create #uotations How %o Create A Source )ist

How %o Define Access Se*uence And Condition %a+le How %o Create A Purchase Info &ecord How to Change a Purchase Info &ecord Introduction %o Purchasing And Purhase &e*uisition How %o Create A Purchase &e*uisition How %o Convert Purchase &e*uistion %o Purchase Order How %o Create A Purchase Order How %o Create Purchase Order ,ith &eference How %o Change A Purchase Order &elease Procedures 'or Purchasing Documents Service Purchase Order Special Stoc- And Special Procurement

How %o Post "oods &eceipt How %o Cancel "oods &eceipt How %o Perform Invoice Verification Overview Of Pricing Procedure &eservation Of Inventory How %o Issue "oods How %o Create "oods &eceipt How %o &elease An Invoice Overview Of Inventory Management

Overview of SAP MM module

Materials Management module in SAP consists of several components and subcomponents. The most prominent and widel used are Master !ata" Purchasing and #nventor .

All of these components have their subcomponents that are essential in specific business processes" and all of the processes are e$ecuted b using transactions. Transaction %in SAP& means processing of certain information in order to complete business process re'uirement. (or e$ample" if ou have purchased 1) pieces of litter buc*ets" ou can perform particular transaction code %t-code& that will reflect those changes in SAP. Most of the business processes involve multiple SAP transactions to be accomplished and are spread over one" two or more modules.

Introduction to Master Data

What is Master Data?
Master data in SAP is used as a base for an transaction. #f ou are producing" transferring stoc*" selling" purchasing" doing ph sical inventor " whatever our activit ma be " it re'uires certain master data to be maintained. +e have material master data" customer master data" vendor master data" pricing,conditions master data" warehouse management master data %storage bin master data& etc.

4 The ones we will focus in MM module are material master and purchase info record.

Material Master: What you should know about material master?

Material in SAP is a logical representation of certain goods or service that is an ob.ect of production" sales" purchasing" inventor management etc. #t can be a car" a car part" gasoline" transportation service or consulting service" for e$ample. #n#n#n All the information for all materials on their potential use and characteristics in SAP are called material master. This is considered to be the most important master data in SAP %there are also customer master data" vendor master data" conditions,pricing master data etc&" and all the processing of the materials are influenced b material master. That is wh it/s crucial to have a precise and well maintained material master. #n order to be confident in our actions ou need to understand material master views and its implications on processes in other modules" business transactions and a few more helpful information li*e tables that store material master data" transactions for mass material maintenance %for changing certain characteristics for a large number of materials at once&.

Material types
#n SAP 01P" ever material has a characteristic called 2material type which is used throughout the s stem for various purposes.

Why is it essential to differentiate between material types and what does that characteristic represent?
1. #t can represent a t pe of origin and usage 3 li*e a finished product %produced goods read for sale&" semifinished product %used as a part of a finished product&" trading goods %for resale&" raw materials %used for production of semifinished and finished products& etc. These are some of the predefined SAP material t pes among others li*e food" beverages" service and man others. 2. +e can define our custom material t pes if an of standard ones doesn/t fulfill our need.

Most used material t pes in standard SAP installation

What can be configured on material type level (possible differences between types)?
1. Material master views5 #t defines the views associated with a Material T pe. (or e$ample" if we have a material t pe 2(01T6 assigned to our material Product 1))) 3 we don/t want to have Purchasing based views for that material because we don/t need to purchase our own product 3 it is configured on material t pe level. 2. !efault price control5 we can set this control to standard or moving average price %covered later in detail&" but this can be changed in material master to override the default settings. 3. !efault #tem categor group5 used to determine item categor in sales documents. #t can be changed in material master to override the default settings. -. internal,e$ternal purchase orders" special material t pes indicators" and few more.

7ffered material t pes in MM)1 transaction So material t pe is assigned to materials that have the same basic settings for material master views" price control" item categor group and few other. Material T pe can be assigned during the creation of the material in t-code MM)1 %covered in detail later&

Where can we find a complete list of materials with their respective material type?
There are numerous transactions for this. The raw data itself is stored in MA1A table % ou can view table contents with t-code S018 or S0189 3 newest version of the transaction&" but in some s stems these t-codes aren/t allowed for a standard user. #n such cases" we can easil ac'uire the list with t-code MM8) %Material list&. MM8) is used particularl often as it displa s a lot of basic material characteristics. Selection screen 3 ou can enter onl the material number5


Selection screen for MM8) transaction +e can see that material 1)-1)--8 in plant A1)1 is of t pe (01T %finished product&.

MM8) report results with the e$port button highlighted :sing the toolbar button highlighted on screen" we can e$port the list of materials we have selected on screen.

Material group
Another characteristic SAP material is assigned during it/s creation is 2material group, which can represent a group or subgroup of materials based on certain criteria.

How to create Material master data

+hen we want to use a new material in SAP" we have to define it/s characteristics" in order to control it/s behaviour in all of the transactions. 0ver material is created in the either of these two wa s5 1. ; calling transaction MM)1 %mostl used in a productive environment& 2. Mass creation %mainl used onl once on transition of materials from the previous s stem into SAP 01P&

A +e will focus now on transaction MM./" and leave the mass creation for later since it is an advanced tool. +e will discuss it after ou have enough *nowledge about material master views and organi=ational levels. Step /0 Transaction that is used for the creation of material master record" as stated above is MM./. The e$ecution of the transaction brings us to the initial screen" which consists of few fields that contain the basic information on our material. 1. 0nter #ndustr sector %mostl used5 M-Mechanical engineering& 2. 0nter Material t pe" %it can be (01T" 17>" >A?;" >A+A 3 the appropriate material t pe for current material&

1ote2 Material number %alphanumerical *e uni'ul identif ing material in SAP s stem& can be generated automaticall or assigned manuall 3 it depends on material t pe. (or material t pe >A+A for e$ample" ou can have manual number assignment" while for (01T ou can have automatic number assignment. These settings are supposed to be done b MM consultant in customi=ing during the implementation. Step 30 +e can choose which master data to create. 1. +e can clic* on Select View4s0 to choose which views we need to create for the material. 2. Select ;asic !ata 1 3. Select Sales 7rg !ata 1. @ou can alwa s e$tend the material master data later if ou forgot to choose all needed views.

C -. Select the Bhec* Mar*. @ou can see an option button mar*ed in blue on the screen below for selecting all views %rarel used in a productive environment&.

Note: Selection of views that can be maintained for material depends on material type. In most of the systems some views are disabled for certain material types ( for example MR views might be disabled for trading goods!. Step 50 #n the ne$t screen 1. 0nter 7rgani=ational levels for the views we selected in the previous step.(or e$ample" those could be Plant" Storage ?ocation" Sales 7rgani=ation and !istribution Bhannel etc.

1) 2. Blic* the Bhec* ;utton

;elow ou can find a complete reference of organi=ational levels needed for creating material master views.

Material Master View ;asic data %1 D 2& Blassification

Organi6ational )evels 9one 9one

Sales organi=ation data %1 D Plant" Sales 7rgani=ation" !istribution 2& Bhannel Sales Eeneral (oreign Trade 3 0$port data Purchasing M1P Fiews (orecasting +or* Scheduling Eeneral Plant !ata %Storage 1 D 2& +arehouse Management 1 Plant Plant Plant Plant" Storage ?ocation" M1P Profile Plant" (orecasting Profile Plant Plant" Storage ?ocation

Plant" +arehouse 9umber


+arehouse Management 2

Plant" +arehouse 9umber" Storage T pe Plant Plant Plant

Gualit Management Accounting %1 D 2& Bosting %1 D 2&

Table of material master views connection to organi=ational levels IMPORTANT: @ou need to maintain materials in all of our organi=ational levels in which the are going to be used. #f ou have more than one plant than ou have to repeat MM)1 transaction in order to e$tend our materials for both plants. #f ou have more than one combination of Sales organi=ation,!istribution channel ou also have to repeat the process in MM)1 for all of the combinations.

How to copy Material Master

#n this tutorial we will go throught the process of cop ing an e$isting material master data into new material Step /0 #n transaction MM)1 1. 0nter material number that ou want to create. 2. 0nter our e$isting material from which we want to cop the data.

3. Blic* on Select Views button.

12 Step 30 1. Select the views ou need to cop to new material 2. Blic* 7rg levels

Step 50 1. @ou can choose which organi=ational levels will be created for our new material. 2. And from which organi=ational levels of reference material master data should be copied. 3. Bonfirm.


Step 70 @ou are presented a screen for view maintenance. @ou can select an view and change data to a value that differs from the reference material.(or e$ample" weight and description. 1. Bhanging material description as this is our 2-H model not -)H. 2. Bhanging gross weight. 3. Bhanging net weight.


@ou should chec* all the other view and change the material specific data.@ou should go through the additional data %descriptions for other languages" units of measure& as this data should be different for our new material. Step 80 Bic* the save button. Material is created


How to change material master

#t ma be needed to change certain option in our material master %due to the organi=ational changes" or changes in processes&. +e cannot use MM)1 as that is the transaction code used onl for creating views that are not maintained for certain material. #n this case" we need to use MM)2 and MM)3 transaction codes.

14 #n SAP transactions ending with )1 are for creating" ending with )2 for editing,changing" and the ones ending in )3 are used for viewing data without possibilit to change it.

Process to change Material Master

Step /0 1. 0nter transaction code MM72 in the command prompt 2. 0nter the material number whose material master data we want to change.

Step 30 1. The ne$t step is choosing the views for which data is to be changed. (or e$ample" we will choose sales organi=ation data 2 view. @ou can choose one or more organi=ational levels for change. 2. Blic* on 7rgani=ational ?evels


7rgani=ational level selection Step 50 1. Ma*er the desired changes. 2. Blic* the chec* button.

1< Step 70 After ou have made the changes " ou can chec* the changes in the corresponding view

Step 80 Blic* the save button " to save the changes 1O%92@ou can use transaction MM)3 to displa Material Master !ata. #n MM)3" we can onl displa data without the possibilit to change it %fields are gre ed out&.



Mass Creation of Material Master

#n order to create multiple materials at once" ou should have access to a function li*e 1. 2. 3. -. eCatt tool )SM,%?egac S stem Migration +or*bench& :DC %;atch !ata Bommunication& recordings :API %;usiness Application Programing #nterface&

@ou can also use mass maintenance transaction MM/; to create views in some cases. ;ut ou must *eep in mind that not all of the organi=ational levels should contain the same data %MM1< re'uires that all data for the materials and organi=ational levels ou select should be the same&.

1C Mass creation is never considered to be end users responsibilit .;ut as a module specialist ou ma need to wor* on MM/; . #n case of ?SM+" ;!B or ;AP#" it is considered to be developers or consultants wor*. So ou do not have to understand in detail" ou .ust have to *now the concept" and that there is this *ind of possibilit for mass data maintenance. @ou can use MM1< for mass changing of material master data %if something can/t be accomplished b this transaction it can be done using ?SM+" ;!B or ;AP#&. Step /0 1. 0nter transaction MM1< 2. Select the data t pe ou need to change" for e$ample" we need to change a field in general data. 3. 0$ecute.

Step 30 1. 0nter the material range or list for which we want to change the data 2. 0$ecute


Step 50 1. +hen clic*ing on the button shown below 3 ou will get the Select fields screen. 2. Bhec* the appropriate field %we are changing base unit of measure for our two materials&. 3. Blic* the arrow pointing to the left to add the selected field to the list of fields to be changed. -. Blic* the 7I button.

Step 70 9ow we are presented with the ne$t screen where we can input our value to be transferred. ?et/s sa we have maintained PA? 3 pallet as the base unit of measure for out TF sets 2- and 32H and we need to change that to PBS 3 pieces. 1. 0nter the value ou want to cop in the bo$. 2. Blic* on the column heading.

21 3. Select the button" to overwrite the old values b 2PBS6. -. 0$ecute.

9ow our settings are saved" and our material master data is changed.

All A+out Outline agreement

7utline agreement is a long-term purchase agreement between vendor and customer. 7utline agreement are two t pes5 1. Bontract 2. Scheduling Agreement Contract The contract is draft agreement" and the do not include deliver dates for the material. Bontract is two t pes 5 1. #uantity Contract5 This contract considered to fulfilled when the compan supplied an agreed total 'uantit of materials against the contract. 2. Value Contract5 This contract considered to fulfilled when the compan supplied agreed total value of material against the contract. #uantity Contract Step-1 1. 0nter T-code M031I in the command field. 2. 0nter Fendor , Agreement T pe %MI- Guantit Bontract& , Agreement !ate. 3. 0nter Purchase 7rg." Purchasing Eroup in organi=ational data.


Step<3 0nter Falidit 0nd date of contract in header data screen.


0nter Material "Target 'uantit %A 'uantit for which 'uantit contract being created& and net price Blic* 7n Save ;utton.


A message as 3$ Scheduling agreement

will be displa ed.

The scheduling agreement is a long-term purchase agreement with the vendor in which a vendor is bound for suppl ing of material according to predetermined conditions. !etails of the deliver date and 'uantit communicated to the vendor in the form of the deliver schedule. Step</ 1. 0nter T-code M031 in command field. 2. 0nter Fendor , Agreement T pe %?P- Scheduling agreement& , Agreement !ate. 3. 0nter Purch. 7rgani=ation , Purchasing group.

2Step<3 0nter Falidit 0nd !ate in header screen.

Step<5 0nter Material , Target Guantit , 9et Price , Plant in #tem 7verview Screen.

