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Organization structure:
This is the definition of each entity of IOCL in terms of SAP like IOCL is Client
in SAP. Likewise Location is defined as Plant is SAP. These definitions will be
used to understand the business from Materials Management perspective and to
define key data structures like material master, vendors master, Excise master
etc.

Entity SAP entity Features

IOCL Client (310) A single entity holding Group of

company codes
CPCL Company code Where accounting is done for
(9910,9930) transactions and Trial balance is
drawn. This is done at SO level is
further consolidated at
RO/HO/CO level
Storage Tank, Storage These entities hold the material
Logical storage Locations inventory in terms of quantity. At
locations for (REVN, AFCN, this level material valuation is
stores SURP) same across all storage location
for a Plant.
Hydrocarbon Purchasing Purchasing Organization is a
Non Organization ( floating entity. where set of rules
Hydrocarbon NHVT, SERV, are defined for purchasing
Services HCP)
C01, C02, C03 Purchasing These are group responsible for
Group actual purchasing of material /
services

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Material master : t-code MM03
Material master is comprehensive data including material code, short test,
accounting data, purchasing data, quality data, MRP data, Sales data, Storage
data etc.
Material code, short description is held at Client level.
Accounting data is held at Company code level.
Purchasing data, MRP data, valuation data etc. is held at Plant level.
Stocks are held at Storage Data level.
Materials are also classified as Stores, Bulk, Chemicals, Lube, Pack, non
valuated material etc. (material type) for the purpose of Reporting &
accounting.

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Material codification:
Material codification is at the client level with a view to have common
codification of material across Indian Oil. Material can be extended to desired
company code, Plant as per the requirement of the Plants.
Non Hydrocarbon material is a 10 digit intelligent coding. First 6 digit is
called coding schedule followed by 3 digit which is running numbers and
followed by another digit which is a identifier / indicator.
The codification hierarchy is as under:
Main group Sub Group Sub-sub Group Serial no. Identifier
XX
XX
XX
XXX
X
Identifier / indicator:
Imported proprietary
Imported common spare
Indigenous proprietary
Indigenous common
Non valuated / insurance spare
CDK (Catalogue Development Kit) is available for viewing in Server at IIPM,
Gurgaon with ip address 10.52.2.23

click on the desired main group for which you want the material code. This
will take you to fist screen and again click on icon to get sub group of
main group.
Continue above to get sub-sub group. Finally you get desired material code as
given below.

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Whenever you do not find a material in CDK, Material codification request on
the prescribed format be sent to CO-IS duly suggesting codification schedule
i.e. 1st 6 digits after checking in the system that it is not already codified. In
case Material is already codified and existing in some other Plant, a request
may be sent to CO-IS for extending the material to your Plant.
Whenever going live at locations, material lying in inventory needs be done
mapped to above codes. Balance material would be codified under material
group 98 (temporary codes) and purchasing blocked so as to enable user to
post consumption / issue the material.
In the meantime users will be required to map their material / codify material
to regular codes and transfer material lying under 98 groups to regular codes.

Incase the material has to be extended from any of the other plants then the
request for extension has to be placed through T Code YMC.

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Put the material code to be extended, plant, storage location to which the
material is to be extended. By default the radio button is on the normal which
means that only certain views related to purchasing, plant of the material
master are extended. Incase the material to be extended has to be sold then
one has to select the option with sales view & press on the cont icon. The
screen shown below opens on the screen.

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If the data shown on the screen is correct, click on the icon Accept for
Extension.
Request ID as shown below is created

Incase more materials are to be extended one has to click on the icon continue
with next material & one will receive the basic screen once again & the
process has to be repeated for the next material.

One can check the status of the request through YMC by clicking on the
tab . On the screen as shown below one can check
either by date or request ID value & pressing on cont icon.

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The status of the request will be displayed as shown below on the screen.
The extension of material happens centrally at COIS, Gurgaon.

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Vendor Master & Codification: t-code XK03
Similarly Vendor Master is also collection of data like Vendor code, name,
address, accounting data, purchasing data.
Vendor code name, address, PIN code etc. is maintained at client level
Accounting data is held Company code level
Purchasing data is held at Purchasing Organization level
Withholding tax code data is held at Company code level
Vendor code is not maintained at the Plant level.

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Vendor master is an 8 digit code allocated and maintained by IS Officers at
State Office/ Unit. In case of CPCL the vendor code creation will also be done
by the IS team.
Vendors are unique at Name and address combination i.e. any vendor with 2
different addresses will have 2 Vendor codes.
Vendors are further grouped such as Material vendor, service vendor,
imported vendor, Government vendor, Employee vendor etc.
Vendor can be blocked or marked for deletion by the materials head with
proper justification & while blocking it is to clearly indicate for what duration
the vendor is being blocked.
Whenever new vendor is required to be codified, or extended the request has
to be placed through T.Code YMV.

