MM Blue Print

Walvoil Fluid
Flui d Power India Pvt ltd

4.Materials Management
As Is Business Process and Business
Power (India) Pvt. td.
Business Requirement from Walvoil Fluid !o Be Business Process for Walvoil Fluid Power (India) Pvt.
td.
(Im"lementation of m#$AP %RP and Walvoil &# '$ I! $ervices (I) Pvt. td. for Walvoil Fluid Power (India) Pvt td
yiva
$ignoff on Business Blue Print on
4. Materials Management
Introduction
This Business Blue Print Document describes the following:
Enterprise Structure of Walvoil (*+ I% on ,-st Fe& ,/)
Business r sers
!r" Ivano #hiossi
Project Sponsor
!r"
!r" $marn
marnat
ath
h %amc
%amch
handr
andran
an !r"
!r" &abr
&abri'
i'io
io Stro
tro''i
''i !r"
!r" ( ) *ri
*rishn
shnamu
amurthy
rthy !r"
!r" $vina
vinash
sh )umb
)umbre
rey
y
Steering Committee Steering Committee Steering Committee Steering Committee

Member, Walvoil Member, Walvoil Member, CVS IT Member, CVS IT
!r" $vinash )umbrey !r" (arayana %a+an"(
Project Manager, Project Manager,

CVS IT Walvoil
!r"Srinivasa %ao ", !r" (arayana %a+an" ( !r" ,inay *umar %eddy !r" Sathya(arayana"$ - !r" %avi.anth S"
Consultant, CVSIT Module Owner, Walvoil Team Member, Walvoil Team Members, Walvoil
Business Blue Print / !aterials !anagement / !r"%a+an0 !r",inay / W$1,2I10 !r"Srinivas 3 #,S IT Page 4 of 55
Power (India) Pvt. td. td.
Introduction
 Enterprise Structure of Walvoil
 Business re6uirements as given
given by the Walvoil *ey sers
 Suggestions by #,S IT consultants wherever myS$P
myS$P E%P features are found to be useful to Walvoil
Walvoil business functionality
 To3Be Process on myS$P E%P system suggested by #,S IT #onsultants
 #omments whether the re6uirement can be reali'ed on the S$P %78 system or not"
 9aps which are at different stages of eploration
The following codes are given to each module that is within the scope of the agreement:
!odule
!odule
ID
4 &inancial $ccounting
; #ontrolling
8 Sales - Distribution
< !aterials !anagement
= Production - Planning
> ?uality !anagement
&urther processes0 sub3process and activities in each module are denoted by0 say" 4"40 4"4"40 4";"4 etc"
$ Business Blueprint document is prepared for each module and reference shall be made wherever re6uired to other modules0 whenever
there is an overlap of business processes across
across modules or a business process re6uires to be completed
completed in more than one module" The
reference to the business process shall be made using the process numbers a s described above@
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Introduction
 Enterprise Structure of Walvoil
 Business re6uirements as given
given by the Walvoil *ey sers
 Suggestions by #,S IT consultants wherever myS$P
myS$P E%P features are found to be useful to Walvoil
Walvoil business functionality
 To3Be Process on myS$P E%P system suggested by #,S IT #onsultants
 #omments whether the re6uirement can be reali'ed on the S$P %78 system or not"
 9aps which are at different stages of eploration
The following codes are given to each module that is within the scope of the agreement:
!odule
!odule
ID
4 &inancial $ccounting
; #ontrolling
8 Sales - Distribution
< !aterials !anagement
= Production - Planning
> ?uality !anagement
&urther processes0 sub3process and activities in each module are denoted by0 say" 4"40 4"4"40 4";"4 etc"
$ Business Blueprint document is prepared for each module and reference shall be made wherever re6uired to other modules0 whenever
there is an overlap of business processes across
across modules or a business process re6uires to be completed
completed in more than one module" The
reference to the business process shall be made using the process numbers a s described above@
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&or e"g":
$s per the above notation0 $ll processes in Sales - Distribution start with 8"A So if a reference has to be made to process in $ccounts
%eceivable of &inancial $ccounting0 then the reference is made using the notation say0 4";" A where C4 refers to &inancial $ccounting and
4"; refers to $ccounts %eceivable and then further numbers denote the sub3 processes and activities in the module"
Step 4:
The !odule 2wner shall identify various eisting business processes at a broad level and ma.e a list of them as described under section 4
of this document
Step ;:
Depending upon the various business processes thus identified in Step 40 various business scenarios are described in the following way:
$s Is Business Processes: The current way of eecuting the business process shall be eplained in detail with data7information flow along
with the IT systems 7 !anual Systems being used in the whole cycle"
Business %e6uirement: nder this head0 the module owner shall describe the re6uirements of the company vis33vis this business scenario0
if necessary with eamples" &ollowing situations can arise:
The current provisions in the system are sufficient enough and additional configuration efforts are not re6uired"
The current provisions are not sufficient and satisfactory and additional features need to be incorporated in the system
There is no current provision to handle this transaction at all"
The module owner shall identify each business scenario with the above classification"
Step 8:
Based on the Business %e6uirement0 #,S IT consultant shall do a detailed %e6uirement $nalysis and based on the analysis0 shall propose
the best fit business process on the S$P %78 system"
It may not be possible to decide the reali'ation possibility of all Business re6uirements on the myS$P E%P7#I(<"F$ system immediately
and hence the following legend is being followed for describing the statuses:
As Is Business Process and Business Requirement from Walvoil Fluid !o Be Business Process for Walvoil Fluid Power (India) Pvt.
Status of To3Be Business

Status Description
Process
$3Possible #an be implemented on myS$P E%P and W$1,2I1
B3Possible with wor.around #an be implemented on myS$P through indirect means
#3Possible with $B$P #an be implemented on myS$P through $B$P7< development

'ontents
D3Possible with $B$P GBut #an be implemented on myS$P through $B$P7< development but system performance may be
performance issueH effected Page 1um&ers
0 !o"ic
E3(ot possible with out !a+or #annot be implemented on myS$P without ma+or system modification
$tart %nd
!odification
4 Definitions = 5
&32pen for eploration Possibility of implementation will be eplored in the development environment" #annot be confirmed
; at thisstructure
Enterprise stage
K L
93(ot possible #annot be implemented on myS$P
8 Business Process Scope 4F 44
)3(ot in Scope #annot be implemented because it is not part of the scope defined in the Software Services
< $greementJ
Business between #,S IT - Walvoil
Process Details 4; 5>
= %eports 55 55
The To3Be business process reali'ation is
dependent on the following aspects:
Scope of services described in the Software Services $greement signed by W$1,2I1 - #,S IT
Scope of functionality described in the Software Services $greement mentioned above"
#apabilities - 1imitations of myS$P E%P
$s3Is Business *nowledge Transfer from myS$P E%P Pro+ect Team members
Business %e6uirements defined by the Walvoil Pro+ect Team members
W$1,2I1 accepts that the decision to accept the CTo3Be Business Processes is completely its own and not influenced by #,S IT" #,S IT
shall not be responsible for the business conse6uences on Walvoil after the reali'ation and usage of the processes being suggested here"
Walvoil shall indemnify #,S IT from all responsibilities for any other business conse6uences during the framing of the To3Be Business
processes0 or at any time during or after the reali'ation 7 implementation of these processes on myS$P E%P system or while using the
system"
!ethodology to be adopted for preparing Business Blue Print:
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-. 2efinitions3
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'om"an# 'ode3
The #ompany code is smallest organi'ational unit of eternal accounting for which a complete0 self3contained set of accounts can be
created" This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial
statements0 such as the balance sheet and the profit and loss statement"
Walvoil &luid Power GIndiaH Pvt" 1td" are mentioned as #ompany in this document"
'art of Accounts3
This is a list of all 971 accounts used by one or several company codes"
&or each 971 account0 the chart of accounts contains the account number0 a ccount name0 and the information that controls how an account
functions and how a 971 account is created in a company code"
Plant3
$ plant is an organi'ational logistics unit that structures the enterprise from the perspective of p roduction0 procurement0 plant
maintenance0 and materials planning" $ plant is manufacturing a facility or branch with in a company"
Purcase +rgani5ation3
$ purchase 2rgani'ation is an organi'ational level that negotiates conditions of purchase with vendors for one or more plants" It is legally
responsible for completing purchase contracts"
Purcasing grou"3 is the .ey for a buyer or group of buyers responsible for certain purchasing a ctivities"
$torage ocation3
$ Storage location is a Storage area comprising warehouses in close proimity" !aterial stoc.s can be differentiated with in one plant
according to storage location"
$tate %6cise Invoice3
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$ document that is re6uired at the time of sale of finished goods produced by using the state ecisable goods li.e %ectified Spirit as %aw
!aterials"
A!3
Type of ta introduced by 9ovt of India0 and has been implemented by many states including *arnata.a where Walvoil operates from"
$tate %6cise 2ut#3
$s per the provisions of the *arnata.a State Ecise $ct0 the company is filing an application to ta.e the approval of State Ecise
Department0 for using the ecisable inputs in the manufacturing activity by remitting the applicable duty on the assessable value of the
proposed finished product" This approval needs to be ta.en before the commencement of the !anufacturing $ctivity" The said application
shall contain all the details of products to be manufacturedJ and ?uantity in each batchJ during a given period of time" In case0 the
company produces more 6uantity in a batch than that was mentioned in the approved application0 then company shall remit the ecise
duty on the differential 6uantity" If the 6uantity produced in a batch is less than the approved one0 the refund of unutili'ed ecised duty
from the department cannot be claimed" The produced units shall absorb the said unutili'ed ecise duty amount" The company considers
the normal loss while ma.ing the application and accordingly mentions the estimated 6uantity in each batch"
'ustom 2ut#3
Duty levied by the government when a material is imported to India from abroad"
,. %nter"rise $tructure on $AP R78 $#stem
Purcasing +rgani5ation
'urrent 1ew 9ustification 7 Pur"ose of te

#ode Description #ode Description +rgani5ational :nit
Definition
$n organi'ational unit subdividing an enterprise
according to the re6uirements of Purchasing" It
procures materials and services0 negotiates
conditions of purchase with vendors0 and is
responsible for such transactions"
Structure
The form of procurement is defined by the
assignment of purchasing organi'ations to
company codes and plants"
The following forms of purchasing eist:
#orporate3group3wide
$ purchasing organi'ation procures for all the
Walvoil &luid Power GIndiaH 44FF Walvoil Purchase company codes belonging to a client"
Pvt 1td 2rgani'ation
#ompany3specific
$ purchasing organi'ation procures for +ust one
company code"
Plant3specific
$ purchasing organi'ation procures for a plant"
!ied forms are possible0 which can be
replicated in the system by the use of reference
purchasing organi'ations"
$ purchasing organi'ation can utili'e the more
favourable conditions and contracts of the
reference purchasing organi'ation that has
been assigned to it"
Purcase grou"s
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'urrent 1ew
9ustification 7 Pur"ose of te +rgani5ational
#ode Description #ode Description :nit
buyer or group of buyers responsible for certain

4F4 Domestic
purchasing activities
4F; Imports
4F8 Services
4F< !%2
4F= Mobwor.
4F> !iscellaneous purchasing activities
$torage ocations
'urrent 1ew
9ustification 7 Pur"ose of te +rgani5ational
#ode Description #ode Description :nit
%!F4 %aw materials Storage location

S&F4 Semi &inished Storage location
&9F4 &inished Storage location
SPF4 spares Storage location
P*F4 Pac.ing Storage location
S#F4 Scrap Storage location
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8. Business Processes sco"e3
Business Process
Business Process Description
Id
<"4 !aster data !aintenance
<"4"4 !aterial !aster !aintenance
<"4"; Service !aster !aintenance
<"4"8 ,endor !aster !aintenance
<"4"< Purchase info records
<"4"= Source list maintenance
<"4"> !aintain vendor evaluation criteria
<"4"5 !aintenance of #onditions for Procuring !aterials
<"4"K Payment Terms
<"; Procurement Process
<";"4 Purchase %e6uisition
<";"; %e6uest for ?uotation
<";"8 ?uotation
<";"< Purchase 2rder 3 1ocal G%!0 P!0 !%2 ItemsH
<";"= %elease Strategy
<";"> Purchase 2rder 3 Imports
<";"5 2utbound service orders 7 Mob wor.
<";"K Purchase order 3 services
<";"L Purchase 2rder $mendment
<";"4F #ash Purchases
<"8 9oods %eceipts
<"8"4 ?uality #hec.
<"8"; 9%( due to Purchase of $ssets
<"8"8 9%( due to Production
<"8"< 9%( due to &inished 9oods %e+ection
<"8"= 9%( for !%2 items
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<"8"> 9%( in to Bloc.ed Stoc.

