Enterprise Structure

Tata Group (Company)

Tata Motors Tata Steel Tata Chemicals Tanishq (Company Code)

Tata Motors

Pune Jamshedpur

Plant Concept-- > Manufacturing Plant, Warehouse, Depot, Port, Store

Purchase Org ( Centralized Purchasing Org), (Plant Specific ), (Cross Plant Specific)

Storage Location it is plant specific.

JSW Steel.

Finished Material

Raw Material

Semi Finished Material

Arvind.

Location Specific

Purchasing Group (Buyer)

Buyer  Department Specific

Civil , Mechanical , Electrical.

Buyer Individual Specific.

Subhojit, Vishal

Buyer  Material Specific

Raw Material
Master Data.

1. Vendor Master.
2. Material Master.
3. Purchasing Info Record.
4. Source List.
5. Quota Arrangement.
6. Price Master (Condition Record)

Vendor Master

1. General Data. (Address)

2. Company Code Data.( Reconcillation a/c, payment terms, bank details)
3. Purchasing Organization Data. ( Payment Terms, Vendor Currency, Schema Group (Pricing
Group).
To Create at first you have to create account group.

Functionality of Account Group

Account Groups holds the control of vendor master fields.

Account Group determines Partner Determination

T Codes to create vendor master

XK01- Vendor Master Creation Centrally ( General Data, Company Code Data, Purchasing Org
Data)

MK01- Vendor Master Purchasing Data (General Data and Purchasing Org Data).

FK01- Vendor Master Company Code Data (General Data and Company Code Data)

Account Group Creation ( T-code-OBD3)

Vendor Master Creation XK01.
Partner Determination.

Vendor Master Vendor Code (VN)

Purchase Order Vendor Code (OA)

Goods Receipt Vendor Code (GS)

Invoice Receipt Vendor Code (IP)

Assign Partner Functions to Account Group
Material Master

Pre Requisites.

1. Material Type.
2. Number Range.
3. Assign number range to material type.

Configuration for Material Master.( T code OMS2).

Difference between Standard Price and Moving Average Price

Material Type  Account Category Reference- Valuation Class- Automatic Account

Determination.
OMSK ( Account Category Reference)
Creation of Material Group.( T-code--OMSF)

Creation of Purchasing Group.

Material Master Creation (T-CodeMM01).
T-Code  MM60

Material Master Tables.

1. MARA- Basic Data ( Client Specific).

2. MARC- Purchasing, General Storage , (Plant Specific).
3. MARD- Storage Location Specfic. (Plant Specific)
4. MBEW- Accounting Data. (Plant Specific) Valuation Area.

Table T-code SE16N.

To Extend Storage Location T-code MMSC
 Split Valuation

Product A

China Brazil USA

Country of Origin Valuation Category.

Brazil/China/USA Valuation Type

Product B

External Procurement In house Production

Material Master with Valuation Type.
Posting Period Configuration.

T-Code  OB62 ( Assign Company Code to Chart of Accounts).

(Fiscal Variant ).
Posting Period Configuration.
T-code MMPV

Before MMPV you have to check T-Code MMRV.

 Procure to Pay (P2P).

Scenarios

1. Purchase Req- Purchase Order GRN Vendor Invoice Posting.

2. Source Determination- Purchase Req- Purchase Order GRN Vendor Invoice
Posting.
3. Source Determination- Quota Arrangement Purchase Requisition Purchase Order
GRN Vendor Invoice Posting.
4. Purchase Requisition- RFQ- Purchase Order GRN Vendor Invoice Posting.
5. Purchase Requisition Contract Purchase Order GRN Vendor Invoice Posting.
6. Purchase Requisition Scheduling agreement GRN Vendor Invoice Posting.
7. Purchase Order GRN Vendor Invoice Posting.

Scenario 1.

Purchase Req- PO GRN- Invoice Posting.

Purchase Requisition Creation – ME51N

List of Purchase Requisition (ME5A).

Release Strategy for Purchase Requisition

1. Overall Release (Header Level Release).

2. Item Level Release (Line Item Level Release).

1. Overall Release.
Release Strategy Determination Parameters Characteristics

1. Plant.
2. Purchasing Group.
3. Valuation Type.
4. Purchasing Org
5. PR Value
6. PR Document Type
Value Assignment in T-Code CL24N.
Purchase Order.
Goods Receipt – MIGO
Vendor Invoice ( MIRO)
Automatic Account Determination (OBYC)
Account Determination is based upon combination of

Valuation Group Code, Valuation Class, Account Modification, Transaction Key.

