Sap MM End User Training Manual PDF

MATERIALS MANAGEMENT
End User Training Manual

Materials Management
SUBMITTED TO
Project Deep Roots

Version 1.0
Project Deep Roots User Training Guide, Version 1.0
Icons
Icon Meaning
Caution
Example
Note or Tip
Recommendation
Syntax
Abbreviations
R Required entry field

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

C Conditional field
N.A. Not Applicable

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Table of Contents
1 Purpose .................................................................................................................................... 3
1.1 Prerequisites .................................................................................................................. 3
1.2 Navigation & List of Favorites ........................................................................................ 3
1.2.1 Navigation .................................................................................................................. 3
1.2.2 Maintain List of favorites ............................................................................................ 3
1.2.3 Important Definitions .................................................................................................. 3
2 Master Data .............................................................................................................................. 3
2.1 Material Master .............................................................................................................. 3
2.1.1 Create Material Master .............................................................................................. 3
2.1.2 Change Material Master............................................................................................. 3
2.1.3 Display Material Master ............................................................................................. 3
2.1.4 Extend Material Master .............................................................................................. 3
2.2 Vendor Master................................................................................................................ 3
2.2.1 Create Vendor Master................................................................................................ 3
2.2.2 Change Vendor Master.............................................................................................. 3
2.2.3 Display Vendor Master............................................................................................... 3
2.2.4 Extend Vendor Master ............................................................................................... 3
2.3 Service Master ............................................................................................................... 3
2.3.1 Create Service Master ............................................................................................... 3
2.3.2 Create Model Service Specification........................................................................... 3
2.3.3 Create Model Service Specification with Outline Path .............................................. 3
2.4 Vendor Evaluation.......................................................................................................... 3
2.4.1 Maintain Vendor Evaluation ....................................................................................... 3
3 Purchasing................................................................................................................................ 3
3.1 Purchase Requisition (PR)............................................................................................. 3
3.1.1 Creating PR for Operational Material......................................................................... 3
3.1.2 Creating PR for Operational Material with Account Assignment- k ........................... 3
3.1.3 Creating PR for Project Material with Account Assignment- Q ................................. 3
3.1.4 Creating PR for Operational Material with Account Assignment- A .......................... 3
3.1.5 Creating PR for Operational Services with Account Assignment- k .......................... 3
3.1.6 Creating PR for Project Services with Account Assignment- P................................. 3
3.2 Releasing Purchase Requisition .................................................................................... 3
3.2.1 Individual Release of Purchase Requisition .............................................................. 3
3.2.2 Collective Release of Purchase Requisition .............................................................. 3
3.3 List Display of Purchase Requisition.............................................................................. 3
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3.4 Request for Quotation (RFQ) ......................................................................................... 3

3.4.1 Request for Quotation (RFQ) – For Material ............................................................. 3
3.4.2 Request for Quotation (RFQ) – For Services ............................................................ 3
3.4.3 Message output: RFQ................................................................................................ 3
3.5 Maintaining Quotation .................................................................................................... 3
3.5.1 Maintaining Quotation for Material............................................................................. 3
3.5.2 Maintaining Quotation for Services............................................................................ 3
3.6 Price Comparison........................................................................................................... 3
3.6.1 Price Comparison for Material ................................................................................... 3
3.6.2 Price Comparison for Services .................................................................................. 3
3.7 Creating Contract ........................................................................................................... 3
3.7.1 Creating Contract for Material.................................................................................... 3
3.7.2 Creating Contract for Services................................................................................... 3
3.8 Releasing Contracts....................................................................................................... 3
3.8.1 Release of Contract ................................................................................................... 3
3.9 Creating Scheduling Agreement .................................................................................... 3
3.9.1 Creating Scheduling Agreement for Material............................................................. 3
3.10 Releasing Scheduling Agreement.................................................................................. 3
3.10.1 Release of Scheduling Agreement ............................................................................ 3
3.11 Delivery Schedule .......................................................................................................... 3
3.11.1 Maintain Delivery Schedule for Material .................................................................... 3
3.12 Purchase Order .............................................................................................................. 3
3.12.1 Purchase Order for Procurement of Local Stock Material ........................................ 3
3.12.2 Creating Purchase Order for Procurement of Imported Material............................... 3
3.12.3 Purchase Order for Procurement of External Services ............................................ 3
3.13 Releasing Purchase Orders ........................................................................................... 3
3.13.1 Individual Release of Purchase Order ....................................................................... 3
3.13.2 Collective Release of Purchase Orders..................................................................... 3
3.13.3 Message Output......................................................................................................... 3
3.14 List Display of Purchase Order ...................................................................................... 3
3.14.1 Per Vendor ................................................................................................................. 3
3.14.2 Per Material................................................................................................................ 3
4 Inventory Management............................................................................................................. 3
4.1 Goods Receipt & Goods Issue....................................................................................... 3
4.1.1 Default Values............................................................................................................ 3
4.1.2 Goods Receipt against a Purchase Order ................................................................. 3
4.1.3 Display the Material & a corresponding Accounting Document & PO history ........... 3
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4.1.4 Initial Entry of Stock Balances ................................................................................... 3

4.1.5 Delivery Free of Charge............................................................................................. 3
4.1.6 GR Blocked Stock...................................................................................................... 3
4.1.7 Release the GR blocked stock .................................................................................. 3
4.1.8 Return Delivery w.r.t. a Material Document ............................................................... 3
4.1.9 Return Delivery w.r.t. a Purchase Order.................................................................... 3
4.1.10 Cancellation w.r.t. a Material Document .................................................................... 3
4.1.11 Date Checks in GR for a Purchase Order ................................................................. 3
4.1.12 Goods Issue............................................................................................................... 3
4.2 Transfer Postings & Stock Transfer ............................................................................... 3
4.2.1 Default Values............................................................................................................ 3
4.2.2 Stock Transfer between Storage Locations............................................................... 3
4.2.3 Stock Transfer between Plants using Stock Transport Order ................................... 3
4.3 Creation and Acceptance of Service Entry Sheet.......................................................... 3
4.3.1 Creation and Acceptance of Service Entry Sheet ..................................................... 3
4.3.2 Collective Release of Service Entry Sheet ................................................................ 3
4.4 List Display of Inventory ................................................................................................. 3
4.4.1 Stock Overview .......................................................................................................... 3
4.4.2 Warehouse Stock....................................................................................................... 3
4.5 Physical Inventory .......................................................................................................... 3
4.5.1 Create Physical Inventory Document ........................................................................ 3
4.5.2 Enter Physical Inventory Count ................................................................................. 3
4.5.3 Post Inventory Differences......................................................................................... 3
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1 Purpose
The purpose of End User Training Manual is to guide & describe the general steps required for
handling various transactions & manually processing various documents within the system
landscape.
1.1 Prerequisites
• All configuration must be completed in SPRO.
1.2 Navigation & List of Favorites

1.2.1 Navigation
Use
Logging on to the System & Initial Tasks. Log on to the system & carry out some basic exercises
in the system. The menu path refers to the SAP standard menu.
Procedure
1. Start the SAP Logon program.
2. Choose the entry for the SAP system.
3. Choose the Logon pushbutton.
4. Enter
A. Client
B. User Name
C. Initial Password
D. logon Language
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When you log on for the first time, enter a new password of your choice twice in the window that
appears.
In the course of one Logon to a system, you can open at the most 6 parallel sessions.
F1 Help: You can use the F1 key to display an explanation of fields, menus, functions &
messages.
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F4 Help: You can use the F4 key to display information on possible input values. You can also
call up the F4 help for a field using the button immediately to the right of the selected field.
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1.2.2 Maintain List of favorites
Use
Because you work with some documents frequently, it is a good idea to include these
transactions in a list of favorites.
Procedure
1. Following are the ways of including transactions in the favorites:
2. Drag & drop: Drag the desired transaction from the menu to your list of favorites.
3. Right mouse button: Right-click the required transaction and choose Add to Favorites.
4. in the standard toolbar: When you choose & then Add to Favorites, the
selected entry is copied.
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1.2.3 Important Definitions
Organizational Levels in the Procurement Process

1. Client: Client is the highest hierarchical level.
• Specifications or data saved at this level is applicable to all company codes & all
other units.
• User Master record must be created in the client.
• Defined by three – digit numeric key.
2. Company Code:
• Company is the smallest organizational unit of external accounting for which a
complete, self-contained book keeping system can be replicated.
• It is defined by four character alphanumeric key.
3. Plant: Plant is an organizational unit within logistics. Since the key of a plant is unique in
a client & a plant can only belong to one company code, by specifying the plant, you
simultaneously specify the company code. It is defined by four character alphanumeric
key.
4. Storage Location: Inventory management on a quantity basis is carried out in the plant
at storage location level. When you specify a storage location you always specify the
plant too. It is defined by four character alphanumeric key.
Purchasing Group & Purchasing Organization:

1. Purchasing Group:
• Internally responsible for procurement of material.
• Externally dealings with its vendors.
2. Purchasing Organization: is an organizational unit within logistics that subdivides the
enterprise according to the purchasing requirements.
Procurement Cycle:
1. Determination of Requirement- Purchase Requisitions – Manual &/ Or MRP
2. Determination of source of supply
3. Vendor Selection
4. Purchase Order handling
5. Purchase order monitoring
6. Goods Receipt
7. Invoice Verification
8. Payment Processing
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2 Master Data
2.1 Material Master
Use
The material master record is an enterprise’s main source of material –specific data. It is used by
all areas of logistics in the SAP R/3 system.
The integration of all material data in a single database object eliminates the problem of data
redundancy. All areas, such as purchasing, inventory management, materials planning, & invoice
verification, can jointly use the data stored.
Important Definitions
1. Material Type: Material with the same properties are assigned to the same material type.
Material type controls
• The type of Number Assignment (Internal or External)
• The permissible number range intervals.
• Which screen appear & in which order.
• Which user department-specific data is suggested for entry (in views).
• Which procurement type is allowed for a material.
• It determines which accounts are posted when a receipt or issue of material from
warehouse is booked.
2. Industry Sector: determines
• Which screens appear & in which order.
• Which industry –specific fields appear on each sectors.
3. Item Category:
• The item category enables you to replicate different procurement processes.
• The document type determines which item categories are available for selection.
• The item categories specifies whether a material number, an account assignment, a
goods receipt, & / or invoice receipt are possible or necessary for an item.
4. Valuation Class:
• Valuation class is maintained in Accounting View of the Material Master Record.
• In automatic account determination, the valuation class is used to determine which stock
account is to be updated during the goods movements of a material.
• The valuation class is a key used to group together materials with the same account
determination.
• The permissible valuation classes depend on the material type.
5. Reorder Point Planning: Automatically Reorder point is decided by MRP controller.
• Automatically Reorder based on forecast.
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• The system checks available stock for MRP (sum of plant stock & fixed receipts).
6. Moving Average Price:
• In valuation using the moving average price, the system valuates goods receipts with the
P.O. price & goods issues with the current moving avg. price.
• Moving Average Price = Total Stock Value/ Total Stock Quantity
• Any differences from the P.O. price that occur during the invoice receipt are posted
directly to the stock account during stock coverage, & the system determines a new
moving average price.
7. Fixed Order Quantity:
• The system creates an order proposal for the fixed lot size in the case of a material
shortage.
• If this order quantity is not sufficient to cover the shortage, the system generates several
order proposals for the same date until the shortage is covered.
8. Replenish Quantity:
• If you select replenish to maximum stock level & a material shortage occurs, the system
creates an order proposal for the quantity required to bring the stock level up to the
maximum stock level that is recorded in the material master record.
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2.1.1 Create Material Master
Procedure
1. Access the activity using one of the following navigation options:
Transaction Code MM01
IMG Menu Logistics Materials Management Material Master
Material Create (General) Immediately
2. Enter the data on the Initial screen. Then choose , with the quick-info text enter.
Field name R/O/C Note
Material O Leave blank. Number assigned by system.
Industry Sector R Only H- Hotel is available.
Material Type R Use pull down to select or F4 button.
Change Number C
Copy from Material O For reference
3. Select the following views on the Select Views screen. Then choose , with the quick-
info text enter.
Basic Data 1 R
Purchasing R
Purchase Order Text O
MRP1 O
MRP2 O
MRP3 O
Plant Data Storage 1 O
Accounting 1 R
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4. Enter the data In the Organizational Levels dialog box. Then choose , with the quick-
info text enter.
Plant R
Storage Location O
5. Enter the data In the Basic Data screen. Then choose , with the quick-info text enter.
Basic Data
Material Description R
Base Unit of Measure R Use pull down to select or F4 button.
Conversion Unit O Use pull down to select or F4 button.
Material Group R Use pull down to select or F4 button.
Net Weight O
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Unit of Weight O
Old Material Number O
6. Enter data in the remaining views selected. To get to the next view in each case, choose
, with the quick-info text enter.
Purchasing View R
Purchasing Group R Use pull down to select or F4 button.
GR Processing Time O
Order Unit O Use pull down to select or F4 button.
Purchase Order Text View O
MRP 1 View O
MRP Group R Use pull down to select or F4 button.
MRP Controller R Use pull down to select or F4 button.
MRP Type R Use pull down to select or F4 button.
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Reorder Point R Use pull down to select or F4 button.
Lot Type R Use pull down to select or F4 button.
Fixed Lot Size C
Maximum Lot Size C
MRP 2 View O
Planned Delivery Time R
Safety Stock R
MRP 3 View O
Availability Check R Use pull down to select or F4 button.
Plant Data / Storage 1 O
Max. Storage Period O
Min. Rem. Shelf Life O
Total Shelf Life O
Accounting 1 R
Valuation Class R Use pull down to select or F4 button.
Proj. Stk. Val. Class R Use pull down to select or F4 button.
Moving Price R
Std. Price R
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7. Choose , with the quick info text Save or Click Yes button.
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2.1.2 Change Material Master
Procedure
Material Change Immediately
Material R
Change Number O
info text enter.
Basic Data 1 O
Purchasing O
MRP1 O
MRP2 O
MRP3 O
Accounting 1 O
info text enter.
Plant R
Storage Location O
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5. Change the data to be changed. Then choose , with the quick-info text enter to get on
next view.
6. Choose , with the quick info text Save to save changed data.
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2.1.3 Display Material Master
Procedure
Material Display Display Current
Material R
info text enter.
Basic Data 1 O
Purchasing O
MRP1 O
MRP2 O
MRP3 O
Accounting 1 O
info text enter.
Plant R
Storage Location O
5. Choose , with the quick-info text enter to get to the next view.
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2.1.4 Extend Material Master
Procedure
Material Create (General) Immediately
Material O Leave blank. Number assigned by system.
Industry Sector R Only H- Hotel is available.
Material Type R Use pull down to select or F4 button.
Change Number C
Copy from Material R For reference
info text enter.
Basic Data 1 R
Purchasing R
MRP1 O
MRP2 O
MRP3 O
Accounting 1 R
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info text enter.
Plant R
Storage Location O
Copy from
Plant R
Storage Location O
5. Change data in the following views selected if required. To get to the next view in each
case, choose , with the quick-info text enter.
Purchasing View R
Purchasing Group R Use pull down to select or F4 button.
GR Processing Time O
Order Unit O
MRP 1 View O
MRP Controller R Use pull down to select or F4 button.
Reorder Point R Use pull down to select or F4 button.
Lot Type R Use pull down to select or F4 button.
Fixed Lot Size C
Maximum Lot Size C
MRP 2 View O
Planned Delivery Time R
Safety Stock R
MRP 3 View O
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Availability Check R Use pull down to select or F4 button.
Plant Data / Storage 1 O
Max. Storage Period O
Min. Rem. Shelf Life O
Total Shelf Life O
Accounting 1 R
Moving Price R
Std. Price R
6. Choose , with the quick info text Save.
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2.2 Vendor Master

