Sap MM Guide PDF

Duro Shox Pvt Limited
SAP Implementation
Project Pragati
USER MANUAL
USER MANUAL
Materials Management
DOCUMENT CONTROL SHEET

GENERAL INFORMATION
Project name
Implementation
Document name
Materials Management
DOCUMENT INFORMATION
Version
Filename
Date
Author
Reviewed
by
Document location
Changes from
previous version
Materials Management User Manual For Duro Shox Pvt Limited

1.0
V 1.0
Version
EUT -MM
REFERENCE DOCUMENTS
Document
Version
R Reference
DOCUMENT APPROVALS
Kedar Kulkarni
MM Consultant
Prepared by
(KPIT Cummins Infosystems Limited.)
Confidential Page 2 of 316
Approved by
(Duro Shox Pvt Limited)

1.0
Version
USER PROCEDURE MANUAL

TABLE OF CONTENTS
Duro Shox Pvt Limited________________________________________________1
1 Procurement of Stock Materials .............................................................................................................10

1.1
Procurement of Stock Materials Raw Material Local / Return___________10
1.1.1 Purpose.....................................................................................................................................................10
1.1.2 Prerequisites .............................................................................................................................................10
1.1.3 Material Master Record..............................................................................................................................10
1.1.4 Vendor Master Record...............................................................................................................................24
1.1.5 Purchasing Info Record.............................................................................................................................35
1.1.6 Source List.................................................................................................................................................41
1.1.7 CIN Master Data........................................................................................................................................43
1.1.8 Excise Condition Record............................................................................................................................53
1.2
Request for Quotation (RFQ)_______________________________________56
1.2.1 Use............................................................................................................................................................56
1.2.2 Procedure..................................................................................................................................................56
1.2.3 Result.........................................................................................................................................................61
1.2.4 Example ....................................................................................................................................................61
1.3
Message output: RFQ_____________________________________________61
1.3.1 Use............................................................................................................................................................61
1.3.2 Procedure..................................................................................................................................................61
1.4
Maintaining Quotation ____________________________________________64
1.4.1 Use............................................................................................................................................................64
1.4.2 Procedure..................................................................................................................................................64
1.4.3 Result ........................................................................................................................................................66
1.4.4 Example ....................................................................................................................................................66
1.5
Price Comparison ________________________________________________67
1.5.1 Use............................................................................................................................................................67
1.5.2 Procedure..................................................................................................................................................67
1.5.3 Result ........................................................................................................................................................69
1.6
Creating Purchase Requisition _____________________________________69
1.6.1 Use............................................................................................................................................................69
1.6.2 Procedure..................................................................................................................................................69
1.6.3 Result ........................................................................................................................................................70
1.6.4 Example.....................................................................................................................................................70
1.7
Release Purchase Requisition______________________________________70
1.7.1 Procedure..................................................................................................................................................71
1.8.
Assign and Process Purchase Requisition___________________________74
1.8.1 Use...........................................................................................................................................................74
1.8.2 Procedure..................................................................................................................................................74
1.8.3 Result ........................................................................................................................................................76
1.9
Purchase Order__________________________________________________77
1.9.1 Use............................................................................................................................................................77
1.9.2 Procedure..................................................................................................................................................77
1.9.3 Result ........................................................................................................................................................82
1.9.4 Example ....................................................................................................................................................82

1.0
Version
1.10. Release Purchase Order_________________________________________83

1.10.1. Procedure............................................................................................................................................83
1.11Message Output_________________________________________________87
1.11.1 Use.........................................................................................................................................................87
1.11.2 Procedure................................................................................................................................................87
1.12
Goods Receipt for Purchase Order_________________________________89
1.12.1 Use..........................................................................................................................................................89
1.12.2 Prerequisites ...........................................................................................................................................89
1.12.3 Procedure................................................................................................................................................89
1.12.4 Result ......................................................................................................................................................99
Material document 5000000009 posted...............................................................................................99
1.12.5 Example ..................................................................................................................................................99
1.13
Logistics Invoice Verification____________________________________100
1.13.1 Use........................................................................................................................................................100
1.13.2 Procedure..............................................................................................................................................100
1.13.3 Result ....................................................................................................................................................105
1.13.4 Example ................................................................................................................................................105
1.14
Returning Delivery _____________________________________________106
1.14.1 Use........................................................................................................................................................106
1.14.2 Procedure..............................................................................................................................................106
1.14.3 Result ....................................................................................................................................................113
Return Delivery document created..................................................................................................................113
1.14.4 Example ................................................................................................................................................113
1.15
Excise Invoice Other Movements__________________________________114
1.15.1 Procedure..............................................................................................................................................114
1.15.2 Result ....................................................................................................................................................116
1.15.3 Example ................................................................................................................................................116
1.16
Posting and Printing the Excise Invoice____________________________117
1.16.1 Use........................................................................................................................................................117
1.16.2 Prerequisites .........................................................................................................................................117
1.16.3 Procedure..............................................................................................................................................117
1.16.4 Result ....................................................................................................................................................120
1.17
Credit Memo___________________________________________________121
1.17.1 Use........................................................................................................................................................121
1.17.2 Prerequisites .........................................................................................................................................121
1.17.3 Procedure..............................................................................................................................................121
1.17.4 Result ....................................................................................................................................................127
1.17.5 Example ................................................................................................................................................127
1.18
Reversals / Cancellation of Invoice or Credit Memo __________________127
1.18.1 Use........................................................................................................................................................127
1.18.2 Prerequisites..........................................................................................................................................128
1.18.3 Procedure..............................................................................................................................................128
1.18.4 Result.....................................................................................................................................................133
1.18.5 Example.................................................................................................................................................133
1.19
Reversals / Cancellation of Goods Receipt (GR) _____________________134
1.19.1 Use........................................................................................................................................................134
1.19.2 Prerequisites..........................................................................................................................................134
1.19.3 Procedure..............................................................................................................................................134
1.19.4 Result ....................................................................................................................................................139

1.0
Version
1.19.5 Example ................................................................................................................................................139
1.20
Reversing CENVAT Postings _____________________________________140
1.20.1 Purpose.................................................................................................................................................140
1.20.2 Prerequisites .........................................................................................................................................140
1.20.3 Procedure..............................................................................................................................................140
1.20.4 Result.....................................................................................................................................................144
1.20.5 Example.................................................................................................................................................144
1.21
Canceling Excise Invoices _______________________________________145
1.21.1 Purpose.................................................................................................................................................145
1.21.2 Prerequisites .........................................................................................................................................145
1.21.3 Procedure..............................................................................................................................................145
1.21.4 Result.....................................................................................................................................................150
1.21.5 Example.................................................................................................................................................150
2 Procurement of Imported Materials Business Process Procedure....................................................151

2.1 Procurement of Imported Materials________________________________151
2.1.1 Purpose..................................................................................................................................................151
2.1.2 Prerequisites ...........................................................................................................................................151
2.2 Creating Purchase Order ________________________________________152

2.2.1 Use.........................................................................................................................................................152
2.2.2 Prerequisites ...........................................................................................................................................152
2.2.3 Procedure................................................................................................................................................152
2.2.4 Result ......................................................................................................................................................158
2.2.5 Example ..................................................................................................................................................158
2.3
Release Purchase Order__________________________________________159
2.3.1 Procedure................................................................................................................................................159
2.4
Message Output_________________________________________________162
2.4.1 Use..........................................................................................................................................................162
2.4.2 Procedure................................................................................................................................................162
2.5
CAPTURING BILL OF ENTRY_____________________________________164
2.5.1 Use..........................................................................................................................................................164
2.5.2 Procedure................................................................................................................................................164
2.5.3 Result ......................................................................................................................................................171
2.5.4 Example ..................................................................................................................................................171
2.6
Goods Receipt for Imported Purchase Order_________________________172
2.6.1 Use..........................................................................................................................................................172
2.6.2 Procedure................................................................................................................................................172
2.6.3 Result ......................................................................................................................................................183
2.6.4 Example ..................................................................................................................................................183
2.7
Logistics Invoice Verification for the Materials_______________________184
2.7.1 Use..........................................................................................................................................................184
2.7.2 Procedure................................................................................................................................................184
2.7.3 Result ......................................................................................................................................................190
2.7.4 Example ..................................................................................................................................................190
3 Procurement of Subcontracting Materials Business Process Procedure..........................................191

3.1
Procurement of Subcontracting Materials___________________________191
3.1.1 Purpose...................................................................................................................................................191
3.1.2 Prerequisites ...........................................................................................................................................191

1.0
3.2
Version
Creation of Subcontracting Purchase Order__________________________192
3.2.1 Use..........................................................................................................................................................192
3.2.2 Prerequisites ...........................................................................................................................................192
3.2.3 Procedure................................................................................................................................................192
3.2.4 Result ......................................................................................................................................................196
3.2.5 Example ..................................................................................................................................................196
3.3
Message Output_________________________________________________197
3.3.1 Use..........................................................................................................................................................197
3.3.2 Procedure................................................................................................................................................197
3.4
Transfer of Components to Subcontractor___________________________199
3.4.1 Use..........................................................................................................................................................199
3.4.2 Prerequisites ...........................................................................................................................................199
3.4.3 Procedure................................................................................................................................................199
3.4.4 Result ......................................................................................................................................................201
3.4.5 Example ..................................................................................................................................................202
3.5
Creation of Subcontracting Challan_________________________________202
3.5.1 Use..........................................................................................................................................................202
3.5.2 Prerequisites............................................................................................................................................202
3.5.3 Procedure................................................................................................................................................202
3.5.4 Result ......................................................................................................................................................204
3.5.5 Example ..................................................................................................................................................204
3.6 Printing of Subcontracting Challan________________________________205

3.6.1 Use.........................................................................................................................................................205
3.6.2 Procedure................................................................................................................................................205
3.7
Goods Receipt for Purchase Order _________________________________209
3.7.1 Use..........................................................................................................................................................209
3.7.2 Prerequisites ...........................................................................................................................................209
3.7.3 Procedure................................................................................................................................................209
3.7.4 Result ......................................................................................................................................................217
3.7.5 Example ..................................................................................................................................................217
3.8
Reconciling Subcontracting Challan________________________________218
3.8.1 Use..........................................................................................................................................................218
3.8.2 Procedure................................................................................................................................................218
3.8.3 Result ......................................................................................................................................................220
3.8.4 Example ..................................................................................................................................................220
3.9
Completing/Reversal/Re-credit Subcontracting Challan________________221
3.9.1 Use..........................................................................................................................................................221
3.9.2 Procedure................................................................................................................................................221
3.9.3 Result ......................................................................................................................................................222
3.9.4 Example ..................................................................................................................................................222
3.10
Logistics Invoice Verification for Subcontracting Material_____________222
3.10.1 Use........................................................................................................................................................222
3.10.2 Procedure..............................................................................................................................................222
3.10.3 Result ....................................................................................................................................................226
3.10.4 Example ................................................................................................................................................226
5. Procurement of External Services: Business Process Procedure.......................................................227

5.1
Procurement of External Services Procurement Process_____________227
5.1.1 Purpose...................................................................................................................................................227
5.1.2 Prerequisites ...........................................................................................................................................227

1.0
5.2
Version
Creating Service Master__________________________________________228
5.2.1 Use..........................................................................................................................................................228
5.2.2 Procedure................................................................................................................................................228
5.2.3 Result ......................................................................................................................................................229
5.3
Creating Purchase Requisition ____________________________________230
5.3.1 Use..........................................................................................................................................................230
5.3.2 Procedure................................................................................................................................................230
5.3.3 Result ......................................................................................................................................................235
5.3.4 Example...................................................................................................................................................235
5.4
Assign and Process Purchase Requisition___________________________236
5.4.1 Use..........................................................................................................................................................236
5.4.2 Procedure................................................................................................................................................236
5.4.3 Result ......................................................................................................................................................239
5.6 Purchase Order_________________________________________________239

5.6.1 Use.........................................................................................................................................................239
5.6.2 Prerequisites ...........................................................................................................................................240
5.6.3 Procedure................................................................................................................................................240
5.6.4 Result ......................................................................................................................................................242
5.6.5 Example ..................................................................................................................................................243
5.7
For Releasing Purchase Order Refer User Manual of Stock Procurement_243
5.8
Message Output_________________________________________________243
5.8.1 Use..........................................................................................................................................................243
5.8.2 Procedure................................................................................................................................................243
5.9
Creation and Acceptance of Service Entry Sheet _____________________245
5.9.1 Use..........................................................................................................................................................245
5.9.2 Procedure................................................................................................................................................246
5.9.3 Result ......................................................................................................................................................256
5.9.4 Example ..................................................................................................................................................256
5.10
Logistics Invoice Verification_____________________________________257
5.10.1 Use........................................................................................................................................................257
5.10.2 Procedure..............................................................................................................................................257
5.10.3 Result ....................................................................................................................................................261
5.10.4 Example ................................................................................................................................................261
6 Asset Procurement Business Process Procedure...............................................................................262

6.1
Purchase Order_________________________________________________262
6.1.1 Use..........................................................................................................................................................262
6.1.2 Procedure................................................................................................................................................262
6.1.3 Result.......................................................................................................................................................266
6.2
Release of Purchase Order _______________________________________266
6.2.1 Procedure................................................................................................................................................266
6.3
Goods Receipt for Purchase Order_________________________________267
6.3.2 Use..........................................................................................................................................................267
6.3.3 Prerequisites ...........................................................................................................................................267
6.3.4 Procedure................................................................................................................................................267
6.2.3 Result.......................................................................................................................................................269
6.4
Post Excise Invoice______________________________________________269
6.4.1 Procedure...............................................................................................................................................269