9%( due to 2utbound Service 7 Mob 2rdersGPurchase
<"8"5
2rders for ServiceH
<"8"K Ecise Transactions
<"8"L (ormal re+ection handling
<"8"4F 1ine %e+ection handling
<"< 9oods Issue
<"<"4 9oods Issue to 2utgoing Service7Mob Wor. 2rders
<"<"; 9oods Issue to Scrap
<"<"8 9oods Issue to Production
<"<"< 9oods Issue to Sales 2rder
<"<"= 9oods Issue to ?uality
<"<"> 9oods Issue to #ustomer7,endor7Third Party
<"= 1ogistics Invoice ,erification
<"="4 Entry of ,endors Invoice
<"="; Par.ing ,endors Invoice
<"="8 #ancelling ,endors Invoice
<"="< !aterial ,aluation
<"="= Physical Inventory
4. Business Process details3
!aterial7Services #overage - Different Types of Procurement

Procurement at Walvoil covers the following items but it will ta.e some time to function completely:
%aw !aterial re6uired for Production
Semi finished goods
!%2 Items / !aintenance0 %epairs - 2perating Supplies
Services 3 $dhoc - Periodic
Services with !aterial Supply %epairs etc
Walvoil ma.es the following type of purchases it also ta.es some time to function fully:
Procure3to3Stoc. G%! and !%2 itemsH
(eed3based Procurement / based on Purchase % e6uisition G%!0 !%2 itemsH
#apital 3 Budgeted
#apital 3 (on3budgeted
Service #ontracts
Service with material supply 3 Mob wor.
%epairs
#ash Purchases
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Material 'oding
$s Is
!aterial Type
Eternal 7
Total 1ength 1ogic4
Internal
%aw materials (ot following any codes now
Semi finished
9oods
&inished 9oods
Spares
!isc
!o Be
!ateria
l Type Et 9roup 9roup 9roup
Total
7 4 1ogic4 ; 1ogic; 8 1ogic8
1ength
Int" length length length
Part (o" as per Walvoil
Et 4F
GItalyH
4.- Master 2ata Maintenance
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As Is Business Process3 Requirement Anal#sis

(ot following any separate master data li.e S$P %78 provides functionality for maintaining the following master data:
!aterial master !aterials
,endor master Services
#ustomer master ,endors
,endor approved price list Purchasing Info %ecords
Service master Source 1ist
,endor Evaluation #riteria
Business Requirement 3 #onditions G#ommercialH
Payment Terms
4" S$P Best Practises for I! - # to be implemented where ever
suits to Walvoil re6uirement" $uggested Business Process3
Materials3
The material master contains information on all the materials that a
company procures or produces0 stores0 and sells" It is the companyNs
central source for retrieving material3specific data" This information is
stored in individual material master records"
The material master is used by all components in the S$P 1ogistics
System" The integration of all material data in a single database ob+ect
eliminates redundant data storage" In the S$P 1ogistics System0 the
data contained in the material master is re6uired0 for eample0 for the
following functions:
In Purchasing for ordering
In Inventory !anagement for goods movement postings and physical
inventory
In Invoice ,erification for posting invoices
In Sales and Distribution for sales order processing
In Production Planning and #ontrol for material re6uirements planning0
scheduling0 and wor. scheduling
Service !aster
Service master records0 in which descriptions of all services that may
need to be procured can be stored
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endor Master
Data in vendor master records controls how transaction data is posted
and processed for a vendor" The vendor master record also contains all
the data you re6uire to do business with your vendors"
The master record is used not only in $ccounting but also in !aterials
!anagement" By storing vendor master data centrally and sharing it
throughout your organi'ation0 you only need to enter it once" Oou can
prevent inconsistencies in master data by maintaining it centrally" If one
of your vendors changes their address0 you only have to enter this
change once and your accounting and purchasing departments will
always have up3to3date information"
Purcase info records
Oou use this component if you wish to store information on a vendor and
a material as master data at purchasing organi'ation or plant level" Oou
can create purchasing info records for different procurement types
Gstandard0 subcontracting0 pipeline0 consignmentH"
$ource ist
The source list is used in the administration of sources of supply"
It specifies the allowed Gand disallowedH sources of a material for a
certain plant within a predefined period" Each source is defined by
means of a source list record"
endor %valuation 'riteria
The ,endor Evaluation component supports you in optimi'ing your
procurement processes in the case of both materials and services"
*a"s3
4.-.- Material Master Maintenance

(ot following any material master data 4" Oou can identify material or document changes that are made with
Item #ode (umbering System reference to a change number by the use of revision levels"
When you want to process the B2!s for these materials or documents at
a later date0 you can find and call them using either the change number
Business Requirement3
or the revision level"
4"S$P Best Practises for I! - # to be implemented where ever
Oou can assign a revision level to a material either from an engineering
suits to Walvoil re6uirement
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change management function or while you are processing a material

master record or B2! for the material"
;" 2ver deliveries
In the standard0 over deliveries are not allowed" In the event of an over
delivery0 the system issues an error message"
If over deliveries are to be allowed0 you can specify the following data in
the purchase order:
nlimited indicator
If this indicator is set0 over deliveries of any si'e are allowed" The
system does not issue any message"
2ver delivery tolerance
Oou can enter a percentage over delivery tolerance in the purchase
order" If a 6uantity of goods is received that is larger than the order
6uantity plus the over delivery tolerance0 it is not accepted by the
system"
8"Scrap factor is generally considered in the Bill of !aterials of
production planning module
<" By using the relevant fields in net re6uirements planning and
scheduling of !%P; view in material master this can be addressed"
=" S$P provides various fields using !%P4 ,iew in the material master
and by selecting the !%P Procedure one can maintain 1ot Si'e0 1ot for
1ot 2rder 6uantity0 !inimum lot si'e0 !aimum lot si'e and maimum
stoc. level"
>" System Distinguishes between the following units of measure"
Base :nit of measure
This is the unit of measure in which the stoc.s of a material are
managed"
This is the unit of measure in which the stoc.s of a material are
managed" The system converts all 6uantities entered in other units to
the base unit of measure"
Alternative units of measure
Individual departments may have their own units of measure" &or
eample0 Purchasing may use a different unit than Sales or Warehouse
!anagement GW!H" $ll units of measure other than the base unit of
measure are referred to as alternative units of measure" The %78 System
supports the following alternative units of measure:
+rder unit
$llows a material to be ordered in a unit differing from the base unit of
measure" The order unit is proposed automatically in purchasing
functions0 where it can be changed"
$ales unit
$llows a material to be sold in a unit differing from the base unit of
measure" The sales unit is proposed automatically in the sales order0
where it can be changed"
:nit of issue
nit of measure in which the material is issued from the Stores" It allows
consumption0 stoc. transfers0 transfer postings0 and physical inventories
to be recorded in a unit differing from the base unit of measure and from
the stoc. .eeping unit"
K" &I&2 valuations are a method that enables you to valuate the stoc.s
of a material as realistically as possible" &I&2 Gfirst in0 first outH stands
for the assumption that the first stoc.s of a material to be received are
the first to be consumed" The value of the stoc. is therefore calculated
based on the last stoc.s received"
&I&2 valuation has a number of uses:
1isting the &I&2 values of certain materials"
When you run &I&2 valuation0 the system calculates the &I&2 values of
the materials concerned" The results are displayed in the form of a list
that contains the following information:
3 The closing stoc. 6uantity and closing stoc. value for each material for
the period in 6uestion as well as the &I&2 value and the difference
between that and the stoc. value
3 The net value based on lowest value determination Gif you carry out
&I&2 valuation with lowest value comparisonH
3 The totals for each valuation area or company code by material stoc.
account
3 The totals by valuation area or company code
L" Date &ree'ing / There are ,arious features available in S$P System
features li.e Scheduling for activation of newly created materials0
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changes Display etc"0 $lso one can ma.e use of setting deletion indicator
for a material at various levels in the organi'ation structure" Walvoil can
ma.e use of this available feature as per the business re6uirement"
4F" Search help control is an $ctive component" It was developed to

support the S$P search help techni6ue"
In contrast to the previous search help techni6ue0 which used %78 dialog
boes0 search help control uses a dialog techni6ue that is session3
independent" This means that the user can only open search help
windows one at a time"
Search help windows may0 however0 remain open within a single
transaction" This allows you to refer to the results displayed in a
particular search help window on subse6uent screens of the same
transaction"
With match codes0 you can use the menu to choose from the various
different search possibilities displayed
#lic.ing on the right mouse button displays all of the search help control
functions available in the current contet"
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44" $ material may have various documents such as drawings and

photographs assigned to it" The system differentiates between these
documents by means of the document type" If your company uses S$Ps
document management system0 you can manage documents and assign
eisting documents to a material in the material master record"
Document data is managed at client level"
If one document of the standard document type has been assigned to
the material0 the details are displayed directly on the Design documents
assigned sub screen" In the standard %78 System0 this sub screen
appears on the:
Basic Data screen in the industry system
2ther Basic Data screen in the retail system
Oou access the 2ther Basic Data screen from the Basic Data screen by
choosing 2ther basic data"
If the document is not of the standard document type0 the (o lin.
indicator is set on the Design documents assigned sub screen" Oou can
display such documents by choosing $dditional data 3Q Document data"
The (o lin. indicator is also set if a document has not yet been assigned
to the material"
If more than one document of the standard document type has been
assigned to the material0 the Several lin.s indicator is set on the Design
documents assigned sub screen" Oou can view these documents by
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choosing $dditional data 3Q Document data"

4;" There are various possibilities for maintaining material code" It is
suggested to go for a single code instead of maintaining two different
codes for a material"
48" !aterials shall be created as per the assignment to the organi'ation
structure" Provision to define various storage locations as per the Walvoil
shall be considered and will be suggested"
4<" !%P4 to !%P< view allows to maintain data related to !PS" Suitable
fields shall be considered as per Walvoil %e6uirement"
4=" !%P4 to !%P< view allows to maintain data related to !PS" Suitable
fields shall be considered as per Walvoil %e6uirement"
!%2 Items
!aterial specific tets can be maintained in the materials tets in
material masters
!aterial Description logic depends on Walvoil policy"
Walvoil responsibility to assign roles for maintaining material master
data" $ detailed training shall be provided by #,SIT"
It is possible to maintain specifications0 Drawings etc in the material
master records !aterial master view provides a filed to maintain 2E!
Information"
$uggested Business Process 3
The material master contains information on all the materials that a
company procures or produces0 stores0 and sells" It is the companyNs
central source for retrieving material3specific data" This information is
stored in individual material master records"
Integration
The material master is used by all components in the S$P 1ogistics
System" The integration of all material data in a single database ob+ect
eliminates redundant data storage" In the S$P 1ogistics System0 the
data contained in the material master is re6uired0 for eample0 for the
following functions:
In Purchasing for ordering
In Inventory !anagement for goods movement postings and physical
inventory
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In Invoice ,erification for posting invoices

In Sales and Distribution for sales order processing
In Production Planning and #ontrol for material re6uirements planning0
scheduling0 and wor. scheduling
!aterial !aster %ecords
$ll the information Walvoil needs to manage a material is stored in a
data record in the material master0 sorted by various different criteria"
Walvoil can enter and change most of the data in a material master
record" )owever0 some information can only be updated by the system"
&or eample0 the system updates the administrative data when you
process a material master record0 and stoc. balances when goods
receipts or goods issues are posted"
The data in a material master record can be divided into two categories:
Data of a purely descriptive nature
This is data with information content such as name0 si'e0 or dimension"
Data that the system uses to perform a control function
This is data such as !%P type and price control"
Since different departments in Walvoil wor. with the same material0 but
each department uses different information on the material0 the data in
a material master record is subdivided by user department"
ser Departments at Walvoil using one material record
Since several departments of Walvoil wor. with one material and each
department uses different information for the material0 the data is
structured in a material master record0 according to user departments"
This is portrayed in the following graphic:
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Material !#"e3
!aterials with the same basic attributes are grouped together and
assigned to a material type" This allows Walvoil to manage different
materials in a uniform manner in accordance with your companyNs
re6uirements" Eamples of material types are given in the graphic
below"
Material *rou"3
*ey that you use to group together several materials or services with
the same attributes0 and to assign them to a particular material group"
se
Oou can use material groups to:
%estrict the scope of analyses
Search specifically for material master records via searc el"s
*a"s 3
4.-., $ervice Master Maintenance