Account Modifier will come only in GBB ( Inventory Off Settings).

This is movement type dependent and posting is done without any reference document. In order
to identify the type of movement account modifier comes to picture.

Offsetting entries for stock postings (GBB) are used in Inventory Management. They are
dependent on the account grouping to which each movement type is assigned. 

The following account groupings are defined in the standard system. Note that VBR is one of
them.

 AUA: for order settlement

  AUF: for goods receipts for orders (without account assignment) and for order settlement
if AUA is not maintained
 AUI: Subsequent adjustment of actual price from cost center directly to material (with
account assignment)
 BSA: for initial entry of stock balances
 INV: for expenditure/income from inventory differences
 VAX: for goods issues for sales orders without account assignment object (the account is
not a cost element)
 VAY: for goods issues for sales orders with account assignment object (account is a cost
element)
 VBO: for consumption from stock of material provided to vendor
 VBR: for internal goods issues (for example, for cost center)
 VKA: for sales order account assignment (for example, for individual purchase order)
 VKP: for project account assignment (for example, for individual PO)
 VNG: for scrapping/destruction
 VQP: for sample withdrawals without account assignment
 VQY: for sample withdrawals with account assignment
 ZOB: for goods receipts without purchase orders (mvt type 501)
 ZOF: for goods receipts without production orders (mvt types 521 and 531)

Goods Receipt Cancellation after Invoice Receipt

1. After Invoice, system will not allow to cancel GRN. Need to cancel Invoice and then cancel
GRN.
c

Cancel Invoice (T-codeMR8M). Display Invoice (T-code MIR4).

2. Invoice Receipt document is open, but still system will allow to cancel GRN.
Scenario 2- Source Determination Purchase Requisition Purchase Order GRN Vendor
Invoice Posting.

Source List can be made mandatory at the material level and at the Plant Level.

At Material Level.
At Plant Level.

Before Source List Creation Purchasing Info Record must exist.

To Create info Record.

1. Manually (T-code  ME11).

2. Automatically (At the time of purchase order creation)
Create Source List.
PO Created
GRN Created.

Source Determination Quota Arrangement Purchase Requisition Purchase Order Goods

Receipt Invoice Receipt

Quota Arrangement

Material A is supplied by three vendors at the same period of time then system will determine
automatically how much each vendor will supplied on that period of time.
3 vendors .

3 info record.

Source list.

Quota arrangement.
Source List

MEQ1 (Quota Arrangement).

Purchase Requisition
Scenario 4

Purchase Requisition- RFQ- Purchase Order Goods Receipt Invoice Receipt.

PROJECT A PROJECT B

5 ven 3 ven
Quotation Price is same purchase price which will automatically update at Info record.
T-code ME41
Maintain Price Quotation. T-Code ME47.
Price Comparison ME49
Outline Agreement.

1. Contract 2. Scheduling Agreement

1. Contract.

a. Value Contract—Agreement between Vendor and Company to supply the goods based
upon value mentioned in the contract with specified period.

b. Quantity Contract- Agreement between Vendor and Company to supply the goods based
upon quantity mentioned in the contract within specified period.
PR Contract PO GRN Posting Invoice Posting.
Material Unknown Scenario.
Material Group Scenario

Scheduling Agreement.
To Create Scheduling Agreement T-Code-> ME31L.
To Maintain Delivery Schedule ME38.
T-Code-MIGO.

Scheduling Agreement (LP Without SA Release)/ LPA With SA Release).

 Scheduling Agreement with SA Release

Scheduling Agreement with SA release documentation means delivery schedule will be recorded in
the scheduling agreement that at what date and time the delivery schedule transmitted to vendor.

Material Master Settings.

Scheduling Agreement Creation ME31L.
For message determination T-codeMN07 Creation, MN08 Change and MN09 Display.
Message Output Determination  ME9L.
Delivery ScheduleME38.
Message Output for Delivery Schedule  ME9E.

Goods Receipt
 Inventory Management

Movement of goods which creates material document as well as accounting documents.

Main concept of Inventory management of various goods movement which denoted by movement
types.

