Definitions of Enterprises Structure

Term

Client

Company

Company
Code

Definition
A client is an independent organizational unit.
A client is considered synonym for a group.
A client is self-contained technical unit.
General data & tables used for several organization structure are stored at client
level.
Client is positioned in the highest level in Enterprise Structure.
Several company code can be uniquely assigned to a client.
Company is the topmost organizational unit after client which incorporates
individual financial accounting statements of several company codes. A company
can have many company codes. In SAP it is optional to create company.
A Company Code is a legal entity & independent accounting unit.
Balance Sheet & Profit & loss account are created at Company Code level.
Company Code is organizational unit prepared by FI.
Several Company Code can be uniquely assigned to a Client.
Several Company Code under same client can have same chart of accounts.

Plant
Plant is an organizational unit within a company where activities take place. A plant
will produce goods and makes goods available for the company.
Storage
Locations
Purchasing
Organizati
on
Standard
Purchasing
Org

Chart of
Accounts

Storage location is an organizational unit which actually differentiates between

different material stocks in a Plant. Storage location is a place where stock is kept
physically. Plant can be consisting of multiple storage location. All data is stored at
storage location level for a particular storage location.
Purchasing Organization is an organizational unit under company or plant which is
responsible for procurement activities according to requirements. It is responsible
for external Procurement. Purchasing organization can be specific to plant or
company.
Standard purchasing organization is the default purchasing organization. We can
sometimes assign standard purchasing organization to some specific plant if we
want to have default purchasing organization for that plant.
Chart of Account is the list of all G/L account used by one or several Company
Code.COA are of three types:
1.
Operational COA - The operational Chart of accounts contains the G/L accounts
that are used for posting in the company code during the daily activities. Financial
Accounting and Controlling use this Chart of Account. We have to assign
Operational COA to each company code.
2.
Group COA - Contains the G/L that are used by the entire Corporate group.
This allows the company to provide report of the entire corporate group.
3.
Country Specific COA - It contains the G/L needed to meet the Countrys Legal
requirement
T Code OB13 enter group COA for operational COA. After doing this, when you
create GL account in FS00 group account Number will be required field. You have to
enter group account number for all GL account.
T code OB62 enter country COA for the company code and operation COA. When
you create GL account (FS00) in control Tab >>> you can enter alternate account
number, which is GL account number of country COA..
Note: Operating COA and country COA have one to one relation i.e. one GL account
number of country COA can assign to only operating GL account number.

Example

Tata Group

1. Tata Motors
2. Tata Power
3. Tata
Communication
1. Tata Motors TMCL
2. Tata Power TPCL
3. Tata
Communication TCCL
1. Generation
Plant - GPCL
2. Transmission
Plant - TPCL
3. Distribution
Plant - DPCL
1. Mechanical MEC
2. Electrical - ELE
3. General - GEN
4. Civil - CIV
1. Central Pur Org
- CPOG

1. TPCL Chart of
Account - TPCL

Account
Groups

Retained
Earnings
Account

Fiscal Year
Variant
Reconciliati
on Account

Field
Status
Group

Number
Ranges
Tolerance
Key
Purchasing
Group
Material
Groups
Vendor
Account
Groups

The account group is a summary of accounts based on criteria that effects how
master records are created.
The account group determines:
The number interval from which the account number is selected when a G/L
account is created.
The screen layout for creating G/L accounts in the company code-specific area
Within the balance carry forward, the P+L accounts are carried forward to the
retained earnings accounts on the balance sheet (definition in Transaction OB53).
No documents are created. The balance carry forward can therefore not be carried
out via the line item display.
The opening balance on a retained earnings account consists of: Opening balance
= Closing balance of the previous year + Retained earnings from the P+L accounts
Consequently, the opening balance on a retained earnings account does not
correspond to the closing balance of the previous year.
In SAP the fiscal year is assigned as a variant. Posting periods can further be
defined in each fiscal year variant. SAP allows a maximum of 16 posting periods in
each fiscal year. It consists of 12 regular posting periods and 4 special periods
which can be used for audit or tax adjustments to already closed periods.
When you post items to a subsidiary ledger, the SAP system automatically posts
the same data to the general ledger at the same time. Each subsidiary ledger has
one or more reconciliation accounts in the general ledger. These reconciliation
accounts ensure that the balance of G/L accounts is always zero.
Field Status: While posting the transactions we need to input many fields like cost
center, profit center, plant. Etc
.In some scenarios cost center will be required (for expense posting), in some plant
will be required (inventory postings), value date in Bank accounting ....etc.
It will be cumbersome to input all the filed in all the scenarios .so we can make the
input of the filed as Required ( which need to be given to post the transaction ),
Optional ( we can enter those or we can leave ) , Display ( we cannot the edit the
filed ) and suppressed ( will not be displayed while posting ).SO we can set the
status of the filed as R/O/D/S.
Variant : Variant is the tool which is provided by SAP which help in assigning same
set of properties for more than one object .Example we define fiscal year Variant
and can be assigned to the more than one company code .
if a filed status variant is assigned to more than one company code same set of
screen filed will be displayed while posting those company fields.