Use
The vendor master record contains information on an enterprise’s vendors. The vendor master
record is maintained by both purchasing and accounting. The data in the vendor master record is
subdivided into the following categories:
a. General data: is valid for the whole client. It includes address & bank details, for
example.
b. Accounting data: maintained at company code level. It comprises data such as
the number of the reconciliation account & the payment methods for automatic
payment transactions.
c. Purchasing data: maintained for each purchasing organization. It includes the
purchase order currency, Inco terms, & various control data pertaining to the
vendor.
1. Account Group: decide which account group you are going to assign to the vendor
It controls
• The screens & fields that are needed for the relevant role of your business partner
appear & are ready to accept user input.
• The type of number assignment.
• Field selection- Which fields are ready for user input. Which field must be maintained.
Which fields are hidden.
• The status- vendor or one time vendor.
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2.2.1 Create Vendor Master
Procedure
Transaction Code XK01
IMG Menu Logistics Materials Management Purchasing Vendor
Central Create
Vendor Leave blank. Number assigned by system.
Company Code R RCL1is the only value to be used.
Purchasing Organisation R Use pull down to select or F4 button.
Account Group R Use pull down to select or F4 button.
Reference C
Vendor O Use pull down to select or F4 button.
Company Code O RCL1is the only value to be used.
Purchasing Organisation O Use pull down to select or F4 button.
3. Enter data in the views selected. To get to the next view in each case, choose , with
the quick-info text enter.
Create Vendor: Address R
View
Title R
Name R
Serch Term O
Street O
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Street 2 O
Street 3 O
Street 4 O
Street 5 O
House No. O
District O
Postal Code R
City O
Country R Use pull down to select or F4 button.
Region O Use pull down to select or F4 button.
Language R
Teleohone O
Mobile No. O
Fax O
Email O
Create Vendor: Accounting R
Information Accounting
View
Rec. Account R Use pull down to select or F4 button.
Create Vendor: Payment R
Transaction Accounting
View
Payment Terms R Use pull down to select or F4 button.
Home Bank R
Create Vendor: Purchasing C
Data View
Order Currency R Use pull down to select or F4 button.
Terms of Paymnt O Use pull down to select or F4 button.
Incoterms O Use pull down to select or F4 button.
Schema Group, Vendor R Use pull down to select or F4 button.
G.R. based inv. Verify. O
Planned Delivery Time O
SRV_BASED_IV O
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2.2.2 Change Vendor Master
Procedure
Central Change
2. Enter the data on the Initial screen. Select data to be changed then choose , with the
quick-info text enter.
Vendor R Use pull down to select or F4 button.
General Data C
Address O
Control O
Payment Transactions O
Company Code Data O
Accounting Info O Use pull down to select or F4 button.
Payment Transactions O Use pull down to select or F4 button.
Correspondance O
Withholding Tax O Use pull down to select or F4 button.
Purchasing O
Organisation Data
Purchasing Data O
Partner Functions O
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3. Change the data to be changed. Then choose , with the quick-info text enter to get on
next view.
4. Choose , with the quick info text Save to save changed data.
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2.2.3 Display Vendor Master
Procedure
Central Display
2. Enter the data on the Initial screen. Select data to be displayed then choose , with the
General Data C
Address O
Control O
Payment Transactions O
Company Code Data O
Accounting Info O Use pull down to select or F4 button.
Payment Transactions O Use pull down to select or F4 button.
Correspondance O
Withholding Tax O Use pull down to select or F4 button.
Purchasing O
Organisation Data
Purchasing Data O
Partner Functions O
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3. Choose , with the quick-info text enter to get to the next view.
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2.2.4 Extend Vendor Master
Procedure
Central Create
Account Group R Use pull down to select or F4 button.
Reference
3. If required change the data on Purchasing Organization View. Choose , with the
Create Vendor: Purchasing C
Data View
Order Currency O Use pull down to select or F4 button.
Terms of Paymnt O Use pull down to select or F4 button.
Incoterms O Use pull down to select or F4 button.
Schema Group, Vendor O Use pull down to select or F4 button.
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G.R. based inv. Verify. O
Planned Delivery Time O
SRV_BASED_IV O
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2.3 Service Master

Use
The service master record belongs to the master data & serves as a source of data that can be
used when you create service specifications. By using service master records, you can reduce
the amount of time needed for this activity, as well as the occurrence of errors. This is because
you need to enter the service specifications completely once only in the service master record.
2.3.1 Create Service Master
Procedure
Transaction Code AC03
IMG Menu Logistics Materials Management Service Master
Service Service Master
2. Enter the data in the following field.

Service Number C Leave blank. Number assigned by system.
Short Text of R
Service Category R Use pull down to select or F4 button.
Base Unit of Measure R Use pull down to select or F4 button.
Service Group R Use pull down to select or F4 button.
Purchase Status - OK O
Valid From R Use pull down to select or F4 button.
Long Text of Service O RCL1is the only value to be used.
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2.3.2 Create Model Service Specification
Procedure
Transaction Code ML10
IMG Menu Logistics Materials Management Service Master Model
Service Specifications Create
2. Enter the data on the Initial screen. Then choose , with the quick-info text enter or .
Model service spec R Enter the alphanumeric value.
3. Enter the data on the Create Model Service Specifications” screen. Then choose
button.
Description R Enter the description.
Search Term R Enter the search term.
Currency R Use pull down to select or F4 button.
Pur. Organisation O Use pull down to select or F4 button.
Fixed Vendor O Use pull down to select or F4 button.
Contract O Use pull down to select or F4 button.
Purchasing Status O
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4. Maintain the services.

Service Number R Use pull down to select or F4 button.
Quantity O
Gross Price O
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2.3.3 Create Model Service Specification with Outline Path
Procedure
Transaction Code ML10
IMG Menu Logistics Materials Management Service Master Model
Service Specifications Create
Model service spec R
3. Enter the data on the Create Model Service Specifications” screen. Then choose
button.
Search Term R Enter the search term.
Currency R Use pull down to select or F4 button.
Pur. Organisation O Use pull down to select or F4 button.
Fixed Vendor O Use pull down to select or F4 button.
Contract O Use pull down to select or F4 button.
Purchasing Status O
4. Click Outline On/Off button. Right Click on Description of MSSpec. Select New
Subgroup. Enter data & then choose , with the quick-info text enter.

Outline Level R Enter the level.
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5. Select Outline Level & Click button.
6. Select Model serv. Sel. & select services. Click Adopt Services button.
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2.4 Vendor Evaluation

Use
The Vendor Evaluation component helps select sources of supply and facilitates the continual
monitoring of existing supply relationships. It provides accurate information on prices, and terms
of payment and delivery. By evaluating vendors, enterprise's competitiveness can be improved.
On the basis of detailed information, and in collaboration with the relevant vendors, you can
quickly identify and resolve any procurement problems that may crop up from time to time can be
quickly identified and resolved.
2.4.1 Maintain Vendor Evaluation
Procedure
Transaction Code ME61
IMG Menu Logistics Materials Management Purchasing Master
Data Vendor Evaluation Maintain
2. Enter the data in following field of the “Maintain Vendor Evaluation: Initial Screen”. Then
click button.
Purch. Organization R Use pull down to select or F4 button.
3. Enter the data in following field of the “Maintain Vendor Evaluation: Overview of Main
Criteria” screen. Then click button.

Evaluation Data
Weighting Key R Only ‘01’-Equal Weighting to be used.
Deletion Indicator O Do not click this to keep history of Vendor
Evaluation.
Evaluation of Main Criteria
Price R Select for Material as well as Service Provider.
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Delivery C Select for Material Provider only.
Service C Select for Service Provider only.
Quality C Select for Material as well as Service Provider.
4. Click button for “Price , Delivery & Service” criteria. Then click
button. Score will come automatically.
5. For “Quality” criteria enter score manually.
6. Click back button for going main screen. Overall score along with main criteria score
will come.
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3 Purchasing
3.1 Purchase Requisition (PR)
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.
This transaction is optional for the process.
3.1.1 Creating PR for Operational Material
Procedure
1. Access the transaction choosing one of the following navigation options:
Transaction code ME51N
SAP R/3 menu Logistics Materials Management Purchasing Purchase
Requisition Create
2. On the Create Purchase Requisition screen, make the following entries:

Field name Description R/O /C User action and values Comment
Shopping Document Type R ZOPM
cart symbol
Purchase Number that uniquely O Leave blank. Number
requisition identifies a requisition assigned by system.
Source Flag that determines O

determi- whether automatic
nation sourcing of materials
from a vendor is to be
used
Item Over
view Icon
Item Serialized item R Leave blank, system
numbers defaulted.
Account key specifying whether O Leave blank for

assignment accounting for an item this process
is to be effected via an
auxiliary Account
Item Denotes specific O
Category features of an item
(example - material is
consignment)
Material Name or number that R Enter material code
uniquely identifies a
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material
Short Text Description of Material O Defaulted from
material
master
Quantity Quantity requisitioned R Enter number of units
required
Unit Unit of measure in R Defaults from material

which the requested master
material is to be
ordered
C Category of delivery R Select from the drop-down Defaulted by
date (indicates list the system
whether the date
format is day, week or
month)
Delivery date Date on which the R Enter the date on which
goods are to be material is required
delivered. If delivery
date is sooner than
the system calculated
lead time, a warning
will be issued
Material Grouping of several R Enter material group code
group materials with similar
features
Plant Plant requiring material R Enter plant where material
is to be shipped to
Storage Key for determining O

location storage location for a
specific plant
Purchasing The Buyer responsible R Identify the buyer who will Defaulted from
Group for purchasing the purchase material master
specific material if entered.
requisition/item
Requisitioner Indicates for whom O
the material is
ordered
Tracking This number can be O
number used to facilitate the
monitoring of material
procurement
Des. Vendor Desired vendor from O
which material
required
Fixed Fixed vendor is O
Vendor maintained for this
material
SPlt Supplying plant O Used incase of stock
transport order
POrg Purchase O
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Organization
Agreement Agreement number O Enter if Purchase In this process
Requisition is created enter
against contract agreement
number is
created in
above step
Item Agreement item O Enter if Agreement Item In this process
number number Purchase enter
Requisition is created agreement
against contract item number
3. To assign the contract as source of supply Choose Item Details icon or Choose Control + F4
and select Source of supply tab on it.
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4. Here Choose Assign source of supply on this tab and system will automatically assign
contract to this purchase requisition.
5. Choose to Save or Choose Control + S.
Page 51 of 194
3.1.2 Creating PR for Operational Material with Account