In the vendor entry tab fill in the details. Thereafter click on the icon Next
Step. A pop as shown below comes requesting requestor confirmation.

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If the requestor presses yes a pop up gives the request no as shown below,
otherwise a request number is not created.

One can check the status of the request through the tab vendor create in
YMV.

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The status can be checked by putting the request ID or clicking on My
requests & clicking on Next step. In the pop up click on the appropriate

On clicking on the button, requests either created or approved are displayed

depending on the option selected.

The remarks column gives the status of the request.

Similarly for extending vendor click on the tab Vendor extend in YMV &
click on next step

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A pop up comes as shown below. Press on yes. A user request will be created,
the status of which can be seen as already explained.

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For creation of vendor code a person other than requestor has to click on the
option Approve & create vendor in the vendor create tab of YMV & press on
next step. Vendor codes are automatically created or extended in the
background.

Thereafter one has to update excise details by selecting Update Request &
excise details. Vendor excise details are updated for the created vendors.

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Material valuation:
Material Valuation is at Plant Level. Non Hydro carbon Material are valuated
at Moving Average price Concept i.e. If ‘x’ material is valued at Rs.100/- in a
Plant for a total quantity of 100 units. If we receive another consignment of
100 units @ Rs.120/- each, then the MAP automatically changes to 110/- each
unit.
MAP does not get changed during issue transaction.
For CENVATable goods the valuation of material is net of CENVAT amount
(Excise duty) as this amount is claimable in RG23 Register. For consumable
material the CENVAT is available 100% at the time of GR and in case of
Capital Goods the CENVAT is available 50% against GR and 50% is on hold
which can be utilized next fiscal.

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Excise table maintenance: t-code J1ID
Following tables appearing in above t-code needs be maintained

Chapter-Id
Material and Chapter-id combination
CENVAT determination
Vendor excise detail
Excise tax rate
Exceptional material excise rate

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Chapter-Id :
In this table Chapter-id and material description id given as per the Excise
tariff table.
Chapter-id Material description
3811.90 MTBE CD COLUMN CATALYST
HYDRAULIC BRAKE FLUIDS

The rates against the chapters are maintained in this table under excise rates.

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Material and Chapter-id combination:
In this table material and chapter-Id is maintained. Material type is defined
like raw material, Capital goods, Assets are given. Also GR reference that
single or multiple Excise is also indicated.
Material Plant Chapter-id Material type GR- Ref
0835101013 9500 84 C Consumables 2 Multiple GR for one
excise
For the chapter maintained against the material the excise rates are
automatically defaulted in Purchase transactions.

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CENVAT determination:
This table is to be maintained only if the material is CENVATable.
In this table Input / output relationship is maintained for a Plant.

Vendor Excise detail:

Following details are required to be maintained:
Vendor ECC number Exc.reg.no Exc. range Exc. Div. Exc. Coll. CST no.
LST no. PAN Exc. Indicator

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Excise tax rate :
In this table Excise tariff for Chapter-id combination is maintained.

Chapter –id Exc. Indicator Valid from Valid to Excise

rate
In Exc. Indicator please maintain 1.

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Exceptional material excise rate :
If a vendor is charging Excise rate other than that maintained in above table
then exception rate is maintained in this table

Plant Material Vendor Validity Chapter-id Excise rate

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S T A N D A R D TA X C O D ES IN S A P
With migration to Standard SAP Tax Codes, the method of calculating taxes
(CST, LST, ED and VAT (if applicable)) has changed. There are multiple tax
codes corresponding to different rates of LST, CST etc in conjunction with
Excise Duty rates. Therefore instead of putting the rates, separately for
LST/CST, one has to select the appropriate tax codes corresponding to the
correct combination of Excise rate and LST/CST.

In the description of Tax Codes the rates of LST, CST etc are also given.
These rates are inclusive of surcharge if applicable.

For example if the LST is 8% and there is a surcharge of 10 % and ED is

applicable then the tax code to be used is
JL =ED, LST + Surcharges = 8.8%; NON VAT STATES

If the LST is 8% and there is a surcharge of 10 % and ED is not applicable

then the tax code to be used is
HL = Nil ED, LST + Surcharges = 8.8%; NON VAT STATES

Similar tax codes are also there for Vat States. In Vat states there could be 2
scenarios where it is vatable & non vatable in the state.

OR

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All materials, which are Excisable, should have entry in Excise Master (J1ID)
in the Table Material Chapter ID Combination.
All materials, which are Cenvatable, should also have an entry in Cenvat
Determination table apart from Material Chapter ID Combination table.

