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Sap MM
Sap MM
receipt is being done. Client wants this more controlled as the GRIR account is being
affected. So no reversals to be done after Invoice verification. How to approach
this?
Make this setting: SPRO > Materials Management > Inventory Management and Physical
Inventory > Goods Receipt > For GR-Based IV, Reversal of GR Despite Invoice
Now the system will not allow to return the Good at any case. *-- B.Anand daivaraja
I have created a new vendor. Later I found that there were some mistakes and that
I want that the system should not allow me to make any PO or post any entries to
this vendor. How to deactivate this vendor?
You define the order float in the scheduling margin key, The scheduling margin key is
copied from the material master. The float before production or float after production
and the release period are defined in the scheduling margin key
For Customizing for Shop Floor Control, by choosing Operations --> Scheduling --> Define
Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material master)
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and is transferred when the production order is created. These values can be changed in
the production order.
Function of the OBYC stand for Configure Automatic Postings. In this step, you enter the
system settings for Inventory Management and Invoice Verification transactions for
automatic postings to G/L accounts.
Postings are made to G/L accounts automatically in the case of Invoice Verification and
Inventory Management
transactions relevant to Financial and Cost Accounting.
For example, Posting lines are created in the Stock account and Consumption account.
In global trade, you often need to process several different kinds of transactions at the
same time. The Trading Execution Workbench (TEW) provides a central cockpit where
traders can process trading contracts and their subcomponents, such as purchase orders
and sales orders and follow-on documents. In addition, TEW automates a large part of the
data entry, making processing quicker, easier, and more error-free.
Try MMDE transaction but be careful this will remove all material from Client.
What is the use of Tables in MM. i.e. How the tables get created?
Through SE11 you can create a new Table. In MM if you create a Material Master MARA,
MARM, MARC,MARD, MBEW & MVKE will updated. In Vendor Master LFA1, LFB1 & LFM1
will be updated. The same applies to EKKO,EKPO for P.O, MSEG & MKPF for MIGO & RBKP
for MIRO.
If in any error, only the message no. ! or the table no. is shown , then how to
resolve the error using message no. or table no.?
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Contact ABAP or BASIS person to resolve this.
In transaction code SE93 you can create, Change & Display a Transaction Code.
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With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery
schedule line via Transaction ME38 or MRP running (with the appropriate setting of
Source List).
3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation
(subject to the Document Type LP or LPA) with the selection of either FRC or JIT
delivery schedule.
5. Either time-dependent or time-independent conditions can be created subject to
the customizing in the Document Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used.
9. How does the system calculate taxes?
10. How does the system calculate nondeductible taxes?
11. What is meant by batches? How can the batches be searched?
A batch is a subdivision of your stock of a material having the same
characteristics.
For instance:
- food production uses batches to indicate the day of production.
- paint production uses batches based on production date and the used ingredients.
It is very hard to reproduce the same color in exactly the same way at two
different moments.
- ore may be divided in batches based on their mineral content.
You can search batches using the standard search facility (match code, key F4)
based on the naming convention of the batches or, if you use batch classification,
based on the characteristics of the batches.
12. How is a shelf-life item managed in SAP? What is the full cycle?
13. What are the settings required for quota arrangement?
To set up a quota arrangement for the procurement of a material, proceed as
follows:
Master data -> Quota arrangement -> Maintain, enter the material and plant
number, press ENTER to display the overview screen for the quota arrangement
periods, Enter a validity period for quota arrangement, Enter date until which the
quota arrangement is valid. The start date is calculated by the system. Press
ENTER .
Select the quota arrangement and choose Goto -> Item overview to display the item
overview screen of the quota arrangement. Enter a quota arrangement item for
each source of supply you want to include in the quota arrangement.
You must enter the following data.
- Procurement type
- Special procurement type, Enter k in the S column, for example, if a consignment
arrangement for the material exists with the vendor.
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- Vendor number
- Procurement plant (supplying plant):
- Quota column, enter the quota assigned to each item.
Press ENTER .
The percentage distribution of the quotas is calculated and displayed automatically
by the system.
Save the quota arrangement. The system assigns a number to the quota
arrangement item automatically
14. What is meant by MRP Type and lot sizing?
15. Can it be configured in such a way that the external requisitions can also be
taken into account while MRP runs in consumption-based planning if VB is selected
as MRP type?
16. How are free items managed in a PO? yu need to tick the tem as free in the PO.
The price will be zero for such PO's.
17. What are the differences between release procedure with classification and
release procedure without classification? When are they used?
Release procedure with classification means the Purchase requsition can be
released both at item level & at the header level. Release procedure with out
classification can also be used for PR which is used for item level release only. all
other external documents cannot be relesed with classification. The two
procedures are mutually exclusive (that is to say, you must decide in favor of one of
them only - you cannot use both).
18. Is it possible to have a release procedure without classification for a PO?
No
19. What is the maximum number of levels available in SAP?
Did not get this question …pls clarify.
20. Is it possible to have scales in a quotation?
No
21. What is GR blocked stock? When it can be used?
Whenever you are not sure about the quality of the product received, you can put in
GR blocked stock.
22. How are the variations in subcontracting taken care of in SAP?
23. How to give specifications for developments?
We normally prepare a business requirement document in which we specify what is
required. what field & tables have to be referred for the required development.
24. How to create PR or PO by MRP?
The PR is created according to the safety stock mentioned for the material or can
be triggered from a requirement . For creating a PO, you need to have the
scheduling agreement in place .After the MRP is run the schedule lines are
generated which are nothing but the PO.
I have created a new vendor. Later I found that there were some mistakes and that
I want that the system should not allow me to make any PO or post any entries to
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this vendor. How to deactivate this vendor?
You can block a vendor at the following levels:
All company code
Single company code
All Purchase org
Single Purchase org
Where to Get the Goods Movement Type List?
Step 1) Run spro command/TC
Step 2) Then move to "SAP Reference IMG" screen
Step 3) Then navigate following path:
IMG --> Materials Management --> Inventory Management and Physical Inventory --
> Movement Types --> Copy, Change Movement types
Here with "Copy, Change Movement types" option a help tutorial is available
(rectangular blue colour icon). In that go to "Further information" section where
you can find a big list of movement types with some brief explanation.
Where the schedule margin key is customized?
You define the order float in the scheduling margin key, The scheduling margin key
is copied from the material master. The float before production or float after
production and the release period are defined in the scheduling margin key
For Customizing for Shop Floor Control, by choosing Operations --> Scheduling -->
Define Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material
master) and is transferred when the production order is created. These values can
be changed in the production order.
What is the function of OBYC?
Function of the OBYC stand for Configure Automatic Postings. In this step, you
enter the system settings for Inventory Management and Invoice Verification
transactions for automatic postings to G/L accounts.
Postings are made to G/L accounts automatically in the case of Invoice Verification
and Inventory Management
transactions relevant to Financial and Cost Accounting.
For example, Posting lines are created in the Stock account and Consumption
account.
Tell me what is *make to order*?
Make-to-order production is a process in which a product is individually
manufactured for a particular customer. In contrast to mass production for an
unspecified market where a material is manufactured many times, in make-to-order
production a material is created only once though the same or a similar production
process might be repeated at a later time.
In global trade, you often need to process several different kinds of transactions
at the same time. The Trading Execution Workbench (TEW) provides a central
cockpit where traders can process trading contracts and their subcomponents, such
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as purchase orders and sales orders and follow-on documents. In addition, TEW
automates a large part of the data entry, making processing quicker, easier, and
more error-free.
How to delete a material completely?
Try MMDE transaction but be careful this will remove all material from Client.
What is the use of Tables in MM. i.e. How the tables get created?
Through SE11 you can create a new Table. In MM if you create a Material Master
MARA, MARM, MARC,MARD, MBEW & MVKE will updated. In Vendor Master LFA1,
LFB1 & LFM1 will be updated. The same applies to EKKO,EKPO for P.O, MSEG &
MKPF for MIGO & RBKP for MIRO.
If in any error, only the message no. ! or the table no. is shown , then how to resolve
the error using message no. or table no.?
Contact ABAP or BASIS person to resolve this.
How to create new transaction codes?
In transaction code SE93 you can create, Change & Display a Transaction Code.
2. What is meant by consignment stock?
3. A form of business in which a vendor (external supplier) maintains a stock of
materials at a customer (purchaser) site.
The vendor retains ownership of the materials until they are withdrawn from the
consignment stores.
Payment for consignment stock is required only when the material is withdrawn for
use. For this reason, the vendor is informed of withdrawals of consignment stock on
a regular basis.
3. You have to activate the consignment price via info record in SPRO -> Materials
Management -> General settings for materials management --> Activate
Consignment Prices via Info Records
5. 4. Here you have to remember that, while placing PO, the price will be zero and the
price will be picked from inforecord.
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5. Vendor will supply the goods as per the PO and our company will receive the
goods. After receiving the goods the same will be lying in your company premises,
but not belongs to your inventory. It can be used only after posting to inventory or
consuming directly. But will pay for the goods as & when we are consuming/posted
to inventory to the company.
6. The payment will be made thru MRKO settlements. We can also set for automatic
payments thru batch jobs.
Pur Org:
This standard (default) purchasing organization is used When the source of supply
is determined for the purposes of a stock transfer or consignment, the default
purchasing organization is used automatically. Further purchasing organizations can
be assigned to the site in addition to the default. A site cannot order if it has not
been assigned to a purchasing organization.
6.
7. What are the steps in automatic account assignment configuration?
8. Define Valuation Classes. (OMSK)
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Define Valuation
Classes.
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Define Valuation Control. (OMWM)
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Define Valuation
Control.
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Define Account Grouping
for Movement Types.
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Group Together
Valuation Areas
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Configure Automatic
Postings
For example, you can stipulate for a price that the SAP System first searches for a
price for a specific plant, and then for a generally applicable price.
For condition types for which you wish to maintain conditions with their own validity
period, you must assign an access sequence. With this, you define which fields the
SAP System checks in searching for a valid condition record.
Example:
An access sequence has been assigned to condition type PB00 so that prices can be
maintained in purchasing info records and contracts.
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No access sequence has been assigned to condition type RC00 because it does not
have a validity period of its own. In the standard system, it is always maintained
simultaneously with the price and is valid for the period of the price.
12.
How does the PO pick up the pricing schema?
13. The calculation schema picks up using vendor schema (if you assign calculation
schema only to vendor schema then it will pick the same calculation schema for the
vendors assigned to particular vendor schema even though the Pur. Org is
different, the condition is the vendor record must be exist in all Pur. Org) or
purchasing org schema (if you assign calculation schema only to purchasing schema
then the PO will pick up same calculation schema for different vendors), or both at
time (if you wants separate pricing for domestic and foreign vendor under one Pur.
Org maintain two vendor schemas different for two vendors and assign it to
purchasing org schema).
14.
What are the types of special stocks available?
15. Special stocks and special procurement types are divided into the following areas:
- Consignment
- Subcontracting
- Third-party processing
- Pipeline handling
- Project stock
MM01 - Create,
MM02 - Change
MM03 - Display
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MM06 - Flag for deletion.
MM04 - Display the changes done to the material master.
MMAM - Change the Material Type. for e.g. from FERT to HALB
Unit of Measure
In the material master, there is a Units of measure button for users to store in the
different conversion rate. This sample program (ZUNT) extract the data from the unit of
measure conversion table.
In the Material Master the moving average price are affected by:-
For e.g.
COMPANY RELIANCE -9001
COMPANY CODE -8001
RELIANCE MOBILE
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PLANT 2
COMPANY RELIANCE -9001
COMPANY CODE -8001
RELIANCE MOBILE
PLANT 1
PLANT 2
PLANT 1
PLANT 2
COMPANY RELIANCE -9001
COMPANY CODE -8001
RELIANCE MOBILE
PLANT 1
PLANT 2
PLANT 1
PLANT 2
Path to create COMPANY:
SPRO IMG <Enterprise structure > <Financial accounting> < Define Company> (select
company 1000 and select copy as give your own company name reliance for
example)
Company - 9002
Company Name - Reliance
Enter required field now your own company Reliance is ready.<SAVE>
SPRO IMG <Enterprise structure > < Edit copy, Delete, Check Company Code> <Edit
company code data> <select company code 1000 copy as> and enter your own
company name Reliance mobile (like a number of company code you can assign to
your own company)
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Enter all required fields.
Again same way create one more company code for "Reliance Insurance"
<save>
Now we see How to assign Company code (Reliance mobile) to our Company
(Reliance)
SPRO IMG < Enterprise Structure > < Assignment > <Financial Accounting> < Assign
Company code to Company> <select your own company code reliance mobile and enter
your F4 fine your company reliance > <SAVE>
How to configure the system for automatic conversion of Purchase Requisition
to Purchase Order?
Ensure automatic purchase order field in Material Master (purchasing view) and
Vendor Master is ticked,Maintain the source list for respective materials and
vendor. Also maintain correct data at the MRP views. On the MRP run system will
generate purchase requisitions for the following materials. Using T-code ME59
conversion of purchase requisition to Purchase orders is possible.
What are the configuration for automatic creation and selection of storage
locations in Inventory Management?
Auto creation of storage location in inventory management can be created with
respect to the movement type and plant.Using t-code OBM2/OBM3.
For automatic storage location selection, storage location data can be specified in
procurement storage location field of MRP view in Material master and Issue
storage location field in Bill Of Material.
How to maintain automatic determination of G/L accounts during
GR/GI/Transfer posting?
Automatic account determination of GL account can be maintained using T-code
OBYC by specifying GL code for specific valuation class within the posting key(TE-
KEY) maintained for respective movement types.
What is the difference between selection parameter WE101 and WE103?
To optimize internal processes, you regularly create list displays to inform yourself
about the status of your purchase orders, info records, and other documents in the
system.
You are checking the purchase orders issued over the past 24 months. you are
primarily interested in POs against which no goods receipts have been entered.
Choose the scope of list BEST_ALV, so that the list of selected purchase orders is
displayed with ALV Grid Control.
Choose Logistics --> Materials Management --> Purchasing --> Purchase Order -->
List Displays --> For Vendor (ME2L).
Selection parameter : WE101 (open goods receipt)
WE103 means then that SAP considers the GR blocked stock as well as already
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received quantity while with WE101 the GR blocked stock is not considered as
received.
What is the diffrence between XD01, XK01 & MK01? Knowing that all the
above tx codes are used to create vendor.
There are 3 t-codes by which you can create vendor:
XK01 is for centrally creating vendor where all data are included.
MK01 is for purchasing vendor.
FK01 is for accounting vendor or vendor with accounting details.
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Pricing Procedure (PP)
We define the pricing procedure to define condition supplement for the material price.
The condition supplement specifies the discount, surcharge, freight etc that we want a
system every time to access material price condition records.
The total value of the material is calculated or based on all addition and subtraction i.e.
discounts, surcharge, tax freight etc
Condition Table
It is a table, which defines the structure of condition record key.
Condition Record
It is a data record used to store conditions or condition supplements, i.e. condition like,
discount, freight, and surcharge, Tax etc.
Condition Type
It is used for different functions. In Pricing the condition types leads you to differentiate
different types of discounts, in output determination, batch determination, difference
between two output types, such as delivery note or orderconfirmation, between different
strategy types
Access Sequence
It specifies the order in which system searches or access the condition records from
condition table
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Calculation Schema
The main function of calculation schema is to provide framework of steps for the
price determination process to specify the discounts, surcharge, freight rebate etc.
It also determines the sequence of conditions that are to be followed and in which
sequence.
Schema Group
It allows to group together the purchasing organizations, which uses the same calculation
schema.
Steps: -
1. Create Access sequence
2. Create condition types
3. Create pricing procedure or calculation schema
4. Link pricing procedure & access sequence to condition type
5. Create schema group for vendor
6. Create schema group for purchase organization
7. Assign schema group vendor-to-vendor master record in purchasing data view
8. Assign schema group purchase organization to our purchase organization
9. In inforecord purchase organization data enter condition types and pricing or calculation
procedure
CUSTOMIZE SETTINGS: -
SPRO --> IMG-->MM-->PUR-->Conditions -->Define price determination Process
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1. Define access sequence
2. Define Condition type
3. Define cal. Schema
4. Define schema group
o Schema group vendor
o Schema group purchasing group
5. Assignment of schema group to PUR org
6. Define schema determination à determine cal schema for standard PO.
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5. C - Sales order
6. U - Unknown etc.
INVENTORY MANAGEMENT
Maintaining stock by value or by quantity is called inventory. The
total inventory management deals with the goods movement of the material.
Goods movement: -
It is a process in which transaction resulting change in stocks. It is further sub-divided
into three categories
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1. Goods Receipt (GR)
2. Goods Issue (GI)
3. Transfer Posting (TP)
Goods Receipt (GR): - It is a goods movement in which receipt of goods is posted for
vendor or for production. A GR posted in the system will leads to increase in stock. No
Concept of Price or value
Goods Issue (GI): - It is goods movement in which material withdrawal is posted for
consumption or for customer. A GI posted in system will leads to decrease in stock.
Stock Transfer (ST): - It is method of removal of material from one location and
transferring it to another location. This process is performed between two plants and
two storage locations.
Transfer Posting (TP): - It is a general term of stock transfer that changes the stock
type or stock categories. The difference between transfer posting and stock transfer is: -
TP is logical stock transfer and ST is a physical stock transfer.
Movement Type: - It is a three-digit code, which plays a role of important control
function in inventory management. It acts as a central role in automatic account
determination. It determines which stock account or consumption account is updated
in financial accounting.
Reservation: - It stores requisition created from particular cost center to particular
department for issuing the material reservation posted in the system. It leads to decrease
in stock.
Stock Types: - The different stock types are
1. Unrestricted use stock
2. Quality inspection stock
3. Blocked stock
4. Warehouse stock
Transaction code: -
1. To Create GR - MIGO
2. To Create GI - MB1A
3. For Transfer Posting - MB1B
4. To display Material/GR document – MB03
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5. To create reservations - MB21, MB22, MB23
6. To See Stock Overview - MMBE
7. To enter Other GR - MB1C
Movement Type’s
Movement Types under GR - 101, 331,333,335,501,503,505,551,553,555,
561,351 (For all Mov Type‘s there is a reversal e.g. 101 has 102. Note: No reversal for 121)
Movement Type’s under GI - 201, 331,333,335,551,553,555
Transfer Posting: It is performed in three ways
1. TP B/W Plant to Plant
2. TP B/W Storage Location to Storage Location
3. TP B/W Stock to Stock
Movement Types under TP B/W Plant to Plant
301 - 1 step
303 & 305 - 2 step
Movement Type under TP B/W Storage location to Storage Location
311 - 1 step
313 & 315 - 2 step
Movement Type under TP B/W stock to stock
321, 323, 325, 343,349
To Cancel the GR Movement type 102
Return delivery to vendor movement type 122 & T Code MIGO
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T Code MB1B & Movement Type 343
From Quality Inspection to Unrestricted Stock
T Code MB1B & Movement Type 321
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SPECIAL STOCKS & SPECIAL PROCUREMENT TYPES
Special Stocks are those stocks which are not belongs to our company code. These are not
placed in our storage locations & no physical inventory is performed and treated as special
stocks for the reason of ownership.
1. Subcontracting
2. Consignment
3. Pipeline
4. Stock transfer
5. Third party
6. Returnable transport packaging
7. Sales order stock
8. Project stock
SUBCONTRACTING:
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3. Create Transfer Posting with Movement Type 541 to issue the subcomponents to the
vendor
4. Goods Reciept
5. Invoice Reciept
Path: ME21N ---> Enter Item Category L -->, Material (End Product), PO Quantity,
Delivery Date, Net Price, Plant --> Click on Item Details --> Tab Material Data --
>Components, select Explode BOM --> Click on Components button --> Enter the
subcomponents --> Go back & Save.
Create Transfer Posting with movement type 541 & T Code MB1B
GR: MIGO
IR: MIRO
In consignment process we will not create Purchasing document for the vendor, vendor
himself send the material to our plant, though the material is available to our plant, the
responsibility & ownership of the material is of vendor. Aliability only arises when the
material withdrawal (Consumption) is posted in the system from consignment stock.
Steps:
1. Create Consignment info record (mandatory)
2. Create Consignment purchase order with item category ‗K‘ & maintain Info record
number
3. Create GR Movement type ‗101K‘
4. Create GI Movement Type ‗201K‘
5. Consignment settlement T Code MRKO
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Path : -->ME11 --> In info record --> Purchasing Org Data 1 views of info record enter the
tax code and save it
--> Create Consignment Purchase Order ME21N (Price option is grayed out with price zero)
--> Create GR with movement type 101K
--> Create Goods Issue (GI) T Code MB1A & Movement Type 201K Enter Cost center
vendor
--> Consignment Settlement T Code MRKO Click Activate Consignment Activate Settle
Execute
--> Display the Document Number i.e. Invoice receipt T Code FB03
In pipeline handling your company does not need to order or store the material concerned.
It is ready available to you as and when required via pipeline (e.g. oil or water), or some
other type of cable (e.g. electricity). Consumption of the material is settled with the
vendor on a regular basis.
Steps:
1. Create a Material master record with material type PIPE
2. Create Pipeline info record
3. Create GI with movement type 201P
4. Pipeline settlement T Code MRKO
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When company orders goods from a vendor, the goods are delivered with returnable
transport packaging (pallets, containers) that belongs to the vendor and is stored on our
premises until you return it to the vendor.
Steps:
1. Create Material master record with material type LEIH
2. Create PO
3. Create GR by maintaining RTP material by selecting the option transport equipments
with movement type 501M.
4. IR
STOCK TRANSFER:
In stock transfer processing, goods are procured and supplied within a company. One plant
orders the goods internally to another plant (receiving plant/issuing plant). The goods are
procured with a special type of purchase order the stock transport order.