(ot following Service master data Service activities process shall be carried in S$P System as per the
re6uirement"
Business Requirement3 Service %e6uest7!aterial %e6uest7 #ape %e6uest shall be through the
S$P System GPurchase re6uisition / %&? / ?uotation3 Price #omparison3
Purchase 2rder3Service entry sheet3Invoice ,erification and PaymentH"
suits to Walvoil re6uirement Purchase %e6uisition shall be based on the material group but Standard
system also provides features to create P%s on !aterial0 $ccount
$ssignment0 Item category0 plant etc"0
$uggested Business Process3
The service master record counts as part of the master data within
Eternal Services !anagement and serves as a source of data for you to
draw upon when creating service specifications" This enables you to save
time and reduces the fre6uency of errors0 since you need only enter the
complete service descriptions in the service master record once"
Structure
$ service master record contains the following principal information for
the uni6ue description of a service:
Service number
Service category
Descriptive tets Gshort and long tetH
Base unit of measure
!aterial group
,aluation class
*a"s3
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4.-.8 Maintenance of endor Master
As Is Business Process 3 Requirement Anal#sis

(ot following any separate vendor master data 4" Business partners have a number of different functions0 described as
partner functions0 in connection with your company" Oou use partner
Business Requirement3 functions to define the rights and responsibilities of each partner type in
a business transaction" When you sell or order goods0 for eample0 your
business partners can assume partner functions such as:
endor Partner functions3
a" 2rdering address
b" 9oods supplier
c" Invoice presented by
d" $lternative payee
Different business partners may carry out one or more partner functions"
&or this reason0 you can assign individual business partners a number of
partner functions"
Oou manage data on business partners in master records" Data on
partner functions is stored in these master records and used in &inancial
$ccounting and 1ogistics"
$ business partner can be a customer and a vendor at the same time if0
for eample0 your customer also supplies goods to you or if a vendor is
also one of your customers" In this case0 you must create a customer
master record and a vendor master record for the business partner" Oou
can create a lin. between the two master records by entering the vendor
number in the customer master record and the customer number in the
vendor master record"
;" Terms of payment are rules agreed with your business partners" They
apply to financial clearing for goods and services" Standard system
allows one to associate terms of payment at master data level and at
transaction level"
8" Oour company does business with some business partners for a long
time" &or eample0 you have special price agreements with long3term
customers and their deliveries get preferential treatment" $t the end of
the fiscal year0 you can honour the loyalty of these customers with
rebate payments" In other cases0 you have only one contact with a
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business partner" &or eample0 you order merchandise from a different

vendor once0 because your preferred vendor cannot deliver" In the %78
System you can distinguish between:
#ustomers and vendors
Oou create a master record and assign partner functions for each
business partner"
2ne3time customers and one3time vendors
Business partners who have a business transaction with you only once
are called one3time customers and one3time vendors" Oou do not have to
create a master record for one3time customers or one3time vendors
because you do not need this master record after the business
transaction0 and it uses space" Oou create collective master records for
one3time customers and one3time vendors"
<" ?uotations and delivery reminders can be sent using features
available in Standard system"
Data in vendor master records controls how transaction data is posted
and processed for a vendor" The vendor master record also contains all
the data you re6uire to do business with your vendors"
The master record is used not only in $ccounting but also in !aterials
!anagement" By storing vendor master data centrally and sharing it
throughout your organi'ation0 you only need to enter it once" Oou can
prevent inconsistencies in master data by maintaining it centrally" If one
of your vendors changes their address0 you only have to enter this
change once and your accounting and purchasing departments will
always have up3to3date information"
vendor master record contains3
,endors name0 address0 language0 and phone numbers
Ta numbers
Ban. details
$ccount control data li.e the number of the 971 reconciliation account for
the vendor account
Payment methods and terms of payment set up with the vendor
Purchasing data
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)ow the Data is organised

!aster records are divided into the following areas so that each company
code and each purchasing organi'ation can store its own information for
doing business with vendors"
*eneral data
This is data that applies to every company code a nd every purchasing
organi'ation in your company" The general area includes0 for eample0
the vendors name0 address0 language0 and telephone number"
'om"an# code data
This is data that is specific to an individual company code" #ompany
code data includes0 for eample0 the reconciliation account number and
payment terms"
Purcasing organi5ation data
This is data relevant to the purchasing organi'ation of your company" &or
eample0 re6uests for 6uotations0 purchase orders0 and invoice
verifications are stored in this section"
endor grou"s
4" %aw material supplier3 domestic
;" Pac.ing material supplier 3Domestic
8" !iscellaneous purchases ,endors
<" #apital Purchases
=" 2ne time vendors
>" &inancial vendors
5" Transport vendors
K" %aw material supplier3 Imports
L" Pac.ing material supplier /imports

4F" Employee vendors
44" #apital Purchases 3 Imports
endor 1um&er Assignment

The vendor master record number can be assigned either internally or
eternally" Internal numbers are assigned by the system0 whereas you
enter eternal numbers yourself when you create the vendor master
record" Eternal numbers can be alphanumeric"
The account group determines whether account numbers are internal or
eternal and what the valid number interval for a vendor master record
is"
The system ensures that the numbers assigned are always uni6ue" With
Internal assignment0 the system selects the net number from the
interval" With eternal assignment0 the system prevents you from
entering the same number twice"
Access Autorisation
Oou can restrict access to master records in order to prevent
unauthori'ed changes" Depending on how you organi'e your master
data0 you can assign authori'ations for maintaining this data" &or
eample0 one user may have authori'ation to maintain all master data0
while another may have authori'ation to maintain only accounting
master data"
Oou can even assign authori'ations for different types of processing" $ll
users could have authori'ation to display master records while only a
limited group of users may be able to create and change master data"
*a"s3
4.-.4 Purcase info records

(ot &ollowing Info Record Price ersus P+ Price
The net price in the info record and the net price in the purchase order
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Business Requirement3 are two different prices"

4"S$P Best Practises for I! - # to be implemented where ever The net price of an item in the info record is based on the conditions
suits to Walvoil re6uirement stipulated in the info record" If you change the conditions0 the net price
in the info record is recalculated and the pricing date ad+usted
accordingly"
In contrast0 the price in the purchase order may reflect the deduction of
a 6uantity discount according to a price76uantity scale"
$s a rule0 the conditions from the info record are adopted in the P2"
)owever0 if a price76uantity scale has been defined0 the price for the
relevant order 6uantity is ta.en"
$uggested &usiness "rocess3
Oou use this component if you wish to store information on a vendor and
a material as master data at purchasing organi'ation or plant level" Oou
can create purchasing info records for different procurement types
Gstandard0 subcontracting0 pipeline0 consignmentH"
Definition
Serves as a source of information for Purchasing" The purchasing info
record Galso referred to in abbreviated form as the Rinfo recordRH
contains information on a specific material and a vendor supplying the
material" &or eample0 the vendorNs current pricing is stored in the info
record"
The info record allows buyers to 6uic.ly determine:
Which materials have been previously offered or supplied by a specific
vendor
Which vendors have offered or supplied a specific material
!e info record contains3
Data such as prices and conditions that you can store for the relevant
purchasing organi'ation or plant
The number of the last purchase order
Tolerance limits for over deliveries and under deliveries
The planned delivery time Glead time re6uired by the vendor to deliver
the materialH
,endor evaluation data
$n indicator showing whether the vendor counts as the regular vendor
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for the material

The vendor sub3range to which the material belongs
The availability period during which the vendor can supply the material
The info record contains 6uotation and ordering data" The data in the
info record Gprices for eampleH is also used as default data for purchase
orders"
&or instance0 you can store the current and future 6uotation conditions
Gdiscounts0 fied costs etc"H in the info record0 in order to be able to copy
them into Pos" Oou can also maintain the vendors conditions directly in
the info record"
+rgani5ational evels
$n info record can apply to the following organi'ational levels:
Purchasing organi'ation
Plant
Procurement !#"es in Info Records
$tandard
$ standard info record contains information for standard purchase
orders" The info records can be created for materials and services with
and without master records"
$u&contracting
$ subcontractor info record contains ordering information for subcontract
orders" &or eample0 if you subcontract the assembly of a component0
the subcontractor info record would include the vendorNs
GsubcontractorsH price for assembling the component"
,alidity periods"
'onsignment
$ consignment info record contains information on a material that
vendors .eep available at their own cost on the orderers premises" The
info record contains the vendors price for withdrawals by the ordered
from consignment stoc." $s in the case of the pipeline info record0 you
can store prices for different validity periods"
*a"s3
4.-.; $ource list maintenance

(ot &ollowing $uggested Business Process 3
The source list is used in the administration of sources of supply"
Business Requirement3 It specifies the allowed Gand disallowedH sources of a material for a
4"S$P Best Practises for I! - # to be implemented where ever certain plant within a predefined period" Each source is defined by
suits to Walvoil re6uirement means of a source list record"
The source list serves:
To define a source of supply as RfiedR" Such sources count as
preferred sources over a certain period of time"
G&or eample0 the fied vendor for material 4 is $cme #orp" for the
first 6uarter and enith #o" for the second 6uarter of the year"H
To define a source of supply as Rbloc.edR"
GThis means0 for eample0 that contract 4;8 may not be used for a
certain period of time"H
$s an aid in selecting the preferred source during the source
determination process"
G&or eample0 the vendor enith #o" is determined as the source for an
item of a re6uisition dated 4= th Mune relating to material 4"H
To bloc. the eternal procurement of a material"
G&or eample0 material 4 may not be ordered from F4"F4"LK to
4;"84"LK"H
*a"s3
4.-./ Maintain endor %valuation 'riteria

(ot &ollowing $uggested Business Process3
The ,endor Evaluation component supports you in optimi'ing your
Business Requirement3 procurement processes in the case of both materials and services"

Elements of ,endor evaluation

The following sections introduce you to the concept of vendor
evaluation
2verall score
!ain criterion
Sub criterion
Scoring %ange
Weighting of scores
The following five main criteria are available in the standard system:
Price
?uality
Delivery
9en" service7support
These four main criteria serve as a basis for evaluating vendors from
whom you procure materials"

Eternal service provision
This main criterion serves as a basis for evaluating those vendors you
employ as eternal service providers"
9aps:
4.-.< Maintenance of 'onditions for Procuring Materials
<"4"5"4 Prices As Is Business Process 3 $uggested Business Process3

$ll Inclusive prices G(et PriceH: It is a net This component enables you to store pricing stipulations agreed with
price for the merchandise" the vendor Gsuch as applicable discounts or surcharges0 or stipulations
4" Basic price: It is unit price" regarding the payment of freight costsH in the system" Oou can enter
;"9ross price: Basic  Duties and taes also these conditions in 6uotations0 outline purchase agreements0 and info
net of discounts records" Oou also have the option of entering general conditions at
vendor level0 for eample" The system then applies the conditions in
8"Economy of price of supply should capture
determining the price in purchase orders GP2sH" Oou can enter further
vendors re+ections
conditions in the P2 itself"
There are three .inds of price in Purchasing:
9ross price
Price without ta.ing any possible discounts and surcharges into
account"
(et price
Price ta.ing any applicable discounts and surcharges into account"
Effective price
(et price after deduction of cash discount0 with allowance for any
miscellaneous provisions0 delivery costs0 and non3deductible taes"
Pricing conditions shall be maintained in the purchasing info records or
in the header or item level as applicable
<"4"5"; Discounts 4"U Discount: $dholeram discount GBasic 4" Different discounts re6uired by Walvoil are Discount before Ta and
PriceH Discount after ta" The Discount condition records shall be maintained
;",alue Discounts: 2n the total value fied with conditions and values associated with conditions" While processing
amount is a transaction system will search for valid record and as soon as it finds
8" #ash discounts: Discount given on the record matching the condition of sale it should return a discount
Immediate Payment GBasic PriceH" value"
<" ?uantity Discounts: In specific Slabs of the Some of the discounts can be maintained at the time of preparing the
P2 2r 2rder 6uantity the discount U or the purchasing document"
value changes"
< "4" 5"8 Ecise andEcise Duty 4" ,endor0 !aterial and other factors that determine the Ecise duty
Import 4"Ecise Duty in U: Percentage could be in shall be maintained through the #I( !odule of S$P %78"
Duty whole number or could be in Decimals ;" This shall include the Eceptional rates that may be applicable for
;"Special Ecise Duty in U: Percentage could certain vendors and material combination"
be in whole number or could be in Decimals 8" This shall also ta.e into account different ta rates based on the
,endors Status GSSI or (ormalH" The setoff of ecise duty or
inventorying of ecise duty will be controlled by Ta codes"
In Imports the #,D0 which needs to be captured for #E(,$T postings0
shall also be incorporated"
<"4"5"< Sales 4"&or %aw materials and Pac.ing materials 4" Ta condition records can be maintained in the system for various
Ta7,$T (ormal Sales ta G*ST7#STH are taed at U levels of taes0 li.e central and state level0 which will be automatically
;"Present ,$T Ta rate is 4;"=U determined during a transaction depending upon the receiving plant
and the vendors locations"
;" The ta values are maintained as percentages with the help of ta
codes"
<"4"5"= 1ocal )amali charges Gas per slabH" 1ocal delivery and #artages can be maintained in the system0 these
Delivery ;" 2ther )andling and Delivery charges Gas conditions shall be determined during the transaction"
and per slabH"
#artages
< "4" 5"> &reight7Tr &reight U of the Basic 4" The Planned &reight costs shall be boo.ed in the same Purchase
ansport &reight7Transport on $ctual 2rder for which the procurement is to be done"
&reight7Transport on fied amount ;" In cases where the !aterial carrying party is different from the one
&reight as per 6uantity on whom the P2 is raised the &reight ,endor shall also be maintained
in the same P2"
&reight7Transport borne by the supplier
Transport Per 1oad 3 fied amount"
< "4" 5"5 Service Service ta U on gross Service Ta will be maintained as condition type
Ta
< "4" 5"K #ess 4" 1ocal: U on the ED or Service Ta" Education cess will be maintained as condition type in both local as
;"Import: well as in Import procurement"
$ssessable value V J V #I& Price  4F4U
#ustoms Duty V J  GH U V O