Step<7 0nter 0$clusion in ne$t screen .

Step<8 Eet bac* previous screen item overview and clic* on save button.

24 A message as below -

Material Master Views

!ltimate "uide

#n this section" we will cover all the MM views with the implication on vital processes in standard SAP s stem. @ou will see how each of the views is created" its obligator data" optional fields" and how its creation reflects the s stem. This tutorial is <))) wordsJ. (or eas reference " we have created a clic*able inde$ below " which will ta*e ou to various sections of the tutorial

;asic Fiews Blassification Fiew Sales 7rgani=ation !ata 1 Sales 7rgani=ation !ata 2 Sales Eeneral , Plant Fiew (oreign Trade , 0$port Fiew M1P Fiew 1 M1P Fiew 3 M1P - Fiew Plant data 3 Storage 1 Fiew +arehouse Management 1 Fiew +arehouse Management 2 Fiew Gualit management Fiew Accounting 2 Fiew Bosting 1 Fiew Bosting 2 Fiew Purchasing Fiew (oreign Trade #mport Fiew Purchase order te$t Fiew Additional data

Basic Views
;asic views are views with general information about our material. 7bligator fields ou need to insert in order to save changes are 1. Material description2 ?B! TF -)H 3 this can be maintained in various languages. 2. :ase unit of measure %often referred to as :ase !OM&5 PBS 3 this is the unit of measure in which material stoc* is managed. (or a TF set" it/s natural to be a piece. @ou can also use meter" *ilogram" or an other unit ou have defined and is suitable for material.

28 3. Division5 1) 3 !ivision for the material" ou could create divisions 1)" 2)" 3)" -) for finished goods" trading goods" services" and other materials" so ou can categori=e them in this wa . +e have selected division 1) for our material since it is finished goods. -. "eneral Item category group2 971M 3 Standard item. :sed throughout the s stem" this indicator has an effect on sales and stoc* transfer processing as it is used in item categor determination. 4. ,eight unit5 Ig 3 unit in which product weight is entered. 8. "ross weight5 28"CAA 3 gross weight of 1 unit of product in weight unit$ 1et weight5 2-"841 3 net weight of 1 unit of product in weight unit

;asic data 3 optional fields

2< Material group 3 ou can enter material group here Product hierarchy 3 this field is used in sales and distribution and is maintained in Sales organi=ation 1 view. 9A1=!PC 3 Material 0A9 code" besides usage in bar coding" it is particularl utili=ed in +arehouse management as a uni'ue identifier for material and pac*age combination. 7ne material can have several bar codes. 7ne for the base unit of measure. 0ver alternative unit of measure can also have it/s 0A9" but it/s not a re'uirement" it/s an option. 7ther fields are optional. 1O%92#n the upper part" %mar*ed in green& ou can see views that are possible to maintain for current material. @ou can navigate b clic*ing on the appropriate view name.

Classification View
Materials can be classified in order to be found later b their class" batch characteristics etc. ?et/s sa we have a lot of TF sets with different dimensions colors etc. @ou can create two classes5 dimension and color. ?ater ou can use it to find all the blac* TF sets" or TF sets of a certain dimension.

Blass t pes available in standard SAP ; choosing Material Blass 3 ))1 ou are e$tending material for this class t pe. 9ow we have to add a class we want to use for our material. A class called "eneral could consist of two characteristics5 "olor and #imension" or an thing that ou might need while categori=ing materials or searching them in MM module" or other modules. After class assignment to the material" ou can maintain characteristics that this class contains. #n our case" we have a class named General that contains characteristics Color and Dimension. +e can populatethe appropriate fields.


Assigning a class and maintaining values for characteristics #t is a good practice to include the color of our product in material description as wellK it is e$tremel useful to other users. (or e$ample while creating sales orders in S!" for pic*ing and putawa processes in warehouse management" purchasing department" production planning etc. @ou can now save our changes.


Saving Blassification view

ales !rgani"ation Data #

+hen ou choose this view" a screen with organi=ational levels will appear. >ere" ou can choose for which Plant" Sales organi=ation and !istribution channel ou want to e$tend our material.


After confirming 7rgani=ational ?evels" ou are presented a screen which contains the data regarding sales activities. The onl mandator field is the deliver unit. 7thers are optional" but the might be needed in order to use some advanced features. (or e$ample" if ou want to use d namic rounding profile %must be customi=ed b S! consultant&" ou have to maintain field Rounding profile. ?et/s find out what are the most important fields in sales views. The most crucial thing about sales views is that the are open. +hen we do that people from S! module can sell our material through that Sales 7rgani=ation , Bhannel. So essentiall ou would onl have to populate the !eliver unit field and save the data" and immediatel material becomes available to be used. To get a better understanding of Sales organi=ation" thin* of it as an office that sells our products. #n this office" ou have people that sell products in our home countr 3 the are using distribution channel )1" and ou can have people selling abroad" e$port department that would be channel )2. 7n the screen below" ou can see all of the fields from Sales organi=ation 1 Fiew.


%a> category=indicator5 (or internal sales" we will have to define a full ta$ indicator since the ta$ is applied for sales inside the countr . (or e$port" %using division )2 for e$ample& we would set this to ) 3 9o Ta$. #t actuall depends on the ta$ polic of our countr " but most of the countries have this practice # mentioned. Delivery unit5 in most cases it/s first alternative unit of measure %bo$" pallet" something else&. @ou can see that here we will define 1 PA? 3 pallet as a deliver unit" but that doesn/t mean that we can sell onl entire pallet. +e will also be able to sell a single piece of this material" and the s stem will indicate to sales person that this material is meant to be delivered as 12 pieces on a pallet. :ase unit of measure5 this is gra ed out field as it is alread defined in ;asic !ata view 1 and cannot be changed afterwards. Division5 this is the division we have .ust selected in our organi=ational levels screen before current screen. Sales unit5 #f the field does not contain an entr " the s stem will assume that the unit of measure is the base unit of measure. #f ou don/t want to use pieces as a default sales unit of measure" ou can enter the appropriate unit of measure in this field. #t will reflect sales documents in this wa 5 3 Sales unit is not defined. Sales person enters 'uantit of - without specif ing unit of measure. S stem will assume that the re'uired 'uantit is - pieces 3 Sales unit is defined as pallet. S stem will assume that the re'uired 'uantit is - pallets Sales unit not

32 varia+le5 this chec* bo$ is used in cases when we re'uire the material to be sold only in sales unit. #f ou set the sales unit to PA?" and chec* this bo$" sales person will onl be able to sell this material using the PA? alternative unit of measure. This is being used rarel . !nit of measure group5 :sed mainl in con.unction with d namic rounding profile" this is an indicator which represents a group of units of measure that can be used for this material. Material group5 material group we discussed during the ;asic !ata view. Min$order *ty2 This is a minimal order 'uantit accepted for this material. Min$dely$ #ty2 This is a minimal deliver 'uantit accepted for this material. &ounding profile5 >ere ou can choose a specific rounding profile for material. S! consultant has to create the profiles to be shown as possible entries in this field.

ales !rgani"ation Data $

+ith same 7rgani=ational ?evels" we can create the sales organi=ation data 2 Fiew and maintain its data. Mostl statistical and grouping data are sub.ect of this view.

Important Sales Organi6ation Data 3 View fields

Material statistics group5 This is an indicator used to specif if this material is to be included in statistical transaction in S! module MCSI. #t is most used to set this indicator to 1 in most s stems.


"eneral item category group5 default item categor group for this material based on material t pe settings. @ou cannot change it. Product hierarchy5 This hierarch is used for reporting purposes so that sales management can anal =e sales data based on this hierarch . #t consists of two levels. (or e$ample" first level of hierarch could be ?B! TFs. #nside the first hierarch level" we can find more than one second level" and in our case" we can have ?B! TF -)H" ?B! TF 32H" ?B! TF 28H inside our first level which is ?B! TF. Another level would be Plasma TF. #n this first level" we can maintain Plasma TF 22H" Plasma TB 32H" Plasma TF -)H. 0ver first level of hierarch contains uni'ue second level hierarchies. Account assignment group5 this field represents the accounting re'uirements for the material. 7ften different t pes of materials re'uire different accounting re'uirements %finished goods" trading goods" services aren/t accounted in the same wa &. This is a point of integration with (#,B7 modules. Item category group5 it/s copied from 2- Eeneral item cat.grp field" but this is the categor group that is assigned to specific distribution channel. #t can be changed as opposed to the field no.2" and with this field ou can manage how will the same material will be used in sales in different channels. (or e$ample" ou might want a material to have different item categor in foreign sales activities than the default. #t is changed mainl under directives from S! team. Product hierarchy choosing the appropriate hierarchy from a predefined list2 @ou have probabl alread thought how product hierarch is hard to maintain. @ou onl see a bunch of numbers. #t/s hard to *now which numbers are appropriate fo particular material. ;esides the fact that this is the information that sales D distribution team should suppl to ou" there is an eas wa of browsing through all of the hierarchies. +hen ou push the button that shows ou possible entries for a field ou get to this screen5


(irst level of hierarch After selecting the appropriate first level" ou should clic* on 9e$t level button .ust as on the above screen. @ou will be ta*en to the screen with possible entries for second level of hierarch . As ou can see in the header of this screen" there is an indication that this second level of hierarch is for a first level ))1)) 3 ?B! TF5


Second level of hierarch (inal result is as on the screen below5

Product hierarch on Sales 7rgani=ation !ata 2 Fiew Other fields in Sales organi6ation Data 3 View Volume re+ate group2 group used for rebate settlement" can be set to ma$imum rebate" low rebate" depends on settings in S! module" this information is supposed to be provided b S! team. Pricing &eference Material5 material master record that should be used as a reference for pricing purposes. Commission group5 ou can assign the same commission group to more material as long as the commission is the same for both %for e$ample 4L&. Material pricing group5 used to group the material with the same pricing procedures. ?ater in S! condition record can be created based on this field" apart from standard ones %product hierarch &. @ou can combine material pricing group with the customer number to create a condition. Product

38 attri+utes5 ou can assign various product attributes to a material and chec* if the customer accepts this product attribute.

ales %eneral & Plant View

This view contains information about general sales characteristics of material. #t is maintained on Plant level.

Mandatory fields

Availa+ility chec-5 ver essential attribute" used to define the stoc* availabilit chec* method. These methods are defined b customi=ing team" and can include stoc* on storage locations" can be also set up to include 'uantities on process and production orders" planned orders" 'uantities in the transfer towards the plant from which sales is being processed" etc. )oading group5 e$tremel significant field as it is used in shipping point determination. Optional fields in Sales "eneral = Plant View &eplacement

3< part5 defines if this material is a replacement part or not. Material freight group5 used for grouping materials in order to be classified according to freight code and class. :atch management5 #ndicates if material is managed in batches or not. Approved +atch record re*uired5 determines if batch approval must be submitted before the batch can be transferred from restricted to unrestricted stoc*. %ransportation group5 a wa of grouping materials with same transportation needs. #t is used in S! module for route scheduling in sales orders and deliveries. 0$ample5 when ou have materials that re'uire to be transported carefull as the are fragile" and others are not. Setup time? Process time? :ase *uantity5 these three fields are used to calculate time consumed for shipping the material" the first is time in which ou will set up devices for shipping" second is processing time per base 'uantit %third&. Material "roup Pac-aging Materials5 this field is used for grouping the materials with similar pac*aging materials re'uirements. 1egative stoc-s5 #f ou chec* this bo$ ou will allow negative stoc*s for this material in this plant. This re'uires also a setting b our MM consultant on storage location level %in customi=ing&. Profit center5 assign an ade'uate profit center for the material for controlling module purposes. This means that profit made from this material will be assigned to the profit center set in this field. (or e$ample if this is a finished product that ma*es a profit b sales ou might want to choose a profit center for sales revenues. #t also depends on management decision. Management might prefer to use some other *e for profit center accounting. Serial num+er profile and Seriali6ation level5 these control seriali=ation of product %if ou have it active&" a profile used for the serial number" and seriali=ation level that could be b material number etc. Distri+ution profile5 signals where the incoming %procured& merchandise will be distributed in our plant.

'oreign (rade & )*port View

This view contains information about freight" foreign trade" e$porting of materials.


Mandator fields in this view are5 1. Commodity Code=Import Code 1um+er for 'oreign %rade5 This field contains either a commodit code or a tariff number. #t is a uni'ue standardised coding value for a certain t pe of goods. 2. 9>port import group5 s stem can use e$port,import groups to propose an e$port procedure for e$port,import processes in SAP. 3. Country of origin5 it represents the countr where this material has been produced. #f it/s finished goods produced in-house ou will enter our countr code here %in our e$ample it is !0 3 Eerman &. Other fields All the characteristics for sales views are supposed to be provided b the sales department %sales" freight&" the role of a material master specialist,user is onl to maintain them accuratel . Some other information ou can be given b our sales department to maintain in material master5 CAS num+er5 this field is onl used for pharmaceutical products. P&ODCOM no. 3 used onl in 0: countries for statistical purposes in production. Control code5 Bonsumption ta$ control code in foreign trade. &egion of origin5 ;esides countr ou can define a region in the

3C countr %for e$. ;avaria" >essen etc.& CAP product list no. 3 this is the number of the material in the 0: mar*et products group list 3 if applicable. CAP product group5 indicates a product group from BAP product list. 9>emption certificate5 indicating if the material has been issued a certificate that states that this material doesn/t need a license for e$port. 9>emption cert$ 1um+er5 9umber of the e$emption certificate. Issuing date of e>empt$cert$ 3 #ssuing date for an e$emption certificate. Military goods5 a chec* bo$ indicating if the material is mainl used in militar purposes.

ales (e*t View

@ou can define a sales item te$t for this material for various languages to be used in the sales documents. This could be some general e$planation about the material" or e$planation maintained on distribution channel level. #f ou maintain this te$t it will show up on the item level in all sales documents" and also in the printing version of sales documents.