Steps:
1. Create a Material master in both supplying and receiving plant
2. Create stock transport order (STO) with item category ‗U‘
3. Create transfer posting with movement type 351 & T Code MB1B (Go to MMBE stock
overview, the stock will decrease in supplying plant and it will not update stock of receiving
plant, it will be under stock in transit)
4. Create GR stock will update in receiving plant
Organization Structure
Organization Structure
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Note: - {1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}
Client: It is a logical unit or independent unit, which is used for to organize a specific
organization data.
IMPLEMENTATION PROCESS
First we have to prepare documentation about the client business (like turnover, vendors,
customers, payments, materials, production, marketing etc.)
The implementer company made two teams (1.) Steering team. (2.) Steering community
Steering team (SAP functional consultants) prepares a detailed documentation about the
client with the help of core team (client company team) & this study is known as Feasibility
Study. After that the steering team handed over this documentation to Steering
community (Project manager, Sr. software engineer, and other higher authorities).
Steering community prepares the BBP (Business Blue Print). BBP Prepares in MS-Word
• Project Preparation: -
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It consists of identifying team members & development strategy as how to go.
AS – IS (Existing Process followed, requirements)
TO – BE (Requirement analysis and best process recommended)
Difference between (AS – IS) & (TO - BE) is called GAP Analysis.
• Realization: -
This Phase is used to Implement or migrate the entire business of client from Non-SAP
environment to SAP environment
• Final Preparation: -
This phase is used for testing & end user training. After successfully completion of this
phase client is ready to run business in SAP R/3.
Company, Company Code & Controlling Area are created by SAP FI/CO consultant
• Rest is done by SAP MM consultant (Plant, Storage location, Pur Org., Ref Pur Org)
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• IDES: - Internet Demonstration Evaluated System. (Complete SAP System used for
educational purpose)
Transaction Code: - /N (T.Code) Closes the current session & opens the new session.
Transaction Code: - /O (T.Code) Minimizes the current screen & opens new session.
Path of SPRO
SAP EASY ACCESS --> TOOLS --> CUSTOMIZING --> IMG --> SPRO
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing
activities
Use
• Internally, the purchasing group is responsible for the procurement of a material or a
class of materials.
• Externally, it is the medium through which contacts with the vendor are maintained.
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shipping instructions and order acknowledgment requirement of the material for
Purchasing.
Procedure: If you have chosen a purchasing value key, the system enters the values
defined in Customizing (for Purchasing) in the fields.
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing
activities
Use
• Internally, the purchasing group is responsible for the procurement of a material or a
class of materials.
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• Externally, it is the medium through which contacts with the vendor are maintained.
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Steering community prepares the BBP (Business Blue Print). BBP
Prepares in MS-Word
���� Realization: -
This Phase is used to Implement or migrate the entire business of
client from Non-SAP environment to SAP environment
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In this phase we deliver the project end date & end user training at
client site.
1. Subcontracting
2. Consignment
3. Pipeline
4. Stock transfer
5. Third party
6. Returnable transport packaging
7. Sales order stock
8. Project stock
SUBCONTRACTING:
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• Manually maintain the subcomponents in the subcontracting PO though
explode BOM
• Through BOM (Bill of material) T Code CS01, CS02 & CS03
3. Create Transfer Posting with Movement Type 541 to issue the subcomponents to the
vendor
4. Goods Reciept
5. Invoice Reciept
Path: ME21N ---> Enter Item Category L -->, Material (End Product), PO Quantity,
Delivery Date, Net Price, Plant --> Click on Item Details --> Tab Material Data --
>Components, select Explode BOM --> Click on Components button --> Enter the
subcomponents --> Go back & Save.
Create Transfer Posting with movement type 541 & T Code MB1B
GR: MIGO
IR: MIRO
In consignment process we will not create Purchasing document for the vendor, vendor
himself send the material to our plant, though the material is available to our plant, the
responsibility & ownership of the material is of vendor. Aliability only arises when the
material withdrawal (Consumption) is posted in the system from consignment stock.
Steps:
1. Create Consignment info record (mandatory)
2. Create Consignment purchase order with item category ‗K‘ & maintain Info record
number
34 | P a g e
3. Create GR Movement type ‗101K‘
4. Create GI Movement Type ‗201K‘
5. Consignment settlement T Code MRKO
Path : -->ME11 --> In info record --> Purchasing Org Data 1 views of info record enter the
tax code and save it
--> Create Consignment Purchase Order ME21N (Price option is grayed out with price zero)
--> Create GR with movement type 101K
--> Create Goods Issue (GI) T Code MB1A & Movement Type 201K Enter Cost center
vendor
--> Consignment Settlement T Code MRKO Click Activate Consignment Activate Settle
Execute
--> Display the Document Number i.e. Invoice receipt T Code FB03
In pipeline handling your company does not need to order or store the material concerned.
It is ready available to you as and when required via pipeline (e.g. oil or water), or some
other type of cable (e.g. electricity). Consumption of the material is settled with the
vendor on a regular basis.
Steps:
1. Create a Material master record with material type PIPE
2. Create Pipeline info record
3. Create GI with movement type 201P
4. Pipeline settlement T Code MRKO
35 | P a g e
When company orders goods from a vendor, the goods are delivered with returnable
transport packaging (pallets, containers) that belongs to the vendor and is stored on our
premises until you return it to the vendor.
Steps:
1. Create Material master record with material type LEIH
2. Create PO
3. Create GR by maintaining RTP material by selecting the option transport equipments
with movement type 501M.
4. IR
STOCK TRANSFER:
In stock transfer processing, goods are procured and supplied within a company. One plant
orders the goods internally to another plant (receiving plant/issuing plant). The goods are
procured with a special type of purchase order the stock transport order.
Steps:
1. Create a Material master in both supplying and receiving plant
2. Create stock transport order (STO) with item category ‗U‘
3. Create transfer posting with movement type 351 & T Code MB1B (Go to MMBE stock
overview, the stock will decrease in supplying plant and it will not update stock of receiving
plant, it will be under stock in transit)
4. Create GR stock will update in receiving plant
36 | P a g e
SAP Inventory Management Movement Type 1
Below you will find a short description of the standard movement types. The reversal
movement type is the movement type + 1 (reversal of 101 = 102).
If the purchase order or order has not been assigned to an account, a stock type
(unrestricted-use stock, stock in quality inspection, blocked stock) can be entered during
goods receipt.
If the purchase order or order has been assigned to an account, the goods receipt is not
posted to the warehouse, but to consumption.
In the case of non-valuated materials, the goods receipt is posted to the warehouse,
although the purchase order has not been assigned to an account.
Possible special stock indicators:
Goods receipt for subcontract order: at goods receipt, the consumption of the components
is posted at the same time (see movement type 543)
Goods receipt for stock transport order: at goods receipt the transported quantity is
posted in the receiving plant from stock in transit into unrestricted-use stock (stock in
quality inspection or blocked stock).
You cannot receive goods into goods receipt blocked stock for stock transport orders.
Possible special stock indicators:
K, O, E, Q
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This goods movement corresponds to a valuated movement type 103.
Possible special stock indicators:
None
Using movement type 122, you can distinguish real return deliveries for a purchase order
or order from cancellations (102).
In the standard version, you must enter a reason for the return delivery if you are using
movement type 122. This enables you to carry out evaluations for return deliveries.
The effects of movement type 122 correspond to a cancellation of movement type 101.
Possible special stock indicators:
K, O, E, Q
If you returned a goods receipt using movement type 122, you can reverse the return
delivery using movement type 123. This movement type has the same effects as movement
type 101.
Possible special stock indicators:
K, O, E, Q
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Using movement type 124, you can return a goods receipt to GR blocked stock ( 103).
Movement type 124 has the same effects as movement type 104.
Possible special stock indicators:
K, O, E, Q
If you returned a goods receipt to GR blocked stock using movement type 124, you can
reverse the return delivery using movement type 125.
Movement type 125 has the same effects as movement type 103.
Possible special stock indicators:
K, O, E, Q
If a purchase order item is marked as a returns item, the returns to vendor are posted
using movement type 161 when the goods receipt for purchase order ( 101) is posted.
Movement type 161 has the same effects as movement type 122.
Possible special stock indicators:
K, O, E, Q
39 | P a g e
P: Goods withdrawal from the pipeline
If you have withdrawals from consignment stock and from pipeline, payables to suppliers
ensue.
You use this movement type if you want to process the delivery without Shipping.
The goods can only be withdrawn from unrestricted-use stock.
Possible special stock indicators:
E, K, Q
Use this movement type if you have not entered a customer order in SD. In the standard
system, the movement is assigned to a cost center.
The goods can only be withdrawn from unrestricted-use stock.
Possible special stock indicators:
K
40 | P a g e
The goods can only be withdrawn from unrestricted-use stock.
The goods issue can also be posted via a delivery in Shipping.
Possible special stock indicators:
E, K, P, Q
With this movement type, all account assignment fields are ready for input. You can assign
the movement to any arbitrary account assignment object.
The goods can only be withdrawn from unrestricted-use stock.
Possible special stock indicators:
E, K, P, Q
Below you will find a short description of the standard movement types. The reversal
movement type is the movement type + 1 (reversal of 301 = 302).
303 Transfer posting plant to plant in two steps - removal from storage
The quantity is transferred from unrestricted-use stock of the issuing plant to stock in
transfer in the receiving plant.
For technical reasons, you cannot carry out transfer postings from plant to plant in two
steps for split valuation materials.
Removal from storage can be posted with movement type 603 via Shipping.
Possible special stock indicators:
None
The quantity is posted from stock in transfer to unrestricted-use stock in the receiving
plant. The movement is not valuated.
You can use movement type 605 in Shipping to post the goods receipt with reference to
the delivery.
Possible special stock indicators:
None
41 | P a g e
309 Transfer posting material to material
The quantity is posted from unrestricted-use stock of the issuing material into
unrestricted-use stock in the receiving material.
Prerequisite: both materials have the same stockkeeping unit.
Possible special stock indicators:
E, O, Q, V, W
The quantity is transferred from unrestricted-use stock of the issuing storage location to
unrestricted use in the receiving storage location.
Possible special stock indicators:
E, K, M, Q
See also 321, 343, 349, and 455 for other stock types
313 Stock transfer storage location to storage location in two steps - removal from
storage
The quantity is transferred from unrestricted-use stock of the issuing storage location to
stock in transfer in the receiving storage location.
Possible special stock indicators:
None
315 Transfer posting storage location to storage location in two steps - placement in
storage
In the receiving storage location, the quantity is transferred from the stock in transfer to
the unrestricted-use stock.
Possible special stock indicators:
None
317 Putting together a structured material from its constituent components (Retail)
A material split up into its components using movement type 319 can be put together again
using movement type 317.
The effects of movement type 317 correspond to a reversal of movement type 319.
Possible special stock indicators:
None
42 | P a g e
You can enter the splitting up of a structured material manually using movement type 319.
You can configure Customizing so that a structured material (for example, a set, prepack,
or display is automatically split up into its components at the time of goods receipt. The
system posts the split using movement type 319. In this process, the BOM header material
is posted and each of the component stocks are increased. You can also use this function if
you use the Warehouse Management System (LE-WM).
Possible special stock indicators:
None
Example:
A box of the structured material S contains 3 pieces of the component K1 and 4 pieces of
the component K2. The following material document items result after the material is split
up upon goods receipt:
Qty Unit Material Movement type
1 box S 101 +
1 box S 319 -
4 piece K1 319 +
5 piece K2 319 +
The quantity is transferred from stock in quality inspection into unrestricted-use stock.
Here you can post the quantity to another storage location.
You cannot use this movement type for QM-managed materials since transfer posting for
these materials takes place via the usage decision.
Possible special stock indicators:
E, K, O, Q, V, W
323 Transfer posting storage location to storage location - stock in quality inspection
The quantity is transferred from stock in quality inspection in the issuing storage location
into stock in quality inspection in the receiving storage location.
Possible special stock indicators:
E, K, Q
The quantity is transferred from blocked stock in the issuing storage location into blocked
stock in the receiving storage location.
Possible special stock indicators:
E, K, Q
43 | P a g e
The sample is destructive, that is, the withdrawal has the same effects as scrapping.
Possible special stock indicators:
E, K, Q, V, W
The sample is destructive, that is, the withdrawal has the same effects as scrapping.
Possible special stock indicators:
E, K, Q, V, W
The sample is destructive, that is, the withdrawal has the same effects as scrapping.
Possible special stock indicators:
E, K, Q
Using this movement type, you can change a batch's valuation type. The system
automatically calls up this movement type when you want to revaluate a batch by choosing
Logistics -> Central Functions -> Batch Management -> Batch -> Change (transaction code
MSC2N). There is no reversal movement type.
Possible special stock indicators:
E, Q
This goods movement is automatically created when there is a change in the status of a
batch and it is also used to transfer the unrestricted-use stock into restricted-use stock.
Possible special stock indicators:
E, K, M, O, Q, V, W
The quantity is transferred from blocked stock to unrestricted-use stock. You can also
post the quantity to another storage location.
Possible special stock indicators:
E, K, Q
The quantity is transferred from blocked stock to stock in quality inspection. Here you can
transfer the quantity to another storage location.
44 | P a g e
Possible special stock indicators:
E, K, Q
The quantity is transferred from unrestricted-use stock in the issuing plant to stock in
transit in the receiving plant.
Movement type 351 is only used if the goods issue is posted without a delivery in Shipping.
A goods issue for a stock transport order with delivery in Shipping is posted using
movement types 641, 643, 645, or 647 .
The transfer posting is also possible for materials with split valuation.
The goods issue for a stock transport order takes place using movement type 101.
Possible special stock indicators:
E, Q
For special stock indicators E and Q and for purchase orders assigned to an account,
ensure that the quantity is not posted to the stock in transit in the receiving plant.
The quantity is transferred from unrestricted-use special stock E ( sales order stock),
unrestricted-use stock K ( consignment stock) and unrestricted-use special stock Q (
project stock) to unrestricted-use storage location stock. The corresponding special stock
indicator is required for this movement.
If you do not use the special stock indicator, the system uses this movement type and
movement type 311.
For sales order stock, you can change the material number for this movement if you
manage the material in your company's own stock under a different material number (for
example, for configurable materials).
Consignment stock is transferred to valuated stock, thus resulting in a vendor liability.
You can use this movement type to carry out a transfer posting from your own
unrestricted-use stock, other sales order stock, consignment stock, and project stock to a
sales order stock.
Possible special stock indicators:
E, K, Q
You can use this movement type to carry out a transfer posting from your own
unrestricted-use stock, consignment stock, and other project stock to a project stock.
45 | P a g e
Possible special stock indicators:
E, K, Q
Part of the stock of an "empties" material assigned to a full product is managed in the
stock type "tied empties".
Empties stock not assigned to a full product forms part of the stock type "unrestricted-
use".
Using movement type 441, you can make a transfer posting for an empties material from
the stock type "unrestricted-use" to the stock type "tied empties". Movement type 442
reverses this transaction.
Example:
The full product "beer" has a stock of 15 cases. Part of the empties components "bottle"
and "case" is tied empties stock.
Material unrestricted-use tied empties
Beer 15
Bottle 240 360
case 10 15
Using movement type 451, you post customer returns without a returns delivery in
Shipping into blocked stock returns.
Possible special stock indicators:
None
See also: 453, 651, 653
The quantity is transferred from blocked stock returns to unrestricted-use stock and
thereby transferred to valuated stock.
With this movement you can transfer the quantity to another storage location at the same
time.
Possible special stock indicators:
None
455 Transfer posting storage location to storage location - blocked stock returns
The quantity is transferred from blocked stock returns of the issuing storage location to
blocked stock returns of the receiving storage location.
46 | P a g e
Possible special stock indicators:
None
The quantity is transferred from blocked stock returns to quality inspection stock and
thereby transferred to valuated stock.
With this movement you can transfer the quantity to another storage location at the same
time.
Possible special stock indicators:
None
The quantity is transferred from blocked stock returns to blocked stock and thereby
transferred to valuated stock.
With this movement you can transfer the quantity to another storage location at the same
time.
Possible special stock indicators:
None
Below you will find a short description of the standard movement types. The reversal
movement type is the movement type + 1 (reversal of 501 = 502).
This movement type is used for deliveries from vendors that are not based on a purchase
order. Invoice verification is not possible for these goods receipts.
For a goods receipt for purchase order ( 101), the receipt of returnable transport
packaging can be entered using movement type 501 and special stock indicator M.
Possible special stock indicators:
E, K, M, Q
This movement type is used for deliveries from vendors that are not based on a purchase
order. Invoice verification is not possible for these goods receipts.
Possible special stock indicators:
E, K, Q
47 | P a g e
This movement type is used for deliveries from vendors that are not based on a purchase
order. Invoice verification is not possible for these goods receipts.
Possible special stock indicators:
E, K, Q
This movement type is used for deliveries from production that are not based on an order.
Possible special stock indicators:
E, Q
This movement type is used for deliveries from production that are not based on an order.
Possible special stock indicators:
E, Q
This movement type is used for deliveries from production that are not based on an order.
Possible special stock indicators:
E, Q
The goods receipt of a by-product usually refers to an order, but it can be entered
without a reference.
If a component is entered with a negative quantity in the order, a reservation item is
created with 531 (instead of 261). The receipt of a by-product can be entered when the
component for the order is withdrawn from stock or it can be entered as an 'other goods
receipt'.
Possible special stock indicators:
E, Q
See also: 545 and 581
48 | P a g e
With this movement type you provide the subcontractor with the components required for
subcontract orders. The quantity is posted into unrestricted-use stock of material
provided to vendor.
If there is a goods receipt for a subcontract order ( 101) consumption of components is
posted from this stock.
The transfer posting can be posted via a delivery in Shipping.
Possible special stock indicators:
None
If a component is entered with a negative quantity for the subcontract order, the receipt
of the by-product is posted to stock provided to vendor during goods receipt for purchase
order or during the subsequent adjustment.
For special stock indicators E and Q, you must ensure that the quantity is not posted to
the stock of material provided to vendor, but to the unrestricted-use sales order or
project stock.
Possible special stock indicators:
E, O, Q
49 | P a g e
Possible special stock indicators:
E, K, Q
Only use this movement type (also the reversal movement type) under the following
circumstances:
Using movement type 557, you can correct purchase-order-independent stock in transit if
- a good receipt cannot be posted to a purchase order without stock in transit, even
though there is still stock in transit according to the purchase order history
- stock in transit still exists, even though there are no open stock transfer orders for the
particular material
This movement type may ONLY be used in the cases mentioned above after careful
analysis, to correct stock in transit that has rounding errors.
This movement type may not be copied.
Note!
Before using this movement type, note the following:
- 392205 Analysis stock in transit / Correction if split valuation
Possible special stock indicators:
E, Q
During initial entry of stock balances, when the ERP system is active, you enter the
physical warehouse stock figures or the book inventory from your old system into the R/3
Materials Management component. This data entry usually takes place by means of batch
input .
Possible special stock indicators:
E, K, M, O, Q, V, W
During initial entry of stock balances, when the ERP system is active, you enter the
physical warehouse stock figures or the book inventory from your old system into the R/3
Materials Management component. This data entry usually takes place by means of batch
input .
Possible special stock indicators:
E, K, O, Q, V, W
50 | P a g e
During initial entry of stock balances, when the ERP system is active, you enter the
physical warehouse stock figures or the book inventory from your old system into the R/3
Materials Management component. This data entry usually takes place by means of batch
input .
Possible special stock indicators:
E, K, Q
The goods receipt of a by-product usually refers to a network, but can be entered without
reference.
If a component is entered with a negative quantity in the network, a reservation is created
with 581 (instead of 281). The receipt of a by-product can be entered during the
withdrawal for the network or as an 'other goods receipt'.
Possible special stock indicators:
E, Q
In Shipping, this movement type is created automatically with the Goods issue for delivery
function.
The quantity is taken from unrestricted-use stock.
51 | P a g e
Possible special stock indicators:
E, K, Q
603 Goods issue for stock transport order (Shipping) with additional item
If you issue goods for a stock transport order in Shipping using movement type 641, you
can use this movement type to assign an extra item to the order.
The ordered material is transferred to the stock in transit of the receiving plant. The
material for the additional item is transferred from unrestricted-use stock in the issuing
plant to stock in transfer in the receiving plant.
You can also use this movement type without referencing a purchase order.
Possible special stock indicators:
None
See also: 303, 641
605 Goods receipt for a stock transport order (Shipping) with additional item
You can use this movement type to transfer into unrestricted-use stock the material you
posted into stock in transfer in the receiving plant using movement type 603. You post the
goods movement with reference to the purchase order (if available) or the delivery.
Possible special stock indicators:
None
See also: 305 and 641
The effects of movement type 617 correspond to those of movement type 317.
However, you can only use movement type 617 together with the special stock indicator K
and only if you have activated the business function Retail (EA-RET).
Possible special stock indicators:
K
52 | P a g e
Possible special stock indicators:
none
Used only for cross-company stock transport orders with SD billing and invoice. The
quantity is withdrawn from the unrestricted-use stock of the issuing plant. No stock in
53 | P a g e
transit is created. In a second step, the goods receipt must be entered at the receiving
plant. If an item is flagged as a returns item in the stock transport order, you can post the
goods receipt of the return at the issuing plant with movment type 673.
Possible special stock indicators:
E, K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
See also: 351, 641, 673
645 Goods issue for a cross-company stock transport order in one step (Shipping)
In contrast to movement type 643, when a goods issue is posted using movement type 645,
a goods receipt line is generated automatically ( 101). If an item is flagged as a returns
item in the stock transport order, you can simultaneously post the goods receipt of the
return at the issuing plant with movement type 675.