#ess of #D V OJ  GH U V 
#,D V GJ  OJH  GH U V $
#ess on #,D V G$  O  H  GH U
4.-.= Pa#ment !erms
As Is Business Process Requirement Anal#sis

There are various payment terms" Payment terms for procuring %! Suggested business process:
and P!0 Payment terms for Procuring $ssets0 !% 2 Items are 4" Walvoil shall use the standard payment terms wherever possible"
different" ;" Wherever re6uired0 specific payment terms shall be defined in the
system li.e Payment with 1#"
4"S$P Best Practises for I! - # to be implemented where ever *a"s3
4., Procurement Process
As Is Business Process
Procurement process at Walvoil $uggested &usiness "rocess3
Walvoil procuring office needs li.e furniture and
#apital 9oods li.e machinery etc"0 Procurement Process is mentioned in following points <";"4 to <";"44

4.,.- Purcase Requisition

Product code0 Product description0 re6uired 6ty" " " " (ow at Walvoil P% Shall be addressed as different Purchase re6uisition Document type
using Ecel for creating the Purchase %e6uisition" and (umber range
$pproved vendor list shall be created in the system"
Business Requirement3 #hanges to Purchase re6uisition shall be made possible upon approval
from authorised person"
4"S$P Best Practises for I! - # to be implemented where ever S$P Standard %eport is available
suits to Walvoil re6uirement Integration issue with PP module" To eplore further
%echec. option li.e error messages and warnings can be thrown"
%e6uirement $nalysis !%2 Items
Each procurement document will have a uni6ue number
Purchase re6uisition line item details li.e material code0 plant0 storage
location0 material group details etc"0
Since Purchase re6uisition line items will have materials codes0 the
specification attached to master data can be copied to document"
Previous supply details can be seen through a separate S$P Standard
report
Through source determination component %ecommended supplier
details can be incorporated"
Purchase re6uisition line item will have all such details
Possible through %elease procedure" %elease procedure process is
eplained in sub process <";"=
#hanges to the approved purchase document shall be restricted
Purchase re6uisition document provides feature to capture costs on to
a cost centre or to 971 account"
$mendment to Purchase re6uisition shall be made possible before
release"
S$P Standard %eport provides this feature
$ll the Purchase documents in Standard S$P System are lin.ed"
S$P Standard %eports provides this feature
Purchase %e6uisitions are created under the following situations:

Purchase %e6uisitions shall be created 3 automatically on !%P %un or
manually by the re6uesting department" !anual creation of Purchase
%e6uisitions for Stoc. Items shall be restricted to the corresponding
!%P #ontrollers through authori'ation profiles"
!anual creation of Purchase %e6uisition for !%2 items will be
controlled by authori'ation profiles"
%elease Strategy shall be incorporated for release of Purchase
%e6uisition as defined in the re6uirements"
*a"s3
4.,., Request for >uotation

sing reference techni6ue method provided by S$P 2ne can copy the
!%2 ITE!S contents for further processing"
&or #ape items possible0 electrical items Gbulbs0 fans etcH Sources Each indent will have separate en6uiry"
are identified GIdentification of Sources by past Purchases by Specification about materials shall be copied if they are maintained
Mournals or Industrial Directory or by referenceH and en6uiry is ?uantity shall be copied as per the reference techni6ue method
floated over phone or by letter" It is possible to mention ?uotation epected date
Technical7 #ommercial Specifications are eplained0 %e6uirement is Provision for mentioning a bench mar. price is possible"
emphasised and 6uotes are obtained"
Provision for mentioning ta and duty structure is possible"
Specification should include the individual characteristics of the
!entioning of commercial terms is possible
item ma.e material etc"0
S$P Standard %eport 9eneral $nalysis report
Ta and duty structures applicable for the company in respective of
the item on procurement
2ther re6uirement of commercial terms should be eplicitly $uggested Business Process 3
mentioned" Oou use this component if you wish to manage and compare re6uests
Sending En6uires to vendors should be possible through direct for 6uotation G%&?sH issued to vendors and the 6uotations submitted
mailing0 fa0 Printout" by the latter in response to them"
In Purchasing0 the %&? and the 6uotation form a single document"
Prices and conditions 6uoted by vendors are entered in the original
%&?" If you have issued an %&? to several vendors0 you can have the
Business Requirement 3 system determine the most favourable 6uotation submitted" Oou can
also store the prices and terms of delivery from certain 6uotations in
4" S$P Best Practises for I! - # to be implemented where ever an info record for future a ccessing"
suits to Walvoil re6uirement" *a"s3
4.,.8 >uotation

Standard S$P %eport Price comparison list
?uotation received from the vendor will consist of 6uantity0 price0 $uggested Business Process3
Payment terms0 #ST and *ST0 E## (umber0 Delivery terms" $ 6uotation is an offer by a vendor to a purchasing organi'ation
?uotations are compared based on price0 ,endor has been regarding the supply of materials or performance of services sub+ect to
finalised" specified conditions"
$ 6uotation is legally binding on the vendor for a certain period" The
Business Requirement 3 6uotation is the vendors response to a re6uest for 6uotation issued by
a purchasing organi'ation"
4" S$P Best Practises for I! - # to be implemented where ever $ 6uotation consists of items in which the total 6uantity and delivery
suits to Walvoil re6uirement" date of an offered material or service are specified"
$n item of a 6uotation may contain a delivery schedule made up of a
number of schedule lines in which the total 6uantity is bro.en down
into smaller 6uantities to be delivered on the specified dates over a
certain period"
$n item of the procurement type Eternal service contains a set of
service specifications" The latter can be hierarchically structured" The
summary view of such a hierarchical structure is referred to as an
outline" The outline comprises a number of levels0 each representing a
level of the service hierarchy" The 6uantities of the 6uotation are set
out in service lines0 representing individual +obs or activities"
If services cannot be defined precisely0 value limits are stipulated
instead of service lines" ,alue limits can be set for certain contracts"
#onditions can apply at various levels:
To the entire 6uotation
$t item level0 to the material to be supplied or to the planned
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procurement in the case of services

$t service line level for individual services Gtas.s or activitiesH
Processing of 6uotation shall be based on the %e6uest for ?uotation
where the ,endor specifies the rates and other details li.e the period
for which the rates will be valid"
The ,endors can be allowed to maintain the 6uotation"
Info records are updated for the validity period0 which shall be copied
as conditions during the creation of the Purchase order"
*a"s3
4.,.4 Purcase +rder  ocal (RM? MR+ Items)
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As Is Business Process3
Purchasing raw materials0 Bought32ut items0 consumables0 !%2 $uggested Business Process3
Items0 #apital 9oods0 Tools and samples" Walvoil shall ma.e use of this component to procure materials or
Based on the indents received manual segregation of urgent and services"
normal indents are made0 en6uires over phone0 fa0 mail etc"0 are Purcasing 2ocument  2efinition
made" $t times numerous attempts are made to obtain realistic0 $ purchasing document is an instrument used by Purchasing to procure
competitive prices from vendors of the material group" Depending materials or services"
on the 6uotes received negotiations with the prospective vendor is
The following list shows the various eternal purchasing documents
made and order confirmation over phone is first made" 2n this
available in the standard S$P System" G(ote: purchase re6uisitions are
contet it is to be noted that details of the specifications to be
not included on this list because they are usually regarded as internal
communicated over phone or fa is an important aspect of
documents used within Purchasing and are therefore treated
obtaining possible offers" It is also possible that vendors ta.en for
separately"H
obtaining 6uotes may not be interested0 may not be dealing in that
line of product or ma.e" )ence new vendors are eplored through Request for quotation (RF>)
old records0 yellow pages0 Indenting departments contacts" Transmits a re6uirement defined in a re6uisition for a material or
service to potential vendors"
2nce P2 is made after the terms are finalised0 P2 are faed to the
party and original is sent by courier7post" >uotation
#ontains a vendorNs prices and conditions and is the basis for vendor
P2 is generated using ecel wor.sheet and a manual register for
selection"
P2 number is maintained" This register will contain brief details of
the item on order and the file number of the item on order" Purcase order (P+)
The buying entitys re6uest or instruction to a vendor Geternal
The typical P2 will contain P2 number0 date0 &ile number0 ?uote or
supplierH to supply certain materials or render7perform certain
offer reference if any0
services7wor.s0 formali'ing a purchase transaction"
$lso details of material description0 specification0 rate0 6uantity0
%e6uirements of materials or services can be reported to Purchasing by
and value are incorporated" &urther order terms such as price0
means of purchase re6uisitions"
delivery0 delivery schedule0 duties0 taes0 transport0 payment
terms as well as ecise and ta particulars are mentioned in the $tructure
order" Each purchasing document is subdivided into two main areas: the
header and individual items" Each document will contain a header and
can contain several items"
Business Requirement 3
The header contains information relevant to the whole document" The
items specify the materials or services to be procured" &or eample0
4" S$P Best Practises for I! - # to be implemented where ever information about the vendor and the document number is contained
suits to Walvoil re6uirement" in the document header0 and the material description and the order
6uantity are specified in each item"
The additional data provides etra information about the item0 and has
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no direct connection with the item procurement data" $dditional data

includes0 for eample0 account assignment data Gsuch as cost center
and 971 accountH and the P2 history for an item0 which contains
information on already recorded goods and invoice receipts relating to
the item"
Each item in a purchasing document represents a unit of procurement"
Purchasing operations Ginvolving re6uisitioning0 ordering and follow3up
processesH occur on an item3specific basis"
@ow does te $AP $#stem 2ifferentiate Between Purcasing
2ocuments
In the S$P System0 the different .inds of purchasing document are
distinguished from one another by means of the document type" The
later determines the relevant number range and the fields that are
offered to you for data maintenance purposes0 for eample" The
relevant document type appears as a default value when you create a
purchasing document"
Document types are defined for %&?s0 purchase orders0 and contracts0
for eample" The standard S$P system includes certain document
types" )owever0 your enterprise can also define its own"
@ow is Purcasing 2ocuments 1um&ered
Each document is assigned a uni6ue number" G(ote that the RnumberR
may also be an alphanumeric code: see belowH" This number can be
assigned internally or eternally0 depending on the policy of your
re6uirement" Internal number assignment means that the system
assigns the number" Eternal number assignment means that the
person creating the document must supply it"
$lphanumeric assignment is only possible in the latter case"
$ purchase order is a formal re6uest or instruction from a purchasing
organi'ation to a vendor or a plant to supply or provide a certain
6uantity of goods or services at or by a certain point in time"
Structure
$ purchase order GP2H consists of a document header and a number of
items"
The information shown in the header relates to the entire P2" &or
eample0 the terms of payment and the delivery terms are defined in
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the header"
$ procurement type is defined for each of the document items" The
following procurement types eist:
 $tandard
 $u&contracting
 contracts
 $toc transfer
 %6ternal service
Delivery of the total 6uantity of material Gor performance of the total
volume of servicesH specified in a purchase order item can be spread
over a certain period in a delivery schedule0 consisting of lines
indicating the individual 6uantities with their corresponding planned
delivery dates"
$n item of the procurement type Reternal serviceR contains a set of
service specifications" The latter can be hierarchically structured" The
summary view of such a hierarchical structure is referred to as an
outline" The outline comprises a number of levels0 each representing a
level of the service hierarchy" The order 6uantities are set out in
service lines0 representing individual +obs or activities" ,alue limits are
specified instead of service lines for services or wor. that initially
cannot be specified precisely"
If services covered by an already eisting contract are released
Gordered0 or called off against the contractH0 the P2 item can contain a
value limit relating to the contract in 6uestion"
'onditions
#onditions can apply at various levels:
To the entire purchase order
$t item level0 to the material to be supplied or to the set of service
specifications in the case of services
$t service line level for individual services Gtas.s or activitiesH
Account Assignment
#osts can be apportioned among various #ontrolling ob+ects via the
account assignment"
P+ @istor#
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The transactions following on from a purchase order are documented in

the P2 history on an item3specific basis"
Partner Roles
Instead of the vendor as the order recipient0 other business partners
can appear in various partner roles Ge"g" goods supplier or invoicing
partyH"
Plant
In the purchase order0 each item is destined for a certain plant" Each
plant belongs to a company code0 to which the vendors GcreditorsH
invoice is directed"
!e6ts
Oou can enter tet in a purchase order directly or change tets that are
suggested by the system" There are two .inds of tet:
)eader tet: applies to the entire document
Item tet: applies only to the relevant item
Oou define which tets appear in which order on printouts in
#ustomi'ing for Purchasing" Oou can enter several header or item
tets0 which you can identify by your own codes"
*a"s 3
4.,.; Release $trateg#
As Is Business Process3 $uggested Business Process3

