Module:Material Management As-Is & To-Be Business Process List

Module:MATERIAL MANAGEMENT
AS-IS & TO-BE BUSINESS PROCESS LIST

Area Scenario Group Process Explanation
WIRE ,INSULATION,MACHINE
1 DOMESTIC INVENTORY CYCLE
1.1 MATERIAL REQUIREMENT PLANNING
1.1.1 Reorder level and forecasting
1.1.2 Check the availability of Stock
1.1.3 Received "Material Requisition Note" fm Prod.
1.1.4 Get it approved (PLANT HEAD)
1.1.5 Sent to H.O.

1.1.6 Seeking Supplier / Fixed supplier
1.1.6 Quotation comparision
Points to be considered Price
Quality
Delivery
Others
1.1.7 Get the quotation approved (H.O.D.)
1.2 PURCHASE ORDER (Thru H.O.)

1.2.1 Prepare a Purchase Order as per reqd.spec.
1.2.2 Prepare as per terms and conditions

1.2.3 P.O.approved (H.O.D.)
1.2.4 Copy sent to vendor thru courier/fax/email

1.3 Material Inward
1.3.1 Goods Received thru DC/Invoice
1.3.3 Prepared Goods Receipt Note
1.3.2 Gate Entry

1.3.4 Check the Quantity
1.3.5 Check the Quality as per drg.(if available)
1.3.6 If Ok credit to the Store
1.3.7 Material Rejection
1.3.7.1 Informed to the Supplier
1.3.7.2 Make remark on GRN
1.3.7.3 Debit the amount (thru HO)
1.3.7.4 or return the material
1.3.8 Original bill Checking as per P.O.

1.3.9 GRN with Original Bill sent to H.O. after
authorised signatory(PLANT HEAD)
1.4 Excise
1.4.1 Checked the date of Gate entry and GRN
1.4.2 Check the Excise gate pass
1.4.3 Address
1.4.4 Excise Code No.
1.4.5 Excise duty calculations
1.4.3 Take the entry to RG 23 A I OR C I
1.4.4 Take the Modvat ot RG 23 A II or C II
1.5 Store
1.5.1 Checked the qty of received material
1.5.2 Update the Stock
1.5.3 Requirement of Production Department
1.5.4 Issue the material as per requirement
1.5.5 One issue slip hand over to Excise person
1.5.5 Stock Transfer
1.5.5.1 Receipt of MRN
1.5.5.2 Despatch the material if ready
2 DOMESTIC NON-INVENTORY CYCLE

2.1.1 check the availability of Stock
2.1.4 Sent to H.O.
2.1.5 Seeking Supplier / Fixed Supplier
Quality
Delivery
Others
2.1.6 Get the quotation approved(H.O.D.)
2.1.7 If requires or urgent procured thru local market
by cash
2.2 PURCHASING (thru H.O.)

2.2.3 P.O. Approved (H.O.D.)
2.3 Material Inward

2.3.2 Gate Entry

Material Rejection

authorised signatory
2.4 Excise
1.4.3 Address
2.5 Store
2.5.6.1 Receipt of MRN
Date:
TO-BE process T.Code GAP Remarks
Refer the PP TO-BE for MRP
1. Automatic PR generation for RM (insulation) &

packing material
2. Automatic PR generation for consumables
based on reorder point. 3.
Manual creation of PR for Spares. 4.
Creation of the manual PR for 8mm copper rod
Releasing of the purchase requistion at one level

release strategy by the plants.
1. Creation for Request for Quotation 2. Quotation comparision

Quotation comparision & vendor selection 3. cannot be done with
Search approved vendors for the required material respect technical
in the approved vendor's list. 4. specfication
Vendor registration & vendor selection in source list.
Creation of the info record master