1.0
Version
6.4.2 Result......................................................................................................................................................271
6.5
Logistics Invoice Verification______________________________________272
6.5.1 Use..........................................................................................................................................................272
6.5.2 Procedure................................................................................................................................................272
6.5.3 Result.......................................................................................................................................................275
7 Excise Periodic Processing Business Process Procedure..................................................................276

7.1
Excise Periodic Processing _______________________________________276
7.1.1 Purpose...................................................................................................................................................276
7.1.2 Prerequisites............................................................................................................................................276
7.2
Excise Report - CENVAT Register __________________________________277
7.2.1 Use..........................................................................................................................................................277
7.2.2 Prerequisites............................................................................................................................................277
7.2.3 Procedure................................................................................................................................................277
7.2.4 Result ......................................................................................................................................................279
7.3 Excise Register Updation....................................................................................................................280

7.3Updation of RG1 Register ________________________________________280
7.3.1 Use..........................................................................................................................................................280
7.3.2 Prerequisites............................................................................................................................................280
7.3.3 Procedure................................................................................................................................................280
7.3.4 Result ......................................................................................................................................................287
7.4
RG1 Register Extraction__________________________________________288
7.4.1 Use..........................................................................................................................................................288
7.4.2 Prerequisites............................................................................................................................................288
7.4.3 Procedure................................................................................................................................................288
7.4.4 Result ......................................................................................................................................................291
7.5
RG1 Register Print Utility_________________________________________292
7.5.1 Use..........................................................................................................................................................292
7.5.2 Prerequisites............................................................................................................................................292
7.5.3 Procedure................................................................................................................................................292
7.5.4 Result ......................................................................................................................................................295
8. PLA Register Extraction.......................................................................................................................295

8.1
PLA Register Extraction__________________________________________295
8.1.1 Use..........................................................................................................................................................295
8.1.2 Prerequisites............................................................................................................................................295
8.1.3 Procedure................................................................................................................................................295
8.1.4 Result ......................................................................................................................................................298
8.2
PLA Register Print Utility_________________________________________298
8.2.1 Use..........................................................................................................................................................298
8.2.2 Prerequisites............................................................................................................................................298
8.2.3 Procedure................................................................................................................................................298
8.2.4 Result ......................................................................................................................................................300
9. Reports .................................................................................................................................................301
7.1
Purchasing____________________________________________________301
7.1.1 Purchasing Documents per Vendor (ME2L)............................................................................................301

7.1.2 Purchasing Documents per Material (ME2M)..........................................................................................302
7.1.3 Source List for Material (ME0M)..............................................................................................................303
7.1.4 Purchase Info Record per Material (ME1M).............................................................................................303

1.0
Version
7.1.5 Purchasing Values(MC$G)......................................................................................................................305
9.2
Inventory_______________________________________________________307
9.2.1 Material Document List (MB51)...............................................................................................................307

9.2.2 Diplay Warehouse Stock (MB52).............................................................................................................309
9.3.3 Stock on Posting Date (MB5B)...............................................................................................................310
9.3.4 Stock Overview (MMBE).........................................................................................................................313
9.3.5 Stock in Transit (MB5T)..........................................................................................................................314
9.3.6 Slow Moving Items (MC46).....................................................................................................................314
Icons
Icon
Meaning
Caution
Example
Note
Recommendation
Syntax
Abbreviations
R
Required entry field

(used in the end-user procedures)
Optional entry field

Conditional field

1.0
Version
1 Procurement of Stock Materials

1.1 Procurement of Stock Materials Raw Material Local / Return
1.1.1
Purpose
This process describes the procurement process of raw materials from indigenous source of supply with Country
Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.
1.1.2
Prerequisites
The following scenario specific master data must be created for operation of this building block.
1.
2.
3.
4.
5.
6.
Material Master Record

Vendor Master Record
Purchase Info Record (Optional)
Source List (Optional)
CIN Master Data
Excise Condition Record (if Tax applicable for the Vendor-Material Combination)
1.1.3
Menu Path
T Code
Material Master Record

Logistics Materials Management Material Master Material Create
(General)
MM01 Create
MM02 Change
MM03 Display

1.0
Internal Number
assignment .
Enter the Industry Sector
Enter the Material Type
Press Enter to see the pop-up window.
Version

1.0
Select the required views and press Enter to input the organizational levels.
Version

1.0
Press Enter to input the details of the Material.
1.1.3.1
Basic Data Views
Enter the Material

Description
Enter the Unit of Measure
and material Group
Enter the division if Stock
Transfer will happen for this
material
Blocking for Procurement or
BOM enter here
Enter the Gross and Net
Weight for the Finished Goods
Enter here if the material is

returnable packing as VERP and
non returnable packing as LEIH
Version

1.0
Version
Press Additional Data to

maintain Alternate Unit of
Measures
Enter any Basic Material is there
Press Additional Data to maintain the Alternate Unit of Measures (for e.g. 1000G= 20Nos for the Semi finished
goods)

1.0
Press Main data to go to the next view
Version

1.0
1.1.3.2
Purchasing Views
Enter the Purchasing Group

Person/Group responsible to
procure this material
If the Ordering Unit is other
than the Base UoM, enter the
Unit and make VAR. OUn as 1
Enter the Purchasing Value

Key as G1 (5% Delivery
Tolerance) or G2 (10%
Delivery Tolerance)
Select if QM is not active and
want to post to Inspection
Stock (Mainly used for
Spares)
Source list should be
maintained for this material
select the box.
Enter the No. of Days required
for GR Processing once the
material is arrived at factory.
Version

1.0
Enter the PO Text normally

specification is maintained
Version

1.0
1.1.3.3
MRP Views
Enter the appropriate MRP

Type)
Version

1.0
Version

1.0
Work Scheduling View:
Version

1.0
1.1.3.4
Quality Management View
Version

1.0
1.1.3.5
Version
Accounting Views
Enter the appropriate Valuation

Class (Various Valuation
Classes given below)
Enter the Price Control as V-Moving
Average and S-Standard
If Price Control is V enter the
Moving Average price, S enter
the Standard Price

1.0
1.1.3.6
Version
Costing Views
Enter Respective Profit

Centre of Plant/Depot
After entering all the details, press
to save the Material.

1.0
1.1.4
Menu Path
T Code
Vendor Master Record

Logistics Materials Management Purchasing Master Data Vendor
Central
XK01 Create
XK02 Change
XK03 Display
Vendor Number to be put manually

Enter Company Code
Enter Purchasing Organisation
Enter Account Group (Various
Group given below)
Press Enter to input the details of the vendor.

Vendor Account Groups:
VDOM
Domestic Vendors
VIMP
Import Vendors
VSRV
Service Vendors
Version

1.0
1.1.4.1
General Data
Version

1.0
Click on the CIN Details to enter the

Vendor Excise and Sales Tax details
Version

1.0
Enter all the details in the respective fields
Excise Indicator for Vendor as 1

100% Taxable
Version

1.0
Enter all the details in the respective fields
Version

1.0
Enter the detail in the respective field
Enter whether this vendor is approved or on Probation
Version

1.0
No need to enter in the below screen.
Version

1.0
1.1.4.2
Accounting Data
Enter the appropriate Reconciliation

Accounts (Various Accounts given below)
Reconciliation Accounts:
Version

1.0
Version
Enter the appropriate Payment Terms and

Select the Chk double inv
Enter the appropriate Payment Methods
C Cheque, E Cash Payment, T Bank Transfer
The below screen is explained in detail in FI User Manual:

1.0
1.1.4.3
Version
Purchasing Data
Enter the Order Currency, Terms of

Payment and Incoterms
Enter the appropriate Schema group, Vendor

(Various groups given below)
1. Select GR-based Inv. Verf if Invoice

verification is done after GR
2.. Select the Srv-based Inv. Verf if Invoice
Verification is done after Service Entry sheet.
Schema group, Vendor:

DM
IM
Domestic Schema
Import Schema

1.0
Version
Enter the Partner for the appropriate Partner

Functions
Press
to save the Vendor master and the no is generated automatically.

1.0
1.1.5
Menu Path
T Code
Version
Purchasing Info Record

SAP Easy Access Logistics Materials Management Purchasing Master
Data Info Record Create
ME11 Create
ME12 Change
ME13 - Display
You use this component if you wish to store information on a vendor and a material as master data at purchasing
organization or plant level. You can create purchasing info records for different procurement types (standard,
subcontracting, pipeline, consignment).
Enter the Info Category as

1. Standard For normal Procurement (Domestic, Import, etc)
2. Sub-Contracting For Sub-Contracting
Press enter the details in the Purchasing Info Record.

1.0
If the message is displayed like this,

intimate the Quality Person to maintain
the QM Info Record (TCode: QI01)
Version

1.0
Version
No need to enter anything in the below screen as it copies all the data from the Vendor Master.

1.0
It is defaulted from the Material Master

but change for this Vendor-Material
combination if different.
Enter the Standard Quantity
Enter the appropriate Tax Code
Enter the Net Price
Version

1.0

Version

1.0
1.1.5.1
Result
Purchasing Info Record is created
1.1.5.2
Example
Purchasing Info Record 5300000384 is created.
Version

1.0
1.1.6
Menu Path
T Code
Source List
SAP Easy Access Logistics Materials Management Purchasing Master
Data Source List Maintain
ME01 Maintain
ME03 Display
ME04 - Changes
Enter the Material No. and Plant
Version

1.0
Select if the
Vendor is fixed
Version
Select if the Vendor is blocked for

Procurement for this particular
material alone
Enter 1 to be included
in MRP Run
Maintain the Validity
Period till until which you
will procure this material
from this vendor
Enter the Vendor and

Purchasing Organisation
Result: Source List changed.

1.0
1.1.7
Menu Path
T Code
1.1.7.1
CIN Master Data

J1ILN SAP Menu Indirect Taxes Master Data Excise Rate Maintenance
J1ID
Chapter IDs
Select Chapter ID and Press
Version

1.0
Press New Entries to Create New Chapter ID
Press New Entries to go to the next screen.
Version

1.0
Enter the Chapter ID
Enter the Description as per

law
Press
to save the data.
Version

1.0
1.1.7.2
Material ID and chapter ID combination
Select the Material and Chapter-Id Combination
Select Material and Chapter ID Combination and Press
Version

1.0
Press New Entries to Create New Material Number and Chapter ID

Combination
Version

1.0
Enter the Material No. and Chapter ID Combination
Enter the material type based on

the Material Nature
Press
to save the data.
Version

1.0
1.1.7.3
Vendor Excise Details
Either you can maintain here or else in Vendor Master.
Select the Vendor Excise Details
Version

1.0
Press New Entries to Create Vendor Master Excise

Details
Press
to save the data.
Version

1.0
1.1.7.4
Excise Indicator for Plants
Select the Excise Indicator for Plant
Select Excise Indicator for Plant and Press
Version

1.0
Press New Entries to Create Plant Excise

Details
Press
to save the data.
Version

1.0
1.1.8
1.1.8.1
Excise Condition Record
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System
automatically calculates the applicable excise duties using the condition technique.
1.1.8.2
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu
No Menu path available for this transaction
Transaction code
FV11
2. Enter the appropriate Condition type (various condition types given in next page) and maintain the
respective values.
Enter the appropriate condition type
Version

1.0
Various combinations to maintain the

condition record
For Raw Material / Packing Material maintain the Plant/Vendor/Material Combination.

For Service Tax /Assets maintain the Plant/Material Group Combination.
.
Version

1.0
Enter the Plant and Vendor
Enter the Material No.
Enter the Value / amount
3. Press Ctrl+S or
4.
1.1.8.3
Result
Condition records saved.
Version

1.0
Version
1.2 Request for Quotation (RFQ)

1.2.1
Use
Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.
This transaction is optional for the process.
1.2.2
Procedure

SAP R/3 menu
Logistics Material Management Purchasing
RFQ/quotation Request for Quotation Create
Transaction code
ME41
2. RFQ can be created with reference to Purchase Requisition, Outline Agreement (Contract) and another
RFQ.
3. On the Create RFQ: Initial Screen, make the following entries:
1. Enter the RFQ type as AN

2. Enter the Quotation Deadline
3. Enter Purch. Organisation as 1101
4. Enter the respective Purchasing group

1.0
Version
Press this button to enter the Collective

No and Vendor Reference
Enter the Submission date
Enter the appropriate

Item category for SubContracting & Service
1. Enter the Material No

2. Enter the RFQ Quantity
3. Enter the Deliv. Date
4. Enter the Plant if it is Plant specific
4. Choose
(header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter
information in the fields as specified in the table below:

1.0
Press this button to enter the vendor

code for which it has to be sent?
Enter the Collective No to have a track of

all RFQs related to particular instance
Enter the Your Reference if any

reference given by the vendor
Version

1.0
Version
5. Choose
(vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter
information in the fields as specified below:
After entering the vendor code and pressing enter the details of vendor will be displayed automatically.

1.0
Version
6. Press
to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of
the same RFQ data to a new vendor by following the steps outlined above.