Possible special stock indicators:
E, K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
See also: 675
647 Goods issue for a stock transport order in one step (Shipping)
In contrast to movement type 641, when a goods issue is posted using movement type 647,
a goods receipt line (movement type 101) is generated automatically at the receiving plant.
If an item is flagged as a returns item in the stock transport order, you can simultaneously
post the goods receipt of the return at the issuing plant with movement type 677.
Possible special stock indicators:
E, Q, K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
See also: 677
Using movement type 651, you post returns from a customer with a return delivery in
Shipping to blocked stock returns.
Possible special stock indicators:
None
See also: 451, 453, 653
54 | P a g e
With this movement type you post returns from the customer with returns delivery via
Shipping directly to the valuated stock.
Possible special stock indicators:
E, Q
See also: 451, 453, 651
With this movement type you post returns from the customer with returns delivery via
Shipping directly to the valuated stock.
Possible special stock indicators:
E, Q
See also: 451, 453, 651
With this movement type you post returns from the customer with returns delivery via
Shipping directly to the valuated stock.
Possible special stock indicators:
E, Q
See also: 451, 453, 651
661 Returns to vendor via Shipping
As with movement type 502, a return delivery to the vendor is entered without reference
to the purchase order, but the goods issue is posted via a delivery in Shipping.
Possible special stock indicators:
E
If an item is marked as a returns item in a stock transport order using movement type 641,
when a goods receipt is posted against the stock transport order (movement type 101), the
return is simultaneously posted to stock in transit using the movement type 161. When the
return arrives, the issuing plant posts the goods receipt for the return using movement
type 671. Movement type 671 (like movement types 352 and 642) reduces the receiving
plant's stock in transit and increases the issuing plant's unrestricted-use stock.
Possible special stock indicators:
E, Q, K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
55 | P a g e
If you post a goods issue for a cross-company stock transport order with a returns item
using movement type 643 via Shipping, the returns are transferred to unrestricted-use
stock at the issuing plant in a second step using movement type 673.
Possible special stock indicators:
K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
See also: 643
675 Returns for cross-company stock transport order (Shipping) in one step
If you use movement type 645 to post a goods issue for a cross-company stock transport
order with a returns item in one step, the return is simultaneously transferred to
unrestricted-use stock at the issuing plant using
movement type 161 at the receiving plant and movement type 675 at the issuing plant.
Possible special stock indicators:
K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
See also: 645
If you use movement type 647 to post a goods issue for a stock transport order with a
return item in one step, the return is simultaneously transferred to unrestricted-use
stock at the issuing plant using movement type 161 at the receiving plant and movement
type 677 at the issuing plant.
Possible special stock indicators:
E, Q, K (Retail)
You can use the special stock indicator K only if you have activated the business function
Retail (EA-RET).
See also: 647
The system posts cross-system goods movements with these movement types.
The cross-system flow of goods function allows the processing of goods movements for
orders and purchase orders within a business system group that consists of multiple logical
systems.
You can find more information on Cross-System Flows of Goods in the SAP Library under
Logistics -> Logistics General -> Special Processes in Logistics -> Cross-System Flows of
Goods.
56 | P a g e
701 Inventory differences in unrestricted-use stock (MM-IM)
This movement is generated automatically when you post inventory differences in the
Warehouse Management System .
Possible special stock indicators:
E, K, M, Q
This movement is generated automatically when you post inventory differences in the
Warehouse Management System .
Possible special stock indicators:
E, K, M, Q
This movement is generated automatically when you post inventory differences in the
Warehouse Management System .
Possible special stock indicators:
None
57 | P a g e
This movement is generated automatically when you post inventory differences in the
Warehouse Management System .
Possible special stock indicators:
E, K, M, Q
The movement is generated automatically when the sales price of a value-only material is
changed (total sales price revaluation on the posting date).
Possible special stock indicators:
None
The movement is generated automatically when the sales price of a value-only material is
changed (partial sales price revaluation on the posting date).
Possible special stock indicators:
None
1. Once you have carried out the activity, the system displays a dialog box for field
selection.
In this, you can restrict the movement types you work with to various fields.
To copy a movement type, select the field Movement type and choose Continue.
The dialog box Define work area appears.
2. In the dialog box Define work area, enter the movement type you want to copy in the
From: field.
In the To: field, enter the name of the new movement type you want to create.
To go to the overview of the selected movement types, choose Continue.
3. Select the movement type you want to copy, and choose Edit -> Copy as.
Overwrite the selected movement type with the new movement type (beginning with 9, X,
Y, or Z) and copy all dependent entries.
The system copies all control indicators from the reference movement type to the new
movement type.
58 | P a g e
4. Check all views for the new movement type and, if necessary, change the control
indicators. Please note that some views have a detail screen.
Answer:
A short example:
You have 10 units of a raw material (ROH) and you send it to a Vendor (SAP uses
Movement Type 541 to perform this operation). Vendor will product Material B with
material you have sent.
Now you do not have any units into your stock, but, you have 10 units into Special Stock
(vendor).
Ok, then your vendor uses 10 units to product 1 Finished Product (FERT), and vendor will
send you this Finished Product (Material B).
Now you have to perform 101 Movement Type for material B (Finished Product).
Ok, now you must perform 543 Movement Type for material A (Raw material) you have
sent. That means this material was consumed in order to product Material B.
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Material B = 1 due 101 Movement Type.
Here we call 543 Symbolic Return / Return token, that means Vendor is returning material
you have sent, but this material was transformed in another one.
Regarding configuration, no books will be needed (I hope all agree, what we studied in
college, we just do 1-2% of that with real business task) and can be done as per business
scenarios.
1st step:
You can start with designing the SAP MM organization structure by having purchasing
organization, plants and storage locations and all assignment with plants assigned to
company code.
2nd step:
This where you will be designing master data like designing material master, designing
vendor master and designing service master. For designing material master, you have new
own customized material types, material numbering, material group, account category
reference and purchasing group with logic behind material numbering.
For designing vendor master, you have new own customized vendor account group, with
logic behind material numbering.
3rd step:
You will be designing purchasing document types (PR, RFQ and PO) and its number ranges.
4th step:
You will be designing MM pricing procedure where new customize new condition types may
be needed. If CIN involved,
5th step:
You can start with designing tax procedure with designing new condition types for non-
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deductable and deductable taxes with excise setting for plant and company code. If
purchasing process needed approval, then
6th step:
You can get started with designing release strategy with creating release class and release
characteristics.
7th step:
Here you can get started with inventory management control where goods receipt, goods
issue and stock transfer process, if require, you may go for new movement type creation.
8th step:
This will be the details configuration for logistic invoice verification with again where you
can set your tolerance limit.
9th step:
What will be left behind is the MM-FI automatic account determination, generally done in
OBYC t.code before activating valuation area in OX14 and activating valuation grouping
code in OMWM with assigning valuation area to valuation grouping code in OMWD t.code.
Also if tax involved all tax G/L account need to be assigned in OB40 t.code.
The above can be designed and kept ready before starting material management
configuration in the system and later as and when required you add new configuration as
business needed and its true business differs from company to company.
Reasons For Making Any Pricing Procedure in SAP
2011
ABHI
TWEET
1. Why we are maintaining separate pricing procedure for inter company sales and
business processs.
2. What is the different between standard and inter company pricing procedure and
what type condition type we are using in this intercompany.
There are two simple reasons for making any Pricing Procedure in SAP SD Modules.
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1) Business Reason. What are the pricing aspects or strategies you want to apply for the
client requirement in order to sell their
goods or render services, is all about the reason for various pricing procedures.
Eg: Domestic sales pricing procedure,
- Export Pricing Procedure,
- A rebate pricing procedure or
- A High Discount oriented pricing Procedures.
- A repair pricing procedures.
You have your own conditions intended to few transactions only. Put all this conditions as a
set defining your own Procedures. It may even include special requirements and formulas
applied for such Pricing Procedures.
2) A special pricing procedures, in order to facilitate added functionalities of SAP pricing
architecture, we must define new
pricing procedure. SAP Standard programmes checks these special Indicators in-order to
do some required functions.
As a example 1, you need to have a Pricing procedure for condition supplement inorder to
use the condition supplements. The condition supplement pricing procedure must be given
in the condition type definitions (v/06) of the Pricing Condition where you need to
supplement, without which SAP SD Condtion Supplements functionality doesnt work.
As a example 2, you need to have a Pricing procedure for Inter Company Billing
Conditions(IV01 & IV02) inorder to be active for Inter Company Billing specific
transactions. Thus make sure that, the procedure wouldnot apply for non-Inter company
transactions.
Eg: KA0000 for Condition Supplement for KA00
- PR0000 for Condition Supplement for PR00
- ICAA01 for Inter-Company Billing
Here I would like to remind about a important field in pricing.
In V/08 of defining a new Pricing Procedure, in main screen, you have a field called TSPP
(Transaction Specific Pricing Procedure). This has to be ticked on for Intercompany
Billings.
The SAP help reads for this field as Under:
Transaction-specific pricing procedure
Pricing procedure transaction-specific indicator
Before Release 4.0A, no special pricing procedures were used for intercompany billing and
rebate credit memos, programs were just set accordingly to deal with these situations. As
of Release 4.0A you are offered greater flexibility in the form of the option to define
special pricing procedures for intercompany billing and rebate credit memos. For reasons
of future compatability, you will still be able to use the old program specifications. For
this reason, you must set this indicator if you want to create a special pricing procedure.
This is to prevent the program settings being used.
This indicator is also used as of Release 4.0A to redetermine the condition class and the
statistical condition indicator when copying from a reference document.
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Example:
You copy prices from a shipment document to the billing document. The prices should lead
to a surcharge in the billing document. This is guaranteed by the redetermination of the
condition class in the pricing procedure.
Same case with Standard Pricing procedure or Inter Company Pricing Procedure.
hat are the stages involved in the MM procurement cycle? i.e. the whole cycle
involved in MM.
--
The typical procurement cycle for a service or material consists of the following phases:
Determination of Requirements
Materials requirements are identified either in the user departments or via materials
planning and control. (This can cover both MRP proper and the demand-based approach to
inventory control. The regular checking of stock levels of materials defined by master
records, use of the order-point method, and forecasting on the basis of past usage are
important aspects of the latter.) You can enter purchase requisitions yourself, or they can
be generated automatically by the materials planning and control system.
Source Determination
The Purchasing component helps you identify potential sources of supply based on past
orders and existing longer-term purchase agreements. This speeds up the process of
creating requests for quotation (RFQs), which can be sent to vendors electronically via
SAP EDI, if desired.
The system is capable of simulating pricing scenarios, allowing you to compare a number of
different quotations. Rejection letters can be sent automatically.
The Purchasing system adopts information from the requisition and the quotation to help
you create a purchase order. As with purchase requisitions, you can generate Pos yourself
or have the system generate them automatically. Vendor scheduling agreements and
contracts (in the SAP System, types of longer-term purchase agreement) are also
supported.
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The system checks the reminder periods you have specified and - if necessary -
automatically prints reminders or expediters at the predefined intervals. It also provides
you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.
Goods Receiving personnel can confirm the receipt of goods simply by entering the Po
number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of
ordered goods.
Invoice Verification
The system supports the checking and matching of invoices. The accounts payable clerk is
notified of quantity and price variances because the system has access to PO and goods
receipt data. This speeds the process of auditing and clearing invoices for payment.
Meantime you can maintain Info-record for material and vendor combination (ME11)
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Can any one let me know the basic difference between Logistics invoice verification
and normal / conventional invoice verification?
Logistics Invoice Verification [MIRO] was developed to take into account requirements
that were technically not possible in the conventional Invoice Verification component, such
as distributing MM and FI to separate systems.
All the functions in conventional Invoice Verification are available in Logistics Invoice
Verification. If required, you can use conventional Invoice Verification and Logistics
Invoice Verification alongside each other.
The following functions in conventional Invoice Verification are not possible in Logistics
Invoice Verification:
1. Verification of invoices with no reference in the system to a purchase order or a goods
receipt.
2. Posting directly to a G/L account, asset or material
3. Changing the account assignment in the purchase order
4. Simulation of documents
Finally, Points 1 and 2 are possible in LIV but you need to change the configuration to allow
posting direct to GL account.
Please refer to :-
IMG : Material Management -> Logistics Invoice Verification -> Incoming Invoice -
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>
Activate Direct posting to G/L Accounts and material Accounts
When you post an invoice, the system selects the accounts to be posted. Account
assignment is based partly on your entries when you create an invoice and partly on
information stored in the system.
The SAP accounts are defined in a chart of accounts. The following accounts are
particularly important for Invoice Verification:
Vendor Accounts
There is a separate account in the sub-ledger for each vendor that all amounts concerning
this vendor are posted to . Making a posting to the vendor account is not the same as
making a payment; payment is only made when the Financial Accounting department posts
the vendor's payment to a bank account.
Stock Accounts
In the R/3 System, you do not set up a separate account for each material. Instead,
different materials with similar features are grouped together in a common account (for
example, raw materials: acids). The account relevant for a material is defined in the
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material master record when a material is created. The system only posts to the stock
account when a price difference occurs for an invoice.
Tax Accounts
The system makes postings to special tax accounts when invoices include tax.
Finance will received this SAP Error Message when they tried to do a consignment
settlement without the relevant consignment vendor info record:
Diagnosis
For the system to settle withdrawals, the tax information has to be available. No tax
information could, however, be found. This can have one of the following reasons:
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For vendor 0000099099 and material ABCDEFGHIJK in plant ZZ and purchasing
organization ALL, no tax code has been entered in the consignment/ pipeline information
record.
System Response
The system is unable to settle withdrawals.
Procedure
Check the plant-to-purchasing-organization assignments in Customizing and make any
necessary changes.
Check the relevant purchasing information record and maintain the tax code if missing.
Settle the withdrawals again
In MRKO where the error message is display, click the material documents. In the
material documents, click the Partner tabstrips and you will be able to see the consignment
vendor code.
Check ME13 to ensure that the consignment info record for the vendor have been
created.
If it have not been created, the user have to input it with transaction ME11.
2. A consignment info record exist with the control indicator entered there (tax code).
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The cause might lie with the selection criteria in tr MRKO.
If only company code and plant are entered, the system lists all the pending consignment
liabilites between the vendor and the plant.
If there exist more than one info records between the vendor and the the plant and one
of the info records contains no tax code, the system issues error message M8 732 'No tax
information found' to every line item including the one with tax code maintained in the info
record.
But if you enter the consignment material or material document you need to settle on the
selection screen, the system
will settle the vendor consignment liabilites successfully provided that tax code is
maintained in the info record. It is the system logic.
While trying to settle the consignment in MRKO, I am getting the following error
message:
Consignmnt settlement: No message was found for partner 123/company code 1000.
You can goto tcode MRM1, specify the condition type = "KONS" for consignment and
Company code = 1000
I did what you suggested and now I am able to settle the consignment.
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Thanks once again for the help!
Through the use of Invoicing Plan for leasing agreements and such like, you aims to
considerably reduce the manual data entry effort in the purchasing and invoice
verification (A/P) department.
The invoicing plan enables you to schedule the desired dates for the creation of invoices
relating to the planned procurement of materials or services independently of the actual
receipt of the goods or actual performance of the services. It lists the dates on which you
wish to create and then pay the invoices.
You can have the system create the invoices automatically on the basis of the data in the
purchase order, thereby triggering payment of the vendor. It is also possible to enter the
invoice for an invoicing plan manually. It is recommended that the invoice shall be created
via Logistics Invoice Verification ---> Automatic Settlement --->Invoicing Plan Settlement.
This
transaction can also run in the background.
Following are necessary customizings and preconditions for using the Invoicing Plan
functionality in SAP -
1) You must maintain the settings in Customizing for purchasing (for example, invoicing plan
type, date categories, date descriptions, and date sequence proposals). The related path is
IMG ---> Material Management ---> Purchasing ---> Purchase Order ---> Invoicing Plan ......
2) The Purchasing document with FO Document Type (Framework Order) must be used.
This document type requires that a validity period be entered in the PO header. This
specification is adopted in the invoicing plan, provided that this has been predefined in
Customizing for the relevant invoicing plan type.
5) The vendor must have agreed to use the automatic invoice creation facility (since we
will use automatic settlement to create the invoice). In this case, the
'AutoEvalGRSetmtDel.' indicator must be flagged in the vendor master record.
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Furthermore, once Purchase Order is created with order type FO, ensure that the
indicators for GR/IR control have been set correctly on the item detail screen. The Goods
Receipt indicator may only be set in combination with the Goods Receipt Non-Valuated
indicator. The Invoice indicator must be set. For the automatic creation of invoices, the
ERS (Evaluated Receipt Settlement) indicator must be also set. A further prerequisite for
automatic settlement is that a tax code must be entered in the purchase order.
Pricing Procedure :
In MM module, pricing procedure is used during RFQ and PO creation. Total value of
material based on all addition and subtraction like discount, surcharge, tax, freight, etc. In
this we are defining pricing procedure and linking to vendor and purchase department
through the virtual schemas.
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5. Defining Schema group for Purchase Organization--- New entries.
/NMEK0--- calculation schema--- schema groups---- purchasing organization--- new
entries.
8. Linking virtual vendor to actual vendor-- /NXK02 then enter schema group vendor in
Purchasing Data )
9. Info Records (/NME11)---- click on ―Purch. Org. data1‖ and enter condition types and
pricing procedure
Anand
What are the steps in pricing determination in MM? Condition, Access sequence and
schema.
In the SAP MM Pricing is more important. Just yesterday I have completed the Pricing as
I am doing the SAPMM now. I can give some light on this Topic, not 100%. After 2 days
definitely some more I can share.
Here the Condition Type is very important like PB00, PBXX,RA01 etc.
In the background every Condition Type has its own defition means the purpose of the
Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to
be defined to work this functions.
Normally we use the existing ones without any risk. But some cases, we have to Create a
New Condition Types as per the organisation requirement.
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The Pricing Schema is useful to minimise condition types while mention prices for Vendor
on the basis of Pricing Schema which we defined according to organisation requirement.
In the system, by default some standard Scheme will be there at Vendor Schema Group in
the Vendor Master Screen means the standard one is assigned which is very lengthy which
may fullfil our requirement. But some cases which may not fullfil our requirement, in such
we have to define.
For the configuration, I may not able to explain properly through here but will give some
Idea.
I think this will help you. Actually the Pricing is a vast. Becuase each Condition have its own
importance and each Access Sequence have its own importance. So you need not bother
about this. First you learn how to define the Calculation Schema through the above.
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Here we can create many Calculation Schemas which can assign one schema to Local
vendors
another schema to out side vendor one more schema to foreign vendors like that we can
classify.
Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or
"V".
V indicate that you want the system to value the stocks with the latest price.
S indicate that you want the system to value the stocks with a fixed price method.
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Material Document Posting created - inventory increases
Accounting Document Posting created
o Debit 12345 Inventory 10
o Debit 23456 Price Variance 2
o Credit 67890 GR/IR 12
o No change in Standard Price
At the item details, look for the Return columns and tick it.
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Changing the PO Layout sets
OMFE - Messages: Output Programs
/: IF &EKKO-BSART& = 'ZB'.
/ RETURNED PURCHASE ORDER
: ELSE.
/ PURCHASE ORDER
/: ENDIF.
selection parameter
scope-of-list parameter
ME2L - Vendor
ME2M - Material
ML93 - Service
ME2K - Account Assignment
ME2C - Material Group
ME2B - Requirement Tracking Number
ME2N - Purchase Order Number
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o Click Parameters, insert a new parameter id EFB to the authorization code.
o Type in Parameters value you want e.g. XX
o You have to assign the control for ALL the SAP buyers via thier SAP users
id.
Logoff and login again. Then try to create a Purchase Order without a
reference.
Define default values for buyers
Transaction OMFI
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The Fro To controls the calculation.
Information Structure
In the SAP standard info structure S012 is updated by the Purchase Order creation date,
not the Goods Receipt date. e.g. a Purchase Order is created in January and good receipt
is in February and March, S012 will shows the values in period January.
Transaction MC26
Info structure S012 Update group (stats) SAP
Double click on Goods received qty
Transaction SU01
Input the user name and click Parameters
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LAG - Storage location
MKL - Material group
WAK - Promotion
PO Release Strategy
4.6x
Use SE12, structure CEKKO to check all the fields available for controlling the Purchase
Order.
e.g. If the total value for the Purchase Order exceeds 10,000, release strategy 01 is
assigned to the Purchase Order. There is only one characteristic created in this example.
For controlling the Purchase Order type, create characteristic for CEKKO-BSTYP and the
value NB.
Click Additional data Table name CEKKO Field name GNETW and press enter
(for currency dependent field, you are prompt to enter the currency which the system
then converts the currency of the Purchasing document into this currency)
In the Value data, in the Char. value column, type >10000 and press enter
CL02 - Class
Click Create
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In the Same Classification section, click Check with error
In the Char. (characteristic) tab, type NETVALUE to assign your characteristics to the
class
Release indicators
Release indicators Release Description
0 Blocked
1 X Release
Release Strategy
Release group 02
Rel.strategy 01
Release codes 01
Release status 0
1
Once the Purchase Order is not release, buyers will not be able to print the Purchase
Order.
Goods Receipts will be shown with Message no. ME 390 - Purchasing document XXXXXXX
not yet released.
In 4.6c, Purchase Order with Release Strategy have a tabs at the end of the Header. This
allowed the buyers to check the release status of the Purchase Order.
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The person with the release authorization have to use ME28 to release the Purchase
Order.
If you want the system to take the price from the last Purchase Order, then do not
maintain the conditions in the info record because it has precedence over the last PO. This
means that the netprice field in the info record should be left blank.
In the case when you have already maintained the conditions in the info record (or
netprice), try to delete them or make them invalid by changing the validity date.
Even though no price was maintained, the info record will still keep track of the Order
price history.