Outside SAP
HO:
1. Creation of the normal purchase order with
reference to purchase requisition.
2. Releasing of the purchase order at one
level strategy (raw material & packing material)
3. Printing of the
purchase order 4. Send the hard
copy to the vendor thru courier or fax. for mailing
the purchase order to the vendor, PO to be scanned
and sent. 5. Creation of the
condition record for the Basic excise duty & Ecess.
6. Creation of the
condition record for VAT
Incase of major price fluctuations :
1. Creation of the rate contracts which can be used
as master for understanding the major fluctuations
on 6 months/yearly basis. Process as
follows : 1. creation of
the contract master 2. Creation of
the purchase order with reference to contracts.
3. Releasing of the
purchase at one level of release strategy.
Incase of qty agreements & rate agreements you

can also go for contracts.
Plants:
2. Releasing of the purchase order :
a) 1st level : approval by GM/VP for value
below 25000 (spares & consumables)
b) 2nd level : approval by
GM/VP & head office above 25000 (spares &
consumables)
3. Printing of the purchase order
4. Sending the purchase order thru
mail,fax or courier
1.Creation of goods receipt with ref to purchase
order. 2.
Enter the batch no (roll no/spool no) at the time of
good receipts. Country can also be added for
further bifircation of qty to be exclusively been used
for specific customer. 3.
Enter the delivery note no / invoice at the time of
goods receipts for vendor invoice verification.
4. Enter the transporter LR no. in the bill of lading
field for transporter payment .
5. Part 1entry update at the time of goods
receipts. 6. Stock updation in the QC stock type
7. provision for the test certificate received or
not.
Outside SAP
Refer the QM TO - BE for quality inspection
Material rejected at two instances : 1)

goods reciepts done, QC rejected & invoice
verification not done , reject the material thru 122
mvt type against the same PO. Reverse the
modvat taken against the rejection material Excise invoice print
document. 2) outside SAP for vendor
goods receipts done, QC rejected & modvat taken, rejection .
reject the material thru 122 mvt type against the
same PO. reverse the modvat taken against the
rejection material document. raise the debit memo
against the vendor for the invoice verification done.
1. Invoice verification to be done for the

procurement vendor against the delivery note.
2. Invoice verification to be done for the transporter
against the bill of lading field used at the time of
goods receipts creation.
1. verify the modvat values with the vendor excise

invoice.
2. RG Part II posting based on the vendor excise
invoice.
1. Creation fo the reservation by the production dept

for the material requirement by stores. 2.
Stores to goods issue the material based on the
requirement (goods issue to production order or
goods issue to cost center).
Stock transfer :
1. HO to create
the requisition for the inter company stock transfer
Sending plant activities :
2. Creation of the stock
transport order with reference to purchase
requistion 3. Creation of delivery
with ref to STO 4. post goods issue
against the delivery 5. creation of the
stock transfer invoice 6. creation of the
excise invoice against the invoice Receiving plant
activities : 1. Creation of the
goods receipts with reference to outbound delivery.
2. Capturing &
posting of the modvat against the excise invoice.
Stock transfer :
1. HO to create
2. Creation of the stock
transport order with reference to purchase
requistion 3. Creation of delivery
with ref to STO 4. post goods issue
against the delivery 5. creation of the
stock transfer invoice 6. creation of the
excise invoice against the invoice Receiving plant
activities : 1. Creation of the
2. Capturing &
posting of the modvat against the excise invoice.
1. Creation of the Manual purchase requisition for

non stock material
2. Releasing of the purchase requistion at one level
release strategy by the plants.
1. Creation for Request for Quotation 2. Quotation comparision

Quotation comparision & vendor selection 3. cannot be done with
Search approved vendors for the required material respect technical
in the approved vendor's list. 4. specfication
Outside SAP
Creation of the info record master
1. For the cash purchases < 5000 should be routed
petty cash. 2. For the
cash purchases > 5000 should be routed thru
purchase order only.
For the cash purchases > 5000 : HO

reference to purchase order.
2. Releasing of the purchase order at one level
strategy (non stock material)
4. Send the hard copy to the vendor
thru courier or fax. for mailing the purchase order to
the vendor, PO to be scanned and sent.
For the cash purchases > 5000 : Plants