1.0
1.2.3
Version
Result
RFQ created
Similarly create for other vendor in the same screen and various RFQ Nos will be generated
1.2.4
Example
RFQ created under the number 6000000000.
1.3 Message output: RFQ

1.3.1
Use
A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.
1.3.2
Procedure

SAP R/3 menu
Logistics Materials Management Purchasing

RFQ/Quotation Request for Quotation Messages
Print/Transmit
Transaction code
ME9A
2. On the Message Output screen, make the following entries:

1.0
Version
Enter the RFQ Nos to be printed

and Execute (F8)
Press this button to Execute
Select the check box
For Printout click

this button which
will create Spool
Request.
For Print Preview

click this button
For Direct Printout

click this button

1.0
You will see out put as
Version

1.0
Version
1.4 Maintaining Quotation

1.4.1
Use
This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates
price for material and as a result the RFQ (Request for Quotation) needs to be updated.
1.4.2
Procedure

SAP R/3 menu
RFQ/quotation Quotation Maintain
Transaction code
ME47
2. On the Maintain Quotation: Initial Screen, make the following entries:
3. Choose the Enter key, or choose

green Enter icon to proceed.
4. View the screen Maintain Quotation: Header Data by Choosing on the Header data icon in the toolbar.

1.0
Version
5. Enter information in the fields as specified in the table below. Some fields will not be available for input, as they
are reference fields only.
2. Press to enter the conditions
1. Press to select the line
6. Once all necessary header data has been maintained, the user can then enter the price information in one
of two fashions:
Enter the Conditions given by vendor.
a. Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by
Choosing overview icon on toolbar.

1.0
Version
b. To enter more detailed information in addition to the net price, select the line item and choose
the Item Details icon. Choose the green Back arrow to return to the Overview screen once
data has been maintained.
i. A vendors quoted price can be entered in one of two ways.
ii. Enter the net price per unit in the Net price field. This price includes the vendor's
normal discounts and surcharges only. Cash discounts (for prompt payment) and taxes
are calculated separately.
iii. Enter the gross price in the Net price field, and maintain the conditions for the item.
Then the system automatically replaces the entered gross price with the calculated net
price. If the net price for an item is entered for which pricing conditions have been
maintained, the system always replaces the price entered with the calculated net price.
iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes etc.)
in the Tax code field. If a purchase order is created by referencing an RFQ, this code
facilitates the determination of the tax amount when the invoice is entered in the
system.
v. After entering tax code, after choosing this system may give an information message
showing the effective price, Choose Enter to continue.
7. Once all quotation information has been successfully entered, save the data by Choosing on the Save
button, or Choose the <Ctrl + S> keys. A message will be displayed that the data has been saved.
1.4.3
Result
Quotation is maintained.
Maintain the same for other RFQs.
1.4.4
Example
Quotation for RFQ 6000000000 maintained.

1.0
Version
1.5 Price Comparison

1.5.1
Use
Required to compare prices from all quotations received as a result of a competitive bidding process.
1.5.2
Procedure

SAP R/3 menu
RFQ/Quotation Quotation Price Comparison
Transaction code
ME49
2. On the Price Comparison List screen, make the following entries:
Enter the Purchasing Organisation

Enter the Quotations to be compared or
the Collective RFQ
Parameters included for Comparison
a. Choose the comparison values to be used:

i. Reference quotation: You can compare the quotations within the list with a sample
quotation. The system displays the percentage deviation between each quotation in the list
and the sample quotation.
ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious"
quotation reflecting the average or minimum value of all quotations. Select either the "Mean
value" or "Minimum value" quotation field to choose the type of fictitious quotation.
iii. Percentage basis: The price comparison list displays the percentage of each item in
relation to the maximum, minimum, or average price. To determine the display type, enter
one of the following:

1.0
Version
+: The highest value for each item is the 100% value

-: The lowest value for each item is the 100% value
_: The mean value for each item is the 100% value
b. Select the desired price computations:
i. Select the appropriate field to determine which of the following should be included in the
determination of the comparison price:
i. Include cash discounts
ii. Include delivery costs
iii. Determine effective price
3. Once all entries have been made, Choose the Execute.
4. On screen Price Comparison List in Currency INR, view the Price Comparison list.
Rank is
generated
automatically
Mean and
Effective Price is
highlighted
5. To view any of the following information for a particular quote included in the comparison, Choose the RFQ
number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar:
6. Display Material:
Allows the user to view the purchasing data in the material master record.
7. Display Vendor: Allows the user to view the vendor master record.
8. Additional Info: Allows the user to view payment terms, bid dates, currency information for all the vendor
quotations in the list.
9. If any information has been modified through the comparison list, save the RFQ before exiting. If changes
have been made and the user attempts to exit without saving, the system will return a message to verify
action.
10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.

1.0
1.5.3
Version
Result
Price Comparison List in Currency INR is displayed on the screen.
1.6 Creating Purchase Requisition

1.6.1
Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant
Maintenance Purchase Requisition is generated automatically from Plant maintenance Order.
1.6.2
Procedure

SAP R/3 menu
Logistics Materials Management Purchasing Purchase

Requisition Create
Transaction code
ME51N

1.0
2. On the Create Purchase Requisition screen, make the following entries:
Enter Material No.
Enter required
Quantity
Enter the Desired Vendor if Vendor is known to

the person who is creating PR
Press
or Ctrl+S to Save the Purchase Requisition.
1.6.3
Result
1.6.4
Example
Purchase requisition number 0010000000 created.
1.7
Release Purchase Requisition
Version

1.0
1.7.1 Procedure
SAP R/3 menu

Requisition Release Individual Release
Transaction code
ME51N
Click Other Purchase Requisition
Enter PR No.
Version

1.0
Version
Click This Icon to Release PR
Click This Icon to Release

1.0
Click This Icon to Save
Version

1.0
1.8.
Version
Assign and Process Purchase Requisition
1.8.1 Use
a) This section explains the functions provided by the SAP System for converting requisitions into
external purchasing documents (purchase orders, contract release orders, scheduling agreement
delivery schedules, RFQs), and the processing options thereby available to you:
Assigning means defining the desired source for each purchase requisition item
o Further processing involves generating lists of requisitions that have been assigned or flagged as
outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery
schedules under scheduling agreements.
1.8.2 Procedure
SAP R/3 menu
Transaction code

Requisition Follow-On Functions Assign and Process
ME57

1.0
Version
3. The assignment of sources to and further processing of purchase requisitions are two distinct functions.
You can choose whether you wish to perform the functions in two separate steps or in just one.
4. Below are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate

Purchasing Group
2. Enter the Scope of List as B1 for
PR generated through MRP Run
and A for remaining PR
3. Enter the appropriate Plant
1. Select the Assigned Purchase

Requisition (For Spares PR
normally the End User may have
entered the Vendor in the PR)
2. Select the appropriate Check
boxes for Processing the PR
5. Press
or F8 to enter into the next screen.

1.0
1. If Source List is
available click this button
1. Select the check boxes

required PR which are to
be converted in to Pos.
After assigning the source

click on to this button to
process the PO or else save
for the assignment of source
1. Since only one source is assigned in

Source list system assigns the source
automatically or else if more than one source
available a Pop-up window will be coming
where one vendor has to be selected.
6. O is explained in next chapter.
1.8.3 Result
The source is assigned to PR and can be processed for PO.
Version

1.0
Version
1.9 Purchase Order

1.9.1 Use
A purchase order is a legal document used to record an individual purchase with the vendor. It also
provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice
verification) processes. The purchase order is a commitment to a vendor for a given material, in a
specified quantity at a predetermined price and delivery date.
This transaction is mandatory for the process.
Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
1.9.2 Procedure
SAP R/3 menu
Order CreateVendor/Supplying Plant Known
Transaction code
ME21N

1.0
Version
2. If you want create purchase order with reference to the purchase requisition, on item details screen enter
the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all
the data from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt
Press this button to view

the Tax Calculation

1.0
Version

1.0
the message
Version

1.0
Check the PO before

Saving
Version

1.0
1.9.3 Result
Purchase Order is created.
1.9.4 Example
Standard PO created under the number 210000000.
Version

1.0
1.10. Release Purchase Order

1.10.1. Procedure
Access the transaction choosing one of the following navigation options:
SAP R/3 menu

Order Release Individual Release
Transaction code
ME29N
Click Other Purchase Order
Enter PO No.
Version

1.0
Version

1.0
Version

1.0
Version

1.0
1.11Message Output
1.11.1 Use
A Purchase Order needs to be printed for transmitting to vendor.
1.11.2 Procedure
SAP R/3 menu
Order Messages Print/Transmit
Transaction code
ME9F
3. On the Message Output screen, make the following entries
4. Choose
to Execute.
Version

1.0
5. On screen Message Output select the appropriate Document number and perform the following:
Choose Output Message and/or

Choose Display Message and/or
Choose Message Detail and/or
Choose Trial Printout.
Version

1.0
Version
1.12 Goods Receipt for Purchase Order

1.12.1 Use
Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods
movement is entered into the system referencing this PO and a goods receipt material document is
posted. Appropriate general ledger accounts are also posted and stocks are updated.
1.12.2 Prerequisites
Purchase Order
1.12.3 Procedure
SAP R/3 menu
Logistics Materials Management Inventory Management
Goods Movement Goods Receipt For Purchase Order
PO Number Known
Transaction code
2.
MIGO
On the Goods Receipt Purchase Order screen, make the following entries:
Check for correct movement
type whenever doing goods
movement
Enter the Purchase Order No and Press Enter

1.0
3.
After pressing Enter system will fetch all the data from the Purchase Order as shown below:
Whichever material is in Blue those detail will be seen

in the Item detail
Version

1.0
4.
System defaults the balance quantity in PO, change the quantity to the received quantity:
Version

1.0
Enter the Storage Location in which the

material to be placed.
Version

1.0
Enter the Delivery Note

details of the vendor
Select Item Ok and Press Enter and the Excise tab

will appear both in Header and Item Level
Version

1.0
Field name
Description
R/ O/ C
User action and values
Goods
Receipt
Goods Receipt
Select from drop down list

for action
Purchase
Order
Purchase Order
input the PO number which

generated above
4500000277
Movement
Type
Version
Comment
101
Enter
Document
Date
Document Date
Enter document date
Delivery Note
in Header
Delivery Number from

Vendor
Vendor
Vendor
Defaulted from purchase

order
Posting Date
Posting date
Enter posting date
Bill of lading
Bill of lading
Enter bill of lading
Header text
Header text
Enter header text
Grayed out
Close Header Detail data to enlarge the Detail data.

Select Material tab at Detailed Data.
Material
Material tab
Defaulted from Purchase

Order
Grayed out
Enter the quantity you have

received from vendor. As a
default system will give
purchase order quantity
Enter the quantity as per
vendor delivery challan
Quantity
defaulted from
Purchase Order
Select Quantity tab in Detail data.

Qty in unit of
entry
Quantity in unit of
entry
Qty in
delivery note
Quantity in delivery
note
Select Where tab in Detail data.

Movement
type
Movement type
Defaulted from header

screen
Stock type
Stock type
Plant
Plant
Storage
location
Storage location
Goods
Recipient
Goods Recipient
Defaulted from material

master or purchase order
order
1000
order if entered
1010
Enter the name of person
who received goods

1.0
Unloading
point
Unloading point
Text
Text
Version
Enter the text if required
Select Purchase Order tab in Detail data.

Purchase
Order
Purchase Order
Defaulted from header data
Del.
completed
ind.
Delivery completion
indicator
Defaulted by system if PO
Qty = GR Qty
Grayed out
Grayed out
Select Partner tab in Detail data.

Vendor
Vendor name
For this material batch management is not active. Just for reference purpose the following
data is given.
Select Batch tab in Detail data.
This tab will come only if material is managed in batches.

Proceed with the following steps if material is batch managed only.
Enter batch number as date
Batch
Batch number
R
for batch managed
materials
Enter vendor batch number
Vendor batch Vendor batch
O
for reference
5. Select the Check box Item OK, after entering all the data.
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I
and Part II.
6. On the Excise Invoice tab at Header Data make the following entries.

1.0
Version
Select Appropriate Excise settings

While posting in Case of dealer only
System defaults
the Excise Duty
(BED & ECS)
and in case
Field name
Description
R/O/C
Comment
Capture &
Post Excise
invoice
Capture & Post Excise

Invoice on Excise
Action
Choose Capture & Post

Excise Invoice from drop
down list
Defaulted
Excise Group
Excise Group
Defaulted by the system
Excise
Invoice
Excise invoice
Enter the vendor Excise

Invoice number
For example:
D013
Excise Inv.
Date
Excise Invoice Date
Enter the excise invoice

date of vendor
BED
Basic Excise Duty

order
Grayed out
AED
Additional Excise Duty
Defaulted form purchase

order
Grayed out
SED
Special Excise Duty

order
Grayed out
NCCD
NCCD

order
Grayed out
ECS
Education Cess
Grayed out

1.0
order
MRP
Indicator
MRP Indicator
Tick the check box

Note: If the Base Price in
PO is the inclusive of
both the Material Cost
and Excise Value choose
the check box

Select Excise Item tab at Detailed Data (at the last).
Chapter ID
Chapter ID of material

No action required
EI Quantity
Excise Invoice
Quantity

from Goods Receipt
quantity
Base Value
Base value of material
BED
Basic Excise Duty
AED
NCCD
NCCD
SED
Special Excise Duty
ECS
Education Cess
Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor
Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All
other information is defaulted by the system. Hence, no action required by the user.
6. Choose Check at the top of screen.