To check the Order price history, go into the material info record and click Environment -
> Order price history
If you have more than one company code, you might want to define a new document type
and number range to differentiate between the two company.
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Define a new number range not in used
OMH6 - Number Ranges for Purchasing Documents
Maintain :
Text for Document Header/Item
Text for Document Supplement
OMF6 - Messages Header Texts
From release 4.5, you can send your purchase order via output determination. This note
have indicate all the requirement and settings necessary to send purchase order via the
output determination once your SAP have been connected to an External Mail System.
First you send the text converted Purchase Order to your SAPoffice
o Sample ABAP program for sending mail to your SAPoffice
Then from Microsoft Outlook, you can send it out externally to your Vendor
Once the SAP MAPI is installed. You can create your logon profile for SAPoffice.
Go into your Control Panel of your windows.
Select the Mail option from the Control Panel to call the MAPI profile manager.
Choose Add to call up the new logon profile setup wizard
Select Add from the Services and select the SAP MAPI Service Provider
Type in the required R/3 information (client, sap user name, password)
The supplied PST file is sapwrk.pst
Now, logon to your Microsoft Outlook and see whether you can access all your SAPoffice
folders.
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If you send the file using SP01 -> System -> List -> Send, the file will have the
extension ALI. Use the Windows Explorer to default open with the Windows Notepad.
If you want to send your mail directly via Microsoft Exchange, you have to install the SAP
Exchange Connector Software on your Microsoft Exchange Server.
The setup program SETUP.EXE is located on the R/3 Presentation CD in the directory
:\GUI\WINDOWS\WIN32\SXC.
1) What is RFQ??
It is the initial step in a vendor selection process. The business sends out RFQ to the
vendors and the vendors respond back with Quotations with prices. Next step is quotation
evaluation followed by issue of a purchase order for the material/services needed.
Before creating purchasing documents you should ensure that a master record exists in
SAP for both the vendor and delivery address. T/Code ME41 Create an RFQ.
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Vendors: Do you have a list of suitable vendors for the RFQ? The vendor numbers must be
available.
Deadlines: What are the important deadlines for bidding, if any (for example, the deadline
for submission of quotations)?
Number assignment: If your company uses external number assignment, then you need an
RFQ number that falls within the valid number range.
Collective number: We recommend that you assign the RFQ a collective number. You enter
this number once, and the system copies it for each RFQ you create within a competitive
bidding process. The collective number enables you to track all RFQs for a given
competitive bidding process. The number can be alphanumeric and up to 10 characters long.
You enter it in the header data of the RFQ.
2) This process will help for Industries to choose right Vendor with compare the prices
from all quotations received as a result of a competitive bidding process using the price
comparison list . The comparison list ranks the quotations by item from lowest to highest
price.
3) You can create an RFQ from a requisition automatically. To do so, you must earmark
requisitions for RFQ processing.
4) Relevant transactions:
ME41 SAPMM06E Create Request For Quotation
ME42 SAPMM06E Change Request For Quotation
ME43 SAPMM06E Display Request For Quotation
ME44 SAPMM06E Maintain RFQ Supplement
ME45 RM06EF00 Release RFQ
ME47 SAPMM06E Create Quotation
ME48 SAPMM06E Display Quotation
ME49 RM06EPS0 Price Comparison List
As of release 4.6x, SAP does not allow multiple account assignment for blanket Purchase
Order on the same Purchase Order line. (Item Category - B - Blanket item)
To get around the constraints, users could enter a second line item and assign a different
account assignment.
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Things might get messy if the person doing the releases selects the wrong line item
or
if the Goods Receipts was received under the wrong line item.
I've found something about multiple account assingment. If i have multiple assignment
i can't have valued receipt, but if i desable the flag i have no message.
-
When you are having the multiple account assignment, then the system will force you to
have GR-non valuated indicator being flagged which results in the fact there is not any FI
document at GR posting stage and this is the standard feature of SAP.
Our users create a requisition and subsequent PO (using requisition release strategies)
with a single account assignment category. They cannot use multiple account
assignment category distribution because they cannot have non-valuated goods
receipts. They purchase services, primarily.
There are multiple occasions when the invoice for the service arrives that they need
to change the account assignment to include either multiple objects within an account
assignment category or distribute the costs among multiple account assignment
categories, as in one or more cost centers and one or more internal orders. They
wish to do this all on the same line item at goods receipt or invoice entry, rather
than modifying the purchase order.
-
It‘s not possible to do this at goods receipt as the screen layout for goods receipt to PO
cannot be modified. There is account assignment distribution on the invoice entry screen
(MIRO), but the purchase order cannot be referenced in that case.
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Has anyone encountered this requirement and, if so, how was it handled?
-
There are two preconditions that must be fulfilled -
1) Go to transaction OME9 and flag on the 'IR changeability' indicator of the account
assignment category 'K' (since this is for services).
2) When maintaining your PO, make sure that the GR-non-valuated indicator is flagged.
Is there a way to configure in MM where PO line items can have multiple account
assignments and still create accounting entries when posted during Goods Receipt in
MB01? Currently, I can't assign multiple accounting entries to PO line item unless
indicated as GR non-valuated. If GR non-valuated, no accounting entries will be
created during Goods Receipt, entries will be created only during IV.
--
In fact, it is possible to maintain multiple account assignment for each and every PO line
item by selecting the 'Multiple Account Assignment' button in the 'Account Assignment'
View of the Item Detail of PO. However, for such multiple account assignment
selection, no accounting document will be generated upon GR maintenance. This can only
be done during IR via LIV process.
From the accounting point of view, for one particular single line item, it is possible to split
into different cost centers or internal orders. For instance, I have ordered 10 pcs of
bearings of which 4 will be charged to Cost Center A and the remaining 6 pcs will be
posted to cost center B. However, it is of SAP standard feature that once using the
multiple-account assignment, no accounting document will be generated after GR
posting. They will only be posted when IR is maintained.
The confirmation control key controls the process subsequent to the creation of the PO.
E.g. For some important materials with long delivery times, you wish to receive advance
information (via the shipping notification or inbound delivery) about the expected GR date
so that you can include this information in the availability check.
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The confirmation functionality is used to get better visibility & control over the goods
receipts. Due to this requirement, when you work with confirmations, the system will not
propose any quantity for MIGO unless any confirmations are entered in the PO. Also,
MIGO will propose only such quantity for which the confirmation is entered.
In the purchase order, there is a field confirmation control key, following is its function
extracted from text book.
1.The confirmation control key governs whether confirmations are expected for specific
purchase order items and whether these confirmations are relevant for goods receipt or
materials planning.
2. If a material document is to be created when the goods receipt posting for the inbound
delivery is carried out, then the goods receipt assignment must be defined in the
confirmation control.
Configuration path:
SPRO -> MM -> Purchasing -> Confirmations -> Set up confirmation control or tcode OMGZ
Explain is there a necessity to fill the confirmation control, order acknowledgement &
confirmation requirement. In STO normally we input the data for normal P.O.'s.only.
If we input the above said data what happens if not what happens.
Confirmation gives the details of the shipping data, acknowledgement, delivery details
etc......Overall view..
Confirmation Control is configured in SPRO -> Materials Management -> Purchasing ->
Confirmations -> Setup Confirmation Control. The Confirmation Control should be assigned
to the Vendor in Purchasing View (MK01/MK02). This it gets copied into the PO.
I have to change the confirmation key (in me23N) in the confirmation tab. It is working
fine if there is no partial GR (entry in delivery schedule tab) against that line item. But if
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there is a GR entry against that line item its giving me a message 'confirmation key should
not be changed'.
This is the standard of SAP....once GR is existing for the line then you can't change the
confirmation key. To change, reverse the GR and change the key then Post GR again.
or
You can short close the PO line which you already have GR and create new line with
remaining qty and enter new confirmation key.
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Purchasing / Optimization / Customzing ...
1. Explain the basic structure of purchasing documents! What is the special feature of
purchase requisitions?
A: Header ,Item, Item detail.
2. Which control parameters are located at the item level of purchasing documents?
A: Material data, Qty/Weights,Delivery schedule, Acceptance period, Delivery invoice,
Conditions, Texts, Delivery Address, confirmations, confirmation control.
3. What does the account assignment category U (unknown) stand for? When can you
use this account assignment category?
4. How can you assign different delivery dates to a purchase order item?
A: In item details, there is a tab called Delivery schedule. In that you fill in the required
dates.
5. Why may this be advisable?
A: To inform the vendor, when the material is required. May have an extended answer.
6. What must you take into account or determine in the case of multiple account
assignment?
7. Explain the procurement process using outline purchase agreements. What are the
basic differences between a contract and a scheduling agreement?
8. What is the purpose of the collective number for RFQs?
A: To monitor all the RFQs that belongs to a single requirement.
9. With which functionality can you compare quotations submitted by different
vendors?
A: Quotation comparision in ME49.
10. At which organizational levels is info record data kept?
A: Plant.
11. What determines whether you can change the "GR", "GR non-valuated", and "IR"
indicators in the purchase order?
12. At which level is the purchase order history kept?
13. In which of the following cases can you define scales for the condition type?
Purchase order
Contract
Info record
Vendor
Quotation
Scheduling agreement
14. Which master data must you maintain for a quota arrangement?
A: In MMR Quota arrangement usage indicator in MRP2 View, which contains quota
percentaages.
15. At which levels can you define a source list requirement?
A: Plant Level.
16. Specify the priorities in the source determination process!
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A: Contracts, Scheduling Agreements, Consignments, Stock transfer and transfer posting.
In which ways can a source be assigned to a purchase requisition?
A: There is a Assign source of supply in item details screen.
18. What is the main purpose of the "Assign requisitions" function?
19. What are the preconditions for automatically generated delivery schedule lines?
A: Source list should be maintainted with MRP indicator material relevant for MRP and
Scheduling line generated automatically - 2.
20. How do you determine that the "source assignment" flag is set on the initial screen
when a purchase requisition is created?
21. Explain the advantages of external services procurement (item category "D") in
comparison with procuring services by means of a standard purchase order with account
assignment (text or material type DIEN)!
22. How do you make it possible to accept external services that are not covered by a
purchase order or exceed the scope of services covered by a purchase order?
23. What does the release strategy determine?
A: Conditions required for the approval of the documents.
24. At which level are purchase requisitions released? What does this depend on?
A: Only at item level, determined by Release without classification, at header level
determined by release with classification.
Inventory Management (incl. Special Procurement) / Physical Inventory
1. What is the difference between blocked stock and GR blocked stock?
A: Blocked stock is the stock moved to un-used stock for a specific reason.Where as GR
blocked stock is the stock received directly against a purchase doc is blcoked for quality
reasons or requirements.
2. According to the bill of material, a production order requires 10 pieces of a material.
But only 8 pieces are requested for the issue date and the remaining 2 pieces are no longer
needed, because they are already available from previous orders. What are the
implications of this? What needs to be done?
3. In which cases are reservations appropriate for goods receipts?
4. What options do you have to carry out goods movements between different plants
within your group?
A: TP from Plant to Plant ( one step and two step), TP from Plant to Plant (Crosss
company), STO.
5. You have posted the wrong quantity at GR. How do you rectify this?
A: Do a reversal proecess, or Cancel the material document, i think later is not possible.
6. Can you use different movement types in one material document?
A: Yes in case of Sub-contracting process its possible about other cases dont know.
7. How are goods movements documented in MM?
A: In material documents.
8. How are goods issues that are posted by sales and distribution (SD) documented?
A: I think Material Document.
9. What are the effects of a goods receipt?
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A: Update in PO history, Material Doc, FI accounting document, Inventory update, G/L
accounts posting, GR/IR slip, PO item set to zero if delivey completed indicator is set.
Statistical data update in inventory control, updatation of vendor evaluation data in
purchasing, Inspection lots created in QM.
10. When is the u201Cdelivery completedu201D indicator automatically set at GR?
A: When Goods received qty equals the ordered qty.
11. For which levels do you define that negative stocks are allowed?
A: I Think at Storage location level.
12. Briefly explain the process of consignment!
A: Consignment info record, Create PO with item category K, Do GR 101, TP 411. MRKO for
consignment settlement.
Customizing incl. Message Determination
1. What does the item category determine?
2. Can you define further item categories?
3. What does the document type determine with regard to purchasing documents?
4. Which parameter is used to differentiate between the output (as messages) of a
newly created or changed purchase order and a reminder or urging letter (expediter)
relating to the PO?
5. How can you ensure that the choice of the printer to be used for printing out
purchasing documents depends on the purchasing group?
Materials Planning
1. On what information are the various consumption-based planning procedures based?
Name the consumption-based planning procedures.
2. Name the 3 planning run types
3. What information is recorded in the planning file?
4. What determines whether a material is to be included in the total planning run?
5. Which times does the system take into account when scheduling for external
procurement and where are they entered?
6. How many receipt elements are created and which quantities are procured if a
requirement of 160 pieces exists, 10 pieces are available and the following conditions
exist:
a) lot-for-lot order quantity:
b) fixed lot size 100:
c) lot-for-lot order quantity with rounding value 100:
d) lot-for-lot order quantity with minimum lot size 50:
e) lot-for-lot order quantity with minimum lot size 200:
f) lot-for-lot order quantity with maximum lot size 100:
g) replenishment up to maximum stock level 500:
Account Determination/Valuation
1. On which levels can you valuate materials?
2. What is the function of the period closing program?
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3. You want to carry out a posting for a goods movement that was carried out 3 months
ago, but has not yet been posted. Which posting date do you use?
4. What is the purpose of the account grouping code?
5. Can you assign more than one valuation class to a single material master record?
6. What is a valuation class? How is it used?
7. What is the purpose of the (general) account grouping code?
8. Under which circumstances is a posting made to a difference account when a goods
receipt for a purchase order is posted to stock?
9. Are accounting documents usually created for the following postings?
Transfer posting from material to material
Material type ROH, GR for PO posted to stock
Material type UNBW, GR for PO to stock
Transfer posting from plant to plant in one step
Transfer posting from plant to plant in two steps: removal from stock
Transfer posting from plant to plant in two steps: putaway
GR for PO with account assignment, GR not valuated
GR for PO with account assignment, GR valuated
GI of a raw material (ROH)
GI of an non-valuated material (UNBW)
Invoice Verification (incl. Customizing)
1. In which cases would the stock or consumption account be credited with the cash
discount amount?
2. When does a price variance not lead to an invoice being blocked?
3. If, in an invoice, an item for $ 100 is blocked, and 2 further items for a total of $
200 are not blocked, how much is the vendor paid in the next payment run (without tax)?
4. Why is the message issued by the system about a payment block not an error
message?
5. What is a stochastic block?
6. An invoice is entered before the goods receipt is posted and is blocked due to
quantity variance. The goods receipt is then entered for the quantity invoiced, invalidating
the blocking reason. How does the system react?
7. Which options do you have for releasing an invoice manually?
8. Can invoices be blocked manually?
9. How do you enter a credit memo that results in the quantity invoiced being changed?
10. Which system-side requirements must be fulfilled before you can use evaluated
receipt settlement (ERS)?
11. When do price and quantity variances occur during the ERS run?
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SAP MM Interview Questions and Answers
Questions
1. What is the difference between the stock transfer between two plants belonging
to same company code and those belonging to different company code?
2. What are the important fields in purchasing view?
3. What are the steps in automatic account assignment configuration?
4. How do you create movement types? What are the steps involved? When will you
recommend a new movement type?
5. What is meant by access sequence? When it is used?
6. How does the PO pick up the pricing schema?
7. What are the steps involved in creating a pricing procedure?
8. What are the types of special stocks available?
9. What are the types of info records?
10. What is meant by consignment stock?
11. What are the steps involved in consignment cycle?
12. Tell me about the subcontracting cycle.
13. How is scrap accounted in subcontracting?
14. How are the byproducts taken care of in subcontracting?
15. Tell me about the various movement types and usage.
16. What is meant by scales? Can scales be used in standard purchase order?
17. What is the difference between a contract and a scheduling agreement?
18. How does the system calculate taxes?
19. How does the system calculate nondeductible taxes?
20. What is meant by batches? How can the batches be searched?
21. How is a shelf-life item managed in SAP? What is the full cycle?
22. What are the settings required for quota arrangement?
23. What is meant by MRP Type and lot sizing?
24. Can it be configured in such a way that the external requisitions can also be taken
into account while MRP runs in consumption-based planning if VB is selected as MRP
type?
25. What is a reference purchase organization? When can it be used?
26. Explain the concept of split valuation and when can it be used? What are the
settings required?
27. What are valuation area, valuation category and valuation class?
28. What is meant by a credit memo?
29. How are free items managed in a PO?
30. What is meant by a release strategy?
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31. What are release groups and release codes?
32. What are the differences between release procedure with classification and
release procedure without classification? When are they used?
33. Is it possible to have a release procedure without classification for a PO?
34. Is it possible to have scales in a quotation?
35. What is GR blocked stock? When it can be used?
36. What is the movement type for return to vendor? How to reverse it?
37. How are the variations in subcontracting taken care of in SAP?
38. What are the tools available for data migration in SAP?
39. What is the difference between LSMW and CATT?
40. How to give specifications for developments?
41. How do you plan for a vendor rating system and move about?
42. What is RTP?
43. What is the movement type used in receipt of RTP?
44. How is an item with serial no. managed?
45. How do you make variants?
46. What are the types of tables in SAP?
47. How to inventory excise duty in SAP?
48. What are the documents generated in the MIGO 101 movement type? What are the
accounts hit?
49. What is the difference between lot and batch?
50. What are the business benefits achieved by maintaining Source list and info record
?
51. How source determination works ?
Answers
1. A stock transfer from plant to plant generally takes place within a company code. It
can, however, also take place between two company codes, if the plants are assigned
to different valuation areas, which belong to different company codes.
Unlike a stock transfer from storage location to storage location, a stock transfer
from plant to plant affects both accounting and Materials Planning, as follows:
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o Materials Planning:Materials planning are affected because a change of
plant stock is taken into account by Materials Planning
2.
o RFQ/Quotation
o Purchase requisition
o Purchase order
o Master data (Info record, Source list, Conditions, Vendors etc.)
Outline agreements
o
3. Material type is assigned to A/c Cat Ref.; A/c Cat. Ref is assigned to Val. Class; Val.
class assigned to G/L A/c.
Configuration:
OMSK : Create A/c cat. ref and Val. Class; then A/c cat ref assigned to material
type.
OBYC : Assign Val. modifier (0001), New Val. Class and G/L A/c
Now create new material and assign new val. class in Accounting 1 data screen. Then
create PO, GR.
You can copy new movement type which is near-by old one.
Steps: 1) entry control data 2) short text 3) allowed transactions 4)help text 5)up
date control data 6)account grouping 7)reasons for movement
5. Condition type has an access sequence assigned to it which determines which tables
to access for data and in what sequence. This has a sequence of table based on the
most specific to most generic.
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6. The pricing procedure assigned to a vendor has a calculation schema attached to it.
This schema defines the various conditions pre-requisite, calculation & sequence in
the PO. Generally, only one type of pricing procedure is followed for all the vendors.
7. To create a pricing procedure, the steps will be
o Create Condition tables
o Create access sequence by placing the different condition tables from most
specific to the most general.
o Create the condition types
o Assign the Access sequence to the condition type
o Create the pricing procedure
o Place the all condition types in a sequential order as per the business
requirement and pricing needs.
8.
o Consignment stock - vendor
o Components provided to vendor
o Project stock
o Consignment stock customer
o Pipeline material
o Orders on hand
9.
o Standard
Pipeline
o
o Consignment
o Subcontracting
10. Consignment stock is the material which is lying in the premises but is not owned by
the company. It has no value assigned to it until it is taken into own stock. Once it is
used in production or to be sold, it is taken into own stock.
11. Consignment cycle is similar to a standard purchase cycle. The difference it that no
accounting document is created at the time of goods receipts only qty is updated.It
is settled once the same is utilized.
12. When the material is sent for subcontracting i.e. some value addition, it is
converted into a different material. It needs a BOM to define the components of
the finished item being received.
13. When the material is sent for subcontracting i.e. some value addition, it is
converted into a different material. It needs a BOM to define the components of
the finished item being received.The scrap or the process loss can be adjusted
while doing a quality inspection of the material received after subcontracting.
14. products can be taken care of by defining them in the BOM.
15.
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o 101 GR in unrest. Use
o 103 GR in Blocked stock
o 105 Release from Block to Unrest. Use stock.
o 122 Return to vendor from unrest. Use stock.
o 124 Return to vendor from blocked stock
o 301 Plant to Plant transfer.
o 309 Material to Material transfer
o 311 Transfer from stg loc to stg loc
o 261 Issue for consumption
o 411 Taking consignment stock into own stock
o 551 Withdrawal for scrapping
16. By using scales we can fix the price of a material accordingly, for example, we can
fix the material price.
17. A scheduling agreement can be made for Consignment, Subcontracting & stock
transfer. A contract, also known as a blanket PO, can be made for standard items
and can be restricted to a Value or Qty.
18. Based on the calculation schema of that condition & based on access sequence
assigned to it.
19. Condition type in the standard system: Non-deductible input tax = NAVS
Depending on the tax code in the PO item and the tax calculation schema, the
system calculates the non-deductible tax portion and inserts it in the condition
type with the category N.
Normally, the access sequence that regulates tax code determination is assigned to
the condition type.
20. Batch is a subdivision of your stock of a material having the same characteristics
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ex: medicines,food products
We can search batches using the standard search facility (match code, key F4)
based on the naming convention of the batches or, if you use batch classification,
based on the characteristics of the batches.
Total Shelf life - If total shelf life is maintained then the minimum shelf life will
also to be entered mandatory.
While taking GR for such item, it actually asks the user to enter the manufactured
date so that the system automatically calculates the expiry date.