2. Releasing of the purchase order :
a) 1st level : approval by GM/VP for value
below 25000 (non stock material)
b) 2nd level : approval by
GM/VP & head office above 25000 (non-stock
material)
4. Sending the purchase order thru
mail,fax or courier
order. 2.
Enter the delivery note no / invoice at the time of
4. Enter the transporter LR no. in the bill of lading
field for transporter payment (if any).
5. Part 1entry update at the time of goods
receipts. 6. Direct consumption would be booked
Refer the QM TO - BE for quality inspection

verification not done , reject the material thru 122
mvt type against the same PO. Reverse the
modvat taken against the rejection material
document. 2)
goods receipts done, QC rejected & invoice
verification done, reject the material thru 122 mvt
type against the same PO. reverse the modvat
taken against the rejection material document. raise
the debit memo against the vendor for the invoice
verification done.
1. Invoice verification to be done for the

procurement vendor against the delivery note.
2. Invoice verification to be done for the transporter
1. verify the modvat values with the vendor

excise invoice.
2. RG Part II posting based on the
vendor excise invoice.
Direct consumption would be booked at the time of

the goods receipts
No stock transfer to be done for the non stock

material
Module:MATERIAL M
1 DOMESTIC CAPITAL PURCHASE
1.1 MATETRIAL REQUIREMENT PLANNING

1.1.3 Sent to H.O.
1.1.4 Seeking Supplier
Quality
Delivery
Others
1.1.5 Get the quotation approved(H.O.D.)

1.2.3 P.O. Approved(H.O.D.)
1.2.4 copy sent to supplier thru fax/mail/courier
1.3 Asset Inward

1.3.2 Gate Entry
1.3.7 Asset Rejection


1.4 Excise
1.4.3 Address
1.4.3 Take the entry to RG 23 C I
1.4.4 Take the Modvat ot RG 23 C II
2 IMPORT CAPITAL PURCHASE

2.1 MATETRIAL REQUIREMENT PLANNING
2.1.1 Decision by H.O.
2.1.3 Get it approved
2.1.4 Sent to H.O.
2.1.5 Seeking Supplier
Quality
Delivery
Others
2.1.7 Get the quotation approved

2.2.3 P.O. Approved
2.3 Material Inward

2.3.2 Gate Entry

2.4 Excise
2.4.2.1 Address
2.4.2.2 Excise Code No.
2.4.2.3 Excise duty calculations
3 IMPORT INVENTORY CYCLE

3.1.1 Decision taken by H.O.
Reorder level / Business forecasting
3.1.2 Planning
3.1.2.1 MRN fm Production with approval
3.1.2.2 Monthly stock of individual divisions

3.2.1 Prepare a Purchase Order as per reqd.spec.&forecas
3.2.3 P.O. Approved(H.O.D)

3.3 Material Inward
3.3.1 Goods Received thru Invoice
3.3.2 Gate Entry


3.4 Excise
3.4.2.1 Address
3.4.2.2 Excise Code No.
3.4.2.3 Excise duty calculations
3.5 Store
3.5.3 Requirement recd.fm Production Department
3.5.6.1 Receipt of Material requisition
3.5.7
Update the Stock verification

TO-BE process T.Code GAP
1.Manual Creation of the purchase requistion by Quotation comparision cannot

plants 2. be done with respect technical
Purchase requistion release at one level release specfication
strategy by the plants head.
3.Creation for Request for Quotation
3. Quotation comparision & vendor selection
4. Search approved vendors for the required material
in the approved vendor's list. 5.
6.
Creation of the info record master 7.
Creation of the condition record the VAT applicable
for setoff. 8. Creation of
the condition record for the excise duties applicable
(BED,ECESS)
1. Creation of the Asset purchase order with

reference to purchase requisition with account
assignment category 'A'. 2.
Releasing of the purchase order at one level strategy
(capital) 3.
Printing of the purchase order 4.
Send the hard copy to the vendor thru courier or fax.
for mailing the purchase order to the vendor, PO to
be scanned and sent.