Walvoil shall use this component if it wishes to set up approval
(ot following any release procedure procedures for purchase re6uisitions or other purchasing documents"
nder such a procedure0 if a purchase re6uisition or eternal
purchasing document fulfils certain conditions Ge"g" the total order
Business Requirement
value eceeds %s4F0 FFFH0 it has to be approved Gby the cost center
manager0 for instanceH before it can be processed further" This process
4"S$P Best Practises for I! - # to be implemented where ever suits of approving Gclearing0 or giving the Rgreen lightR toH a proposed item
to Walvoil re6uirement of ependiture is replicated in the S$P System by the Rrelease
procedureR"
Which Documents #an be %eleased G$pprovedH
%elease procedures can be defined for the following documents:
Purchase %e6uisition
The eternal purchasing documents purchase order GP2H0 contract0
scheduling agreement0 re6uest for 6uotation G%&?H0 and service entry
sheet
*a"s3
4.,./ Purcase +rder  Im"orts
As Is Business Process3 $uggested Business Process :
Imports %aw materials and capital goods 0 &inished 9oods Walvoil ma.e use of this component for import procurement"
Import Procurement procedure Difference will be the #onditions in purchase pricing procedure" $
Based on the above formal indent is obtained for a specific 6uantity Detailed eplanation shall be made available to the user team about
and delivery schedule" If necessary new vendors are also the pricing procedure
approached and offers are obtained before final vendor is finalised $ purchase order is a formal re6uest or instruction from a purchasing
and the import price is fied after negotiating" $lso in certain cases organi'ation to a vendor or a plant to supply or provide a certain
our buyer of the &9 advises the vendor and the import price and 6uantity of goods or services at or by a certain point in time"
accordingly order is placed for import" The same price details are Pricing conditions will be maintained based on Imports pricing and ta
ta.en for costing purposes Gwor.ed out using ecelH conditions"
Separate Document type and (umber range shall be maintained for
P2 are created manually with all the import indent terms and local purchases"
ban.ers details etc"0 and forwarded to the seller7indenting agent" $dvance payment shall be through Internal order GBased on the
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)owever before the imported material is received at our stores a Payment re6uestH from &I0 Internal order shall have reference to the P2
formal order is created through the system to account the material created"
on receipt" 1# cannot be addressed in Standard S$P System"
#opies of such manual order are passed to accounts for Duty Payment G#,DH and #ustoms duty payment shall be through the
information" $dvance payment re6uest0 &or availing the #ustoms duty@ This will be
$s and when import activities ta.e place0 generally an estimated same process as that of availing cenvat" #ustoms duty and #, D
funds re6uirement plan is advised to accounts" This plan ta.es into condition shall have vendors mentioned against to those conditions
account the 1#s being opened0 Ban. documents to be retired0 mentioned in P2" #ustoms department shall be created as vendor in
customs duty payments becoming due during the wee.7month" the system" #learances #harges G#)2 chargesH shall also mentioned in
Payment Procedure P2 as conditions" These conditions shall have provision to maintain
Depending on the payment terms agreed with the vendor li.e ,endors in P2"
advance 1# or DD payment procedure is initiated"
&or 2pening 1# the following documents are prepared" *a"s3
 #overing letter to ban.
 1# application
 Declaration
 Indemnity bond
 P2
 Proforma invoice or indent
Such documents duly signed by authorised signatories are
forwarded to the ban. for further action"
2nce 1# document or advice is received the same is forwarded by
fa to the buyer and indenting agency"
In case of &2B terms of shipment0 Insurance company is
approached and P2 details are faed to obtain a premium advice"
Based on this advise che6ue is re6uested from the accounts
department for forwarding to insurance company and further issue
of the policy" 2nce shipment is effected shipment details are
advised to insurance company by way of letter0 fa"
In case of #I& terms of purchase insurance is ta.en by the vendor
themselves and accordingly shipment ta.es place"
&ollow ups are made with the vendor about the despatch and
shipment details" Shipment advice from vendor is immediately
communicated to the clearing agent for follow up with
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airlines7steamer lines #argo arrival advice is obtained" Immediately

after shipment of the goods the vendor sends one complete set of
shipping documents by fa"
Details of documents are as follows
Invoice
Pac.ing list
#ertificate of origin
$"W"B or B1 Gair way bill7bill of ladingH
Insurance certificate"
#ertificate of analysis
Such above set of advance documents are immediately faed7sent
to the clearing agent for further customs clearance process"
(ecessary copies if re6uired and detailed write3up of the imported
item0 End use certificate is also forwarded" $ppropriate classification
of the item under import as well as previous import B7E is also send
to for easy clearance"
In case of 1# related7Documents through ban. shipments original
documents are forwarded through the ban. and as and when such
documents are received by the ban.0 the ban.ers sends us an
advice for acceptance of shipment documents"
In this process we also follow up with ban.ers about the documents
arrival so that original documents in case of sea shipment can be
collected earliest to avoid demurrage and speedy clearance"
In the case of $ir #onsignments0 the goods would have landed
much before the receipt of original documents with the ban. hence
the cargo arrival notice0 airway bill and invoice copies are forwarded
with the covering letter to the ban. for issue of necessary release
order"
2nce the cargo is arrived at the port7airport the will file necessary
bill of entry and other documents" $fter the assessment of the
goods by the customs authorities advises through fa the actual
customs duty and other duties with individual brea. up" The same
is chec.ed for correctness and if necessary ta.en up with #ustoms"
$dvice to accounts for obtaining DD for customs duty with brea. up
is forwarded along with necessary P2 copy"
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#ustoms duty payment by DD is sent to by courier or hand delivery"

(ecessary follow3up are made about the status of clearance and
dispatch of material to the factory"
pon receipt of the material at factory the material is in warded
against the system order" The submits his agency and other
charges bill along with B7E copies"
The echange control copy of the B7E is forwarded to the ban.ers
as proof of import along with a covering letter giving details of
import0 payment reference etc"0 and The same advice is copied to
accounts department with all relevant documents for reference and
action" The triplicate copy of the B7E is handed over to the ecise
department for availing modvat of #,D amount"
The #)$s G#learing )ouse $gentH Bill is passed for payment with a
cross reference to the 9%( raised for the imported items and sent
to accounts through the manual register maintained for this
purpose" The #ost of #learance and other charges are ta.en into
account for arriving at the landed cost of the %! and P! in the
costing calculations"
4"S$P Best Practises for I! - # to be implemented where ever suits

to Walvoil re6uirement
4.,.< +ut&ound $ervice +rders 7 9o& wor
As Is Business Process 3 $uggested Business Process3

(ot &ollowing Service Purchase 2rders are created for the eternal procurement of
Business Requirement3 services from a vendor" These services can be account assigned to a
#ost center or a networ. or a Pro+ect"
4"S$P Best Practises for I! - # to be implemented where ever suits Separate pricing conditions are maintained for services"
to Walvoil re6uirement &or P2 items to be supplied by subcontractors0 you can specify the
necessary input materials or components that are to be provided to the
subcontractor for assembly or processing in respect of each delivery
date stipulated"
Standard S$P Purchase re6uisition with a different number range shall
be used
Purchase re6uisition shall consist all the fields
%eminders can be maintained in Standard S$P P2"
This is addressed as 9oods receipt against to P2" Provision to capture
ecise entries shall be provided using #I( component"
1eft over 6uantities at +ob wor. vendor can be seen using Standard S$P
System" Provision to receive unprocessed materials is possible with 9%
Transactions
Subcontracting P2 will have B2!@ batch number can be specified to
each line item"
4.,.= Purcase +rder $ervices
As Is Business Process : $uggested Business Process3

(ot &ollowing The procurement of services shall involve the following steps:
Determination and recording of re6uirements
Business Requirement3 Determination of possible sources
4"S$P Best Practises for I! - # to be implemented where ever suits Bid invitation procedure
to Walvoil re6uirement Entry of data from 6uotations submitted by bidders
#omparison of 6uotations
$ward phase Gorder placementH
!onitoring of purchase orders
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Entry of services actually performed

$cceptance of services performed
,erification of invoices for services
Services shall be maintained as master data in the standard S$P

system" Service master can be maintained with short description and
1ong description"
Service Purchase re6uisition can be created for one line item or for
multiple line items"
Purchase re6uisitions can be sub+ected to release approval
Walvoil will create Service P2 for the service providing ,endor as -
when they will get the Service from that ,endor they will go for Service
acceptance i"e" Service Entry sheet w"r"t" Service P20 li.e this Service
P2 will get connected with Service Entry Sheet"
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When Service Entry Sheet is entered in the System w"r"t" Service PO
then it will be open for Invoice ,erification"
In Service P2 itself we can mention the Service ta.en - !aterial used
for Services in ; different 1ine Items against which we can show the
receipt of Service along with material in service sheet w"r"t" Service P2"
$ccounting Entries gets generated as per $ccount $ssignment given in
Service P2"
Invoice ,erification for Service P2 can be done after Service
acceptance"
*a"s3
4.,.C Purcase +rder Amendment
As Is Business Process 3 $uggested Business Process3

(ot &ollowing
Business Requirement3 Purchase 2rders can be amended before the 9oods %eceipt If the
purchase order is sub+ected to release strategy0 the changes made to
4"S$P Best Practises for I! - # to be implemented where ever suits the Purchase order may reset the release strategy depending on what
to Walvoil re6uirement type of changes have been made to the order" If the release strategy
has value limits0 the purchase order change in value or 6uantity0 if it
violates the eisting release already affected0 will reset the release
strategy and a new strategy will be assigned"
The Purchase 2rder amendments can be reported for changes in
different fields"
Purchase order amendments shall be traced@ #hanges will be recorded
in the system as log"
*a"s3
4.,.- 'as "urcases
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As Is Business Process : $uggested Business Process3

#urrently purchase through cash payment is resorted for various
small value and consumable items as well as office maintenance #ash purchases can be carried out in the Standard S$P System through
items" Such purchases are also resorted in case of any emergency invoice verification and posting to relevant accounts"
re6uirements of specific items" 4" 9% without reference to any order can be set to active"
The items of purchase are initiated by the departments through a ;"Indicator for cash purchase can be set at header level tets at the
formal material indent and sent to commercial department" $s and time of 9%
when such materials are received at the stores and necessary
8" $ Separate report shall be developed using $B$P"
9%(s made the relevant bills are submitted to accounts after due
approval by commercial head to s6uare up the impreset advance" ="P2 )istory would fulfil this re6uirement
Business Requirement *a"s3