Minimum shelf life - While taking the GR, it asks the user to enter the date of GR
date so that it checks whether the days entered in material master has been
satisfied. If the condition is not satisfied then it will not allow to take receipt for
that item.
Master data -> Quota arrangement -> Maintain, enter the material and plant
number,
Press ENTER
It display the overview screen for the quota arrangement periods, Enter a validity
period for quota arrangement, Enter date until which the quota arrangement is
valid. The start date is calculated by the system.
Press ENTER
Select the quota arrangement and choose, Goto -> Item overview to display the
item overview screen of the quota arrangement. Enter a quota arrangement item
for each source of supply you want to include in the quota arrangement.
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o Procurement type
o Special procurement type, Enter k in the S column, for example, if a
consignment arrangement for the material exists with the vendor.
o Vendor number
o Procurement plant,(supplying plant)
o Quota column, enter the quota assigned to each item
Press ENTER
Save the quota arrangement. The system assigns a number to the quota
arrangement item automatically.
23. It is procedure that you set in the system on how the Material is planned
o Reorder Point
o Seasonal requirement
o Replenishment
o Vendor Managed
o Forecast Based
o Master production Scheduling
Lot size:
You can define your requirements (to be produced or Procured) in terms of Weekly,
Monthly, Qty based, Maximum Replenishment.
24. Yes you can do it based on the MRP2 tab for material master you need to give you
MRP type as VB and in Mrp2 set automatic reorder point tab. Now run MD02 and
MD04.
25. It is reference for all the other existing Purchase Orgnizations.It is not assigned
to either to plant or comp code. The contracts, terms and conditions can be utilized
by other Purchase Organizations.
26. When the same material to be valuated differently then we can go for split
valuation. Often we use split valuation in chemical industries related to chemicals.
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0. For valuation category: origin, valuation types are local procurement and
foreign procurement
1. For valuation category: procurement types, valuation types are in-house
procurement and external procurement.
2. For valuation category: quality, valuation types are poor quality, medium
quality, high quality.
CUSTOMIZATION SETTINGS
6. Create material master and fill account cat reference in accounting view.
7. Again for same material type give valuation types which u taken and give the
moving avg price.
NEXT STEP
Once taken to MIGO check MMBE -Stock overview and MB02- Accounting views.
Valuation class- whether the materials fall in to which category for simplification
such as raw materials, semi finished goods like that.
For Ex. If you did excess payments (the difference between PO price and Account
Transfer price) to the vendor than the actual payment or under some circumstances
vendor is returning some amount to your account, for this you need to maintain one
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account type, that account type is called credit memo. This may be just to identify
why and from where the money has been posted in your account.
29. When you create purchase order for vendor at that time show in line item data in
which one check box available for free delivery. So when you want to create
purchase order with free quantity click on that check box.
30. Release strategy means, value of the purchase order is more than certain limit, that
can be released by MM manager. That movement type is ME29N.
31. Release code is a two character ID allowing a person to release a requisition or an
external purchasing document. Release group is a group of release codes which can
release a purchasing document for a release strategy.
32. Release procedures with classification can be used for both internal and external
purchasing documents, whereas release procedures without classification can be
used only for internal documents.
33. No, release procedure without classification not possible for external documents
like PO.
For a PO you will want a release header wise and not item wise. Hence you need to
use with classification.
For PR you can use anyone of them i.e., with or without classification.
It is only recorded in the purchase order history. This stock is NOT valuated.
You can display goods receipt blocked stock from two viewpoints:
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36. Movement Type 161 is used for return to vendor. Just select return button in the
PO.
37. Subsequent adjustment can be Processes through T-Code - MIGO
38. LSMW - Legacy System Migration Workbench (Used to upload the data from Non
SAP to SAP System)
CATT - Computer Aided Test Tool (Used to Create test cases as well as upload
data)
39. LSMW is uesd to migration of data from non-sap system to the sap system or sap
system to sap system, here the data is migrated from the one system to another
system. so this is a migration tool
Whereas CATT is a computer aided testing tool, used to test the abap object
40. In SAP for any kind of development, function consultant need to give the functional
specification stating the purpose of the developlement as well as logic for the
selection, related fields and tables. He also needs to prepare one or two test cases
to test output the report/development.
41. Based on Price, Quality, Delivery and Service.You can give points to this categories
and you can maintain TCode:ME61
42. Returnable transport packaging (RTP) is a multi-trip packaging medium (for
example, pallets or containers) in which goods can be transported more than once
between vendors and customers.
Configuration settings
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You have to configure the serial number profile & assign it to Material master. In
the configuration profile of serial number, you have to check the check box for
serial number required for processing & set the Goods movement transaction where
you want to automatically create the serial number or create the serial number for
the material using Tcode IQ01.
During Serial Number profile in Serializing Procedure you have to maintain the
following settings:
Create the layout as you want then save the variant in your name.
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1. Cluster Table
2. Pool Table
47. At the time of Goods Receipt (TCode MIGO) capture Excise duty in Excise tab.
This is part 1 capture. TCode J1IEX, Part 2, Post Excise duty
48. The Documents that are generated are: Material Document & Accounting Document.
With batch handling, you can manage not only production lots from in-house
production, but also production lots from vendors as separate entities.
50. Sourcelist:It is a combination of one material with more than one vendor or
plants(in internal)and sourcelist is the higher priority than inforecord.you can
stratify the vendor for a material with sourcelist.
Eg:you have 4 info records for a same material with different vendors. If you are
not maintained sourcelist, check while creating PR.It will display all vendors. If you
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have sourcelist there you have selected a vendor as fixed. You will only get one
vendor,please check.
51. Source determination: if you activate this indicator, you give vendor during PR
creation .otherwise you can give the vendor at the time of PO. you can save the PR
without vendor. source determination is used to identify the source of supply.
52. SAP Inventory - Allow Negative stocks
53. In order to use negative stocks, you have to allow negative stock in customizing.
54. Only those materials for which negative stocks is activated in the material master,
will be allowed to have negative stocks.
55. Customizing: transaction OMJ1 - Allowing Negative Stocks.
56. First level: Valuation area.
57. Choose for which valuation area you want to allow negative stocks and activate the
flag.
Select the line of that valuation area and go to the plant level.
58. Second level: Plant.
59. When only one plant exists for that valuation area (this will always be the case in
case the valuation area is defined as a plant), you see immediately a details screen
with special stocks.
Choose the special stocks that may go negative. Next use F3 or the green arrow to
return to the overview of the plants. Select the plant and go the the storage
location level.
60. Third level: Storage Locations.
61. Select for which storage locations negative stock is allowed.
62. Save the whole lot.
63. Negative stock will now be allowed in the selected storage locations for all
materials that have the negative stock indicator activated in the material master in
the storage 2 view.
2. Pricing procedure, condition types and its fields, access series etc.
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5. Total CIN.
6. Important business process like subcontracting process with CIN, STOs, Vendor
consignments etc.
These are some of the topics but it depends on requirement of your interviewers
and his clients requirements.
Subcontracting Cycle - You define procurement type for the material procured
from subcontracting as "F 30".
66. External procurement from subcontractor - BOM is defined for the material. Then
you place PO with item category L on the S/C & you transfer the material to S/C in
transaction MB1B mvmt type 541 & prepare S/C official receipt of payment for
excisable material sent to S/C transaction J1IF01. Send material to S/C. After
processing receive material in transaction MIGO. Refer the S/C official receipt of
payment in MIGO. Reconcile the official receipt of payment & material doc in trans
J1IFQ & complete the official receipt of payment in transaction J1IF13.
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It is not assigned to either to plant or company code.
The contracts, terms and conditions can be utilized by other Purchasing Org.
GR blocked stock- If you wish to accept goods from a vendor conditionally (because
a certificate is missing), you initially post the goods to the goods receipt blocked
stock.
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79. The Basic thing is Condition Technique. In which there are
1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table.
80. A Access Sequence access a Condition Record of a Condition Type in a Condition
Table is a Condition Technique.This is a simple logic
81. Here the Condition Type is very important like PB00, PBXX,RA01 etc.
In the background every Condition Type has its own defition means the purpose of
the Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual
Feilds etc is to be defined to work this functions. Normally we use the existing
ones without any risk. But some cases, we have to Create a New Condition Types as
per the organisation requirement.
82. The Pricing Schema is useful to minimise condition types while mention prices for
Vendor on the basis of Pricing Schema which we defined according to organisation
requirement.
83. The Pricing Schema means the calculations procedure of Condition Type.
84. Ex. RA01 - Discoount % is caclulated on PB00 - Gross Price means
RA01 is based on PB00 like that we have to define in the Pricing Schema
which makes easy to use in real time.
Here PB00 has the Access Sequence - 0002.
But RA01 does not have the Access Sequence.Why because it is a dependent on
PB00. But both are Condition Types.
85. In the system, by default some standard Scheme will be there at Vendor Schema
Group in the Vendor Master Screen means the standard one is assigned which is
very lengthy which may fullfil our requirement. But some cases which may not fullfil
our requirement, in such we have to define.
86. For the configuration, I may not able to explain properly through here but will give
some idea.
87. Configuration: SPRO - IMG - Material Management - Purchasing - Conditions -
Define Price Deternmination Process:
1. Define Access Sequence
2. Define Condition Type
3. Defince Calculation Schema:- Here you have to define the Schema - Define
Schema group
1. Define Schema Group vendor
2. Define Pricing Schema group
3. Schema group for Purchase Organisation
4. Assign Schema group to Purchase Organisation - Define Schema determination
1.define calculation schema for Standard purchase organisation
88. After completion of the Schema Group, we have to assign it to Vendors.
Then whenever we use any transaction with this Vendor, the concerned Schema will
work as configured by us.
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89. The Pricing in MM is vast because each Condition have its own importance and each
Access Sequence have its own importance. So you need not bother about this. First
you learn how to define the Calculation Schema through the above.
Before MM Configuration, you must understand the process and what is your client
requirement.
1. Define Plant
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8. Defining Purchasing Group
But all depends on the client requirement and their business process.
Ans:
Ans:
1) Suppose you want a separate report for import PO and domestic Po in t-code like ME2N,
ME2L. In that case we have to define new Po document type so we can get report by
document type and same will applicable to Asset purchasing also.
2) You want different pricing procedure assignment in MM, then in that case PO document
will help like import and domestic pricing procedure.
3) Suppose in service PO user may forget to use item categories D or he may used
different item categorizes other than D, so in that case we can define new document type
and allow only item categories D so he cannot use the wrong item categories in PO.
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How many Po type are there?
Ans:
Ans:
PO history is updated in table: EKBE and if you go to see, there is a field client and
purchasing document/plant.
PO history updation depends upon transaction and event type where there are different
type of transaction key:
1 Goods Receipt
2 Invoice Receipt
3 Subseq. Debit/Credit
4 Down Payment
5 Payment
7 Consumption (Subcontracting)
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9 Service Entry Sheet
P Invoice Parking
You can see that PO history is updated at PO line item level and also see it at the header
level then in status tab, you can see the the following gets updated
- Ordered
- Delivered
- Still to delivered
- Invoiced
- Down paymts
Ans:
It is stored in the tables STXH, STXL. Text gets stored as object ID and text ID.
How to edit created P.O.? If user want to change some data like price, data etc. in
a created purchase order but system is not allowing it. As a support SAP MM
functional consultant what you would do?
Ans:
This is an open question without direct answers and you should suggest the possibilities:
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If you have made goods receipt against PO, then you cannot make any change to the price
and other condition details in PO if not you will be able to do it.
The Price came from Inforecord (if you have maintained the inforecord for material and
vendor combination), then in this case you cannot directly change the Price in PO. If you
want to change then check PO condition type is it PBXX, then you can change.
There is a procedure called as the field selection. When a purchase order is created, then
it requires a release. In the release procedure you can maintain the fields which cannot be
changed as per the field selection. For example, if I am an approver and I approved a
purchase order for 10 pieces and released it, in this case if the changes are allowed for
the quantity then the total release procedure becomes useless.
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ME54 - Release Purchase Requisition
ME55 - Collective Release of Purchase Reqs.
ME5F - Release Reminder: Purch. Requisition
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MI09 - Enter Inventory Count w/o Document
MI34 - Batch Input: Enter Count
MI35 - Batch Input: Post Zero Stock Balance
MI38 - Batch Input: Count and Differences
MI39 - Batch Input: Document and Count
MI40 - Batch Input: Doc., Count and Diff.
in Check units of measurements you need to define Dimension, ISO Code, Units of
measurement.
1. What transaction key is used to post a valuated goods receipt for purchase order
items not subject to account assignment?
a BSX
b WRX
c PRD
d KDM
e BSV
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2. What is value string WA01 defined for?
a Goods receipt of standard and subcontracting purchase order items without account
assignment concerning valuated material into stock.
b Deliveries without charge
c Goods issues
d Other goods receipts
3. Which value string is defined for Goods receipt of standard and subcontracting
purchase order items without account assignment concerning valuated material into
stock?
a WE01
b WA14
c WA01
4. Which valuation string is used for Delivery without charge for material subject to
standard price control, with posting date in the previous period and the standard
price in the posting period is different to the standard price in the current period?
a WE01
b WA14
c WA01
5. What is the key for account determination that enables a G/L account assignment
differentiation for the offsetting entry for an inventory posting?
a Valuation grouping code
b Chart of accounts
c Account grouping
d Valuation class
8. The rules that you use to define if the configuration of automatic posting for a
posting transaction depends on which of the influencing factors?
a Valuation Group code
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b Material/material type
c Account grouping
d Chart of accounts
e Valuation class
9. From where do the transaction keys for delivery cost postings come?
a Purchasing calculation schema
b Value string
10. What does the system use for the account assignment category to determine the
default account?
a Transaction key PRD
b Transaction key GBB
c Valuation group code
d Account grouping
e Valuation class
11. What are the characteristics of a Document type for Accounting documents?
a Two character alphanumeric code
b One number range per document
c Cannot assign authorization group
d Determines whether net posting is determined for the documents.
e Account types that may be used with the document type may be selected when entering
documents.
12. What are the features of number assignment for accounting documents from
MM?
a Configured for each company code
b Always linked to the fiscal year
c Numbers assigned without gaps
d Defines whether number assignment is external or internal
e The interval from which the number is assigned.
13. The rules that you use to define if the configuration of automatic posting for a
posting transaction depends on which of the influencing factors?
a Valuation Group code
b Material/material type
c Account grouping
d Chart of accounts
e Valuation class
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14. From where do the transaction keys for delivery cost postings come?
a Purchasing calculation schema
b Value string
15. What does the system use for the account assignment category to determine the
default account?
a Transaction key PRD
b Transaction key GBB
c Valuation group code
d Account grouping
e Valuation class
16. What are the characteristics of a Document type for Accounting documents?
a Two character alphanumeric code
b One number range per document
c Cannot assign authorization group
d Determines whether net posting is determined for the documents.
e Account types that may be used with the document type may be selected when entering
documents.
17. What are the features of number assignment for accounting documents from
MM?
a Configured for each company code
b Always linked to the fiscal year
c Numbers assigned without gaps
d Defines whether number assignment is external or internal
e The interval from which the number is assigned.
1. a
2. c, d
3. a
4. b
5. c
6. d
7. b
8. a, c,e
9. a
10. b, d
11. a, b, d, e
12. a, c, d, e
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13. a, c, e
14. a
15. b, c
16. a, b, d, e
17. a, c, d, e
Which of the following stock types can be counted through Physical Inventory
procedure?
(more than one answer can be correct)
Answer - A,B,C,D
Which of the following can possibly influence the valuation price of a moving average
priced material?
(more than one answer can be correct)
Answer - A,C
A Service level.
B Application level.
C Main menu level.
D Month.
E Total stock value.
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Answer - D, E
Your planning department is using a Forecast Model for materials planning. It has
been established that while demand for the particular material is projected to
increase steadily as market share is increased, the fluctuating tourist demand will
affect the overall requirements. Which forecast model will best address this
requirement?
(Only one answer is correct)
Answer - C
In the SAP system, the reference document used in the purchasing cycle is the:
(Only one answer is correct)
A Purchase requisition.
B Info record.
C Source list.
D Purchase Order.
E None of the above.
Answer - D
True / False
Answer - B
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a Entering invoices and credit memos received.
b Checking the accuracy of invoices
c Executing the account posting resulting from invoice
d Updating open items and material prices
e Checking invoices that were blocked.
Answer - A,B,C,E
Answer - A
From where does the system pick the default quantity of an item when you post
invoice receipt?
a Invoice
b Purchase order
c Purchase order history
d System settings
e Vendor master
Answer - C
During invoice verification the system picks the rate at which tax is calculated from
the vendor master record.
TRUE
FALSE
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to the vendor.
5) Good's receipt -> vendors sends the goods to the company with goods receipt
6) Invoice verification -> this done based on good's receipt. this means that the ordered
goods have reached or not.
7) Payment -> payment is done based on invoice verification. this is (FI/CO) *-- Santosh
Kumaar.M
The FI - MM integration:
Material Master
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Q: How can I extend all material to a new plant?
A: The SAP program - RMDATIND is used to create /update material master record.
Q: SAP only provides moving average value for current, previous period, and previous year.
SAP does not provide transactions/reports that will provide moving average value for a
given date.
How can I report moving average price for material number 10000000 at plant 0001 on
July 4, 1998.
A: Try any of these solutions:
1. Change the updating level of the structure (S031) to "daily". In LIS the total value and
the total stock are available. Divide value by the stock. It is possible to calculate this
dynamically when the analysis is run and to display the result.
2. Create your own structure in LIS and populate it by copying the Moving Average Price
from the material master every time there is a transaction. You will have data on those
days when there was a transaction.
Q: We have defined all the variables for the materials. However, when I attempt to
use Material Matchcode object MAT1, I get the response "No possible entries found".
Why?
A: Matchcode i.d. "B", "Material by bill of material" has a selection condition for field
STLNR NE ' '. STLNR is the BOM number associated with a material in table MAST.
Hence the message - "no possible entries..." pops up if there are no bills of materials
associated with your material numbers. You get the matchcodes as long as the material
referred by you has BOM number associated with it.
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Q: We have one material master : X and the unit of measure is 'pcs' and two serial number
: A,B
For this material we make two Pos
First PO calls material X , 1 pcs price 100 (will use serial number A)
Second PO calls material X , 1 pcs price 250 (will use serial number B)
Goods Receipt is done and by filling serial number for the fist PO with A and the second
PO with B.
We want to transfer material X serial number A to another plant and want the valuation of
this material as 100. How we can do it ?
A: Use "split valuation". Stocks may be received into separate storage locations. Transfer
stocks may be done from a storage location/plant to another storage location/plant.
Q: We want to change the calculation of Moving Average Price. We know that the same is
in MBEW-VERPR and two transactions to consider - MRHR, MB01. Is there a transaction
to change MAV or all the places it is needed?
A: Any Goods receipt or issue (in case of split valuated material) changes Moving Average
price depending upon the valuation type which is used when posting the goods issue. You
have to go through all the transactions involving those!
For Example:
Material X is using split valuation by origin:
Malaysia : MAV 60 USD - total stock 100 units
India: MAV 50 USD - total stock 200 units
Total stock 300 units MAV 53.33
Here , goods issues will also affect the global MAV, despite not changing MAV from origin
country.
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A1: If you have maintained source list requirement in OME5 and have not maintained the
source list for the material , Po can not be released. You are required to maintain source
list for all materials in the plant where the indicator is set if you maintain source list at
plant level. Else you can make use of info record to do so automatically.
Q: We have One company with a plant and another company with a sales organization.
Which is better option between these - PO or Stock Transfer Order ?
Q: We can make field mandatory. We want to make a default value to a Particular field in
the Material Master. Say, We want that the period indicator in the MRP2 view as "P".
What is the best way?
A: Use transaction variant. Transaction SHD0 and then Transaction SE93.
Can any one tell me what is MM closing and what is FI closing? How can I know if
period is closed?
MM closing means that you can not post materials document. In MM area you have two
open periods current and previous.
If you do not set other in MMRV - here you can check which are the open MM periods for
company code. If you check Allow posting to previous period - it will forbid MM posting in
previous period.
FI open period (ob52) allow to post FI documents. As I know you can allow postings for
some accounts - for example forbid material accounts for previous period in order to
prevent MM posting until you finish all FI documents.
*--Monika Hubanova
Related:
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Movement Error - Posting Only Possible Between
Movement Type Posting Error In Delivery
You can attach manually any document to PO without using Document Management System
( DMS ) in SAP 4.6C.
But you cannot attach document while you create PO in T/Code ME21N
Save you PO ( ME21N ) and again open with change ( ME22N ) then you can attach
document through Service for Object button. Service for Object button available down
side of Command screen ( in your PO screen ME22N )
Click your Service Object button -> Create -> Create attachment
then select your window directory ( which file you need to attach) select your file Now
your system shows message Service "Create attachment" is started.
Save again your PO. You can see (open) your attachment in same field ( Service for Object
) select and Create and check attachment list. You can attach as many document in your
PO.
Note: This is only information for internal or you can print separately this document for
sending to vendor ( fax ) System will not print automatically along PO print out.
What is the difference between Blanket Purchase Order and the Framework Order?
In general the Blanket POs are used for consumable materials such as Xerorx papers with
a short text (does not need to have Master Record) with Item Category ' B' i.e.limit,
where in the PO validity period as well as the limits are to be mentioned for the simplicity
of procurement.The doc type is 'FO' (Framework Order).
The GR or Service Entry for the PO are not necessary in case of Blanket POs as well as
one need not to mention the account assignment category during creation of PO it can be
'U'-unknown & can be changed at the time of IR.
Abhiji JOshi.