From the Excise perspective the tax codes may be divided into 2 categories:
LST/CST/VAT in conjunction with Nil ED &
LST/CST/VAT in conjunction with ED.
Nil ED means 0 Excise Duty. ED means excise duty is applicable.
Whether the Excise duty is to be loaded on to the Inventory or not i.e. whether
Cenvat credit is to be availed or not, is governed by Excise Masters.
If the material is only maintained in:
Material Chapter ID Combination table, the system picks up the rate based on
Excise Master and loads it to the inventory. This implies that Cenvat credit
cannot be availed for this material.
If the material is also maintained in:
Cenvat Determination table in addition to Material Chapter ID
Combination table, the system picks up the rate corresponding to the
Chapter Id and does not load it onto inventory. This implies that Cenvat
credit can be availed for the material.

Purchase Requisition: t-code ME51N

This is usually created by the user Deptt. For the material or services required.
Document type is NB for standard PR, and for which will be finally converted
into contract, document type should be RV.

In the item overview part of the PR if the material is being procured for
inventory purposes the account assignment category will be BLANK except

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for non valuated material i.e. stationery. There will be no budget check at this
point when account assignment category is BLANK. Budget check will
happen at the time of issuance of material from inventory. Account
assignment category can be K/Q/N/F depending on the head from which the
budget will be consumed.

In this material column put the material code (this is must for non account
assigned PR). Item category column has to be left BLANK.
Give Plant code, Storage Location and Department code.
Maintain qty, delivery date etc, and tracking number. System will
automatically determine the valuation of material at MAP of the Plant. You
may, if required, change the estimate price.

Put text such as Header text, Item specific text etc. at the appropriate place.
Purpose as to why the PR is being raised can be maintained in the texts tab
under the heading Purpose. Material PO text is defaulted from the Material
Master & is not editable. Incase any more details have to be specified for the
material the same can be maintained under Item texts. Additionally if the PR
is account assigned that is there is K/Q/N/F in account assignment category
column then user will have to feed the following data in the account
assignment tab.:

Account assignment category Details to be given

K Cost centre/ G L code

Q WBS/ G L Code
N Network number/ G L code
F Order number/ G L Code

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Save the Purchase Requisition and this will generate a PR number.
Purchase Department will process, thus generated, Purchase Requisition for
RFQ (Request for Quotation) and PO (Purchase Order/ Contract).
To Print purchase Requisition: YM11
Give PR number, item number and execute (F8).

In the above screen check box for – Check for surplus stock is always ticked
by default. This basically checks whether the material which is being indented
is available as a surplus material elsewhere in the company. Incase the
material is available as Surplus then the list of location where the material is
available gets printed with the PR. This information can be used by the user
raising PR to go ahead with PR or shelve it there & instead get the material
from the location where it is lying as surplus.

RFQ’s: t-code ME41

Purchase Requisition (PR) can be processed for Tendering through RFQ
(Request for Quotation). This can also be done without referring to any PR
also.
Document type is ZM for normal RFQ.
Indicate Document date and quotation deadline (tender due date) in
appropriate field.
Indicate Purchasing organization and Purchasing Group

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If the PR is being created with reference to Purchase requisition, click on the
icon on the top of the screen. On clicking a pop up comes
as shown below.

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Put the PR number against which RFQ is to be made & press enter. On the
next screen which appears:

Put the collective number (10 digit tender number/ File number. The series
that can be adopted is CPCLXX000N where XX is purchase group, followed
by running serial number or CPCL can devise their own series purchase group
wise & manual register be maintained to put the next collective number for

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subsequent RFQ’s). After putting the collective number press enter. On the
next screen:

Select the line & press on the icon on the top of the screen to
copy the items from the PR to RFQ. Press enter. On the next screen, change
the delivery date. This should be date after the quotation deadline date.

Press enter. The screen given below is displayed .

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On the above screen displayed click on icon . This icon is for vendor
address i.e. vendors to whom the tender (RFQ) has to be sent. When
clicked the screen shown below is displayed.

The user is to select the vendor code to whom the enquiry has to be sent &
press on the save button. A RFQ number is generated.
Please note incase of Public tenders all vendor codes may not be available
upfront then in that case tender can be issued to the party using one time
vendor code available in the system & the actual name & address can be
manually typed in the above fields. When one time vendor code is given in the
vendor field then the address & name fields remain blank in the above screen.
To print the RFQ click use T.Code ME9A.

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Put the RFQ number saved above to be printed & click on or F8. On the
next screen shown below

Click on the check box, MAT (message type). Then click on the icon
to display RFQ print or for printing the RFQ. The
printout has to be taken of A4 size letterhead.