Movement Types determines automatic account determination. It updates stock account as well
as consumption account.

1. Inbound Process
2. Outbound Process
3. Internal Movement Process
4. Vendor return Process.

1. Inbound Process. ( Receiving of goods) (P2P process)

Inbound delivery also but it is mandatory

101, 102,103,104,105,106,107,108,109,651,652.

2. Internal Movement Process ( Stock transfer from one SLOC to another SLOC within a plant,
Material to Material transfer, Blocked stock to Unrestricted).

311, 312, 309, 310.

3. Outbound Process (Issuing goods) (STO process, O2C Process)

601, 602, 641,642,643,644.

4. Vendor Return Process ( Return to Vendor).

122,123,161,162.
 1. Inbound Process

PO GRN Invoice.

PO Inbound Delivery GRN Invoice.

Business IBD (ASN)—Advanced Shipping Notification.

Vendor sends notification to company when they are supplying the material, how much quantity
to be delivered.

Interface Vendor Portal SAP .

Vendor Portal  Vendor User Id , Password.

PO 100 pcs.

23.12.2020 20 Pcs.

24.12.2020 80 Pcs.

This information in the vendor portal when it comes to SAP it creates Inbound Delivery.

Purchase Order (ME21N).

To create Inbound Delivery confirmation control key is mandatory.

Inbound Delivery Creation (VL31N).

Table – EKES.

Stock Reporting.

MB51- Material Movement Report.

MMBE-> Stock Overview.

MB52 Stock Overview.

MB5B Stock Overview based on posting date.

MB5S Stock value.

MB5L GR/IR Value

Two options to update confirmation control key automatically in PO.

1. At Vendor Master

2. At Purchasing Info Record.

3. Through Configuration.
Confirmation Control Key Configuration.
Standard Stock Type

1. Unrestricted Use Valuated Stock, And ready to use

2. Blocked Valuated Stock and also not ready to use.
 3. Quality Inspection Valuated Stock and updated in quality inspection lot. It is not ready
to use.

GR as GR blocked stock 103, 104

Release GR blocked Stock 105, 106

Difference between GR Blocked and Blocked Stock.

GR Blocked Stock is non valuated it is always update the stock at the plant level. No accounting
entries

Blocked Stock is always Valuated it is always updates at the storage location level. Accounting
document will be created.

Goods Receipt.
GRN as Blocked Stock.
Initial Stock Upload (561).

Configuration for Inventory Parameters.

 2. Internal Stock Movements.

Internal Movements within same plant or within same material. And there will be no accounting
entries.

Movement Type- 311 ( Sloc to Sloc within same Plant).

Movement Type- 309 (Material to Material ).

Movement Type- 343 (Unrestricted to Blocked )/ 344 (Blocked to Unrestricted).

Movement Type – 321 (Quality Inspection to Unrestricted)/ 322 (Unrestricted to Quality

Inspection).

Movement Type- 349 ( Blocked to Quality)/ 350 (Quality to Blocked).

Scenarios.

Blocked to Unrestricted (343).

Storage Location to Storage Location (311).

Material to Material (309).

Base unit of measure of issuing and receiving material should be same.

If MAP is different between materials then it will create accounting document.

 3. Outbound Process.

STO ( Intra or Inter)

O2C ( Order to Cash).

Concept of Outbound Delivery.

STO Process Flow.

STO PO Outbound Delivery PGI- GRN at Receiving Plant.

STO Document Type.
Set Up Sales Area
Create Customer for Receiving Plant ( T-code VD01)
Define Shipping Data for Supplying Plant
Assign Document Type and Delivery Type against Supplying Plant.
Shipping Point Determination.
Extending Material to Sales View.
Create STO PO

Create OBD VL10B

Display OBD VL03N.
Stock in Transit (MB5T).

Goods Receipt against OBD. MIGO

STO Scenarios.

1. Auto Picking at the OBD level.

T-Code OVLT.

T-code VP01SHP
Automatic Picking for storage location of the supplying plant.
2. Automatic Outbound Delivery Creation.
Scenario 3.

Picking not relevant.

Scenario 4.

STO POOBD PGI IBD GR.

Shipping Point of the Receiving Plant.

T-code VV21 (Automatic IBD creation after PGI)

T-CodeVV21 SPER ( Inbound Delivery deletion after PGI reversal).