Assignment- k
Procedure
Requisition Create

cart symbol

used
Item Over
view Icon
numbers defaulted.
Acct. Account where costs C K for cost center For cost center
assignment are allocated
category For a consumable
material. For a stock
material it is not
required
consignment)
material
Short Text Description of Material O Required for materials with Defaulted from
no material master material
master
required

material is to be
Page 52 of 194
ordered
whether the date
month)
date is sooner than
will be issued
features
is to be shipped to

specific plant
requisition/item
G/L Account Key for determining R
G/L account for a
specific cost center
Cost Center Description of Cost R
Center
Internal Description of R
Order No. Internal Order No.
. the material is
ordered
procurement
which material
required
material
transport order
POrg Purchase O
Organization
Page 53 of 194

number is
created in
above step
Page 54 of 194
3.1.3 Creating PR for Project Material with Account

Assignment- Q
Procedure
Requisition Create

Shopping Document Type R ZPRM
cart symbol

used
Item Over
view Icon
numbers defaulted.
Acct. Account where costs C Q For Project
material it is not
required
consignment)
material
master
required

material is to be
Page 55 of 194
ordered
whether the date
month)
date is sooner than
will be issued
features
is to be shipped to

specific plant
requisition/item
G/L account for a
WBS Description of R
Element Internal Order No.
. the material is
ordered
procurement
which material
required
material
transport order
POrg Purchase O
Organization
Page 56 of 194
number is
created in
above step
Page 57 of 194
3.1.4 Creating PR for Operational Material with Account

Assignment- A
Procedure
Requisition Create

cart symbol

used
Item Over
view Icon
numbers defaulted.
Acct. Account where costs C A for Asset For Asset
material it is not
required
consignment)
material
master
required

material is to be
Page 58 of 194
ordered
whether the date
month)
date is sooner than
will be issued
features
is to be shipped to

specific plant
requisition/item
G/L account for a
Cost Center Description of Cost R
Center
Internal Description of R
Order No. Internal Order No.
. the material is
ordered
procurement
which material
required
material
transport order
POrg Purchase O
Organization
Page 59 of 194

number is
created in
above step
Page 60 of 194
3.1.5 Creating PR for Operational Services with Account

Assignment- k
Procedure
Requisition Create

Shopping Document Type R ZOPS
cart symbol

used
Item Over
view Icon
numbers defaulted.
Acct. Account where costs C K for cost center For cost center
material it is not
required
Item category Type of purchase C D for Service For Service
Material Name or number that O Leave blank.
material
Short Text Description of Material R Required for materials with Defaulted from
master
required

material is to be
ordered
Page 61 of 194
whether the date

month)
date is sooner than
will be issued
features
is to be shipped to
Storage Key for determining O Leave blank.

specific plant
Purchasing The Buyer responsible R Identify the buyer who will
Group for purchasing the purchase
specific material
requisition/item
. the material is
ordered
procurement
which material
required
material
transport order
POrg Purchase O
Organization
number is
created in
above step
Item Details Item Details
Select
Services tab
Page 62 of 194
Service Service master record R Select the service you have

number number created in above step
Short text Short text R Defaulted from service

master
Quantity Quantity R For one year
contract
Unit of Unit of measurement R Defaulted from service
measurement master
Gross price Gross price per unit of R
measurement selected
in service master
Select
Account
assignment
tab
G/L Account G/L Account R
CO Area Controlling area R Defaulted by system
Cost Center Cost Center R Select from drop

down list
Internal R Select from drop
Order down list
Number
Page 63 of 194
Page 64 of 194
3.1.6 Creating PR for Project Services with Account

Assignment- P
Procedure
Requisition Create

Shopping Document Type R ZPRS
cart symbol

used
Item Over
view Icon
numbers defaulted.
Acct. Account where costs C P for Project For Project
material it is not
required
Material Name or number that O Leave blank.
material
Short Text Description of Material R Required for materials with Defaulted from
master
required

material is to be
ordered
Page 65 of 194

whether the date
month)
date is sooner than
will be issued
features
is to be shipped to
Storage Key for determining O Leave blank.

specific plant
Purchasing The Buyer responsible R Identify the buyer who will
Group for purchasing the purchase
specific material
requisition/item
. the material is
ordered
procurement
which material
required
material
SPlt Supplying plant O Used in case of stock
transport order
POrg Purchase O
Organization
number is
created in
above step
Item Details Item Details
Select
Page 66 of 194
Services tab
number number created in above step

master
Quantity Quantity R For one year
contract
measurement master
Gross price Gross price per unit of R
in service master
Select
Account
assignment
tab
G/L Account G/L Account R
Cost Center Cost Center R Select from drop

down list
WBS R Select from drop
Element down list
Page 67 of 194
3.2 Releasing Purchase Requisition

Use
You have to release a purchase requisition before proceeding with the next transaction.
3.2.1 Individual Release of Purchase Requisition
Procedure
Requisition Release Individual Release
2. Choose on the icon to input the Purchase Requisition number and choose Other
Document icon, On the Release Purchase Requisition 2100000## screen, choose on
Change (F7) icon and make the entries as the following steps:
3. Since the Purchase Requisition 21000000## has release strategy, you will find new tab
Release Strategy on item details of purchase requisition screen.
4. You can release document at item level or in entirety by one of two ways.
5. Select all items by using Select All button. Then click Release button.
6. Go to the Release Strategy tab page on item details of purchase requisition and do the
following operations.
Page 68 of 194
7. You will find Release Code XX, beside yellow light and beside Release Options icon.
8. To release the purchase requisition, choose Release options. A message appears,
indicating that Release effected with release code xx.
Page 69 of 194
3.2.2 Collective Release of Purchase Requisition
Procedure
Transaction code ME55
Requisition Release Collective Release
2. On the Release (Approve) Purchasing Document screen, make the following entries:
Field name Description R/O/C User action and values Comment
Release R
Code
Release Release Group R Choose from drop down
Group menu.
Purchasing Identifier allowing O Choose from drop down
Document differentiation between menu.
Category the various kinds of
purchasing document
in the SAP system
Purchasing Purchasing O Choose from drop down
Organization Organization # menu.
Document Purchasing document O Choose from drop down
Number Number menu
Document Identifier allowing O Choose from drop down

Type differentiation between menu
the various kinds of
purchasing document
in the SAP system
Purchasing Purchasing Group # O Choose from drop down
Group menu.
Vendor Vendor # O Choose from drop down
menu
Supplying Supplying Plant # O Choose from drop down
Plant menu
Document Date on which the O Enter Document date or
Date purchasing document choose from drop down
was created. menu
Page 70 of 194
3. Choose the Execute.

4. On screen Release Purchasing Document select the appropriate Document number and
perform the following:
• Choose Release and/or
• Choose Release & Save/or
• Choose Cancel Release.
5. Choose Save button.
Page 71 of 194
3.3 List Display of Purchase Requisition

Procedure
Transaction code ME5A
Requisition List Displays General
Purchase Enter Preq Number O Choose from drop down
Requisition menu.
Group menu.
Material Material Number # O Choose from drop down
menu.
Material Material Group # O Choose from drop down
Group menu.
Requirement O Choose from drop down
Tracking menu.
Number
Scope of list ALV R Choose from drop down
menu.
Plant Plant Number O Choose from drop down
menu.
purchasing document
in the SAP system
Item category Material or Service O Choose from drop down
menu.
Account Account Assignment O Choose from drop down
Assignment category menu.
category
Delivery Date Delivery Date before O Choose from drop down
which material / menu.
services are delivered.
Release Date Date before which O Choose from drop down
documents released menu.
Materials Mainly MRP controller O Date before which
planner / documents released
Controller
Page 72 of 194
Processing What actions are O Choose from drop down

status taken on the Pur. menu.
Requisition.
Fixed vendor Name of Vendor O Choose from drop down
menu.
PReq. Status of PReq- O Choose from drop down
Processing released, delivered etc menu.
state
Blocking Blocked PReq O Choose from drop down
indicator menu.
Requisitioner Name of Requisitioner O Choose from drop down
menu.
Short Text Short text if any O
Sort Indicator Value must be 1 R Choose from drop down
menu.
Cost Center Enter Cost Center O Choose from drop down
menu.
WBS element Enter Order Number O Choose from drop down
menu.
Order Enter Order Number O Choose from drop down
menu.
Asset Enter Asset Number O Choose from drop down
menu.
Asset sub Enter Asset sub O Choose from drop down
number Number menu.
Network N.A.
Operation N.A.
number
Sales order N.A.
Sales order N.A.
item
Select any one of following options.
Assigned O
purchase
requisitions
Closed O
requisitions
“Partly O
ordered“
requisitions
Released O
requisitions
only
Page 73 of 194
Requisitions O
for overall
release
Requisitions. R
F. item-wise
release
3. Choose the Execute. & click exit button.
Page 74 of 194
3.4 Request for Quotation (RFQ)

Use
Request for Quotation is used to float enquiries in market to obtain quotations from prospective
vendors.
1. Collective Number: You can link several RFQs that belong together using a collective number
in the header data. The collective number can have a maximum of ten characters & can be
alphanumeric.
3.4.1 Request for Quotation (RFQ) – For Material

Procedure
SAP R/3 menu Logistics Material Management Purchasing
RFQ/quotation Request for Quotation Create
2. On the Create RFQ: Initial Screen, make the following entries:
RFQ Type Default is ‘ZMTA’ - R Enter RFQ type
MATERIAL RFQ
RFQ Date Default is creation R May be changed if required The RFQ can be
date created for
future issuance.
Note that SAP
will release it on
that date without
notification.
Quotation The due date for R Enter the due date in the If the deadline is
Deadline vendor quotations date format assigned in the stated as a date
system after the
required delivery
date, the user
will be given an
error message
when the
delivery date is
entered.
RFQ Externally numbered C Not allowed, user can not Not
RFQ numbers assign RFQ number. Note: recommended.
each vendor’s RFQ is “Collective
assigned a separate number” of
Page 75 of 194
number. subsequent
screen is an
effective means
to capture and
track RFQs.
Purchasing Purchasing R Enter or select Purchasing
Org. Organization Org. from table
responsible for RFQ
Purchasing Buyer or Buying group R Enter or select Purchasing

group Identifier group number from table
Item Key defining how the R Leave it blank for this

Category procurement of a scenario
material or service
item is controlled.
Delivery Date Date on which the O Enter delivery date
goods are to be
delivered or the
service is to be
performed.
Plant Key for a production O Enter Plant
facility or branch office
within the company
(that is, company
code).
Storage Number of the storage O Enter Storage Location
Location location where the
material is stored. A
plant may contain one
or more storage
locations.
Material Key that you use to O Enter material group or use Defaulted from
Group group together several match code material master
materials or services record
with the same
attributes, and to
assign them to a
particular material
group.
Requirement Number that facilitates O Enter requirement tracking
Tracking monitoring of the number
number procurement process
for required materials
or services. This
number can relate to
an external "need
note" (notice of
requirements) that was
not generated in the
system.
Page 76 of 194
3. On screen Create RFQ: Item Overview, enter information in the fields as specified in the
table
Item Number that uniquely R Defaults - Line items are No User Action
identifies an item defined by the system in
within the RFQ increments of 10.
I Item Category - R Enter or select from table. No User Action
determines if standard Default is
purchase or other Blank - standard purchase
such as 3rd party
order, etc.
Material Material Number R Enter material number All stock
material must
have material
numbers
Short Text Short Description of N.A. Defaulted in from material
Material master
RFQ Quantity Quantity of Material R Must be numeric
requested for
quotation
C Category of delivery R Select from the drop-down
date (indicates list
whether the date
month)
Delivery Date Date required if R Must be in correct date
ordered format
Material Group of material N.A. Defaulted in from material
which this material
Page 77 of 194
Group belongs master