order.
2. Enter the delivery note no /
invoice at the time of goods receipts for vendor
invoice verification. 3. Enter the transporter LR
no. in the bill of lading field for transporter payment .
4. Part 1entry update (50%
partial credit) at the time of goods receipts.
5. no updation of the stocks
(material cost loaded to the asset).

verification not done , reject the material thru 122 mvt
type against the same PO. Reverse the modvat
taken against the rejection material document.
2) goods receipts
done, QC rejected & modvat taken, reject the
material thru 122 mvt type against the same PO.
reverse the modvat taken against the rejection
material document. raise the debit memo against the
vendor for the invoice verification done.
1. Invoice verification to be done for the procurement

vendor against the delivery note. 2.
Invoice verification to be done for the transporter
Invoice verification to be done for the transporter

invoice. 2.
RG Part II posting based on the vendor excise
invoice.
1.Manual Creation of the purchase requistion by

plants 2.
Purchase requistion release at one level release
strategy by the plants head.
HO : 3.Creation
for Request for Quotation 4. Quotation
comparision & vendor selection 5. Search
approved vendors for the required material in the
approved vendor's list. 6.
7.
Creation of the info record master.
1. Creation of the Imports purchase orders in vendor

currency wrt reference to PR
level release strategy.
4. PO sent thru mail,fax or courier
5. Creation of shipping notification for entering the bill
of lading & date
6. Invoice verification of the customs vendor for the

clearing from customs with reference to imports
purchase order.
1.Stores to verify the current Open PO with the

Invoice Copy
3. Enter the delivery note no / invoice at the

time of goods receipts for vendor invoice verification.
4. Enter the transporter LR no. in the bill of
lading field for transporter payment .
5. Part 1entry update (50% partial credit) at
the time of goods receipts.
5. no updation of the stocks (material cost loaded
to the asset).
Refer QM TO-BE

verification not done , reject the material thru 122 mvt
type against the same PO. Reverse the modvat
taken against the rejection material document.
2) goods receipts
done, QC rejected & modvat taken , reject the
material thru 122 mvt type against the same PO.
reverse the modvat taken against the rejection
material document. raise the debit memo against the
vendor for the invoice verification done.
Invoice Verification :
1.Invoice verification of the procurement vendor with
ref to invoice (delivery note)
2. Invoice verification of the clearing agent with
ref to vendor .
3. Invoice verification of the transporter with ref to
vendor. 4.
Invoice verification of others with ref to vendor

invoice. 2.
invoice.
1. Automatic PR generation based on the reorder

level for imported material (PR initiated by the
urchase department at HO).
2. Releasing of the Purchase requisition by HO.
3. Request for quotation
4. Quotation comparision & vendor selection
5. Search approved vendors for the required material
in the approved vendors list ( Source List)
6. Vendor Registration & Vendor Selection in Source
List. 7.
Creation of the inforecord master
1. Creation of the Imports purchase orders in vendor

currency wrt reference to PR
level release strategy.
4. PO sent thru mail,fax or courier
5. Creation of shipping notification for entering the bill
of lading & date
6. Invoice verification of the customs vendor for the
clearing from customs with reference to imports
purchase order.
1.Stores to verify the current Open PO with the

Invoice Copy
2. Enter the batch no
(roll no/spool no) at the time of good receipts.
Country can also be added for further bifircation of
qty to be exclusively been used for specific customer.
3. Enter the delivery
note no / invoice at the time of goods receipts for
vendor invoice verification. 4. Enter the
transporter LR no. in the bill of lading field for
transporter payment . 5.
Part 1entry update at the time of goods receipts. 6.
Stock updation in the QC stock type 7.
provision for the Test certificate acceptance from the
vendor
Refer QM TO-BE
Invoice Verification :
1.Invoice verification of the procurement vendor with
ref to invoice (delivery note)
2. Invoice verification of the clearing agent with
ref to vendor .
3. Invoice verification of the transporter with ref to
vendor. 4.
Invoice verification of others with ref to vendor