7. Choose Post to post the document.
Version

1.0
Enter Excise Invoice No.

and Date vendor
Also See the account postings
Version

1.0
1.12.4 Result
Material document 5000000009 posted
1.12.5 Example
Version

1.0
Version
1.13 Logistics Invoice Verification

1.13.1 Use
In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their
content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The
system updates the data saved in the invoice documents in Materials Management and Financial
Accounting.
1.13.2 Procedure
SAP R/3 menu
Logistics Materials Management Logistics invoice
Verification Document Entry Enter Invoice
Transaction code
MIRO
2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to
go in side the transaction.
3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:
Enter Invoice Date
Change Defaulted V0 Tax

code and tick Calculate tax
tab
Enter the PO No.

1.0
If Part II entry is not done then system will not allow you to POST Invoice
Unless and until you post part2 system will not allow invoice verification
Enter the amount
Version

1.0
Version
Field name
Description
R/ O/ C
Transaction
Invoice
Select Invoice from drop

down list
Header Data
Header data of Invoice
Defaulted by system
Basic tab
Basic information tab
Select basic information tab

to give initial information
Invoice Date
Invoice Date
Enter the Vendor invoice

date
Reference
Invoice reference
Enter the vendor invoice

reference
For Example
USERMANUAL
Posting date
Posting Date
Enter the posting date of

document
System will give

current date as
default
Amount
Invoice Amount
Enter invoice gross amount

including taxes and duties
299,960.20
Amount
mentioned is
only an example
Currency
Enter the currency in which

the bill is presented by
vendor, if not entered by
user system will default the
document currency from
purchase order
INR
Check box calculate

tax
Check this tick box, system

will calculate tax amount
Tax code
Select the tax code from

drop down list
V1
Bus.place/se
ctn
Business place or
section code
Enter section code if Tax

deduction for source is
active for this vendor
Text
Text
Enter text if required for

reference
Payment tab
Payment tab
Select payment details tab
BaselineDt
Base line date for

payment
Enter the base line date for

payment
Pmnt terms
Payment terms
Payment terms of
document, if entered will be
defaulted from purchase
order
Due on
Payment due on
Will be calculated by
Calculate tax
Comment
Leave blank for

this process
Will be defaulted
if payment terms
entered in PO
Grayed out

1.0
Version
system
Discount
Cash discount
Enter if cash discount is

offered by vendor
Hide Header data for getting full screen of items if required.
Layout
Purchase order /
Schedule Agreement
Select Purchase order /

Schedule Agreement in the
reference document
category from drop down
list
Purchase order
number
Enter the first purchase

order number generated
above
Goods / service items
Select Goods / Service

items in indicator from drop
down list
Layout of invoice
verification
Select All information from

drop down list
Defaulted for
user
Defaulted
Choose Enter
4. Choose Enter to complete the document feeding part.
5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is
displayed. Beside that Balance of the document is displayed.
Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color.
6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row
of your screen.

1.0
Check Simulate Tab
7. Choose Save / Post, for posting the document.
Version

1.0
1.13.3 Result
Logistics Invoice verification document is posted.
1.13.4 Example
Document no. 5105600102 created
Version

1.0
Version
1.14 Returning Delivery

1.14.1 Use
A material has been received and it needs to be returned for various reasons (i.e. poor quality,
incomplete, damaged). The user can use this transaction to return the material to the vendor via the
original GR document.
This transaction itself is an independent transaction and it is not mandatory in J81 process. This Return
Delivery transaction is used only when material is rejected and needs to be returned to vendor.
If material is rejected by using QM process there is no need to this transaction. This transaction can be
used only without QM process materials.
This transaction is used basically when purchased material is needs to be sent back to vendor because of
various reasons like poor quality, incomplete items, damaged etc.
b)
Bore proceeding with return delivery to vendor please ensure that sufficient stock is available in storage
location and if batch managed in particular batch stocks also. Other wise system will give error message.
Before doing Return Delivery to vendor, check if you have already done Invoice Verification to that Goods
Receipt. If you have already done invoice verification please raise Credit Memo to the extent of Returns
quantity and then proceed with this process. Other wise system will give an error message.
How to create Credit Memo transaction is explained in the chapter mentioned 1.17 below.
1.14.2 Procedure
SAP R/3 menu
PO Number Known
Transaction code
MIGO
2. Select Return Delivery from drop down list to make Return Delivery to vendor.
3. On the Return Delivery Material Document screen, make the following entries:

1.0
Enter the quantity to be returned to vendor
Enter the appropriate Reason for Movement
Version

1.0
Version
Select Blocked Stock to

Return the rejected Material
Enter the appropriate Reason for Movement
Field name
Description
R/ O/ C
Return
Delivery
Return Delivery
You have already selected

in above step 2
Material
Document
Material Document
number

5000000189
Enter the material
document number which
you have made at the time
of Goods Receipt for
purchase order
Enter
Document
Date
Document Date
Enter document date
Delivery Note
in Header
Delivery Number. Will be

defaulted if you have
already entered in original
document
Posting Date
Posting date
Enter posting date
Comment

1.0
Bill of lading
Bill of lading
Enter bill of lading.
Header text
Header text
Enter header text
Via Delivery
Via Delivery
Tick the check box
Version

Material
Material tab

Order
Grayed out
Qty in unit of
entry
Quantity in unit of
entry
You can not

return more than
what you have in
stock
Qty in
delivery note
note
Enter the quantity you want

to return to vendor. As a
original Goods Receipt
quantity
5000
Enter the quantity
100000
Movement
type
Movement type

with 122 movement
Stock type
Stock type
Plant
Plant
Storage
location
Storage location
Goods
Recipient
Goods Recipient
Enter stock type from drop

down list
Defaulted from original
Goods Receipt
1000
Enter the store location
from which you want to
return to vendor
who received goods
Unloading
point
Unloading point
Reason for
Movement
Reason for Movement
Text
Text
Select
Quantity tab
in Detail data.
Select
Where tab in
Detail data.
Grayed out
Select from the drop down

list the reason for this
movement of material
0001

Purchase
Order
Purchase Order
Grayed out

1.0
Del.
completed
ind.
Delivery completion
indicator

order
Grayed out

Vendor
Vendor name

Enter batch number if
Batch
Batch number
R
externally maintained by
you or system will allocate
batch number
O
for reference
Enter the Goods Issue Indicator as IPD
Version

1.0
Version
Enter the Sub type as PR

for Vendor Returns
Field name
Description
R/ O/ C
Comment
Select
Create
Excise
Invoice
Select Create Excise

Invoice
Choose Create Excise

Invoice from drop down list
Select from drop

down list
Excise Group
Excise Group
Series Group
Excise Series group
Removal time
Removal time of
goods
System defaults current

time, change if required
BED
Basic Excise Duty

order
Grayed out
AED

order
Grayed out
SED
Special Excise Duty

order
Grayed out


1.0
Chapter ID

No action required
EI Quantity
Excise Invoice
Quantity

from return delivery
document
2
Base Value
BED
Basic Excise Duty
Goods Issue
Indicator
Goods Issue Indicator

IPD for this process
Version

1.0
Version
1.14.3 Result
Return Delivery document created
1.14.4 Example
Return Delivery Document No. 50000000011 created.
Note: Excise Invoice for Return delivery also will be generated in the back ground for this
transaction

1.0
1.15 Excise Invoice Other Movements

1.15.1 Procedure
1. Access the activity choosing one of the following navigation options:
SAP CIN R/3
Indirect taxes Sales / Outbound Movements Excise Invoice
User menu
For Other Movements Excise Invoice for Other Movements
Transaction Code
J1IS
2. On the Excise Invoice Other Movements Main Menu screen, make the following entries:
3. Choose Display Excise Invoice icon to start the transaction
Enter the Sub type as PR
for Vendor Returns
Version

1.0
Field name
Reference
Doc Number
Description
R/O/C
Document Number
Doc Year
Document year
Enter the return delivery

document number which
you have created in above
step
0000000126
Enter the year of document
created
Example: 2006
Enter
Version
Comment

1.0
1.15.2 Result
Excise invoice generated is displayed.
1.15.3 Example
Excise invoice 0000000014 generated and displayed.
Version

1.0
Version
1.16 Posting and Printing the Excise Invoice

1.16.1 Use
Excise Invoice has to be printed and sent along with the material. This is legal requirement in India.
Excise Invoice Document is generated and posted.
1.16.3 Procedure
SAP CIN R/3
User menu
Indirect taxes Sales / Outbound Movements Excise Invoice

For Other Movements Post and Print
Transaction code
J1IV
2. On the SAP screen, make the following entries:

3. If the document is not posted in step mentioned above, Choose Release to Accounting to post Financial
Accounting document.
This transaction is used to just printing of excise invoice.

4. Follow the steps mentioned below for taking print of Excise Invoice.
Field name
Description
R/ O/ C
Comment
Excise
internal
reference
Select internal excise invoice number from drop down list, you can find it with reference to the
Excise Invoice number generated in above step 1100400070 for example with the combination of
Excise Group 10 and vendor code 10006.
Document
No.
Document Number
Enter the Excise Invoice

Document Number
generated in above step
For example: 127
Document
year
Document Year
Enter the document year

2006

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Version
5. To take printout, select Goto from the top main menu and select Print Document from the list. Or Choose
Control + P to get the access of Excise Invoice Printing screen.
6. Choose Execute icon to get list of excise invoice ready to be printed.

1.0
7. From the list select the excise invoice number by choosing the check box left side of number.
8. To take printout on printer Choose the Printer icon or Choose F8.
Version

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Version
9. To display excise invoice on screen Choose Display icon or Choose F9.

10. System will give popup asking for pre-printed invoice serial number, Enter pre-printed excise invoice
number. In this process Choose 99 for testing purpose (since it is not expected to have pre-printed invoice
for testing purpose).
11. Select printer from the drop down list. Check box for Print Immediately and New spool request.
12. Choose Print Preview or Print icons to display on screen or to print on printer mentioned above.
13. If printer is connected system will print the document on printer.
1.16.4 Result
Excise Invoice is printed.

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Version
1.17 Credit Memo

1.17.1 Use
In this process of Logistics Invoice Verification a credit memo is generated on vendor. Please be
careful that during the total process after making logistics invoice verification you have made
return delivery to vendor. To recover that money you need to do this credit memo transaction.
Logistic Invoice Verification is already made
1.17.3 Procedure
SAP R/3 menu
Transaction code
MIRO

1.0
Select Credit Memo in

this tab
Put the Qty and Price to

be returned
Version

1.0
Version

1.0
Field name
Description
R/ O/ C
Version
Comment

1.0
Transaction
Credit memo
Select Credit memo from

drop down list
Header Data
Defaulted by system
Basic tab

Invoice Date
Invoice Date

date
Reference
Invoice reference

reference
Posting date
Posting Date

document
Amount
Credit memo Amount
Enter invoice (credit memo)

gross amount including
taxes and duties
Currency

purchase order
Check box calculate

tax

Tax code

drop down list
Bus.place/se
ctn
Business place or
section code

Text
Text

reference
Payment tab
Payment tab
BaselineDt
Base line date for

payment

payment
Pmnt terms
Payment terms
Payment terms of
order
Due on
Payment due on
system
Discount
Cash discount

offered by vendor
Calculate tax
Version
System will give

current date as
default
Leave blank for

this process
Will be defaulted
if payment terms
entered in PO
Grayed out

1.0
Layout
Purchase order /
Schedule Agreement

reference document
list
Purchase order
number
Enter the purchase order

number

down list
Layout of invoice
verification

drop down list
Version
Defaulted for
user
Defaulted
Choose Enter
of your screen.
7. Choose Save posting the document.

1.0
Version
1.17.4 Result
1.17.5 Example
1.18 Reversals / Cancellation of Invoice or Credit Memo

1.18.1 Use
Invoice documents in Invoice Verification are either invoices or credit memos. These documents can be
cancelled. There are two different cases:

1.0
Version
If an invoice is cancelled, the system automatically creates a credit memo.

If a credit memo is cancelled, the system automatically creates an invoice.
The system takes the amount and quantity for the credit memo or invoice from the invoice or credit
memo to be cancelled, thus avoiding any differences between the invoice and the credit memo or the
credit memo and the invoice.
An invoice document can only be cancelled if:
it was posted in Logistics Invoice Verification

It has not already been cancelled
It is not a cancellation document for another document
When you cancel documents in Logistics Invoice Verification, the document line items are not
automatically cleared in Financial Accounting. We recommend that you periodically clear such
items (using daily background jobs, for example).
1.18.3 Procedure
SAP R/3 menu
Verification Further Processing Cancel Invoice Document
Transaction code
MR8M
2. The initial screen for reversal appears.

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Version
3. In the fields Invoice doc. number and Fiscal year, enter the data for the invoice document you want to
cancel.
4. In the Reversal reason field, select the reason for cancelling the invoice. This allows you to differentiate
between different types of cancellations.

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Version
Enter the reversal

reason
5. You can display the document to check. Choose Display document to do this. You can look at the items of
the document to be cancelled. Return to the initial screen by choosing Back.