In order to take print out of RFQ in PDF format click on the check box PDF.
Then click on the icon to display RFQ print or for
printing the RFQ. The printout has to be taken of A4 size letterhead.
Please note that for RFQ printout in PDF format the first page contains
information about the person to be contacted incase some clarification is
required by the tenderer. For this details have to be captured purchase group
wise or globally for CPCL by creating a vendor with account group PLNT,
through XK01 as already explained above. This will be a onetime activity till
the person to be contacted changes. The vendor screen is explained below:

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In the snapshot given above in the search term if no purchase group is
mentioned then for all the RFQ’s floated by CPCL the name of the person
mentioned in street/ house number will get printed. Incase search term is
mentioned as 9910C01RFQ then RFQ’s with only purchase group C01 will
print the name of the person in street/house number and RFQ’s floated with
other purchase group will not print anything. One can create any number of
vendors for different purchase group if the contact person is different for each
purchase group.

User can use the T.code ME4S to list all RFQ’s created against a collective
number.
Input collective number and other details like Purchasing Organization etc.
and execute

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The output will be as under:

Maintenance of Input tax code for Quotations: T.Code MEK1

Before maintaining quotations users have to maintain the input tax code
through MEK1 as the tax code cannot be put directly in the quotation
maintenance transaction.

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Maintain condition type as NAVS & press enter.

A new pop up comes up as shown below. The pop up depicts the

combinations under which the tax codes can be maintained.

Suppose the option chosen is Plant/Vendor/Material. One has to select that

radio button & press enter.
On the next screen maintain the plant code/ vendor code/ material code/ Valid
from date / Valid to date/ Tax code & save.

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 This may have to be repeated for all the vendors if the key combination
selected is Plant/ material/ Vendor. Incase the option is Plant / material group
then it has to be maintained only once.
Therefore once MEK1 data is maintained next step is to maintain
quotation.

Maintain Quotation: T.code ME47

Put the RFQ number as shown above & press enter.

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Enter Quotation reference and date and press enter

Select the item and Click on item conditions

In the next screen input the conditions like basic price, Freight, Inspection etc.

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After the quotation maintenance is done click the back arrow

In order to see the input tax click on the icon

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The tax code maintained through MEK1 earlier is seen as C4 in the tax code
field.

After checking all the details save the document after clicking on icon.

Quotation maintenance has to be done for all the technically accepted bids.

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Comparative statement: T.Code YMR166
Give Purchasing Organization, Collective number in the appropriate field. For
detailed condition break-up tick in the box and click on .

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For getting the details of PBG/LD/EMD user is required to maintain details in
the header text of the RFQ.
Click on the page down icon on the top and this will show the break-up of
the prices inputted for individual quotations.

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From the comparative statement the party on whom the order is to be placed is
finalized. The user can either create a Contract order or a purchase order.

Material Contract: t-code ME31K

Contracts are agreements with vendor normally for a longer period of time
without firm commitment. Call-up is made (Purchase Order in SAP) against
these Contracts for the firmed up quantity. Budget check does not happen at
Contract level. Material can be received against these call-ups (PO) only.
Total contract value can be controlled in the contract at Header level.

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Material Contract can be made without Plant also. At the time of making call-
up Plant is a mandatory field.

Give the Vendor code, Document type MK for Quantity and WK for value
contract (item rate)

Assign Purchasing Organization, Purchasing Group, Plant (if contract for

multiple Plant leave this field blank), Storage location, and Material group.
Press enter.

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Give validity date of the contract and target value. The target value is greyed
out in case of MK agreement type but is an open field in WK agreement type.

Press enter to go to next screen.

Enter Material number and other details like Quantity (optional in case of
value contract), Unit of measure, Unit rate and Save.

Contracts can be created with Respect to PR and RFQ also. On ME31K

Screen click on . The system copies
the detail from RFQ or PR whichever option is selected.

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To Print Contract: t-code ME9K
Give contract number in the document number field and execute (F8).
Tick the left item box and take a trial print out. If you take a final out put you
will not be able to take a print-out again without resetting the print options.

Purchase Order on a vendor: t-code ME21N

The purchase order has 4 parts. The above screen shot shows the PO screen in
the collapsed form.
In the first part put the document type also called the PO type. The document
type or PO type will be ZP indigenous PO incase the procurement has to
happen locally and incase the material is to be imported the order type will be
ZQ PO for Imports.
In the vendor field put the vendor code from whom the material is to be
procured. In the Doc.date field put the date actual date of the PO.

In the Header part of the screen which can be expanded by clicking on

there are number of tabs. Normally the data tab opens by default.

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Give the Purchasing Organization as NHVT, Purchase Group as C0*(C01-
C10) whichever is applicable and the company code of your location.
In the header one can maintain the texts regarding security deposit, terms of
payment, delivery period in the text tab of the header as shown below. The
texts maintained in header text will get printed in the PO printout.

In the header thereafter click on the additional data tab and put the tender
number in collective no. field.