Plant Plant where material is O Enter or select Plant from
required table.
Note: the material master
must exist for that plant.
Sloc Storage Location O Enter Storage Location Strictly optional.

where material will
Storage
be delivered and Location may be
stored if ordered entered later at
the time of P.O.
creation
4. Choose the header details icon on the toolbar, then on screen Create RFQ: Header
Data, enter information in the fields as specified in the table below:
RFQ RFQ number R System will display saved Grayed out
document number unless
externally assigned
Company Company code R Defaulted by the system Grayed out
code
Purchasing Purchasing group R Supplied from initial screen Grayed out
group
RFQ type RFQ type R Supplied from initial screen Grayed out
Purch. Org Purchase organization R Supplied from initial screen Grayed out
Vendor Vendor number C Will be displayed if vendor Grayed out
number was added before
this step.
RFQ date RFQ date R Supplied from initial screen Grayed out
Item interval Item interval R Supplied by system
Coll. No. Collective number O Enter a number to track
vendors of the same RFQ
Language Language R Supplied from initial screen
Qout. Dead. Quotation deadline R Supplied from initial screen
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Validity start Validity start O Enter date quotation will

start
Validity end Validity end O Enter date quotation will
end.
Applic. By Application date O Enter closing date of Bids
Warranty Warranty O Enter warranty information
Bindg. Per. Binding period O Enter date period is binding
Target val Target Value O Enter total value of all
materials that can be
released.
Your Your reference O Enter Vendors reference
reference number/name
Salesperson Salesperson O Enter Salesperson name
Our Our reference O Enter your reference
Telephone Telephone O Enter telephone #
5. Choose the vendor address button on the toolbar, then on screen Create RFQ:
Vendor Address, enter information in the fields as specified in the table below:
Vendor Vendor code R Enter valid vendor code
Title Possible titles are O Enter title or use match Defaulted from
stored in a check code vendor master
table. They are record
language dependent.
Name Vendor Name C Up to 4 lines available Defaulted from
vendor master
Page 79 of 194
Search Term This field contains only O Enter search terms Defaulted from
1&2 upper-case letters. All vendor master
entries are
automatically
converted to upper-
case letters. There
are two of these fields
for search terms.
Street & Street address and/or C Defaulted from
House # House # vendor master
Postal Code Postal code and city / C Defaulted from
& City town / village vendor master
Country Name of country C Table validated / selection Defaulted from
vendor master
Region In some countries, the C Table validated / selection Defaulted from
region forms part of vendor master
the address. The
meaning depends on
the country.
PO Box Post Office Box C Defaulted from
Number vendor master
Postal Code Zip Code / Postal C Defaulted from
Code vendor master
Company Postal code, which is C Defaulted from
Postal Code assigned directly to a vendor master
company. This field is
used in countries in
which large companies
can have their own
postal code.
Language Language C Defaulted from
vendor master
Telephone Telephone # C Defaulted from
vendor master
Fax Fax # C Defaulted from
vendor master
Page 80 of 194
6. Choose Save button 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.
Page 81 of 194
3.4.2 Request for Quotation (RFQ) – For Services
Procedure
SAP R/3 menu Logistics Material Management Purchasing
RFQ/quotation Request for Quotation Create
2. On the Create RFQ: Initial Screen, make the following entries:
RFQ Type Default is ‘ZSTA’ - R Enter RFQ type - ZSTA
SERVICE RFQ
RFQ Date Default is creation R May be changed if required The RFQ can be
date created for
future issuance.
Note that SAP
will release it on
that date without
notification.
Quotation The due date for R Enter the due date in the If the deadline is
Deadline vendor quotations date format assigned in the stated as a date
system after the
required delivery
date, the user
will be given an
error message
when the
delivery date is
entered.
RFQ Externally numbered C Not allowed, user can not Not
RFQ numbers assign RFQ number. Note: recommended.
each vendor’s RFQ is “Collective
assigned a separate number” of
number. subsequent
screen is an
effective means
to capture and
track RFQ’s.
Purchasing Purchasing R Enter or select Purchasing
Org. Organization Org. from table
responsible for RFQ
Purchasing Buyer or Buying group R Enter or select Purchasing

group Identifier group number from table
Item Key defining how the R Leave it blank for this

Category procurement of a scenario
material or service
Page 82 of 194
item is controlled.
Delivery Date Date on which the O Enter delivery date
goods are to be
delivered or the
service is to be
performed.
Plant Key for a production O Enter Plant
facility or branch office
within the company
(that is, company
code).
Storage Number of the storage O Leave it blank, since we are
Location location where the procuring services only.
material is stored. A
plant may contain one
or more storage
locations.
Material Key that you use to O Leave it blank for this
Group group together several scenario
materials or services
with the same
attributes, and to
assign them to a
particular material
group.
Requirement Number that facilitates O Enter requirement tracking
Tracking monitoring of the number
number procurement process
for required materials
or services. This
number can relate to
an external "need
note" (notice of
requirements) that was
not generated in the
system.
3. On screen Create RFQ: Item Overview, enter information in the fields as specified in the
table
within the RFQ increments of 10.
I Item Category - R Enter or select from table.
determines if standard D-Service Purchase
purchase or other
such as 3rd party
order, etc.
Material Material Number N.A. Leave it blank, since we are
procuring services only.
Page 83 of 194
Short Text Short Description of R Enter description of main

Service service.
RFQ Quantity Quantity of Service R Must be numeric
requested for
quotation
C Category of delivery R Select from the drop-down
date (indicates list
whether the date
month)
Delivery Date Date required if R Must be in correct date
ordered format
Material / Group of service which R Select from the drop-down
Service this service belongs list
Group
Plant Plant where service is O Enter or select Plant from
required table.
Sloc Storage Location N.A. Leave it blank, since we are

where material will procuring services only.
be delivered and
stored if ordered
4. Choose the services details icon on the toolbar, then on screen Create RFQ:
Header Data, enter information in the fields as specified in the table below: or select
Model Service Specifications.
Service Service number R Enter servicel number.
Quanity Quantity of Service R Must be numeric.

requested for
quotation
Model Ser. Description O Enter / Select Mod. Serv.
Spec. Spec. & hence services
maintained in it.
5. Choose the header details icon on the toolbar, then on screen Create RFQ: Header
Data, enter information in the fields as specified in the table below:
RFQ RFQ number R System will display saved Grayed out
document number unless
externally assigned
Company Company code R Defaulted by the system Grayed out
Page 84 of 194
code
Purchasing Purchasing group R Supplied from initial screen Grayed out
group
RFQ type RFQ type R Supplied from initial screen Grayed out
Purch. Org Purchase organization R Supplied from initial screen Grayed out
Vendor Vendor number C Will be displayed if vendor Grayed out
number was added before
this step.
RFQ date RFQ date R Supplied from initial screen Grayed out
Qout. Dead. Quotation deadline R Supplied from initial screen
start
end.
Target val Target Value O Enter total value of all
materials that can be
released.
6. Choose the vendor address button on the toolbar, then on screen Create RFQ:
Vendor Address, enter information in the fields as specified in the table below:
Vendor Vendor code R Enter valid vendor code
INJ81V01
Title Possible titles are O Enter title or use match Defaulted from
stored in a check code vendor master
table. They are record
language dependent.
Name Vendor Name C Up to 4 lines available Defaulted from
vendor master
Page 85 of 194
Search Term This field contains only O Enter search terms Defaulted from
1&2 upper-case letters. All vendor master
entries are
automatically
converted to upper-
case letters. There
are two of these fields
for search terms.
Street & Street address and/or C Defaulted from
House # House # vendor master
Postal Code Postal code and city / C Defaulted from
& City town / village vendor master
Country Name of country C Table validated / selection Defaulted from
vendor master
Region In some countries, the C Table validated / selection Defaulted from
region forms part of vendor master
the address. The
meaning depends on
the country.
PO Box Post Office Box C Defaulted from
Number vendor master
Postal Code Zip Code / Postal C Defaulted from
Code vendor master
Company Postal code, which is C Defaulted from
Postal Code assigned directly to a vendor master
company. This field is
used in countries in
which large companies
can have their own
postal code.
Language Language C Defaulted from
vendor master
Telephone Telephone # C Defaulted from
vendor master
Fax Fax # C Defaulted from
vendor master
7. Use button 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.
Page 86 of 194
3.4.3 Message output: RFQ
Use
A RFQ needs to be printed for transmitting to vendor.
Procedure
Transaction code ME9A
SAP R/3 menu Logistics Materials Management Purchasing
RFQ/Quotation Request for Quotation Messages
Print/Transmit
2. On the Message Output screen, make the following entries:
Purch. Doc.
Data
Document RFQ # O Choose from drop down
Number menu
60000000##
menu
Organization Organization # menu
BP01
Group menu
001
AN
purchasing document
in the SAP system
was created. menu
Message
Data
Application Subdivides the usage R EA defaults for RFQ
of a condition for the
use in different
application areas
Message Specifies the kind of O Choose from drop down
Page 87 of 194
type output menu

NEU
Transmission You can process the O Choose from drop down
time-spot message immediately menu
or at a later time. If
processing later you
must use report
program RSNASST00
Processing Indicates the status- C Default is 0
status
1 indicates the
process was
successful.
2 indicates an error
0 indicates the
process has not yet
started
Creation date Date the message is O Enter date or choose the
create drop down menu
Time created Displays the time the C Defaults to time started
message was created

4. 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
Page 88 of 194
Page 89 of 194
3.5 Maintaining Quotation

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.
3.5.1 Maintaining Quotation for Material
Procedure
RFQ/quotation Quotation Maintain
2. On the Maintain Quotation: Initial Screen, make the following entries:
RFQ RFQ Number R Enter RFQ Number for Match code (F4)
which price entries are to search help can
be made. be used to
locate the
appropriate
value.
3. Choose the Enter key to proceed.
4. View the screen “Maintain Quotation: Header Data” by Choosing on the Header data
icon in the toolbar.
Page 90 of 194
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.
Administrativ
e Fields:
Quot. Dead. Quotation deadline R Supplied from initial screen
start
end.
Terms of
Payment &
Delivery:
Page 91 of 194
Payment Key for defining O Enter appropriate value if Match code (F4)
terms payment terms necessary. search help can
composed of cash be used to
discount percentages locate the
and payment periods. appropriate
value.
Currency Currency key for O Enter appropriate value if Defaulted from

amounts in the necessary vendor master
system.
Payment in / Number of days. In O Enter appropriate value if

Days conjunction with the necessary
baseline date for
payment, this number
represents a payment
period or period of
qualification for
discount.
Exchange Determines that the O Enter appropriate value if

Rate exchange rate used necessary
for currency translation
purposes calculated or
entered in the
purchasing document
is fixed.
Exchange Indicator: if you fix the O Check to fix exchange rate

Rate Fix exchange rate, the PO if appropriate.
currency and
exchange rate cannot
be changed during
Invoice Verification.
Incoterms Commonly-used O Enter appropriate value if Match code (F4)
trading terms that necessary. search help can
comply with the be used to
standards established locate the
by the International appropriate
Chamber of value.
Commerce (ICC).
Target Value Total value of all O Enter appropriate value if If the value
materials to be necessary. entered is
released against the exceeded, the
contract. user will receive
a system
message when
creating a
contract release
order.
Page 92 of 194
Reference
Data:
Quotation Date quotation O Enter date if desired.
Date submitted
Quotation Number of vendor’s O Enter number if desired.
quotation
6. Once all necessary header data has been maintained, the user can then enter the price
information in one of two fashions:
A. Enter the price in the Net Price field on the Maintain Quotation: Item Overview
screen by Choosing overview icon on toolbar.
B. To enter more detailed information in addition to the net price, select the line item
and choose the I tem Conditions icon. Choose the Back arrow to return
to the ‘Overview’ screen once data has been maintained.
a. A vendor’s quoted price can be entered in one of two ways.
b. 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.
c. 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.
d. 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.
e. After entering tax code, after choosing this system may give an
information message showing the effective price, Choose Enter to
continue.
Page 93 of 194
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.
Page 94 of 194
3.5.2 Maintaining Quotation for Services
Procedure
RFQ/quotation Quotation Maintain
2. On the Maintain Quotation: Initial Screen, make the following entries:
RFQ RFQ Number R Enter RFQ Number for Match code (F4)
which price entries are to search help can
be made. be used to
locate the
appropriate
value.
3. Choose the Enter key to proceed.
4. View the screen “Maintain Quotation: Header Data” by Choosing on the Header data
icon in the toolbar.
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.
Administrativ
e Fields:
Quot. Dead. Quotation deadline R Supplied from initial screen
start
end.
Terms of
Payment &
Delivery:
Payment Key for defining O Enter appropriate value if Match code (F4)
terms payment terms necessary. search help can
composed of cash be used to
Page 95 of 194
discount percentages locate the

and payment periods. appropriate
value.
Currency Currency key for O Enter appropriate value if Defaulted from

amounts in the necessary vendor master
system.
INR
Payment in / Number of days. In O Enter appropriate value if
Days conjunction with the necessary
baseline date for
payment, this number
represents a payment
period or period of
qualification for
discount.
Exchange Determines that the O Enter appropriate value if

Rate exchange rate used necessary
for currency translation
purposes calculated or
entered in the
purchasing document
is fixed.
Exchange Indicator: if you fix the O Check to fix exchange rate

Rate Fix exchange rate, the PO if appropriate.
currency and
be changed during
Invoice Verification.
Incoterms Commonly-used O Enter appropriate value if Match code (F4)
trading terms that necessary. search help can
comply with the be used to
standards established locate the
by the International appropriate
Chamber of value.
Commerce (ICC).
Target Value Total value of all O Enter appropriate value if If the value
materials to be necessary. entered is
released against the exceeded, the
contract. user will receive
a system
message when
creating a
contract release
order.
Reference
Data:
Page 96 of 194
Quotation Date quotation O Enter date if desired.