1.
2.
3.
4.

Liabilities - 1
Assets - 2
Income - 3
Expenditure - 4

1. Retained
Earnings A/C 100100

1. Fiscal Year
Variant - K4 / V3
1. Sundry
Creditors A/C
2. Sundry Debtors
A/C

1. TPCL Field
Status Group TPCL

Number Ranges are used to give number to the documents in MM, FI, etc
Tolerance will be on upper limit or lower limit provided in document limit.
Purchasing group is an organizational unit which is responsible for everyday
procurement activities within an organization.
Material group is a wider range of material type. Materials with some common
attributes are taken together and they are assigned to material group. For Example:
Suppose we have some materials which need packaging, so there material type
can be electrical or food products but we can group these material types and put
them in packaged material group.
Vendors are categorized according to requirements and some of the vendors having
similar characteristics are grouped together and placed in one category. For
Example: All local vendors can be placed under one account group.

1. Chef - C01

1. Steel - 101
2. Cable - 102
1. Domestic
Vendors - DOM
2. Import Vendors
- IMP

Purchasing
Info Record

Source List

SAP R/3 works on all real time data that include material master and vendor
master. Material and vendor master are separate data records for keeping
information of materials and vendors from which material is procured. The
combined information of material and vendor altogether is kept in a record that we
call as purchase info record. The key points about purchase info record are as
follows Purchasing info record stores information on material and vendor supplying
that material. For Example: Vendors current price of a particular material is stored
in info record.
Purchase info record can be maintained at plant level or at purchasing organization
level.
Info record can be maintained for four procurement types which are as follows:
Standard: Standard info record has information on standard orders (orders include
details of vendor and material). This info record will include vendors price for
supplying the particular material.
Subcontracting: Subcontracting info record has information on subcontract
orders. This info record will include price for assembling the raw material that is
supplied by the ordering party.
Pipeline: Pipeline info record has information on material that is provided by
vendor through pipes. For Example: like water, electricity.
Consignment: Consignment info record has information on material that is kept at
ordering party premises. This info record contains vendors price that is to be paid
for withdrawing material from consignment stock.
The combined information of material and vendor altogether is kept in a record that
is known as purchase info record. But a particular material can be ordered from
different vendors in different time intervals. This information can be maintained in a
list that is called as source list. The key points about source list are as follows:
Source list include list of possible sources of supply for a material over a given
framework of time.
Source list specifies the time period of ordering of a particular material from a
given vendor.
Source list can be copied from one plant to another plant.
Source list can be created by following two ways:
Automatically
Manually

Define Enterprise Structure of FI & MM

Define Company OX15

Define Company Code OX02

Define Plant OX10

Define Storage Location OX09

Define Purchasing Organization OX08

Assignment of Company to Company Code OX16

Assignment of Plant to Company Code OX18

Assignment of Purchasing Org to Company Code OX01

Assignment of Purchasing Org to Plant OX17

Enterprise Structure View EC01

Update Qty & Value for Material Type for Plant OMS2

Define Chart of Accounts OB13

Define Chart of Accounts to Company Code OB62

Define Account Groups with Number Ranges OBD4

Define Retained Earnings Account OB53

Define Fiscal Year Variant OB29 (We are using standard fiscal year
variant K4 & V3)

Assign Fiscal Year Variant to Company Code OB37

Define Posting Period Variant OBBO

Assignment of Posting Period Variant to Company Code OBBP

Open & Close Posting Periods OB52

Define Field Status Group OBC4

Assignment of Field Status Group to Company Code OBC5

Check Global Parameters of Company OBY6

Maintain Company Code for Material Management: OMSY

Maintain Valuation Grouping Code to link valuation area to chart of

Accounts OMWD

MM Detailed Processes
1. Material Master
Material Type Definitions:
Material Description