invoice. 2.
invoice.
1. Creation fo the reservation by the production dept

for the material requirement by stores. 2.
requirement (goods issue to production order or
goods issue to cost center).
Stock transfer :
1. HO to create
2. Creation of the stock transport
order with reference to purchase requistion
3. Creation of delivery with ref to STO
4. post goods issue against the delivery
5. creation of the stock transfer invoice 6.
creation of the excise invoice against the invoice
Receiving plant activities : 1.
Creation of the goods receipts with reference to
outbound delivery. 2.
Capturing & posting of the modvat against the excise
invoice.
2. Creation of the stock transport
order with reference to purchase requistion
creation of the excise invoice against the invoice
Receiving plant activities : 1.
Creation of the goods receipts with reference to
outbound delivery. 2.
Capturing & posting of the modvat against the excise
invoice.
Date:
Remarks
Outside SAP
Gate entry outside sap

Outside SAP
Module:MATERIAL MANAGE
1 SUB-CONTRACTING (External Vendor)

1.1 PLANNING FOR JOB WORK ( wire division, Gonde )
1.1.1 Material Arrival intimation received from H.O. thru Fax/E-mai
1.1.2 Material directly sent to Sub-contractor

1.1.3 Confirm the date with sub-contractor for
57 F (4) Challan
1.1.4 Prepared 57 F (4) Challan
1.1.5 Sent the Empty Coiler thru Transport
vide Delivery Challan
1.1.6 Get the Challan entry in Registers
1.1.7 Received the Qty.thru Subsidiary challans if part qty.
2.2 PLANNING FOR JOB WORK ( Insulation division, Silvassa )

2.2.1 Material Received thru Gonde as per requirement
Thru Invoice
2.2.1.1
2.2.1.2
2.2.2 Sent the mateiral to Job work 57 (F) 4
2.2.2.1
2.2.3 Job-Work Register entry
2.2.4 Get the work done
2.2.5 Receipt the same,close the challans
2.2.6 Job -Work Register entry closed
2.2.6.1
2.2.7 Dispatch the same as per order

2.3 RECEIVED FOR JOB WORK (EXTERNAL & INTERNAL)
2.3.1 Gate entry
2.3.2 Check the main challan
2.3.3 Registet entry
2.3.4 Get the job done
2.3.5 Sent thru the same challan,Close it
2.3.6 Register entry
3 SERVICES AND REPAIRS

3.1 PROCESS
3.1.1 Instruction recd.from concerned dept.
3.1.2 Searching for the same
3.1.3 Price negotiations
3.1.4 Repaird and paid by cash / check
3.1.5 Packing Services fixed on KG system
3.1.6 Payment thru cheque monthly
4 FREE SAMPLE
4.1 PROCESS
4.1.1 Inquiry over Phone/emails/fax
4.1.2 Instruction thru H.O.

4.1.3 Sent alongwith DC & Declaration (courier)
5 CASH PURCHASE
5.1 PROCESS
5.1.1 Material indent recd.
5.1.2 Cash Purchase
5.1.3 Prepare Vouchers, Get authorised by Plant Head
5.1.4 Sent to H.O.
6 PHYSICAL INVENTORY
6.1 STOCK
6.1.1 As per production report and Issue slip Finished Goods
Raw material stock is checked monthly
6.1.2 Stock is maintened in size wise
6.1.3 Monthly Stockstatement of F.G, R. M.,W.I.P. sent to
H.O.(1st week of every month)
6.1.4 Stock is verified as per RG.1 Register if found any
descripency, check the entries,verify physically &
reconcilation done
6.2 MATERIAL REJECTION
6.2.1 Material rejection received.