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6. Choose Invoice document and reverse or Press Ctrl+S or
Version

1.0
Version

1.0
1.18.4 Result
Document Reversed and Clear FI Documents Manually.
1.18.5 Example
Document Reversed with no. 5105600114.
Version

1.0
Version
1.19 Reversals / Cancellation of Goods Receipt (GR)

1.19.1 Use
When any data entered incorrect during GR posting it has to be reversed. To do the cancellation of GR,
all the follow on documents should be reversed.
A GR can only be cancelled if:
Invoice Verification posted if any should be reversed.
1.19.3 Procedure
SAP R/3 menu
PO Number Known
Transaction code
MIGO

1.0
2. Choose Cancellation and enter the respective Material Document No. (GR No.)
Version

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Version
3. Press enter so that all the data will be captured automatically by the system. If any comment is there to
mention it can be mentioned in the Head Text and Text which is available at the Item level.

1.0
4. Press Enter to continue and check all the details
You will get Excise Invoice tab at Header Data and Item Details.
Version

1.0
7. Press Ctrl+S or
to post the document
Version

1.0
1.19.4 Result
Material document posted, please note the document number.
1.19.5 Example
Version

1.0
Version
1.20 Reversing CENVAT Postings

1.20.1 Purpose
When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.
Material Document (GR) should be reversed.
1.20.3 Procedure
SAP R/3 menu
Country India User Menu Indirect Taxes Procurement
Excise Invoice Incoming Excise Invoice Central Processing
Capture / Change / Cancel / Display / Post
Transaction code
J1IEX

1.0
2. Select Post CENVAT.
3. Select Vendor Excise Invoice.
4. Enter the excise invoice number.
5. Press Enter to continue
Version

1.0
6. Choose Simulate CENVAT

7. A dialog box appears, showing which postings the system will make to reverse the CENVAT.
Version

1.0
8. Choose Post CENVAT.
Version

1.0
1.20.4 Result
CENVAT Posting Reversed.
1.20.5 Example
CENVAT Posting Reversed with document no. 0000000008.
Version

1.0
Version
1.21 Canceling Excise Invoices

1.21.1 Purpose
When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.
Material Document (GR) should be reversed.

CENVAT Posting should be Reversed.
1.21.3 Procedure
SAP R/3 menu
Country India User Menu Indirect Taxes Procurement
Excise Invoice Incoming Excise Invoice Central Processing
Capture / Change / Cancel / Display / Post
Transaction code
J1IEX
2. Select Cancel.
3. Select Vendor Excise Invoice.

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4. Enter the excise invoice number.
Version

1.0
5. Enter the Rejection Code.
Version

1.0
Enter the Rejection Code
6. Save the excise invoice.
Version

1.0
7. Press Yes to Cancel the Excise Invoice.
Version

1.0
1.21.4 Result
Excise Invoice has been successfully cancelled.
1.21.5 Example
Excise Invoice 0000000008 / 2008 ( 1234 ) has been successfully cancelled.
Version

1.0
Version
Procurement of Imported Materials Business Process Procedure

2.1 Procurement of Imported Materials
2.1.1 Purpose
This process Procurement of Imported Materials shows you how to handle the Countervailing duty
(CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs duties, such as
basic customs duty or special customs duty, you can credit CVD paid on imports to your CENVAT
account.
2.1.2 Prerequisites
The following scenario specific master data must be created for operation of this building block and
subsequent dependent building blocks.
Material Master record
Vendor Master record
CIN Master Data
(Refer User Manual Procurement of Stock Materials (Domestic)

Ensure that GR based IV is not selected in Purchasing Data.

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Version
2.2 Creating Purchase Order

2.2.1 Use
A purchase order is a legal document used to record an individual purchase with the vendor. It
also provides the vendor with a reference document to link to goods receipt and invoice
verification processes. The purchase order is a commitment to a vendor for a given material, in
a specified quantity at a predetermined price and delivery date.
2.2.2 Prerequisites
Before starting the process, please ensure the following information:

Commissioner of Customs is created as domestic vendor, for example: vendor code
600000 - RBI Commissioner in this process.
In master record of main imported vendor GR-based invoice verification tick should not be
there on Purchasing Data screen of vendor master. And Schema group, Vendor is filled
with schema group ZI. For example vendor code 200000 in this process.
These are basic master data changes with respect to this process only.
For all purchase order a release procedure is applied.
2.2.3 Procedure
SAP R/3 menu
ME21N
Transaction code
6. On the Create Purchase Order screen, make the following entries:

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Version
Put Doc Type as Import
Dont Put Tick in GR Based
Mention Tax code as V0
7. For Basic Customs Duty(JCDB),CVD(JCV1),Addition Customs Duty(JADC),E-cess on CVD(JECV)

E-Cess (JEDB)

1.0
Enter the Customs Duties in

respective Condition type fields
Version

1.0
Version
Select Each Condition Type related to

Customs and click this Details Button
.
8. To change the vendor for condition type select JCDB condition type and Choose on Condition detail icon
located at left bottom side of your screen.
9. System will take to new Item Conditions Detail: screen. In this screen at right bottom of screen you can
find the vendor code 60000 the main imported vendor is defaulted here. You have to replace this vendor

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Version
code with respective vendors and Choose enter and green arrow to come back (F3) to condition tab of
purchase order.

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Change DS200 to DS250(appropriate vendor)

for each condition types
10. Repeat the same for other condition types such as JCV1, JECV, JADC, and JEDB etc.
11. Purchase Order may be posted by Choosing on the Save icon.
Version

1.0
2.2.4
Version
Result
A message will be displayed stating that the purchase order was saved, with the purchase order
number, please note the purchase order number.
2.2.5
Example

1.0
2.3 Release Purchase Order

2.3.1 Procedure
SAP R/3 menu

Order Release Individual Release
Transaction code
ME29N
Click Other Purchase Order

Enter PO No
Version

1.0
Version

1.0
Version

1.0
2.4 Message Output

2.4.1
Use
2.4.2
Procedure

SAP R/3 menu
ME9F
Transaction code
10. Choose
to Execute.
Version

1.0

Version

1.0
Version
2.5 CAPTURING BILL OF ENTRY

2.5.1
Use
Accounting.
2.5.2
Procedure

SAP R/3 menu
Transaction code
MIRO
Choose Planned Delivery Costs

1.0
Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO.
Version

1.0
Version
Field name
Description
R/ O/ C
Transaction
Invoice

down list
Header Data
Defaulted by system
Basic tab

Invoice Date
Invoice Date

date
Reference
Invoice reference

reference
For Example
USERMANUAL
Posting date
Posting Date

document
System will give

current date as
default
Amount
Invoice Amount

39.80
Amount
mentioned is
only an example
Currency

purchase order
USD
Check box calculate

tax

Tax code

drop down list
V0
Bus.place/se
ctn
Business place or
section code

Text
Text

reference
Payment tab
Payment tab
BaselineDt
Base line date for

payment

payment
Pmnt terms
Payment terms
Payment terms of
order
Due on
Payment due on
Calculate tax
Comment
Leave blank for

this process
Will be defaulted
if payment terms
entered in PO
Grayed out

1.0
Version
system
Discount
Layout
Cash discount

offered by vendor
Purchase order /
Schedule Agreement

reference document
list
Purchase order
number

above
Planned Delivery
Costs
Select Planned Delivery

Costs in indicator from
drop down list
Layout of invoice
verification

drop down list
Defaulted for
user
Choose Enter

of your screen.

1.0
Version
13. Choose Display Currency which will lead to small pop-up window having the company code currency and
Document Currency, position the cursor on the INR to convert to Document Currency and press the details
button.

1.0
Version

1.0
Version

1.0
2.5.3
Result
2.5.4
Example
Document no. 5105600121created
Version

1.0
2.6
Version
Goods Receipt for Imported Purchase Order
2.6.1
Use
2.6.2
Procedure

SAP R/3 menu
PO Number Known
MIGO
Transaction code
2. On the Goods Receipt Purchase Order screen, make the following entries:
Field name
Description
R/ O/ C
Goods
Receipt
Goods Receipt

for action
Inbound
Delivery
Purchase Order
Enter the Purchase Order

No.generated above
3100000000
Movement
Type
Comment
101
Enter
Since this is imported purchase order and you have already done invoice verification for
planned delivery cost. System will give a new popup Excise Invoice item number screen (which
is not there in normal other process) asking for Commercial invoice number and year.
Please enter the invoice verification document number which you have done in above 5105600792
and year 2006.

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Version

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Version
3. Choose Enter where a small pop-up window will prompt to enter the Commercial Invoice No. and Year (i.e.,
the Invoice Verification posted for Bill of Entry)
Enter the No generated for the posting of Bill of Entry
4. After pressing Enter system will fetch all the data from the Purchase Order as shown below:

1.0

in the Item detail
5. System defaults the balance quantity in Purchase Order.
Version

1.0
Version

1.0
Enter the storage

location
Version

1.0
Version
Select Item Ok and Press Enter and the Excise tab

will appear both in Header and Item Level
Field name
Description
R/ O/ C
Goods
Receipt
Goods Receipt

for action
Inbound
Delivery
Purchase Order
input the Purchase Order

number which generated
above
4500000059
Movement
Type
Comment
101
Enter
Document
Date
Document Date
Enter document date
Delivery Note
in Header

Vendor
Vendor
Vendor

order
Posting Date
Posting date
Enter posting date
Bill of lading
Bill of lading
Grayed out

1.0
Header text
Header text
Version
Enter header text

Material
Material tab
Defaulted from Inbound

Delivery
Grayed out

Quantity
defaulted from
Purchase Order

Qty in unit of
entry
Quantity in unit of
entry
Qty in
delivery note
note

Movement
type
Movement type

screen
Stock type
Stock type
Plant
Plant
Storage
location
Storage location
Goods
Recipient
Goods Recipient

order
1000
Defaulted from Inbound
delivery if entered
1010
who received goods
Unloading
point
Unloading point
Text
Text

Purchase
Order
Purchase Order
Del.
completed
ind.
Delivery completion
indicator
Qty = GR Qty
Grayed out
Grayed out

Vendor
Vendor name
data is given.

1.0
Version

Batch
Batch number
R
for batch managed
materials
O
for reference
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting
Part I and Part II.
8. On the Excise Invoice tab at Header Data make the following entries.

1.0
Version
Field name
Description
R/O/C
Comment
Capture &
Post Excise
invoice
Capture & Post Excise

Invoice on Excise
Action
Choose Capture & Post

Excise Invoice from drop
down list
Defaulted
Excise Group
Excise Group
Excise
Invoice
Excise invoice
Enter the vendor Excise

Invoice number
For example:
4500000059
Excise Inv.
Date
Excise Invoice Date
Enter the excise invoice

date of vendor
BED
Basic Excise Duty

order
Grayed out
AED

order
Grayed out
SED
Special Excise Duty

order
Grayed out
NCCD
NCCD

order
Grayed out
ECS
Education Cess

order
Grayed out

Chapter ID

No action required
EI Quantity
Excise Invoice
Quantity

from Goods Receipt
quantity
Base Value
BED
Basic Excise Duty
AED
NCCD
NCCD
SED
Special Excise Duty
ECS
Education Cess
Please cross check the BED, ECS (CVD in this case) amount of item as per the bill of lading,
legally you can not avail more than what mentioned in Vendor Excise Invoice.
In case of imported purchase order in normal case system will default CVD and ECess (invoice
verification made on commissioner of customs) amount as BED and ECS i.e. CENVAT amount.

1.0

Version

1.0
2.6.3
Result
Material document posted.
2.6.4
Example

You can see account posting here
Version

1.0
2.7
Version
Logistics Invoice Verification for the Materials
2.7.1
Use
Accounting.
2.7.2
Procedure

SAP R/3 menu
Transaction code
MIRO

1.0
Version
Select Goods
/Service Items
Field name
Description
R/ O/ C
Transaction
Invoice

down list
Header Data
Defaulted by system
Basic tab

Invoice Date
Invoice Date

date
Reference
Invoice reference

reference
For Example
1000
Posting date
Posting Date

document
Comment
System will give

current date as
default

1.0
Amount
Invoice Amount

100
Currency

purchase order
USD
Check box calculate

tax

Tax code

drop down list
V0
Bus.place/se
ctn
Business place or
section code

Text
Text

reference
Payment tab
Payment tab
BaselineDt
Base line date for

payment

payment
Pmnt terms
Payment terms
Payment terms of
order
Due on
Payment due on
system
Discount
Cash discount

offered by vendor
Calculate tax
Version
Amount
mentioned is
only an example
Leave blank for

this process
Will be defaulted
if payment terms
entered in PO
Grayed out

Purchase order /
Schedule Agreement

reference document
list
Purchase order
number

above

down list
Defaulted for
user
Defaulted

1.0
Layout
Layout of invoice
verification
Version

drop down list
Choose Enter

of your screen.
Choose Display Currency to change in INR

1.0
Version
7. Choose Display Currency which will lead to small pop-up window having the company code currency and
Document Currency, position the cursor on the INR to convert to Document Currency and press the details
button.