M+P View #
M1P views are maintained mostl for production purposes. This information is supplied b the appropriate M1P controllor or someone else from production planning team. The onl mandator field in M1P 1 Fiew is Planning t pe. +e will cover the most important fields used in a productive environment in more detail.

Purchasing group5 this field is used to indicate which purchasing group is the default for purchasing this material. +e haven/t maintained it et as this is a finished product of our compan " we don/t need it to be purchased at an time. +e will set up this field for another material that needs to be purchased.

A:C indicator5 This is an indicator showing the importance of the material in terms of stoc* availabilit . Most of the companies use several A;B values" but most common are5 A 3 the most important materials" the need to be available for sales in ever moment customer re'uests it" : 3 less important materials that are often supposed to be available but the lac* of this material can happen and is

-1 allowed" C 3 ?east important materials. There can also be few more categories" 1 3 new" material not et tested on the mar*et" so we don/t actuall *now if it/s going to be A" ; or B et. S 3 material that is produced onl on customer re'uest" and D 3 same as S with the difference that it has a certain 'uantit on stoc* .ust in case someone needs it ASAP" in production planning it is called a material safet stoc*. M&P type5 there are various t pes of M1P that can be utili=ed. #n this case" our M1P controller signalled that it should be P! 3 default M1P for most of the SAP installations. M&P controller5 M1P controller responsible for production of this material" he manages all the data in these M1P views" along with the M1P results itself" production planning for this material etc. #t is usual that the M1P controller provides the data for M1P views" or even in some organi=ational structures M1P controllers are maintaining these views on their own. )ot si6e5 defines the procedure used b the s stem in order to calculate the procurement or production 'uantit of the material. Other fields in this view M1P group5 this setting is used to group materials with same M1P control parameters which are" for e$ample" the strateg group" the consumption mode" etc. #f this field is not maintained" the s stem will use material group from ;asic !ata 1 when performing the M1P. Plant<Specific Material Status2 #f set" this indicates the usabilit of material in special functions" for e$ample" material can be used for testing or is going to be discontinued" so the M1P doesn/t ta*e it into account when it runs. This setting could restrict the use of material in a particular function. &eorder Point5 indicates at which stoc* level M1P should create a new order %either procurement or production order&. Planning cycle2 c cle of planning" it is defined in customi=ing and assigned to a material" it can represent a da on which the planning is performed. Minimum and Ma>imum lot si6e? 'i>ed lot si6e5 used to indicate the boundaries for lot si=e" or a fi$ed 'uantit to be used. Ordering costs5 fi$ed cost per order in compan code currenc " used to calculate the optimal lot si=e. &ounding Profile and !nit of Measure "roup2 li*e the fields in sales views" these are the same fields ou can populate with rounding t pe to purchasing or production %if applicable&. &ounding value5 it is used in procurement for rounding the procurement 'uantit to a value of multiple of the number entered here.

M+P View $
M1P view 2 contains data about Procurement" Scheduling" and 9et re'uirements calculation.


Procurement type5 here ou can choose if our material has internal production %our case&" e$ternal procurement" or both t pes of procurements are possible. #t also mightn/t have procurement at all. Production storage location5 here ou will maintain the storage location that is copied throughout the production documents. #f this is a production component this mar*s the location from which the goods issue is posted" or if it/s produced material it annotates a location to which the material receipt is posted. "oods &eceipt Processing %ime in Days5 ou can set up this value that represents needed time in da s for goods to be inspected and placed into appropriate storage location. Schedule margin -ey5 this represents a *e used for determination of the floats re'uired for scheduling an order. #t is defined in customi=ing and is supplied b our M1P controllor or PP administrator. Other fields in this view Special procurement5 used to override the procurement t pe. :atch entry5 indicates when the batch determination should be e$ecuted. Default supply area5 if ou define it this will be a proposed suppl area for the material" it/s mostl used for IA9;A9 t pe of materials. :ac-flush2 determines if bac*flush indicator is to be set in the production order. Storage location for e>ternal procurement5 storage location to be proposed in the purchase re'uisition. Stoc- determination group5

-3 this indicator along with the stoc* determination rule create a *e for the stoc* determination strateg Co<product2 if chec*ed" indicates that this material can also be used as a co-product. :ul- material5 this identifies a bill of materials item as a bul* material. This is important as re'uirements of bul* materials are not relevant for the M1P. Safety stoc-5 'uantit in base :7M to use as a safet stoc*. Minimum safety stoc-5 Safet stoc* in never allowed to drop below this value.

M+P View ,
M1P view 3 contains several valuable fields mostl used b planning functions.

Period indicator5 indicates if material is to be planned,forecast monthl " wee*l " earl " dail etc. This is in most cases set to monthl . Strategy group5 used for grouping the planning strategies" for e$ample" this can be set to Ma*e to 7rder" Ma*e to Stoc* etc. There are a number of options" and

-this must be defined b the production planning management. #n most cases" material t pes and,or material A;B classification influences the decision which strateg group material should be assigned. Consumption mode5 this controls how s stem will consume re'uirements. #n bac*ward mode sales" orders" dependent re'uirements or material reservations consume planned independent re'uirements that lie +efore the re'uirements date while in forward mode the consume planned independent re'uirements that lie after the re'uirements date. 'orward consumption period5 number of da used as a consumption threshold in forward consumption mode. Ban be set from 1 to CCC da s but usuall not longer than several da s. +e are using ) since we are utili=ing bac*ward consumption mode for this material. :ac-ward consumption period5 Same as previous e$cept it is used for bac*ward consumption mode. Mi>ed M&P5 defines if material is available for subassembl planning and gross re'uirements planning.

Other fields in M&P 5 View Planning material5 7nl for use with planning strateg 2planning with planning material6.

M+P - View
This is the onl M1P view that is maintained on Plant , Storage location organi=ational level. #t doesn/t contain as much valuable fields as previous" but there are three hand indicators that can be used to optimi=e processes in some modules.


Selection method5 if ou are using ;7Ms %;ill 7f Materials& for our production" ou could govern with the selection of alternative ;7Ms with this field. @ou can set selection t pe b order 'uantit " production version" e$plosion date. Discontinued indicator5 ou can select the indicator for discontinued part as per re'uirements. S)oc M&P indicator5 this is the most powerful indicator on this view. #t tells us if our storage location %that we used in organi=ational levels screen 3 in this e$ample )))1 3 ?ager )))1& is relevant for M1P. That is highl significant as it can reflect not onl M1P but also ATP %available to promise& 'uantities. (or e$ample" if we use the default value %empt field&" it means that our storage location is ta*en into account in our M1P runs. #t is also ta*en into account in ATP so sales department can see the stoc* on this location available for sales activities. 7n the other hand" if ou choose indicator 1 3 Storage location stoc* e$cluded from M1P" this stoc* will not be ta*en into account for the M1P run" as well as it won/t be available to promise %ATP& to the customer" so it couldn/t be sold. #f ou choose indicator 2 3 Manage storage location separatel " it means that

-8 ou want to manage this locations stoc* separatel from plant stoc* %useful in some rare cases&. The most obvious e$ample for usage of this function is re.ects storage location. +hen our ?B! TF -)H comes out of the production line it can be full functional" or it might have a flaw. #f it is read for sales we will transfer it to our )))1 location and sales department will see that 'uantit available to be sold. ?et/s sa we produced 3))) TF sets. 7ut of that 'uantit there is 1) TF sets with some problems and our 'ualit control department chooses that those cannot be sold" so these are sent to our location )))3 for re.ects. #n M1P - view" we have to maintain the indicator 1 for our re.ects location )))3 as we don/t want sales department to see the stoc* as available. +e onl want the other 2C)) pieces available that are on the )))1 location" for which we maintain empt field for this indicator %include in M1P,ATP&.

Work cheduling View

This view is used b the production to control the scheduling of production and process orders. A production schedule determines how capacit re'uirements are calculated for all the materials during a scheduling run. >ere" ou can also activate batch management if material is to be handled in batches %certain 'uantities of material with slightl different characteristics&. ;atch management can be activated in several other views.


Production schedule profile5 define how the process will flow in PP or PP-P#" some additional controls about automatic goods receipt etc. Bustomi=ed b our PP consultant. !nderdelivery tolerance5 define allowed percentage of 'uantit to be underdelivered. Overdelivery tolerance5 allowed percentage for 'uantit e$ceding for production or process order. (or overdelivering" ou can chec* the unlimited bo$ 3 in that case we are allowing unlimited over deliver . Setup time5 time needed to setup and teardown wor* center resources %lot si=e independent&. Processing time5 processing time for the base 'uantit . :ase *uantity5 used for processing and inhouse production time. #n our case" processing time is the time needed to process -A pieces of our material.

Plant data . torage # View

+arehouse administration team should suppl the data for maintenance of this view. These are mostl storage data valid on the plant level. ?et/s go through all the essential fields for this view.


!nit of issue5 this is the unit in which material is issued from an storage location within the plant %e$cept for the warehouse managed locations which have a setting that overrides this field value&. %emperature conditions5 temperature %and atmospheric& conditions in which the material must be stored. Storage conditions5 storage conditions re'uired b material. Container re*uirements5 t pe" and conditions in the container in which the material is shipped. Ma>$storage period5 ma$imum period of time for which a material can be stored. Minimum remaining shelf life5 minimum remaining time for the material to be allowed to be stored %in case the remaining time is shorter than minimum 3 s stem will den goods receipt&. Period indicator for S)9D5 used as a unit of time for Minimum remaining shell life. #f this field contains !" than minimum remaining shelf life is maintained in da s. #ndicator M is for months etc.

Plant data . torage $ View

These fields are repeating from ;asic view 1 %+eight,Folume section&" and Sales 3 Eeneral %Eeneral Plant parameters section&" we had described them when we covered those views.


Warehouse Management # View

This view is maintainable on Plant , +arehouse number organi=ational level. +arehouse number is the top hierarch level in warehouse management in SAP. @ou can see positions 1 D 2 in the picture below representing Plant and +arehouse 9umber for which we are e$tending the material. #nformation for maintaining this view should be supplied b warehouse management administration team.


Plant5 organi=ational level ,arehouse num+er5 organi=ational level ,M unit5 unit that is used throughout the warehouse management. 0ver document in +M uses this unit of measure" no matter what is the original document :7M. (or e$ample" if ou create deliver for 12 pieces of ?B! TF -)H and we have defined in warehouse management view that +M unit is PA?" in transfer orders %+M document for stoc* management& 1 PA? will be shown instead of 12 PBS as the original document %deliver &item was created. !nit of issue5 it is alread covered in Plant !ata 3 Storage 1 Fiew. Proposed !oM for material5 this indicator determines which unit of measure should be used in warehouse management in con.unction with +M unit. This indicator can be set to use :nit of #ssue %defined here in material master&" 7rder unit %unit in which the original document was created 3 sales order" deliver " reservation etc.&" +M unit of measure" base unit of measure" and some additional conditional possibilities %for e$ample" if no other unit is specified use base unit of measure&. Stoc- removal strategy5 to be used" a stoc* removal strateg suitable for this material has to be defined in customi=ing. (or e$ample" strateg for our material could be5 first tr to remove stoc* from high rac* storage" and if there is no stoc* there tr pic*ing from the bul* storage area. :sed when we have to pic* some 'uantit for customer %deliver & or reservation.


Stoc- placement strategy5 same as above with opposite direction" when we want to place our stoc* from production to our warehouse" we want the s stem to search different storage t pes %areas& for placement in the warehouse. +e want the s stem to search in the right order for this material so we can set up the appropriate strateg . Storage section indicator5 when using indicators for stoc* removal and placement" we might encounter a problem that in the same storage t pe" we could have storage bins that are smaller than usual and our material cannot be placed there. That is where we can use storage section indicator" to instruct the s stem not to place our material in storage bins of certain section %smaller bins&. :ul- storage indicator5 this is used to indicate a special case for using up a bul* storage t pe capacit . M 7ther fields include some special indicators" li*e special movement indicator" two step pic*ing" allowing adding to e$isting stoc* in the storage bin alread containing this material.

%hese settings are very comple> and re*uire more in<depth -nowledge of ,arehouse Management$

Warehouse Management 2 View

This view is maintainable on one more level than the previous view. >ere are located palleti=ation data %'uantities of material and t pes of pallets used& in the first section which isn/t maintained on storage t pe level but li*e previous view on warehouse number level. ?ower section of the screen shows several fields that are storage t pe related settings.