6.2.2 Thru Invoices
6.2.2.1
6.2.2.2
6.2.2.3
6.2.2.4
6.2.3 Thru 57 (F) 4 Challans
6.2.3.4
6.2.3.5
6.2.3.6
6.2.3.7
6.2.3.8
7 CAPTIVE CONSUMPTION
7.1 PROCESS
7.1.1 Decision thru H.O.
7.1.2 Inform the stock
7.1.3 Scrap of Enamelled copper wire/Scrap of Bare copper wire
7.1.4 Invoice - Captive consumption
7.1.4.1
7.1.4.2
7.1.5 Sent thru 57 (F) 4 Challan (MUMBAI)
7.1.5.1
7.1.6 Material received
7.1.6.1
7.1.7 Again sent to Job Worker thru 57 (F( 4 Challan) BIC

7.1.7.1
7.1.8 Received thru 57 (F) Challan

7.1.8.1
7.1.8.2
TO-BE process T.Code GAP
Plants activities (Sender):

1. Manual creation of the
subcontracting purchase requistion in the system.
2. Creation
the subcontracting Purchase order ( purchase
order BOM) 3. Goods
movement of the material with reference to the
subcontracting purchase order). 4. Entering the
assessable value in the J1ID master data (rate to
be mainatined in unit /kg) 5. Creation of the
subcontracting challan in the system.
6. Printing of the
subcontracting challan
the material stocks would be updated as
the vendor stocks in the MMBE transaction code.
Plants activities (Sender):

1. Manual creation of the
Credit the qty to RG 23 A PART I subcontracting purchase requistion in the system.
Taken Modvat RG 23 A PART II 2. Creation
the subcontracting Purchase order ( purchase
order BOM) 3. Goods
Substract the qty thru RG 23 A I
movement of the material with reference to the
subcontracting purchase order). 4. Entering the
assessable value in the J1ID master data (rate to
be mainatined in unit /kg) 5. Creation of the
subcontracting challan in the system.
6. Prinitng of the
subcontracting challan
the material stocks would be updated as
the vendor stocks in the MMBE transaction code.
1. Creation of the good receipts with reference to

the subcontracting order and also giving the
reference of the challan for the same.
2. Enter
the batch no (roll no/spool no) at the time of good
receipts. 3.
Reconcillation of goods receipts qty against the
challan qty for the same. 4.
Completion & closing of the challan after full
reconciliation
Incase of rejection : 1.
Account the rejected qty in the rejection storage
location. 2. Raise
the debit memo at the time of invoice verification.
HO/Plants : 1.
Creation of the Service requisition 2.
Creation of the service purchase order with
reference to the service purchase order.
3. Releasing of the service purchase order at
one level release strategy. 4.
Confirmation of the services by releasing the
service entry sheet with reference to Service
PO(goods reciepts with reference to Service PO).
HO/Plants : 1.
Creation of the Service requisition 2.
Creation of the service purchase order with
reference to the service purchase order.
3. Releasing of the service purchase order at
one level release strategy. 4.
Confirmation of the services by releasing the
service entry sheet with reference to Service
PO(goods reciepts with reference to Service PO).
5. Invoice
verification based on the service entry sheet.
1. Creation of the Non valuated material

2. Creation
of the goods receipts thru movement type 511.
Refer the QM
TO-BE for qulaity inspection
Refer the MM TO-BE (Domestic purchase Non -

inventory)
Yearly Physical Inventory:
1. Creation of the Physical Inventory documents

storage location wise at the plant level.
2. Printing of the physical inventory documents
plants wise. 3.
checking for the stocks & punching the actual
physical qty againsth the each physical inventory
documents. 4. checking
for the variances ( SAP stocks vs Physical stocks
) 5. Posting of the
variances at the plant level at HO ( posting
authorization restricted to HO only).
Perpetual
Inventory : 1.
Classification of the material based on value
basis thru A,B,C analysis . 2.
Creation of the physical inventory documents
manually. Refer Yearly Physical Inventory
steps.
Refer the MM TO-BE rejection ( subcontracting

Gate Entry rejection & vendor rejection
Qty.& Qlty Check
RG 23 PART I ENTRY
Cleared thru Invoice Only
Gate Entry
Inspect the material
Register entry
Cleared thru Challans
Register entry
Refer the MM TO-BE Subcontracting process
Substracting the Qty thru RG 1 Reg.