Date submitted
Quotation Number of vendor’s O Enter number if desired.
quotation
6. Once all necessary header data has been maintained, the user can then enter the price
information in following fashion:
A. To enter detailed information in addition to the net price, select the line item and
choose service details button. Select the line item and choose the Item
conditions icon. Choose the Back arrow to return to the ‘Overview’ screen
once data has been maintained.
a. A vendor’s quoted price can be entered in one of two ways.
b. 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.
c. 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.
d. 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.
e. After entering tax code, after choosing this system may give an
information message showing the effective price, Choose Enter to
continue.
Page 97 of 194
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.
Page 98 of 194
3.6 Price Comparison

Use
Required to compare prices from all quotations received as a result of a competitive bidding
process.
3.6.1 Price Comparison for Material
Procedure
RFQ/Quotation Quotation Price Comparison
2. On the Price Comparison List screen, make the following entries:
Purch Org. Organization unit that R Enter Purchasing Org
negotiates the general
conditions of purchase
for several plants or a
single plant
Quotation Purchasing document R Choose either quotation or
number collective RFQ number in
combination with
Purchasing Org
Coll. RFQ Call for bid number or R Choose either quotation or Number which
bid invitation number collective RFQ number in you might have
combination with maintained in
Purchasing Org RFQ
Vendor Vendor Number O Enter vendor number if
applicable
Material Material Number O Enter material # if
applicable
Maximum # Shows the maximum R Defaults to ‘12’, change if
of Quotations amount of quotations necessary.
per page that are displayed next
to each other.
a. Choose the comparison values to be used:

a. 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.
b. 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.
Page 99 of 194
c. 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:
+: 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:
a. 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.
Page 100 of 194

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 Exit arrow, or Choose the
F3 button.
Page 101 of 194

3.6.2 Price Comparison for Services
Procedure
RFQ/Quotation Quotation Price Comparison
2. On the Price Comparison List screen, make the following entries:
Purch. Org. Organization unit that R Enter Purchasing Org
negotiates the general
conditions of purchase
for several plants or a
single plant
Quotation Purchasing document R Choose either quotation or
number collective RFQ number in
combination with
Purchasing Org
Coll. RFQ Call for bid number or R Choose either quotation or Number which
bid invitation number collective RFQ number in you might have
combination with maintained in
Purchasing Org RFQ
Vendor Vendor Number O Enter vendor number if
applicable
Material Material Number N.A.
Maximum # Shows the maximum R Defaults to ‘12’, change if
of Quotations amount of quotations necessary.
per page that are displayed next
to each other.
A. Choose the comparison values to be used:

a. 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.
b. 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.
c. 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:
+: 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:
Page 102 of 194

a. Select the appropriate field to determine which of the following should be

included in the determination of the comparison price:
1. Include cash discounts
2. Include delivery costs
3. 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.
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 Service: Allows the user to view the purchasing data in the Service 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 Exit arrow, or Choose the
F3 button.
Page 103 of 194

3.7 Creating Contract

Use
A contract establishes a long-term agreement with a vendor to supply a material or services.
Contracts may either be rate contract, value contracts or quantity contracts.
• Rate contract specifies the rate at which material or services to be provided for specified
period.
• Value contracts have a ceiling that is a monetary amount that should not be exceeded.
• A quantity contact specifies a ceiling of goods or services that the vendor will provide to
us.
• Contracts do not specify delivery dates; this is determined when “release orders” are
issued against the contract.
If Contract is created with reference to Quotation, all the data like vendor code, material code,
price information etc., will be automatically copied in to Contract.
3.7.1 Creating Contract for Material
Procedure
Transaction code ME31K
SAP R/3 menu Logistics Materials Management Purchasing Outline
agreement Contract Create
2. You can also create contract with reference to purchase requisition or RFQ. By this most
of the data will be copied into contract automatically by the system.
3. To create contract with reference to RFQ Choose Reference to RFQ icon on Create
Contract: Initial Screen. Then system will give new popup screen here enter the RFQ
number. However, since this is only optional to the user creation of contract without
reference to RFQ is explained below.
4. On the Create Contract: Initial Screen, make the following entries:
Vendor Vendor for which the R Vendor number known or
contract is for via match code search
Agreement Specify what kind of R For Material this will be
type outline agreement “ZMAT”.
Agreement Date of the contract R Defaults today’s date into
Date this field
Agreement Agreement number C Leave blank, if the system This number will
is configured to assign be determined
numbers internally or enter internally
desired number
Page 104 of 194

Purch. Organization for which R Select from drop-down

Organization the contract is valid menu
Purchasing Purchasing Group for R Select from drop-down
Group which the contract is menu.
valid.
Item category Key defining how the O Defaults- Standard. Leave blank for
procurement of the this process
material or service is
handled.
Account Key to determine who O Select from drop-down Leave blank for
Assignment will be paying for the menu this process
Category consumable material
or service.
Plant Plant number O Enter plant here if the user
wishes for the plant number
to be defaulted into all line
items for the contract. Also,
the user only specify the
plant if the contract is plant-
specific.
Storage Storage location O Will default from material Leave blank for
Location number master if it has been this process
maintained.
Material Material group O Will default from material
Group master.
Req. tracking Tracking number O
number assigned on
requisition.
Acknowledge Check box if O
ment document is to be
required acknowledged by the
vendor
Page 105 of 194

5. Choose Enter. Select Header Data screen.

6. On the Create Contract: Header Data screen, enter information as specified in the fields
in the table below:
Agreement Date the agreement R Supplied from initial screen Grayed out
date was created
Item number The way the line items O No user action
interval are numbered. required
Validity start Beginning date of R A default today’s date into
contract period. the field. Change if
necessary
Validity end Date that the contract R Enter the date until the
expires. contract will be valid
Language Language key. R Defaults from vendor
Designates the master. Change if
display, text entry and necessary.
print language.
Payment Terms stipulated by O Defaults from vendor
terms vendor master. Change if
necessary
Payment in X amount of days O Defaults from vendor
master. Change if
necessary
master. Change if
necessary
master. Change if
Page 106 of 194

necessary
Target val Target value of the O/R Required for “Value
contract. contract’’.
Exch. rate Exchange rate of the O Change if necessary
currency
Ex. Rate fx. Fixing of exchange O
rate. Indicates the
purchase order
currency and the
be changed during
invoice verification.
Incoterms Freight terms O Defaults from vendor
stipulated by vendor master. Change if
necessary
Quotation Date of the quotation O
date
Quotation Quotation number O
The user The internal reference O
reference number of the vendor
Salesperson Name of vendor’s O Defaults from vendor
salesperson master. Change if
necessary
Our The user company's O
reference internal reference
number or code.
Telephone Vendor’s phone O For info only. Not copied to
number purchasing documents.
Suppl. Key identifying the O
vendor vendor
Invoicing Number of the O
Party invoicing vendor
7. Choose the item overview button on the toolbar, then on the Create Contract: Item
Overview screen, enter information as specified in the fields in the table below:
within the contract. increments of 10.
I Item category. Key O Select from drop-down No action
defining how the menu if contract is for required for this
procurement of the subcontracting, process
material or service is consignment or other type.
handled. Will default from original
screen if information has
been entered.
Page 107 of 194

A Account Assignment O Will default from original No action

Category. Key to screen if information has required for this
determine who will be been entered. process
paying for the
consumable material
or service.
Material Material master R Select from drop-down
number menu.
Short Text Description of the C Defaults from material
material or service to master. Enter a text for
be procured material not maintained in
the material master (ex.
Non stock materials)
Targ. qty. The quantity for R Enter the contract
which the contract is quantity if “Quantity
valid Contract’’.
Enter quantity as “1’’ No.
If “Rate Contract’’.
Oun Order Unit C Defaults from material
master.
Net price The price for which R Enter the Contract price
the material is to be here.
bought at
Per How the C Per 1
material/service is
priced
OPun Order price unit C Can default
(purchasing)
Material Material group that the C Defaults from material

Group item most closely master.
belongs to
Plant Plant number O The user only specify the Defaulted from
plant if the contract is plant- initial screen
specific. Will default from
initial screen if it has been
maintained.
Storage Storage location O Will default from material
Location number master if it has been
maintained.
Choose <Enter>
Page 108 of 194

8. Select the items and Choose the “item details” on the toolbar, then on screen
Create Contract: Item Details: enter information in the fields as specified in the table
below:
Target Defaults from header R Defaults
quantity
Release Defaults from header R Defaults
order Qty.
Net Order Defaults from header R Defaults
price
Price unit Defaults from header R Will default from material
Master
price date Effective date of price R Will default from material
Master
Quantity Denominator of order R Enter denominator for
conversion price to order quantity conversion
InfoUpdate Update info record. O Select from the drop-down To update info
Determines which menu. record
prices and conditions automatically
are suggested in
future PO items.
Reminders Letters or reminders in O Enter number of days
regards to shipments between reminders
Confirmation displays only indicates O Default from vendor master
Page 109 of 194

Control key if type of confirmation

required
Acknowl. Acknowledgement O Check if Acknowledgement
Reqd Required Check box is required
Acknowledg Vendor’s O
ment number Acknowledgement
number can be
displayed
TrackingNo Requirement tracking O
number. Groups
together the
purchasing documents
that exist for a certain
material requirement.
Estimated Check box if price is O
Price an estimate
Vendors External number to O Vendors internal material
material SAP number
number
Print Price Indicates whether O Set print price indicator to
price is to be printed “on” if price is to be printed
on PO
Under Under delivery O default from material
delivery % tolerance master
Over delivery Over delivery O default from material
% tolerance master
Stock type Specifies the stock to O default from material
which the material is master
posted upon goods
receipt or goods issue
(e.g Quality
inspection)
Unlimited indicates unlimited C Required for “Rate
indicator over delivery can be contract’’.
accepted on this
item
Tax Code Category of item O Select Tax .
reporting to
government tax
department
Invoice Invoice indicator O Indicates if invoice receipt
receipt is necessary
GR-BasedIV Goods receipt based O Tick this check box
invoice verification
Shipping Indicates packing and O Indicator should be turned
instructions shipping instructions on if required
to be issued to vendor
Page 110 of 194

9. Choose Save icon to save contract.
Page 111 of 194

3.7.2 Creating Contract for Services
Procedure
agreement Contract Create
2. You can also create contract with reference to purchase requisition or RFQ. By this most
of the data will be copied into contract automatically by the system.
3. To create contract with reference to RFQ Choose Reference to RFQ icon on Create
Contract: Initial Screen. Then system will give new popup screen here enter the RFQ
number. However, since this is only optional to the user creation of contract without
reference to RFQ is explained below.
4. On the Create Contract: Initial Screen, make the following entries:
contract is for via match code search.
Agreement Specify what kind of R For Services this will be
type outline agreement “ZSER or ZAMC”.
Date this field
desired number
Organization the contract is valid menu.

valid.
Item category Key defining how the O Defaults D-Service into this
procurement of the field.
handled.
Assignment will be paying for the menu. this process
or service.
Plant Plant number O Enter plant here if the user
wishes for the plant number
to be defaulted into all line
items for the contract. Also,
the user only specify the
plant if the contract is plant-
Page 112 of 194

specific.
Storage Storage location N.A. Leave blank for
Location number this process
Material Material group O Leave blank for
Group this process
number assigned on
requisition.
vendor