4.8 *oods Recei"t
9%( at Stores / In general It is possible to capture through a separate field in 9% screen" It is

sing Ecel 9%( at Stores is doing now" suggested as a solution that Each and every 9% Transaction will have
9%( is prepared based on P2 for all purchasing scenario" feature to capture ecise invoice" Provision to capture ecise invoice
separately apart from 9% Transaction will be provided"
9%( for !isc items is prepared without P2" P2 is prepared
manually" To print 9% details li.e Document date0 1% number Gshould be
mentioned in header tetH shall be printed"
&or all the materials 9oods %eceipted (ote G9%(H #hec. 1ist 3
Which is to be filled before 9%( is Prepared #onsignment should accompany #2$ as per the re6uirement in ?!
module and Inventory module of !!"
Supplier (ame
9oods receipt in Standard system is based on with %eference to orders
!anufacturer name
basically GP20 Production order0 etc"0H or without reference to any
Item (ame document" 9% Program will only refer to the documents" )ence at time
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P2 (umber and Date of creating any orders e"g P2 it is possible to refer to the approved
Delivery #hallans (umber and Date vendor list and give error or warning message"
Duplicate for Transporters $vailable or not
!anufacturer (ame approved or (ot $uggested Business Process3
Transporters name
1% (umber and Date Inventor# Management
,ehicle number and This component deals with the following tas.s:
Item 1ot number !anagement of material stoc.s on a 6uantity and value basis

!anufacturing date Planning0 Entry0 and Documentation of all 9oods !ovements


Delivery #hallans ?ty #arrying out the Physical Inventory


%eceived ?ty Managing $tocs &# >uantit#

1ocation $ll transactions that bring about a change in stoc. are entered in real
#ategory G#ustomer name or Parent #ompany nameH time0 as are the stoc. updates resulting from these changes" Oou can
obtain an overview of the current stoc. situation of any given material
Division
at any time" This0 for eample0 applies to stoc.s that:
Ecisable 7 (on ecisable
$re located in the warehouse

9%( number
)ave already been ordered0 but have not yet been received

$uthorised Signatory
$re located in the warehouse0 but have already been reserved

for production or a customer

$re in 6uality inspection"

If a further subdivision by lots is re6uired for a material0 one batch per

Business Requirement lot is possible" These batches are then managed individually in the
stoc."
4"S$P Best Practises for I! - # to be implemented where ever suits $"ecial $tocs
to Walvoil re6uirement Inventory !anagement can manage various types of a companys own
special stoc.s and eternally owned special stoc.s separately from
standard stoc."
Managing $tocs B# alue
The stoc.s are managed not only on a 6uantity basis but also by value"
The system automatically updates the following data each time there is
a goods movement:
?uantity and value for Inventory !anagement

$ccount assignment for cost accounting


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 971 accounts for financial accounting via automatic account

assignment
The valuation area is the organi'ational level at which a materialNs
stoc. value is managed" The valuation area can be plant level or
company code level"
In Inventory !anagement0 wor. is basically done at plant and storage
location levels" When you enter a goods movement0 you only have to
enter the plant and the storage location of the goods" The system
derives the company code from the plant via the valuation area"
Planning? %ntr#? and 2ocumentation of all *oods Movements

9oods movements include both ReternalR movements Ggoods receipts
from eternal procurement0 goods issues for sales ordersH and
RinternalR movements Ggoods receipts from production0 withdrawals of
material for internal purposes0 stoc. transfers0 and transfer postingsH"
&or each goods movement a document is created which is used by the
system to update 6uantities and values and serves as proof of goods
movements"
Oou can print goods receipt7issue slips to facilitate physical movements
and monitor the individual stoc.s in the warehouse"
Integration of Inventor# Management in te ogistics
$#stem
:se
Inventory !anagement is part of the !aterials !anagement module
and is fully integrated in the entire logistics system:
!aterial is procured from eternal or internal sources on the basis of

the re6uirements determined by !aterial %e6uirements Planning" The
delivery is entered in Inventory !anagement as a goods receipt" The
material is stored Gand managed under Inventory !anagementH until it
is delivered to customers GSales - DistributionH0 or is used for internal
purposes Gfor eample0 for productionH"
During all transactions0 Inventory !anagement accesses both master
data Gsuch as material master dataH and transaction data Gsuch as
purchasing documentsH shared by all 1ogistics components"
Features
Integration in Materials Management
$s a component of !aterials !anagement0 Inventory !anagement is
directly lin.ed with !aterial %e6uirements Planning0 Purchasing0 and
Invoice ,erification"
Inventory !anagement provides information for !%P0 which ta.es into
account not only physical stoc.s but also planned movements
Gre6uirements0 receiptsH"
When a material is ordered from a vendor0 Inventory !anagement
posts the delivery as a goods receipt with reference to the purchase
order" The vendor invoice is processed later by Invoice ,erification"
)ere0 the 6uantities and values from the purchase order and the goods
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receipt document are chec.ed to ensure that they match those in the
invoice"
Integration in Production Planning
Inventory !anagement is closely lin.ed to the Production Planning
module:
 Inventory !anagement is responsible for staging of the
components re6uired for production orders
 The receipt of the finished products in the warehouse is posted
in Inventory !anagement"
Integration in $ales D 2istri&ution
$s soon as you enter a sales order0 you can initiate a dynamic
availability chec. of stoc.s on hand"
When the delivery is created0 the 6uantity to be delivered is mar.ed as
RScheduled for deliveryR" It is deducted from the total stoc. when the
goods issue is posted"
It is also possible to create sales order stoc.s"
Integration in >ualit# Management
In the case of a goods movement0 the system determines whether the
material is sub+ect to an inspection operation" If so0 a corresponding
activity is initiated for the movement in the ?uality !anagement
system"
Integration in Plant Maintenance
Inventory !anagement is lin.ed with Plant !aintenance as follows:
 It is possible to post goods movements with reference to e6uipment
B2!s"
 It is possible to withdraw parts for maintenance orders"

When serial number management is active0 the individual serial numbers are
entered in the case of every goods movement" Serial numbers are managed in
the Plant !aintenance system
Integration in te ogistics Information $#stem

With the Inventory #ontrolling component0 the 1ogistics Information
System offers a tool for collecting0 compressing0 and evaluating
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inventory management data"

*a"s3
4.8.- >ualit# 'ec
As Is Business Process 3 $uggested Business Process 3

(ot following
*oods Recei"t Wen >ualit# Management (>M) is Active
Business Requirement3 The S$P System differentiates between two different forms of 6uality
management:
4"S$P Best Practises for I! - # to be implemented where ever  ?uality !anagement in !aterial Procurement
suits to Walvoil re6uirement  ?uality !anagement in !aterial Inspection
>ualit# Management in Material Procurement
?uality management shall be active for procurement0 Walvoil can
define in the material master record G?uality !anagement screenH that
a certificate is re6uired for the material"
If a certificate is re6uired0 the system displays a bo during goods
receipt for a purchase where you can confirm the receipt of a
certificate"
>ualit# Management in Material Ins"ection
If an inspection at the time of goods receipt has b een defined for the
material0 the system automatically creates an inspection lot when the
goods receipt is posted" ?uality !anagement uses this inspection lot to
carry out the inspection"
Shall be considered0 "?! module based on the sample drawing
procedure"
*a"s3
4.8., *R1 due to Purcase of Assets

$ll the #apital Items0 &urniture0 E6uipments etc" With %eference to 4"9oods receipt shall be with reference of P2" Subse6uent functioning
#ape P2 9% is done0 Based on the ser #ertification !aterials are li.e 9% shall be with reference to P2
$ccepted" 9%( for 9oods %eceipt0 9%( &or 9oods $cceptance This ;"%eport to Distinguish 9% !aterial group wise shall be addressed
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$pplies for all Items"

Business Requirement3 Oou use this component to post the receipt of goods from an eternal
4"S$P Best Practises for I! - # to be implemented where ever vendor or from production" $ goods receipt leads to an increase in
suits to Walvoil re6uirement warehouse stoc."
&eatures
The %78 System distinguishes between the following types of goods
receipts:
9oods receipts with reference to a reservation
9oods receipts with reference to an order
2ther goods receipts
*a"s3
4.8.8 *R1 due to Production

(ot &ollowing 4"%eceiving material from Production order into finished goods stores
shall be ta.en care
Business Requirement3 $uggested &usiness "rocess3
Deliveries from production are the result of orders used as a basis for
4"S$P Best Practises for I! - # to be implemented where ever manufacturing the materials re6uired"
suits to Walvoil re6uirement The production order is not only the document on the basis of which a
material is manufactured@ it is also an important planning and trac.ing
tool for the following departments: !aterials Planning and Inventory
!anagement"
&eatures
%eference to an 2rder
When material resulting from a production order is delivered0 it is
important for the departments involved that the goods receipt entry in
the system reference this order0 for the following reasons:
9oods receiving can chec. whether the delivery actually corresponds to
what has been planned"
The system can propose data from the order during entry of the goods
receipt Gfor eample0 the material produced0 its 6uantity0 and so onH"
This simplifies both the data entry and chec.ing Gover deliveries and
under deliveriesH"
The 6uantity delivered and the delivery date is updated in the order"
The order number is usually listed on the slip accompanying the
delivered material" If it is not listed on the slip accompanying the
delivered material0 you can find the order pertaining to the delivery via
the material number"
*a"s3
4.8.4 *R1 due to Finised *oods ReEection
(ot following $uggested &usiness "rocess3 (PP Module)
Even without a returns delivery0 you can post returns from a customer
Business Requirement3 into bloc.ed stoc. returns"
4"S$P Best Practises for I! - # to be implemented where ever There is no need to create new material code for receiving such
suits to Walvoil re6uirement re+ected materials" The returned lot of material will be separately
maintained in the system as bloc.ed stoc." Walvoil once ta.ing a
decision on such materials relevant movement li.e destroy or scrap can
be carried out"
*a"s3
4.8.; *R1 for MR+ items

(ot following This is addressed in the sub process: Purchase order"
Should be decided by the relevant department7!anagement of Walvoil"
Business Requirement3 There are stoc. statement reports in S$P System" Indenter to run
4"S$P Best Practises for I! - # to be implemented where ever through those reports on certain intervals"
suits to Walvoil re6uirement Should be decided by the relevant department7!anagement of Walvoil"
Should be decided by the relevant department7!anagement of Walvoil"
S$P Standard report is available in the inventory management module0
sub module of materials management module"
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*oods Recei"t
Pur"ose
Oou use this component to post the receipt of goods from an eternal
vendor or from production" $ goods receipt leads to an increase in
warehouse stoc."
Features
The %78 System distinguishes between the following types of goods
receipts:
 9oods receipts with reference to a reservation
 9oods receipts with reference to an order
 2ther goods receipts
 9oods receiving can chec. whether the delivery actually
corresponds to the order"
 The system can propose data from the purchase order during
entry of the goods receipt Gfor eample0 the material ordered0
its 6uantity0 and so onH" This simplifies both data entry and
chec.ing Gover deliveries and under deliveriesH"
 The delivery is mar.ed in the purchase order history" This allows
the Purchasing department to monitor the purchase order
history and initiate reminder procedures in the event of a late
delivery"
 The vendor invoice is chec.ed against the ordered 6uantity and
the delivered 6uantity"
 The goods receipt is valuated on the basis of the purchase order
price or the invoice price"
*a"s3
4.8./ *R1 into Bloced $toc
As Is Business Process3 $uggested &usiness "rocess3

(ot following Bloc.ed Stoc.
#ompanyNs own stoc. that should not be used" It is not for
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Business Requirement3 unrestricted3use in Inventory !anagement"

4"S$P Best Practises for I! - # to be implemented where ever Posting a 9oods receipt into 9oods receipt bloc.ed stoc.
suits to Walvoil re6uirement When you post a 9oods receipt in goods receipt bloc.ed stoc. one must
first determine the 6uantity of stoc. to be posted to bloc.ed stoc. first"
Since the material is not to be added to the inventory yet0 do not enter
a storage location"
9aps:
4.8.< *R1 due to +ut&ound $ervice 7 9o& +rders(Purcas e +rders for $ervice)
As Is Business Process3 Requirement Anal#sis3

!aterial sent to vendor shall be ?# Passed if and only the material is
(ot following issued for subcontracting from Walvoil location"
Business Requirement $uggested &usiness "rocess3