Material
Type

Raw Material

ROH

Spare Parts Material

ERSA

Finished Material

FERT

Semi-Finished Material

HALB

Non Valuated Material

UNBW

Non Stock Material

NLAG

Pipeline Material

PIPE

Packaging Material

VERP

Definitions
It is material on which no process is done...which
is totally raw...For eg..in the cement industry,
limestone
is
a
raw
material..
Raw materials are always procured externally
and then processed. A material master record of
this type contains purchasing data, but not sales
data since they cannot be sold.
Spare parts are used to replace defective parts.
They may be kept in stock. A material master
record of this material type can contain
purchasing data, but not sales data.
The material on which all the process are done.
For
eg
cement
is
finished
product....
Finished products are produced in-house. Since
they cannot be ordered by Purchasing, a
material master record of this material type does
not contain purchasing data, only sales data.
Semi-finished material is the material on which
few process is done for eg, clinker is an example
in
cement
industry
Semi-finished products
can be
procured
externally and manufactured in-house. They are
then processed by the company. A material
master record of this material type can contain
both purchasing and work scheduling data
This UBNW is non-valuated material so value
wouldn't be captured in the SAP but quantity is
maintained.
If you want to have neither quantity nor value to
be captured in inventory than use NLAG nonstock material.
A pipeline material is a material that enters the
production process directly from a pipeline (for
example, oil), from a pipe (for example, mains
water), or via a cable (for example, electricity),
and can be consumed. Pipeline materials are
represented by the material type PIPE.
Packaging materials are intended to enclose or
hold together the materials that are to be
packed. In other words, the material that is to be
packed can be packed into or onto the
packaging material. The packaging material can
be a load carrier. The most important packaging
materials include crates, boxes, containers, wire
baskets, and pallets.

Returnable Packaging Material

LEIH

Operating Supplies

HIBE

Manufacturer Parts

HERS

Trading Goods

HAWA

Production Resources & Tools

FHMI

Services

DIEN

Waste

ABF

Returnable packaging consists of materials that

are stored at the customer location but which
remain the property of your company. The
customer is only required to pay you for the
returnable packaging if he does not return it to
you by a specified time. Using this function you
can, for example, process euro-pallets. You can
also use it to resell returnable packaging to a
third party. Since stocks of returnable packaging
form part of your valuated stock even when they
are at the customer site, you must manage them
in your system.
Operating supplies are procured externally and
required for the manufacture of other products.
A material master record of this material type
can contain purchasing data, but not sales data.
We will use operating supplies for consumables
items which are consumed during using raw
material to converting it as finished product.
Trading goods are movable goods intended for
commercial exchange. Examples of trading
goods are market goods, consumption goods
and durable goods. Trading goods are always
bought and re-sold by your company. The
material master record for trading goods
therefore always contains purchasing data and
sales data. Trading goods are managed in the
SAP System using the key HAWA.
Selling Service you can go for creating sales
order with material with material type (DIEN
material type) and sale it. You can record time
and expense, approve time and transfer to FI/CO
W.R.T. sales Order. For DIEN material type used
for scenarios like time & material (which mainly
used for resource related billing), milestone
billing where you have different sales order
document type.
This material type is used for waste
management.

Material Types:
Material Description
Raw Material
Spare Parts Material
Finished Material
Semi-Finished Material
Non Valuated Material
Non Stock Material
Pipeline Material
Packaging Material

Material Type
ROH
ERSA
FERT
HALB
UNBW
NLAG
PIPE
VERP

Standard Valuation
Class
3000
3040
7920
7900
3300
10

Returnable Packaging Material

Operating Supplies
Manufacturer Parts
Trading Goods
Production Resources & Tools
Services
Waste
Samples

LEIH
HIBE
HERS
HAWA
FHMI
DIEN
ABF
AEM

3050
3030
3100
7900
3200
3300
3100

Valuation Class Creation and linking with Material Types: OMSK

Creation of Material Group OMSF

Creation of Purchasing Group OME4

Creation of Material Master MM01

Change of Material Master MM02

Display of Material Master MM03

Same as previous Screens
Mass maintenance of Material Master MM17 / MASS

Extending of Material MM01

Material Master List : MM60

Create Number Ranges for Material MMNR

2. Vendor Master
Creation of Vendor Master : XK01

 Change in Vendor XK02

Display in Vendor XK03
Mass maintenance MASS
Extended XK01
3. Reference Purchasing Organization 4. Consumption Based Planning MRP
5. Account Group for Vendor : SPRO->IMG->FA New->A/C Receivables &
A/C Payables->Vendor Accounts->Master Data->Preparation for
Creating Vendor Master Data->Define Account Group with Screen
Layouts

Create Number Ranges for Vendor Accounts Same Path

6. Creation of Reconciliation account in Vendor FS00

7. Purchase Requisition

Create Purchase Requisition : ME51N

Change purchase requisition : ME52N

Display Purchase Requisition : ME53N

List of Purchase Requisition : ME5A

8. Stock Purchase Order with Reference to Purchase Requisition :

Create Purchase Order ME21N

Change Purchase Order ME22N

Click on this button to change the PO Number-

Display Purchase Order ME23N

List of Purchase Order Numbers : ME2N

9. Goods Receipt against Purchase Order : MIGO

Enter your PO No.

Enter Storage Location and Click on Item OK Check Box

Then Click on Check button on the top and click on Post

How to saw Accounting Document

MIGO - > Display

Click on Execute

Go to Document Info Click on FI Document

10.Invoice Verification : MIRO

Enter PO No.