6. On the Create Contract: Header Data screen, enter information as specified in the fields
in the table below:
date was created
contract period. the field. Change if
necessary
Validity end Date that the contract R Enter the date until the
expires. contract will be valid
print language.
necessary
master. Change if
necessary
master. Change if
necessary
master. Change if
necessary
Target val Target value of the O/R Required for “Value
contract. contract’’.
Page 113 of 194

currency
rate. Indicates the
purchase order
currency and the
be changed during
necessary
date
necessary
number or code.
vendor vendor
7. To enter detailed information in addition to the net price, select the line item and
choose service details button. Select the line item and choose the Item
conditions icon. Choose the Back arrow to return to the ‘Overview’ screen once
data has been maintained.
• A vendor’s price can be entered in one of two ways.
• 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.
• 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.
Page 114 of 194

been entered.
paying for the
consumable material
or service.
number menu.
Short Text Description of the C Enter a text for service.
material or service to
be procured
Targ. qty. The quantity for R Enter the contract
which the contract is quantity if “Quantity
valid Contract’’.
Enter quantity as “1’’ No.
If “Rate Contract’’.
Oun Order Unit R Select from drop-down
menu.
Net price The price for which R Default Value. Defaulted after
the material is to be Service
bought at Specifications:
Contract
specs. for main
item screen is
Page 115 of 194

maintained.
Per How the C Per 1
material/service is
priced
(purchasing)
Material Material/ Service C Select from drop-down Here, material

Group group that the item menu. group means
most closely belongs service group.
to
Plant Plant number O The user only specify the Defaulted from
plant if the contract is plant- initial screen
specific. Will default from
initial screen if it has been
maintained.
Storage Storage location N.A.
Location number
Choose <Enter>
below:
quantity
order Qty.
price
Price unit Defaults from header R will default from material
Master
price date Effective date of price R will default from material
Master
Quantity Denominator of order N.A.
conversion price to order quantity
are suggested in
future PO items.
Page 116 of 194


required
number can be
displayed
number. Groups
together the
Price an estimate
material SAP number
number
on PO
Under Under delivery O Enter if required.
delivery % tolerance
Over delivery Over delivery O Enter if required.
% tolerance
Stock type Specifies the stock to N.A.
which the material is
posted upon goods
(e.g. Quality
inspection)
Unlimited indicates unlimited C Required for “Rate
indicator over delivery can be contract’’.
accepted on this
item
Tax Code Category of item O Select Tax
reporting to
government tax
department
Service- Service Entry Sheet R Tick this check box
BasedIV based invoice
verification
Shipping Indicates packing and N.A.
instructions shipping instructions
Page 117 of 194

10. Choose Save icon to save contract.
Page 118 of 194

3.8 Releasing Contracts

Use
You have to release a contract before proceeding with the next transaction.
3.8.1 Release of Contract
Procedure
Agreement Contract Release
Release Release Code R
Code
Group menu.
purchasing document
in the SAP system
Number Number menu

purchasing document
in the SAP system
Group menu.
menu
Plant menu
was created. menu
Page 119 of 194


Page 120 of 194

3.9 Creating Scheduling Agreement

Use
A Scheduling Agreement establishes a long-term agreement with a vendor to supply a material.
Scheduling Agreement specifies the rate at which material to be provided for specified period.
Scheduling Agreement do not specify delivery dates; this is determined when “delivery schedule”
are issued against the Scheduling Agreement.
If Scheduling Agreement is created with reference to Quotation, all the data like vendor code,
material code, price information etc., will be automatically copied in to Scheduling Agreement .
3.9.1 Creating Scheduling Agreement for Material
Procedure
Transaction code ME31L
agreement Scheduling Agreement Create
2. You can also create Scheduling Agreement with reference to purchase requisition or
RFQ, which are already explained in above. By this most of the data will be copied into
contract automatically by the system.
3. To create Scheduling Agreement with reference to RFQ Choose Reference to RFQ icon
on Create Scheduling Agreement: Initial Screen. Then system will give new popup
screen here enter the RFQ number. However, since this is only optional to the user
creation of contract without reference to RFQ is explained below.
4. On the Create Scheduling Agreement : Initial Screen, make the following entries:
contract is for via match code search
Agreement Specify what kind of R For Material this will be
type outline agreement “ZOPL”.
Date this field
desired number
Organization the contract is valid menu
valid.
Page 121 of 194

Item category Key defining how the O Defaults- Standard. Leave blank for
procurement of the this process
handled.
Assignment will be paying for the menu this process
or service.
Plant Plant number R Enter plant here from drop
down menu.
Storage Storage location O Will default from material Leave blank for
Location number master if it has been this process
maintained.
Material Material group O Will default from material
Group master.
number assigned on
requisition.
vendor

6. On the Create Scheduling Agreement: Header Data screen, enter information as
specified in the fields in the table below:
Page 122 of 194


date was created
Scheduling Agreement the field. Change if
period. necessary
Validity end Date that the R Enter the date until the
Scheduling Agreement Scheduling Agreement will
expires. be valid
print language.
necessary
master. Change if
necessary
master. Change if
necessary
master. Change if
necessary
Target val Target value of the O
Scheduling
Agreement.
currency
rate. Indicates the
purchase order
currency and the
be changed during
necessary
date
Page 123 of 194


necessary
number or code.
vendor vendor
been entered.
paying for the
consumable material
or service.
Page 124 of 194


number menu.
Short Text Description of the C Defaults from material
material or service to master. Enter a text for
be procured material not maintained in
the material master (ex.
Non stock materials)
Targ. qty. The quantity for which R Enter the Scheduling
the Scheduling Agreement quantity in
Agreement is valid Number.
Oun Order Unit C Defaults from material
master.
Net price The price for which the R Enter the Scheduling
material is to be Agreement price here.
bought at
Per How the material is C Per 1
priced
(purchasing)
Material Material group that the C Defaults from material

Group item most closely master.
belongs to
Plant Plant number R Enter plant from drop down
menu.
Storage Storage location O Will default from material
Location number master if it has been
maintained.
Choose <Enter>
below:
Page 125 of 194

quantity
order Qty.
price
Price unit Defaults from header R will default from material
Master
price date Effective date of price R will default from material
Master
Quantity Denominator of order R Enter denominator for
conversion price to order quantity conversion
are suggested in
future PO items.
required
number can be
displayed
number. Groups
together the
Price an estimate
material SAP number
number
on PO
Under Under delivery O default from material
delivery % tolerance master
Over delivery Over delivery O default from material
% tolerance master
Page 126 of 194

Stock type Specifies the stock to O default from material

which the material is master
posted upon goods
(e.g. Quality
inspection)
Unlimited indicates unlimited O/R
indicator over delivery can be
accepted on this item
Tax Code Category of item O Select Tax .
reporting to
government tax
department
GR-BasedIV Goods receipt based O Tick this check box
Shipping Indicates packing and O Indicator should be turned
instructions shipping instructions on if required
9. Choose Save icon to save Scheduling Agreement .
Page 127 of 194

3.10 Releasing Scheduling Agreement

Use
You have to release a Scheduling Agreement before proceeding with the next transaction.
3.10.1 Release of Scheduling Agreement
Procedure
Agreement Scheduling Agreement Release
Release Release Code R
Code
Group menu.
purchasing document
in the SAP system
Number Number menu

purchasing document
in the SAP system
Group menu.
menu
Plant menu
was created. menu
Page 128 of 194


Page 129 of 194

3.11 Delivery Schedule

Use
A Delivery Schedule can be given against Scheduling Agreement which establishes a long-term
agreement with a vendor to supply a material. Scheduling Agreement specifies the rate at which
material to be provided for specified period. Scheduling Agreement do not specify delivery dates;
this is determined when “delivery schedule” are issued against the Scheduling Agreement.
3.11.1 Maintain Delivery Schedule for Material
Procedure
agreement Scheduling Agreement Delivery Schedule
Maintain
2. On the Maintain Sch. Agmt. Schedule :Initial Screen, enter Scheduling Agreement
number & click enter button.
3. Select the item and Choose the “Delivery Schedule” on the toolbar, then on screen
Maintain Sch. Agmt. Schedule :Delivery Schedule for item: enter information in the fields
as specified in the table below:
Delivery Date Date on which the R Enter date
material is to be
supplied.
Scheduled R Enter the quantity in
quantity Number.
Page 130 of 194

4. Choose Save icon to save Scheduling Agreement .
Page 131 of 194

3.12 Purchase Order

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.
A Purchase Order is also called as Release Order if it is created with reference to a Contract.
This transaction is mandatory for the process.
3.12.1 Purchase Order for Procurement of Local Stock

Material
Procedure
Order CreateVendor/Supplying Plant Known
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. However, since this
is not mandatory step with out reference process is explained below.
3. On the Create Purchase Order screen, make the following entries:
Shopping Order type R System defaults in ZMAT.
Cart Symbol Use pull down to change if
necessary.
Purchasing Number can be O Leave blank.
document internally or
number
assigned
Vendor Vendor number R Vendor number

Doc. date Purchase order date R Date PO created (defaults
to today’s date)
Header Section Header
Purchasing Purchasing R Purchasing Organization
Organization organization code known or via match code
search
Purchasing Purchasing group R Select from dropdown
Group code menu.
Company Company code for R Enter if not defaulted in
Code purchase from purchasing org or
Page 132 of 194

group
Select Delivery / Invoice tab on Header data.
Payment Payment Terms of O Select from dropdown This field is
Terms Vendor menu. important to get
base line date in
Invoice
Verification.
Item Overview
Item number Item number within R Will default by system
document
Acct. Account where costs C Leave blank
category
For a consumable
material it is not
required
Item category Type of purchase C Leave blank
Material Material number R Select from dropdown External
menu. numbering is
used.
Short text Text from the material R Default from master record
master record
PO Quantity Required units / R Enter required quantity.
quantity
Unit of Unit that good or R Enter unit of measure Defaulted from
measure service is purchased material master
Category of Indicates whether the R default
delivery date delivery date is to be
entered and displayed
as a calendar day,
week or month.
Delivery Date Date material is R Enter delivery date

required
Net Price Vendor selling price R Enter price.
for good or service
Currency Currency used for R Defaulted from vendor
plant master
Per Price per unit R Default
Order unit The unit of measure R Default
for which material is
purchased
Material Grouping together of R Enter material group Defaulted from
group materials by material master
Page 133 of 194

characteristics
Plant Facility where goods R Enter plant.
or services are
produced or sold.
Storage Location where stock R Enter storage location. Required for
Location is stored stock item
Tracking Number that facilitates O Enter if known Can be used in
number monitoring of the List display to
procurement of list all PO’s
required materials created by a
certain buyer.
Potential entry is
employee
number.
Requisitioner To whom material or O
service is ordered
Info Record Purchasing O Default if goods was
information record purchase from vendor
informal price previously or info record
agreement that may created by system
be updated with each
purchase
Purchase req Reference document C Input the purchasing Use tool bar
number requisites number if button to
reference to be taken. reference other
purchasing
documents
Requisn. Purchase requisition C 10
Item item no
Outline Reference document C Enter contract number if Use tool bar
Agreement number you want create Release button to
Order. reference other
purchasing
documents
Agreement Item number C Enter contract line item Item number
Item number for Release Order within
purchasing
document
Item Details
Select
Invoice tab
Tax code Enter Tax code R Select from dropdown
menu.
If the procurement is for ISK1Plant, which is located in Nashik, Maharashtra State and the Vendor is
located in Hyderabad, Andhra Pradesh. This transaction attracts Central Sales Tax (CST) because
this is inter state transaction.
Page 134 of 194

GR-based IV Goods receipt based O Tick this check box

Page 135 of 194

Page 136 of 194

4. The Purchase Order may be posted by Choosing on the Save button or Choose
Control + S for saving.
Page 137 of 194

3.12.2 Creating Purchase Order for Procurement of Imported

Material
Prerequisites
Before starting the process, please ensure the following information:

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 21.
These are basic master data changes with respect to this process only.
Procedure
Order CreateVendor/Supplying Plant Known
Shopping Order type R System defaults in
Cart Symbol Standard PO. Use pull
down to change if
necessary
ZIMP
Purchasing Number can be O Leave blank
number
assigned
Vendor Vendor number R Vendor number known or Input value

via match code search.
to today’s date)
search.
Purchasing Purchasing group R Select from drop down
Group code menu.
group.
Page 138 of 194