Thereafter click on the icon to expand the item overview part of the PO if
it is not already expanded.

In the item overview part of the screen leave the account assignment category
& item category as BLANK incase the material is being procured for
inventory purposes. Other possible entries in account assignment category
have already been explained above during the creation of Purchase requisition
holds well here also.

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Put the material code, quantity, delivery date, unit price, plant code and
storage location. This is to be done incase the PO is being created directly in
the system without reference to RFQ or contract.
Thereafter click on to expand the item part of the PO. There are number
of tabs as seen below.

In the conditions tab one can enter charges like inspection, freight, insurance,
discounts, octroi, packaging & forwarding etc.
In the adjacent tab of invoice one can give the tax code as applicable on the
material. One has to select the relevant tax code as applicable on the material
from the dropdown available.

One can click on the Taxes icon in the invoice tab to see the impact of tax
code selected.

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JM01 A/P Eduty for Setoff = If rates defaults here it means Cenvat Credit
can be availed.
JM02 A/P Eduty for Inven = Excise duty is loaded on to the Inventory.
JIP2 A/P L Sales Tax Inv = LST to be loaded onto Inventory.
The Value of LST, CST, VAT, Excise Duty etc appears under Taxes as shown
above.
The impact of taxes can be seen in the conditions tab under condition type
ZDTS or NAVS.

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Common Mistakes
There could be a case when the Tax Code is incorrect or the Excise Master is
incorrectly maintained. This would result in incorrect accounting, which may
be highlighted only at the time of Invoice Verification.
For example, suppose the tax codes are correct but the Excise Masters are
incorrectly maintained, resulting in incorrect inventory valuation.
To rectify the mistakes the following steps are to be followed:-
Reverse all the GRs’ for the PO.
After reversing the GR go to Change PO. In the Invoice Tab remove the tax
code and press Enter.
Enter the tax code again and press Enter.
Click on the Taxes Tab to check the entries.
Save the PO.
The same steps are to be followed even in case the Excise Masters are
correctly maintained and only the Tax code is incorrect.

Thereafter save the PO. A po number is generated at the bottom of the screen.

Incase the PO is being created with reference to RFQ one has to go to the
accepted RFQ and maintain the quotation comment for the first line item in
the RFQ. The quotation comment should be any of the comments starting with
S series.
To maintain this quotation go again to ME47 put the quotation number &
press enter. Select the line number 10 & click on icon. On the screen
which appears put the quotation comment starting with S from the dropdown
as shown below & save.

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Then once again PO screen is opened through ME21N, choose the document
type as ZP or ZQ and then in the item overview part scroll to the right and
input RFQ no. and item no. as shown in the figure below.

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Upon entering RFQ number, item number it will automatically populate
details from RFQ as under:

Put the collective number in the additional data tab of the PO. This number
should be the same as that in the RFQ otherwise the system will not allow the
user to save the PO.
Change the conditions if required and insert texts etc. and save the PO.

Printing PO: t-code ME9F

Give PO number and execute (F8)
Tick the left item box and take a trial print out. If you take a final out put you
will not be able to take a print-out again without resetting the print options.

Account assigned PO on a vendor : t-code ME21N

Account assigned PO where material code is not known or direct consumption
is to be posted.
Or
Material is to be issued for Capital Works against Internal Order or
maintenance Order or Cost center.

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No inventory can be maintained for the purchase where no code for the
material is available and as such account assignment (Budget reference) has to
be given in the PO itself i.e. G/L code, cost center and fund etc.
Create PO type ZP by t-code ME21N
Give vendor code and date of PO.
Give Purchasing Org, Company code, Purchase group in header data.
In item overview screen put ‘K’ in account assignment column A (account
Assignment Category column)
In short text put material description to be purchased, qty. basic rate etc.
Indicate Plant, Storage Location (REVN) , Material group ( say 89 for
packaging machinery)
Put appropriate tax code after maintaining excise tables)
Put appropriate G/ L code, cost center and fund (in case of maintenance item).
Please note that once account assignments are maintained, they should not be
changed and this item should be deleted and redone with appropriate G/L
code) incase the assignments are to be changed.
Indicate Shipping instructions appropriately (In most cases this is V4 i.e. No
shipping instructions)
Save PO.