Storage type5 the storage t pe for which we are e$tending,maintaining our material. #n this case" we want our ?B! TF to be stored at shelf storage %we have alread selected this strateg in +M 1 Fiew&. Palleti6ation data5 this is information about how our material is pac*ed onto different storage unit t pes. (or e$ample" our material is pac*ed 12 pieces on 0uro pallet 1m high %defined as 01 in our s stem&. Storage +in5 if we wanted to store our material in a predefined storage bin we would maintain this field. #n this case" we want a s stem to propose a bin for our material ever time we are e$ecuting putawa . Ma>imum +in *uantity5 this is usuall a number that is maintained in palleti=ation data" in our case 12 PBS. :sed in chec* while placing the stoc*" s stem will not allow more than 12 PBS to be stored in one bin. +arehouse Management 2 Fiew in material master Minimum +in *uantity5 this should be maintained onl if replenishment is active for the storage t pe %mostl used in fi$ed bin storage t pes&. #n our case" if storage bin stoc* falls below 1 %no more TFs in the storage bin& s stem would re'uest replenishment to be made" to fill the storage bin with another pallet. This is a ver comple$ topic and re'uires more in-depth *nowledge of warehouse management s stem in SAP. Pic-ing area5 li*e storage sections are grouping bins together in putawa process" pic*ing areas group storage bins for pic*ing process. Control *uantity5 for certain strategies %min,ma$ 'uantit & utili=ed on storage t pe level" this is the 'uantit that signals the s stem that if the re'uested 'uantit

43 for pic*ing is higher than defined in this field" s stem should s*ip this storage t pe and move on to the ne$t in our stoc* removal strateg . This is used in cases where we want to pic* small 'uantities of material from one t pe of storage" and large 'uantities from another storage t pe. &eplenishment *uantity5 when s stem determines that replenishment of our bin is needed it will replenish with 'uantit in this field. +e have defined that we want replenishment when stoc* falls to =ero" and we want it to be replenished b entire pallet 3 12 pieces.

/uality management View

This view is used for material settings for 'ualit inspection processes in Gualit Management module. Administrators of that module are responsible for providing the information for maintenance of this view.

Inspection setup5 this indicates if at least one inspection t pe has been set up. #n the setup itself" ou can choose the inspection t pe ou want to use for this material. Setup t pes have to be predefined b ou GM consultant. Step A5 Blic* the #nspection setup buttonK Step :5 choose the appropriate inspection t pe predefined b GM teamK Step C5 confirm changes.

Bhoosing the inspection t pe on a subscreen of Gualit Management view

Post to inspection stoc-5 specif if the material is sub.ect to 'ualit inspection. #f this is chec*ed" an inspection lot will be created for the inspection t pe assigned. Material authori6ation group5 ou can define authori=ations for GM users based on the authori=ation group" for e$ample if ou want some materials inspected b some users" and other materials b other users. Inspection interval 4in days02 interval between recurring inspections for the same batch. #M in Procurement active5 activating Gualit management for material in the procurement process. #M control -ey5 used to define conditions in 'ualit inspection in procurement. @ou can set a deliver bloc*" invoice bloc* and other t pes of bloc*s until material inspection is done. Possible entries are predefined in customi=ing b the consultant. Certificate type2 'ualit certificate t pe %possible entries are predefined in customi=ing b GM consultant&. %arget #M system5 1e'uired GM s stem b vendor. +e specif if vendor needs to have #S7 C))1 or other t pes of GM s stems implemented and certified.


Accounting / View
!ata entered in this view determines the wa that accounting will be processed for this material. !ata is supplied b our (#,B7 team" and bac*ground customi=ing b our (#,B7 consultant.

Valuation class5 depending on our s stem settings" but valuation class is in most times influenced b material t pe" so ou will have a valuation class for finished goods" and another for trading goods. #n our case valuation class" <C2) is SAP default class for finished goods. (or >A?;" this class is <C)) b default" and for 17> we can use 3))). Valuation Class for sales order stoc-5 ou can assign a valuation class for sales order stoc* to override the default valuation class defined in field 1 3 Faluation Blass. 9ot recommended. Price control5 this indicated which t pe of internal price will be used for the material. #t can be set to S 3 standard cost" or F moving average price %variable price&. #n most cases" S is used for finished goods while F is used for trading goods" but the settings depend on our S!,(#,B7 teams preference. Moving price5 ou can populate this field if price control is set to F.


Standard price5 ou can populate this field if price control is set to S. @our controlling team can use transactions for generating these prices based on the information contained in production orders" purchase orders" so that these prices don/t have to be entered manuall for each material. +e can also maintain Valuation Category field" which determines whether stoc*s of the material are valuated together or separatel .

0ccounting $ View
This view isn/t used ver often in production environment" the most common setting for this view is leaving all the fields empt . ;asicall " it consists of special ta$ information in accounting which is hardl ever relevant. !etermination of the lowest value of the material" material devaluation through it/s status %moving" slow moving& etc. #f this view is being used b our financial accounting department" the department should provide ou the information for maintaining this view.

Costing # View
Bosting view is used to determine the product cost. #t can ta*e various inputs" but for production the most important is the costing lot si=e. That means that an optimal lot si=e used for product cost estimate can be set here. Product can be produced in a 1)) pieces lot or in a 3<)) pieces lotK therefore the costing for those two situations are different. That is because there are some fi$ed e$penses %time for setting up appropriate tool" mechanics wor*. #n the first case" our product cost might be as high as 128 :S!,pcs while in the other case" it could be 111 :S!" which is remar*abl different" so production has to tr to plan their activities and stoc* levels of all materials in a plant in a wa that our production lot si=e doesn/t var too much and be as close to our optimal lot as possible.


Do 1ot Cost5 no costing is estimated. 9either material cost nor sales order cost is created" .ust as procurement alternatives can/t be created as well. #f ou want costing at all" leave the field blan*. ,ith *uantity structure5 indicates if we want to use 'uantit structure data for cost estimating %lot si=e and other 'uantit information&. Material origin5 this indicates if material number should be assigned to cost element item in B7 module. Variance -ey5 determines how cost variance is calculated. Costing lot si6e5 it is onl useful if chec* bo$ 2+ith Gt structure6 is chec*ed. #t determines the lot 'uantit used for a cost estimate calculation.

Costing $ View
#n figure 1 3 Faluation data" we can see fields alread covered in previous views %Accounting 1 view&. 7ther than that there are fields to maintain planned prices %Standard cost estimate will be copied to Planned price if standard cost estimate is chec*ed and created&.


Purchasing View
#n purchasing view" we can find several fields alread present at previousl covered views li*e (reight group" plant special material status etc. +e also have few new fields available onl from Purchasing view.


Purchasing group5 ou can define various purchasing groups li*e raw material purchasing" trading goods purchasing" service purchasing etc. This value will be the default value for all the items entered in purchasing documents. Order unit5 default unit used for ordering this material. +e have used pallet as default so if we enter a 'uantit of 1) it means we are re'uesting 1) pallets of the material %12) pieces in this case&. @ou can see the Purchasing values section in this view. The onl field ou have to populate is the Purchasing value -ey which is maintained in customi=ing consisting of all the values ou can see in this section %underdeliver tolerance" overdeliver tolerance&. +hen ou define the *e in customi=ing" the values from the *e are transferred to all the fields in this section.

'oreign (rade 1mport View

0$actl the same view as a foreign trade e$port view.


Purchase order te*t View

0$actl the same view as a sales order te$t view.


0dditional data
;esides material master views" we have another level of maintenance in MM)1 transaction. #t is also with no reference to organi=ational levels. (rom an Fiew in material master ou can choose button Additional data5

;utton for switching to additional data maintenance 7nce selected" ou can see that we can return to MM Fiews b clic*ing on Main !ata button.


Product descriptions for various languages in additional data (irst tab in additional data is about material description. @ou saw that we have alread maintained material description on ;asic Fiew 1" but we have onl defined a description for the default language %logon language for user in this session&. #n additional data" we can define descriptions for an other language needed. (or e$ample" # have created description for (rench language. #n our case" material description is the same for both languages %in other cases ou might need to translate the description&. This is important because if ou have a customer from (rance and the are accepting onl french product name" ou have to define it here" and set communication language for that customer to (rench %this is done in S! module and is a point where integration between MM and S! is utili=ed&. Maintenance of alternative units of measure is utili=ed in the second tab. @ou can see that there is a record for 1 PBS" which e'uals to 1 PBS" and this is a record for our base :7M. The other one is 1 PA? e'uals 12 PBS 3 it means that our compan pac*ages ?!B TF sets -)H in the amount of 12 pieces on a pallet. @ou can add as man alternative :7Ms as ou li*e" as well as delete them b using the !elete ?ine button. >ere" ou can also maintain all 0A9 codes for all units of measure. #n S! module" ou can create sales orders b an unit of measure maintained in material master. So practicall it/s the same creating sales order for 12 pieces" or 1 pallet.



Overview Of #uotations$ How %o Create &'#

Guotations are re'uests for vendors to provide us information about their best prices" terms and conditions" schedule of deliveries and other information in order to select the best source for our procurement needs. $elow you can see the process flow for %uotations in purchasing in S& MM module.


Guotation process is started with creation of a re'uest for 'uotation" and afterwards maintenance of the 'uotations to input all the information received from possible vendors. Then we want to compare the offers and select the best suitable one%s& re.ecting the others.#n SAP" there are several transaction used in the process.

2ow to create +e3uest for 3uotation

(irst we need to create a re'uest for 'uotation. 1(Gs can be created b transaction M97/. +e can create a new 1(G from scratch" or create one referencing to an e$isting purchase re'uisition or outline agreement. #f ou want to create the 1(G using a reference document" ou will .ust need to clic* the appropriate button and enter the referencing document number. #n this case" we are creating a new 1(G with no reference document. Step /0 #n transaction M0-1 " enter5 1. 2. 3. -. 4. &'# type5 'uotation t pe %A 3 standard 1(G&. )anguage -ey5 language to be used in a 'uotation %09 3 0nglish&. &'# data5 Toda s date. #uotation deadline5 this date has to be before deliver date. &'# num+er5 enter a number ou want to assign to 'uotation %if ou want it to be assigned internall leave this field blan*&. 8. Purch$ organi6ation2 purchase organi=ation %e.g. )))1&. <. Purchasing group5 purchasing group %e.g. ))1&. A. Item category5 default is blan* 3 standard item. C. Delivery date5 re'uested deliver date. 1). Plant. 11. Storage location5 S?oc for goods receipt. 12. &e*uirement trac-ing num+er.


Press 91%9&" and ou will be located on header data screen. Step 30 1. Validity range5 enter the range for the validit period.7ther information such as collective num+er %collective management of multiple documents&" deadline for bid submission" closing a date for applications and +inding period for 'uotation. 2. Collective num+er Coll$no is a ver important field as ou can later compare 'uotations based on this information" or find 1(Gs using this number. 3. @ou can enter the warrant date if applicable. -. %arget value5 threshold value for warning a message during the creation of the contract release order.


@ou should inspect the toolbar to see which screens can be called b using the icons. Step 50 Among the icons in the toolbar ou will find can5 2Fendor Address6 button" where ou

1. Bhoose the appropriate vendor. #f it/s one time vendor" after entering vendor number ou need to specif vendor address.


Step 70 #n the toolbar" ou will also find the overview button which calls the item overview screen.

#tem overview screen is the place where ou can enter item information" materials" 'uantitiesN 1. Material num+er5 insert materials to be procured. 2. &'# *uantity5 enter needed 'uantit and unit of measure.@ou can inspect more screens from toolbar and save the document.


@ou can alwa s go bac* to edit the re'uest for 'uotation using the t-code M973 or displa it/s information using M975. 1epeat the above process to send the 1(G to all of the vendors from which ou are re'uesting a 'uotation. #f ou have maintained a collective number in our 'uotations %we have used 1C)123&" ou can review all of the 'uotations for the collective number b using transaction code M971.

How %o Select Or &e(ect A #uotation

Step /0 1. Select the 'uotation that/s favourable % ou want to process it further as it/s having the best conditions&. 2. Bhoose the 0dit Guotation button on the toolbar.


Step 30 9ow ou are in the M97; transaction. >ere ou can choose the item and go to the item details screen. 1. Select the item. 2. Blic* on the item details icon.

Step 50 1. 0nter %or choose from the list of available values& : or C for the Info!pdate field in Guotation data section to update the info record. #n this field" ou can also find re.ection indicator used to re.ect the 'uotation item. +e will use it to re.ect the other offer. Info!pdate field is used to update the info record in several wa s5

O O %blan*& The info record is not updated.


OAO #f an info record e$ists at plant level" it is updated. 7therwise an info record at purchasing organi=ation level is updated. O:O #f plant conditions are allowed for the plant" an info record at plant level is updated. OCO #f plant conditions are not necessar for the plant" an info record at purchasing organi=ation level is updated.

2. Save the data.

Rejecting quotations
@ou should head bac* to the report screen. 7nce there" ou can select the other 'uotation %we want it to be re.ected&" and repeat the process until ou are on the item details screen. @ou will not enter the information into #nfo:pdate field but will tic* the 21e.. #nd.6 chec* bo$. ; this" ou are re.ecting the 'uotation item.

<1 Step /0 1. &e(ection indicator$

@ou will be prompted to print the re.ection message for the items being re.ected so ou could inform the vendor of the status of his offer.@ou can repeat the process for all the vendors and items that are re.ected. This now leaves us with one open 'uotation for the item.

How %o Compare Price 'or Different #uotations

After our 'uotations are entered" ou can compare them to select the best available offer at this moment. +e can compare the 'uotations in transaction code M97@.

<2 +e can select which 'uotations will be compared b using the collective number we addressed before to be an important field that is maintained on 1(G %or directl on the 'uotation&. #f we forget to enter the collective number" we will have to suppl all the 'uotation numbers in the selection field 2Guotation6. Step /0 #n transaction M97@? 0nter 1. Purchasing organi6ation %e.g. )))1&. 2. Collective &'# %we have used 1C)123&. 3. 0$ecute the transaction.