Click on Calculate Tax then system will take you on payment tab, enter Base
line date here and enter invoice amount on basic data tab.

Click on Simulate

Click on POST
11.To Check Vendor Balances FBL1N

So Vendor Payment of Rs. 10000 is due that Finance need to pay.

12.Vendor Payment : F-53

Enter following details:

1. Document Date
2. Bank Account
3. Invoice Amount that you want to clear
4. Value Date
5. Vendor Account No.

Select this check box

which will select all items and then select this

check box
which will deselect all items, Now double click on
your invoice item and then simulate it thru task bar Document - >
Simulate

Now Simulate -> Post

13.Down payment Request Creation F-47

Save 14.Down Payment Posting F-48

Fill data mentioned in screenshot below

Click on request then system will show you all down payment requests, then
select your request and click on create down payment

Then Save it 15.How to Saw Down payment in Vendor Account FBL1N

Select Special GL Transactions in this report

16.Transfer Down Payment from Special GL to Normal GL F-54

17.Stock Checking

18.Purchase Requisition with Batch Number

19.Header Level Release Strategy in PR
20.Item Level Release Strategy in PR
21.Release Strategy with classification and Without Classification
22.Purchase Requisition
Create
Display
Change
Report
23.Request For Quotation
Create
Display
Change
Quotation Price Comparison
24.Release Strategy In RFQ
25.Contract types
Create
Display
Change
26.Contract thru PR/RFQ
27.Release Strategy for Contracts
28.Quantity & Value Contract
29.Scheduling Agreement
Create
Display
Change
30.Make Schedule lines
31.Create Schedule Agreement via MRP
32.Create PO with two different vendors (one for goods & one for freight)
33.Create Consignment PO
Create
Change
Display
34.Create Info Record
Standard
Consignment
Pipeline
Subcontracting
35.Source List
Create
Display
Change
36.Create BOM
Create
Display
Change
37.Subcontracting PO

 Create
Display
Change
38.Subcontracting PO with scrap in BOM
39.Subcontracting PO with Rework Process
40.Direct Consumption PO
Create
Display
Change
41.Asset Purchase Order
Create
Display
Change
42.Loan Licensing PO
Create
Display
Change
43.Service Purchase Order
Create
Display
Change
44.Service Work Sheet
Create
Display
Change
45.Split Valuation for Material
46.Stock determination for Material
47.Raw Material Excise Purchase Order
Create
Display
Change
48.Asset Excise Purchase Order
Create
Display
Change
49.Goods Receipt for:
Standard
Consignment
Subcontracting
Excise
50.Invoice Verification
Goods & Planned Delivery Cost
51.Release Strategy for Purchase Order with change features
52.Stock Transfer Order
Plant to Plant
Storage Location to Storage Location

 Company Code to Company Code

53.Import Purchase Order
Create
Display
Change
54.Invoicing Plan
55.Valuation Code
56.Account Determination:
Transaction/ Event Key
Account Modifier
Valuation Class
G/L Account
Rule
Procedure
57.Pricing Procedure
Condition Type
Condition Category
Accruals
58.Tax Procedure
Account Determination- OB40
59.Difference Between TAXINN & TAXINJ
60.Wrong GRN :
Normal
Excise
61.Return Delivery:
Normal
Excise
After a specific period
62.Excise JV
63.Register:
Extraction
Print
64.Registers Updating
65.Monthly Utilization
66.Create Outgoing Excise Invoice
67.Return Delivery via delivery for STO
68.Excise Scenario for STO
69.Types of Physical Inventory
70.Physical Inventory
Create
Display
Change
71.Physical Inventory Count
72.Physical Inventory Difference Posting
73.Recount Process of Physical Inventory
74.Output Determination for PO
75.Output determination for GR/GI

76.Output types for:

Purchase Order
GR
GI
77.Valuation Class & Material Type Link
78.MRP for Consignment Material
79.Material Valuation through FIFO method
80.Batch Determination
81.Quota Arrangement
82.Vendor Evaluation
83.Scaling for PO
84.MPN Functionality
85.Serial Number Management
86.Vendor Confirmation
87.Source Inspection for Externally procured Material
88.Movement type linking with G/L Account
89.Goods Issue With FIFO method
90.Quality Based invoice in SAP MM
91.Tables In SAP MM
92.Steps in Cut Over Strategy
93.Transaction type in Excise
94.How can we create Tax Code
95.Excise Based Subcontracting Process
96.Difference Between Non Stock And Non Valuated Material
97.Subsequent Adjustment in Subcontracting process
98.Credit Memo/ Debit Memo in invoicing
99.How can we maintain free item in PO
100.
Stock Types
101.
Data Migration with open data with GR & IV, Partial and consumption is
also done
102.
Non Valuated Item PO with traceability of IN & OUT
103.
Pipeline
104.
Returnable Transport Packages