RCL1
Select Delivery / Invoice tab on Header data.
Payment Payment Terms of O Enter if not defaulted in This field is
Terms Vendor from Vendor Master. important to get
base line date in
Invoice
Verification.
Item Overview
document
Acct. Account where costs C Select from drop down For a
assignment are allocated menu if required else keep consumable
category it blank. material it is
For a consumable
required, For a
stock material it
material it is not
is not required.
required
Item category Type of purchase C Leave blank
Material Material number R Use match code search if
needed.
Short text Text from the material R Default from master record
master record
PO Quantity Required units / R Enter quantity.
quantity
Unit of Unit that good or R Enter unit of measure Defaulted from
measure service is purchased material master
Category of Indicates whether the R Default.
as a calendar day,
week or month.

required
Net Price Vendor selling price R Enter price.
for good or service
Currency Currency used for R Enter Crrency. Input the value
plant
purchased
Material Grouping together of R Enter material group. Defaulted from
group materials by material master
characteristics
Page 139 of 194


or services are
produced or sold.
Storage Location where stock R Enter storage location of Required for
Location is stored each plant maintained at stock item
Corporate level.
tracking Number that facilitates O Enter if known Can be used in
certain buyer.
Potential entry is
employee
number.
Requisitioner To whom material or O Input value if required
service is ordered
Item Details
Select
Invoice tab
Tax code Enter Tax code R Select V0. For imported
purchase always
user V0
Select Conditions tab, you can see three condition types ZCDB, ZCDS, ZCV1, ZCV2 and ZCV2
are ready to input the percentage of duties.
ZCDB Basic customs R 16% - for example
ZCDS Special Customs R 16% - for example
ZCV1 CVD R 16% - for example
ZCV2 Cess on CVD R 2% - for Ecess on CVD
ZCV3 Cess-Special Customs R 2% - for ECess on BCD
Since the purchase order vendor is imported vendor and he is nothing to do with the customs
duty, special customs duty and countervailing duty. These three duties are paid to the local
Commissioner of Customs, local vendor in our case.
It is recommended to change the vendor code for above condition types .
1. To change the vendor for condition type select ZCDB condition type and Choose on
Condition detail icon located at left bottom side of your screen.
2. System will take to new Item – Conditions – Detail: screen. In this screen at right bottom
of screen you can find the vendor code the main imported vendor is defaulted here. You
have to replace this vendor code with commissioner of customs code and Choose enter
and green arrow to come back to condition tab of purchase order.
3. To change the vendor for condition type select ZCDS condition type and Choose on
Page 140 of 194

5. To change the vendor for condition type select ZCV1 condition type and Choose on
7. By using above you can also change vendor for ZCV2 and ZCV3 condition types. The
Purchase Order may be posted by Choosing on the Save icon.
Page 141 of 194

3.12.3 Purchase Order for Procurement of External Services
Prerequisites
1. Before creating purchase order ensure that G/L Account is created as cost element for
controlling area with validity date (purchase order date should fall within this validity period).
2. Posting without tax allowed tick is there in Control data of G/L Account master record.
3. Tax category field is filled with * (asterisk) in Control data of G/L Account master record.
4. Posting automatically only tick is not there in Create/bank/interest tab of G/L Account master
record. (Transaction Code FS00).
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. On vendor master record screen Withholding Tax Accounting screen maintain the following
entries: (Transaction Code FK02, Control data).
With. T. type W/tax code Liable Rec. ty
Withholding Withholding tax code Liability Receipt type
transaction type
I1 (TDS on I1 Tick the check box CO
Invoice)
P1 (TDS on P1 Tick the check box CO
Payment)
EA (ECess on EA Tick the check box CO
EWT)
E1 (ECess on E1 Tick the check box CO
EWT)
This will ensure for this vendor TDS is deducted at invoice verification stage.
3. TDS Payable Account maintain on Open Item basis, to follow the TDS challan updation
process. (Transaction Code FS00, Control data).
Procedure
SAP Easy Access menu Logistics Materials Management Purchasing Purchase
Order Create Vendor/Supplying Plant Known
Page 142 of 194


Shopping Order type R Choose ZOPS from drop Choose
Cart Symbol down list.
Purchasing Number can be O Leave blank
number
assigned
Vendor Vendor number R EnterVendor number

to today’s date)
search.
Purchasing Purchasing group R Select Pur. Group from
Group code drop down menu.
group
RCL1
Item Item Overview
Overview
document
Acct. Account where costs C Select from drop down For cost center
assignment are allocated. menu. or Project.
category
Material Material number R Leave blank
Short text Text from the material R Description of Service
master record
PO Quantity Required units / R Defaulted by
quantity system
Unit of Unit that good or R Defaulted by
measure service is purchased system
Category of Indicates whether the R default
as a calendar day,
week or month.

required
Page 143 of 194

Net Price Vendor selling price R Leave it blank for this

for good or service scenario.
Currency Currency used for R Defaulted from vendor
plant master
purchased
Material Grouping together of R Enter material group i.e.
group materials by Service Group.
characteristics

or services are
produced or sold.
Storage Location where stock N.A.
Location is stored
tracking Number that facilitates O Enter if known Can be used in
certain buyer.
Potential entry is
employee
number.
Requisitioner To whom material or O
service is ordered
Purchase req Reference document C Use tool bar
number button to
reference other
purchasing
documents
Requisn. Purchase requisition C
Item item no
Outline Reference document O Enter contract number.
Agreement number
Agreement Item number C Enter contract line item
Item number for Release Order
Item Details
Select
Services tab
number number created in above step.
master
Quantity Quantity R Enter quantity.
Page 144 of 194


measurement master
Gross price Gross price per unit of R Default from Contract.
in service master
Select
Account
assignment
tab
G/L Account G/L Account R Enter G/L Account.
Cost Center Cost Center R Select from drop down Select from drop
menu. down list
Choose Enter
Select
Invoice tab
Tax code Enter Tax code R S0 Select S0 tax
code
GR-based IV Goods Receipt based O Tick this check box
Srv.-based IV Service based invoice O Tick this check box
verification
Page 145 of 194

Page 146 of 194

3. The Purchase Order may be posted by Choosing on the Save or choose Control +
S for saving.
Page 147 of 194

3.13 Releasing Purchase Orders

Use
You have to release a purchase order before proceeding with the next transaction.
3.13.1 Individual Release of Purchase Order
Procedure
Order Release Individual Release
2. Choose on the icon to input the Standard PO number and choose Other Document
icon, On the Release Standard PO 4500000## screen, choose on Change (F7) icon and
make the entries as the following steps:
3. Since the standard PO 45000000## has release strategy, you will find new tab Release
Strategy on header details of purchase order screen.
4. Go to the Release Strategy tab page on header details of purchase order and do the
following operations.
5. You will find Release Code XX, beside yellow light and beside Release Options icon.
6. To release the purchase order, choose Release options. A message appears,
indicating that Release effected with release code xx.
Page 148 of 194

7. Choose to Save the document.
Page 149 of 194

3.13.2 Collective Release of Purchase Orders
Procedure
Order Release Collective Release
Release R
Code
Group menu.
purchasing document
in the SAP system
Number Number menu

purchasing document
in the SAP system
Group menu.
menu
Plant menu
was created. menu
Page 150 of 194


Page 151 of 194

3.13.3 Message Output
Use
A Purchase Order needs to be printed for transmitting to vendor.
Procedure
Transaction code ME9F
Order Messages Print/Transmit
2. On the Message Output screen, make the following entries:
Purch. Doc.
Data
Document Purchase Order # O Choose from drop down
Number menu.
menu
Group menu.
purchasing document
in the SAP system
was created. menu
Message
Data
Application Subdivides the usage R EF defaults for Purchase
of a condition for the Order
use in different
application areas
Message Specifies the kind of O Choose from drop down
type output menu.
Transmission You can process the O Choose from drop down
time-spot message immediately menu.
or at a later time. If
processing later you
must use report
program RSNASST00
Page 152 of 194

Processing Indicates the status- C Default is 0

status
1 indicates the
process was
successful.
2 indicates an error
0 indicates the
process has not yet
started
Creation date Date the message is O Enter date or choose the
create drop down menu
Time created Displays the time the C Defaults to time started
message was created

4. 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
Page 153 of 194

Page 154 of 194

3.14 List Display of Purchase Order

3.14.1 Per Vendor
Procedure
Order List Displays By Vendor
Vendor Name of Vendor O Choose from drop down
menu.
Purchase Enter POrg Number O Choose from drop down
Organisation menu.
menu.
Selection Select document type. O Choose from drop down
Parameters menu.
purchasing document
in the SAP system
Group menu.
menu.
menu.
category
Validity key Date before which O Choose from drop down
Date documents are valid. menu.
Range of Date within which O Choose from drop down
coverage to documents to be menu.
taken.
Document P.O. Number O Choose from drop down
Number menu.
Page 155 of 194


menu.
Group menu.
Document Document Date on O Choose from drop down
Date which P.O. was menu.
created.
Intern. Article N.A.
no.
(EAN/UPC)
Vendor’s N.A.
material
number
Vendor sub- N.A.
range
Promotion N.A.
Season N.A.
Season Year N.A.
Vendor Enter name of Vendor O
Name
Page 156 of 194

Page 157 of 194

3.14.2 Per Material
Procedure
Transaction code ME2M
Order List Displays By Material
menu.
menu.
Purchase Enter POrg Number O Choose from drop down
Organisation menu.
menu.
Selection Select document type. O Choose from drop down
Parameters menu.
purchasing document
in the SAP system
Group menu.
menu.
category
Validity key Date before which O Choose from drop down
Date documents are valid. menu.
Range of Date within which O Choose from drop down
coverage to documents to be menu.
taken.
Document P.O. Number O Choose from drop down
Number menu.
Vendor Name of Vendor O Choose from drop down
menu.
Page 158 of 194

Supplying Enter the name of O Choose from drop down

Plant plant. menu.
Group menu.
Document Document Date on O Choose from drop down
Date which P.O. was menu.
created.
Intern. Article N.A.
no.
(EAN/UPC)
Vendor’s N.A.
material
number
Vendor sub- N.A.
range
Promotion N.A.
Season N.A.
Season Year N.A.
Vendor Enter name of Vendor O
Name
Page 159 of 194

Page 160 of 194

4 Inventory Management
4.1 Goods Receipt & Goods Issue
Use
The goods receipt (GR) is a goods movement in which the receipt of goods from both an external
& from production is posted. A goods receipt leads to an increase of warehouse stock.
A goods issue (GI) is a goods movement in which a material withdrawal, goods issue, material
consumption, or a goods shipment is posted to a customer. A goods issue leads to a decrease of
warehouse stock.
1. Movement Type: is a three character key used to differentiate between goods movements.
E.g. Of such goods movements are goods receipts, goods issues or transfer posting.
• You specify directly or indirectly a mvT type with which the goods movement is to be
posted.
• The movement type determines the layout of the screen for document entry or the
updating of the quantity fields.
• The mvT type symbolizes the concrete business transaction or event represented by the
goods movements.
4.1.1 Default Values

Procedure
Transaction Code MIGO
IMG Menu Logistics Materials Management Inventory Management
Goods Movement Goods Movement (MIGO)
2. Choose Settings Default Values.
3. Enter the data on the Initial screen. Then choose .

Plant O Use pull down to select or F4 button.
Storage Location O Use pull down to select or F4 button.
Page 161 of 194

4.1.2 Goods Receipt against a Purchase Order
Procedure
2. Choose the transaction Goods Receipt & the reference document Purchase Order. Enter
101 as the default value for the movement type.
3. Choose ,with the quick -info text Search for P.O. Enter the following selection
values:
Material O Use pull down to select or F4 button.

Delivery Date O
4. Choose Find. A separate screen area with the search result appears.
5. Select your P.O. & choose , with the quick-info text Adopt. Then close
the search result ( , with the quick-info text Close Search Result).
6. Enter the following data on header screen.
Delivery Date R
Delivery Note R
Header Text R
7. Set the OK indicator for the item. Note that you can set the indicator in the detail data
only if the detail data screen is open.
8. Choose Check. The system displays missing data with an error message. A traffic light in
the Line column displays the status. The system checks all items that have the Item OK
indicator set.
9. Choose Post & make a note of the material document number.
Page 162 of 194

Page 163 of 194

Page 164 of 194

4.1.3 Display the Material & a corresponding Accounting

Document & PO history
Procedure
2. Choose the transaction Display & the reference Material Document

3. Enter the material document number & the document year. You can also search for the
material document (choose ,with the quick-info text Search for mat. Document or
double-clicking on a document from the overview.
4. To display the material document, choose , with the quick info text Execute.
5. To display the accounting document, open the header data & choose the Document info
tab page. Choose . This will take you to a dialog box. Select the
accounting document & choose to display it.
Page 165 of 194

6. To see purchase order history, Open up the item detail data (by clicking on the item
number in the item overview, for example). Choose the Purchase Order Data tab page.
7. Choose ,with the quick-info text History, to display the PO history. The material
document numbers match up.
Page 166 of 194

4.1.4 Initial Entry of Stock Balances
Procedure
2. Choose the transaction Goods Receipt & the reference others. Enter Movement Type
561.
3. Enter the following data:
Material Tab Page
Material Number R Use pull down to select or F4 button.
Quantity Tab Page

Quantity in unit of entry R Use pull down to select or F4 button.
Where Tab Page
Plant R Use pull down to select or F4 button.
Storage Location R Use pull down to select or F4 button.
4. Set the Item OK indicator.