The comparison list loo*s li*e this5


(rom the list we can see that Fendor1 have proposed a better price. +hat we need to do is chec* the effective price %with discounts" freight cost and other conditions&.+e will go bac* to the selection screen and we will tic* three chec* bo$es. Step 30 1. Bhec* all the bo$es in the Price Balculations section. 2. 0$ecute the transaction.


7ur results have changed significantl . 9ow Fendor2 has the better price" and price of Fendor1 has gone up 248 0:1 because of freight cost. 9ow we can conclude that our Fendor2 has the best price" and we can proceed with the process.

<4 #f ou select Mean value 'uotation and Minimum value 'uotation on the previous screen" ou will get the result as the are shown below on the screen. 1. Average price on all the 'uotations. 2. Minimum price for all the 'uotations.

After comparing the prices,conditions" ou can decide which offers to accept and which ones to re.ect.

How %o Define Condition %ypes

!efining of condition t pes can be done in few simple steps. Step /0 #n the #ME" clic* on the define condition t pes option.

Step 30 Bhoose !efine Bondition T pe option.


Step 50 @ou can find all of the e$isting entries for condition t pes. 1. Blic* on the desired condition ou would li*e to change. 2. Blic* this icon to choose the selected condition and enter the change mode. 3. #f ou want to create a new entr clic* on 9ew entries. #n this case" ou don/t have to select an e$isting entries. -. #f ou want to create a new condition t pe b cop ing an e$isting condition t pe %it will inherit it/s setting which ou can change 3 .ust li*e cop ing a condition table in the previous topic&" ou can choose this icon 3 cop condition t pe. @ou have several more actions at our disposal5 deletion" selecting all condition t pes" deselecting all condition t pes.


#f ou select multiple condition t pes" ou can edit them all b navigating through them in the following screen %arrow left and right or (< and (A&. This screen has a lot of settings for a condition t pe" let/s review the most important. Step 70 (irst section of the screen contains condition t pe P;))" description" and access se'uence used for condition determination. A0 Control data / section contains the following5 1. Condition class %e.g. prices" discounts" ta$es& 2. Calculation type %e.g. 'uantit " percentage" fi$ed amount" formula& 3. Condition category %e.g. basic price" input ta$&

<A -. &ounding rule %e.g. commercial" round up" round down& 4. Plus=minus %indicates if a condition can be positive" negative or both& :0 "roup condition section5 1. "roup condition %indicates if a condition calculates its value b more than one item in the document& 2. &oundDiffComp %rounding difference comparison& 3. "roup condition routine %routine that calculates the value& C0 Changes which can +e made section2 1. 2. 3. -. 4. 8. <. Manual entries %e.g. no limitations" not possible" manual entr has priorit & Header condition %indicates if a condition can be used at header level& Item condition %indicates if a condition can be used at item level& Delete %indicates if a condition can be deleted& Amount=percent %can amount,percentage be changed& Value %can value be changed& #ty$ relation %can conversion factor between :oMs be changed during processing& A. Calculat$ %ype %can calculation t pe be changed during processing&


Step 80 The other section on the lower end of the same screen are5 D0 Master data section2 1. 2. 3. -. Valid to %default date to use& Pricing Proc$ %pricing procedure to be used for this condition t pe& Pricing Proc$ %pricing procedure to be used for this condition t pe& Delete fr$ D: %deletion procedure for this condition t pe&

90 Scales section2 1. Scale +asis %e.g. 'uantit scale" value scale& 2. Chec- value %default blan*& 3. Scale type %controls the validit of the value,'uantit & F) Control data 2 section: 1. Currency Conv$ %indicates if currenc conversion is allowed& 2. Accruals %if ou chec* this bo$ ou indicate that it is a statistical condition&

A) 3. Promotion condition %is this condition relevant onl for promotions& -. #uantity conversion %controls how 'uantit conversion will be processed& 4. 9>clusion %condition e$clusion indicator 3 e.g. gross price" ta$ code" deliver cost& 8. &el$Acc$Assig %determines if the condition t pe is relevant for account assignment&

+hen ou are done with creating" changing or cop ing of the condition t pe" ou can save our changes. ---------------------

How %o Create #uotations

:sing transaction code M97;" we can create a 'uotation based on a re'uest for 'uotation.

A1 Step /0 1. %ransaction code for 'uotation maintenance 3 M97;. 2. &'#5 re'uest for 'uotation that we are using as a reference document. 3. Press 91%9&.

Step 30 1. 2. 3. -. 1(G 'uantit !eliver date 9et price per unit of measure Storage ?ocation

4. #tem details ou will be presented the following screen.@ou ma change details as per our re'uirements


8. Additional data ou can access some additional information on item level.


<. #f ou want to change general header data clic* on the 2>at6 icon.


A. #f ou choose #tem Bonditions icon,button ou can maintain pricing conditions for the currentl selected item. >ere" ou can enter conditions li*e surcharge" freight cost" discount etc.


#f ou are done" ou can save the data. #f ou need to change the 'uotation" ou can do it b using the same t-code %M97;&" or ou can displa it/s data b using M97A.

@ou can repeat the process to create 'uotations for all of the 1(Gs. #f certain vendor didn/t answer our re'uest for 'uotation" then ou will not create a 'uotation for the vendor.

How %o Create A Source )ist

@ou can create a sourcelist in M9.8 transaction. A source list is a list of possible sources for a material. #f a source list re'uirement e$ists for the material" ou must create a source list to proceed with the ordering. 1. 0$ecute t-code M9.8.

A8 2. 0nter material" or material list,range. 3. 0nter plant. -. :ntic* the test run chec* bo$ to perform the transaction instead of using the test mode. 4. 0$ecute the transaction.

7n the results screen select the appropriate line item and clic* on the save button. @ou have created a source list.


How %o Define Access Se*uence And Condition %a+le

Define 0ccess e3uence
To define and maintain access se'uences" ou need to follow a few simple steps. Step /0 Eo to SP17 P Materials management P PurchasingP BonditionsP !efine price determination processP !efine access se'uences. As shown below " ou will find a dialog structure of Access se*uences" Accesses and 'ields. 1. Bhoose the Access se'uence ou want to maintain %P:./ gross price&. 2. !ouble clic* the Accesses folder in the dialog structure.

Step 30

AA #n the ne$t step ou define access methods for the access se'uence. @ou can see that several access methods are present for one se'uence. 0ver one of them is e$clusive. #t means that if a record is found in first access %Bontract item&" meaning that if the s stem finds a condition available from the Bontract item" it will not search further" and that value will be used. #f not" s stem will follow the other accesses in order to find appropriate entr . @ou can also set a re'uirement for an access method to be used. (or e$ample" there is a re'uirement 34 assigned to access /." which uses condition table /; 3 Material #nfo 1ecord %Plant-Specific&.

A re'uirement for access number 1) is 34 3 Plant info record. #f there is no plant info record for the combination of the values in table 1<" access 1) will not be used at all.

Step 50

AC 1. Select the access ou want to modif . 2. Bhoose the lowest level folder in dialog structure 3 'ields.

Step 70 1. @ou can see we are located on the details screen for access se'uence P;)1" access 2) and table 1A. 2. The *e fields of a condition table used in the condition access are showed here. Bondition table consists of condition fields which have certain attributes assigned to them. +hen the s stem tries to access a condition record it uses these attributes.


Special value source 3 this field contains a value to be used as default while accessing %e.g. using a fi$ed info record categor for the access se'uence& Init 3 if this bo$ is chec*ed s stem will allow initial value for this field while accessing the condition table. #f not s stem will not process the condition table loo*up. Atyp 3 processing t pe in access. @ou can specif if the field is relevant for condition access if it is part of a free or fi$ed *e t pe. !efault is left blan* %fi$ed *e t pe&. Priority 3 priorit of a field %characteristic&" it can be set from )1 to CC. Most of the time this field is left blan*.

Define condition tables

9ow" when we *now what is a condition table" what it is used for" we can see where a condition table can be defined" and what option we have while creating it. As ou have seen in the previous topic" we have used table 1A 3 Material #nfo 1ecord in our e$ample. ?et/s see where and how it is defined. Step /0 1. 0$ecute the transaction code V=.8 and on the initial screen enter our table number 3 /A. 2. #n the section 2" ou can see our table definition" table number" description" and two options that can be selected. (irst means use of the validit period %alwa s recommended& and the other is a chec* for release status of the record. #f chec*ed" onl released info records will be ta*en into account while searching for the condition. 3. >ere is the list of fields ou have alread seen in the !efine access se'uence topic. @ou can see how is the table defined for later use in customi=ing the access se'uence.


V=.8 transaction is used for displa ing a condition table. V=.7 transaction is used for changing a condition table. V=.5 transaction is used for creating a condition table. 1ow you can define a new condition ta+le if it is re*uired" in order to use it in the access se'uence definition. Most of the times new access tables aren/t re'uired since a vast number of predefined tables. Step /0 1. 0nter t-code M,)3 and e$ecute it. 2. Bhoose our new table number %must be unused" e.g. A1A&. 3. #f ou want to cop an e$isting table into our new table" ou can select the source table here. This is useful if our table is similar to another e$isting table" and needs onl a simple change to fulfill the re'uirements.


Step 30 7n the ne$t screen" ou can do all of the settings for a condition table" and generate it. 1. Blic* this button if ou want to edit the description. 2. Bhoose if our table should chec* validit periods and release statuses. 3. ?ist of current fields. @ou can select an field ou want to remove %b single clic*ing it& and choose the remove icon %?ist icon with a red minus sign&. -. @ou can add fields from field catalog b double clic*ing them. 4. @ou need to generate the table in order for it to be used b pricing functions.

C3 @ou can also use right clic* to delete or add a field to our table" as well as to navigate the (ield catalog on the right side of the screen. 9ot all of the fields can be shown in a single page of field catalog. After successful creation" ou will be prompted to create a change re'uest and afterwards" ou will be presented a log screen li*e ou can see on the following screen.

@ou have successfull generated a condition table let/s see if we can see it in the access se'uence maintenance screens.

#t/s there" so now we can create an access using this table. +e will not cover this in detail as it is e$tremel straight forward process. 7n the accesses node of our access se'uence" choose 9ew entries button. @ou can create access li*e in the below screen for testing purposes.

(ields should also be assigned to our access P;)1 3 C8 in order for it to wor* properl


How %o Create A Purchase Info &ecord

Purchase 1nfo +ecord
Purchase info records are information about terms for purchasing a specific material from a vendor. The are maintained at vendor,material combination and can contain data for pricing and conditions" overdelivering and underdelivering limits" planned deliver date" availabilit period.

Procurement types in info record /$ Standard

A standard info record contains information for standard purchase orders. The info records can be created for materials and services with and without master records.

3$ Su+contracting
A subcontractor info record contains ordering information for subcontract orders. (or e$ample" if ou subcontract the assembl of a component" the subcontractor info record would include the vendor/s %subcontractor/s& price for assembling the component.

5$ Pipeline
A pipeline info record contains information on a vendors commodit that is supplied through a pipeline or pipes %for e$ample" oil or water& or b similar means %for e$ample" electricit through the mains&. The info record contains the vendor/s price for the use of such commodities b the bu er %2pipeline withdrawals6&. @ou can *eep withdrawal,usage prices for different validit periods.

7$ Consignment
A consignment info record contains information on a material that vendors *eep available at their own cost on the orderers premises. The info record contains the vendor/s price for withdrawals b the orderer from consignment stoc*. As in the case of the pipeline info record" ou can *eep prices for different validit periods.

2ow to create a Purchase 1nfo +ecord

Purchase info records can be created for ever t pe of procurement" and are processed using the transaction code M9//.

C4 Step /0 1. 0nter transaction M011 in command prompt. 2. Ie for creating the info record is Fendor,Material combination. @ou can enter purchasing organi=ation and,or Plant. 3. @ou have to choose an info categor for desired procurement t pe. Press 91%9&

to proceed to the ne$t screen. Step 30 >ere ou give information on Info &ecord "eneral Data$This information is maintained for all procurement t pes %maintained onl once for all5 Standard" Subcontracting" Pipeline" Bonsignment&" and there are the most relevant fields5 1. &eminder /? 3? 55 These three fields indicate remainders to be issued to vendor. 9egative value indicates that the vendor should be prior to 'uotation or deliver date. 2. Vendor mat$ 1o5 Material number that is used b the vendor for this material. 3. Vendor material group5 material group used b the vendor for this material. -. Sales person5 9ame od the contact person. 4. %elephone5 phone number of contact person or vendor 8. &eturn agreement5 this can indicate if goods return is available" and if there are refunds available. <. Order unit5 unit in which this material is ordered b vendor.

C8 A. Certificate category5 t pe of certificate issued b the vendor that applies to this material. C. Country of origin5 countr in which this material is produced.

After entering all the desired data" we can clic* the button Purch. 7rg. !ata 1 to be transferred to the screen for entering Purchase 7rgani=ation dependent information.

Step 50

C< This view is maintained separatel for ever procurement t pe. +e have chosen Standard procurement t pe" and we can populate several relevant fields here. 1. Planned delivery time5 default time in da s in which the material deliver is planned. 2. Purchasing group5 purchasing group mentioned in material master lessons. 3. Standard *uantity5 standard purchase 'uantit for material. -. Minimum *uantity5 do not allow procurement of a 'uantit less than stated here. 4. Ma>imum *uantity5 we do not want to purchase more than this 'uantit at a time. 8. 1et price5 net price of material per procurement unit. <. Incoterms5 trading and deliver terms.