1.0
Version

1.0
2.7.3
Result
2.7.4
Example
Version

1.0
Version
3 Procurement of Subcontracting Materials Business Process Procedure

3.1 Procurement of Subcontracting Materials
3.1.1 Purpose
In Indian subcontracting process when you issue materials to a subcontractor, you need to keep
track of what materials you have issued and when they have to be returned by subcontractor. The
reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you
send materials to a subcontractor for processing, you are not required to pay any excise duty, even
though the materials have left your premises. However, if the materials have not been returned to
you within 180 days specified by the law, you will have to reverse any excise credit that you posted
when you have purchased the materials. When you send material out of your factory premises you
need to send with 57F4 Challan. In this process you are going to do the same.
3.1.2 Prerequisites
Material Master record (Refer User Manual Procurement of Stock Materials (Domestic))
Vendor Master record (Refer User Manual Procurement of Stock Materials (Domestic))
Purchasing Info Record (Optional)

Ensure that Sub-Contracting as Info Category.
(Refer User Manual Procurement of Stock Materials (Domestic))
CIN Master Data (Refer User Manual Procurement of Stock Materials (Domestic))
o
o
Chapter IDs
Material ID and chapter ID combination (Ensure Sub-Contract check box is selected for
the Materials that provided to vendor)

o
o
o
o
o
CENVAT Determination
Vendor Excise Details
Excise Indicator for Plants
Excise Indicator for Plant and Vendor
Excise Tax Rates

1.0
Version
3.2 Creation of Subcontracting Purchase Order

3.2.1 Use
provides the vendor with a reference document to link to goods receipt and invoice verification
processes. The purchase order is a commitment to a vendor for a given subcontracting activity, in a
3.2.2 Prerequisites
Components stock should be available for providing to subcontracting vendor.
3.2.3 Procedure
SAP R/3 menu
ME21N
Transaction code

1.0
2. On the Create Purchase Order screen, make the following entries:

Select ZSC Document Type for
Subcontracting Order
Enter L as Item Category for

Sub-Contracting Procurement
Click here to enter Bill of components

that are supplying to Subcontractor
Version

1.0
Version
After filling the above data, choose on Material Data tab at item Details screen. There you will find a new icon
called Components, you have to choose on that icon to give the components list which you are likely to transfer
post to vendors and give the flowing inputs.
3. Click on the Components or Explode BOM and enter the materials that had to be sent:
4. Choose on Green Arrow or F3 to come back to main purchase order screen.

5. Ensure appropriate tax code have been entered for both the line items (V0 Nil Tax for Sub-Contracting
Item)

1.0
Ensure Taxcode V0 for Sub-Contracting Item and

click on the Taxes to view the tax calculation
Version

1.0
Version
6. The Purchase Order may be posted by choosing on the Save icon.
3.2.4 Result
A message will be displayed stating that the purchase order was saved, with the purchase order
number.
3.2.5 Example
Standard PO created under the number 2400000000

1.0
Version
3.3 Message Output

3.3.1 Use
3.3.2 Procedure
SAP R/3 menu
ME9F
Transaction code
3. Choose
to Execute.

1.0

Version

1.0
Version
3.4 Transfer of Components to Subcontractor

3.4.1 Use
The Nature of subcontracting purchase order is that company will provide components to subcontractor.
This process describes how to transfer post materials to subcontractor.
3.4.2 Prerequisites
Sufficient stocks of components should be available for making transfer posting.
3.4.3 Procedure
SAP R/3 menu
Goods Movement Transfer posting
MB1B
Transaction code
2. On the Enter Transfer Posting: Initial Screen, make the following entries:
Field name
Document
Date
Posting Date
Movement
Type
Plant
Storage
Location
Description
Document Date
R/ O/ C
R

Input date
Posting Date
Movement Type
R
R
Input date
541
Plant
Storage location
R
R
1000
1010
Press To Purchase Order
Comment

1.0
Version
3.
Choose on To Purchase Order icon on the top of the screen or choose F9 on key board. System will
give new popup screen asking for purchase order number. Give the 45000000## purchase order
number and choose enter to continue.
4.
5.
System will display components from purchase order with quantities

Choose only the Material that you are sending and enter the Storage Location from which it has to
be issued.

1.0
6.
Choose on Adopt + Details icon or F6.
7.
8.
Choose Enter if required the quantity of components can be changed.

Choose Save icon or Control + S to post the document.
3.4.4 Result
A message will be displayed stating that the document posted.
Version

1.0
Version
3.4.5 Example
Material document 4900000039 posted.
3.5 Creation of Subcontracting Challan

3.5.1 Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.5.2 Prerequisites
Select the Sub-Contracting Material in Material and Chapter ID Combination of the Excise
Master (J1ID) for the sending Material.
Ensure that the details of the receiving Material maintained in the Excise Master (J1ID).
CENVAT Determination of the Excise Master (J1ID) Maintained for the both sending and
receiving Material.
Ensure that the Assessable value for the sending material is maintained in the Excise Master
(J1ID)
3.5.3 Procedure
SAP User menu
Indirect Taxes Procurement
CIN Menu
Subcontracting Challans Create
Transaction code
J1IF01
Subcontracting

1.0
Version
2. On the Subcontracting Challan - Create, make the following entries:

Field name
Material Doc.
Mat. Doc. Year
Excise Group
Series Group
3.
Description
Material document number
Material document year
Excise Group
Series Group
R/ O/ C
R
R
R
R

4900000039
2006
10
W3
Comment
Appropriate
Appropriate
Appropriate
Choose Enter to continue, system will take new Subcontracting Challan Create screen, make the
following entries:
Field name
Select Posting tab
Posting date & time
Description
R/ O/ C
Print Immediately
Posting date and

time
Print Immediately
Input date and time of

material removal
Check this box if you want
challan printout immediately.
Select Overview Tab

Preprinted no
Preprinted number
Enter pre-printed number if

you have
Comment

1.0
4.
Save challan by choosing on Save icon or Control + S.
3.5.4 Result
A message will be displayed stating that the document posted.
3.5.5 Example
Subcontracting Challan 000010001 2008; Series Group B1 successfully created.
Version

1.0
3.6
Version
Printing of Subcontracting Challan
3.6.1 Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.6.2 Procedure
SAP User menu
Indirect Taxes Procurement
CIN Menu
Subcontracting Challans Change
Transaction code
J1IF11
Subcontracting

1.0
Click the Print Immediately Tab
Press Save Icon
Version

1.0
Click the Print Immediately Tab
Press Enter
Version

1.0
Click the Icon to be the Print Preview of the Challan
Execute the Print to Get Print Out.
Version

1.0
Version

3.7.1 Use
Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant
3.7.2 Prerequisites
Purchase Order
3.7.3 Procedure
SAP R/3 menu
PO Number Known
Transaction code
MIGO
10. On the Goods Receipt Purchase Order screen, make the following entries:
Enter the Purchase Order No and Press Enter
11. After pressing Enter system will fetch all the data from the Purchase Order as shown below:

1.0
Version
12. First do the posting for the Sub-Contracting Material.

in the Item detail
13. System defaults the balance quantity in PO, change the quantity to the received quantity if it is different from
defaulted quantity:

1.0
14. Ensure that the Movement Type is 101.
Version

1.0
Version

1.0
Select Item Ok
and
Version

1.0
Field name
Description
R/ O/ C
Goods
Receipt
Goods Receipt

for action
Purchase
Order
Purchase Order
input the PO number which

generated above
4500000054
Movement
Type
Version
Comment
101
Enter
Document
Date
Document Date
Enter document date
Delivery Note
in Header

Vendor
Vendor
Vendor

order
Posting Date
Posting date
Enter posting date
Bill of lading
Bill of lading
Header text
Header text
Enter header text
Grayed out

1.0
Version

Material
Material tab

Order
Grayed out

Quantity
defaulted from
Purchase Order

Qty in unit of
entry
Quantity in unit of
entry
Qty in
delivery note
note

Movement
type
Movement type

screen
Stock type
Stock type
Plant
Plant
Goods
Recipient
Goods Recipient

order
1000
who received goods
Unloading
point
Unloading point
Text
Text

Purchase
Order
Purchase Order
Del.
completed
ind.
Delivery completion
indicator
Qty = GR Qty
Grayed out
Grayed out

Vendor
Vendor name
data is given.


1.0
Batch
Batch number
Vendor batch
Vendor batch

for batch managed
materials
for reference
NCCD
NCCD
SED
Special Excise Duty
ECS
Education Cess

Version

1.0
3.7.4 Result
Material document posted.
3.7.5 Example
Material document 5000000028 posted, You can see accounting Entries
Version

1.0
Version
3.8 Reconciling Subcontracting Challan

3.8.1 Use
After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.
3.8.2 Procedure
SAP User menu
Indirect Taxes Procurement Subcontracting
CIN Menu
Subcontracting Challans Reconcile Quantity
Transaction code
J1IFQ
As we have refered challan During Goods receipt here we are getting following message, If you have not refred
challan during Gr following is the Process

1.0
Version
2. On the Quantity reconciliation for Subcontracting Challan screen, make the following entriees.
Field name
Description
R/ O/ C
User action
values
Material Document
Goods Receipt
number
5000000344
Mat. Doc. Year
Year of document
2006
Year
Subcontacting challan year
2006
Chalan No
Subcontacting challan No
000000031
document
and
Comment
Choose on Reconcile icon or F8 to go reconciliation screen.

3. System will take you to new Quantity reconciliation for Subcontracting Challans.
4. Here on this you can see system display items from Goods Receipt at top and items from challan at bottom
of screen.
5. Here you need to allocate the components consumed in GR stage are reconciled with challan to do this,
choose on Allocate based on FIFO icon in the middle of screen with calculator icon.
6. Or you can do allocation by entering manually also in respective line items at bottom, where Assigned
quantity filed is located in white color.

1.0
7. After assignment save the document by choosing Save icon or choose Control + S
3.8.3 Result
Material document was successfully reconciled.
3.8.4 Example
Material Document 5000000028, 2008 was successfully reconciled.
Version

1.0
Version
3.9 Completing/Reversal/Re-credit Subcontracting Challan

3.9.1 Use
This transaction is basically used to complete the challan if you have reconciled as stated above step.
There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this
case also same transaction is used for reversal of challan or re-crediting the amount.
3.9.2 Procedure
SAP User menu
Indirect Taxes Procurement Subcontracting
CIN Menu
Subcontracting Challans Complete/Reverse/Recredit
J1IF13
Transaction code
2. On the Subcontracting Challan Complete/Reverse/Recredit screen, make the following entries:

Field name
Description
R/ O/ C
Chalan No
Subcontacting challan No
0000000031
Excise year
Document year
2006
3. Choose enter to go to inside the challan document.
4. Select the radio button Complete Challan and.

5. Save the document by choosing Save icon or choose Control + S.
Comment

1.0
Version
3.9.3 Result
Subcontracting challan successfully completed.
3.9.4 Example
Subcontracting Challan 0000001 2008; Series Group B1 successfully completed.
3.10 Logistics Invoice Verification for Subcontracting Material

3.10.1 Use
Accounting.
3.10.2 Procedure
SAP R/3 menu
Transaction code
MIRO
4. Choose only the Subcontracting material to post the document:

1.0
Version
Field name
Description
R/ O/ C
Transaction
Invoice

down list
Header Data
Defaulted by system
Basic tab

Invoice Date
Invoice Date

date
Reference
Invoice reference

reference
For Example
USERMANUAL
Posting date
Posting Date

document
System will give

current date as
default
Amount
Invoice Amount

19.50
Amount
mentioned is
only an example
Currency

Comment

1.0
Version

purchase order
INR
Calculate tax
Check box calculate

tax

Tax code

drop down list
V0
Bus.place/se
ctn
Business place or
section code

Text
Text

reference
Payment tab
Payment tab
BaselineDt
Base line date for

payment

payment
Pmnt terms
Payment terms
Payment terms of
order
Due on
Payment due on
system
Discount
Cash discount

offered by vendor
Leave blank for

this process
Will be defaulted
if payment terms
entered in PO
Grayed out
Layout
Purchase order /
Schedule Agreement

reference document
list
Purchase order
number

above

down list
Layout of invoice
verification

drop down list
Choose Enter
Defaulted for
user
Defaulted

1.0
Version
of your screen.

1.0
3.10.3 Result
3.10.4 Example
Document no. 5105600132 created, Account postings are following
Version

1.0
Version
5. Procurement of External Services: Business Process Procedure

5.1 Procurement of External Services Procurement Process
5.1.1 Purpose
External Services Management is an application component within Materials Management Module. It
covers from creation of service master, bid invitation, order placements process, entering and
accepting services and finally invoice verification process.
5.1.2 Prerequisites
Service Master record

o
AMC Charges for Testing Machine
Vendor Master record
Refer the document of Procurement of Stock Materials

1.0
Version
5.2 Creating Service Master

5.2.1 Use
The service master record counts as part of the master data within External Services Management
and serves as a source of data for you to draw upon when creating services. This enables you to
save time and reduces the frequency of errors, since you need only enter the complete service
descriptions in the service master record once.
5.2.2 Procedure
SAP R/3 Menu
Logistics Materials Management Service Master Service
Service Master
Transaction code
AC03
9. On the Display Service screen, make the following entries:
10. Click on Create new service icon or press F5 (white paper icon) to create new service master.
11. Then you will get Create Service Master Record screen, make the following entries:
No Need to Enter as Internal No will be

generated and Enter the Short Text only

Enter the Service Category and
Base Unit of Measure accordingly

1.0
Version
Field name
Description
R/ O/ C
Comment
Service
Number
Service master record

(internally assigned)
You can see %_1 will be

displayed on this field,
leave it as blank. System
will assign internal service
number
Leave blank
Service description
Service
Category
Service Category
Base unit of
Measurement
Base unit of
Measurement
Annual Mait. Contract for

Input the value
Testing
M/C.
Blocking of service procurement can be
done Service:ALL
by entering appropriately
here Select from drop
complete
down
AU for Activity Unit
Basic Data
Conversion can be maintained here
Mat/srv.grp
Material Group or
Service Group
91
Division
Division
Valuation
class
Valuation class
3200
This is free input

place. You can fully
input the service
specification.
Annual Maintenance Contract

for Testing Machine.
Long Text
12. Press enter to complete the entries.