PO for Capital Schemes: t-code ME21N(Capital schemes

created as Internal order)
The process is same as given above. In Place of K put F and this will prompt
you for Order no. and G/L code. Put Internal Order no. and G/L code
5999999999(5 followed by all 9’s).
This type of Order will be used for Capital procurement i.e.AF schemes.
For capital schemes created as WBS the account assignment category to be
used is Q or N. Incase the account assignment category is Q then material
code in the PO is must and in the account assignment one has to input WBS
number & G/L code as 5991000000. Incase a material is not codified and is a
charged of capital item not to be taken into inventory then one can use
account assignment category as N, maintain the material description in short
text and other details as already explained above. In account assignment
screen the user will then have to give the network number. Network activity
number & the G/L code as 5888888888.
Stock Transfer ( STO ):t-code ME21N
In case Manali Refinery wants a material from CBR refinery on Stock
transfer. A Stock transfer order will be created on CBR. PO screen will be
opened with ME21N, PO type will ZO-MM Stock Tpt. Order. Vendor will
automatically be replaced by supplying plant wherein the user will put the
plant code from where the material is to be supplied. Give doc. Date as
already explained.

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In the PO header give Purchasing Organization (NHVT), Purchasing Group,
and Company code.
Expand item overview button.
Now give material code, qty, Plant and Storage Location where the material is
required in item overview screen and save the PO.

Call up order against contract:

When a centralized contract is placed in the system release orders are required
to be created for supply of material from time to time. Go to create PO screen
through ME21N.

Chose order type as ZS Call up PO. Thereafter go the item overview part
Of the screen and scroll right and in the outline agreement field put the
Contract number and in the adjacent column put the line number of the
contract as show below and press enter.

Details of the contract get copied into the call up order. Put the quantity
to be ordered and save. A call up order number is generated.

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Goods Receipt : t-code MIGO
Material receipt against Purchase Order can be taken into stores either through
single step or through two step receipt. In the one step receipt the material on
posting the MIGO document directly goes into inventory whereas in a two
step receipt it first goes into GR blocked stock where it is to physically inspect
and thereafter once the material is fit to be accepted this transaction is again
done.

Once the MIGO screen is opened please choose the option Goods receipt, in
the adjacent field choose the option Purchase order, and then in the next field
give the Purchase order number. When the material is received in single step
then put the movement type as 101 and 103 incase of two step receipt and
press enter.
On the screen which appears check the quantity in the quantity tab and change
it if required, Click on the item OK check box appearing at the bottom of the
screen.

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Then go purchase order data tab and click on the evaluate button.

A new pop up comes up as shown below:

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Press enter.

Thereafter go to the excise invoice tab at the top of the screen.

Choose the option No excise entry incase the material is not Cenvatable
otherwise choose the option only part 1 and press enter. Thereafter save the
document. A material document number starting with 5 is generated.

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This excise invoice option will not come if the movement type is 103.Only
when 105 with respect to this 103 document is posted will the excise option
appear.

Good receipt in 2 steps: t-code MIGO

Goods receipt to be done in two steps in case the material is first recd. based
on the challan raised by the vendor without subjecting to inspection etc /
physically verifying the material/ quantity. In the second step, the material is
subjected to inspection and then actual quantity is received into the stock.
Receive into GR blocked stock by mvt. Type 103 (t-code MIGO) for the
challan qty as already explained above.
Release from GR block stock by movement type 105 (t-code MIGO) for the
actual quantity received.

In the MIGO screen select the option Release GR Blocked Stock, followed by
material document, followed by material 103 document posted above and
press enter. Check for the quantity to be accepted in the quantity tab, put tick
in the item ok check box at the bottom. Thereafter put the relevant entry in the
excise invoice tab as already explained and save the document. Incase only
part quantity is accepted then the unaccepted quantity has to be returned to the
vendor. For this the 103 document has to be canceled. The cancellation of
material document is explained below.

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On the same screen if you choose the display option from the drop down and
press enter button the last saved document will be displayed.

Go to Doc. Info tab and click

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Click on accounting document and this will take you to another screen.

Printing MRN/GRN (101/105 documents): T-code YM12

Put Document no. and year and select ac-99 or A4 plain stationery as shown
below in the snapshot.. Click on .

Reservations: t-code MB21

The reservation is a transaction to draw material from the stores. This is
prepared by the user indicating the material mvt. Type, cost center, material
code, quantity and text for any details etc.
The user will take the print out of this Reservation cum GI slip and hand over
to the Stores in-charge for issuing the material against this slip.

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Reservation for drawing material from stores is created with movement type
201. After putting the movement type & plant code press enter.
On the next screen enter details as shown below.

Put cost center number, material code, quantity, storage location and press
enter.
In the text field either the Service PO of the contractor to whom it is issued or
the person to whom it is issued and save. A reservation number is generated.

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Printing Reservation slip: t-code YM15
Enter the reservation number and execute. Tick in the check box and enter.

Issue of Material on Stock transfer Basis :

T-code MB1B movement type 351 against STO created by receiving
location.

Enter doc. Date, posting date; indicate movement type 351, Plant and Storage
Location.
Click tab ‘To Purchase order’
In the next screen put PO no. and click on
Save the document.
Once the 351 document is posted it moves the stock out from the inventory
plant inventory and appears as stock in transit. The receiving location has to
post MIGO – 101 against the (Purchase Order) Stock transfer order to get the
material into own inventory.