Step 70

CA Press the Bonditions button.

The ne$t screen is used for maintaining pricing conditions and as ou can see" price that was entered on the previous screen was transferred to this screen. 1. Condition type5 ou can enter a condition t pe in this field. 2. Amount per unit5 in these - fields ou can enter an amount and amount unit %for e$ample 2.A)) 0:1& and 'uantit for which this amount is valid %1 PA?&. 3. Valid from$ -. Valid to$ (ields 3 and - represent a validit period for condition%s&. #t means that this condition is valid from 1).)4.2)13. until 31.12.CCCC. %infinite future validit &.

Step 80

CC Standard te$ts for this material,vendor combination can be defined in Te$ts view of the purchase info record. 1. @ou can enter the info record note in these five lines" and it will be active onl if a chec* bo$ for info record note is tic*ed. 2. Same logic as previous e$cept that this is a standard item te$t that will be copied to purchase order item.

7nce ou have entered all the desired information about our material,vendor combination ou can save the transaction data and will be presented with information about the purchase info record number assigned to our info record. +e can use it for future reference to edit or displa our record.

9ow we can set up the other three procurement t pe info records" which ou need to maintain onl in the Purchase 7rgani=ation data 1 screen.


How to Change a Purchase Info &ecord

+e said that the transaction used to create info record is code M9//. +hen we need to change the info record we can use codeM9/3 t-code" and for displa onl we should use code M9/5" .ust as SAP standards are. Step /0 1. Transaction code to change the info record. 2. Vendor? material? purchase organi6ation? plant? info record num+er data5 we use it to identif what e$actl we need to change in our session. #f we fill in all the fields" we will be able to change all the e$isting views and data in those views. (or e$ample" if we don/t specif Purchase 7rgani=ation we will not be able to edit the Purchase organi=ation !ata 1 Fiew. 3. Info category %purchasing t pe&. +e are changing the data for this info categor %onl for views that are info categor dependent&.

Step 30 >it 91%9& button. @ou will be presented the following screen.


Ma*e the re'uired changes and clic* the

save button .

1O%92 #n codeM013" can be used to view a record. There is no possibilit to edit or save a record.



Introduction %o Purchasing And Purhase &e*uisition

Purchasing is a component of SAP MM module and its process can be roughl depicted in below diagram.

1)3 M1P %material resource planning& creates procurement proposal and later gets converted into Purchase 1e'uisition. 9e$t step is assigning source to Purchase 1e'uisition" and release of Purchase 1e'uisition. The P1 gets converted to Purchase 7rder and upon goods receipt an invoice receipt can be done to complete the purchasing process. Additionall pa ment is processed %in (# module&. Procurement doesn/t have to start b the M1P" it can be initiated b consumption based planning or b direct creation of P1 or P7. MR is a system function to determine the material re%uirements on both the material and $oM level. & $oM ($ill of Materials! is a list of components and subcomponents a single material is consisting of. 7ne of the mere basic documents in Purchasing in SAP is a purchase re'uisition.

Purchase re3uisition
Purchase re'uisitions can be created automaticall b s stem or manuall . The can be converted in purchase orders but onl upon release %approval of purchase re'uisition&. +e will cover several topic in this leson that can help understand and create the purchase re'uisition. 9umber ranges in purchase re'uisitions are re'uired .ust as in other document" for the purpose of assigning the document number to new created documents. ?ater" these number ranges are being assigned to different document t pes we can define to be used in purchase re'uisition processing. +e will also cover re'uirement trac*ing number which is basicall a number,letter combo which can be uni'uel assigned to multiple documents in order to trac* certain important re'uirements. @ou will se how the source determination wor*s and wh it/s useful" as well as how this source can be assigned to our purchasing document. (inall " ou will find out how to process the purchase re'uisition" from its creation until converting it to a purchase order.

1um+er ranges for Purchase &e*uisition

Assigning of number ranges for purchase re'uisition wor*s on document t pe. Several different number ranges can be created and afterwards assigned to a specific purchase re'uisition t pe.

1)This is done in customi=ing. 1e'uisition document t pes can have two number ranges assigned. 7ne internal and one e$ternal range are assigned to each document t pe. #nternal number ranges are being automaticall incremented b the s stem" and e$ternal are assigned manuall . Screen below represents a list of number ranges for purchase re'uisition. (rom number is the first number in the range" To number is the last available number adn the current number is the last assigned number to a document. #n addition" there is a chec* bo$ indicating if this is an e$ternal number range. (or e$ample" an internal number range can be defined as a range from 2))))))) to 3)))))))" in this case documents of the document t pe that is assigned this interval will be numerated starting from 2))))))1 and will be incremented b 1 for each new document created. The last number available for this interval will be 3)))))))" and if our documents fill up the entire number range it has to be e$tended. #t will rarel happen as it would mean that ou would have 1) million purchase re'uisition documents.

Document type definition

!ocument t pe definition is an action of defining different document t pes for a purchase re'uisition. #t is useful in grouping purchase re'uisitions and specif ing its use in more detail. (or e$ample" we can have standard P1s" subcontracting and stoc* transfer. 0ver document t pe suits a special need and is configured to be used in that wa . #n document t pe definition" ou can define a number of options. 9umber intervals %internal and e$ternal&" item interval" field selection *e " control indicator" overall release indicator %defines if all the items in P1 are released simultaneousl or individuall &.

1)4 Standard Purchase 1e'uisition document t pe in SAP is defined in all installations as 9;.

+e3uirement tracking number

This number is used for trac*ing specific re'uirements. #t can be entered during purchase re'uisition creation and is copied into purchase order document. #t is maintained on item level and items can be selected b this number in several reports li*e M9):.

0$ecute M9): transaction. Blic* the Choose button.

+hen ou clic* Continue" ou will be bac* to the initial selection screen.. @ou also have a variet of select options and should choose the most suitable options to narrow the search.

0nter re'uirement trac*ing number%s&. 0$ecute.


@ou will be presented a list of documents containing the trac*ing number.

ource determination
Source determination assists in finding the most suitable source for a re'uirement" for e$ample" it can suggest which outline agreement" which internal procurement source %plant& or which vendor can be used for ordering specific materials at given time. Source determination ta*e various data as parameters for the actual determination process. These include 7utline agreement" Purchase info record" Plant in our compan " Guota arrangement" Source list. All this is ta*en into account while determining the best possible source for a re'uirement. (irst chec* is done via #uota Arrangement where s stem determines if there is a suitable source with the relevant 'uota arrangement for the material" and if suitable source is found it is selected" and additional search for the source is aborted. #f not" s stem ta*es source list into account and searched for valid sources there. A source list consists of fi$ed and bloc*ed records. 'i>ed records are for fi$ed vendors for specific material valid for a certain period. :loc-ed records cannot be used as a source while the are in this status. (inall s stem loo*s up the outline agreement and info record for credible sources and assigns them the re'uisition. @ou have seen in the previous lesson what is a purchase info record" and outline agreement is a scheduling agreement or contract which is also used in the source determination process as input information.

1)< To use the source determination" ou need to tic* the !etermine Source chec*-bo$ on the pruchase re'uisition initial screen.

0ssignment of source
S stem can perform bac*ground or foreground source assignment. #f the search is done in the foreground mode" and more than one valid source is found" a selection list appears from which user should select the appropriate source. #f onl one suitable source is found" it is assigned automaticall . #f the search is done in the bac*ground" a single source must be determined and to accomplish that the s stem will perform various functions in the loo*up. (or e$ample" outline agreements have priorit over the purchase info record source and in case of conflict an outline agreement source is selected. #f more than one valid source is found in outline agreements" uni'ue valid source will be the one for the regular vendor" and if neither record is for a regular vendor" source will have to be determined manuall . @ou can see how two sources are offered b the s stem" from which we have to choose the better manuall .


How %o Create A Purchase &e*uisition

Purchase re'uisition creation can be done in t-code M98/1 %or the older version M041 3 not recommended& and is a straight forward process. Step /0 1. 2. 3. -. 4. 8. <. A. 0$ecute M98/1 transaction. Purchase re*uisition document type5 9; 3 standard. Source determination5 79 or 7((. Header note. Material5 material number. #uantity and !oM. Storage location5 in which the material is stored. Vendor5 automaticall determined b using source determination 3 field number 5$

C. %rac-ing num+er2 covered in previous topics" a desired value can be entered manuall . 1). Valuation price2 copied from material master data if maintained there" if not must be entered manuall %if this field is not set as optional&.After entering the desired information in the fields" we can save transaction data.


How %o Convert Purchase &e*uistion %o Purchase Order

:pon release purchase re'uisitions can be converted into purchase orders. This can be accomplished in transaction code M93/1 .Process for converting a P1 into P7 is straight forward" and the steps for performing it are as follows5 Step /0 1. 2. 3. -. 9>ecute transaction code M93/1. Choose the appropriate purchase order type5 in our case 9; 3 standard P7. Organi6ational levels5 enter them according to needs. Purchase re*uisition5 enter the purchase re'uisition number released in the previous lesson.

>it 09T01. @ou ma have to hit 09T01 'uite a few times to go through several warning messages.

Step 30 1. PO *uantity5 ou can see that the P7 'uantit is rounded down to 2 PA?. That is because we have entered 3)pcs on P1" and we have set our order unit to be PA? in our info record" so we have to order in pallets" and s stem rounds it down. 2. 1et price5 net price field is being populated from purchase info record.


Save the P7 and ou are finished with converting a purchase re'uisition into the purchase order.

How %o Create A Purchase Order

Purchase orders are used for a number of processes in procurement. The can be used for internal procurement %from one plant to another&" e$ternal procurement of goods %direct consumption or stoc*& and services. #t can also be used for subcontracting" third-part and consignment processes. Purchase order processing is shown in the following diagram. Purchase orders can be created with reference to a purchase re'uisition" 1(G" 'uotation" another purchase order" contract" sales order.

2ow to create a Purchase !rder

Purchase orders are created b using standard transaction M93/1 %or M93/ 3 the old instance of the transaction&. Step /0 1. 0nter transaction code M93/1. 2. 0nter vendor.

111 3. 0nter material number that needs to be procured. -. 0nter the 'uantit and unit of measure %optional 3 s stem uses :oM from purchase info record&. 4. Press 91%9& to confirm the data entered.

Purchase order item is now populated with information from purchase info record and material master? in com+ination with the vendor master data$ %his can +e seen on the ne>t few screens$ !eliver date and net price are populated from information supplied in master data.

#n below screenshot " ;loc*s / and 3 were populated from purchase info record" while 5 was populated from vendor master.


!efault te$ts populated via purchase info record master data. 1. Info record PO te>t 3 te$t populated from info record master. 2. Info record note 3 populated from info record master. 3. Te$t in this field is the same as in our info recod.

Step 30 1. @ou can see that purchase order contains several tabs at header level.7n the 2Status6 tab" ou can find some information about the status of the purchase order. 2. #n this bloc*" ou can find general status %Active& as well as purchase order confirmation %9ot @et Sent&" !eliver status and #nvoice status. 3. This is information about 'uantities and value" ordered 't and value" delivered 't and value" still to deliver 't and value" #nvoiced 't and value" and finall downpa ment information.


7ther tabs contain information about 7rgani=ational !ata" #mport" Additional !ata" Partners" Bommunication" Address" Te$ts" Bonditions" !eliver ,#nvoice information. Step 50 !eliver ,#nvoice tab holds data about pa ment terms and trading terms. @ou can insert pa ment terms here %li*e Q!)8 3 pa ment 3) da s after deliver &" trading terms %in two incoterms fields 3 for e$ample 0R+ +ien&.

Step 70 7rgani=ational data holds the information on the purchasing organi=ation" purchasing group and compan code. @ou could choose another purchaseing group if ou needed to.

Other ta+s

#n Conditions tab" ou can find data about prices and conditions on header level. %e>ts tab is used to maintain header level te$ts. Address tab holds the vendor address data.


#n the Additional Data tab" ou can find Bollective number and FAT registration number of the vendor.

At the item level purchase order contains additional information on items

7n the delivery schedule tab" we can enter the desired deliver schedule and 'uantities that are to be delivered at a certain date.

Materialdata tab contains information about vendor material number" batch" vendor batch" 0A9 code etc. Some of the data is populated from purchase info record. 7n the delivery ta+? ou can set deliver tolerance percentages %over and under deliver &" set deliver status" deliver remainder settings and other information. Invoice tab holds information on invoice related data and a field 2Ta$6 that should be filled if applicable %in our case the ta$ code is V/ for both items&. Conditions tab is used to specif conditions on item level. Delivery address 3 our compan address" it can be changed if we want the material delivered elsewhere.

Confirmation tab holds data specific for the item confirmation control and re.ection indicator.

+hen all the data is double-chec*ed for mista*es and entered accuratel we can save the purchase order.


How %o Create Purchase Order ,ith &eference

Purchase order with reference
Purchase orders can be created with reference to a purchase re'uisition" 1(G" 'uotation" another purchase order" contract" sales order etc. To reference a P7 to a previous document ou can use the appropriate function. @ou can create a P7 referencing a previous document in 2 wa s 1. :sing M04A 2. :sing M0219

+eferencing through M)45

#n our case if we want to create a P7 for a purchase re'uisition" we can use the transaction code M98A. # will demonstrate the process starting from M04A as it calls the M0219 and ou can see that actuall we create a P7 in M0219 an wa . Step /0 1. 2. 3. -. 0nter t-code M98A. Bhoose Fendor and purchasing organi=ation and Select document t pes. 0$ecute.