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2) Source List: I have checked 'Source List' In Purchasing view of MMR...Have two
vendors for this material for which source list is also maintained(ME01)....While
creating PO..the system takes by default the first vendor....I tried to assign the
second vendor (made sure that validity period are in range)..but couldn't do so...Can
you suggest how the system will tell me to select one of the vendor I want to assign
to the PO.
Prem Bhardwaj
Why system giving me only warning message instead of error message when I am
trying to make GR with a material which already tick for deletion flag. Is there any
configuration mistake?
Supian
According to SAP Notes, when an invoicing plan is settled, you can create a document/e-
mail or etc to notify your supplier or internal personnel. The IMG setting (SAP 4.7) can be
set in Material Mgmt --> Logistic Invoice Verification --> Message determination.
Another way is if the creation of these docs are not required, turn off the message by
setting the message display from 'Error' to 'Information'. The IMG setting can be set in
Material Mgmt --> Logistic Invoice Verification --> Define Attributes of System Messages.
This is what I did on my side.
Charlie
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Have any one you done this in IM: Inactivating the standard Movement Types. Say
for eg. I don't want to end user to use this MType 501- Receipt without ref to PO.
I don't want to delete this movement type, being an SAP standard one. One option
what I thought of is to control in the authorisation profile, profile to exclued
selected movement types.
Is there any other way we can do this?
You can delete the accounts assignments which are used for 501 movement type, in T030
table. Transaction code is OBYC.
or
What is the technical difference between Client , Purchasing Org , Plant , Company
code?
Client : Unit within SAP system, self-contained, separate master data with independent
set of tables. It represent corporate group.
Company Code : Smallest organisational unit of external account for which a complete,
self-contained bookkeeping system can be replicated. eg, company within a corporate
group.
Plant : An organisational unit within logistics, subdivides an enterprise from the viewpoint
of production, procurement and materials planning.
SPRO -> Enterprise Structure -> Logistics - General -> Define, copy, delete, check plant
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What is MMR (Material Master Record)?
MMR is a data record containing all the basic information required to manage a material.
It's a master record maintained in the system that contains all the specific data relevant
to a material.
Number Assignment:
MMR can have either internal or external number range assigned as per the configuration
done at the time of implementation.
Material type:
Materials which have similar characteristics are grouped under the same material type.
1. Number range
2. Screen sequence
4. Type of procurement
Material valuation:
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e. Display changes -- MM04
Select Industry sector is Mechanical Engineering and material type is Raw Material ROH
Press Enter
Select views
Basic data 1
Basic data 2
Purchasing
Accounting 1
Key in plant and storage location codes in the populated screen then press Enter.
Enter description of the material (e.g. Ball bearing with specification), base unit of
measure, material group
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We are maintaining the mandatory fields first then additional fields.
Press enter and in the next screen of accounting view 1 enter Valuation Class as e.g. 3000
and any standard price then on saving it MMR is generated.
Any report to show which account with what movement type? As we have too many
movement type with different account, we want to download it from system and
check.
By: Roger
In transaction OMWB (it require to input material no.), go to the simulation mode, then in
menu Simulation --> Go to Report. There, you can give the plants, valuation classes and
movement types and execute the report. Then you can download it to excel and analyze.
or
In the initial screen input the plant, material number and movement type and then go to
simulation --> report. It will take you to simulation of automatic account assignments :
Inventory Management which is independent of materials and there you can get the
desired report.
Different materials will use different accounts during movement. This is defined by the
Valuation Class the material is assigned to. Also, movement definition also differs with the
type of movement, i.e., a consumption on a production order has a different movement than
a consumption on a sales order. These movements are therefore linked to
Transaction/Event Keys, which are the accounting reflection of the movement.
Call transaction OMWN, Account Grouping for Movement Types. This table will provide you
with the Transaction/Event Keys for the movement. Withine a movement
type, these will differ based on the movement, consumption type, etc. The tables behind
this are T156X and T156W.
With this Transaction Key information, read the table T030 (OBYC) using the Val Class
and the Chart of Accounts to get the GL Accounts.
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How to find out how G/L account is determined with respect to movement type for
various material types?
G/L a/c is decided not only by Movement type, but also material master/plant/type of
transaction(transaction key). Movement type in OMJJ is contains transaction key /
Account modifier which is the link for GL a/c.
In material master we maintain valuation class. Hence when we do let us say GR for
Purchase order(101), the G/L account is decided as below:
Check in OBYC
As you are aware for any transaction there will be +ve and -V entry in GL a/c
Which a/c has to be -ve and which has to be + is decided by posting key depending on
transaction. Hence When we do GR...Stock a/c will be +, GR/IR will be -Ve and any price
difference(if price control is -S) will be posted to price difference account.
In OBYC, check the transaction BSX, for a given Chart of A/c, for a given valuation
modifier(it is nothing but plant grouping) and valuation class, you can see the G/L account.
This data is available in table T030
You can see the posting key for debit and cr. That means when we do 101, then Stock will
be credited and that posting key is used, if you do reverse GR-102, then same stock a/c
will get debited with that posting key
For the transaction PRD, you will get addition to the above, one more column General
modifier, this is nothing but the account modifier in OMJJ for that movement type, i.e.
Same transaction i.e. GR, if i define a different account modifier, I can change the G/L
account so that new movement type PRD (variance) can be collected at different G/L
account.
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Like that WRX, in which it is maintained at client level no a/c modifier, no valuation class
etc...that means GR/IR account determination will not depend on movement
type/material/plant etc.
These tcodes will help you to solve the posting period error:
OMSY
OB52
MMPV
Support Ticket 1:
While doing goods receipt for order, the following error occurs, it says POSTING
ONLY POSSIBLE BETWEEN 11/2012 AND 10/2012
Support Ticket 2:
I am trying to do GR after creating PO. It is showing an error message "posting only
possible during 11/2012 and 10/2012". I went into open and close posting periods in
FI (IMG) and tried opening new periods but it is still not allowing me to proceed
further and is showing the same message.
Go to T.Code MMPV :
1. Enter your company code.
2. Fiscal year of the current period (in your case 2012).
3. Put the period as 12.
4. Check the radio button for check and close period.
5. Execute.
6. The system does say it is not current calendar year. (do not worry about this).
7. Hit Esc and
8. Now change the Fiscal year to 2013 and
9. Period to 1
10. Execute
Continue these steps until you reach your period and fiscal year.
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Support Ticket 3:
I am facing a problem with fiscal year. When I am trying to close the periods with
MMPV, it is saying that 'specify a present calendar'. It is not allowing me to receipt
GR and post the invoice. And also when I am trying to change the next period
through navigation (SPRO/Logistics General/Material master/Maintain company codes
for matl management) it is saying that this company code can no longer be initiated.
Our SAP was installed recently.
SPRO - Logistics General - Material Master - Basic Settings - Maintain Company Codes
for Materials Management - Execute - Select Company Code and Define the Fiscal Year
Year = 2013
P(month) = current month
F/yr = 2013
M = Previous Month
ABP = Allow Back Posting (tick this to allow user to post to Previous month), DBP = Disallow
back posting
The SAP R/3 System allows you to valuate stocks of a material either together or
separately, that is, according to different valuation criteria. Split valuation is necessary
if, for example:
1. Stock from in-house production has a different valuation price than externally procured
stock.
2. Stock obtained from one manufacturer is valuated at a different price than stock
obtained from another manufacturer.
To change split material valuation once it has been set, you must
1. first post out all stocks (for example, to a cost center or with movement type 562)
134 | P a g e
2. then change the control parameters
3. if necessary, change the automatic account determination
4. finally post the stocks back in again
In split valuation, you can distinguish between partial stocks of a material according to
certain criteria and valuate them separately.
The material stock is divided according to valuation category and valuation type.
The valuation category determines how the partial stocks are divided, that is, according to
which criteria.
Your entries are only relevant if you set split valuation as active in the function "Global
settings".
In the standard SAP R/3 System, the following valuation categories are default settings :
B procurement type
H Origin
1. Determine the valuation categories and valuation types that are allowed for all valuation
areas:
global valuation categories via menu "Goto --> Global Categories"
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global valuation types via menu "Goto --> Global Types"
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Proceed likewise for the other materials, distinguishing between them by valuation
type. To do this, call up the material in
creation mode again. Due to the fact that a valuation header record exists, the system
requires you to enter a valuation
type for the valuation category.
8. Repeat step seven for every valuation type planned.
You want to valuate the stock of material XYZ that you obtain from manufacturer A in Los
Angeles at a different price than the stock you obtain from manufacturer B in Detroit. In
this case, the valuation category is H for origin. Your valuation types can be LOS
ANGELES and DETROIT.
If a material is subject to split valuation, every quantity (sub-stock) of this material must
be assigned to a valuation type (for example, country of origin).
For every valuation type, there are two types of data in the system, as follows:
Valuation data (for example, valuation price, total stock quantity, total stock value), which
is defined for every valuation type at valuation-area level and applies to all dependent
storage locations.
Stock data, which, like batch data, is managed separately for each storage location. If a
material that is subject to split valuation is also subject to management in batches, its
stock data is not managed by valuation type, but rather by batch. Every batch is assigned
to a valuation type.
The stock quantity, stock value, and valuation price for all valuation types are managed
cumulatively at valuation-area level.
Must the Valuation Type Exist Before the First Goods Receipt?
You can post the goods receipt of material of a certain valuation type only if the valuation
data for this valuation type already exists, because the system valuates the goods receipt
at the price defined in the valuation data. On the other hand, the stock data for the
valuation type is created automatically during the first goods receipt into the storage
location, if this is defined in Customizing for Inventory Management.
If you want to enter goods movements for materials subject to split valuation, you must
enter the valuation type in addition to the material number.
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Enter the valuation type in the Batch field for MB01.
By : Venky
Go to MMAM and then give the material and give the new valuation class and execute it.
That material have change from old valuation class to new valuation class.
Example: You create material No: 678 under the Finished goods. Finished goods valuation
class is 7920 is assigned in Accounting Tab 1. You want to change "678" material to Raw
Material.
Go to T.Code : MMAM
Material : 678
New Valuation Class : Raw Material ( Select from F4)
Which Valuation area you want
Old Valuation Class : Finished goods ( its under gray mode
i.e can not change)
678 Material automatically change from Finished Goods to Raw Material. Raw Material
Valuation Class : 3000, is automatically updated in the material "678" in the accounting tab
1.
How to track the price changes in material master record if it changes through MR21
?
Use the Following Trxn Codes for Material Price Change Documents
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- CKMPCD
- CKMPCSEARCH
Table :
MAP is automatically calculated based on the Total Stock and Total value of the material
at a particular point of time.
MAP keeps changing based on either Goods Receipt or Invoice Verification, when there is a
change in the price.
Calculation of MAP:
IN MMR (Stock)
Price - 50
Qty - 2
in PO
Price - 51
Qty - 4
In our example:
(50*2+51*4)/6 = 50.65
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MMR price - 50.65 qty - 6
As a year end activity maintenance of GR/IR clearing a/c is usually taken care by FI
consultant.
a. MM period closing, using MMPV (this initializes the one period and at the same time it
closes the previous one).
b. Physical Inventory if required.
c. Material Ledger Closing (If material ledger is activated).
b. Physical Inventory. (Run T Code MI22 - look at "Doc status" - any open PI not yet Post
Difference)
1) Check for open POs which are pending for GR (which are supposed to be posted in
current year).
2) Check for open Physical inventory docs.
3) Check for Subcontracting that are still pending (which are supposed to be posted in
current year).
4) Make sure all goods movements are completed in current year.
5) For excise number ranges - there is a list objects from which you need to maintain the
number ranges,
Please maintain the number ranges for the following objects:
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T.Code: SNRO
1. j_1iintnum
At an Excise group
1. j_1irg23a1
2. j_1irg23a2
3. j_1iRG1
4. j_1irg23c1
5. j_1irg23c2
6. j_1ipla2
7. j_1iintpr2
8. j_1irg23d
9. j_1irg1_t (material level)
10. j_1iconpla (if Consolidated PLA is used)
At Series group
1. j_1iexcloc
2. j_1iexcexp
3. j_1idepinv
4. j_1i57Fc (57F Challans)
Note: It is absolutely up to your company if you want or not to use the same number range
in the New Year.
By: Sandhya
The typical procurement cycle for a service or material consists of the following phases:
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1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials
planning and control.
(This can cover both MRP proper and the demand-based approach to inventory control. The
regular checking of stock levels of materials defined by master records, use of the order-
point method, and forecasting on the basis of past usage are important aspects of the
latter.) You can enter purchase requisitions yourself, or they can be generated
automatically by the materials planning and control system.
2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past
orders and existing longer-term purchase agreements. This speeds the process of
creating requests for quotation (RFQs), which can be sent to vendors electronically via
SAP EDI, if desired.
Vendor scheduling agreements and contracts (in the SAP System, types of longer-term
purchase agreement) are also supported.
7. Invoice Verification
The system supports the checking and matching of invoices. The accounts payable clerk is
notified of quantity and price variances because the system has access to PO and goods
receipt data. This speeds the process of auditing and clearing invoices for payment.
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SAP Logistics (MM) Interview
What Functions are Supported in the SAP ‘Material Management’ (MM)?
The MM module of SAP supports the following functions:
MRP (Material Requirements Planning)
Procurement
Inventory Management
Inventory Valuation
Invoice Verification
What is ‘MRP’?
‗MRP (Material Requirements Planning)‘ is nothing but the determination of which materials
are required, when and in what quantities, based on current information and forecasts.
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you normally valuate the inventory in SAP. The system, however, checks for the inventory
either at the Plant or Plant/Storage Location during an Order entry.
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Explain How SD and MM are Connected in SAP.
The goods/services from a plant can be sold by one or more sales organizations. It is also
possible that single sales organizations sells goods/services for several plants. When the
sales organizations sells for more than one plant belonging to one or more Company Codes,
then this is called inter-company sales, and will require you to make some special
configurations in the system. A sales organization, attached to a Company Code, is further
divided into distribution channels and divisions in SD. A division typically represents a
product line, and is assigned to a material in the material master.
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Work Scheduling
Forecasting
Storage
Costing
Plant/Storage Location stock
MRP
What Information is Available in the ‘Accounting View’ of a ‘Material Master’?
The most important information maintained in the ‗Accounting View‘ of a material master is
the valuation class, which needs to be assigned to individual materials. The valuation class,
in turn, helps in determining the relevant GL accounts for posting valuation-relevant
transactions such as GR, GI, etc.
You will maintain the price control indicator in the accounting view, which enables
determining how the stock of a material is to be valued (at Standard price (S) or Moving
average price (V)).
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When you set the indicator to ‗S,‘ the system carries out all the inventory postings at the
standard price. The variances due to a different price of a material in goods movement or
invoice receipts if any, are all posted to price difference accounts. As a result, the
standard price remains the same, unless it is changed intentionally by manual processing.
This will be necessary only when the difference between the standard and moving average
prices becomes very large. (While updating the price difference accounts, however, the
system also updates the moving average price with these variances, so that you get a
chance to adjust the standard price should the difference between the standard and
moving average prices becomes very substantial.)
On the other hand, when you set the indicator to ‗V‘ then all the goods receipts (GR) will
be at the GR value. The system will then adjust the price in the material master by the GR
price. However, if there is a difference between the moving average price of the material
and the goods movement/invoice receipt, then the price difference is moved to the stock
account, and the price of the material in the material master is adjusted accordingly.
If you are planning to maintain a standard price for the materials, then you will create the
material masters with ‗S‘ as the price control indictor in SAP. With this control, when you
enter the material inventory, the system valuates this stock with the standard price
defined. In this case, you enter a new price and the system posts the price difference
(between the standard price and the new price you entered) to a price difference account.
Similarly, if you are planning to maintain a moving average price for materials, then you will
create the material masters with ‗V‘ as the Price Control Indictor in SAP. With this
control, when you enter the material inventory, the system valuates this stock with the
moving average price defined. In this case, you enter a new price and the system adjusts
the moving average price accordingly. If you enter only the quantity, and not any new price,
the system continues to valuate the stock at the original moving average price, and the
price of the material does not change.
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What is the ‘EAN’?
The ‗EAN (International Article Number),‘ equivalent to the UPC (Universal Product Code)
of the United States, is an international standard number for identifying a material, which
SAP allows you to assign (done in the ‗Eng./Design or Units of Measure‘ screen) to the
materials. The EAN is normally assigned to the manufacturer of a material. Made up of a
prefix (to identify the country or company from where the material originates), article
number, and a check digit (ensures correctness of an EAN number so that no incorrect
entries are scanned or entered into the system).
A batch is unique for a single material, and is unique at the Client level as well. That is, you
will be able to use a batch number only once in the Client regardless of the plant and
material. The batch will be known only in the plant where it was created. The batch
numbers can either be manually assigned or system generated.
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In-house production
Both procurement types
What are the ‘prerequisites’ for an ‘MRP Run’?
The following are the ‗prerequisites‘ for an MRP Run:
MRP activated
Valid MRP data for the material
Valid MRP type
Valid material status
What is an ‘MRP Area’?
An ‗MRP Area‘ is not an organizational structure, but a unit for which you can carry out
Consumption-based MRP. The MRP area is used to carry out MRP for the components
provided to a sub-contractor. There are three types of MRP areas that you will come
across:
MRP Area for Storage Locations
MRP Area for Subcontracting Vendor Stock
MRP Area for the Plant
What is an ‘MRP List’?
An ‗MRP List‘ displays the results of the last ‗planning run.‘ Using a ‗collective display‘
format, you will be able to display planning details for a number of materials for a given
set of ‗selection parameters.‘
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Receipt of goods/services
Issue of materials
Stock transfers
What Happens During a ‘Goods Issue’?
The ‗Goods Issue (GI)‘ results in a reduction in the stock quantity/value. The GI can be
Planned (via sales order, production order, return delivery, delivery for internal, use etc.)
or Unplanned (drawing a stock for a sample, scrapping, etc.).
The GI results in:
Creation of a Material/Accounting document
Update of Reservation for the issue (if any)
Update of GL accounts
Update of ‗points of consumption‘ if applicable (cost center, project, etc.)
Update of Stock quantity
Explain ‘Stock Transfers.’
The physical movement of stock between locations is called a ‗Stock Transfer,‘ which can
be within a plant or between plants. Stock transfers can be carried out either in a single
step or in two steps. The stock transfer may be from:
Company to Company
Plant to Plant
Storage Location to Storage Location
If there is a logical change in the stock type/status, then this kind of ‗transfer‘ is called a
‗transfer posting.‘ The transfer posting may be from:
Product to Product
Quality Inspection to Unrestricted Use
Consignment Store to Storage Location
What is a ‘Stock Type’?
Used in the determination of available stock of a material, the ‗Stock Type‘ is the sub-
division of inventory at a storage location based on the use of that inventory. In SAP,
there are many kinds of stock types:
Unrestricted (use) stock (the physical stock that is always available at a
plant/storage location)
Restricted (use) stock
Quality inspection stock (not counted for unrestricted use and may be made
available for MRP)
Stock-in transfer
Blocked stock (not to be counted as unrestricted stock and is not available for
MRP)
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Besides all of the above, which are all known as valuated stocks, you will also come across
one more type called ‗GR blocked stock,‘ which is a non-valuated stock.
The GR-blocked stock denotes all the stock accepted ‗conditionally‘ from the vendors. This
stock is not considered available for ‗unrestricted use.‘ You will use the Movement Type
103 for the GR-blocked stock and Movement Type 101 is used for a normal GR.
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Various Statuses
It is also required in situations where you need to make a distinction between ‗in-house
produced materials‘ and ‗materials procured externally,‘ or if there is a distinction between
‗different deliveries.‘
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3. Transaction Keys are assigned to ‗Value Strings‘ (for example, WA01).
4. ‗Movement Types‘ (for example, 901) are associated with a ‗Value String.‘
Explain ‘Automatic Account Assignment’ Configuration in MM.
There are four steps required to complete the ‗Automatic Account Assignment‘
configuration settings for MM:
Finalize the ‗valuation level.‘
Activate the ‗valuation grouping code‘ option. (For this you need to group valuation
areas using valuation grouping codes.)
Maintain ‗valuation classes‘ and ‗account category references‘ and their linkage to
‗material types.‘
Maintain the ‗GL accounts‘ for each combination of Chart of accounts, valuation
grouping code, valuation class, and transaction key.
You may use the ‗automatic account determination wizard‘ to complete the configuration
settings, as the wizard guides you step-by-step.
How Does the System Determine the Correct ‘GL a/c’ for a Posting?
Imagine that you are posting a goods movement.
Since the goods movement is from a plant, and the plant is assigned to a Company
Code, the goods movement identifies the relevant Company Code.
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As the Company Code has already been assigned to the Chart of Accounts, the
system is able to identify the GL accounts.
The plant also determines the valuation area (and the optional ‗valuation grouping
code‘).
Since each movement type is assigned to a ‗value string‘ which in turn is identified
with a transaction key, the goods movement determines the correct transaction key.
Since each of the transaction keys is associated with the relevant GL accounts,
through the value string, the movement type now identifies the relevant GL Account, and
the transaction is posted.
12. How is the MM module integrated with other modules of SAP?
The MM module deals with materials procurement on the basis of the production
required; therefore, it is linked with the PP module.
The FI module is also related to the MM module, because every operation performed in
the MM module directly impacts the financial processes of the organization.
13. What are the main components of the MM module? How are these components used
in SAP?
The MM module deals with materials procurement on the basis of the production
required; therefore, it is linked with the PP module.
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The FI module is also related to the MM module, because every operation performed in
the MM module directly impacts the financial processes of the organization.
2. Organizational Structure
Client— A self-contained unit in the SAP system with separate master records and its
own set of tables.
Company code— The smallest organizational unit. You can create an independent set of
accounts for this unit for the purpose of external reporting.