RG 23 A PART I (SCRAP OF WIRE)
Substracting the Qty thru RG 23 A I Reg.
Taken to RG 23 Part I Register

(BARE COPPER WIRE)
Substracting the qty thru RG 23 I

(BARE COPPER WIRE)
Credit the qty to RG 23 I

(BARE COPPER WIRE)
Issue to Production
Date:
Remarks
Outside SAP
MACHINE
1 DOMESTIC INVENTORY CYCLE
1.1.1 As per Production Planning requirment raised
1.1.2 Check the availability of Stock
1.1.3 Make or buy decision
1.1.4 For In-house Items
1.1.4.1
1.1.4.2
1.1.4.3
1.1.4.4
1.1.5 For Vendor-Purchase Items
1.1.5.1
1.1.5.2
1.1.5.3
1.1.5.4
1.1.5.5
Points to be considered
Get the quotation approved
1.1.6
1.2 PURCHASE ORDER (Thru H.O.)


1.3 Material Inward

1.3.2 Gate Entry

1.3.7.1
1.3.7.2
1.3.7.3
1.3.7.4

1.4 Excise
1.4.3
1.4.4
1.4.5
1.5 Store
1.5.5.1
1.5.5.2
2 Customer Supplied Product
3 Trading goods at depot
Month End & Year End procedure
4
MANAGEMENT
TO-BE process
1. Manual / Auto Purchase requistion 2.

Releasing of the purchase requistion at one level release
strategy by the plant heads. 3. Creation
for Request for Quotation 4. Quotation
comparision & vendor selection 5. Search
Check the availability of material
approved vendors for the required material in the approved
Order locally vendor's list. 6. Vendor
Inspection of material registration & vendor selection in source list.
Work process started
Received "Material Requisition Note" fm Prod.

Get it approved
Sent to H.O.
Seeking Supplier / Fixed supplier
Quotation comparision
Price
Quality
Delivery
Others
HO:
1. Creation of the normal purchase order with reference to
purchase requisition. 2.
Releasing of the purchase order : a) 1st
level : approval by GM/VP for value below 25000 (spares &
consumables) b)
2nd level : approval by GM/VP & head office above 25000
(spares & consumables)
4. Sending the purchase order thru mail,fax
or courier
1.Creation of goods receipt with ref to purchase order.
2. Enter the delivery note no / invoice at the time of

3. Enter the transporter LR no. in the bill of lading field
for transporter payment . 4.
Stock updation in the QC stock type ( if required for the
consumales spares to be linked to QM). 7. the
Stock updation will be seen as in seperate storage location
in the individual bin.
1.Creation of goods receipt with ref to purchase order.

Stock updation in the QC stock type ( if required for the
consumales spares to be linked to QM). 7. the
Stock updation will be seen as in seperate storage location
in the individual bin.

Informed to the Supplier goods reciepts done, QC rejected & invoice verification not
Make remark on GRN done , reject the material thru 122 mvt type against the
same PO. Reverse the modvat taken against the rejection
Debit the amount (thru HO) material document. 2)
or return the material goods receipts done, QC rejected & modvat taken, reject
the material thru 122 mvt type against the same PO.
reverse the modvat taken against the rejection material
document. raise the debit memo against the vendor for the
invoice verification done.

Invoice verification to be done for the transporter against
the bill of lading field used at the time of goods receipts
creation.
1. verify the modvat values with the vendor excise invoice.

2. RG Part II
Address posting based on the vendor excise invoice.
Excise Code No.
Excise duty calculations
1. Creation fo the reservation by the production dept for the

material requirement by stores. 2.
requirement (goods issue to production order or goods
issue to cost center).
Receipt of MRN Stock transfer :

Despatch the material if ready 1. HO to create the requisition
for the inter company stock transfer
2. Creation of the stock transport order with
reference to purchase requistion
creation of the excise invoice against the invoice Receiving
plant activities : 1. Creation of the
2. Capturing & posting of the
modvat against the excise invoice.
Stock transfer :
1. HO to create the requisition
for the inter company stock transfer
2. Creation of the stock transport order with
reference to purchase requistion
creation of the excise invoice against the invoice Receiving
plant activities : 1. Creation of the
2. Capturing & posting of the
modvat against the excise invoice.
1. Creation of the non valuated material

2. Creation of the goods reciepts without reference to
purchase order. 3.
For production process refer the PP TO-BE
1. Creation of the Purchase requistion 2.