Step 30 1. Bhoose the line for our vendor. 2. Select process assignment.


Step 50 Ma*e sure that on the ne$t screen the selected order t pe is 1: %or other appropriate t pe which ou wish to use at this moment&. !ate" purchasing group and organi=ation also need to be chec*ed before clic*ing the chec* button$

Step 70 @ou will be redirected to the transaction M93/1 b the s stem where ou will be able to choose the re'uisition ou want to use as a reference document for P7. 1. Bhoose P1 number ou want to use as a reference document. 2. Select the Adopt button.


Step 80 @ou can see that our item has been transferred to new purchase order. @ou can now save it" and it will be assigned a document number.

+eferencing through M)$#6

Breating a P7 directl from M93/1 referencing to an suitable document is the fastest and least complicated wa to do so. #f ou want to s*ip the M04A or an other not needed step" ou can create a P7 using M0219 directl . This is mostl used b the MM users" and the process is as it is described below Step /0 1. 0nter the transaction M93/1.

11C 2. Bhoose the 2!ocument 7verview 796 %if document overview isn/t open alread &.

Step 30 #n the document overview screen" ou can choose which document ou will use for referencing purposes. 1. Bhoose the Selection Fariant button. 2. Bhoose the document t pe for which ou want to reference our P7.

Step 50

12) 7n the selection screen enter our P1 name %or find it b an other data 3 e.g. vendor" material number&. 0$ecute the search.

Step 70 @ou are presented a screen with the documents relevant to our search. 1. Blic* the document number ou want to use as a reference document. 2. Bhoose to Adopt the document.


@ou are done" now ou can save our P7 or ma*e additional changes. %he referencing process is the same for any other reference document type$ Bust follow the steps a+ove e>cept choosing the appropriate document type in Step 3$

How %o Change A Purchase Order

Step /0 (or changing an e$isting purchase order ou can use transaction code M9331 %or M933 3 the old version&.

Immediately after executing transaction code, system will ta'e you to the most recent purchase order you have created, changed or viewed. If you need to change some other purchase order, you can use the option which appears in the menu Purchase order = Other Purchase Order.

122 Step 30 @ou will be presented a screen to enter the document ou want to process.

+e can add another item and save our purchase order.

After saving we will be informed b the s stem that our P7 is saved with changes. 9ote5 !ispla ing of purchase orders can be reached through t-code M9351 %or M935 3 old version&. 0ver thing loo*s and wor*s the same as in change mode e$cept that data isn/t changeable" ou can onl displa it.

&elease Procedures 'or Purchasing Documents

1eleasing a purchasing document means approving it. (or this" our MM consultant can create release procedures to be used. There is a vast number of options that can be used for controlling the release of the documents. #mportant information to *now is that a purchasing document cannot be changed after it is released. That means that onl the final version should be released. :nreleased documents %1(G 3 re'uest for 'uotation" P7 3 purchase order" scheduling agreement"

123 contract& cannot be processed further %convert 1(G to 'uotation" P7 to goods receipt" invoice verification&. Process flow5

+elease strategy
+e can have a lot of different strategies for different situations. (or e$ample" ou can define a release strateg that is dependent on document t pe" ou can define a release strateg based on the purchasing organi=ation" purchasing group" or an other crucial information for a purchasing document. In most of the cases? one of the most used release strategy is +ased on the value of the purchase document$

Defining a +elease trategy

Step /0 ?ets define a release strateg such that will onl re'uest a manual release for purchasing documents with value greater than 1)) 0ur. (or e$ample if we have a P7 of the value of 4) 0ur" it will be autoreleased %will not re'uire a release to be processed further&. A purchase order for more than 1)) 0ur would re'uire a release. (or this" in the bac*ground" there needs to be specified a characteristic. 1. +e can do this in C%.7 transaction. 19%VA)!9 characteristic is defined.

122. #t/s Falue to be more than 1)) 0ur.

Step 30 Assigning fields to a characteristic on the additional data tab. +e are assigning field B0II7-E90T+ to the characteristic" because that field is a purchase document value.

Step 50 There also needs to be specified a class that holds the characteristic. 1. T-code to accomplish that is C).3.

124 2. 3. -. 4. (or this class" we need to set a class name" class t pe" !escription and Status" Falidit period" Same classification.

Step 70 Assigning a characteristic to a class. Afterwards" we can assign 19%VA)!9 to a class called &9)CP!&.


Step 80 (ollowing steps need to be done in customi=ing.

Breate release groups % ou assign them a class 3 in our case 10?SP:1&. Breate release codes %assigning them release groups&. Breate release indicators %e.g. 1-;loc*ed" 2-1eleased&. Breating a release strateg . Assigning a release group and release code to a release strateg . !efining release statuses for the strateg %bloc*ed and released&. Maintaining classification %set a 90TFA?:0 value for which the release strateg will appl 3 we can set this to P1))" it means that all the purchasing documents with value bigger than 1)) 0ur will be sub.ect to this release strateg &. @ou can also perform a release strateg simulation to see if it wor*s correctl %optional&.

Afterwards" our strateg is set and read for live s stem tr out. Step D0 +e can see that our purchase order is created to a value of more than 1)) 0ur. #f we create a P7 for less than 1)) 0ur" it will be autoreleased. 1. These two statuses mean that our P7 is in release %it/s sub.ect to release process indicating that it should be approved before further processing can be possible&. The other indicates the current status 3 :loc-ed means that it isn/t released et. 2. Falue is 2-"))) 0ur" which is more than 1)) 0ur.


9ow we have a purchase order that needs to be released %approved& to be valid for further processing.

+eleasing purchase order

(or the actual release of the purchasing document" we can use t-code M93A. Step /0 1. 2. 3. -. 0$ecute the transaction code. 0nter release code %mandator & and release group %optional&. 7ptions 3 *eep it as default li*e on the below screen. @ou can choose the appropriate scope of the list and purchasing document categor %if we onl want to see the purchase orders available for release we will choose 2'2&. 4. 0$ecute.


Step 30 7n the ne$t screen" we can see the purchase orders selected b our criteria. 1. Bhoose the purchase order ou want to release b clic*ing on it. 2. Blic* on the release button.

Status of the purchase order has changed to released.


Step 50 @ou can see in the M0239 or M0229 transaction that our purchase order has altered statuses. E&elease completedF and 2&eleasedF statuses are now shown in the P7 header data.

Process flow is the same for all of the purchase documents %1(G" P1" 'uotation etc&.

Cancelling a release
Step /0 Purchasing document release has to be reversed in order for alread released document to be changed.

@ou can do that from the same transaction M93A. Bhoose the Cancel release chec* bo$ and e$ecute the transaction.


Step 30 @ou will see the list of purchase documents available for release cancelation. 1. Bhoose the appropriate document. 2. Blic* on the Bancel release button. 3. Save and ou are done.

Cancelling a release isnGt possi+le if your release strategy doesnGt allow the release to +e reversed. This is a setting maintained on the release indicator and release strateg level.

131 @ou can test a release strateg used b the purchasing document b clic*ing the 2&elease Strategy6 button on the above screen. @ou can also simulate the strateg output with Simulate release button.

Service Purchase Order

Service purchase orders are entered for services that are procured internall or e$ternall . These purchase orders are different from standard ones as the don/t re'uire a goods receipt since the have no stoc*. 7ther than that" there are a few small differences in P7 creation. (irst is the document t pe for these orders. #t should be (7 3 (ramewor* 7rder. To procure a service directl for a cost center" we will follow the below procedure. Step /0 Eo to transaction M93/1. 1. 2. 3. -. 4. 8. <. Bhoose document t pe (7 3 (ramewor* 7rder. Bhoose vendor. Bhoose validit start for P7. Bhoose Account Assignment Bategor 3 H and #tem Bategor 3 D. 0nter the description for the service. 0nter the 'uantit and unit of measure. 0nter the price for the service %e.g. C)) 0:1 per 1 A: 3 activit unit&.


Step 30 7n item level" there are few fields ou need to maintain in order to create a valid P7 for service. 7n the 2Services6 tab" enter the information about our service" 'uantit and price.

@ou might be prompted for Account assignment information. Step 50 >ere" ou can enter the E,? account %it will be proposed in most cases&" and cost center for service cost to be assigned. 1. E,? account. 2. Bost Benter.


Step 70 7n the ?imits tab" ou can enter the limit for unplanned services. 0$pected value that services should not e$ceed.

Step 80 9ow choose the !eliver tab and unchec* the Eoods 1eceipt chec* bo$. Services do not have goods receipt as the are not relevant for inventor management %the don/t have stoc*&.


Step D0 Account assignment tab shows the information we were as*ed to enter in pop-up window. #f ou are not as*ed to enter via pop-up ou can enter information here.

Step ;0 +e don/t need storage location for our item as it/s not stoc* relevant.


@ou can save our changes and get the document number.

Bhange and displa mode are accessed through the same transactions as for a standard purchase order" M9331 and M9351.

Service Purchase Order

Service purchase orders are entered for services that are procured internall or e$ternall . These purchase orders are different from standard ones as the don/t re'uire a goods receipt since the have no stoc*. 7ther than that" there are a few small differences in P7 creation. (irst is the document t pe for these orders. #t should be (7 3 (ramewor* 7rder. To procure a service directl for a cost center" we will follow the below procedure. Step /0 Eo to transaction M93/1. 1. 2. 3. -. 4. 8. <. Bhoose document t pe (7 3 (ramewor* 7rder. Bhoose vendor. Bhoose validit start for P7. Bhoose Account Assignment Bategor 3 H and #tem Bategor 3 D. 0nter the description for the service. 0nter the 'uantit and unit of measure. 0nter the price for the service %e.g. C)) 0:1 per 1 A: 3 activit unit&.


Step 30 7n item level" there are few fields ou need to maintain in order to create a valid P7 for service. 7n the 2Services6 tab" enter the information about our service" 'uantit and price.

@ou might be prompted for Account assignment information. Step 50 >ere" ou can enter the E,? account %it will be proposed in most cases&" and cost center for service cost to be assigned. 1. E,? account. 2. Bost Benter.


Step 70 7n the ?imits tab" ou can enter the limit for unplanned services. 0$pected value that services should not e$ceed.

Step 80 9ow choose the !eliver tab and unchec* the Eoods 1eceipt chec* bo$. Services do not have goods receipt as the are not relevant for inventor management %the don/t have stoc*&.


Step D0 Account assignment tab shows the information we were as*ed to enter in pop-up window. #f ou are not as*ed to enter via pop-up ou can enter information here.

Step ;0 +e don/t need storage location for our item as it/s not stoc* relevant.


@ou can save our changes and get the document number.

Bhange and displa mode are accessed through the same transactions as for a standard purchase order" M9331 and M9351.

How %o Post "oods &eceipt

Step /0 @ou can post the goods receipt for a purchase order using transaction code MI"O. (et)s say we want to do a goods receipt for our purchase order *+,,,-./.0. 1. 2. 3. -. Bhoose A./ "oods &eceipt. Bhoose &./ 3 Purchase Order. 0nter our purchase order number. Press 91%9&.


Step 30 @ou can see that items from the purchase order have been transferred to the screen. 1. >ere ou can enter document data" posting date and choose the appropriate printing message t pe. 2. #f ou loo* at the Stoc* T pe for both items" ou can see that the first item is posted to 'ualit inspection" and the second is posted directl to :nrestricted stoc* so it can be used before 'ualit chec*.This is the e$ample of the influence of the material master data on further processing in MM module. This is due to the Purchasing view chec* bo$ 2Post to inspection stoc*6" which is chec*ed for ?B! TF -)H but isn/t chec*ed for ?B! TF 32H.

Step 30 9ow we can chec* if items are 7I" and post the goods receipt %PE1&. 1. These chec* bo$es are used to confirm that items are 7I" otherwise ou won/t be able to do a PE1.

1-1 2. After tic*ing the chec* bo$es chec* if the document is read for posting. #f there are warnings or errors" s stem will show them in a pop-up screen. #n our case" ever thing is read for posting. 3. Post the document.

!ocument is saved and assigned a number.

How %o Cancel "oods &eceipt

After ou have posted the goods receipt in M#E7" ou can chec* stoc* levels in MM:9 transaction code. 1. 0$ecute the transaction. 2. (or the re'uested material ou will be shown stoc* levels for plants" storage locations and stoc* t pes %unrestricted" 'ualit " bloc*ed&. 3. #n the Gualit inspection column" ou can see that our material is posted there 2 PA? Q 2- PBS.+e also have unrestricted stoc* from some of the previous receipts.


?et/s sa that we have made a mista*e" we wanted in this special case" our material to be posted directl to unrestricted stoc*. Therefore" we need to cancel the posting to reverse the process and do it again properl . ,e can use MI"O transaction to cancel a posting$ Step /0 Bhoose A.5 Cancellation" &.3 Material document" enter the material document that has been created after posting the goods receipt from purchase order. 9>ecute.

Step 30 1. Bhec* the indicator that item is 7I. 2. Post.


Step 50 Bhec* in MM:9 if our goods receipt cancellation is in effect. As ou can see" the 'ualit inspection column is empt . #t means that we have successfull reversed,cancelled our goods receipt posting.

#t also means that we can use the purchase order number in MI"O to post the goods receipt again" this time with the correct settings.

How %o Perform Invoice Verification

#nvoice verification is done via MI&O transaction. Step /0 1. 0nter transaction code M#17. 2. Bhoose invoice as a transaction t pe. 3. 0nter the invoice date.