Plant— An organizational unit where materials are produced or goods and services are
provided. You can divide an enterprise into various plants according to production,
procurement, maintenance, and materials planning.
Storage location— An organizational unit where the goods produced in the plant are
stored.
Storage type— An area such as a goods receipt area, goods issue area, or picking area.
Also the physical or logical division of a complex warehouse.
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Purchasing group— An alphanumeric key for a buyer or a group of buyers who are
involved in purchasing activities. The purchasing group is responsible for materials
procurement and dealing with vendors.
2. What are the levels of organizational units of Enterprise Structure in R/3?
The client is the highest level unit of the organizational units in Enterprise Structure in
SAP R/3. The client is followed by the company code, which represents a unit with its own
accounting, balance, and profit and loss (P&L). The next level of organizational units in
Enterprise Structure is the plant, which represents an operational unit of a company.
3. Define Client. What is its importance in SAP?
You can create a client in the MM module either by using the transaction code SCC4 or by
performing the following steps:
Select SAP Menu > Tools > Administration > Administration > Client Administration.
Double click SCC4–Client Maintenance. The display view Clients: Overview screen
appears.
Click Continue. The change view Clients: Overview screen appears, where you can create
a new client.
5. Define company. How is it different from a client? What are the data in MM that
are maintained at the company code level?
A company is an organizational unit for which individual financial statements are drawn
per the relevant commercial laws. A company consists of one or more company codes.
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Within a company, all company codes must use the same transactions in addition to the
same fiscal year breakdown; however, company code currencies can vary.
o Material number
o Classification data
o Multilingual description
o Units of measure
o Technical data
6. How to create a company code in SAP?
In SAP, a company code is created using the transaction OX02. The company code field
is represented by a four-character alphanumeric string. You can create a company code in
SAP by performing the following steps:
o Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check
Company Code. The Choose Activity dialog box appears.
o Double-click Edit Company Code Data. The change view Company Code: Overview screen
appears where you can create a company code.
7. How can you assign a company code to a company in SAP?
In SAP, a company code is created using the transaction OX02. The company code field
is represented by a four-character alphanumeric string. You can create a company code in
SAP by performing the following steps:
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o Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check
Company Code. The Choose Activity dialog box appears.
o Double-click Edit Company Code Data. The change view Company Code: Overview screen
appears, where you can create a company code.
8. How many charts of accounts can be assigned in a company?
Yes. One chart of accounts can be assigned to several Company Codes. However, the
reverse is not possible; i.e., you will not be able assign more than one chart of accounts to a
single Company Code.
9. How many company codes can be assigned in one chart of accounts?
A plant is an organizational unit where materials are produced or goods and services are
provided. In SAP, a plant is represented by a unique four-digit alphanumeric number. A
plant is allocated to one company code, and a company can have many plants. In the
organizational unit, a plant can be at one of the following locations:
Corporate headquarters
Manufacturing facility
Select IMG > Enterprise Structure > Definition > Logistic–General > define, Copy,
Delete, Check Plant.
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Select Define Plant to create a plant. The change view Plants: Overview screen appears.
Click New Entries. The New Entries: Details of Added Entries screen appears.
Specify the required values in the fields, such as Title, Name, and Search Term 1/2.
Click OK. The New Entries: Details of Added Entries screen appears again.
There are three prerequisites that are required in order to create a plant. They are as
follows:
Company calendar —Comprised of work days, public holidays, and company holidays.
Every SAP system is provided with a company calendar that can be modified per the
schedule of the company.
Region key —Refers to a state or province that is associated with the country. It is
required along with the country key.
You can assign a company code to a plant by navigating the following menu path: SAP Menu
> Tools > Customizing > IMG > Execute Project > Display IMG (SAP reference IMG) >
Enterprise Structure > Assignment > Logistics-General > Assign Company Code to Plant.
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o Select Tools > Customizing > SAP Reference IMG > Edit Project.
o Select Enterprise Structure > Definition > Materials Management > Maintain Storage.
o Click the clock icon . The Determine Work Area: Entry dialog box appears.
o Specify the value (P001) for the plant in the dialog box.
o Click the check mark icon . The change view Storage Locations: Overview screen appears.
o Click New Entries. The New Entries: Details of Added Entries screen appears.
Select Tools > Customizing > SAP Reference IMG > Edit Project.
Select Enterprise Structure > Definition > Materials Management > Maintain Storage.
Click the clock icon . The Determine Work Area: Entry dialog box appears.
Specify the value (P001) for the plant in the dialog box.
Click the check mark icon . The change view Storage Locations: Overview screen
appears.
Click New Entries. The New Entries: Details of Added Entries screen appears.
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Click the Exit icon to create the storage location.
You can assign a storage location to a plant either by using the transaction code OX09
or by performing the following steps:
o Select Enterprise Structure > Definition > Materials Management > Maintain Storage
Location. The view cluster Maintenance: Initial Screen window appears with the Determine
Work Area: Entry dialog box opened.
In the Determine Work Area: Entry dialog box, enter a plant number and click
Continue. The change viewStorage Locations: Overview screen appears where you can
assign a storage location to the plant.
20. Can storage locations be created automatically? How can they be created
automatically?
Storage locations can be created automatically when an inward goods movement for a
material is performed. In order to create storage location automatically, open the SAP
Implementation guide and click Materials Management > Inventory Management and
Physical Inventory > Goods Receipt > Create Storage Location Automatically.
The master data in the MM module acts as reference data, defining various business
entities and playing a key role in the core operation of the business.
2. How is master data important in MM module?
The master data in the MM module contains all of the basic information needed to manage
material. The data is stored and sorted on the basis of different criteria, such as the
descriptive nature of the material (size, dimension, and weight) and the control functions
of the material (material type and industry sector). Apart from data maintained by the
user, the master data also stores data that is automatically updated by the system (such
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as stock levels).
3. What are the various types of master data in MM module?
Material master
Vendor master
Source list
Quota arrangement
A material master file stores and maintains all of the information related to managing a
material. The material master is sorted on the basis of different criteria.
5. Why are material master records used in SAP?
Material master records are used in the SAP R/3 system to manage material-specific data.
The material information stored in material master records is used by all logistics areas in
the SAP R/3 system. The material master records integrate all material-specific data into
a single database object that eliminates the problem of data redundancy. Because material
master records store data in a single database object, the same data can be shared by all
departments, such as purchasing, inventory management, materials planning, and invoice
verification.
6. How is the information of material master records updated?
You can manually update the information in the material master records, however, there
are some exceptions for which the information can be updated by the SAP R/3 system
only, for example, administrative data.
7. What are the types of industry sectors defined in Material Master data?
The different types of industry sectors defined in the material master data are as
follows:
o Beverage
o Chemical industry
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o Food and related products
o Mechanical engineering
o Pharmaceuticals
o Plant engineering/construction
o Retail
o Retailing
o Service providers
The general data, i.e., the data applicable to the company as a whole, is stored at the client
level.
9. What are the data in material master that are maintained at the company code level?
The data that is specific to a particular company and the plant and storage areas assigned
to that company is maintained at the company code level.
10. What are the plant-specific data in material?
The MRP data and forecast data are the plant-specific data in the material master.
11. What is the lot size attribute of a material?
The lot size attribute represents the reorder quantity for a material. A material can
have a periodic, optimum, or static (fixed) lot size.
A batch is a group of materials combined into one quantity for various reasons. Very often,
materials with the same characteristics and values are grouped into a batch. For example,
in the chemical industry, a specified number of containers of a specific product may be
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considered a batch if they were produced at the same time and have the same physical and
chemical characteristics.
14. Why is batch record important?
A batch represents a quantity of a particular material processed at the same time with
the same parameters. These materials, produced as one batch, have the same
characteristics and values, which may vary from the materials of another batch produced
on the same day.
A batch record is important because batch records indicate that the batch conforms
to the current Good Manufacturing Procedures (GMP). The batch record also contains
specific information about the product tested, analytical methods, and test results.
You can create a batch record manually by using the transaction code MSC1N. The
navigation path for creating a batch is: SAP Menu > Logistics > Materials Management >
Material Master > Batch > Create.
16. What are the important fields in a batch master record?
o Production date— Refers to the date when the batch was produced.
o Self-life expiration date— Refers to the date when the life of the batch will expire.
o Available from— Refers to the date from which the batch will be available to other
departments.
o Batch status— Allows the batch to be classified as having restricted or unrestricted use.
o Next inspection— Refers to the next quality inspection date of the batch.
o Class— Allows the user to sort the batch for use in specific classes.
o Linked document —Helps the user to link the documents related to the batch.
o Document type —Allows the user who is purchasing the batch to specify a document.
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o Document —Helps the user to select the relevant document.
o Document part —Allows the user to enter the part of the document that is related to the
batch.
You can change a batch record by using the transaction code MSC2N. The navigation
path of changing the batch record is: SAP Menu > Logistics > Materials Management >
Material Master > Batch > Change.
It is important to note that these changes to the batch record will also be available for
review.
You can delete a batch by using the MSC2N transaction code. You can alternately delete a
batch record by flagging the batch master record. For this, you need to first select the
batch in the Change mode.
19. What is Batch Information Cockpit?
The Batch Information Cockpit (BIC) is the main switching point, having a wide range of
options for scrutiny and control of batches. It stores at a single location all the
information related to the analysis of a particular batch.
20. What are the levels at which a batch number can be configured?
A batch number can be configured at several different levels: client level, plant level, and
material level. You can select a batch number at any of the following levels:
Client level— When you configure a batch at the client level, you need to assign the
batch number only once throughout the whole client. Only one batch number exists for
each material assigned at this level.
Plant level —In SAP, the plant level is the default level for the batch number. At plant
level, a batch number is unique for a plant and material. This means that you can have a
batch of the same number at a different plant within the same company.
Material level —At this level, material numbers are assigned to the products. The
material number helps to differentiate between two products in case their batch numbers
are the same. The materials are identified by the combination of the material number and
batch number.
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21. How are batch numbers assigned?
The batch number is predefined in SAP. You can change the batch numbers either by using
the OMAD transaction code or by using the navigation path IMG > Logistics-General >
Batch Management > Batch Number Assignment > Maintain Internal Batch Number
Assignment Range.
Follow either of the two configuration steps to change the batch number:
You can assign a batch number internally using the internal number range, either by
using the OMCZ transaction code or by following the navigation path Display IMG >
Logistics-General > Batch Management > Batch Number Assignment > Activate Internal
Batch Number Assignment > Activate Batch Number Assignment.
You can also configure the system to allow automatic numbering of a batch by following
the navigation path Display IMG > Logistics-General > Batch Management > Batch Number
Assignment > Activate Internal Batch Number Assignment > Internal Batch Number
Assignment for Assigned Goods Receipt.
A serial number is assigned to an item to identify it and to store information about it. A
serial number is mostly used to refer to equipment such as motors, drills, or vacuums. In
MM, an item of material contains a serial number as well as a material number. This
combination helps to uniquely identify an item of material.
23. What is a class type? How will you configure a class type?
A class type is the SAP system's top-level unit, which is used to control the SAP
system's classes. It performs the following tasks:
You can configure a class type by using the following menu path: SAP Customizing
Implementation Guide > Cross Application Component > Classification System > Classes >
Maintain Object Types and Material Types.
24. A material does not have a master record. How can we procure that?
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There may be instances when a material does not have a master record. You can perform
different functions in different situations to procure the master record. For example:
You can create a material master record if there is no material master record for a
particular material.
You can extend the material master record if the material master record exists for a
particular material but the user department does not have the master data.
You can also extend the material master record if the material master record exists
for a particular material and the user department has the master data but it has been
entered in a different organizational level.
Classification data allows you to search for materials on the basis of the characteristic
values entered into the classes. This feature is very useful when the customer wants to
search for a particular vendor and particular batches.
26. What is an ABC indicator?
An ABC indicator is an indicator assigned by the ABC analysis procedure. An ABC indicator
provides details of the consumption value of the material involved in the ABC analysis. The
ABC analysis is performed by multiplying the current price of the materials by their
quantity. The different consumption values are given as follows:
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Material master, material master general data (MARA), tax Classification material
(MLAN), info records, source list, and vendor master are examples of master data in MM.
29. How is the vendor created?
You can create a vendor by using the transaction code XK01 and performing the following
steps:
Add the vendor name, company code, purchasing organization, account group, and
vendor address.
Add the country, bank key, bank account, and the name of the account holder.
Vendor master data contains details of each vendor that supplies materials or services to
an enterprise. The vendor master data is stored in individual vendor master records
consisting of data, such as the vendor's name, the vendor's address, the currency used for
the transaction, payment terms, and the contact person's name (on the sales staff).
31. What are the different sections in vendor master data?
o General data— Provides general information about the vendor that can be
entered into the system for creating vendor records. General data can provide the name,
address, telephone, and fax of the vendor through specified search terms. Additional
information can also be added to the vendor master record by the accounting and
purchasing departments using the transaction code XK01.
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32. What are the different fields in vendor master data?
When you create a number range, it is important to remember that vendor numbers,
such as material numbers, can be assigned externally or internally. You can create vendor
number ranges by selecting the following navigation path: IMG > Financial Accounting >
Vendor Accounts > Master Data > Preparations for Creating Vendor Master Data > Create
Number Ranges for Vendor Accounts.
For configuring the vendor number range, you should enter a unique number for the
range, which is a two character field, and then specify the limit for the number range. The
current number field is used to define the current number. The Ext. field Specifies
whether the number range is defined externally by the user.
Select the following navigation path to link vendors to materials: SAP Menu >
Logistics > Material Management > Purchasing > Master Data > Info Record > Create.
Alternatively, the ME11 transaction code is used for this purpose.
36. What is the transaction code to access the Materials Management Configuration
menu?
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The OLMS transaction code is used to access the Materials Management
configuration menu.
37. What are the various transaction codes to access the MM configuration?
The following are the various transaction codes to access the MM configuration:
Transaction Description
Code
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Purchasing information records, also known as info records, contain information
related to the material and the vendor who is supplying the material. They also contain
details about the material, such as the current price.
41. What are the prerequisites for creating a purchasing info record?
o Vendor number —You should also know the number on the vendor master
record.
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Yes, you can create a purchasing info record without a material number. If the
material does not have a material number, you will need the following information to create
the purchasing info record:
o Order unit
o Material group
44. How can we create an information record based on the material master?
First, you need to create the info record by selecting SAP Menu > Master Data >
Info Record > Create. Enter details such as vendor number, material number, purchase
organization, or plant number. Then enter the number of the information record (in case
of external assignments). Next, enter the general data for vendors, ordered quantity,
origin of data, supplying information, and customs tariff number. Then enter the planned
delivery time, purchasing groups, and standard purchasing quantity. Check the control data
and take the default value of tolerance data and the purchasing group from the material
master record. Finally, enter the net price and then select Go To > Texts to display the
text overview. If the PO text is already defined, it appears in the material master record;
otherwise, it needs to be entered. After all these entries have been made, the record is
saved.
The DMS in SAP helps you store external documents, such as pictures of the goods
or material. By using the DMS, you can set the maximum size of the picture that can be
uploaded in a document. The DMS helps to link these external documents with the
appropriate SAP objects.
Special stocks are stocks that are managed separately regardless of whether they
belong to your company. The company manages a material by using a data record, which
contains all the required information. The different types of special stocks are as follows:
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o Returnable packaging with customer
o Subcontracting
o Pipeline
2. What are the differences between company-owned special stocks and externally-owned
special stocks?
Organizations need negative stock when a material is shipped to a customer and production
is not confirmed or there is not enough stock to satisfy the requirement. The system still
allows the issuing of the material, and inventory shows a negative quantity of stock until
the production of the material is confirmed.
4. What are special procurement types?
In a normal purchasing system, the customer purchases the goods from the
wholesaler/retailer and the possession of the goods transfers from the
wholesaler/retailer to the customer. This might not be the case with special procurement
types, where the transfer of goods may not necessarily be from the wholesaler/retailer to
the customer directly. For example, you might order a good for a friend of yours, who, in
turn, purchases the good from the wholesaler/retailer and then transfers the good to you.
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The friend is the third party involved in this process. Therefore, the possession of the
good indirectly transfers to the customer. This type of procurement is called the special
procurement type. The special procurement type defines the external procurement or in-
house production of the material. The following list shows the special procurement types
available in the SAP system:
Consignment
Subcontracting
Third-party processing
Pipeline handling
5. Define consignment stock. What are the main features of consignment stock?
Consignment, in a general sense, is the act of holding the ownership of materials but
storing the materials at some other premises until the materials are sold or shifted
somewhere else. The stored materials are known as consignment stock in the SAP system.
Therefore, stock that is stored at the customer's premises but is the supplier's property
until the stock is transferred to the customer's stock list is called the consignment stock.
The main features of the consignment stock are as follows:
You can combine the consignment stock with your available stock at any point in time.
The price of the consignment stock fluctuates. This means that you can determine the
price of the consignment according to the market conditions.
You can use different features of purchasing, such as discounts, in the consignment
stock.
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6. How is the pricing of consignment stocks done? What information does consignment
info record contain?
The consignment information (info) record contains the consignment price required for
the purpose of material valuation and accounting.
Consignment stocks are created in the normal purchase order (PO) or requisition, but the
main thing to consider is that you must enter the K category for the consignment item. As
a result, the goods issued are posted to consignment stores and the invoice receipt is not
generated.
8. Define the consignment cycle?
Consignment cycle is similar to the purchase cycle, except that when you create goods
receipts of the consignment stocks, only quantity (QTY) is updated and no accounting
documents are created. Once the goods are utilized, consignment is settled. The value of
the consumed or issued consignment stocks is taken from the active purchase info record.
You can see the consignment stocks in SAP by using the following functions:
11. How can we take consignment stocks into our own stock?
You can take consignment stocks from the vendor into your own stock by performing the
following steps:
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Select Goods Movement > Transfer Posting to display the initial screen.
Enter the plant name and the location where you want to store the materials.
Select Movement Type > Transfer Posting > Consignment > Consignment to Own.
Enter the name of the vendor, the materials, and the quantity of materials.
Enter the receiving storage location if you want to store the materials in another
storage location.
Post the document. This makes the vendor liable to change the storage location of
the materials.
Yes, you can do the physical inventory check of consignment stocks. To do the physical
inventory check, perform the following operations:
You can invoice in the case of consignment stocks by performing either of the following:
Invoice with PO
Invoice without PO
Subcontracting is the process by which the vendor receives the materials to produce the
end product. Subcontracting involves the following procedures:
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You order the end product by using the subcontract order. The components that the
vendor needs to manufacture the end product are mentioned in the PO.
During the inventory management process, the components are posted to the stock of
material provided to the vendor. Later, the components are supplied to the vendor.
The vendor then processes the service and delivers the materials ordered. The
consumption of the components is posted.
If, after posting the goods receipt, the vendor notifies you that the quantity of the
components actually consumed is different than planned in the PO, you must make an
adjustment.
The vendor then charges for the service, for which the invoice is posted in Invoice
verification.
o Enter the material to order and the category of the item for subcontracting (L) in the
order item.
o Press the Enter key to display the screen for component processing.
o In the component processing screen, enter the components required by the vendor to
manufacture the ordered material (end product). When entering the components, you need
to take care of the following points:
o You do not need to enter the date required for the components. The system proposes this
date when you press the Enter key. It is calculated as follows:
o If you do not wish the quantity of the components to be altered, even if the order
quantity of the end product is changed, then set the indicated field to fixed quantity.
o If you want to allocate a particular batch of the component to the vendor for the
manufacture of the ordered material, enter the desired batch.
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o To determine whether or not the components are available on the date required,
select Component List > Component Availability.
o When you enter a bill of material as the material in the subcontract order, the
components are automatically created.
o You can also determine the components in the bill of material at a later date (for example,
if the bill of material is subsequently changed) by selecting Item > Go to > Components >
New BOM Explosion. The existing entry of the components is removed and again
determined in the bill of material.
When you print the PO, the components are printed per order item.
The stocks of material provided to a vendor can be viewed by using the SC Stock
Monitoring for Vendor report. The report can be accessed by selecting Purchase Order >
Reporting > SC Stocks per Vendor from the menu. With this report, the current status of
the stocks, planned issues, and planned receipts can be viewed.
19. How are components (materials) provided to vendor?
The components, or rather the quantities of the components required to manufacture the
end product, are provided in the stock of material to be provided to the vendor. The stock
of material provided to the vendor is the total valuated stock that is available for MRP.
The total valuated stock is managed at the plant level, at the site of the vendor. This
stock can be either an unrestricted-use or quality-inspection stock. The unrestricted-use
stock refers to the valuated stock of a material that is owned by the company and does
not have any restrictions on its usage. The quality-inspection stock is intended to be used
only for quality inspection. The components can be provided to a vendor in the following
ways:
In subcontracting, the end product is ordered by using a subcontract order. The materials
or components required by the vendor to manufacture the end product are mentioned in
the PO. The components are posted to the stock of the material provided to the vendor
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during inventory management. When the components are supplied to the vendor, the
vendor manufactures the end product and delivers it. At this point, the goods receipt is
posted with a reference to the subcontract order. The goods receipt also contains the
posting of the consumption of the components from the stock of material provided to the
vendor. If the components consumed by the vendor are more or less than that specified in
the PO, an adjustment needs to be posted to correct the consumption of components.
Inventory management in the SAP system helps record and track stocks of materials. It
also involves the planning and documentation of all goods movements..
2. What tasks are covered under Inventory Management?
Planning, entry, and documentation of goods transfers from and to the inventory
Physical inventory is a process in which all the transactions related to the movement of
goods are stopped and the company physically counts inventory. It is required in financial
accounting rules or for placing an accurate value on the inventory for tax purposes.
4. What are the initial configuration steps for physical inventory?
5. What is the difference between managing stock by quantity and managing stock by
value?