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Moving material from one Storage location to another
Movement type – 311and T.code MB1B
Material to Material
Movement type 309 and T.code MB1B
Issue of Material from one location to another on Stock transfer
Movement type 351 and T.Code MB1B

Printing of MM documents:
For document posted with movement type 309 – YM53 (Material transfer
note)
For document posted with movement types 351,122,124,313 – YM59
(Despatch Challan)
For documents posted with movement type other than those mentioned above
use YM96 (Output to printer for all material documents)

Cancellation of a Material document :T.code MIGO

Go to MIGO and choose cancellation option. Give the doc. No. to be
cancelled, indicate reason code, text and save.

The text & reason for movement is to be maintained in the where tab

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NOTE:
Material document cannot be modified. It has be cancelled and reposted.
However, PO can be amended for except for doc. Type, Vendor and a/c
assignments.

Posting consumption from Stores: t-code MIGO

Consumable material is issued to the plant from store by movement type 201
(t-code MIGO). Capital materials are not to be issued through movement type
201. This can be posted with or without reservationas shown below:

OR

In the MIGO screen, choose the option Goods Issue others, movement type
201 & press enter. Put the material code, quantity, Plant, storage location,
Cost center, and save the document. The above entries have to be entered in
the material, quantity, where and account assignment tabs respectively. This
will deplete the stocks from the stores.
This can also be done w.r.t. a reservation document. In the MIGO screen
chose Goods Issue, Reservation, Give the reservation number and press enter.
Details from the reservation screen will get populated on the screen. Mark the
item ok check box at the bottom and save the document.

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Issuing material against an Internal Order ( Material for
Capital Works from Inventory when the capital scheme is
created as an Internal Order) : t-code MIGO
Use movement type Y61 in MIGO.
Give document and posting date and press enter. Give material code number,
quantity, Plant, Storage location, Internal Order number in the order field;
give G/L code as 5999999999,Give suitable remarks in the text and check the
document by clicking icon ’check’ in the upper part of the document. If the
document is okay, post. The system will generate a document number.

Scrapping of material: t- code MIGO

Goods receipt – Others
Post consumption by mvt. Type 201 for the material being consumed and post
a receipt in the same document by mvt. Type 521 for corresponding material
code (material type SCRP) for equivalent quantity / weight.
Maintain text code and text in where tab.
Maintain cost center for item no. 1
If the material is being removed from use (other than capital) then these can
be received directly into the inventory by movement type 521. Scrap material
is received into inventory at zero value therefore put valuation as zero (0) in
the valuation field. Typical examples could be rubber mats, barrels, spares,
tools etc.

Dismantling of Asset :( MIGO)

First finance has to do a dismantling of asset. Then the materials user will do
MIGO, Goods receipt – Others, Movement Type – Z21. You need to put
WDV (written down value or book value) of the dismantled asset while doing
the transaction. Put material code (material type used will be DASS), quantity
and value (book value) in the respective field.
Note: If the value of dismantled asset is ‘0 leave the fields blank.
Put Plant storage location, Reason for movement and text in the where tab.
Put cost center and save the document.

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Uploading of material issued in Legacy:
There may be case where material has been issued prior to the plant going live
On SAP. But after the location being on SAP certain materials may be
returned back to stores. To handle such a scenario user will have to post a
receipt transaction using T.code MIGO with movement type Y21.
Goods receipt – Others – movement type – Y21. Put material code, quantity,
plant, storage location, Value in external value in local currency, Cost centre
and save.

Insurance Spares:

Materials when procured for project are first received into project inventory,
issued and capitalized. Material at the time of placement of Purchase Orders
cannot be identified as spares. Only at a later date they are identified as
insurance spares. After capitalization these items identified as spares are
taken into normal inventory through MIGO- Y21. This transaction is already
explained above. Only thing to be noted here is that the material code will end
with 5 & value will be uploaded with zero Value.

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Material Return to Vendor:
Material can be returned to vendor can be done either from GR blocked stock
/ unrestricted use. Return from GR blocked stock will be through movement
type 104 using MIGO for the quantity to be rejected.
Excise Invoice for such returns may be or may not be captured in the system
as per the prevalent practice.
Return to Vendor after the stock has been taken into unrestricted use through
either 101 or 105 may be done by t-code MIGO giving reference of original
document ( 101, 105) against which material was recd. or deemed to have
been recd. System will automatically take the appropriate movement type as
122.

Put the return qty, reason for such movement, text in the appropriate field.
These field appear in the quantity and where tabs respectively

Save the document and note down the number.

NOTE: Please ensure from the vendor through FI invoice before goods are returned
to the vendor through above transaction.