Purchase orders shall be created for services and Service entry sheets
4"S$P Best Practises for I! - # to be implemented where ever suits shall be created for the 6uantity of Service received" Part service of the
to Walvoil re6uirement total 6uantity of service mentioned in the P2 can be received and
Invoice verification shall be done for the invoice raised by the service
vendor based on the service entry sheet created" If re6uired a release
strategy can be used for control of the service entry sheets"
*a"s3
4.8.= %6cise !ransactions
As Is Business Process 3 Requirement anal#sis3
(ot following $utomatic Entries to #envat #redit7Debit will happen during the
postings happening while doing the ecise transactions using Standard
Business Requirement3 S$P Transactions"
Party wise Debit note and #redit note and the transaction details li.e
Ecise invoice number0 Ecise invoice details shall be made available as
a report
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$ssessable value shall be maintained as master data for trading

materials"
$ddressed in SD !odule0 however this will be chec.ed and reviewed as
per the re6uirement"
The general flow is part4 posting will be done along with the 9%@ Part;
posting will be done after the 9% is and Part4 posting is finished"
Separate posting of ecise duty and education shall be ta.en care" In
Standard report separate columns for Ecise duty and education cess
shall also be provided"
This will be considered as purchase return scenario" Provision to
generate ecise invoice and send bac. material is also possible after
reversal of ecise duty"
$ddressed in sales and distribution module"
#ountry ,ersion India comes with functions for calculating0 posting0

remitting0 and reporting ecise duty0 and for handling incoming and
outgoing ecise invoices"
&or these purposes0 etra fields are available in the vendor master da ta
and material master data for information re6uired in India only"
Oou can enter incoming ecise invoices in the %78 System for goods
receipts arising from eternal procurement0 subcontracting0 and stoc.
transfer" Ecise cler.s can capture incoming ecise invoices using a
dedicated transaction0 or0 alternatively0 warehousemen can capture
them in the standard 9oods !ovemen t transaction0 !I920 when they
enter a goods receipt"
&inally0 you can prepare copies of all ecise registers for submission to
the ecise authorities
Definition
$ business document0 in India0 that your vendor sends you when it
delivers ecisable goods" It lists the goods and states how much ecise
duty applies on them" Oour use the ecise invoice to claim bac. the
ecise that you have paid from the ecise authorities"
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se
When you procure goods eternally0 an ecise invoice accompanies
each delivery that your vendors ma.e" Oou have to post these in the
system" This document is re6uired as proof of the ecise duty that you
have paid0 so that you can then offset the duty against the ecise duty
that you levy on outputs"
Oou can capture and post ecise invoices in one or two steps0
depending on your business re6uirements"
 In the two3step procedure0 the ecise cler. captures the
incoming ecise invoice" This means that the cler. enters the
data0 but the system does not yet create an entry in Part II of
the appropriate ecise register" $nother user Gthe ecise
supervisorH chec.s the ecise invoice and posts it" The system
then creates a Part II entry"
 In the one3step procedure0 the ecise cler. captures and posts
the incoming ecise invoice simultaneously" The system creates
the Part II entry automatically"
9enerally spea.ing0 you have one ecise invoice for each goods
receipt@ u can also do multiple 9% for a single ecise invoice"
In the %78 System0 the ecise invoice consists of header data and line
items" The header data comprises:
 $n internal number
 The ecise invoice number
 The date of the ecise invoice
 The details of the original vendor who generated the ecise
invoice0 if your vendor purchased the goods from another
vendor and was merely selling them on to you
$t line item level0 the ecise invoice lists the materials on the ecise
invoice0 showing the following information:
 #hapter ID
 ?uantity of materials
 Ecise duty base amount
 %ates of ecise duty
 $mount of duty paid
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%6cise Registers
:se
The ecise authorities re6uire you to maintain a number of registers
relating to ecise duty" They have to be printed out monthly and shown
to the authorities in the event of an audit" The % 78 System ma.es all
the entries for these registers automatically0 and you can prepare
copies of them as and when necessary" $lternatively0 you can download
the data for processing by non3S$P software"
Features
The S$P System handles the following ecise registers:
 %egister %9 4
 %egister %9 ;8$ and ;8#0 Parts I and II
 %egister %9 ;8D
 Personal 1edger $ccount GP1$H
 This is the ban. account from which you transfer any money
owing to the ecise a uthorities"
 %egister %T34;
This is a monthly report that summari'es the #E(,$T and P1$
information from the other registers"
Register R* -
2efinition
$ register of ecisable finished goods .ept by manufacturing plants"
The register shows goods movements from the factory to a store
specifically for ecisable finished goods"
Register R* ,8A7,8'
2efinition
$ record of receipts and issues of ecisable materials0 as .ept by
manufacturing plants" The register consists of two parts:
 Part I shows the 6uantities of the materials"
 Part II shows the amounts of ecise duty on the materials0 and
how much you have transferred to the #E(,$T accounts"
Previously0 manufacturers were re6uired to .eep two separate
registers0 %9 ;8$ and %9 ;8# for raw materials and capital goods
respectively" This is no longer the case0 but the distinction still remains
in the %78 System"
Register R* ,82
2efinition
$ record of receipts and issues of ecisable materials0 as .ept by
depots"
Serial (umbers
se
The system automatically numbers all entries in the following registers
with a serial number:
 %9 4
 %9 ;8$ and %9 ;8#0 Parts I and II
 %9 ;8D
 P1$
Each ecise group defines its own number range intervals
Download %egister Data

se
Oou use this report to download data from the registers listed below
onto your hard drive" The information is saved in flat file format and
can then be processed by non3S$P software to produce registers" This
solution is thus an alternative to that described under #reation of
Ecise %egisters"
se
Oou use this report to download data from the registers listed below
onto your hard drive" The information is saved in flat file format and
can then be processed by non3S$P software to produce registers" This
solution is thus an alternative to that described under #reation of
Ecise %egisters"
This report covers the following registers:
 %9 4
 %9 ;8 $ and %9 ;8 # GParts I and IIH
 P1$
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 Plant ecise details

 !onthly %eturn
se
The central ecise authorities have by vided notification no: ;FFF3G("TH
dated ;Kth $pril0 ;FFF0 prescribed the form of monthly return under
rule =5$E of the central Ecise %ules0 4L<<"
The S$P System offers you a report with which you can prepare the
necessary printouts" It covers both of the following:
Anne6ure
This is a list of all the invoices and bills of entry for which you have
made a Part II credit posting over the past month" &or each document0
it shows the information re6uired by the authorities"
A&stract
This is a summary of the ecise information from the anneure"
$u&contracting Witout Pa#ment of %6cise 2ut#
Pur"ose
When you issue materials to a subcontractor0 you need to .eep trac. of
what materials you have issued and when they have to be returned by"
The reason for this close monitoring has to do with Indias ta law"
nder ecise law =5$#0 when you send materials to a subcontractor for
processing0 you are not re6uired to pay any ecise duty0 even though
the materials have left your premises" )owever0 if the materials have
not been returned to you within a given length of time specified by the
law Gin ;FFF0 4KF daysH0 you will have to reverse any ecise credit that
you posted when you purchased the materials" In the case of ma terials
that you have manufactured in3house0 you will have to post credit
entries to the etent of the #E(,$T rate of the assessable value of the
materials"
$u&contracting :nder Full Pa#ment of 2ut#
Pur"ose
This procedure illustrates how you use the %78 System to send
materials to your subcontractors for processing using normal ecise
invoices"
'a"ital *oods
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:se
Businesses are allowed to set off ecise duty on purchases of capital
goods against ecise duty on outputs" )owever0 unli.e with raw
materials0 you can only set off half of the duty in the first year0 and the
rest in any year after that"
Features
When you post an ecise invoice that contains capital goods0 the
system posts half of the ecise duty to your #E(,$T account and post
the rest to a 971 account for #E(,$T on hold"
In following years0 you can use a report to identify the capital goods
with ecise duty on hold and transfer the duty to the #E(,$T account
!ransfer of '%1A! 'redit on 'a"ital *oods
:se
Oou use this report to display a list of the vendor ecise invoices where
the vendor has levied ecise duty but you have not posted it Gin fullH to
your #E(,$T account"
This is particularly useful in the case of capital goods in order to find
out how much credit remains from previous years"
'a"turing %6cise Invoices Witout Reference 2ocuments
:se
This procedure shows you how to capture an incoming ecise invoice if
you do not have any reference documents"
Oou can also follow this procedure if you do have a material document
that you want to use as a reference document0 but you want the
system to cross3chec. the ecise invoice data against other master
data or transaction data less stringently than it normally would
Oou commission a construction company build a new plant for you" The
company purchases all the materials it needs to build the plant0 deals
with all of the invoices and most of the other paperwor.0 with the
eception of the incoming ecise invoices0 which the law re6uires you
to deal with yourself" The subcontractor sends you all ecise invoices
accordingly and you capture them in the system without any reference
documents"
*a"s 3
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4.8.C 1ormal ReEections @andling

(ot following
Based on the sage Decision carried in ?! module materials
Business Requirement3 accepted7%e+ected will be posted to relevant stoc."
4"S$P Best Practises for I! - # to be implemented where ever $ny %e+ections shall be handled through S$P Transactions" If
suits to Walvoil re6uirement in case the re+ected materials are to be sent to bac. to
vendor by creating ecise invoice can also be carried out
using Standard S$P transactions"
*a"s3
4.8.- ine ReEections @andling

(ot following 1ine %e+ections can be handled through Standard S$P
Transaction" If in case additional 6uantity is re6uired to be
Business Requirement3 issued to production shall also be addressed through wor.
around solution"
*a"s3
4.4 *oods Issue
$uggested Business "rocess3
(ot &ollowing
#ompanies usually distinguish between various types of
goods issues0 each of which is handled in the %78 System as
Business Requirement3 follows:
4"S$P Best Practises for I! - # to be implemented where ever $toc $ceduled for 2eliver#
Withdrawal0 pic.ing0 and shipping of goods to customers are
carried out in the Sales - Distribution GSDH component and

are dealt with in detail in the document SD Shipping 9uide"
They are not dealt with in this section"
The Inventory !anagement system provides two movement
types for posting goods issues to customers if your company
does not use the SD module" These are the movement types
R#onsumption to sales orderR and R#onsumption to salesR"
Material Witdrawals for Production +rders
Inventory !anagement provides for the staging of
components for production" Oou enter withdrawals for
production as goods issues with reference to the production
orders for which the components are re6uired"
+ter !#"es of Internal $taging of Material

!aterials can be withdrawn not only for production but also
for other purposes Gfor eample0 for cost centre0 #2 order0
maintenance order0 or assetH"
Return 2eliveries to endors
%eturn deliveries to vendors are entered with the function
!aterial document X %eturn delivery or with the function
9oods receipt X &or purchase order"
$cra""ing7$am"ling
If a material is no longer usable0 it must be scrapped"
Scrapping of a material is entered in the %78 System as a
goods issue" The withdrawal of samples must also be entered
as a goods issue"
This section eplains the following goods issues:
 !aterial withdrawals for production orders
 2ther types of internal staging of material
 Scrapping7sampling
Process Flow
%ntering a *oods Issue wit7Witout Reference
2ocument
Before entering a goods issue0 you have to find out whether
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any reference document or data eists in the system"

When you enter a goods receipt0 you can reference:
 %eservations
 Production orders
 Bills of material
If a reference document Greservation7orderH eists0 it is
important to enter the goods issue with reference to this
document0 for the following reasons:
 The goods issuing department can chec. whether
what was re6uested is actually issued"
 During entry of goods issue0 the system can suggest
data from the reference document Gfor eample0
account assignment0 re6uested material0 6uantity0
etc"H" This simplifies both data entry and chec.ing
Gover deliveries and under deliveriesH when entering a
goods issue"
 $fter a withdrawal0 the 6uantity withdrawn is updated
in the reference document and the reserved 6uantity
is reduced accordingly" Thus0 Inventory !anagement
can monitor the withdrawal process and !aterials
Planning can update the stoc.7re6uirements list"
If you do not reference the corresponding reference

document during the goods issue0 the reservation remains
open and the re6uested 6uantity remains reserved0 although
the re6uest no longer really eists" #onse6uently0 available
stoc. in !aterials Planning no longer corresponds to the stoc.
actually availableY
@ow do #ou find te reference document

If you do not .now the number of the reference document0
you can find it in the system using the material number or
the account assignment"
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*a"s3
4.4.- *oods Issue to +utgoing $ervice79o& Wor +rders
As Is Business Process3 Requirement anal#sis3

(ot &ollowing S$P Standard report will give output to users to view materials left out
at subcontract vendor
4"S$P Best Practises for I! - # to be implemented where ever $uggested &usiness "rocess3
suits to Walvoil re6uirement 4" The material to be produced by the vendor can be ordered as a
subcontract item in a purchase re6uisition0 purchase order or
scheduling agreement" Each subcontract item has one or more sub3
items which contain the individual components the vendor needs to
perform the subcontract wor. or value3added service"
;" The components that are provided to the subcontractor are managed
as stoc. provided to vendor" #omponents in a subcontract order that
are consumed can only be debited from the stoc. of the material
provided to the particular vendor
*a"s 3
4.4., *oods Issue !o $cra"
W
As Is Business Process3 $uggested Business Process3
(ot &ollowing Walvoil scrap a material if cannot use it any more0 for eample
because:
Business requirement3
 the 6uality has been reduced due to long storage time
4" S$P Best Practises for I! - # to be implemented where ever
 the 6uality re+ected materials lying long time in stores
suits to Walvoil re6uirement"
In the %78 System0 you post a scrapping li.e a goods issue without
reference
Walvoil can scrap materials from the stoc. types below:
 unrestricted3use stoc.
 6uality inspection stoc.
 bloc.ed stoc.
$ scrapping has the following results in the system:
 the relevant stoc. is reduced
 the value of the scrapped material is posted from the stoc.
account to a scrap account
 the costs of the scrapped material are assigned to the cost
center specified"
 The value used is the value from the material master record at
the time of the posting"
9aps:
to production
4.4.8 *oods issue to "roduction