Creation of the Purchase order with reference to the PR
3. Releasing odf the purchase order at one
level release strategy at HO.
4. Goods receipts with reference purchase orders
RG23D update at the time of goods receipts.
Month End procedure :

1. Last month to be closed
Year End procedure :(Calendar year)
2. Document number ranges to be
changed for material documents : a) Goods receipts
documents b) Material documents
Year End Procedure :
1. Number ranges to be changed for the
excise documents
Date:
T.Code GAP Remarks
Quotation comparision approval

outside SAP.

Module:Material Management As-Is & To-Be Business Process List

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Module:Material Management As-Is & To-Be Business Process List

Uploaded by

Copyright:

Available Formats

Module:MATERIAL MANAGEMENT

AS-IS & TO-BE BUSINESS PROCESS LIST

1.1.4 Get it approved (PLANT HEAD)

1.1.5 Sent to H.O.

1.1.7 Get the quotation approved (H.O.D.)

1.2 PURCHASE ORDER (Thru H.O.)

1.2.2 Prepare as per terms and conditions

1.2.4 Copy sent to vendor thru courier/fax/email

1.3.2 Gate Entry

1.3.8 Original bill Checking as per P.O.

2 DOMESTIC NON-INVENTORY CYCLE

2.1.7 If requires or urgent procured thru local market

2.2 PURCHASING (thru H.O.)

2.2.1 Prepare a Purchase Order as per reqd.spec.

2.3 Material Inward

2.3.4 Check the Quantity

2.3.8 Original bill Checking as per P.O.

Refer the PP TO-BE for MRP

1. Automatic PR generation for RM (insulation) &

Releasing of the purchase requistion at one level

1. Creation for Request for Quotation 2. Quotation comparision

Creation of the info record master

Incase of qty agreements & rate agreements you

Material rejected at two instances : 1)

1. Invoice verification to be done for the

1. verify the modvat values with the vendor excise

1. Creation fo the reservation by the production dept

1. Creation of the Manual purchase requisition for

1. Creation for Request for Quotation 2. Quotation comparision

For the cash purchases > 5000 : HO

For the cash purchases > 5000 : Plants

Refer the QM TO - BE for quality inspection

Material rejected at two instances : 1)

1. Invoice verification to be done for the

1. verify the modvat values with the vendor

Direct consumption would be booked at the time of

No stock transfer to be done for the non stock

1.1.2 Get it approved (PLANT HEAD)

1.2 PURCHASING (thru H.O.)

1.2.1 Prepare a Purchase Order as per reqd.spec.

1.3 Asset Inward

1.3.7 Asset Rejection

1.3.8 Original bill Checking as per P.O.

2 IMPORT CAPITAL PURCHASE

2.2 PURCHASING (thru H.O.)

2.2.4 copy sent to supplier thru fax/mail/courier

2.3 Material Inward

2.3.8 Original bill Checking as per P.O.

3 IMPORT INVENTORY CYCLE

3.2 PURCHASING (thru H.O.)

3.2.4 copy sent to supplier thru fax/mail/courier

3.3.3 Prepared Goods Receipt Note

3.3.4 Check the Quantity

3.3.8 GRN with Original Bill sent to H.O. after

Update the Stock verification

TO-BE process T.Code GAP

1.Manual Creation of the purchase requistion by Quotation comparision cannot

1. Creation of the Asset purchase order with

1.Creation of goods receipt with ref to purchase

Material rejected at two instances : 1)

1. Invoice verification to be done for the procurement

1. verify the modvat values with the vendor excise