1--. 0nter the purchase order number. 4. >it 91%9&.

Step 30 7n Pa ment tab choose & invoice verification.

@ou can alwa s chec* if the document has an problems. 1. Blic* Messages button.

1-4 2. 1eview the messages and fi$ the problems if there are an . As it is shown on the below screen" # have a warning message that m price is too low" below tolerance limit. #t is onl a warning message" and it will not stop me from further processing.This message appeared as informational because # manuall changed the item 1 price from 2A.))) to 22.)))T 0rr" .ust to show ou the message.

+hen # correct the price bac* to 2A.))) for item 1 m message will disappear. 9ote the amount entered is 3).- Q %2A.))) for #tem 1 J 2.-)) for #tem 2&

+e can simulate the invoice b clic*ing button number Simulate.


Simulation results are shown on the below screen.

Saving is successful.

Overview Of Pricing Procedure

Pricing procedure in MM module is a wa to determine prices in purchasing documents. #t give us functionalit to assign different calculation t pes for different needs. !efining a pricing procedure can be done b creating an access se'uence" and assigning it to condition t pes. Access se'uence tells the s stem where to loo* for the condition values. #t can search multiple condition tables based on our settings. Tables have different priorit " and different *e fields. !etermination of the pricing procedure is practicall assigning the calculation schema to a combination of vendor schema group and purchasing organi=ation schema group. So" ou need to enter the vendor schema group on vendor master" and assign schema group to purchasing organi=ation" in order for the s stem to find the calculation schema to be used in the document.

#n order to setup a pricing procedure in purchasing documents" ou need access to the customi=ing features. #ME path to the available functions5 %ransaction SP&O IJ Materials Management IJ Purchasing IJ Conditions QP

1-< Define Price determ$process

(ollowing functions can be used to maintain the pricing procedure. There are more settings concerning the pricing procedure" but we will cover the most used ones.

&eservation Of Inventory
1eservations are s stem documents that show a re'uirement for a certain amount of good for production" cost center and an other need. 1eservations are important in planning,M1P,ATP as the s stem reserves needed 'uantities before the are posted. #f there weren/t reservations in the s stem" we might encounter a problem that we need to use the goods for production order" but we can not post the goods issue because a sales order has ta*en the goods .ust few minutes ago. +hen we create the reservation" s stem doesn/t allow an other document to reserve the

1-A goods for other purpose. This also depends on the s stem settings for M1P,ATP. @ou might give reservations a privilege to alwa s ta*e the goods off the stoc*" even if it is alread reserved b the sales order or deliver %not 'uite good solution&. ;ut ou can also customi=e the s stem that sales orders don/t chec* the reservations when performing availabilit chec*. @ou can create a reservation for the material for a number of reasons. S stem can also create the reservation if the M1P settings impl that *ind of s stem behavior. This is done either b the s stem automaticall or b using M:3/ transaction code. Step /0 1. 0$ecute the transaction M;21. 2. (ill in the fields as needed.

1eservation can be made for consumption for a cost center %movement t pe 2)1&" production order %movement t pe 281&" stoc* transfer %311&" sales order" pro.ect" networ* etc. Bhoose the appropriate movement t pe according to our needs. Bhoose movement t pe 3./. #f ou entered movement t pe 53/ %from the above screen&" ou surel got the error message. #t means that this movement t pe cannot be used for creating a reservation. #t also means ou aren/t following m steps closel . Please read the te$t above it sa s that we are going to use movement t pe 3./.

1-C Step 30 1. 0nter cost center. 2. (ill in the item data. Material number" 'uantit " source storage location.

Save the document. @ou will get the reservation number ou need to use in the ne$t step.

9ow we have to create a material document for the reservation. +e can do that through M#E7" but this time let/s learn another transaction. +e can use the transaction code M:/A to create a goods issue with reference to material reservation. Step /0 1. 0$ecute the transaction.

14) 2. Bhoose button %o &eservationK

Step 30 1. 0nter reservation number. 2. Bonfirm.


Step 50 1. #f ou need to change an of the fields" 'uantit " storage location etc. do it and save the document.


@ou will get the material document number in the status bar message.

?et/s sa that we want our reservation cancelled. 7f course" it can be done using M#E7 transaction" but let/s find out about another transaction. Step /0 1. 0$ecute the M:S% transaction code.

143 2. 0nter the document number created in the previous step.>it 91%9&.

Step 30 @ou can see that for this purpose s stem uses movement t pe 3.3 3 reversal for cost center. That is because we have defined it as a reversal movement t pe for Mvt.t pe 2)1 in 7MUU transaction. Save the transaction data and our previous document is reversed.

9ow ou can create material document for the same reservation again" or cancel the reservation itself b using t-code M:33. Step /0

141. 0$ecute the transaction. 2. 0nter reservation number.>it 91%9&.

Step 30 Blic* the chec* bo$ to mar* the reservation completed %it means that it isn/t e$pected to be an more goods postings for this reservation&.

@ou have successfull dismissed the reservation from further processing. ------------------------

How %o Issue "oods

Another important process in inventor management is goods issue posting. 1eservations are considered a specific process on their own" but essentiall reservation use a goods issue logic. +hen we created a material document for reservations" we have issued goods from warehouse to the cost center" production order etc. 9ow" we can tal* about other goods issuing processes. The most important of all is for outbound deliver . The process wor*s as follows -

144 1. +e have an inbound deliver for our material 1)4CCCCC incoming from sales department. 2. After the goods are loaded in the truc* we should do a goods issue posting for the deliver . 3. +e are sent the deliver number A..;3D;5 created for out material 1)4CCCCC and we need to process the deliver in inventor management b posting the goods issue. #t is done in sales transaction F?)29 mostl used b the MM users in logistics. !epartments that use this transaction can var depending on the organi=ational structure in the compan . Step /0 1. 7pen V).31 transaction. 2. 0nter the deliver number ou need to process.>it 91%9&.

Step 30 1. 0nter the Plant and Storage ?ocation. 2. 0nter pic*ed 'uantit . #f full 'uantit has been pic*ed and loaded" enter 2) PBS but if for some reason loaded 'uantit is 12 PBS %e.g. truc* alread full& ou will enter 12 in !eliv. Gt field and in the Pic*ed Gt fields. 3. Post Eoods #ssue.


@ou are done #f for some reason ou need to re!erse"cancel #oods issue $or out%ound deli!er&" ou can use the transaction V).@. Step /0 1. 0$ecute transaction V).@. 2. 0nter the appropriate deliver number. 3. Press the e$ecute button.As ou can see" ou can use this function for inbound deliveries too.


Step 30 1. Select the line with the deliver Blic* the 1everse button. Bonfirm if as*ed. #f ou get the message that the goods issue is reversed successfull " ou are done. #f not" there/s a problem in the processing which has to be identified b superuser or consultant. ou want to process.

Other types of processes where posting a goods issue is needed @ou can see the MI"O transaction for reference to more options for posting a goods issue.

14A Bhoose A.; goods issue" and in the ne$t drop-down menu ou will find several options. To give ou a little 2homewor*6" ou can e$plore the options b ourself" here/s .ust a short loo* on them.

&.3 Material Document %post goods issue for a material document& &.A Order %post goods issue for a production order& &/. Other %without the reference document& &./ Purchase Order %PE# for a purchase order& &.@ &eservation %PE# for reservation 3 # have demonstrated this process b using M:/C transaction&


How %o Create "oods &eceipt

To create goods receipt" ou can use MI"O or M:/C transaction. Mostl people use M#E7 as it/s designed to have all the options for all of the movement scenarios. Step /0 1. 2. 3. -. 4. 0$ecute the MI"O transaction. Bhoose A/ "oods receipt process. Bhoose &./ Purchase order. 0nter our purchase order number here. Blic* on e$ecute button.


Step 30 7ur material is transferred to the item overview section. Bhoose posting and document date %recommended t sta as toda li*e it/s default&.

Step 50 1. @ou can choose on the header level 3 Fendor tab to view vendor information. 2. #f ou clic* on the line item number" ou will see several tabs in the bottom of the screen appear" and ou can choose an of those to view some specific information about the item. 3. #f ou choose Material tab" ou will see the general material data.


Step 70 Bhec* the Guantit information in this tab. @ou can do goods receipt for less than the initial value if ou change it. @ou will still see the ordered 'uantit in the bottom of the screen.

Step 80 The ne$t tab contains information about the destination for the goods.

181 1. @ou can see the movement t pe used for receipt process" 2. destination plant and storage location" 3. as well as stoc* t pe upon receipt. +e can see that this material is going to be posted to 'ualit inspection %this indicator is set in material master and has been referenced in earlier topics&" so it will not be available for use until confirmed to be in satisf ing 'ualit . -. There/s also information about goods recipient and unloading point. #f ou need to change the storage location" or override the stoc* posting t pe" ou can do it here..

Step D0 @ou can find purchase order related data in this tab. 1. @ou can change the update t pe for deliver completed indicator %on the purchase order&. #t is set to be automaticall updated upon posting" but ou can change it if our process re'uires a different approach.

2. After review of all of the tabs" and after ou have assured that our data is accurate" ou can flag the items as 7I. 9ow ou can post the document.

:pon posting" ou will see that material document has been generated.


9ow ou can chec* the material document b using transaction code M:.5. 1. 0$ecute the transaction M:.5. 2. 0nter material document and document ear. 3. Press 09T01.

@ou can see some basic information about the document and items. !ouble clic* the item.

7n item details" ou can see some additional item information.


@ou are done with posting the goods receipt. The process is the same for the production order" as well as for the inbound deliver .

How %o &elease An Invoice

An invoice re'uest is bloc*ed for pa ment until its manuall released. @ou can release the invoice b using t-code M&:&. Step /0 1. 0$ecute t-code M1;1. 2. 7n the initial screen enter the compan code and invoice number. 3. Bhec* the release method %release manuall if ou want to process it in the second screen&. This can be done choosing Automaticall %please note the difference with automatic release in M#17 transaction being bloc*ed and automatic release in t-code M1;1 as those are two different things&. -. 7ur document has a manual pa ment bloc*" so we will select that option. 0$ecute.


Step 30 1. Select the invoice ou want to release. 2. Blic* on the flag icon 3 release.

184 @ou can see that now the invoice has Status field filled with green flag 3 it means"it is released to (#.

(inancial department should now be able to see the invoice read for pa ment. --------------------

Overview Of Inventory Management

#nventor management is used to manage the inventor for the goods. #t is based on several *e processes. !efinition of movement t pes" reservations" goods issue and goods receipt. +e have alread done basic goods receipt process in the purchase order topic" referencing it to a P7. There are a number of functions and transactions used in the #nventor management processes" and we will cover the most important in this tutorial.

Mo7ement types
Movement t pes are used as indicators of what is the purpose of the goods movement %e.g. from storage location to a storage location" receipt from purchase order" issue for the deliver " receipt from production&. Movement t pes have its predefined settings in standard SAP s stem" and the can be customi=ed according to our needs. Also" ou could use the same movement t pe for different processes if ou use movement indicators properl . (or e$ample" movement t pe /./ with movement indicator : is used for goods receipt from purchase order. The same movement t pe /./ with movement indicator ' is used for production order goods receipt. @ou can see on the ne$t screen how the movement t pe maintenance screen loo*s. >uge number of options are available to set up the movement t pe properl " and it/s access b the OMBB transaction code. 1. 0$ecute OMBB transaction" and on the initial screen choose Movement type" on the ne$t screen enter the movement t pe range ou wish to edit.@ou will be presented a screen that loo*s li*e the ne$t screen.

188 2. @ou can see a dialog structure on the left. These options are used for setting up our movement t pes according to our needs. 3. +hen ou select an of the options the details screen on the right is updated with settings for that node.

This is not in a scope of this tutorial" as configuring the movement t pe re'uires e$tremel deep *nowledge of the processes in MM module %inventor management component&. @ou .ust need to understand for now what does the movement t pe" and movement indicator represent. (eel free to ta*e a tour around the 7MUU transaction to get a bit more insight on the actual setting that can be made on movement t pe" and movement t pe,movement indicator level. To summari=e the lesson" movement t pes are used for distinction how the goods will be moved in our inventor .

18< (or e$ample"

+e will set up our movement t pe /./ to be used for goods receipt. Movement t pe 5// to be used for stoc* transfer from one storage location to another in one step. Movement t pe D./ for goods issue for outbound deliver ..

Another thing to *now is that ever movement t pe needs to have a reversal movement t pe defined %if we need to cancel 5// we have to define 5/3 as a reversal movement t pe" /./ QP /.3" D./ QP D.3&. Material document Material document is a document in SAP that contains information on processing of goods movements %receipt" issue" transfer&. +hen ou create a material document ou are actuall moving stoc* 'uantit in a certain wa as defined b movement t pe. #f movement t pe 311 is stated in the material document" material will be transferred from one location to another %transfer process&. #f it/s 1)1" material document will not have a source storage location but will have a destination %receipt process&. #f it/s movement t pe 8)1" material document will onl have source storage location but will not have a destination %issue process&.

%oods receipt scenarios

As # said in the previous topic" goods receipt can be done referencing a purchase order" production order" inbound deliver or without reference for other *inds of receipt processes. +e can set up our movement t pes behavior according to a movement indicator. # mentioned in the previous topic that there are several indicators that can be used to specif the referencing document t pe" and create settings for ever one of them in combination with movement t pe.

: 3 purchase order ' 3 production order ) 3 inbound deliver :lan- 3 no reference

Other 3 not that significant for now