13. Press Save icon or Control + S to save the entries.
5.2.3 Result
Service Master Record is created.

1.0
Version
5.3 Creating Purchase Requisition

5.3.1
Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant
Maintenance Purchase Requisition is generated automatically from Plant maintenance Order. In this
process Purchase Requisition is created against Quantity Contract created in above step 1.1.4 with
exact delivery / requirement date.
5.3.2
Procedure

SAP R/3 menu

Requisition Create
Transaction code
ME51N
3. On the Create Purchase Requisition screen, make the following entries:

1.0
Enter the A/c Assignment Category

as K for Cost center and Item
Category D for Services
Enter the
Short Text
Enter the appropriate

Material Group Plant and
Purchasing Group
When Item Category D is enterer one new

tab in the Item Detail Services is generated
to enter the Service No.
Version

1.0
Version
Enter the Service No, Quantity and Gross

Price and press Enter
4. After pressing enter system shows a small pop-up window where respective G/L Account and Cost Center
to be entered.

1.0
Enter the appropriate G/L

Account and Cost Center
Version

1.0
Enter the Desired Vendor if Vendor is known to

the person who is creating PR
5. Press
or Ctrl+S to Save the Purchase Requisition.
Version

1.0
5.3.3
Result
Purchase Requisition is created,
5.3.4
Example
Purchase requisition number 0010000180 created.
Version

1.0
Version
5.4 Assign and Process Purchase Requisition

5.4.1
Use
c) This section explains the functions provided by the SAP System for converting requisitions into
external purchasing documents (purchase orders, contract release orders, scheduling agreement
delivery schedules, RFQs), and the processing options thereby available to you:
Assigning means defining the desired source for each purchase requisition item
o Further processing involves generating lists of requisitions that have been assigned or flagged as
outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery
schedules under scheduling agreements.
5.4.2
Procedure

SAP R/3 menu
Transaction code

Requisition Follow-On Functions Assign and Process
ME57
7. The assignment of sources to and further processing of purchase requisitions are two distinct functions.
You can choose whether you wish to perform the functions in two separate steps or in just one.

1.0
8. Below are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate

Purchasing Group
2. Enter the Scope of List as B1 for
PR generated through MRP Run
and A for remaining PR
3. Enter the appropriate Plant
4. Enter the Item category as D
1. Select the Assigned Purchase

Requisition (For Spares PR
normally the End User may have
entered the Vendor in the PR)
2. Select the appropriate Check
boxes for Processing the PR
9. Press
or F8 to enter into the next screen.
1. If Source List is
available click this button
For Manual Assignment of

source click this Icon
Version

1.0
1. Select the check boxes

required PR which are to
be converted in to Pos.
Version

1.0
Version
Click SAVE Icon.

Source has been assigned for this Requisition
5.4.3 Result
The source is assigned to PR and can be processed for PO.
5.5. For Releasing Purchase Requisition Refer User Manual for Stock Procurement
5.6 Purchase Order

5.6.1 Use

1.0
Version
Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
5.6.2 Prerequisites
1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with
holding tax please ensures that necessary entries in vendor master is updated.
5.6.3 Procedure
SAP R/3 menu
ME21N
Transaction code
7. If you want create purchase order with reference to the purchase requisition, on item details screen enter
the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all
the data from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt
Select this check box if Invoice

Verification is done after
Service Entry Sheet

the Tax Calculation

1.0
Version
Condition Record for JSVD and JEC4 should be Maintained in FV11 with Material Group/Plant
Combination.
Select
Invoice
tab
Tax code
Enter Tax code
S1
Select S1 tax
code
Since the procurement services covered with service tax of 10% (for example only, check for
legal requirement), it is advised to select V1 tax code.
Jurisdiction
Jurisdiction code
R
Will be defaulted from plant

1.0
code
Version
parameters
Depending on for which plant you are procuring the services system will select Jurisdiction
code. In system the following Jurisdiction codes were configured IN00 Central
GR-based IV Goods Receipt based
O
Tick this check box
invoice verification
Srv.-based IV Service based invoice
O
Tick this check box
If Invoice
verification
Verification will
be done after the
Service Entry
sheet
8. The Purchase Order may be posted by Choosing on the Save button or Choose Control + S for saving.
5.6.4 Result
Purchase Order is created.

1.0
5.6.5 Example
5.7 For Releasing Purchase Order Refer User Manual of Stock Procurement
5.8 Message Output
5.8.1
Use
5.8.2
Procedure
SAP R/3 menu
Transaction code
ME9F
Version

1.0
16. Choose
to Execute.
Version

1.0

5.9 Creation and Acceptance of Service Entry Sheet

5.9.1
Use
Version

1.0
Version
The services actually performed (work actually done) by a service vendor are recorded in a Service
Entry Sheet with reference to the purchase order.
5.9.2
Procedure

SAP R/3 Menu
Logistics Materials Management Service Entry Sheet
Maintain
Transaction code
ML81N
2. On the Service Entry Sheet screen, make the following entries:
3. Click on Other Purch. Orders icon or Shift + F5, system will popup new screen.

1.0
Version
4. In this screen against Purchase Order field give the purchase order number which is created in above steps
and press enter to continue.

1.0
Version
5. You will get new Service Entry Against Purchase Order

6. Here on this screen click Create Entry Sheet (white paper icon) or Shift + F1 to get new entry sheet.
7. System allocates service entry sheet number internally and you will get the number on screen.

1.0
Press Service Selection and a

dialog box appears
8. System will give a popup screen with purchase order number on that, press enter to continue.
Version

1.0
9. Select the line item 10 and click on Services or F9 (Adopt services) icon on top of screen.
Version

1.0
10. For example the following screen name will come:
Version

1.0
Version
11. You can observe the system copied the service line item from purchase order with open item quantity i.e. 1
AU.
12. Change the quantity as per your requirement

1.0
Version

1.0
Version
13. With this the basic information of service entry sheet is fully completed. As per the requirement you can fill
other fields also if required.
14. To accept the service click on Accept icon or Control + F1 (Green flag icon).
Press Green Colour Flag Button
15. You can see the traffic light is become Yellow color. That means it is ready to save the service entry sheet.

1.0
Version
The colour changes from red to

yellow and Press Save
16. Press
or Ctrl+S to save the document.

1.0
5.9.3
Result
A message indicates that the service entry sheet saved, acceptance document posted.
5.9.4
Example
Service entry sheet saved, acceptance document 5000000134 posted.
Version

1.0
Version

5.10.1
Use
Accounting.
5.10.2
Procedure

SAP R/3 menu
Transaction code
MIRO

1.0
Version
Field name
Description
R/ O/ C
Transaction
Invoice

down list
Header Data
Defaulted by system
Basic tab

Invoice Date
Invoice Date

date
Reference
Invoice reference

reference
For Example
USERMANUAL
Posting date
Posting Date

document
System will give

current date as
default
Amount
Invoice Amount
Amount
Comment

1.0
1122.40
Currency

purchase order
INR
Check box calculate

tax

Tax code

drop down list
S1
Bus.place/se
ctn
Business place or
section code

Text
Text

reference
Payment tab
Payment tab
BaselineDt
Base line date for

payment

payment
Pmnt terms
Payment terms
Payment terms of
order
Due on
Payment due on
system
Discount
Cash discount

offered by vendor
Calculate tax
Version
mentioned is
only an example
Leave blank for

this process
Will be defaulted
if payment terms
entered in PO
Grayed out
Layout
Purchase order /
Schedule Agreement

reference document
list
Purchase order
number

above

down list
Layout of invoice
Defaulted for
user
Defaulted

1.0
verification
Version
drop down list

Choose Enter

of your screen.

1.0
5.10.3
Result
5.10.4
Example
Version

1.0
Version
6 Asset Procurement Business Process Procedure.

6.1 Purchase Order
6.1.1 Use
Prerequisites
1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with holding tax
please ensures that necessary entries in vendor master is updated.
2. Asset Management Module Active.
6.1.2 Procedure
SAP R/3 menu
ME21N
Transaction code

1.0
Enter Account
Assignment A
and Short text of
the Assest
Enter PO Qty,Net
Price,Currency,
Material Group
Enter Code V1
Version

1.0
1. Enter the respective Asset No.
Enter the Asset

No.
Version

1.0
Version
3. Click Taxes Tab to View the Tax Details

IIN FV11 maintain Condition record for respective Tax Conditions with Material Group/Plant combination.
3.Click Save Button to Save the PO.

1.0
6.1.3 Result
Purchase Order Created with No. 230000000.
6.2 Release of Purchase Order

6.2.1 Procedure
For Release of Purchase order Please refer Stock Procurement Manual.
Version

1.0
Version

6.3.2 Use
6.3.3 Prerequisites
Purchase Order
6.3.4 Procedure
SAP R/3 menu
PO Number Known
Transaction code
MIGO

1.0
Select Only Capture

Excise Invoice
Save the Document.
Version

1.0
6.2.3 Result
Material Document 500000029 Posted.
6.4 Post Excise Invoice

6.4.1 Procedure
SAP R/3 menu
CIN Easy Screen(J1ILN) Indirect Taxes Procurement
Incoming Invoice Central Processing ->Post Excise Invoice
Transaction code
J1IEX
Version

1.0
Click Simulate Cenvat.
Version

1.0
Click Post Cenvat.
Click Continue
6.4.2 Result
Excise Invoice Posted.
Version

1.0
Version

6.5.1 Use
Accounting.
6.5.2 Procedure
SAP R/3 menu
Transaction code
MIRO

1.0
Click Simulate
Version

1.0
Click Save.
Version

1.0
6.5.3 Result
Invoice Document 5105600133 Posted.
Version

1.0
Version
7 Excise Periodic Processing Business Process Procedure

7.1 Excise Periodic Processing
7.1.1 Purpose
Excise Periodic Processings that are to be carried out at end of a period. Excise Periodic Processing
helps you prepare and carry out the activities required for day-end or month-end and year-end
closing.
TR6 Challan Posting with PLA Register Updation
Utilization of CENVAT
RG1 Register updation
Proforma for Monthly Return under Rule 7 of the Cenvat Credit Rules, 2001
7.1.2 Prerequisites
Before execute business scenarios, you need to post the business processes transactions from other
scenarios.
As part of the integrated scenario, this scenario needs several User Manuals as prerequisites to
demonstrate these include:
Production Planning and Discrete Manufacturing
Procurement of Stock Materials
Sales and Distribution

1.0
Version
7.2 Excise Report - CENVAT Register

7.2.1 Use
Details to submit an Annexure to the Excise Authorities as a Monthly Return Under Rule 57AE of the
Central Excise Rules, 2001. CENVAT Register displays input credit details for Raw materials or
Capital Goods. This report can be generated detailed as Annexure or summary as Abstract.
7.2.2 Prerequisites
User must be assigned the Indian Localization menu.
7.2.3 Procedure
SAP R/3 menu
Country India User Menu Indirect Taxes Registers
Excise Tax CENVAT Register
Transaction code
J2I9
10. On the Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule screen, make the
following entries:
Select the Radio Button for Capital Goods / Inputs to

display Annexure / Abstract

1.0
R/ O/ C
Version
Field name
Description
Comment
Company
Code
Company code
1000
Excise Group
Excise Group for

which ID for which
CENVAT Register is
being generated
10
Posting Date
Posting date range
Annexure
Output to be
generated Annexure
or Abstract
Select this radio button if

the out put is being
generated for Annexure
At time you can

generate an
Annexure or
Abstract
Abstract
Output to be
generated Annexure
or Abstract

the out put is being
generated for Abstract
At time you can

generate an
Annexure or
Abstract
Inputs
Annexure to be
generated for Input
materials or Capital
Goods

the out put Annexure is
being generated for Input
Materials
At time you can

generate an
Annexure for
Input materials
or Capital Goods
Capital
Goods
Annexure to be
generated for Input
materials or Capital
Goods

the out put Annexure is
being generated for Capital
Goods
At time you can

generate an
Annexure for
Input materials
or Capital Goods
The date from

the beginning of
the month to end
of the month

1.0
Version
11. The out put can be saved into a local file or printed by using the print options.
7.2.4 Result
You are able to generate Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule.