(ot following 9oods Issue to production done with or without reservation" Whenever
Business Requirement3 a production order is released0 the reservation is automatically created
4" S$P Best Practises for I! - # to be implemented where ever and goods can be issued against the reservation" Where there is no
suits to Walvoil re6uirement reservation0 issues shall be done against a production order"
*a"s3
4.4.4 *oods Issue to $ales +rder
As Is Business Process3 Requirement anal#sis3

(ot following 4" Through reference techni6ue method This feature is available in
standard S$P system"
Business Requirement3 $uggested &usiness "rocess3
4"S$P Best Practises for I! - # to be implemented where ever 9oods issues shall be based on the sales order0 deliveries will have
suits to Walvoil re6uirement reference to the sales order" 9oods issues will be based on the lot0 6ty0
Issuing plant and storage location
*a"s3
4.4.; *oods issue to qualit#

(ot &ollowing 9oods issues to 6uality will be through the automatic postings as per
Business Requirement3 the settings in master data and setting from 6uality module" The
4"S$P Best Practises for I! - # to be implemented where ever procedure at various stages in production process is addressed in ?!
suits to Walvoil re6uirement module"
*a"s 3
4.4./ *oods issues to 'ustomer7endor7tird "art#
(ot &ollowing $uggested &usiness "rocess3
In Standard S$P system any 9oods issues and 9oods receipts are
Business Requirement3 handled through !ovement type 9oods issues to customers are
4"S$P Best Practises for I! - # to be implemented where ever automatically handled through Post 9oods issue" 9oods returns to
suits to Walvoil re6uirement vendor are addressed through $ Separate transaction" This is same to
third party
*a"s3
4.; ogistics Invoice erification

As Is Business Process3 The Invoice verification involves the following processes :
It Will ta.e some time to function completly 4"Invoice
Invoice verification is done at Walvoil under the following scenarios ;"#redit !emo
Invoice ,erification against to P2 8"Subse6uent Debit
Invoice verification against to P2 GP2 manually done for !isc and <"Subse6uent #redit
capital itemsH Invoice option is used when the payment is to be made to the vendor"
Invoice verification with out P2" G%eference is ta.en through 9%( #redit memo is used for materials returned bac. to the vendor" During
for Invoice amount less than %s >FFF73H invoice verification the system shall display the materials returned bac.
Invoice verification for transporters payment G%eference is to the vendor for which deductions will be made"
agreementH Subse6uent debit shall be used for transactions where the 2riginal
Invoice verification for services G1abour wor.0 $!#0 Testing charges invoice has already been cleared and a subse6uent invoice has been
etc"0H raised by the vendor for materials already sent" Eample: %ate change
with retrospective effect"
Business Requirement Subse6uent #redit shall be used when any deduction7 penalty is to be
levied on the vendor"
4"S$P Best Practises for I! - # to be implemented where ever suits There are 8 options0 which can be used for Invoice ,erification"
to Walvoil re6uirement 4"9oods 7 Service Item
;"Delivery #osts
8"9oods7Service Item  Delivery costs
Based on the 9oods7Service and delivery vendors0 the option shall be
selected"
*a"s3
4.;.- %ntr# of endors Invoice Sub Process S

ocal endor
It ta.es some time to function completely" 1ocal vendor invoice shall be entered with reference to Purchase 2rder"
4"Invoice ,erification against to P2 GP2 9enerated through Ecel !ore than one purchase order can also be processed at one time for
software for %! and other materialsH one vendor" If re6uired the vendor can be changed from the original
vendor to whom the payment is to be done" If any Invoice verification
has been done for any 9% for a P20 the 6uantity for this 9% will not
nder this scenario 9%( and P2 reference is ta.en0 chec. for the
appear in the list" In case where the freight vendor is different0 only
Ecise or (on3ecise0 6ty received0 P2 number0 9%( (umber0
those entries related to the delivery costs will be chosen for the
$ccepted ?ty" $ll the entries are done in Ecel software as well as
payments to this vendor" It is also possible to raise credit memo
maintained in a register"
against the goods returned to the vendor" In case of Subse6uent
;"Invoice verification against to P2 GP2 manually done for !isc and debit7credit to be made to the vendor account0 Greasons can be change
capital itemsH of rates for previous supplies made0 etcH0 the entries are made using
the Invoice ,erification"
nder this scenario 9%( and P2 reference is ta.en0 chec. for the $d+ustments to other accounts li.e Insurance claims $ccount0 etc" can
Ecise or (on3ecise0 6ty received0 P2 number0 9%( (umber0 be entered with invoice verification"
$ccepted ?ty" $ll the entries are done in Ecel software as well as nplanned delivery costs are costs which are not .nown at the time of
maintained in a register" creation of purchase orders and these are charged in the invoice sent
8" Invoice verification with out P2" G%eference is ta.en through 9%( by the vendor can also be entered during invoice verification"
for Invoice amount less than %s >FFF73H In these ad+ustments wherever the invoice involves the #E(,$T0 based
on the Ta code maintained0 vendor and material ta details #E(,$T
nder this scenario 9%( and P2 reference is ta.en0 chec. for the clearing account is prompted and will be updated on saving" Simulation
Ecise or (on3ecise0 6ty received0 P2 number0 9%( (umber0 facility is available for chec.ing the accounting effect"
$ccepted ?ty" Im"ort endor
<"Invoice verification for transporters payment G%eference is Imports invoice verification is slightly different from the normal invoice
agreementH verification" In this case the #,D applicable is ta.en into %9;8
nder this scenario commercial department will send the vendor %egisters" In Import P2 the #,D and other conditions are maintained
invoice" #ommercial department will mention the 9$( number on as delivery condition types hence the Invoice verification for the #,D
bac. end of the invoice" Invoice entries are done using Ecel" part is to be done first before the 9% is done" Then %9 part4 entries are
done then 9% is done and then %9 part; entries are posted" Invoice
="Invoice verification for services G1abour wor.0 $!#0 Testing
verification is done for the Purchase 2rder" In this case (o 9% based
charges etc"0H
Invoice verification is possible GThis is specific to Imports onlyH"
Entries are done by referring to P2 GQ>FFFH else the entries are
The other functions as mentioned under 1ocal ,endor Invoice
passed without any reference"
verification are also applicable for Import ,endor"

4.;., Paring of endor Invoice Sub Process S

(ot following Invoice verification documents can be par.ed and later processed
,endor invoices can be par.ed for later processing" In case there is
Business Requirement3 some doubt about the invoice in hand0 the document can be par.ed
and later processed for posting" The accounting entries get generated
only when the document is posted"
*a"s 3
4.;.8 'ancelling endors Invoice Sub Process S

(ot following Invoice Documents in Invoice ,erification are either Invoices or #redit
!emos" If an invoice is cancelled0 the system generates a credit memo
Business Requirement3 and if a credit memo is cancelled the system generates an Invoice" The
system ta.es into account the 6uantity and amount in the credit memo
or invoice thus avoiding any differences between the original and the
cancelled documents"
The invoice can be cancelled only if
The document is invoice document
The document is not already cancelled
The document is not cancellation document of another document"
*a"s3
4.;.4 Material aluation

(ot following !aterial ,aluation can be used for the following purposes :
$d+usting material prices to mar.et price
Performing revaluations
Business Requirement3 Eecuting balance sheet valuation"
4"S$P Best Practises for I! - # to be implemented where ever !aterial valuation can be used for maintaining future prices0 release
suits to Walvoil re6uirement planned prices0 change material prices0 debit7 credit material"
 Split ,aluation
 Split valuation serves the purpose of valuating stoc. at different
values based on different sources of procurement"
If a material is sub+ect to split valuation0 every 6uantity Gsub3stoc.H of
this material must be assigned to a valuation Type"
If you want to valuate stoc.s of a material separately0 you must create
a material master record with the appropriate valuation category" This
record is called the valuation header record" Each material always has
only one such record for each company code or plant Gdepending on
whether the material is valuated at company code level or plant levelH"
2nce you have specified the valuation category0 you can create a
material master record for each 6uantity of the material you want to
valuate separately0 with the appropriate valuation type and a ccounting
data
*a"s3
4.;.; P#sical Inventor#
Requirement Anal#sis3
As Is Business Process3 With physical inventory process the ad+ustment of stoc.s shall be done
(ot following with the re6uired accounting effect
Business Requirement3 Physical inventory component allows the carrying out of physical
4"S$P Best Practises for I! - # to be implemented where ever inventory of the companys warehouse stoc. for balance sheet purpose"
suits to Walvoil re6uirement There are different types of physical inventory procedures li.e Periodic
Processing0 #ontinuous inventory0 #ycle counting" $ny of these
techni6ues can be used for this process"
Periodic Inventory:
In this process all the stoc.s in the company are physically counted on
the balance sheet .ey date" The entire warehouse must be bloc.ed for
materials movement
#ontinuous Inventory
#ontinuous inventory ensures that all the material is counted at least
once during the year" Stoc.s are counted throughout the year"
#ycle counting
#ycle counting is a method of physical inventory where inventory is
counted at regular intervals within a fiscal year"
Inventory Sampling
Inventory sampling method uses random selection of stoc.s and these
samples are physically counted on the balance sheet date" If only small
variances occur in the count and the physical inventory0 it is presumed
that the inventory balances and boo. stoc. are correct"
The counts can be entered in the system and the differences can be
reconciled between physical and boo. balance" The re6uired accounting
effect is provided through this reconciliation"

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Walvoil Fluid

Flui d Power India Pvt ltd

Steering Committee Steering Committee Steering Committee Steering Committee

!r" $vinash )umbrey !r" (arayana %a+an"(

Project Manager, Project Manager,

Status of To3Be Business

#3Possible with $B$P #an be implemented on myS$P through $B$P7< development

$tate %6cise Invoice3

$tate %6cise 2ut#3

,. %nter"rise $tructure on $AP R78 $#stem

'urrent 1ew 9ustification 7 Pur"ose of te

buyer or group of buyers responsible for certain

%!F4 %aw materials Storage location

8. Business Processes sco"e3

<"8"> 9%( in to Bloc.ed Stoc.

4. Business Process details3

!aterial7Services #overage - Different Types of Procurement

%aw materials (ot following any codes now

4.- Master 2ata Maintenance

As Is Business Process3 Requirement Anal#sis

As Is Business Process3 Requirement Anal#sis

change management function or while you are processing a material

4F" Search help control is an $ctive component" It was developed to

44" $ material may have various documents such as drawings and

choosing $dditional data 3Q Document data"

In Invoice ,erification for posting invoices

4.-., $ervice Master Maintenance

As Is Business Process3 Requirement Anal#sis

4.-.8 Maintenance of endor Master

As Is Business Process 3 Requirement Anal#sis

business partner" &or eample0 you order merchandise from a different

)ow the Data is organised

L" Pac.ing material supplier /imports

endor 1um&er Assignment

4.-.4 Purcase info records

As Is Business Process 3 Requirement Anal#sis

Business Requirement3 are two different prices"

for the material

4.-.; $ource list maintenance

As Is Business Process 3 Requirement Anal#sis

4.-./ Maintain endor %valuation 'riteria

As Is Business Process 3 Requirement Anal#sis

4"S$P Best Practises for I! - # to be implemented where ever

Elements of ,endor evaluation

whom you procure materials"

4.-.< Maintenance of 'onditions for Procuring Materials

<"4"5"4 Prices As Is Business Process 3 $uggested Business Process3

#ustoms Duty V J  GH U V O

4.-.= Pa#ment !erms

As Is Business Process Requirement Anal#sis

4., Procurement Process

4"S$P Best Practises for I! - # to be implemented where ever

4.,.- Purcase Requisition

As Is Business Process 3 Requirement Anal#sis

$uggested Business Process3

Purchase %e6uisitions are created under the following situations:

4.,., Request for >uotation

As Is Business Process 3 Requirement Anal#sis

As Is Business Process3 Requirement Anal#sis

procurement in the case of services

4.,.4 Purcase +rder  ocal (RM? MR+ Items)

no direct connection with the item procurement data" $dditional data

The transactions following on from a purchase order are documented in

4.8.4 R1 due to Finised oods ReEection