5. Choose Next Item & repeat step 3 & 4.
Page 167 of 194

4.1.5 Delivery Free of Charge
Procedure
2. Choose the transaction Goods Receipt & the reference others. Enter Movement Type
511.
Material Tab Page
Quantity Tab Page

Quantity in unit of entry R Use pull down to select or F4 button.
Where Tab Page

Page 168 of 194

4.1.6 GR Blocked Stock
Procedure
103 & confirm your entry with Enter.
values:

Delivery Date O
6. Enter the following data on header screen.
Delivery Date R
Delivery Note R
Header Text R
indicator set.
Page 169 of 194

4.1.7 Release the GR blocked stock
Procedure
2. Choose the transaction Release GR Blocked Stock & the reference Material Document
4. To display the material document, choose , with the quick info text Execute.
6. Choose , with the quick-info text Post.
Page 170 of 194

4.1.8 Return Delivery w.r.t. a Material Document
Procedure
2. Choose the transaction Return Delivery &reference Material Document.

4. To copy the material document, choose , with the quick info text Execute.
5. Select the items that were returned with the OK indicator. Enter or change the following
data if required.
Material Tab Page
Material Number R
Quantity Tab Page
Quantity in unit of entry R
Where Tab Page
Reason for Movement R Use pull down to select or F4 button.
Page 171 of 194

4.1.9 Return Delivery w.r.t. a Purchase Order
Procedure
Goods Movement Goods Movement
2. Choose the transaction Return Delivery &reference Purchase Order.

10. Enter 122 (or 124, if the goods receipt was posted to the GR blocked stock).
values:

Delivery Date O
the search result ( , with the quick-info text Close Search Result
4. To copy the data from the purchase order, choose , with the quick info text Execute.
data if required.
Material Tab Page
Material Number R
Quantity Tab Page
Where Tab Page
Page 172 of 194

4.1.10 Cancellation w.r.t. a Material Document
Procedure
Goods Movement Goods Movement
2. Choose the transaction Cancellation &reference Material Document.

4. To copy the material document, choose , with the quick info text Execute.
data if required.
Material Tab Page
Material Number R
Quantity Tab Page
Where Tab Page
Page 173 of 194

4.1.11 Date Checks in GR for a Purchase Order
Procedure
Goods Movement Goods Movement(MIGO)
101 as the default value for the movement type.
values:

Delivery Date O
6. Enter the following data.
Header Screen
Delivery Date R
Delivery Note R
Header Text R
Material Tab Page
Shelf Life expiration R
date
Quantity Tab Page
indicator set.
Page 174 of 194

4.1.12 Goods Issue
Procedure
2. Choose the transaction Goods Issue& the reference Others.

3. Enter Movement Type 201.
Material Tab Page
Quantity Tab Page

Where Tab Page
Account Assignment
Tab Page
Cost Center R Use pull down to select or F4 button.
Page 175 of 194

Page 176 of 194

Page 177 of 194


Page 178 of 194

4.2 Transfer Postings & Stock Transfer

Use
The properties of some materials change in the course of time, necessitating a change in the
numbers under which they are managed. In such cases, you have to make a material – to -
material transfer postings.
In the case of transfer postings, the key aspect is a change in the stock ID number or the stock
category of a material. Transfer postings need not involve an actual (physical) goods movement.
A stock transfer/ transfer posting consists of a goods issue from the issuing point & a goods
receipt at the receiving point. The goods issue & goods receipt can be entered with a single
posting for all transfer postings/stock transfers.
4.2.1 Default Values

Procedure
2. Choose Settings Copying Rules, Transfer Posting.
3. Choose Insert New Line.

4. Enter movement type 321.
5. Set the indicator for Plant, SLoc, Plant Tfr Pstg, SLoc Tfr Pstg.
6. Choose copy.
Page 179 of 194

Page 180 of 194

4.2.2 Stock Transfer between Storage Locations
Procedure
2. Choose the transaction Transfer Posting & the reference others. Enter Movement Type
313.
Transfer Posting Tab
Page

From
From Plant R Use pull down to select or F4 button.
To
5. Choose Copy to new item. Repeat step3 & 4.

Page 181 of 194

4.2.3 Stock Transfer between Plants using Stock Transport

Order
Procedure
2. Choose the transaction Transfer Posting & the reference Purchase Order.
3. Enter the purchase order number.
4. Enter Movement Type 351.
5. Choose , with the quick info text Execute.

Page 182 of 194

4.3 Creation and Acceptance of Service Entry Sheet

Use
The services actually performed (work actually done) by a service vendor is recorded in a Service
Entry Sheet with reference to the purchase order.
4.3.1 Creation and Acceptance of Service Entry Sheet
Procedure
Transaction code ML81N
SAP R/3 Menu Logistics Materials Management Service Entry Sheet
Maintain
2. On the Service Entry Sheet screen, make the following entries:
3. Choose on Other Purch. Orders icon or Shift + F5, system will popup new screen.
4. In this screen against Purchase Order field give the purchase order number which is
created in above steps and choose enter to continue.
5. You will get new Service Entry Against Purchase Order
6. Here on this screen Choose 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.
8. For example the following screen name will come:
On the 1000000### Create Entry Sheet screen, maintain the following entries:
Short text Shot text of entry R Example - Bill for the month Freely
sheet of November 2003 maintainable
short text
- Select Service selection icon at the bottom of screen to adopt the data.
- System will give a popup screen with purchase order number on that, choose enter to continue.
- System will give new screen Select Services as Reference the services list from purchase order is
displayed here.
- Select the line item 10 and Choose on Services or F9 (Adopt services) icon on top of screen.
- You can observe the system copied the service line item from purchase order with open item
quantity.
- Change the quantity as per your requirement
Quantity Quantity of service R Replace 12 with 1 Only one month
entry sheet entry sheet.
With this the basic information of service entry sheet is fully completed. As per the requirement you
can fill other fields also if required.
Page 183 of 194

Select Vendor Evaluation tab & enter scores for received services.
To accept the service Choose on Accept icon or Control + F1 (Green flag icon).
You can see the traffic light is become Yellow color. That means it is ready to save the service entry
sheet.
9. To save the entries Choose on Save icon or choose Control + S.

10. If any information / warning messages come please ignore them before saving, also
please note the acceptance document number.
Page 184 of 194

4.3.2 Collective Release of Service Entry Sheet
Procedure
Transaction code ML85
SAP R/3 menu Logistics Materials Management Service Entry Sheet
Collective Release
Release R
Code
Group menu.
purchasing document
in the SAP system
Number Number menu

purchasing document
in the SAP system
Group menu.
menu
Plant menu
was created. menu

Page 185 of 194

Page 186 of 194

4.4 List Display of Inventory

4.4.1 Stock Overview
Procedure
Transaction code MMBE
SAP R/3 menu Logistics Materials Management Inventory Management
Environment List Displays Stock Stock Overview
Database Selections
menu.
menu.
Storage Select Storage O Choose from drop down
Locations Location menu.
Batch N.A.
Stock type selection
Also select O Default from system.
special
stocks
stock
commitments
List Displays
Special Stock Select stock indicator. O Choose from drop down
Indicator menu.
Display Select stocks to be O Choose from drop down
Version displayed. menu
Select display levels
Company Stock of material in O
Code Company to be
displayed.
Plant Stock of material in O
Plant to be displayed.
Storage Stock of material in O
Location SLoc to be displayed.
Batch N.A.
Page 187 of 194

Special Stock Special stock of O

material to be
displayed.
Page 188 of 194

4.4.2 Warehouse Stock
Procedure
Transaction code MB52
SAP R/3 menu Logistics Materials Management Inventory Management
Environment List Displays Stock Warehouse Stock
Database Selections
menu.
menu.
Storage Select Storage O Choose from drop down
Locations Location menu.
Batch N.A.
Scope of List
Material Type Material Type # O Choose from drop down
menu.
Group menu.
Purchasing Purchasing group O Select Pur. Group from
Group code drop down menu.
Stock type selection
special
stocks
stock
commitments
Selection special stocks
Special Stock Select stock indicator. O Choose from drop down
Indicator menu.
Display Select stocks to be O Choose from drop down
Version displayed. menu
Settings
Display only O
Negative
stocks
Display Batch O
Page 189 of 194

stocks
No zero stock O
lines
Do not O
display
values
Display Options
Hierarchy Stock of material to be O
Display displayed in hierarchy.
No Hierarch Stock of material not O
Display to be displayed in
hierarchy.
Page 190 of 194

4.5 Physical Inventory

Use
There are several reasons why an enterprise should inventory its stocks at regular intervals. This
inventory- taking checks the stocks of material to establish the current assets that are to be listed
in the company balance sheet.
It is also important for internal reasons to establish the correct stock quantities on hand. It is the
goal of Material Requirement Planning, for example, to ensure the availability of materials at all
times while at the same time minimizing stockholdings. Incorrect stock data leads to faulty
availability figures.
4.5.1 Create Physical Inventory Document
Procedure
Transaction Code MI01
IMG Menu Logistics Materials Management Physical Inventory
Physical Inventory Document Create
2. Enter the data on the Initial screen. Choose enter.

Planned Count Date R Use pull down to select or F4 button.

Special Stock O Use pull down to select or F4 button.
Phys. Inventory No. O
Page 191 of 194


Stock Type R Use pull down to select or F4 button.
4. For more material, repeat step 3.

Page 192 of 194

4.5.2 Enter Physical Inventory Count
Procedure
Count Enter

Phys. Inventory Doc. R Use pull down to select or F4 button.
No.
Fiscal Year R Use pull down to select or F4 button.
Variance % O

Count Result R Use pull down to select or F4 button.
4. For more material, repeat step 3. Set the Zero Count indicator for not counted item or
having zero stock.
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4.5.3 Post Inventory Differences
Procedure
Difference Post

Phys. Inventory Doc. R Use pull down to select or F4 button.
No.
Fiscal Year R Use pull down to select or F4 button.
Threshold Value O

Reason R If change select reason from drop down menu.
Page 194 of 194

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MATERIALS MANAGEMENT

End User Training Manual

Project Deep Roots

R Required entry field

O Optional entry field

N.A. Not Applicable

3.4 Request for Quotation (RFQ) ......................................................................................... 3

4.1.4 Initial Entry of Stock Balances ................................................................................... 3

1.2 Navigation & List of Favorites

1.2.2 Maintain List of favorites

1.2.3 Important Definitions

Organizational Levels in the Procurement Process

Purchasing Group & Purchasing Organization:

2.1.1 Create Material Master

Field name R/O/C Note

Field name R/O/C Note

2.1.2 Change Material Master

2.1.3 Display Material Master

2.1.4 Extend Material Master

Field name R/O/C Note

6. Choose , with the quick info text Save.

2.2 Vendor Master

2.2.1 Create Vendor Master

Field name R/O/C Note

4. Choose , with the quick info text Save.

2.2.2 Change Vendor Master

2.2.3 Display Vendor Master

2.2.4 Extend Vendor Master

Field name R/O/C Note

4. Choose , with the quick info text Save.

2.3 Service Master

2.3.1 Create Service Master

2. Enter the data in the following field.

3. Choose , with the quick info text Save.

2.3.2 Create Model Service Specification

4. Maintain the services.

5. Choose , with the quick info text Save.

2.3.3 Create Model Service Specification with Outline Path

Field name R/O/C Note

5. Select Outline Level & Click button.

7. Choose , with the quick info text Save.

2.4 Vendor Evaluation

2.4.1 Maintain Vendor Evaluation

Criteria” screen. Then click button.

Field name R/O/C Note

5. For “Quality” criteria enter score manually.

7. Choose , with the quick info text Save.

3.1.1 Creating PR for Operational Material

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

Source Flag that determines O

Account key specifying whether O Leave blank for

Unit Unit of measure in R Defaults from material

Storage Key for determining O

5. Choose to Save or Choose Control + S.

3.1.2 Creating PR for Operational Material with Account

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

Source Flag that determines O

Unit Unit of measure in R Defaults from material

Storage Key for determining O

Requisition is created enter

5. Choose to Save or Choose Control + S.

3.1.3 Creating PR for Project Material with Account

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