1.0
7.3
Version
Excise Register Updation
7.3Updation of RG1 Register

7.3.1 Use
RG1 register maintained at Manufacturing Plants for excisable finished goods. The register shows
goods movements from the factory to a store and stores to customer, specifically for excisable
finished goods. The R/3 System generates all the necessary entries in the register.
This report only creates register entries for goods movements that have not already been entered. It
does not create duplicate entries.
Using this activity, you can also update the goods issue into RG23A Part I and RG23C Part I, Register by
select the radio button option in the Registers.
7.3.2 Prerequisites
To extract the data to RG1 Register, Material numbers has to be maintained in the table J_2IRG1BAL
- Opening/Closing balance table for RG1.
7.3.3 Procedure
SAP R/3 menu
Excise Tax Update RG23A/C Issues and RG1
Transaction code
J1I5

1.0
Version
2. On the Update of Registers RG1 and RG23(Part1) screen, make the following entries:
Select appropriate Classification
Select the Radio Button for RG1 / RG23A Part 1 / RG23C

Part 1 Updation
Field name
Description
R/ O/ C
User action and
Comment

1.0
Version
values
Company
Code
Company Code
1000
Plant
Plant for which RG1

Register is being
maintained
1000
Excise Group
Excise Group for

which RG1 register is
being maintained
10
Material
Document
Number
Material document
number
Based on the updation

criteria enter values
Document
Year
Material document
year
Material document year
Posting Date
Date of Material
document Posted
Movement
Type
Movement Type used

for posting the
materials
Storage
Location
Storage location used

for posting the material
movements
Material
Material number to
update the RG1
Register
Document
Date
Document date of the

material document
Batch
Batch number of the

materials
Stock Type
Stock Type declared
Rule
Excise Classification
Rule
Classification
Pre-defined
Classifications
Enter the Material

Document
Posting Date
IIM
For updating of
goods receipts
from
Manufacturing
plant use RMA
For updating of
Goods issue,
i.e. Removal
from factory on
payment of duty
for home use
Receipts
RMA- Receipt from
manufacture
ROP-Receipt from
outside under any other
provision
Issues
IDH-Removal from
factory on payment of
duty for Home use
IDE-Removal on
payment of duty for

1.0
Version
IDH
export under no bond

IWE-Removal without
payment of duty for
export under bond
IWT-Removal without
payment of duty for
transfers
IWO-Removal without
payment of duty for
other purpose
RG23/ RG1
RG23 / RG1 updation

date
Select the
appropriate radio
button to update
the RG1
Register. Please
select the
document entry
date radio button
Date to be considered by
the system for updation of
RG1 Register
Document Entry date
Document posting date
System date
Registers
Register to update
Select the
RG23A radio
button to update
the RG1
Register,
By using this Transaction

you can update the
following Registers
RG23A Part1
RG23C Pat1
RG1
Please press enter and ignore any messages.

Update the Receipts to RG1 Register and then update the issue to RG1 Registers. Follow the sequence of
transactions.
You can update the RG1 Register by selecting material document header values or Material document line
item level details or both together.
The following Classification codes need to be used while updating the Excise Registers:
Register Type
Goods issues
Goods receipts
RG 23A
IIM
ROP
IPD
IWD
RG23C
IIM
ROP
IPD
IWD
RG1
IDH
RMA
IDE
ROP

1.0
IWE
IWT
IWO
3. System will display the Update of Registers RG1 and RG23 (Part1) screen:
Displays all the line items to meet the selection criteria to update the RG1 Register.
Select Check Boxes for which Updation to be
4. Select the line items which needs to be updated to RG1 Register by selecting the check box at the
beginning of the each line item
Version

1.0
Press Simulate
5. Simulate the selection by using the Simulate function or use Shift+F10 to simulate the selection
Version

1.0
Version
6. System will display the selection Green or Red Traffic lights. The line items which can be updated will be
displayed with Green Traffic Lights and the line items which can not be updated will be displayed with Red
Traffic Lights.
7. After selecting the right documents select the line item and use the Create button to update the RG1
Register or use CTRL+Shit+F11 to make register entry.

1.0
Processing over for 3 records
7.3.4 Result
Processing over for <number of records selected> records
Version

1.0
7.4 RG1 Register Extraction

7.4.1 Use
This step needs to be performed in order to create the RG1 details into the respective tables.
7.4.2 Prerequisites
You have to complete the update of RG1 Register before performing this step.
7.4.3 Procedure
SAP R/3 menu
Excise Tax Extract
Transaction code
J2I5
2. On the Excise Registers Extraction screen, make the following entries:
Choose Execute
Version

1.0
Field name
Description
R/ O/ C
Excise Group
Excise group for which

RG1 Register being
generated
10
State Date
Starting date of
Extraction
Starting date of data to be

extracted for RG1 registers
End Date
Ending date of
Extraction
Ending date of data to be

extracted for RG1 registers
Selection
Registers
Mass extraction of
data to all registers
Select the radio button

Select Any Register option
Select
individual
Registers
Selection of individual
register
Activate the RG1 Check

box to extract the RG1
Register
Display Last
Extracted
dates
Displays the
previously upto what
date the register has
been extracted for
information
Version
Comment
User can
generate all the
registers
together or
individual
register wise

1.0
Version
3. Click on execute icon or Press F8 or Program Execute
Press Yes which appears in the Dialog
4. If the RG1 Register is being generated for the Period First Time, system will execute the report and
display the pop-screen with Register name and Green Tick mark, if it is successfully extracted,
otherwise it will show the Red Cross.

1.0
Version
7.4.4 Result
RG1 data has been extracted
Using this activity, you can also extract the following Excise Registers in addition to RG1.
RG23A Part I
RG23A Part II
RG23C Part I
RG23C Part II
PLA
In the Registers select option, if you select All registers, the system will create an extract for all registers. If you only
want to create an extract for specific registers, select Select any register and then the registers that you want to
extract.

1.0
Version
7.5 RG1 Register Print Utility

7.5.1 Use
The objective of this process is to print the RG1 Register or to display on the screen.
7.5.2 Prerequisites
The data must be extracted to the RG1 Register for the period to which RG1 Register need to be
printed.
7.5.3 Procedure
SAP R/3 menu

Excise Tax Print Utility program
Transaction code
J2I6
2. On the Print Excise Registers screen, select the RG1 Radio button to print the RG1 Register.
Choose

1.0
Version
3. Click on Execute icon or Press F8 or Program Execute

4. On the Print RG1 Register screen, make the following entries:
Choose
Field name
Description
Excise Group

RG1 Register is being
generated
Start Date
End Date
R/ O/ C
Comment
10
Enter the Excise

Group
Starting date of the

period for which
currently RG1Register
is being generated
For example
01.09.2005
Starting Date
Ending date of the

period for which
currently RG1Register
is being generated
For example:
29.09.2005
Ending Date
6. System will display the Print parameters maintenance screen assign the out put device name and select the
Print Preview option. System will display the output on the screen.

1.0
Version
7. See the output on the screen and based on the requirement print the output using Ctrl + P option or through
menu Text Print.

1.0
Version
7.5.4 Result
RG1 Register ready to print or you can see on the screen.
Using this activity, you can also view or print the following Excise Registers in addition to RG1
RG23A Part I
RG23A Part II
RG23C Part I
RG23C Part II
PLA
You have to print or see the registers one after another.
8. PLA Register Extraction

8.1 PLA Register Extraction
8.1.1 Use
This step needs to be performed in order to extract the data relating to PLA Register to respective
tables.
8.1.2 Prerequisites
The following process has been executed, if any transactions took place during the period of PLA
register extraction for payment of CENVAT and Sale of goods
TR6 Challan Updation

Utilization of CENVAT
8.1.3 Procedure
SAP R/3 menu
Excise Tax Extract
Transaction code
J2I5

1.0
Version
2. On the Excise Registers Extraction screen, make the following entries:
Choose
Field name
Description
R/ O/ C
Excise Group
Excise group for

which PLA Register
being generated
10
State Date
Starting date of
Extraction
Starting date of data to be

extracted for PLA registers
End Date
Ending date of
Extraction
Ending date of data to be

extracted for PLA registers
Selection
Registers
Mass extraction of
data to all registers
Select the radio button Select

Any Register option
Select
individual
Registers
Selection of
individual register
Activate the PLA Check box to

extract the PLA Register
Display Last
Displays the
Comment
User can
generate all the
registers
together or
individual
register wise
System will

1.0
Extracted
dates
previously upto
what date the
register has been
extracted for
information
Version
display the last

extraction date
on the screen
3. Click on execute icon or Press F8 or Program Execute
4. If the PLA Register is being extract for the Period First Time, system will execute the report and display the
pop-screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will show
the Red Cross.

1.0
Version
8.1.4 Result
PLA data has been extracted
8.2 PLA Register Print Utility

8.2.1 Use
The objective of this process is to print the PLA Register or to display on the screen.
8.2.2 Prerequisites
The data must be extracted to the PLA Register for the period to which PLA Register need to be
printed.
8.2.3 Procedure
SAP R/3 menu
Excise Tax Print Utility program
Transaction code
J2I6
2. On the Print Excise Registers screen, select the PLA Radio button to print the PLA Register.

1.0
Version
Choose
4. On the Print PLA Register screen, make the following entries:
Choose
Field name
Description
Excise Group

PLA Register is being
generated
Start Date
End Date
R/ O/ C
Comment
10
Enter the Excise

Group
Starting date of the

period for which
currently PLA Register
is being generated
For example
01.09.2005
Starting Date
Ending date of the

period for which
currently PLA Register
is being generated
For example
30.09.2005
Ending Date

1.0
Version
6. System will display the Print parameters maintenance screen assign the out put device name and select the
Print Preview option. System will display the output on the screen.
7. See the output on the screen and based on the requirement print the output using Ctrl + P option or through
menu Text Print.
8.2.4 Result
PLA register displayed on screen or printed.

1.0
9. Reports
7.1
Purchasing
7.1.1 Purchasing Documents per Vendor (ME2L)
Chose Execute Icon
Version

1.0
7.1.2 Purchasing Documents per Material (ME2M)
Choose Execute
Version

1.0
7.1.3 Source List for Material (ME0M)
7.1.4 Purchase Info Record per Material (ME1M)
Version

1.0
Version

1.0
7.1.5 Purchasing Values(MC$G)
Choose Execute
Click Switch Drill Down Icon
Version

1.0
Version

1.0
9.2
Inventory
9.2.1 Material Document List (MB51)
Choose Execute
Version

1.0
Click this Icon to have

Detail View.
Version

1.0
Version
9.2.2 Diplay Warehouse Stock (MB52)
Choose Appropriate
Input for your selection.
Choose Execute or Press F8.

1.0
9.3.3 Stock on Posting Date (MB5B)
Select Apropriate Entries

For your selection
Choose Execute or Press F8
Version

1.0
Version

1.0
Version

1.0
9.3.4 Stock Overview (MMBE)
Choose Execute or Press F8
Version

1.0
9.3.5 Stock in Transit (MB5T)
Choose Execute or Press F8.
This means no stock in transit
9.3.6 Slow Moving Items (MC46)
Version

1.0
Select Appropriate Input

Entries
Choose Execute and Press F8.
Version

1.0
Version

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Duro Shox Pvt Limited

DOCUMENT CONTROL SHEET

Materials Management User Manual For Duro Shox Pvt Limited

Confidential Page 2 of 316

Materials Management User Manual For Duro Shox Pvt Limited

USER PROCEDURE MANUAL

1 Procurement of Stock Materials .............................................................................................................10

Procurement of Stock Materials Raw Material Local / Return___________10

Request for Quotation (RFQ)_______________________________________56

Message output: RFQ_____________________________________________61

Maintaining Quotation ____________________________________________64

Price Comparison ________________________________________________67

Creating Purchase Requisition _____________________________________69

Release Purchase Requisition______________________________________70

Assign and Process Purchase Requisition___________________________74

Confidential Page 3 of 316

Materials Management User Manual For Duro Shox Pvt Limited

1.10. Release Purchase Order_________________________________________83

Goods Receipt for Purchase Order_________________________________89

Logistics Invoice Verification____________________________________100

Returning Delivery _____________________________________________106

Excise Invoice Other Movements__________________________________114

Posting and Printing the Excise Invoice____________________________117

Reversals / Cancellation of Invoice or Credit Memo __________________127

Reversals / Cancellation of Goods Receipt (GR) _____________________134

Confidential Page 4 of 316

Materials Management User Manual For Duro Shox Pvt Limited

1.19.5 Example ................................................................................................................................................139

Reversing CENVAT Postings _____________________________________140

Canceling Excise Invoices _______________________________________145

2 Procurement of Imported Materials Business Process Procedure....................................................151

2.2 Creating Purchase Order ________________________________________152

Release Purchase Order__________________________________________159

CAPTURING BILL OF ENTRY_____________________________________164

Goods Receipt for Imported Purchase Order_________________________172

Logistics Invoice Verification for the Materials_______________________184

3 Procurement of Subcontracting Materials Business Process Procedure..........................................191

Procurement of Subcontracting Materials___________________________191

Confidential Page 5 of 316

Materials Management User Manual For Duro Shox Pvt Limited

Creation of Subcontracting Purchase Order__________________________192

Transfer of Components to Subcontractor___________________________199

Creation of Subcontracting Challan_________________________________202

3.6 Printing of Subcontracting Challan________________________________205

Goods Receipt for Purchase Order _________________________________209

Reconciling Subcontracting Challan________________________________218

Completing/Reversal/Re-credit Subcontracting Challan________________221

Logistics Invoice Verification for Subcontracting Material_____________222

5. Procurement of External Services: Business Process Procedure.......................................................227

Procurement of External Services Procurement Process_____________227

Confidential Page 6 of 316

Materials Management User Manual For Duro Shox Pvt Limited

Creating Service Master__________________________________________228

Creating Purchase Requisition ____________________________________230

Assign and Process Purchase Requisition___________________________236

5.6 Purchase Order_________________________________________________239

For Releasing Purchase Order Refer User Manual of Stock Procurement_243

Creation and Acceptance of Service Entry Sheet _____________________245

Logistics Invoice Verification_____________________________________257

6 Asset Procurement Business Process Procedure...............................................................................262

Release of Purchase Order _______________________________________266

Goods Receipt for Purchase Order_________________________________267

Post Excise Invoice______________________________________________269