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Transactions that make changes in the stock result in stock updates that are recorded
in real time. At any point in time one can view the stock overview, which represents the
current situation at that time. That is the essence of stock management by quantity, and
can applied to the following stock types:
The managing stock by value option reviews the stock materials qualitatively rather
than quantitatively. The valuatioNof stock is done either at the plant level or at the
location level. Updates that can be done when managing stock by value are as follows:
o The G/L accounts for financial accounts, with automatic assignment of accounts
The valuation area is the organizational level at which the stock value is maintained. It
can be either at plant level or storage level.
Special stocks are defined as stocks that must be managed separately by a company. They
can be either company owned or external stocks. They can be categorized as follows:
Consignment
Subcontracting
Third-party processing
Pipeline handling
Sales-order stock
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Project stock
Inventory management is an important part of the SAP MM module. The business activities
of an organization revolve around the inventory of materials, which serves as the input for
the manufacturing process or the inventory of prepared goods for delivery or sale. The
material is purchased from the appropriate vendors on the basis of requests from the
materials requirement planning (MRP) module. The delivered items are recorded as the
goods receipt in inventory management. The materials are then stored, either for delivery
to the customer or for manufacturing processes. Inventory management is integrated with
other modules, such as financial accounting (FI), sales and distribution (SD), production
planning (PP), project system (PS), and quality management (QM).
8. How is the inventory management integrated with MM?
Inventory management is directly linked with the MM module because any movement of
goods to and from inventory happens under the MM module. MRP, purchasing, and invoice
verification are some of the MM components that are also linked with inventory
management. After material is ordered it is posted as a goods receipt with reference to
the purchase order. The actual data of the quantities are checked in the vendor's invoice.
10. What is Goods movement? What type of documents is created after goods
movement?
Goods movement refers to the movement of stock. This movement of stock could be either
inbound from the vendor, outbound to a customer, between different plants, or even
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between different stocks within a plant. After goods movement, the SAP system creates
two types of documents: material documents and accounting documents.
11. What are the goods movements that take place in MM?
The goods movements can be defined as the physical or logical movements of materials
that lead to a change in stock levels or results in material consumption. The goods
movements are part of the MM policy. The goods movements in SAP are as follows:
o Goods receipt— Represents the physical movement of goods or materials into the company.
It increases the stock quantity. The goods receipt can be of the following types:
o Stock transfer— Represents the movement of materials from one location to another
location. The locations can be either within the same plant or different plants.
o Transfer posting— Represents the stock transfer that can either be physical or logical. In
logical stock transfers, goods are transferred only in records, while the actual stock
transfer does noToccur. Some examples of physical stock transfer are:
o Batch splitting
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12. What is Goods Receipt & Goods Issue?
Goods receipt is the process that enables the receipt of material from a vendor or
from the in-house production process. There are other types of goods receipts in SAP
that include initial stock creation. The goods receipt process also increases stock due to
one of the following processes:
o Others
Goods issue is a process in which the stock in the warehouse is reduced due to any of
the following reasons:
o Shipment to a customer
o Return of materials
o Scrapping of materials
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o Select the movement type and the purchase order number.
15. How do you post the goods if the PO number is not known?
If the purchase order number is not known, you must enter search criteria for the
purchase order in the initial screen. As a result, the list of purchase orders is displayed.
The desired purchase order items can then be copied.
16. How is the vendor returned processed without a purchase order reference?
You first need to observe the Return column and then select Item Detail > MIGO_GR >
Goods Receipt for Purchase Order. If the intention is to deduct the stock, then movement
type 161 is used; otherwise, 162 is used to undo the changes. Lastly, you must ensure that
the document is a return purchase order. The document is then saved.
Alternatively, you can use the M21N transaction code for this purpose.
Accounting documents are generated if the movement of goods requires a change in the
financial accounts.
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Please advise me, how to use negative stocks. Mainly for what purpose this concept is
used.
What settings are required to do for mainaining negative stock.
Negative stocks can be utilized for a number of different business scenarios, for instance:
1. If a material shipment is going to a customer, but the production has not yet confirmed
(and there is not enough stock on hand to satisfy the requirement), instead of getting the
"deficit of stock..." message when doing the issue for the delivery, the system will allow
you to issue the material, and your inventory will show a negative quantity until the
production confirmation is
performed.
2. I had a client who used this functionality to track component usage for their
subcontractors. They would confirm production for an entire month for the FERT
materials produced by the subcontractor. Starting the month with zero stock for all
components, then at the end of the month the value of the component stock (disregarding
the negative sign) would be deducted from the amount they owed for the services
performed. In this agreement, the components were "sold" to the subcontractor but no
invoicing ever took place for the components. Just a word of caution ...negative
stocks/values for materials can raise many questions for accounting purposes at the end of
fiscal periods.
There have been several reasons for using the negative stock functionality subject to the
specific business requirements of your industry. For us, we have decided to use this
negative stock feature due to the following reasons:
2) The alignment of inventory/stock movement with production process where due to some
reason, the reception of raw materials and/or consumables was not maintained on time
resulting in interruption of process order confirmation.
Can someone tell me what is the effect of negative stocks in material valuation, ie.
moving average?
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As you know negative stock will have negative value, which will have direct impact to
financials. Say you have a material of Qty 10 Each, total worth $ 10.00 in stock and since
you enabled negative stock in system ( valuation area level and plant- storage location level
) if you try to issue stock of say 20 Eaches, system will show stock of negative 10 and
value $-10.00.
After that if you try to do goods receipt of say 20 eaches, of total value 20.00 material
will have original status as you started. But if the value is different say 25.00, then moving
average will be arrived from $15.
Why my stock is having negative stock value. The stock qty is 0. When I want to do
GR, the system issue and error message saying my stock is negative. How can I do
bypass it.
My assumption was that you are using MAP (Moving Average Price) Price Control for your
material and that there was a price difference between IR value and GR value where IR
value < PO value. In this case, the price difference will be credited to your stock and since
the price difference value is in excess of your current stock value, this negative value took
place.
Stochastic Block
You can block invoices at random to check them again. If the stochastic block is active and
you post an invoice that is not subject to any other blocking reason, it can be randomly
selected for blocking.
A stochastic block is not set at item level, but for the whole invoice. If a stochastic block
is set when you post the invoice, the system automatically sets an R in the field Payment
block in the document header data; there is no blocking indicator in the individual items.
- If the value of the invoice is larger than or the same as the threshold value, the degree
of probability that the invoice will be blocked is that of the percentage.
- If the value of the invoice is smaller than the threshold value, the degree of probability
that the invoice will be blocked is calculated proportionally to the percentage.
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If, for example, the threshold value is $100 and the percentage 50%, every invoice over
$100 would have a 50% chance of being blocked; an invoice for $500 would have a 25%
change of being blocked. If you want the degree of probability to be the same for all
invoices, you set the threshold value to zero.
If you enter a threshold value of zero and a percentage of 99.9%, all invoices would then
be blocked.
Please find details for the GR/IR Clearance account in SAP system:
Quantity differences between goods receipt and invoice receipt for a purchase order
result in a balance on the GR/IR clearing account.
- If the quantity invoiced is larger than the quantity received, the system then expects
further goods receipts for this purchase order to clear the balance.
- If the quantity received is larger than the quantity invoiced, the system then expects
further invoices for this purchase order to clear the balance.
You can also clear differences for delivery costs. If no more goods or invoices are to be
received, you must clear the balance manually. This can be done in different ways:
- You can cancel the invoice and post a corrected invoice or a credit memo for the surplus
posted quantity.
The GR/IR clearing account is usually cleared at the end of a period or fiscal year for that
order items that no further goods receipts or invoices are expected for.
1. Choose Logistics -> Materials Management -> Logistics Invoice Verification -> GR/IR
Account Maintenance -> Maintain GR/IR Clearing Account.
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The GR/IR Account Maintenance screen appears.
2. Enter data as required on this screen in the Document header data frame.
3. In the Selection frame, you choose various selection criteria for the transactions for
which you want to post the differences are available for the following selection fields. You
maintain them in the user master.
5. On the selection screen, the individual purchase order items that have quantity
variances and match your selection are now listed. Select the order items that you want
to clear.
6. Clear the GR/IR clearing account for the selected purchase orders by choosing List ->
Post clearing.
Document that displays the quantities of the debit or credit of a material in GR/IR
clearing account maintenance.
If you clear quantity differences between the goods receipt and invoice receipt for a
purchase order using account maintenance, the system produces an account maintenance
document.
You can branch from the account maintenance document to the following accounting
documents, assuming that they exist:
- Accounting document
- Profit center document
- Special ledger document
- Material ledger document
Generally all raw materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are
assigned as moving average price (MAP) because of the accounting practice of accurately
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valuating the inventory of such materials. These materials are subject to the purchase
price fluctuations on a regular basis.
Company generally use moving average on purchased materials with small cost fluctuations.
It is most appropriate when the item is easily obtainable. The impact on margins are
minimized which reduces the need for variance analysis. Furthermore, the administrative
effort is low as there are no cost estimates to maintain. The cost reflects variances,
which are closer to actual costs.
The semi-finished goods (HALB) and finished products (FERT) are valuated with standard
price because of the product costing angle. If these were to be MAP controlled, then
finished/semi-finished product valuation would fluctuate due to data entry errors during
backflushing of material and labour, production inefficiencies (higher cost) or efficiencies
(lower cost). This is not a standard accounting and costing practice.
Refer to OSS note 81682 - Pr.Contr.V for semi-finished and finished products.
SAP recommends that standard price to be used for FERT and HALB. If actual price is
required for valuation, make used of the functions of material ledger where a periodic
actual price is created which is more realistic.
additional value add to Balance on hand value then divided by Balance on hand
quantity
difference is deducted from the Balance on hand value (up to 0). The rest of the
amount will becomes price variance. This will result in Balance on hand value is zero
while there are Balance on hand quantity. If the Balance on hand value is enough to
deduct, then the remaining value will be divided by Balance on hand quantity.
When your Goods Issue price is constantly greater than your Goods Receipt price, it
will result into zero value moving average price.
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OSS note
185961 - Moving Average Price Calculation.
88320 - Strong variances when creating moving average price.
Never allow negative stocks for materials carried at the moving average.
For every system message that appear, SAP allows you to control the response of the
message.
If you want to prevent the user from further entry for a particular message, you can
change it to message category
E - Error.
W - Warning re-confirms the entry. The user have to hit the enter key again to
confirm the entry.
Message Category
- No message
W - Warning
E - Error message
Transaction
1) I had a problem while creating a P.O (Doc.type RO) referring the contract. The
contract is a (WK) doc.type,value mentioned for 1 lakh, When I make a P.O referring the
contract, I put Qty of items and Price in such a way by calculating, it exceeds the contract
value,and the P.O gets posts and document is generated.
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The sytem should not allow the P.O to post, when the contract value is exceeding, I am
unable to understand where I have gone wrong.
2) The Purchase Requistion (Any Doc.type) is made and released.Immediately for checking
point of view I cancel the release and do some changes and again tried to release the same
It is not getting into release strategy.
----------------------
You need to go into config (IMG): Materials Management -> Purchasing -> Environment Data
-> Define Attributes of System Messages.
Double click on "System Messages".
Find the message that corresponds to your problem: (e.g. Target value of contract &
exceeded by & &) or (Target quantity exceeded by & &). In the column on the right side
headed CAT set this to "E" for ERROR.
If you do this then when the target value or target quantity is exceeded an error message
will appear. The system will then NOT allow you to exceed these quantities. Likewise if you
only want to WARN the user that the value/quantity is being exceeded then set this to a
W for warning.
I am not quite sure to what you are trying to say but the cross company Stock Transport
Orders can be done by:
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- Maintain the supplying plant as a vendor and attach the plant to the vendor in the Vendor
Master.
- Material type has to be HALB or HAWA.
- Ensure that the company with sales Organization has a plant to take care of stocking.
- The PO used is NB and not Stock Transfer PO.
Configure SD for inter-company billing to enable picking up the pricing procedure for
billing.
- Carry Out delivery through process delivery due list and billing through process billing
due list.
Otherwise, You need to configure your Stock Transport Order settings for your Cross-
Company:
I am trying to create a Stock Transport Order (STO) with document type UB and
item category U. My objective is to transfer material from Plant (supplying plant) 100
to Plant (receiving plant) 1100 within one company code (1000) with STO.
For this purpose I created a raw material 1434 in plant 1000 with sales org 1 view
and in that view entered in delivering plant field 1000 as delivery plant. After that I
extended material 1434 to plant 1100 without changing anything what I did while
creating the material first in Plant 1000 except in organizational level I entered 1100
in the plant field. I entered Sales org 1000 and distribution channel 10 in
organization level for both plant while creating and extending the material. In me21n
I chose Stock Transport Order with document type UB and item category as U also
receiving Plant as 1100. With this when I tried to save the STO the message, I am
getting an error, Cannot determine shipping data for the material 1434?
I am doing solely mm function why I need to create Customer master? In this case
plant 1100 is the customer right?
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Solution:
3. Make its supplying plant as a vendor in vendor master record in receiving plant(1100).
5. Assign doc. Type is "NL" for intra company STO. If STO is inter company, Assign doc.
Type is "NLCC".
Position doc type is "UB"
Enter supplying plant(1000) & doc type (NL) & checking rule (ex:01)
7. Create a PO, choose the doc type is `UB' & item cat.'U', Enter supplying plant as a
vendor in PO of the receiving plant(1100).
8. Provide this num (PO) to SD people, they will do the delivery by using transactional code
is VL10B.
10. Do the GR. In GR the second tab 05 out bound delivery instead of PO mov.type 101.
11. See the stock over view in the receiving & supplying plants.
We have one company code (1500) in SAP and four (4) plants ( 1511,1521,1512,
1541 ) under 1500. Now, I have to transfer one material from 1511 to 1521 &
from 1521 to I have to sell the same. 1521 is trading plant.
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You can use the process - stock transfer from one plant to another plant it depends on
only mvt types. Single step or 2 step movements.
Pls. note the following procesure for stock transfer & Sale : 1511 to 1521 kindly make the
STN from plant 1511 to 1521 with following steps:
Create Delivery VL02N - Post goods issue & Batch / qty. picking
After making the STN, pls. take the GRN in plant 1521 with T. code MIGO and then make
the sales invoice from plant 1521 with following T. Code.
Step 1. Now Transfer stock from plant 1 to plant 2 with in the same Company code. Either
with single step procedure or with two step procedure.
Before you do transfer stock from plant 1 to plant 2 first need to extend your material to
plant 2.
T.code MM01 enter your material XXXX enter "organizational levels " window will open
there u select your plant 2 (receiving plant) click on tick continue the msg will appear "The
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material already exists and will be extended" enter require fields and save ( now your
material is extended to plant 2)
Step 3: Single step procedure stock transfer from plant 1 to plant 2 T.code MB1B Mvt
type is 301 enter receiving plant is "plant 2" and material XXXXX and required sfields and
save.
Step 4. Do stock type transfer from unrestricted to blocked stock T.code MB1B movt type
is 344. for plant 2
You can only do blocked stock to blocked stock transfer within a plant mvt type is 325.
1) Create the STO using T-Code:ME21N and maintain pricing conditions of freight and
Save.
3. Picking, PGI:VL02N
4. Billing:VF01
Save the document and its done
3.0x
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o 122 - Return delivery to vendor
o 511 - Receipt of delivery without charge (Free of Charge)
Goods Issue
o (You can define the screen layout by Movement Type using transaction
OMBW)
o 201 - Consumption for cost center
o 261 - Consumption for production order - (confirmation automatic posting -
known as backflushing in SAP)
Material backflushed = ( Production Order Quantity + Scrap ) / BOM
Base quantity * Component quantity
Usually, material backflushed is done at the first operations.
Subsequent operations does not have any material backflushed, only
activities cost.
Which operations to backflushed is set in your routing.
(CA02) In the routing click the button CompAlloc. Look at
the column B and Oper. A tick under B indicate material
backflushing.
Transfer posting
o 301 - Transfer from one Plant to another Plant (Single Step)
o 309 - Transfer posting Material to Material (or known as Material
Conversion)
o 311 - Transfer from one Storage Location to another (Single Step)
MBST - Cancel/Reverse the Material Document
When you post a goods movement, the Valuation Class in the Material Master (accounting
view) determines which G/L accounts are updated when a transaction relevent to valuation
take place.
OMJJ - Definition of New Movement Types. Allows you to control the movement type
functions.
The followings are some of the movement type control :-
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o Double click on the Transaction type to maintain the movement type control.
e.g. print a material document after the user click save.
o Click on Short Text to maintain the movement type descriptions.
o Click on the Allowed Transaction to maintain which movement type can be
used in which transaction code.
Procedure Flow:-
Buying Plant Create the Purchase Order type UB - Stock transport Order -
transaction ME27
Supplying Plant receive the Purchase Order and issue it to the transport warehouse
once they have the required quantity - transaction MB1B - movement type 351 -
Transfer posting to stock in transit from unrestricted use.
Buying Plant receive the purchase quantity with transaction MB01 - Goods Receipt
from Purchase Order.
Accounting document was created during the transfer posting - movement type 351.
If there was a price difference (the same material have different price in the different
plant), the lower price plant will be posted with the amount differences.
Example :-
Material Master - Costing View Material Price for Buying Plant 100
Material Price for Supplying Plant 150
The General Ledger Account Number was determine through the Material Valuation Class
which was tied throught the Automatic Posting of Account Assignment. (Transaction
OMWB then click Account Assignment)
Double click on the Description to check the General Ledger Account Number
Inventory posting BSX
Expense/revenue from stock transfer AUM
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Safety Stock Calculation in SAP
Let me try and explain to you through a mix of functional procedures and how SAP
calculates the Safety Stock:
P system is a system wherein replenishment is done keeping the quantity constant. The
period becomes the variant. In other words you fix the quantity you want the stock to dip,
to trigger a requirement. As soon as the stock level is reached you replenish the stock.
During a lean period the time taken to reach the level will be longer and during an active
period the time taken to reach that stock could drop.This normally relates with your
consumption based planning.
Q system is a system wherein replenishment is done keeping the period constant. The
quantity becomes the variant. In other words you will check for the level of stock at fixed
time intervals (daily, weekly, monthly etc.) compare it with the requirements on that day
and trigger the procurement process for replenishment.This normally relates with your
MRP.
Now there are 4 more factors that could affect the idealistic procurement pattern:
1. Ordering Lead-time.
2. Manufacuring Lead-time
3. Transporting Lead-time
4. Stock conversion Lead-time (or Quality Inspection lead time)
A delay in any or all of the above can have effect on the entire replenishment process and
the stock. A buffer stock must be designed to take into account the above coverage. Again
the determination of your safety stock depends on the accuracy of your forecast. Higher
your accuracy, lower your safety stock. This relationship between forecast accuracy and
service level
is denoted by factor R. This also takes into account that the customer demand cannot be
always satisfied 100% of the time.
Now If replenishment lead time is greater than the forecast period by factor W then:
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Else
Now in SAP If the material is produced in-house, the delivery time is: opening period + in-
house production time + goods receipt processing time. It is expressed in workdays. The
forecast period is taken from the material master record and is also expressed in
workdays.
If the material is procured externally, the delivery time is: Processing time for purchasing
+ planned delivery time + goods receipt processing time. It is expressed in calendar days.
The forecast period is taken from the material master record and is also expressed in
calendar days.
As a result of this you will have observed now that the safety stock must cover both the
unplanned material excess consumption, as well as the additional requirements caused by
delayed deliveries.
In SAP you can specify a minimum safety stock. If the result of the safety stock
calulation by the system is lower than this limit, the safety stock is automatically set to
this value. You enter the minimum safety stock in the material master record (MRP 2
screen).
Safety Stock:
In IMG -> Materials Management -> consumption Based Planning -> Master Data -> Check
MRP Types (transaction code OMDQ) you use the indicator Calculate Safety Stock so that
system calculates the safety stock automatically.
The safety stock can be calculated automatically for materials planned with one of the
consumption-based planning procedures if:
1. The service level has been maintained in the material master record.
2. Historical data exists
3. The forecast has been carried out for the material.
If the option Define Range of coverage profiles is chosen in IMG (Tr.Code OM1A) you can
determine a safety stock level that takes into account:
1. Requirements.
2. Range of coverage
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The limiting factors to the above are:
1. Maximum and minimum range of coverage ( defined period , that is month, week or PPC
planning calendar)
2. Determination of various periods for the validity of the range of coverage.
ADR = Requirements in the specific period / number of days in the total period length
(defined period x standard days)
Please note here that if you carry out the planning run even in the middle of the month the
system will include even the requirements planned at the beginning of the month.
Please also note that you can determine the range of coverage for a maximum of 3
periods.
However you have the option of maintaining different coverage for each of these periods.
Based on your customization the system determines the number of days used for
calculating your average daily requirement
Having confirmed the above, I will now try and explain through an example how the system
calculates the Dynamic safety stock:
Presume that the system has determined the ADR as 25 Kgs for a material.
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Now the System determines the following;
Case 1:
Stock = 45 Kgs
System Activity = DSL - stock
Procurement Proposal = 105 Kgs
Case 2:
Stock = 60 Kgs
System Activity = DSL - stock
Procurement Proposal = 90 Kgs
Case 3:
Case 4:
System Activity = System checks whether the procurement proposal is firmed and if yes
it displays an exception message.
Also note that in the case of Time Phased materials planning The range of coverage is
calculated differently.
Suppose by mistake you closed the period and want to reopen it.
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Enter the period you want to open sequentially. For e.g. the current period is 10, and you
want to be open for the 7th one, then you have to open period like 9th, 8th and 7th. After
making the correction you have to closed the period again sequentially.
There are no major-minor impact on the system, but it is better to do this once only.
Regular practice for this transaction may be harmful.
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