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Material requirement planning:

Stock requirement list: The purpose of this procedure is to display the

Current Stock versus Requirement list for an individual item. This listing is
almost identical to the MRP List Display – for an Individual Material.
However, there is one key difference, and that is that this listing always will
show the CURRENT Date position in Planning, as against the MRP List
which will at all times show the positions at time of Planning. The MRP
controller uses the display function to review both MRP lists and stock
requirements list to analyze the requirements and decide on a course of action.

T-code : MD04

On the initial screen input as under:

Upon entering the will give the stock requirement list:

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This list gives all dependant requirements like opening stock, purchase orders,
stock transfers, reservations etc.

Upon clicking this will give material master data

To see the details of each dependant requirement click on icon this will
show the details as below:

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Upon clicking the spectacles icon this will take inside the corresponding
material document where this can be edited if required.

Material requirement planning:

T.Code: MD01 /MD03

Material requirement Planning (MRP) can be done at individual level and

collective level i.e. all material for the plant or by selection of group.

MD01 is used for running MRP at plant level or at Group level.

MD03 is used for running MRP at individual material level

This transaction is used to process materials requirement planning for

individual Materials Master. The purpose of the MRP run is to ensure that the
right material arrives at the right place at the appropriate time. The MRP run
is used to automatically generate planned orders or purchase requisitions
enabling the replenishment of stocks depleted by consumption and the
planning of known requirements identified by reservations. This procedure
deals with the MRP for a single material at a plant. Planned orders can be
automatically adjusted when the planning data changes.
There are three types of planning runs:
NEUPL - for regenerative planning: This method processes the complete
materials data base for a plant
NETCH- for net change planning: This method uses the planning file so that
MRP only processes materials that have changed.
NETPL - for net change in planning horizon: This method also uses the
planning file so it only processes materials that have changed. System creates
planned orders for reservations taking into consideration replenishment lead-
time and the required date of the reservation. It only works in conjunction
with the planning horizon that is defined as a number of workdays into the
future.

We normally use NETPL type planning only.

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Multiple groups can be selected by entering respective material groups as
shown above.

Upon prompting click enter.

The system shows the statistics as under.

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You can go to individual planning or requirement list by clicking respective
icon.

This will show MRP for individual material.

The planning is replenished to maximum stock when material goes below

ROP. It may be noted that it considers safety stock for the purpose of
calculation of availability but creates PR net of safety stock.

Display MRP list:

T.Code MD05

In this screen MRP list is displayed individually or collectively.

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In the selection screen either MRP controller (REF) or MRP date can be given
to see the MRP list.

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You can select the item go inside the planning details for the individual item
for reviewing.

Display stock requirement list collectively:

T.Code: MD07

The purpose of this procedure is to display a collective Stock versus

Requirement list of several Materials together. This list is almost identical to
the Collective Display of MRP List. The key difference is that here you see
the CURRENT as on date position of Planning as against the position as on
date of Planning in the case of MRP List. The MRP controller uses the display
function to review both MRP lists and stock requirements list to analyze the
requirements and decide on a course of action

In the initial screen you can input the MRP controller. You can restrict
selection in foreground or background.

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This will display the entire material for planning.

As you keep review the material this will flag the material by putting
green/ red button against that item.

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Complete description of material: T.code YM78
As the material description gets details partly from header data and partly
from item data, the complete viewing of material data can be taken by above
t-code.

Upon executing this will give:

Surplus check: T.code YMR120

One can check surplus material being indented in Purchase requisition by
using the above T.code.
Upon executing this gives:

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List of PO’s exceeding given value: t-code YMR137

This will give output as under:

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Lead time for PO: t-code YMR174
Lead time w.r.t PR and RFQ can be checked by executing above Report.

This will give output as

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Pending material PO summary: T.Code YMR176

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Logistics Information Systems:
Enables the user to get MIS on different attributes i.e. purchasing value,
inventory values, consumption, ABC analysis etc.

Plant stock analysis:

T.Code: MC.1

This gives reporting on Stock quantity, value, consumption, issues, and

receipts for a set of or all material for a given period.

On material type attribute:

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On material groups:

ABC analysis on value:

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OTHER IMPORTANT REPORTS:

T.CODE NAME OF THE REPORT

MMBE Stock overview
MB51 Material Document List
ME2N Purchasing Documents per document
number
ME4S RFQ’s per Collective Number
ME2L Purchasing Documents per Vendor
ME2M Purchasing Documents for Material
MB5B Stock on posting date
MM60 Material list
MB52 Display warehouse Stock of material
YMR92 MRP generated purchase Requisition
report
YM115 List of IC Items
YMR141 List PO Single tender or by Quotation
Comment
MB5T Stock in Transit

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